Presentation in April to focus on solar project for schools

Dear Greene County Community School District Families and Community Members,

For the past several months, our school district and school board has been on a learning mission after discovering the amount of money that was being spent on electrical bills. This has been a concern for our school district for the past several years and we are looking for a solution that will allow our schools to be energy efficient, significantly reduce our expenses, and allow our taxpayers to feel positively about how the district is spending their resources. During the 2023 calendar year, Greene County Schools paid, on average, $36,500 per month for electrical costs. All totaled up, that reached nearly $440,000 for the year. These numbers have been on the rise every year, with a 10-15% average yearly increase.

Our school district has consulted with Ken Hagen from OPN, Chris Deal from Modus Engineering, and Nick Terhall from Optimized Systems to determine what is causing such high consumption rates. There have been several corrections implemented over the last 6-8 months, and while we have seen some impact, the concern still remains that our district is spending far too much money on electricity. We have completed the following:

— Reprogramming our HVAC systems in all three buildings,

— Analysis of internal control systems at each building to ensure all systems work properly,

— Utilized energy setback options when buildings are not in use by staff and students,

— Encourage students and staff to shut the lights off as often as possible,

— LED fixtures operating on motion sensors in nearly every classroom and hallway,

— Consulted with Alliant Energy for options that would impact our billing and budget.

These steps have helped, but we are looking to achieve even greater results. During the month of February, the board was presented with the idea of using solar power to support our buildings and reduce the significant costs of our electrical bills. An analysis was completed by two Iowa based solar companies and the results were remarkable. The information graphic provided along with this letter was averaged and shared using data from both companies.

There will be costs associated with completing such a large scale project. Before getting into the details of how this will be funded by the school district, I want to assure our taxpayers and community members that your taxes will not increase from this project. Our school district and school board remains committed to reducing the overall tax rate.

During the March board meeting, a representative from Piper Sandler, a financial consultant, presented how this project could be financed through the use of PPEL (Physical Plant and Equipment Levy) Notes being issued to the school district. This type of funding requires a board vote, followed by a 20 day waiting period. Payments will come directly from our current PPEL and Sales Tax funds. Piper Sandler shared with our school board that both of these funds are projecting to be in excellent fiscal shape for the long term, despite the need to borrow the estimated $4.5 million for this project.

After the April meeting, Piper Sandler would make local, state, and national banks aware of our project and begin soliciting bids to finance the project. At either the May or June board meeting, the school board would review those bids and, with the guidance of Piper Sandler, select the best fit for our schools. Funds would be in the district’s possession beginning July 1st, 2024, or the beginning of Fiscal Year 2025, and the project would officially be underway.

While the district is a tax exempt entity, other options are available through federal programs within the Inflation Reduction Act known as a Subsidy Payment. This would allow the district to receive anywhere from 6% to 25% as a subsidy for completing the solar project. The percentage will change depending on which conditions are met within the program. Further, there is the Energy Efficiency and Block Conservation Grant that could net the district an additional $600,000, should the grant be awarded to the fullest amount.

The school district would seek the services of OPN and Modus Engineering to determine the best location for a solar array at each school and help determine how to ensure we can receive the best price and quality from the company that would build and install the system. A realistic timeline for completion of this solar project would be late 2024 or early 2025, depending on availability, contract bidding and awarding, and weather conditions.

A benefit that comes along with a solar project of this size would be the learning opportunities for our students and community. Students would have the chance for a hands-on learning experience to allow them to use engineering, technology, and mathematical skills for the planning, installation, and maintenance of the solar panels. This would provide our students another avenue for energy literacy by providing students a better understanding of energy sources, consumption patterns, and energy efficiency measures. Students would be able to explore topics such as energy conservation and the role of renewable energy in meeting future energy needs. Lastly, this will help foster community engagement and collaboration by involving students, teachers, parents, and community members in the learning process with the solar project.

On Wednesday, April 3rd, at 6:00pm, an informational session will be held at the Greene County Middle School Auditorium. During this session, further details will be shared about the solar project, the solution that it will provide to our school district, project financing, positive impacts on the school district and taxpayers, and a projected timeline. We hope you will be able to attend. For those who are unable to attend, information will be shared via social media immediately following the presentation. As always, we appreciate your partnership with our schools.

Regards,

Brett Abbotts, Superintendent Greene County CSD