GULFPORT – For the first time in its history, Gulfport will lease-to-own a garbage truck. The city opened a line of credit with Bank of America for $1.4 million dollars over five years. The first purchase on this lease-to-own plan, a side loader garbage truck, will cost just under $232,000. The city will pay 2.5182% interest. The monthly payments will cost the city just over $12,000 a month with the final payment due on June 20, 2018.
In the four coming fiscal years, the city intends to use this line of credit – with council approval – to purchase a dump truck (2014, $138,000), a pickup truck (2015, $69,000), a claw truck (2015, $169,000), a side loader (2016, $265,000) and a front-end loader (2018, $435,000).
City council will approve or deny these purchases on a case-by case basis, and staff will sell vehicles in the fleet each year to help defray the costs. The city will pay market interest on each purchase at the time of purchase.
The city will use the money not immediately spent on the equipment for capital improvement projects.