Dixie School District

Project:
Solar Financing
Tax-Credit Program

Project Highlights

The Dixie School District was one of 18 Marin County public agencies that received clean and renewable energy bond credits (“CREBs”), which allowed public agencies to raise capital for solar projects on public buildings in exchange for the sale of tax credits (similar to tax-exempt bonds). Given this specialized and unique financing structure, NHA Advisors spent more than a year developing a financing plan, modeling energy savings, and negotiating with lending institutions to complete the financings.

Given the financial pressure on the District, the project could not impose any net cash flow demands on the District’s general fund. The financing plan took into consideration projected energy savings, State credits, and debt service on the CREBs in order to project the actual impact on the District’s general fund. Given the project costs, the District was unable to develop a financially feasible project. NHA Advisors worked with a local foundation to provide additional grants and loans that decreased the CREBs and allowed for a cash flow neutral financing plan. This unique three-prong financing approach allowed the District to meet the policy objectives of its board and parents as well as maintain a positive cash flow impact to the general fund.

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