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Perry council authorizes PMA to finance Wyler paver; loan set at $218,000, city to solicit two local banks
Summary
Council approved a resolution directing the Perry Municipal Authority to incur up to the stated amount for a Wyler paver, with the final purchase price received at $218,000; the council waived wide competitive bidding, asked staff to solicit both local banks, and set plan to repay the loan next year while starting street work this year.
The Perry City Council authorized the Perry Municipal Authority (PMA) to incur indebtedness and issue a promissory note to finance a Wyler asphalt lay‑down machine for the city’s street program.
City staff told council the negotiated purchase price for the paver came in at $218,000 — below the resolution’s not‑to‑exceed figure — and staff recommended financing the purchase at roughly 2 percent interest with the intention of paying it off next year. Staff said the PMA will pledge a certificate of deposit as collateral for the promissory note, with no interest paid on that CD for the term of the indebtedness.
Council discussed the competitive‑bidding waiver; council members and staff agreed to solicit both local banks (Exchange Bank and First Bank & Trust) to compare offers before final execution, while keeping the resolution’s form for tax‑exempt financing. City staff noted one local bank historically cannot benefit from tax‑exempt structures because of corporate setup; staff said both banks would be approached and the trust manager/city manager would pick the most competitive proposal for final documents. Staff also clarified the purchaser on the sales agreement must be the Perry Municipal Authority (PMA), not the City of Perry.
During discussion staff reviewed the city’s street equipment plan: trucks already ordered and expected in August, the new paver likely to arrive in August, and use of county equipment and partnerships to fill gaps (rollers, packers) while the city grows capacity. Public‑works staff said the chosen Wyler model (P285/P280 family) was selected because it fits alleyways and avoids excessive passes on wider streets. Staff said the program’s target is 15 blocks completed by the end of 2026; with the new equipment arriving in August, the city expects to make “quite a bit” of progress in 2025 and expand output in 2026.
A motion to approve the resolution with the revision to ensure the PMA is the purchaser and to solicit both local banks passed on roll call. Councilmembers voting yes included Marshall, Davis, Koldine/Koldar, Ruff, Williams, O’Shea and Wortham; the action was also approved by the Perry Municipal Authority at its separate meeting.
The vote authorizes the PMA to execute necessary loan documents, pledge the CD as security for the note, and proceed with purchasing the paver under the stated terms; staff will return with final loan documents for signature.
