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Claremore approves $1.6 million lease-purchase for refuse and vacuum trucks
Summary
The council approved a five-year lease-purchase to acquire refuse side-loaders and a vac truck, with staff estimating about $345,000 in annual lease payments at a 3.99% rate and saying the structure is non-bank-qualified to avoid affecting certain revenue financing plans.
The Claremore City Council approved a five-year lease-purchase financing arrangement to buy roughly $1.6 million in public-works equipment, city staff said.
City staff told the council the package covers side-loader refuse trucks and a vacuum truck used for underground work. Staff said the equipment has a useful life of seven to 10 years (longer with maintenance) and that the five-year lease-purchase would smooth cash flow. "We're gonna be about 345,000 a year in lease payments over the 5 years," the presenting staff member said.
Staff said the quoted interest rate is 3.99 percent and that the financing is structured as "non bank qualified," which the city said would avoid affecting the timing or use of revenue notes tied to larger capital projects. The presenter said the city shopped rates and selected a local bank, Armstrong Bank, as the financing provider.
Council called for questions before taking a roll-call vote. The motion passed on a roll call with the members present voting to approve the financing agreement.
The council did not attach a separate amendment or conditions to the financing during the meeting; staff indicated existing warranties would be supplemented by an additional warranty purchased outside the financing. The item was discussed as part of the Claremore Public Works Authority's authority to incur indebtedness for equipment purchases; the council later voted to allow the authority to incur the indebtedness.
