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After analyzing the overall financing cost, the City's cash flow projection, and future <br /> replacement needs, staff determined that a 5-year term is more appropriate for this <br /> financing. The annual interest rate is 4.305%, the first lease payment is due in March <br /> 2024, and the final lease payment is due in September 2028. The annual lease <br /> payment is estimated to be $277,833 including principal and interest, assuming the <br /> financing closes around September 29, 2023. The overall financing cost is $1,389,166 <br /> including $1,237,932 in principal and $151,234 in interest. The lease will be structured <br /> as a tax-exempt municipal lease. Once the purchase and financing are approved by the <br /> City Council, the City will enter into a contract with GSFA to purchase the fire engine <br /> and enter into a lease/purchase agreement with JPMorgan Chase Bank, N.A. to prepay <br /> the fire engine. <br /> Submitted b Fiscal Review: Appr ved by: <br /> 1 <br /> Norm Dorais Susan Hsieh �ejrBeaudin <br /> Interim Director of Public Works Director of Finance City Manager <br /> Attachments: <br /> 1. Resolution <br /> 2. Golden State Fire Apparatus Type 1 Fire Engine Quote <br /> 3. JPMorgan Chase Bank Proposal <br /> Page 4 of 4 <br />