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Forsyth County finance proposes using unspent 2021 bond proceeds to pay debt service, stop arbitrage accrual
Summary
Finance Director Adam Fernbach recommended transferring remaining 2021 limited‑obligation bond proceeds to pay April 1 debt service to stop arbitrage rebate accrual, freeing general fund dollars to return to capital projects — a move advised by bond counsel and an arbitrage provider.
Adam Fernbach of Forsyth County Finance briefed commissioners on agenda item 4, recommending the county use remaining unspent proceeds from the 2021 limited‑obligation bonds, held at the North Carolina Capital Management Trust, to pay debt service due April 1. Fernbach said the transfer would stop the clock on arbitrage rebate accrual; freeing general fund dollars would allow an equivalent transfer back to the county facilities capital project ordinance to cover IRS arbitrage liability and provide funds for county projects.
Fernbach said the recommendation follows guidance from the county’s bond counsel, Parker Poe, and the arbitrage rebate calculation provider, Bingham. Commissioners asked clarifying questions about project restrictions; Fernbach said once bond proceeds are used to pay debt service and replaced by general fund dollars, those dollars would not carry the bond‑account restrictions and could be used for pressing facility needs, such as HVAC at the detention center.
No formal vote or motion was taken during this briefing; the item is on the March 19 meeting agenda for formal action.
