This strategy is part of the Board's debt management plan to pay down debt early without increasing the tax rate. Payoff of debt early creates capacity in the District’s debt picture which positions the District well to respond to heavy expected student enrollment growth over the next 5-10 years. Early bond defeasance helps to limit the effect of future bond elections on our taxpayers.
Bond Payoff Saves an Estimate $1.2M
The Board of Trustees approved during Monday night's regular meeting the bond defeasance of the series 2012 bonds. The approximate principal is $7 million with a total debt reduction of around $8 million, saving our taxpayers an estimated $1.2 million in interest.