RSU 40 board authorizes $7,028,925 energy conservation project, approves 20-year lease financing

The RSU 40/MSAD 40 Board of Directors voted to approve a resolution authorizing a $7,028,925 energy conservation project for school facilities and related lease financing.

Board member Noah Baughman moved the measure, reading the resolution into the record: “I move that the resolution entitled resolution to authorize a $7,028,925 energy conservation project for school facilities and related lease financing be approved in form presented to this meeting and that an attest copy of said resolution be included with the minutes of this meeting.” The motion was seconded and approved.

The board heard a multi-school facilities update from district staff describing work already underway or planned as part of the project. Staff said North Valley High School’s septic field and tanks are installed and effluent treatment tanks remain to be hooked up, Gallant Valley High School will receive groundwork and a building for biomass boilers with piping to follow next summer, Miller School will receive insulation, upgraded valves and control work to standardize heat and improve efficiency, and Union Elementary is progressing on window replacements and control work. The district also reported exterior lighting projects and a generator hookup at Prescott among planned work.

Board members asked for and received clarification on the financing plan. District staff said the board previously moved about $680,000 from a maintenance line into debt service in a prior budget; that amount will be used to meet the lease payment on the $7,028,925 financing. The project financing is structured as a 20-year lease. Staff characterized the funding move as a reallocation of previously appropriated local funds so the district could begin work sooner.

No specific dollar-by-dollar project budget or the contractor names were provided in the discussion. Staff said most projects are expected to be substantially complete by the start of the school year, although some items such as the Prescott generator would be completed later.

The resolution appears in the meeting record as the formal authorization for the district to proceed with the energy conservation project and related lease financing.