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Board authorizes $2 million defeasance of 2023 bond to lower future tax ask
Summary
The board approved a resolution to place $2,000,000 into escrow to defease the 2023 general obligation bond; administrators said the move would reduce the district's annual tax ask on that bond by about $92,000.
Administrators recommended a defeasance strategy for the district's 2023 general obligation bond and asked the board to authorize placing $2,000,000 into the escrow account. The administrator explained, "We currently have just north of $2,000,000 in that account," and said placing $2,000,000 into escrow would reduce what the district would collect in taxes for that bond by approximately $92,000 annually.
He walked the board through long-term payoff scenarios and said that, compared with doing nothing, the defeasance would reduce total payments over the life of the bond (his example contrasted roughly $10,000,000 without defeasance versus about $6.4–6.5 million with the proposed strategy). The board voted to approve the resolution; the motion carried by voice vote.
