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Hot Springs board approves $2.19 million financing package for 2026 capital purchases under Amendment 78
Summary
The board adopted Ordinance O‑26‑06 on Feb. 3 to authorize short‑term financing with US Bancorp Government Leasing & Finance for $2,187,547 in 2026 equipment and vehicle purchases and declared an emergency to lock a 3.628% rate.
The Hot Springs Board of Directors voted on Feb. 3 to adopt Ordinance O‑26‑06 authorizing a financing agreement with US Bancorp Government Leasing & Finance Inc. to provide short‑term financing under Amendment 78 of the Arkansas Constitution for capital acquisitions totaling $2,187,547.
Finance Director Karen Scott told the board the financing request covers vehicles ($928,047), specialized equipment ($327,500) and heavy equipment ($932,000) included in the 2026 budget. She reported that the city issued a request for financing proposals on Dec. 31, 2025, received three responses and the most favorable proposal came from US Bancorp at a rate of 3.628% (compared with 4.38% and 4.25% on prior financing in 2024 and 2025).
Scott recommended declaring an emergency so the city could accept the lender's offer and lock the stated rate. The board voted by roll call; all named directors voted 'aye' and the emergency clause was read into the record and adopted.
The ordinance includes language stating the acquisitions are "essential to the public health, safety, and welfare" and, per the finance director, the city's 2026 budget contains debt service for the new financing. Staff said the lender's amortization schedule includes one interest payment this year and that there are funds in the budget to meet 2026 debt service.
