BARNEGAT, NJ - The Barnegat Board of Education held a public hearing and unanimously adopted an ordinance on Tuesday to refund existing school bonds from 2012. The refund allows the district to secure a lower interest rate for the balance of the remaining principal.
“The original bonds were issued to finance an Energy Savings Project (ESIP) conducted in 2012,” explained Stephen J. Brennan, Barnegat Township Schools Business Administrator. “The full amount was $4,135,000 with an interest rate of 2.94 percent that expired in 2027.”
According to Brennan, the remaining principal is $2,750,000 and will be financed at an interest rate of 1.10 percent. This represents an estimated savings to the district of $111,000.
The ESIP Bonds were paid for by the energy savings of the equipment installed as part of the district’s Energy Savings Project. The Board of Public Utilities (BPU) oversees the projects to confirm that the equipment (LED Lighting, Solar, more efficient HVAC equipment, etc.) purchased through the bonds provides enough savings in the district's energy bill to cover the cost of the bond payments.
The Barnegat Board of Education approved other energy cost savings measures at its meeting last month. The district is in the process of developing and replacing various systems, such as failing HVAC units, as well as increase the efficiency of other climate-control systems.
The long term estimated savings of the changes are $7,728, 933 over a twenty-year span. The total cost of the projected upgrades is $5,677,00.
Spiezle Architectural Group, Incorporated has already conducted a comprehensive analysis of the district’s facilities. They have proposed a project that includes interior and exterior lighting upgrades, lighting controls, HVAC upgrades, boiler replacements, chiller replacements, electric-to gas-hot-water conversion, domestic water-heater replacements, vending machine controls, and other cost- and energy-saving measures, including a solar project that involves the installation of carports.
“This is an absolute win for Barnegat students and taxpayers,” said Board of Education President Michael Hickey. “New Jersey’s ESIP will allow us to make improvements that are needed at no cost to the residents of Barnegat and help us continue the district’s initiative to reduce our carbon footprint.”
The district plans to immediately begin the solar and LED lighting changes by using discounts available through the cooperative purchasing agreements and the state contract. Mechanical and control projects will go to bid in November, with contract awards anticipated in December.
Anyone interested in the Barnegat School District’s full Energy Savings Improvement Plan as approved by the Board of Public Utilities can view it here: https://www.barnegatschools.com/Page/9829