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Council approves lease-purchase financing for street equipment up to $1.1 million
Summary
The Alliance City Council adopted Ordinance No. 3017 to authorize lease-purchase financing (not to exceed $1,100,000) for Street Department equipment; council chose a seven-year term and confirmed funding from the Highway Allocation Fund.
The Alliance City Council on March 3 approved Ordinance No. 3017, authorizing lease-purchase financing for new Street Department machinery and trucks in an amount not to exceed $1,100,000. The ordinance allows the city to structure the financing as a private placement or as certificates of participation and directs city officials to finalize terms within the parameters set by the ordinance.
The staff summary included example equipment and estimated costs: dump truck line items totaling approximately $541,276, a wheel loader at $274,250, a tractor at $72,333, and a tar machine at $62,838. Council and staff discussed financing structure and term; Finance Director Baker worked with Austin Partridge of Northland on options. Mayor McGhehey said the "bonds are based on principal" during discussion of pricing and term options.
Council discussed which fund would be used and confirmed the Highway Allocation Fund as the source of repayment; Finance Director Baker clarified that no General Fund dollars would be used. After discussion the council selected a seven-year repayment term and approved the ordinance on first and final reading by a 5-0 vote.
