LEWISTON – Some creative financing will mean $1.7 million worth of renovations at city schools next spring.

City councilors adopted two bond packages Tuesday night aimed at funding renovations to Montello and McMahon elementary schools.

The bond deals use federal or state programs to leverage more money for the work, according to Finance Director Dick Metivier.

Under the first bond, the city will sell $735,000 in Qualified Zone Academy Bonds to pay for a new entrance, bus turnaround, plumbing and electrical work at Montello Elementary.

According to that federal program, the city does not pay any interest on the bonds. The city pays annual payments into an interest-earning fund for 15 years, then makes a single balloon payment on the bond.

“We are allowed to use the interest we earn to make payments,” Metivier said. “That means that, at the end of 15 years, we pay less.”

Councilors approved another $1 million bond under the state’s School Revolving Loan Renovation bond program. Under that program, the city will only have to pay 53 percent of that money back.

The school department plans to use the money to replace several temporary school buildings at McMahon Elementary with a 6,200-square-foot addition. That’s enough space for four classrooms.

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