District explores $1.5M SECO loan for energy efficiency upgrades

During the Special Board Meeting on May 8, 2025, Texas officials discussed significant financial strategies aimed at enhancing energy efficiency and reducing costs for the district. A key focus was on exploring funding options for lighting upgrades and other utility improvements, which could lead to substantial savings over time.

The board reviewed the potential of utilizing the Lone Star Sequel grant, which offers a low interest rate of approximately 2.5%. This funding would support various projects, including lighting retrofits, water conservation measures, and upgrades to air handling units. Additionally, the board considered incentives from AEP, which could provide sliding rebates for the proposed upgrades.

Two loan options were presented: a $1.5 million SECO loan and a $3 million traditional loan, with the latter carrying a higher interest rate of about 3.5%. The board highlighted that the SECO loan could result in an estimated $2 million in savings for the district over a 15-year period, emphasizing the financial benefits of pursuing energy-efficient upgrades.

As discussions progressed, board members were encouraged to ask questions and seek clarification on the proposed funding strategies. The meeting underscored the district's commitment to improving infrastructure while also being mindful of budgetary constraints and long-term financial health. The outcomes of these discussions will play a crucial role in shaping the district's future investments in energy efficiency and sustainability.