The Opportunity
Lockwood R-1 School District is a rural district located in Southwest Missouri. The district consists of two buildings: a high school and a combined middle school & elementary school. Both buildings had heating and cooling units that were over 15 years old and were maintenance concerns. Additionally, the front wall paneling and windows were old and needed to be replaced. Some of the paneling had deteriorated over the years and many of the panels showed signs of water damage. Unfortunately, the district did not have room in their budget to address all of their facility needs. Financially, the district could pass a “no tax increase” bond issue and refinance debt, but it would not have been enough to cover the cost for all their facility needs.
The Technical Solution
The middle school / elementary school building was heated and cooled by heat pumps, which were connected to a water loop. In the winter, the loop was heated with a boiler, and in the summer, the loop was cooled with a cooling tower. Both the boiler and the cooling tower were in good shape, but most of the heat pumps were old and needed to be replaced. Navitas explored several different options to replace the heat pump system to determine the best life cycle cost for the district. Ultimately, the best option was to stay with the existing system, but to replace the old heat pumps and other failing equipment. The savings from this equipment replacement in this building as well as at the high school along with lighting improvements and building systems optimization, helped offset the cost of the project.
The Financial Solution
The district knew that the money from a bond issue would not be enough to cover all the needs within their school buildings. However, with the addition of energy and operational savings, the district was able to borrow additional money through a lease / purchase that was enough to address the most immediate needs. Money in the bond issue was financed through QZABs (Qualified Zone Academy Bonds), which carry a zero or very low interest rate.
