TROY - The Troy Area School Board has approved a resolution authorizing the financing of a $5.5 million bond issue, primarily to fund its energy savings project.

The bond issue includes $1 million set aside to pay for either the repair of the district's administration building, which is in need of renovation, or the construction of a new building at an as-yet undetermined site, or another capital project.

The board is still weighing all its options regarding the administration building issue, and no decision has been made, according to district business administrator Traci Gilliland.

The interest rate for the financing is 1.15 percent, and will end at 3.4 percent, in 2032. The district's investment banker, Les Bear, said the 20-year savings over the life of the bond issue is $379,000.

Bear said the numbers were "really strong," in regard to the interest rates.

He pointed out that the district's A-plus bond rating allowed it to get good interest rates.

Bear credited the financial position of the district and its strong fund balance as reasons for the good bond rating.

The energy savings project with the McClure Co affects every building in the district "in one way or another," except the administration building, according to district superintendent W. Charles Young.

At some buildings, the energy savings measures are more extensive. The most extensive work will be done at W.R. Croman Primary School.

The school will get a new heating system, replacement of piping, and new boilers.

The energy savings project has a guaranteed full payback in energy savings over 20 years.

Eric Hrin can be reached at (570) 297-5251; email: reviewtroy@thedailyreview.com.