Lehighton Area School District will vote on two resolutions at its Oct. 27 meeting that could pin down financing for renovations to its middle and high schools.

The first resolution would allow Public Financial Management to issue an $8.49 million federal Qualified Zone Academy Bond, which was recently awarded to the district.A second resolution would allow PFM to approve a $10 million bank qualified financing loan from TD Bank at a 10-year fixed rate of 2.16 percent, and an additional $5 million bond that will likely have a longer term.Four banks submitted responses to PFM's request for proposals.Mauch Chunk Trust Company had the next best proposal at a 2.5 percent interest rate for a 10-year fixed rate loan.The approximately $23 million, according to the district's finance committee, should be enough to cover improvements, including major mechanical work, to the two buildings."We have to project out ahead," said Lehighton Superintendent Jonathan Cleaver."We have to project an amount that the projects will cost. It may be less or it may be more, but this part of the process requires us to make projections."Lehighton is still awaiting word on Alternative and Clean Energy grant applications it submitted to the state for both buildings $970,000 at the high school and $1.07 million at the middle school.If awarded the funds, Lehighton will designate them for energy-efficient upgrades.The district's finance committee, which met Tuesday night, was initially faced with a decision of recommending a $10 million bank loan or a $10 million bond.According to Zach Williard, of PFM, closing fees for the bank loan total around $60,000, while the fees associated with a bond issue are over $100,000.The committee also opted to add a $5 million bond issue instead of committing money from the district's $12 million fund balance to ensure adequate financing for the middle and high school projects."I don't like touching that fund balance when we have four aging elementary buildings and increasing pension obligations to the state," said Brian Feick, Lehighton business manager.The district is also proposing a $32.5 million elementary center to house all K-5 students."Even if that becomes a reality, we'll have three more years of keeping up those elementary schools," Feick said. "It is a nice rainy day fund."The QZAB funds, meanwhile, must be used for the middle school project.Williard said while the bond is not interest free, it does come at a very low interest."We project it will save the district around $3.5 million," he said.Four districts in Pennsylvania received a QZAB bond.Lehighton has to spend the money within three years.