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The Albert Lea school board on Monday approved its intent to issue about $4.07 million in general obligation facilities maintenance bonds to complete work next summer on mechanical systems at three schools in the district.

That includes the steam boiler system at Southwest Middle School, the hot water boiler system at Lakeview Elementary School and the pool heater and air handler replacement at Albert Lea High School.

Aaron Bushberger with Ehlers and Associates Inc., who the district works with for long-term maintenance projects, said the proposed payback on the bonds is 14 years and 11 months and noted the bonds could be callable — or essentially able to be refinanced — in 2033 if interest rates are lower than what they are originally issued at.

He said the deferred maintenance funds are coming from annual revenue related to long-term facility maintenance and there will be no new tax impact on taxpayers.

He noted once approved, the bonds will be paid with a little less than 30% of the long-term facilities maintenance funds of the district each year.

The board at its last meeting approved the district’s new 10-year long-term facilities maintenance plan, which included the projects.

Like with other current debt, Bushberger said the district will participate in state credit enhancement, in which the state secures the district’s payments in the event of a potential default of the district’s payment obligation. The enhancement would bring a Moody’s Investors Service Aa1 rating, the second highest available. The district’s most recent bond issues were rated as A1, and it will ask a review of that rating.

Bushberger said under the proposed timeline, Ehlers will solicit competitive bids on the bonds for the district, and on Feb. 20 the school board will vote on the sale of the bonds with a closing date March 14. Work will take place during the summer.

Estimated project costs are $3.956 million, and he noted they will continue to refine that number and bring it down if possible before the bond sale.

At Southwest, the project calls for demolishing the two inefficient large boilers and replacing them with four hydronic boilers and new pumps. There will also be some repiping needed.

At Lakeview Elementary, the project calls for removing the existing boilers and pumps and installing three new hydronic boilers and pumps, as well as repiping the boiler room to tie into the system.

Two of the units with the steam boiler system at Southwest Middle School are from 1957, and two of the units with the hot water boiler system at Lakeview Elementary School are from 1961. The pool dehumidification unit and pool boiler/heater at Albert Lea High School were installed in 2000.