More than $20 million in capital improvements could soon spur greater energy efficiency and other repairs in the Freehold Regional High School District’s six schools.
The Board of Education passed two resolutions at its March 10 meeting that will enable district administrators to go out to bid to obtain a loan that will allow for leasepurchase agreements to fund the planned improvements.
The loans are expected to finance the district’s state-approved Energy Savings Improvement Plan (ESIP). The loans mean that voter approval is not required for these large projects, Business Administrator Sean Boyce said.
“With ESIP, the debt service payments [on the loan] need to happen within your operating budget, so the idea is to use the energy savings to make those debt service payments cost-neutral and you get your projects done,” Boyce said.
Officials hope to improve heating, air conditioning and ventilation (HVAC) systems, install new lighting and institute other beneficial measures in district schools, said George Duthie, the architect for the project.
“Why? It’s a very important reason. It’s the children,” he said. “It’s the people who use the buildings every day.”
The steps should reduce electricity consumption and maintenance expenses, Duthie said. He said the improvements could also cut down on greenhouse gases which harm the environment.
Freehold Regional may be able to take advantage of subsidies and incentives offered by the state, Boyce said. The projects being undertaken are “very much eligible” for at least one such energy conservation subsidy, he said.
“This is exactly what they have in mind when they want to encourage school districts and municipalities to do it,” he said.
District officials remained conservative in their approach to the improvements. They took into account interest rates that are much higher than current market values and considered their eligibility for subsidies to be about half of what is anticipated, Boyce said.
The second resolution allows officials to solicit an additional loan. A state grant is expected to help fund the infrastructure upgrades.
That capital would pay for roof replacements at Howell and Marlboro high schools and HVAC work at Freehold High School, Freehold Borough.
Mary Lyons, financial adviser to the district, said she expected to solicit bids this month.
Boyce said work on the upgrades could begin this summer.
Superintendent of Schools Charles Sampson said he is pleased to see the multiyear project taking shape.
“I think that seeking alternative ways to fund the infrastructure needs of the district is the absolute way to go,” Sampson said.
The installation of solar panels is not on the table at this time, Boyce said. He said the market for solar energy credits has dried up, which means the endeavor does not currently make sense for the district.
“Because of that, it has dropped solar to the side,” he said. “That is not to say we cannot continue to consider that if conditions change.”