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Board accepts $1.18 million GESA contract deduction; funds earmarked for capital projects including elevator
Summary
Trustees approved Amendment No. 3 to a Guaranteed Energy Savings (GESA) contract that reduces the contract by $1,176,640, returning surplus bond proceeds to the district; administration said the funds must be spent on capital projects within bond rules and cited elevator replacement as a likely priority.
The Exeter Township School District board on June 17 approved Amendment No. 3 to its Guaranteed Energy Savings (GESA) contract, reducing the contract by $1,176,640 to account for allowances not expended and scopes removed from the project.
The amendment was presented in the Facilities and Transportation committee portion of the meeting. Board members and administrators described the figure as surplus funds resulting from contingencies that were not needed as projects progressed. “This $1,176,640 is a surplus that's coming back to the district,” a board member said, adding that the funds are restricted for capital projects and cannot be used for the general fund.
Business administrator Brian Fike explained timing and spending rules tied to bond proceeds: the district must spend certain bond funds within five years of the last borrowing, and some proceeds were prioritized earlier to avoid arbitrage issues. He reported approximately $3 million remained in the bond fund originating from the 2023 borrowing.
Administrators discussed candidate uses for the returned funds. “We know that we need to replace the elevator at the high school … it cannot meet ADA requirements anymore,” said Dr. Christy Haller, the superintendent, describing the elevator as beyond repair and a likely capital priority. The administration cited an estimated replacement cost of roughly $1.1–$1.2 million, roughly offsetting the returned surplus.
Trustees approved the amendment by voice vote after discussion about allowable uses and timing. The board directed administration to prioritize capital projects consistent with bond restrictions and to return with recommendations for how to allocate the surplus proceeds within the required timeframe.
