PUBLIC SECTOR FINANCIAL AND ECONOMIC SUSTAINABILITY - A School Board Example

Written by Tim Cresswell, CEO, TCI

In examining the K-12 educational landscape, it becomes evident that three primary capabilities are fundamental to achieving financial and economic sustainability: effective teaching, robust programs, and well-maintained school facilities. However, these essential elements face significant threats, primarily stemming from the variability in government funding and annual grants allocated to school boards. This funding directly influences the resources available for classroom support and ultimately determines whether school boards find themselves in a financial surplus or deficit.

WHAT IS AT STAKE?

The challenge lies in managing the delicate balance between securing adequate annual grants and safeguarding the core capabilities that underpin the school system.

A FINANCIAL SOLUTION THAT RELEASES ADDITIONAL RESOURCES TO SCHOOL BOARDS FOR SUSTAINABILITY

Introducing SOFIAC

For many school boards in Ontario, the challenge of high energy costs can feel insurmountable, especially when capital investment is lacking. Enter SOFIAC, a Canadian-owned leader in energy efficiency financing and the largest Canadian Infrastructure Bank aggregator in the country.

SOFIAC Investment Fund

SOFIAC provides a unique solution: Investment Capital that allows repayment through energy savings. With this innovative model, if you don’t save, you don’t pay—eliminating the burden of conventional loan repayment structures and associated debt. NO savings, No payment. Client receives 15% of monthly savings and all Independent Electrical System Operator (IESO) and Enbridge incentives over the term of the project. This is not a loan repayment. School boards cannot borrow funds. There is no debt to the School board and no debt to Province.

Energy Savings Risk Management

One of the key advantages of partnering with SOFIAC is that SOFIAC assumes the energy savings’ risk. This allows school boards to focus on enhancing their facilities without the worry of the financial repercussions.

Flexible Investment Terms

SOFIAC offers investment terms ranging from 15 to 20 years, tailored to meet the specific needs of each client.

Getting Started with Certainty

Interested school boards can begin the process with an initial opportunity assessment conducted by SOFIAC at no cost to the . If the assessment reveals potential for savings, SOFIAC will cover the cost of a comprehensive feasibility study.

 Introducing NERVA Energy

NERVA Energy is an award-winning energy engineering firm and the exclusive commercial applicator of Aeroseal Duct Sealing technology in Ontario. With hundreds of education sector projects completed, NERVA has developed a proven five-step engineered process to rehabilitate ventilation systems, reduce duct leakage to under 3%, and calibrate system performance to significantly lower energy costs and greenhouse gas emissions.

The Facts:

• Ventilation air handling systems typically leak between 15% and 40%. NERVA’s portfolio of education projects shows an average leakage of 27%.

• Ventilation leakage can account for 8–12% of a building’s total annual energy expenses.

• Payback periods for NERVA’s turnkey ventilation rehabilitation projects typically range from 4 to 7 years.

• Implementing these measures leads to GHG emission reductions of 20–30%.

Josh Lewis

As the largest commercial ventilation sealer in Canada, NERVA Energy provides a five-step engineered process to significantly reduce ventilation air leakage to just 2%. "Our Ventilation Rehabilitation Program is proven, measurable, and scalable. It gives school boards a practical way to achieve real energy cost relief and meaningful decarbonization — all while improving the performance and lifespan of their mechanical systems." Josh Lewis, Chief Technical Engineer, NERVA Energy

A FINACIAL SOLUTION THAT RELEASES ADDTIONAL FINACIAL RESOURCES TO THE SCHOOL BOARD TO SUPPORT FINANCIAL AND ECONOMIC SUSTAINABILITY

Modeled example-Average sized School Board Building Portfolio

Assumptions:

- 75 Schools

- 4,500,000 SQFT of space

- $8,000,000 Annual energy spend

SOFIAC and NERVA Energy Ventilation Program:

- SOFIAC Investment: $7,000,000

- Estimated Annual Energy Savings: $900,000

- Estimated IESO & Enbridge Incentives: $700,000

- School board Retains 15% of Energy Savings Monthly

BACK PAGE ASSESSSMENT

WITH SOFIAC

 $3,300,000 POSITIVE CASHFLOW OVER 15 YEARS

WITHOUT SOFIAC

$17,500,000 IN LOST ENERGY SAVINGS OVER 15 YEARS

The Cost of Inaction, A STAGGERING $21,000,000 LOSS

If no action is taken, the school board could face a staggering $17,500,000 in lost energy costs, leading to a $20,800,000 difference in decision-making.

Contact Tim Cresswell at tcresswell@thomascoleinc.com or call 416-993-9167 to learn more about how to achieve financial and economic sustainability.