Arkansas School District Unlocks Multiple Funding Streams to Transform Facilities for Growing Student Population
Like many school districts across the country, Pea Ridge School District (PRSD) in Arkansas faced a pressing challenge: how to upgrade aging infrastructure to accommodate a rapidly growing student body.
Located just over 10 miles from Walmart’s global headquarters, Pea Ridge is experiencing significant growth, and PRSD needed facilities that could support both current students and future expansion. Embracing their guiding principle of “An uncommon education for all,” the district recognized that modern, efficient facilities were essential to achieving this vision.
However, the district’s wish list of infrastructure improvements seemed out of reach without the necessary funding. But PRSD superintendent Keith Martin didn’t let that stop him. With persistence, innovative thinking, and key partnerships, the district unlocked different funding streams and created a unique solution to turn its vision into a reality.
The Superintendent’s Guide to School Revitalization is a free resource for school leaders who want to make transformative changes in their district. Get the guide here.
Four Key Strategies That Made It Possible
1. Warm, Safe, and Dry Funding: Securing State Support for Essential Projects
The first step in PRSD’s journey was securing state partnership funding through Arkansas’s Warm, Safe, and Dry program. Administered by the Division of Public School Academic Facilities & Transportation, this program funds essential infrastructure projects that ensure schools remain safe and operational. PRSD was approved for $4.6 million in system replacement upgrades, but to access this funding, the district needed to contribute 28% of the project costs. This was a critical hurdle—without raising their share of funding, the state grant would be forfeited.
2. Leveraging Expert Guidance to Maximize Funding Opportunities
To navigate the complexities of facility funding, PRSD sought the expertise of Dr. Charles Stein, a seasoned expert in public school infrastructure projects. As a former director of the Division of Public School Academic Facilities & Transportation, Dr. Stein helped guide PRSD through the intricate process of securing state funds and ensuring compliance with the program’s requirements. His experience was instrumental in identifying opportunities that allowed PRSD to maximize their access to state funding while ensuring they met all program stipulations.
3. Energy Savings Contracting (ESC): An Innovative Solution for Local Funding
With the state funding secured, PRSD still needed a solution for raising their share of the costs. That’s when Energy Systems Group (ESG) introduced an innovative financing mechanism—energy savings contracting (ESC). Through an ESC, the district could borrow the necessary funds using future energy savings as collateral. This approach allowed PRSD to access the capital they needed without tapping into bond proceeds, providing a net-zero cost solution for the district.
4. Securing Utility Rebates While the infrastructure upgrades were taking place, PRSD also sought to maximize their funding through utility rebates. ESG stepped in to manage the rebate process, ensuring that 100% of the rebates went directly to the district. ESG’s engineering team collaborated with district leaders, filled out all the necessary paperwork, and successfully secured a total of $50,079, which was actually $30,800 more than the district anticipated.
Dr. Charles Stein noted the significance of this approach, stating, “Thanks to ESG, the district was able to leverage energy savings contracting and obtain local financing through a second lien bond. This solution unlocked the entire program for Pea Ridge.” Methodically building a capital stack from many funding sources allowed the district to accomplish major systems replacement projects while maintaining the district’s working capital.
Impact: A New Era for PRSD’s Facilities
With funding now secured, PRSD embarked on a series of infrastructure upgrades, including the construction of a new high school campus to accommodate the growing student population. The improvements didn’t stop there. The district also modernized existing facilities, with Energy Systems Group leading the construction, and addressed essential needs such as roofing, HVAC systems, lighting, and water conservation.
Some key upgrades included:
- New roof systems at Pea Ridge Junior High and Pea Ridge Intermediate
- 44 new HVAC systems with four dedicated outdoor fresh air units at Pea Ridge Junior High
- 25 new HVAC systems with three dedicated outdoor fresh air units at Pea Ridge Intermediate
- Power factor correction at Pea Ridge Junior High
- Building automation controls upgrades
- LED lighting upgrades throughout the district (internal and external)
- Building envelope improvements district-wide
- Water conservation improvements across the district
These improvements have not only enhanced the learning environment but also delivered significant cost savings. In the first year alone, the district saved $174,000, that’s $10,000 more than originally projected.
Superintendent Keith Martin expressed his enthusiasm about the results "Working with Energy Systems Group was pivotal in helping us address the pressing infrastructure needs of our growing district. As Pea Ridge continues to expand, it’s essential that our facilities not only support our current students but also accommodate future growth. ESG’s innovative solutions gave us the resources we needed to modernize and prepare our schools for years to come, without placing a financial burden on the community.”
The project is about so much more than upgrading facilities — it’s an investment in the future of Pea Ridge community.
A Path Forward for Growing School Districts
Pea Ridge School District’s journey is a testament of what’s achievable when diverse funding streams are strategically combined to support a district’s long-term vision. Through a combination of state funding, expert guidance, and creative financing solutions, Pea Ridge School District successfully completed over $7.4 million in critical upgrades to its existing facilities.
And the best part? PRSD didn’t have to pay a dime out of pocket to have first-class facilities that foster learning in the growing district.
Learn more about building the capital stack for your district’s major infrastructure project in the Superintendent’s Guide to School Revitalization.
