The city is looking to go shopping for some heavy equipment.
The Auburn City Council will hear a report Thursday during a work session meeting about the public works department's need for some large pieces of machinery. According to a proposed ordinance, city officials want to purchase a front-end loader, a hydraulic back hoe, a compactor, two truck chassis and packers at a maximum cost of $1.2 million.
The meeting, which will not include a time for the public to be heard, will take place at 6 p.m. in Auburn City Hall's council chambers, 24 South St.
The cost of the machinery would be financed by serial bonds. Councilors will hear Thursday the first reading of the ordinance that would authorize the city to issue the bonds.
According to City Manager Mark Palesh, these are routine purchases. The city generally replaces packers every three or four years, and front end loaders are usually replaced every seven years, Palesh said.
“These machines take a lot of abuse,” he said. “They have been used for so many years, it is time to replace them.”
Palesh added it is common for the city to borrow money for such purchases. With a bond, the city can pay the funds over time with a low interest rate, about 3.5 percent, he said.
Last week, city council approved the issuance of $1.6 million in serial bonds for upcoming road improvements and renovations at the state dam. At the same meeting, City Comptroller Lisa Green told councilors that the city tries to keep its debt to less than 10 percent of the general fund. The city's current debt is under that mark, she said Thursday.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
The meeting, which will not include a time for the public to be heard, will take place at 6 p.m. in Auburn City Hall's council chambers, 24 South St.
The cost of the machinery would be financed by serial bonds. Councilors will hear Thursday the first reading of the ordinance that would authorize the city to issue the bonds.
According to City Manager Mark Palesh, these are routine purchases. The city generally replaces packers every three or four years, and front end loaders are usually replaced every seven years, Palesh said.
“These machines take a lot of abuse,” he said. “They have been used for so many years, it is time to replace them.”
Palesh added it is common for the city to borrow money for such purchases. With a bond, the city can pay the funds over time with a low interest rate, about 3.5 percent, he said.
Last week, city council approved the issuance of $1.6 million in serial bonds for upcoming road improvements and renovations at the state dam. At the same meeting, City Comptroller Lisa Green told councilors that the city tries to keep its debt to less than 10 percent of the general fund. The city's current debt is under that mark, she said Thursday.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
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Coach wrote on Apr 1, 2008 5:38 PM: