The R-5 school board looks at the costs and methods for upgrades on school buildings.
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By Jim Ruse
Gallatin R-5 is again looking at its future. The board is viewing proposals from the Unicom Corporation of Overland Park, Kan. The proposals are costs and methods to replace the roof, classroom lighting, heating and cooling units at the elementary building. The agriculture and industrial technology building would be upgraded with lighting, heating and cooling units. The High School building would be upgraded with lighting and external doors.
The main focus is placed on heating and cooling in the elementary and agriculture-industrial technology building, plus a roof for the elementary. This is a building that was built in 1957. These issues are next on our district’s upgrade list of our five-year plan.
The project costs is estimated at $870,000. Finance cost will make the project about $1,130,000 total depending on interest costs when the decision is made. A time line for the board to make a decision is February.
The method of payment is set up by a Missouri law passed in 1997. (Chapter 8 Section 8.231) It allows schools to provide documented savings in energy by replacing old inefficient units or fixtures with new ones. The amount saved is then used as a lease purchase amount applied toward sold bonds. The District would make a lease payment of about $103,000-$113,000 per year toward the debt for ten years. Since money would come from the District’s fund balance it will bring that balance down. However, receiving interest and paying interest on the projects will help soften the drain to district during the debt period.
This has been a plan for a number of years, when finances became so complicated. Limits were placed on the transfer of funds from one to another and creating isolated money. The financial structure of our project allows the transfer of funds to be used on district needs. This project does not require any addition to the levy.
An element of unknown will be the utility increase. The current heating and cooling upgrade at the high school has been a pleasant surprise. The new heating units are more efficient and appear to be offsetting any rate increase and cooling costs. That will be a guessing game until more is known about the district’s use of cooling for all of its buildings.
The district and the board would like to know your thoughts on these topics. Please call the Superintendent’s office at 663-2171 or any board member.
In summary, this method allows the district to utilize its own resources and take care of several major needs at this time. Gallatin is not the first to look at facility upgrades by utilizing guaranteed energy savings contracts. School districts from Neosho, Cameron, Concordia, Newton, Haven and Cherryvale have all used this method to successfully accomplish similar projects.