As part of an energy-savings project for Ontario Local Schools, the Ontario Board of Education approved a resolution authorizing the issuance of a school energy conservation note during Tuesday evening’s meeting.
Last summer, Ontario Schools formed a partnership with Energy Optimizers to conduct an energy-savings project that is expected to boost the annual electrical, fuel, and maintenance savings by $67,578. In order for the final phase of the project to be complete, it required board authorization regarding the energy conservation resolution, which authorizes that the energy conservation costs do not exceed $589,230.
Treasurer Randy Harvey explained that the school would be able to save money for the project through the Energy Conservation Program House Bill 264, which would allow the school to spread costs over a 15-year period.
“Instead of going to a bank where rates are anywhere between 3 ½ – 4 percent for that 15-year period, we’re able to use a state borrowing program to get a 1 ¼ percent interest rate,” he said.
The language within the resolution, however, seems to suggest that a tax levy will be issued among taxpayers within the city upon its approval: “That during the period while the note runs there shall be levied upon all of the taxable property in the district in addition to all other taxes, a direct tax annually…”
Harvey explained that the language used is “a standard pledge of collateral.” He said that a tax levy would be held in the case of the school defaulting on its payments; however, he emphasized, “In the 30 years that House Bill 264 has been around, it’s never gone to a tax levy to any entity in the state of Ohio. There’s been at least 5,000-10,000 borrowings during that period.”
Harvey further assured that it’s highly unlikely to default because, “The energy savings are guaranteed. Second, this borrowing payback is about $43,000 on average, and I’ve got a $16 million general fund that backs it up…We also have a $300,000 P.I. fund every year that can be used to pay off this debt.”
For the taxpayer of a $175,000 home, the average tax rate increase would be between 70-75 cents a month (if the school were to default), Harvey added.
In addition to approving the resolution, the board recognized retirees: high school math teacher Scott Bloom for his 14 years of service, middle school intervention specialist Sibby Neff for her 17 years of service, and technology director Michelle Vance for her 15 years of service.
The board also approved High School Principal Chris Smith for a four-year contract and Margot Cardwell, special education supervisor, for a three-year contract, both effective Aug. 1. Brendan Cain, director of technology, was also approved for a three-year contract, effective July 1.
“In the 30 years that House Bill 264 has been around, it’s never gone to a tax levy to any entity in the state of Ohio,” said Randy Harvey, responding to concerns about a potential levy.
