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Council approves leasing consultant approach for vehicle financing
Summary
Council reviewed bank proposals for lease-purchase financing to buy vehicles and equipment; staff recommended a municipal-leasing consultant option and the council moved to follow that recommendation on the record.
Staff member (S5) said the town solicited five banks for lease-purchase financing and received four proposals; one bank withdrew. S5 summarized three options: a 3-year option at about 5.95% (with a $50,000 deposit option to lower interest), a 6.15% option without deposit, and a municipal-leasing-consultant option with a roughly 6.69% rate but lower payments over the term. Based on past experience and overall cost, S5 recommended using the municipal-leasing consultant.
A council member moved to follow S5’s recommendation; the motion was seconded and approved on the record. Staff said the financing would cover vehicles and other approved capital items, and that the town will report payment schedules and the final contract terms back to the council once the paperwork is complete.
No vendor contracts were executed during the meeting; staff were authorized to proceed with the recommended financing approach and return with final terms for council review.
