Title
Approving a resolution to accept a seven year financing term for equipment purchases not to exceed $500,000.
Summary
The FY23 budget includes assumptions to borrow funds for the purchase of a mini skid steer, back hoe, paver machine, and mini excavator. In order to close the loan Council must approve the resolution authorizing the City to enter into a debt agreement. The terms of the agreement are not-to-exceed $500,000, to be paid back within 7 years, at 3.85% interest.
Prior City Council Action
Reimbursement resolution approved January 10, 2023
Deadline for City Council Action
Approval requested January 24th to insure funding is received prior to delivery of equipment.
Funding Expected: Revenue __ Expenditure __ N/A _x_
Budgeted Item: Yes __ No __ N/A _x_
Amount: _$500,000_______
1295 Form Required? Yes _x_ No __
Legal Review Required: N/A __ Required _x_ Date Completed: ___________
Supporting documents attached:
Resolution
Loan Terms
Recommended Action
Approve the resolution to accept financing terms for equipment purchases not to exceed $500,000.