Board weighs payoff of Siemens energy loan, authorizes $750,000 revenue anticipation note

Trustees of RSU 04 spent an extended portion of their meeting reviewing the district’s energy performance contract history with Siemens and weighing whether to use year-end funds to pay off a remaining Siemens loan or instead spend those funds on deferred maintenance and year-end projects.

Abe Betrayna of Siemens told the board the three phases of work completed since 2013 have produced realized energy savings. “The first phase started in 02/2013, and to date, you've saved 1.8 and change million dollars,” Betrayna said. He reported phase 2 energy savings of roughly $35,000 and phase 3 savings of over $420,000; Siemens staff said the total guaranteed savings projection for the three phases was $2,260,000 and that realized savings had exceeded that guarantee by the date of the presentation.

Board discussion focused on a payoff quote for the final balance of the district’s oldest Siemens loan — $577,665 — and on whether retiring that debt now would free up funds to address deferred maintenance (including paving, fencing, field work, moving costs related to school consolidation, and van fleet needs). Finance staff reported a payoff quote that would save “just over $20,000” compared with making the remaining scheduled payments; the outstanding Siemens loan carries a roughly 3% interest rate, the district said. By contrast, the board’s discussed revenue anticipation note (RAN) carried a higher interest rate in staff remarks (about 5.85% at the time of discussion).

Board members weighed trade-offs. One member argued the district could invest the roughly $577,000 into capital repairs now rather than buying down the loan; another noted the short timeline to obligate year-end funds (the board cited a June 3 spending cutoff). After discussion the full board approved a motion to authorize issuance of a $750,000 revenue anticipation note to preserve cash-flow options. Separately, there was no formal motion to pay off the Siemens loan, and when the finance chair asked board members for a thumbs-up on immediate payoff, the chair said she observed no support to proceed at that time.

Finance staff and committee chairs said they would continue to refine cost estimates for year-end projects (moving, paving, parking repairs, furniture needs, van purchases, kitchen work, and field repairs) and return to the board with final recommendations; the board noted that if it did not obligate funds by the end of the deadline the money would roll into the undesignated fund balance and could be addressed in the next budget year.