01. Resolution 5256 - Fire Department Ladder Truck FinancingCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 w Telephone (406)758-7700 Fax (406)758-7758
REPORT To: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
Jim Patrick, City Manager
SUBJECT: Ladder Truck Financing —Fire Dept.
MEETING HATE: January 22, 2008
BACKGROUND: The City budget provides for financing the purchase of a ladder truck
for a period of ten years. The cost of the ladder truck is $687,987.
The amount financed is $575,000. Impact fee money will be used
for the difference. The contract has been awarded to Smeal Fire
Apparatus Company and the truck is being built with delivery
expected in. October. A down payment is needed in February. Future
debt service payments will be split between the General Fund and
the Impact Fee Fund. The low bid rate was by Rocky Mountain Bank
at 3.95%, a fixed rate for 10 years with no prepayment penalty.
Closing is scheduled for February I".
RECOMMENDATION: Adoption of Debt Resolution.
Amy Robertson.
Finance Director
Report compiled: January 16, 2008
r• f
1I11 a C
City Manager
RESOLUTION No. 5256
A RESOLUTION AUTHORIZING THE CITY MANAGER AND FINANCE DIRECTOR
To ENTER INTO A LOAN AGREEMENT WITH ROCKY MOUNTAIN BANK FOR
THE PURPOSE OF PURCHASING A FIRE TRUCK.
WHEREAS, the 2007-2008 Fire Department budget provided for financing the purchase of a
ladder truck for a period of ten years, and
WHEREAS, on October 15, 2007, Council awarded the contract to Big Sky Fire Equipment in
Lewistown in the amount of $ 6 8 7, 9 8 7, and
WHEREAS, Rocky Mountain Bank is offering to loan the City of Kalispell the amount of
$575,000 at a 3.95% fixed rate for ten years in order for the City to purchase the
ladder truck, with the difference being paid out of Impact Fee funds. The
amortization schedule is attached as Exhibit "A"
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That upon approval of the City's Bond Counsel, the City Manager and
Finance Director are hereby authorized and directed to enter into a loan
agreement with Rocky Mountain Bank in the amount of $575,000 at a
3.95% fixed rate for the period of ten years.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 22ND DAY OF JANUARY, 2008.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
h
EXHIBIT 44A"
,DATE 01 -14 - 2 0 0 8 .COCKY MOUNTAIN BANK
AMORTIZATION SCHEDULE
PRIM AMT: 575, 000.00 ACCR/YR EASE: ACT 360
INTEREST R `ICE : 3. 9 5 0 0
PAGE 1
LN0295
50--0295
INT COMP: SIMPLE
PAYMENT
TC`. AL PYMT
PRINCIPAL
INTEREST
PRINC I PAL BAL
DATE
CR. LIFE
A &H
OTHER INS
INTEREST PAID
B-01--08
35067-27
25414.45
9652*81
549585.54
.00
.00
.00
9652.81
2-01 - 09
35067.27
23971.75
11095 -52
5256163.79
_00
.00
.cc
20748 .33
8 -- 01-- 09
35067 _27
24628 .72
10438.55
500985.07
.00
.00
.00
31186.88
(�
-01-10
24952.94
1.0114,33
476032.1.3
413 01. 21
8 - 01.�-10
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2S 613.40
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35067.27
25973 - 82
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424444.91.
.00
.00
.Ott
59848.S3
B - 01-11.
35O67 .27
26637.91
8429.36
397807.00
68277,89
2-01--12
35067.27
27035.99
8031.2E
370771.01
.00
.00
.00
'
9 - 01-1.2
3506'7 .27
27863 ,18
7404. 09
343107.83
83715.26
2-01-1.3
35067,27
28140;31
6926.96
314967.52
.00
.00
.00
90640.22
8-01-13
S5067_27
2881.2.10
6255.37
2861.55.42
.00
.00
.00
9�895.39
2-01.-14
35061,27
29290 r 11
5777.16
256865.31
.00
.00
.00
102672,55
8-01-14
35067.27
29965.99
5101-28
226899-32
0
0
.00
107773,83
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2- 01--1S
35067.27
(#�
30486 . r�3
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196412 ►89
.00
.00
.00
112354.67
DATE 01-14-2008
p;.ZXN AMT
ROCKY mouNTpaiN BANX
AMORTIZATION SCHEDULE
$7 5 l 0 0 4 .0 0 ACCR/ 3R RASE: ACT 360
INTEREST RATE.: 3.9500
PAYMENT TOTAL PYfT
DATE
8-01-15
2-01-16
8-01-16
2 - a 1--1r 7
a -D1-17
2- 01 -.18
35067.2"7
3506 7.27
35C87 . 27
35067 .27
3S067.27
35067 . 16
PRINCIPAL
CR LIFE
3116G s SG
.00
3 1 7 3 1 a 1 3
.00
32401 - 85
.00
33025.85
"DO
33715.05
.00
34373.21.
