NEWS

City closes on $6.5M master lease for vehicle, equipment purchases

Posted 10/29/21

Warwick has entered into a $6.5 million Tax-Exempt Master Lease to fund major equipment purchases for the Fire Department, Police Department, Public Works and Library, the mayor’s office …

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NEWS

City closes on $6.5M master lease for vehicle, equipment purchases

Posted

Warwick has entered into a $6.5 million Tax-Exempt Master Lease to fund major equipment purchases for the Fire Department, Police Department, Public Works and Library, the mayor’s office announced Tuesday.

“This is the first major upgrade to the city’s rolling stock since 2017 and solidifies this Administration’s dedication and continued investment in the city,” Mayor Frank Picozzi said in a statement. The Master Lease closed on Thursday, October 14, with Santander Bank as lender. City Finance Director Peder Schaefer said the interest rate on the six-year lease is a fixed rate of 0.98% with attractive financing terms and flexibility.

Schaefer said the “$6.5 million was issued through a competitive sealed bid proposal process and was awarded to Santander Bank as the low bidder. By utilizing the City’s Tax-Exempt Master Lease Purchasing Program through the Purchasing Department, we were able to streamline the process and save on issuance costs when compared to other financing alternatives.”

The proceeds of the Master Lease, deposited in an escrow account at the bank, will be used to lease rolling stock and equipment.

Once the 6-year lease payments – actually seven payments about $970,000 a year - are completed, the vehicles and equipment are owned by the city. The equipment purchased by the city will have a substantial impact, allowing the Fire Department, Police Department, Public Works and Library to continue operating safely and efficiently. Some examples of equipment purchased or to be purchased include: new rescue vehicles for the Fire Department, police interceptor vehicles for the Police Department, vehicles to assist with sanitation and highway maintenance for Public Works and updating the HVAC system and elevator for the Library.

city, master lease, purchases

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