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School board approves plan to defease 2024 COPs, aiming to remove debt from district books
Summary
Trustees authorized placing proceeds from the 2024 certificates of participation into an irrevocable escrow to repay investors through 2033, a move officials said will stop future district obligations tied to the loan with only modest transaction costs.
Trustees of the Amador County Unified School District on Thursday adopted a resolution directing defeasance of the district's 2024 certificates of participation, authorizing staff and counsel to place remaining COP proceeds into an irrevocable escrow and to amend the underlying trust and escrow documents to remove the debt from the district's books.
The action, approved unanimously, follows months of analysis by the district's financial advisers and bond counsel and comes as the district reconsiders previously planned construction tied to the COP proceeds. Superintendent Critchfield introduced the item and framed it as a financial necessity, saying continued annual payments of roughly $1.3 million would not be viable for the district's long-term budget.
Shin Green of E Shore Consulting told trustees the COPs were issued in January 2024 as tax-exempt lease-financing to…
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