Newton awards equipment financing to Truist Bank/BB&T; approves budget amendments to cover vendor price increases and landfill overages

Newton City Council on June 1 approved staff recommendations to award bank financing for equipment purchases to Truist Bank/BB&T and adopted related budget amendments to account for vendor price increases. Finance Director Vickie Thomas explained quotes obtained in April were exceeded by vendor price increases and presented three financing proposals: a 5-year amortization not to exceed $240,473 at 1.22%; a 7-year amortization not to exceed $529,371 at 1.57%; and a 15-year amortization not to exceed $746,750 at 2.34%. Thomas said two institutions provided quotes (Truist Bank/BB&T and Peoples Bank) and noted that Peoples Bank's proposal included estimated legal and title fees, producing total interest and fees that "exceeds the interest and fees of Truist Bank/BB&T by $19,725.52." Council voted unanimously to award financing to Truist Bank/BB&T for the three packages and to adopt the proposed financing resolutions.

Ms. Thomas also described vendor price increases that required budget ordinance amendments: Water and Wastewater Fund vehicle and equipment purchases rose from the April 23 quotes, creating a needed budget adjustment of $11,251; a Street Department dump truck increased by $16,607 over its budgeted amount. Council approved the attached budget ordinance amendment as presented.

Separately, Public Works and Utilities Director Dusty Wentz reported that changes in residential collection policy (covering additional residential waste) and unusually high yard-waste tonnage due to storm damage produced an estimated $25,000 overrun in Blackburn Landfill fees for FY2021. Wentz recommended and the council approved a $25,000 budget ordinance amendment to cover the remainder of the fiscal year. Council Member Ed Sain moved for adoption; the motion carried unanimously.

The adopted financing terms and budget amendments are referenced in resolutions on file with the City Clerk.