Hot Springs staff recommends $2.19 million short‑term financing to lock low rate
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Summary
Finance Director Karen Scott recommended the city obtain $2,187,547 in short‑term financing from US Bancorp Government Leasing & Finance Inc. at a rate of 3.628% to fund 2026 capital vehicle and equipment purchases; staff proposed declaring an emergency to lock the rate.
Finance Director Karen Scott presented Ordinance O26-06 seeking short‑term financing of $2,187,547 under Amendment 78 to the Arkansas Constitution to acquire 2026 capital items.
Scott said the request would finance $928,047 in vehicles, $327,500 in specialized equipment and $932,000 in heavy equipment. The city issued a request for financing proposals and received three responses; Scott said US Bancorp Government Leasing & Finance Inc. submitted the most favorable offer at 3.628 percent. For comparison, she read 2024 and 2025 financing rates (about 4.38 and 4.25 percent respectively) and said declaring an emergency would permit the city to lock the lower rate immediately.
Scott said the 2026 budget can cover the financing because the city will pay only one interest payment in 2026 instead of two. She provided the board a spreadsheet showing outstanding Amendment 78 debt and related items and said the proposal packet will be available for review. The ordinance was scheduled for formal action on Feb. 3; no vote was taken at the review meeting.
