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Hillsboro R‑III weighs $7.5–8.5 million plan to replace high‑school HVAC, seeks low‑cost financing
Summary
Schneider Electric presented a scope and preliminary cost range for replacing aging high‑school HVAC systems; the board discussed funding options including a DNR low‑interest loan and tax credits.
Hillsboro R‑III school officials presented a preliminary plan to replace the high school’s aging heating, ventilation and air‑conditioning systems and discussed funding pathways, with a project estimate of roughly $7.5 million to $8.5 million.
Hannah, program manager for Schneider Electric, told the board the high school contains multiple system types (heat pumps, energy‑recovery units, boilers and rooftop units) that are approaching the end of their service life. Schneider’s initial, internal estimate for comprehensive replacement and related building‑automation upgrades is $7.5 million to $8.5 million; the firm recommended moving to bid so local contractors can provide competitive, guaranteed maximum pricing.
Schneider and district staff identified several funding options to lower the district’s cash burden: a Department of Natural Resources (DNR) low‑interest energy loan (the program limits loans to $4 million), lease‑purchase agreements, potential Ameren rebates, and federal/state tax incentives including 179D energy tax deductions. Schneider noted the DNR loan interest rate is roughly 2.5 percent and that previous district work benefited from favorable financing and utility rebates.
District representatives said they will pursue multiple funding streams, present final pricing in August and seek board action on construction contracts in September if the board approves; construction is likely to occur in 2026 because of procurement and scheduling constraints. The board emphasized minimizing the fiscal impact to the district and discussed options to preserve interest earnings on short‑term investments while financing capital work.
No contract award was approved at the meeting; the board received the update and directed staff to continue pursuing funding, complete the bid process and return with final pricing and a recommended procurement path.
