City approves line-of-credit bid from VSB for equipment purchases
In its regular meeting Sept. 19, the Russellville City Council passed a resolution to accept sealed bids received for interest rate on a loan to purchase paving equipment for the Russellville Street Department.
Mayor David Grissom reported bids were requested from all local banks – CB&S, First Metro, Bank Independent, Community Spirit Bank and Valley State Bank. The lowest bid came in from Valley State Bank for 3.67 percent for 10 years, with a line of credit phase for year one requiring the payment of interest at the end of the first year and the amortization of the balance after the end of that year for the remaining nine years.
“We had a total amount of paving equipment the city council had authorized the purchase of, in the amount of approximately $458,0000, but only about half of it is in,” explained Grissom. “We sent out the bids, and I didn’t realize the paver wasn’t here, so we re-sent out the bids.”
Russellville City Clerk Belinda Miller reported the equipment could be late spring or summer 2023 in arriving.
Grissom said he requested a one-year half-million-dollar line of bank credit for the city to avoid having to pay interest on the paving machine that hasn’t arrived yet, a machine he said costs around $231,000.
He added that allows for drawing now based on what’s in, just the amount needed. At the end of the year, whatever balance is owed – which he estimated to be around $458,000-$460,000 – will be amortized over nine years.
In other business:
- The council authorized the mayor and city clerk to draw from a line of credit at CB&S Bank for the purchase of two 2023 Kenworth T880 dump trucks in the amount of $450,113.08 total. Grissom said the purchase of four of the trucks was authorized previously, but the other two aren’t available. He said the other two are expected “sometime around the first of the year.”
- The council authorized the purchase and installation of a P25 Repeater in the amount of $6,890.40 for the Russellville Police Department, to be paid for from the Project Star Fund. “This is something we’ve been working on for over a year,” explained Police Chief Chris Hargett. He said after all first responders “had to narrow-band their radios,” that caused a loss of some of the distance they were able to reach previously.
- The council approved hiring Clint Sykes as a heavy equipment driver/operator for the Solid Waste Division in the Russellville Street Department, starting at pay grade six, step six, based on his experience.
The next regular council meeting will be Oct. 3 at 6 p.m. at Russellville City Hall in downtown Russellville.