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Board authorizes escrow transfer to defease 2020 refunding bonds, expects modest levy savings
Summary
The board approved a resolution to transfer levy-stabilization dollars to an escrow to defease certain general-obligation refunding bonds dated Dec. 2, 2020; finance staff estimated net savings of about $40,000 after issuance costs.
Board members approved a resolution authorizing the transfer of funds to establish an escrow and defease certain general‑obligation refunding bonds dated Dec. 2, 2020.
Finance staff explained the strategy: use the previously collected levy stabilization amount plus accumulated interest from the district's debt service fund to prepay bonds due in 2028. The presenter said the district has used this defeasance approach since 2018 and that the current move is projected to generate approximately $40,000 in net savings after costs of issuance.
A board member moved approval and the motion carried by voice vote.
