Board Gets Financing Options For Energy Project

The Crawford County R-1 School Board received three options if they decide to go forward on a $1.2 million energy and operational efficiency improvement project.

During the board’s March 20 meeting, they reviewed the list from Stifel, which could potentially serve as an underwriter for any municipal securities. 

Navitas submitted three projects that would be included in the larger scope.

Lighting upgrades would cost $415,083.

Weatherization would cost $150,508.

Building upgrades would be the most costly at $586,816.

Board members reviewed the proposal during a March 11 workshop.

In a letter from Director Becky Esrock to Superintendent Cole Byassee, Stifel said the district could fund the project with cash, bonds or a lease purchase. 

The option also exists to combine all three funding options, such as partial cash or partial lease.

Using cash would allow the the district to complete all or a selection of the three projects identified, which could be done at any time.

Bond proceeds would be contingent on voter approval and it could affect the timing of the projects.

A lease purchase would cost $160,000 per year for a 10-year term for full financing.

For lighting upgrades and weatherization, it would cost $85,000 per year for 10 years.

Esrock’s letter said the priority, reserve level, budgetary flexibility and energy savings would need to be factored into how the district proceeds.

“How does the District prioritize the above projects?” Esrock asked. “Do they all need to be completed today? If the District cannot afford to complete all projects today, what are the most impactful for the community? What economies of scale exist for completing the projects together?”

Esrock said the district’s reserves would allow them to remain in a “strong financial position” even after allocating some funds on hand to a “one-time” expenditure. 

Esrock said current and future budgetary flexibility would need to be considered.

“As the budget is developed for next year, is there capacity to incorporate a lease payment?” she asked.

Paying for the projects with cash or bond proceeds would provide more budgetary flexibility in the future, according to Esrock, as energy savings are realized “without corresponding debt payment.”

The district has not submitted a bond issue to voters since 2020. Voters that year approved a $2.3 million bond issue that gave the district funds to construct the STEM and agriculture building at the high school.