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Finance committee recommends South State Bank for FY27 lease-purchase financing
Summary
Finance staff briefed the committee on the FY27 lease-purchase plan for vehicles and equipment and recommended South State Bank as the lowest responsive bidder offering 3.74% interest. The committee voted to forward the resolution to full council with a recommendation of approval and an expected annual debt service of about $470,000.
Finance staff told the Finance & Policy Committee that the FY27 budget includes lease-purchase financing for vehicles and equipment and that staff and advisors recommend awarding the financing to South State Bank, the lowest responsive bidder. Staff said the bank offered a 3.74% interest rate across three tranches and that the city anticipates roughly $470,000 in annual debt service if the lease purchases proceed as planned.
"Total purchase price was not to exceed 2,963,000," a staff presenter said when summarizing the packet and the scope of the financing request. Staff said South State Bank’s proposal was competitive and that the bank would leave the funds in a money-market account earning 3.63% until the city draws them down. The committee moved and seconded a recommendation to forward the resolution to full council with approval recommended.
The committee’s recommendation will go to full council for final authorization; council later adopted a related resolution during the special-call session. Staff noted that the financing package allows options for prepayment without penalty and gives the city flexibility to bond or pay-go for particular tranches.
