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Pratt approves 8‑year loan from People's Bank to fund new fire truck
Summary
After reviewing three bank bids, the City of Pratt approved an eight‑year loan from People's Bank to finance a fire truck, with staff noting small cost differences among bids and one commissioner abstaining for conflict concerns.
The Pratt Commission voted on Nov. 3 to accept an eight‑year loan from People's Bank to finance the city's new fire truck, Fire Chief Hoffman said.
Chief Hoffman reported three banks submitted proposals and that an eight‑year note would save approximately $43,000 compared with longer terms. He noted an origination fee of $3,700 on the People's Bank offer; staff said Fusion Bank's total cost was a few hundred dollars less when fees were excluded, but People's Bank offered multiple term options (8, 10, 12 and 15 years) that Fusion did not. Staff recommended the eight‑year term and the commission approved the People's Bank eight‑year option.
Commissioners discussed whether the city was bound to accept the lowest bid; city attorney Cody Smith said other factors such as prior bank relationships and service history are legitimate considerations. One commissioner said they would abstain from the eventual vote because a financial interest could exist; staff recorded the abstention. The motion to proceed with People's Bank 8‑year loan carried on a voice vote.
