Newton Council tables $5.56 million fire station financing decision; special meeting to be scheduled

The Newton City Council on Feb. 3 reviewed competing financing proposals to fund design and construction of a new fire station with estimated costs of $5,562,000. Finance Director Kim Robinson summarized the RFP process and four proposals received: Truist, Huntington National Bank, Webster Public Finance and Peoples Bank.

Robinson said Truist offered the lowest stated interest rate for a 15-year term (stated at 4.21%) with a declining prepayment penalty in years 1–5 and additional costs about $3,500 higher than Webster; Truist’s quoted rate is valid through March 23, 2026. Webster’s firm rate is 4.31% for a 15-year term, guaranteed through May 7, 2026, with $5,000 in lender fees and unspecified issuance costs that the city would pay; Huntington and Peoples had other prepayment terms and higher or less-favorable fee structures.

Staff narrowed recommendations to either Truist (lower rate but rate lock expires sooner) or Webster (slightly higher rate but longer guarantee) and advised Council to weigh guaranteed pricing, lender fees and undisclosed issuance costs. After discussion, a motion to table the financing decision was made and, following Council comment, a separate motion to table and set a special meeting for further discussion was adopted unanimously. The minutes record no formal adoption of financing terms at the Feb. 3 meeting.

Next steps: staff will prepare information for a special meeting, including clearer estimates of closing and issuance costs and any refreshed interest-rate proposals before Council takes a final vote.