Amarillo council approves $12.355 million financing for fire apparatus

The Amarillo City Council voted to adopt Ordinance 8180, awarding roughly $12.355 million in public financing for new fire apparatus, after staff said a competitive bidding process produced a lower-than-expected interest rate.

Stephen Adams of Specialized Public Finance told the council that the city received 12 bids and that the winning bid was from BOK (Bank of Oklahoma) at about 3.27%. Adams said that result is notably cheaper than lease alternatives staff considered and will reduce long-term debt service. "We received 12 bids from companies all over the place; the winning bid is B Financial which is Bank of Oklahoma," Adams said during the presentation.

City staff and council members framed the transaction as an effort to reduce the cost of replacing aging emergency equipment while preserving the city's favorable credit rating; staff said the transaction helped the city avoid higher lease costs and that the sale timing produced competitive pricing. Council moved the ordinance, took a voice vote and the motion passed.

The financing award was presented as the culmination of prior budget conversations about how to replace large capital items without increasing the tax rate. Staff noted the awarded financing will have specific annual debt-service payments and that the issuance details had been negotiated with the city's financial advisers. The council approved the ordinance and the associated contractual obligations as presented; staff will finalize closing documents and repayment schedules consistent with the award.

Council closed the item and proceeded to other agenda business.