Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Finance topic
No spam. Unsubscribe anytime.
Council discusses plan to finance replacement dump and sanitation trucks; no vote yet
Summary
Staff outlined a plan to use a Tennessee Municipal Bond Fund note of up to $450,000 to buy a dump truck (with snow equipment) and a sanitation rear-loader; council asked questions and staff said final figures will be returned at the next meeting.
East Ridge staff told the City Council on July 10 that the city plans to finance replacements for a city dump truck and a sanitation rear-loader through a capital note with the Tennessee Municipal Bond Fund and requested preliminary approval to pursue financing, but the council did not take final action at the meeting.
Staff said the city seeks to replace a 2009 F-150 dump truck (to be equipped with a snowplow and salt spreader) and a rear-end loader for sanitation (current unit is a 2006 model with heavy mileage and downtime). Staff proposed capitalizing the purchases over five years with a not-to-exceed borrowing amount of $450,000 at an interest rate estimate of 4.45 percent; staff said final pricing will be available for the next meeting.
Director-level staff described service needs — including past winters when additional plowing/spreading capacity would have been helpful — and estimated the fully equipped dump truck could cost approximately $156,000. Staff said the city had identified a used replacement pickup (a 2022 F-150) for about $31,000 as a potential near-term solution while formal financing is finalized, and staff said insurance proceeds for a totaled vehicle will help offset replacement costs.
Councilmembers asked for clarification on total repayment amounts and the five-year amortization. Staff said the final finance documents and the exact purchase prices would be returned to council at the next meeting for approval. No borrowing or contract award was finalized on July 10.
