City staff and representatives from Energy Systems Group presented the results of an investment-grade audit (IGA) on municipal facilities and parks, identifying energy-efficiency and renewable projects and a range of funding options to pay for them.

The audit covered roughly a quarter‑million square feet across nine buildings and three parks. Energy Systems Group estimated about $200,000 in annual energy and operational savings from a package of measures that include standardized LED lighting, HVAC replacements and rooftop and carport solar on selected facilities. The firm’s analysis also identified federal and utility incentives that could reduce upfront costs — including an estimated $270,000 in federal tax incentives and about $100,000 in utility incentives for a like‑for‑like rooftop solar replacement at the town center, and more than $1 million in incentives for a designed solar carport at the McCown Aquatic Center if the project is completed before federal phase‑down dates.

Why it matters: the audit offers near‑term projects required by grant deadlines and a longer program to reduce recurring utility costs. City leaders discussed tradeoffs among three delivery options: (1) capital funding through the city’s CIP with ownership retained by DeSoto; (2) a multi‑year CIP rollout that spaces expenditures over five years; and (3) an “infrastructure as a service” (IaaS) contracting model in which a third party funds, owns and maintains equipment for a recurring monthly fee (the firm modeled roughly $178,000 per month over a 20‑year contract for the full package). The IaaS option would not be recorded as traditional debt on the city’s balance sheet but would create a long‑term operating commitment.

Energy Systems Group noted the project as currently scoped sits near $15 million; staff and the firm showed three scenarios that differ by timing, financing and maintenance responsibility. The presenters emphasized time sensitivity for some components: the town center lighting included in a SECO/EECBG grant must be complete by June 2026, and certain Inflation Reduction Act (IRA) tax incentives phase down after projects are placed in service in December 2027.

Council discussion focused on scope, timing and tradeoffs between ownership and ongoing service fees. Council members asked whether previously planned substitutions (for example, lighting at existing locations) had already been completed, where specific projects would be prioritized from the city’s CIP and how the IaaS monthly fee compares with owning and operating equipment long term. Staff said the next step is to draft a formal recommendation reflecting council direction and return with that recommendation at the next meeting cycle.

The City did not take a final vote; staff reported they will bring a recommendation back to council next month for formal action.

Sources and evidence: City presentation by Community Services & External Affairs Director Esther Williams and Energy Systems Group project staff including Niffy Ovorian and Canyon (Energy Systems Group). The audit and incentive estimates were presented to the council during the Oct. 20 meeting and discussed in Q&A by council members and staff.

What’s next: staff will prepare a recommendation, including financing options, a prioritized project list tied to grant deadlines, and more detailed cost and savings projections for council consideration.