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Carmel authorizes $491,511 equipment lease through Indiana Bond Bank HELP program
Summary
The Board authorized a master equipment lease and separate lease schedule to finance a generator purchase of $491,511 through the Indiana Bond Bank's Hoosier Equipment Lease Program (HELP), which the city said offered a lower interest rate and no prepayment penalty.
The City of Carmel Board of Public Works and Safety on May 21 authorized a master equipment lease and related documents to finance a generator purchase and other equipment for a total financed amount of $491,511.
Zach Jackson, the city's chief financial officer and controller, explained the city solicited a capital-lease vendor and elected to use the Indiana Bond Bank’s Hoosier Equipment Lease Program (HELP). Jackson said the program solicited proposals from 12 banks and produced an interest rate roughly a full percentage point lower than the city's current bank, with no prepayment penalty.
"We we own it after, typically, the 5 year term," Jackson said when explaining the structure; he added that the program meets bidding requirements and provides financial savings compared with the existing lease arrangement. Sergei Gertrzukin, office of corporation counsel, confirmed the master lease agreement had been reviewed and said execution was scheduled for later in the day.
The board voted to approve the resolution authorizing execution of the master equipment lease and related certificates; the chair recorded the motion carried.
Background: Jackson distinguished the HELP program from consumer-style leases and emphasized ownership at the end of the typical term. The financing will be executed with Crossroads Bank as the offset bank in the transaction.
