Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance topic
No spam. Unsubscribe anytime.
Board approves financing resolution for energy project; chooses Washington State Treasurer loan
Summary
The board approved Resolution I-25, authorizing financing for the district's energy-savings performance contract with Ameresco and selecting a Washington State Treasurer local loan; vote passed 4-0.
The Battle Ground School District Board of Directors on Aug. 11 approved Resolution I-25, authorizing financing for the district's energy-savings performance contract with Ameresco and authorizing execution of related financing documents. The motion passed 4-0.
Finance staff presented three financing options the district considered: a Capital One loan offered through the vendor (17-year term, 5.19% interest), an intra-fund loan using district impact fees (deemed administratively unusual), and a state-supported local loan through the Washington State Treasurer's office. Staff recommended the state loan because it uses the state's credit rating and historically provides lower interest rates for municipalities.
Michelle, the district finance staff member who presented the item, said the state loan program operates through periodic sales and the next sale is in October; documents were due to the state by Aug. 22 for inclusion. Staff noted recent comparable sale rates in the 3.0'3.5% range, but said the final interest rate will be set by market conditions at sale.
District staff said the energy savings performance contract with Ameresco is expected to be self-funding over time because energy-cost savings will cover loan payments. The Capital One option had a longer 17-year schedule at 5.19%; the state loan option under consideration would be a 12-year term. The board asked whether the projected energy savings would cover payments; finance staff confirmed the savings and project mechanics are intended to fund the financing payments.
The board voted to approve the resolution authorizing acquisition of the financed personal property and to execute the financing contract and related documents. The motion passed 4 to 0.
Clarifying details: staff identified the Capital One offer (5.19% over 17 years) and said the preferred Washington State Treasurer local loan typically has had rates in the low 3 percent range in recent sales; the state sale for this financing would occur in October if documents are submitted by Aug. 22. The board did not approve a final interest rate at the Aug. 11 meeting; staff will finalize terms through the state sale process.
