Defeasance is a process that sets aside and invests the remaining bond dollars in escrow to ensure that the principle and interest payments on the bonds are guaranteed and can be made when the bonds come due. By defeasing $6.2 Million in remaining bond funds, the school district projects taxpayers will save roughly $8.1 Million in taxes over 15 years. ($0.16/$1,000 to $0.48/$1,000 depending on the year)
The process sets up the District's ability to stop taxing Ephrata taxpayers for the portion of the defeased bonds. The earliest this can occur is December 2028, when the 2019 bond becomes callable.