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Levelland approves 5.93% lease-purchase financing from American National Leasing for police fleet
Summary
Council awarded lease‑purchase financing for the police vehicle procurement to American National Leasing at a 5.93% bank‑qualified rate, authorized the city manager to execute documents after legal and financial consultation, and allowed one no‑cost refinance during the lease term.
After reviewing four lease-purchase financing proposals, Levelland staff recommended American National Leasing for the police fleet financing because it provided a bank‑qualified quoted rate, allowed one no‑cost refinance during the term, and offered fleet sale facilitation at no cost. Council voted unanimously to award the financing at a quoted rate of 5.93% and authorized the city manager to execute necessary documents after consultation with the city attorney, mayor, and financial advisor.
Staff said other respondents had tradeoffs: one bidder (First American) could be lower cost but required self-handling of fleet sales; another (D&M Leasing) had competitive payments but higher service fees; Smith Auto Family was the most expensive overall. The approved award secures a locked rate and certain administrative benefits that staff judged valuable for the city’s financing plan.
Why it matters: locking a bank‑qualified rate and the ability to refinance once without cost reduces medium-term financing risk for the city’s capital purchase and aligns financing with the procurement timeline.
Next steps: city manager is authorized to sign financing documents after consulting the city attorney, mayor, and the city’s financial advisor.
