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Aberdeen authorizes financing for rescue truck and $628,000 for Old Avenue Elementary HVAC
Summary
At its June 8 work session Aberdeen authorized financing documents for a $514,500 rescue truck and approved authorization to borrow $628,000 for HVAC and infrastructure work at Old Avenue Elementary; staff cited a 3.97% bid and timing tied to a large September tax receipt.
The Aberdeen Town Board on June 8 authorized financing for two major capital items: a $514,500 loan for a rescue truck on a Freightliner chassis, and financing documents authorizing up to $628,000 for HVAC-related equipment and infrastructure work at Old Avenue Elementary.
Finance staff told the board the rescue truck financing had been approved by the town attorney and explained loan-closing timing tied to chassis delivery; the chassis is expected to be available at the plant in July with final delivery to the town later. The board voted to authorize the town manager or finance director to sign the installment-purchase agreement for the rescue truck.
On the school project, staff said the initial budget estimate of $450,000 underestimated rising prices and additional necessary infrastructure work; after a cash-flow review staff proposed borrowing $628,000. Finance staff presented amortization schedules and said the winning bid produced a 3.97% rate for a 54-month term; they also noted the town typically receives a large property-tax payment in September that affects cash flow planning.
Board members discussed whether to phase the work or approve the full scope now; staff recommended completing infrastructure items (HVAC, roof work, auditorium systems and associated piping) to make the building usable and avoid repeated short-term fixes. A motion to authorize financing documents for $628,000 carried.
Staff said first-year payments are budgeted in next year’s budget and that the town will return with final contract and scope documents; the town manager or finance director will execute the financing documents as authorized.
