Waco ISD approves pursuit of $5.5M SECO LoanSTAR package to upgrade HVAC, lighting and windows

WACO, Texas — The Waco Independent School Board voted unanimously to proceed with a SECO LoanSTAR loan application to fund districtwide mechanical, electrical and plumbing (MEP) improvements intended to reduce energy and water costs.

The board’s vote on a motion to “approve to proceed with the SECO Lone Star program to improve the mechanical, electrical, and plumbing systems across multiple campuses” followed a presentation from district consultants and engineers outlining the program, timetable and projected savings.

Board President Stephanie Cordeweg called for the motion; Trustee Keith Guillory moved to advance the application and Trustee Jeremy Davis seconded. The motion passed with all trustees voting in favor.

District and consultant presenters said SECO granted preliminary acceptance of the district’s application and that the proposal in the preliminary energy audit is for a $5,500,000 loan at an interest rate of 2.5 percent. Consultants said the payback period in the preliminary report is about 9.82 years and that the state structures loans so districts should show net positive cash flow from energy savings during the repayment period. A consultant summarized the program’s intent plainly: “They do not want it to be a burden to you.”

The measures included in the preliminary scope are: replacement or optimization of HVAC systems (including chillers and rooftop units), interior and exterior LED lighting retrofits, window film installation for thermal control and security, power factor correction, and commissioning/optimization of building controls. Consultants identified a set of campuses targeted for work in the preliminary package, including Dean Hyland, Cedar Ridge, Parkdale, Cesar Chavez, the administration building and University High School among others.

Under SECO’s process, the district must complete a more detailed Uniform Audit Report (UAR) within 140 days of preliminary acceptance and undergo a SECO-funded third‑party technical and financial review. Consultants estimated a review window of about four months and an implementation timeline that could extend through multiple summers, with a conservative calendar projecting project closeout and loan finalization around October 2027.

Trustees asked how savings were calculated and whether the work would change day‑to‑day controls. The district’s presenters described “HVAC optimization” as programming and control changes plus monitoring that will allow systems to use “free cooling,” better sequence equipment and reduce unnecessary run time. The district’s finance officer said the district has not previously used a loan program of this type and has historically funded similar work from fund balance.

Board members emphasized the financial rationale: several trustees noted the loan’s low interest rate and the goal of replacing older equipment while securing ongoing utility savings. One trustee summarized the district’s objective: to produce more efficient facilities that will cost less to operate once the loan is repaid.

Next steps identified in the presentation: complete the UAR within 140 days, submit to SECO for third‑party review, finalize the detailed scope and pricing, proceed to board approval for construction contracting when the state and district reviews are complete, and begin implementation with an 18‑month construction allowance in the schedule.

The board’s vote authorizes staff to continue through the SECO process; any final loan documents and construction contracts will return to the board for later approval.

Provenance: Presentation and board motion recorded during agenda item 9; motion and vote recorded later in the meeting.