CITY COMMISSION AGENDA ITEM

Department:

Finance

Commission Meeting Date:  August 15, 2017

Staff Contact:

Bryan Kidney, Finance Director

Recommendations/Options/Action Requested:

Adopt Resolution No. 7221 declaring the City’s intent to reimburse costs of acquiring certain equipment from proceeds of a lease purchase agreement.

Executive Summary:

During the 2017 budget process, the City identified the following equipment to finance through a lease purchase.

Equipment	Department	Estimated Cost
328 Tandem Axle Dump Truck	Public Works	$155,629
Total		$155,629

The City will solicit proposals from interested local banks for the five-year lease purchase financing. The timing of the lease will be contingent on the bidding out of the equipment.

Strategic Plan Critical Success Factor

Core Services

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The fiscal impact to the City will be five years of lease payments beginning in fiscal year 2018. At the current interest rates, the debt service would be approximately $34,000 per year. This equipment was included in the 2017-2021 CIP and is included in the 2018 budget. 

Attachments:

Resolution No. 7221

Reviewed By: (for CMO use only)

☐TM ☒DS ☐CT ☐BM