Submitted By
Steven Drazner
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving a Capital Lease with Huntington Public Capital Corporation in the Amount of $244,720 to Finance the Purchase of a Pelican Street Sweeper and Authorizing the Village Manager to Execute Any and All Documents for the Capital Lease
End
Overview
Overview
The purchase of the street sweeper was previously approved by the Village Board at the February 16th board regular meeting. Public Works has taken delivery of the equipment in May 2021 and this is the last step in the process to approve financing this purchase as recommended in the Fiscal Year 2021 Fleet Replacement Fund budget.
Body
Staff Recommendation
Approve the Resolution
Fiscal Impact
Debt service payments on this installment loan will be budgeted in the Fleet Replacement Fund.
Background
The purchase of the street sweeper was previously approved on February 16, 2021. Huntington Public Capital Corporation will remit payment pf $244,720 directly to Standard Equipment Company and the cost of financing the sweeper will subsequently be made by the Village as debt service payments to Huntington Public Capital over the next five years. The first of the five annual payments will start on June 1, 2022. The full payment schedule is included in the documentation attached to this agenda item.
Interest and principal payments to Huntington over the five year lease will total $258,289, and thus, the financing cost to the Village will equal $13,569, averaging to approximately $2,713 per year. The interest rate on this lease/installment loan will be 1.84%.
Alternatives
Pay for the sweeper by drawing down on capital reserves.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A
Performance Management (MAP) Alignment
N/A