The Jaffrey-Rindge School Board has decided to pursue a $2.9 million loan for heating and energy conservation upgrades throughout the district.
The School Board met Monday to discuss various financing options to replace the boilers, change the lighting in the district to LED, and complete various weatherization upgrades. After talking about pursuing a bond, a loan, or a lease, the board unanimously decided to pursue a loan, as it offered the best return on investment.
“Another option would be to do nothing, but that would be a high cost option when one of the boilers fails,” said board chair Laurel McKenzie. “We would be stuck with having to buy a boiler off the shelf, which wouldn’t be a good fit.”
Should the district embark on a 15 year loan – the proposal would still have to be approved by voters in March – annual payments are estimated to be $191,862, which would be offset by a $525,000 rebate for a biomass boiler at the middle and high school, and other savings totaling more than $150,000 per year. The loan would carry a 2.5-percent interest rate.
With estimate savings applied, yearly costs to the district would be $41,809 in years two through five, with an up front cost of $150,579 which would include $40,000 to remove oil tanks and $40,000 to install the new propane tanks.
Preliminary estimations show that the district would save $139,406 in cumulative costs through 2037.
Should the district not get a rebate for the biomass system, the board expressed an interest in embarking on a 15 year lease agreement, which would include taking out $2.3 million to outfit all four schools with propane heaters. This option would still set the district up to use biomass heating at the middle and high school in the future.
Annual payments for the lease are estimated to be $175,968, which a year one cost of $152,936, and a cost of $50,162 in years two through five. Cumulative costs for this option through 2037 would save the district $24,637. The lease would carry a 2.99-percent interest rate.
The board also discussed a proposed summer project list for the 2017-18 school year.
A number of projects – including $35,000 to replace bells and clocks, $40,000 to replace lockers, and $12,000 for signage on Stratton Road for the middle and high school – were considered to be more of a want than a need and could e postponed depending on how the budget process shapes up.