Proposition 4 - Prospect Hill & Siwanoy Geothermal Heating Systems

Overview

Geothermal heating/cooling is considered an environmentally sustainable practice that increases efficiency and can result in long-term operational cost savings. This proposition would authorize the installation of geothermal systems at Prospect Hill and Siwanoy.

Proposition 4 can only be approved if Proposition 1 is also approved. If Proposition 2 does not pass, the Geothermal system could not be installed at Siwanoy and the work would only occur at Prospect Hill. 

Projects in Proposition 4

  • Installation of underground geothermal well fields and systems at Prospect Hill
  • Installation of underground geothermal well fields and systems at Siwanoy

What to Know

  • Geothermal systems, also called ground source heat pumps, heat and cool buildings by exchanging heat with the ground, which maintains a fairly constant temperature year-round below the surface.
  • Geothermal systems would only be viable if the heating infrastructure and air conditioning for Prospect Hill and Siwanoy included in Propositions 1 & 2 are also approved. Accordingly, 
    Proposition 4 can only be approved if Proposition 1 also passes. If Proposition 2 does not pass, the Geothermal system could not be installed at Siwanoy and the work would only occur at Prospect Hill. 
  • These systems require higher up front costs, but may offer operational savings over the long-term
  • Federal tax credits are available that could offset some of the geothermal system cost. Those credits can only be pursued by the District once the work is completed. 

Key Challenges

  • Developing sustainable systems that provide long-term cost savings for the District

Total Cost

$4.5 million

Estimated Tax Impact

Projected tax impacts are based on which propositions are ultimately approved.

The estimated tax impacts for Proposition 4 are as follows:

Assessed Home Value $850,000 $1,189,396 $1,525,000
Estimated Tax Impact $46 $64 $82

 

The estimated tax impacts are inclusive of projected state building aid reimbursement, borrowing costs and project escalation. The maximum tax impact is expected to begin in 2029.

Possible Prospect Hill & Siwanoy Well Fields