HomeMy WebLinkAbout6.n. Early Payoff of 2003 Lease - Purchase for Snowblower with Plow and AttachmentsCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
City Council Meeting Date: December 7, 2004
AGENDA ITEM: Early Payoff of 2003 Lease - Purchase for
AGENDA SECTION:
Snowblower with Plow and Attachments
Consent
PREPARED BY: Jeff May, Finance Director
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ATTACHMENTS: None
APPROVED BY:
RECOMMENDED ACTION: Motion to use $77,182.19 of Equipment CIP -funds fo payoff
the 2003 lease- purchase for the snowblower with plow and attachments; $60,000 from the
funds originally budgeted for the paver which was not purchased, $10,430.74 from funds
originally encumbered for Public Works pickups, $4,931.27 from funds originally
encumbered for Public Works irrigation van and the remaining $1,820.18 from Equipment
CIP reserves.
ACTION:
ISSUE Whether to pay of a 5 -year lease- purchase for a snowblower with
attachments early or include an annual levy to make the annual installments.
BACKGROUND This item is on the agenda for Council to give staff the authority to pay off
the 2003 lease - purchase early, This lease - purchase was completed in December of 2003
with the first payment not due until January 15, 2005. In reviewing 2004 budget
expenditures, staff felt it would be prudent to use the funds budgeted for the paver that were
unspent to be used towards paying off the snowblower and attachments. By using this
$60,000 it left a reasonably small amount left to pay the snowblower off and not worry about
an annual levy for repayment. In further discussions at the staff level it was determined that it
would be a prudent use of encumbered funds to pay off most of the remaining balance with
reserves of $1,820.18 being used. The encumbered items were for pickups and an irrigation
van purchased 2 years ago that had additional amounts that were spent this year but not to
the degree of the amounts encumbered.
I have obtained the payoff figure from the financing company and have approximately 30
days to complete the transaction.
SUMMARY
Recommend the above motion to approve the payoff of the 2003 Lease- purchase.