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Council approves three-year lease-purchase to finance new ambulance for Springdale Fire Department
Summary
Council adopted an emergency ordinance authorizing a $360,286 lease-purchase agreement with Fifth Third Bank to finance a new ambulance payable over three years; council and staff said the financing process has been multi-year and the ambulance is intended to improve emergency medical services.
Springdale — The Springdale City Council voted May 21 to authorize a three-year lease-purchase agreement with Fifth Third Bank to finance a new ambulance for the city's emergency medical services.
The ordinance authorizes a lease in a principal amount not to exceed $360,286 for the ambulance and was adopted with an emergency clause so funds and the vehicle can be obtained on a timely basis. Council approved the measure 6-0.
Why it matters: The ambulance will be used by the Springdale Fire Department to provide emergency medical services. Financing through a lease-purchase allows the city to acquire the vehicle and pay over time rather than through a single capital outlay.
The ordinance text authorizes the mayor and city administrator to negotiate and execute the lease and related documents in a principal amount not to exceed $360,286, payable over three years. The ordinance included an effective interest rate stated in the legislative text; the measure also designated the obligations as qualified tax-exempt obligations for federal tax purposes and required the city to take tax-certification steps.
Council discussion noted the effort to secure fleet replacements and praised the progress. Councilor Vandiver observed the financing followed a multi-year process and welcomed having the ambulance in service. One councilor asked whether there would be a formal christening; the item did not change operations beyond acquisition.
The ordinance states the city's obligations are subject to annual appropriation and that the lease will not constitute a general obligation indebtedness under state law. Administration and the fire department will proceed with final lease execution and vehicle delivery arrangements.
