Otsego invests in propane tank

TONTOGANY – Otsego Local Schools is going to spend money to save money on propane.

At the school board meeting on July 27, Treasurer Steve Carroll asked for approval to enter into a contract with ADR to purchase a new propane tank.

Carroll said the new, bigger tank is $28,000 and the district will sell an existing diesel tank for $10,000.

The total investment will be $18,500, he said.

With more storage space, Carroll will be able to save 20 cents per gallon on future propane purchases.

With a purchase of 80,000 gallons, the savings will be $16,000 next year, he said.

“So, our return on this investment is in the 13-14-month range,” Carroll said.

“It’s a great investment,” he said. “A little bit of money up front … but in the future years, it’s definitely worth it.”

The board approved the purchase.

The district started using propane buses in 2014. By 2018, all the buses were running on propane.

Also at the meeting, the board:

• Learned from Carroll that the financial forecast for next year shows an $800,000 deficit.

Carroll also reported that the district is looking into purchasing a battery to store energy created in the solar field. This will allow them to use the power on a cloudy day rather than purchase it.

• Approved a $10 fee for student drug testing for the 2022-23 school year.

• Approved Corinne Rizziello as a 2022 graduate. She completed all requirements this summer but wants to walk with her class next spring.

• Scheduled its next meeting for Aug. 17 at 6 p.m.