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Council approves master lease purchase agreement, authorizes rate-lock parameters up to $7.3 million
Summary
Missoula City Council unanimously approved a resolution authorizing the form of a master lease-purchase agreement and rate-lock parameters, allowing up to $7.3 million in principal, a true interest cost cap of 4.95% and a term not to exceed 15 years.
The Missoula City Council unanimously approved a resolution on Aug. 4 authorizing the form of a master lease-purchase agreement, related lease schedules and a rate-lock agreement with parameters that cap principal at $7,300,000, true interest cost at 4.95% and the term at 15 years.
Lee Griffin, staff presenting the item online, said the administration ran an RFP this year and, with financial advisers and bond counsel, selected JPMorgan Chase Bank to serve as the lender under the updated form. Griffin described the resolution as approving the form of the master lease and authorizing the execution of a rate-lock agreement “subject to certain parameters.”
The motion to approve the resolution was read and brought to a roll-call vote. City Clerk stand-in Justice Redding recorded the vote as unanimous. A council reading of the roll-call vote in the meeting transcript shows all present members voting yes.
The administration said the master lease is used annually to finance equipment and other items listed in the city’s adopted budget and capital-improvement program, and the updated agreement sets guardrails—maximum principal, interest-cost cap and maximum term—before formal closing and final lease schedules are executed.
Councilors did not request further changes before the vote. The resolution authorizes staff to complete the transaction within the stated parameters and to return with final schedules as the financed items are identified and closed.
