The City of Belleville city council voted to accept a lease purchase financing proposal from Capital One Public Funding LLC (COPF).
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The City of Belleville would enter into a tax exempt, master equipment lease/ purchase agreement to finance the acquisition of a copier, two pick up trucks with plows, a dump truck and improvements.
Belleville city clerk Diana Kollmeyer said the only copier in the building is too old to even bother repairing.
He subject of purchasing a used truck as a cost saving measuree was presented to DPS director Keith Boc.
"Then you're only buying a truck som eother city doesn't want," he said. "We did that and it was always in the shop."
The financed amount would be $270,000 at 4.8 percent for a period of five years.
The lease shall be prepayable at any time provided that the City gives COPF at least 30 days prior written notice of its intent to do so.
Lease proceeds can be funded into an escrow account with disbursements made as equipment is delivered and accepted.
The City also could use the COPF escrow services.
Should the City choose those services arranged by COPF, the set up fees will be paid by COPF.
All income earned on and incurred in respect to the escrow account shall accrue to the benefit of the City.
This proposal shall expire July 11, 2008 unless extended, in writing, by COPF at its sole discretion.
"The loan would be paid back through the capital improvement fund," Kollmeyer said.
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