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North Butler board authorizes lease-purchase for eight buses from Daimler
Summary
The North Butler Community School District Board of Education unanimously adopted a resolution Dec. 16, 2024 authorizing a lease-purchase agreement with Daimler Truck Financial Services USA LLC to acquire eight buses (priced at $140,211 each per the lessor's proposal) and set a Jan. 13, 2025 public hearing on the sale of buses.
The North Butler Community School District Board of Education unanimously adopted a resolution Dec. 16, 2024 authorizing a lease-purchase agreement with Daimler Truck Financial Services USA LLC to lease eight new school buses. Director Amanda Lund introduced the resolution and Director Laurie Shultz seconded; the roll call vote was unanimous.
The resolution identifies the transaction documents as Master Installment Purchase Agreement No. 359679, Amendment No. 1, Equipment Schedule No. 359679 and related exhibits. The board's record states Daimler offered to lease eight buses at $140,211 each with either three- or five-year term options, and that the lessor provided the Lease Purchase Documents on or about Dec. 11, 2024.
The resolution cites Iowa Code section 274.1 and Iowa Code section 298.3 as statutory authority for the district to hold property and enter lease-purchase agreements for equipment. It also notes the board previously approved leasing eight buses on July 10, 2023 and that the buses became available in November 2024, later than the April 2024 window noted in the prior approval.
The document refers to Board Policy No. 705.1, which requires competitive proposals for goods and services exceeding $50,000; the resolution states the lease transaction exceeds that threshold and expressly waives any potential application of Policy No. 705.1 for this transaction. The board also designated the lease as a "Qualified Tax-Exempt Obligation" for purposes of federal tax rules and authorized the Superintendent and Board Secretary, with advice of legal counsel, to execute the Lease Purchase Agreement.
The resolution describes funding sources that may be used for the lease, including the district's regular and voter-approved Physical Plant and Equipment Levy and a State of Iowa fund referenced in the record as the "secure an advanced vision for education" fund. The document references past voter actions and notes the district will hold an election on March 4, 2025 to continue a voter-approved levy that could be used for such lease-purchase financing; the transcript text contains inconsistent phrasing for the levy rate and the exact rate is not specified in the meeting record.
The board also voted to set a public hearing on the sale of buses for Jan. 13, 2025 at 6:00 p.m. in the Allison Media Center.
The resolution and the accompanying Lease Purchase Documents (MIPA No. 359679 and exhibits) form the basis of the district's authorization; legal counsel and district officers were empowered to finalize and execute the agreements.
