TO: Mayor and Members of City Council
THRU: Doug Hewett, ICMA - CM, City Manager
FROM: Cheryl Spivey, CPA, Chief Finance Officer
Ray Oxendine, CPA, Treasurer
DATE: June 26, 2017
RE:
Title
Resolution Authorizing the Execution and Delivery of a $3,359,977 Equipment Installment Financing Agreement and Related Documents in Connection with the Financing of Various Vehicles and Equipment
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Mission Statement: The City Government is financially sound and provides a full range of quality municipal services that are valued by our customers and delivered by a dedicated workforce in a cost-effective manner
Executive Summary:
The fiscal year 2016-2017 budget included $3,359,977 of loan proceeds ($2,355,977 General Fund and $1,004,000 Environmental Services Fund) to purchase vehicles and equipment to be used by the City for governmental and proprietary purposes. On September 26, 2016, a Declaration of Official Intent to Reimburse the City for the acquisition of equipment and vehicles was adopted. The Declaration stated the City's intent to finance the purchase of vehicles and equipment for various departments including Police, Fire, Engineering and Infrastructure and Parks and Recreation. This Declaration permits the City to reimburse itself, from loan proceeds, for expenditures already made for vehicles and equipment.
Background:
On May 4, 2017, staff electronically distributed a request for proposals (RFP's) to financial institutions. The RFP was for an amount not to exceed $3,359,977 for the purpose of financing vehicles and equipment. The desired term of financing was 48 months with a fixed interest rate for the entire term.
On May 18, 2017, the City received financing proposals from 10 financial institutions. Staff has evaluated the proposals and recommends that Council authorize the execution of a financing agreement with PNC Equipment Finance. PNC was select...
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