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Board authorizes $2 million defeasance to reduce tax ask on 2023 bond
Summary
The Colman-Egan board authorized placing $2,000,000 into an escrow to defease part of the 2023 general obligation bond, a move administrators said would lower future tax collections by about $92,000 annually and reduce projected total debt-service over 20 years.
Board members voted to authorize a defeasance on the district's 2023 general obligation bond, approving the movement of $2,000,000 into an escrow account to lower future tax levies associated with that debt. Scott explained the tactic and said the deposit would not immediately pay off an even number of years but would reduce the levy by about $92,000 per year going forward by generating escrow revenue.
Scott gave illustrative figures: without defeasance, the district would have collected about $6.3 million and paid back roughly $10 million over 20 years; with the defeasance deposit, he said the total obligation could drop to about $6.4–6.5 million. The board also approved retaining D.A. Davidson to administer the defeasance, accepting a $2,500 fee to set up and manage the escrow account.
