Toledo School District Awarded Energy Grant and
Qualified School Construction Bonds!

Toledo was awarded a 2010 Energy Operational Cost Savings Improvement Grant for the sum of $240.000.  That project will upgrade lighting and HVAC controls in each of the school buildings (elementary, middle, high).  The energy savings from these upgrades will be between $22,000-$29,000 per year for the next 15 years.
 
We were also awarded the opportunity to sell some Qualified School Construction Bonds, which are non-voted dept bonds, in the amount of $550,000.  The securities company we are working with Seattle Northwest Securities, was able to secure a buyer for these bonds!  These bonds are at a very low interest rate of 2.25%.  The project we would address with this bond money dove tails to the Energy project.  Toledo High School was built in 1975, and its infrastructures are failing, though we have done our best to maintain them.  The QSCB money would replace the air handlers and other mechanical units needed to heat the building.
 
All together, we would be able to address $790,000 worth of projects for a minimal pay back.  The payments on the bonds would range between $39,000-$41,000 per year for 17 years.  If you subtract out the energy savings of $22,000-$29,000 per year, we will only be paying between $6,000-$14,000 for 17 years.  In other words, we will only cost us between $102,000-$238,000 for the $790,000 worth of projects!

In addition, it has been clarified through the auditors office that we would be able to use the lease revenue from the cell phone tower toward the payment. Presently, we receive $7,000 per year, which leaves even a smaller payment from general fund.
 
There will be a public hearing regarding the Qualified School Construction Bonds October 26th, at 6:00 p.m., Toledo School District Office.
 
At some point, we do need to go after a bond election to complete remodel THS, but these projects are all deemed "salvageable" and can be removed during demolition and put back in for the remodel.