Jim Thorpe School District will undertake a energy-savings project at its three school buildings that is expected to pay for itself through reduced energy costs.

The school board voted 8-0 Tuesday to approve a contract with Honeywell to undertake projects at Jim Thorpe Area High School, L.B. Morris School, and Penn-Kidder Campus.The project will be funded through a municipal bond. But Honeywell has guaranteed that the district will make back the cost of the project through the money it will save on heating and electric costs."It's an energy-saving project. What we are doing is capital improvements for the district, and the cost of them are going to be recouped by the savings. And they're needed improvements," Honeywell's Patrick Salmon said.Board member John Ciavarella said that Honeywell has guaranteed that the savings from the project will cover its cost.The board agreed to a similar contract with Honeywell last June, but that also included the district's offices. That plan was scrapped, because the district now plans to build a new administrative office.The multiyear project will upgrade the boiler, chiller (air conditioning) and lighting at the three buildings. It will begin this year with the replacement of all existing lights in the three schools, "It's the quickest energy conservation measure to complete, and it also generates terrific savings," he said.The board also agreed to make a down payment of $829,200 toward the project, but they will have to vote at a future meeting to take out the $3 million bond.Board member Randall Smith asked why the district would not use its fund balance, which was approximately $15 million last year, according to the district's 2014-15 audit. The state encourages districts to keep a fund balance for situations like the ongoing Harrisburg budget crisis.Kovac said more than half of that money is committed to future health care and retirement costs, and that the district's financial advisers advocated for the bond."Looking at interest rates, they felt that going the route of the bond would be the most beneficial financially for the district," she said.The board also officially set its graduation ceremony for 6

p.m.June 3and Baccalaureate for 6

p.m.June 1at Christ Lutheran Church.