.00
PAGE 2
LX029S
5a-4255
INT COMP: SIMPLE
INTEREST
A&H
3900.71
04
3336.14
.0D
2666.22
.0D
2041.38
.08
1352.22
.00
6 53 w 95
.0D
PRI NC I PAL RAL
OTHER INS
INTEREST PAID
165246.3 3
.00
116255.38
133515.20
.D0
1.1.9591 -52
101114.15
.D0
12225 1�fw 74
68088.26
.00
124295-1.2
34373 .21
.00
1.25651.34
.00
.00
126345 .2 9
d7iAIRmrky2405 Highway 93 North
L- MOUAtain Kalispell, MT 59901
Banff 406/751-5070 ■ Fax 406/751-5090
ww, a iba k on f
January 7, 2008
City of Kalispell
Att: Amy Robertson
P.O. Box 1997
Kalispell, l.1lIT 59903 -1997
Dear Amy:
Thank you for this opportunity to offer a proposal for the financing of the City of
Ialispell's purchase of a new fire truck. Please find attached, a Proposal Letter (the
"Proposal') as presented by Rocky Mountain Bank (the "'Lender"). The Proposal is
subject to, Borrower's satisfaction of all conditions precedent as outlined in the Proposal
and as may further be established by Rocky Mountain Bank as the result of completion of
its credit underwriting. This Proposal sets fortb the anticipated terms and conditions of
the loan, it is not all inclusive. A11 specific terms and conditions will be documented to
Lender's satisfaction in the Loan Documents.
Sincerely,
Chad Baker
Vice President
Rocky Mountain Bank
0, LOCATIONS: BIGFORK + BILLINGS -, BOZEMAN ■ KALISPELL * PLAINS • PLENTYWOOD • STEVENSVILLE + VE HITEHALL
Permanent Loan
Borrower: City of Kalispell
Loan Amount: $575,000.00
Purpose: Purchase money for new fire truck manufactured by Smeal
Fire Apparatus Co. Purchase price $f 87,987.
Collateral: Perfected Security Interest in Fire Truck.
Tenn: l0-year term, I 0-year amortization
Repayment Structure: Semi-annual Principal and Interest payments.
Interest Rate: 3.95 %, 10-year fixed rate
Termination Date: Loan closing to occur on or before February 1, 2008
Prepayment Fee: None
Other Terms: Loan documents to contain customary terms and covenants
acceptable to Lender, including, without limitation, the
following. -
Financial Reporting.
Borrower to provide annual audited financial statements.
CONDITIONS PRECEDENT To CLOSING
Documentation: The Borrower and Guarantors shall execute and deliver such documents
and instruments, and do such other acts and things as the Lender may require, to effect
the transactions described in this proposal. All proceedings, agreements, instruments,
documents and other matters relating to the making of the lean and transactions herein
contemplated shall be satisfactory in farm and substance to the Lender and its counsel.
MISCELLANEOUS
Governing„ Law;, This proposal and the Loan shall be governed by and construed in
accordance with the laws of the State of Montana.
Entire Agreement: The terms of this proposal supersede all prior written or oral
communications between the Lender and the Borrower with respect to the terms of this
proposal and the Loan to be made pursuant hereto. No modification or waiver of any
provisions hereof shall be effective unless set furth in writing and signed by the party to
be bound thereby.
The foregoing terms are an expression of intent by Lender and Borrower only and are not
intended, and shall not be interpreted to create a binding obligation on behalf of Borrower
or Lender. The terms of this proposal expire February 1, 2008.
This Term Sheet is agreed to and accepted as of 12008.
ACCEPTED AND AGREED To BY:
City of Kalispell
By: Amy Robertson, Finance Director
By: Jim. Patrick, City Manager