Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fleet Replacement Garbage Truck topic
No spam. Unsubscribe anytime.
Council discusses purchase and lease-to-own financing for new garbage truck
Summary
City staff presented a quote for a new rear-pack garbage truck and a six-year lease-to-own plan; council asked for details on prepayment penalties and whether an outright purchase should be considered given current one-time revenues.
Public works staff described a quote for a new rear-pack garbage truck and recommended financing through a tax-exempt lease-to-own agreement. Mr. Pennington told council the low bid from Municipal Equipment Inc. was $317,029 and that the six-year lease-to-own payment would be about $61,956.10 per year. "Truck meets the city specifications, and the lease to own price was determined to be approximately $61,956.10 per year for the 6 years lease," Mr. Pennington said.
Council members asked whether the city must act that night and whether the budget contemplated a lease payment. Councilman King noted the budget included funds for a lease payment and asked about the total additional cost over the lease, saying the document fee added roughly $62,000. Council Member Weiser suggested checking whether Magnolia Bank imposes a prepayment penalty and considering a larger down payment to reduce finance costs.
Staff said ordering the truck sooner moves the vehicle into the manufacturing queue; lead time was estimated at about six months. Council did not adopt the ordinance on an emergency basis and left the item on first reading while directing staff to return with financing details, prepayment terms and options for outright purchase.
