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Waco ISD board approves pursuit of $5.5M SECO Lone Star energy loan
Summary
Trustees voted unanimously to proceed with a preliminary $5.5 million SECO Lone Star loan at about 2.5% interest to fund HVAC, lighting and other energy-efficiency upgrades across multiple Waco ISD campuses; presenters estimated a ~9.8-year payback and roughly $500,000 in annual savings in preliminary calculations.
The Waco Independent School District board voted unanimously to proceed with an application and pre‑approval process for a SECO Lone Star revolving loan intended to fund mechanical, electrical and plumbing upgrades and energy-efficiency measures across several district campuses. Trustee Keith Guillory moved to proceed and the motion was seconded and approved without dissent.
Presenters from Estes McClure/EMA and Alexander Villanueva described the program as a state-backed revolving loan with a maximum of $6 million and a current proposal size of about $5,500,000 at an interest rate of 2.5%. The loan would be repaid from energy savings over a term of up to 15 years; preliminary modeling submitted to the state estimated a payback of about 9.82 years. An EMA presenter summarized the package as including HVAC replacements and optimization, interior and exterior LED lighting retrofits, power factor correction work, window film installation, and commissioning.
“Basically, right now, you’re looking at a loan of $5,500,000 with a payback of 9.82 years,” the presenter said. Alexander Villanueva added that SECO uses third‑party engineers paid by the state to validate calculations and project plans. Finance staff noted the district historically funded similar work from fund balance but said available fund balance is limited now, making a loan attractive.
Trustees pressed for clarification on the third‑party review, which presenters described as SECO‑contracted engineers who validate the energy audit, savings projections and scope of work. Board members also asked whether projects listed for Indian Springs or other campuses might be removed if occupancy plans change; presenters said the package can be adjusted before final agreement so long as payback calculations still validate the loan.
Next steps described by staff: complete a detailed UAR (utility and analysis report) within 140 days of preliminary approval, submit it for SECO review, move to design and bidding, and, if approved by the state and the board, proceed to implementation. The board did not finalize any construction contracts at the meeting; it authorized staff to proceed with the SECO process.
