Marble Falls ISD plans to retire some debt early using a program called “defeasance,” a move approved Monday by trustees at their regular meeting.
Defeasance is like paying off a loan early, so the debtor doesn’t pay the remaining interest, district Executive Director of Finance Bill Orr explained.
“It’s a regular program, one we do almost every year,” he told The Highlander.
Money to pay off the bonds will come from a regular fund set up for that purpose. It requires no increase in taxes, since the funding for the program is part of the regular school tax rate.
Orr figured the district would save about $2.75 million in interest this year by paying off the bonds early, he told school trustees.
