Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Finance topic
No spam. Unsubscribe anytime.
Board approves five-year First American lease for highway equipment at below-budget rate
Summary
The board approved a five-year lease with vendor First American for highway equipment at an interest rate of about 4.92%, noting the lease payments come in under the budgeted amounts and follow the established replacement plan.
Madison's Board of Finance approved a five-year capital lease with First American to finance highway equipment purchases, accepting a rate of approximately 4.92% that was reported to come in under the budgeted amount.
Staff explained the highway equipment fund and the leasing vehicle the town uses for equipment replacement; the vendor First American was recommended because of prior positive experience with their paperwork and competitive interest terms. The board discussed the trade-offs of leasing to obtain equipment now versus appropriating funds across multiple years.
Board members noted the lease is part of an ongoing replacement plan and that the negotiated rate was lower than the amount budgeted for the CIP. The motion carried by voice vote.
