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Council agrees to extend bucket‑truck loan term to ease monthly payments, raising long‑term interest
Summary
City staff negotiated changing the electric department's bucket‑truck loan from three to five years, lowering monthly payments from $8,526.72 to $5,355.70 but increasing total interest cost (council estimated roughly $14,000). The council authorized staff to proceed and to sell older trucks to reduce principal.
Staff reported that the lender agreed to modify financing for the city's new electric bucket truck from a three‑year term to a five‑year term with a 0.3 percentage‑point rate change. Under the revised schedule, monthly payments would fall from $8,526.72 to $5,355.70, easing immediate budget pressure.
Staff said the longer term will increase total interest paid over the life of the loan; a councilmember estimated the difference at about $14,000. Staff also noted there is no prepayment penalty, and the plan includes selling two older electric department trucks and applying proceeds to principal to reduce the overall cost.
Council members discussed the trade‑offs between near‑term budget relief and increased lifetime cost. Staff indicated the truck is due to arrive around the first of the month and recommended closing the loan on the revised terms; council members signaled support to proceed without objection.
