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Newton City Council awards two financing packages to Truist Bank for equipment and infrastructure
Summary
The Newton City Council unanimously approved two loans with Truist Bank — a 15-year, up-to-$1,318,069 loan at 2.39% for infrastructure and equipment and a 10-year, up-to-$752,677 loan at 2.21% for vehicles and equipment — after a public hearing and staff recommendation.
Newton City Council unanimously approved two financing packages with Truist Bank on Feb. 1, 2022, to fund city infrastructure, vehicles and equipment.
Finance Director Vickie Thomas told the council during a public hearing that the city solicited bids from six financial institutions and received offers from two. "Truist Bank provided the lowest bid," Thomas said, and staff recommended awarding both the 15-year and 10-year amortizations to Truist. The 15-year package was listed not to exceed $1,318,069 at a stated interest rate of 2.39%; the 10-year package was listed not to exceed $752,677 at a stated interest rate of 2.21%. Thomas said actual borrowing amounts would be reduced if project costs come in lower than the bid requests.
Council recorded formal motions to award the bids and adopt the financing resolutions. Council Member Jody Dixon moved to award the 15-year financing; the motion was seconded and carried unanimously. The council then approved the 10-year financing and adopted the corresponding resolutions, again by unanimous vote.
The financing covers a set of equipment and capital infrastructure items identified in the bid requests; Thomas said the resolutions submitted to the Local Government Commission reflect the bid request numbers and listed projects so the process can proceed efficiently. The council did not discuss alternative financing sources during the hearing, and no public speakers addressed the financing.
The council also approved routine items earlier in the meeting, including minutes and a consent agenda. The meeting recessed to a closed session on personnel matters and will reconvene for that closed session at 4:30 p.m. on Feb. 9 at the Western Piedmont Council of Governments.
What happens next: Staff will work with Truist and the Local Government Commission to finalize loan documentation and adjust the borrowed amounts if bids or project costs change.
