The Peachtree City Council approved securing a $2.55 million loan for various capital improvements Thursday night.
Council also approved a separate $1.07 million loan to lease/purchase equipment including 15 police vehicles and new breathing apparatus units for the fire department.
Among the capital improvement projects are $700,000 to finish the renovation of the police department headquarters, $365,000 to repair foundation issues at City Hall and $229,000 to resurface the parking lot at City Hall. The police renovation has already been completed.
The city will use the Braelinn (Weber) and Kedron (Satterthwaite) fire stations as collateral for the loan. The stations technically will be sold as part of the deal and repurchased over the 15-year life of the loan, though the city will maintain control over the property.
The lowest bid on the capital projects loan was from Bank of America with a fixed interest rate of 4.1551 percent. The lowest bid on the equipment lease was SunTrust Equipment Finance and Leasing Corp. with a fixed rate of 2.785 percent.
The lion’s share of the remaining funds from the capital loan are earmarked for improvements at the city’s four fire stations. The biggest such project will be at the Kedron station off Crabapple Lane which will be remodeled and expanded with the addition of a sewer connection to replace the current septic system. The price tag for that project is $411,000.
Neely station, located on Peachtree Parkway near Ga. Highway 54, will get a new roof, a redesigned HVAC system, new exterior paint and driveway and parking lot repairs for a total of $232,000 in work.
Weber station, located in the Braelinn area off south Peachtree Parkway, will get a new sewer connection to replace the septic service and also driveway and parking lot repairs for a total cost of $132,413.
Leach station, which is the newest, is only slated for driveway and parking lot repairs at $75,000. It is located off Paschal Road near Ga. Highway 74.
Other capital projects funded by the loan include the installation of a proximity security card system at City Hall, installation of a new exterior seal coating at City Hall and renovations to the city’s community development office.
City Finance Director Paul Salvatore said the city has saved $230,000 by delaying the capital improvement financing plan from last year’s budget to this year’s budget. Also, the city’s first payment won’t be due until March, presenting another cost savings.
The capital improvement loan calls for the city to make quarterly payments on the note totaling $230,052 a year.
The equipment lease calls for quarterly payments over a five-year term with annual payments totaling $218,824.