This version corrects the size of the Toters available upon request to 48 gallons.
Rather than financing the vehicles through a municipal lending program, the city could borrow from itself through a bond anticipation note, said finance director David Creps.
“We have enough flexibility in our budget ... we can pay them off at any time,” he said.
The finance committee had received the matter from the health, sanitation, and public utilities committee, which is looking to acquire four trucks with a mechanical side arm that will pick up the Toter bins the city already has ordered.
Each truck will cost about $210,000, according to service director Jon Eckel.
TCF Equipment Financing had offered the city a borrowing rate of 2.59 percent over seven years. Mr. Creps said a municipal note would be borrowed at 1 percent, saving $98,774 in interest payments over the seven-year lease.
The finance committee voted 3-0 to recommend self-financing to council which meets at 6:30 p.m. today.
“We’re in a position to do this,” member Thomas Mackin said.
Mr. Eckel originally proposed acquiring four used and refurbished vehicles for about $175,000, but those vehicles were Canadian-built while the new vehicles found by consulting agent Best Equipment Co. would be made in Iowa, he said.
He also noted that new trucks were expected to operate for a minimum of eight years before requiring major maintenance, which would save the city some expense while implementing the new refuse and recycling program.
“We’re just trying to remain competitive as a municipality,” the service director said.
Mr. Eckel said a public meeting held Jan. 7 was well-attended and that residents were looking forward to the new program.
Some people were concerned about wielding the large, wheeled bins, which hold 96-gallons in volume and up to 300 pounds of material. The Toters were available at the meetings and most people found that they could handle them even when full, Mr. Eckel said.
The city is asking that people try the larger Toter first but will supply smaller, 48-gallon Toters upon request, he said.
Two more public meetings are scheduled for Feb. 7 and March 7. They will be held from 6-8 p.m. in council chambers. The implementation date for automated pickup is April 22, with delivery of Toters the week of April 15.