PUBLIC SECTOR FINANCING SOLUTIONS
City of Barstow, California Fire Apparatus
Acquisition Project Proposal, 2025
Prepared by:
James Lott
Holman Capital Corporation
25231 Paseo De Alicia
Laguna Hills, CA 92653
[email protected]
949-880-4062
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
Thursday, May 15, 2025
Sydnie Harris
Finance Director
City of Barstow
220 E. Mountain Avenue
Barstow, CA 92311
VIA E-MAIL
RE: Proposal for Lease Purchase Financing
Ms. Harris:
Holman Capital Corporation (“HCC”) is pleased to present to the City of Barstow its proposal for equipment financing. The terms and conditions of our proposal are outlined as below:
LESSEE: City of Barstow, Lessee is a state or political subdivision within the meaning of Section 103(c) of
the Internal Revenue Code of 1986, as amended (the
“Code”).
LESSOR: Holman Capital Corporation, or its Assignee
GUIDANCE LINE OF CREDIT: The Lessor will endeavor to provide a $4,400,000.00 Guidance Line of Credit to fund future transactions.
The Guidance Line of Credit will have a twelve (12)
month renewal period. Each drawdown is subject to
collateral review and final legal approval. The interest rate will be set at the time of funding and remain
fixed for the term of the financing.
Option Assets Financing Amount Interest Rate
Payments
Per Year Term
Semi-Annual
Payments Total Payments
A Type 1 Fire Truck $ 1,119,983.96 6.24% 2 20 $49,397.53 $1,975,901.20 B Type 1 Fire Truck; Ladder Truck $ 3,819,983.96 6.24% 2 20 $168,482.58 $6,739,303.20 C Type 1 Fire Truck; Brush Truck; Ladder Truck $ 4,400,000.00 6.24% 2 20 $194,064.52 $7,762,580.80
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
TYPE OF FINANCING: Master Lease Purchase Agreement Dated October 28, 2020. Said Agreement shall be a net lease
arrangement whereby Lessee is responsible for all
costs of operation, maintenance, insurance, and
taxes. The Agreement shall be based on the annual
appropriation of funds. Each funding under the
Master Lease Purchase Agreement will have a
Payment Schedule, Financing Amount, Market
Interest Rate and Related Exhibits.
BANK QUALIFICATION: The financing will be Bank Qualified (Small Issuer).
The Borrower expects to issue less than
$10,000,000.00 in new tax-exempt debt or capital
leases in the current calendar year.
PURCHASE OPTION: The purchase option can be exercised on any scheduled payment date.
The current payment and purchase option are due
should the Lessee decide to exercise the option.
ESCROW FUNDING: HCC has assumed funding of an escrow account for this transaction on or about May 29, 2025. The
Equipment Acquisition Fund will be used to pay
equipment vendors/contractors and any escrow
expenses.
Escrow Agent will be selected by Lessee subject to
HCC’s credit approval. HCC to review and approve
escrow disbursements prior to Escrow Agent
disbursing of funds. It is assumed that all interest
earnings will accrue for benefit of Lessee. This
proposal also does not take into consideration the
application of any interest earnings from the escrow
fund of the account.
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
ESCROW DISBURSEMENTS: HCC will request the following information from the Lessee to authorize disbursement of funds to
vendors and or the Lessee from the escrow account:
• Executed Disbursement Request Form
• Executed Acceptance Certificate
• Copies of Vendor Invoices;
• Proof of Payment (required if Lessee is
requesting a reimbursement)
• Proof of Insurance (both Liability and Property
and Casualty Coverage)
• For vehicles, a copy of the Title Application listing Holman Capital Corporation, or its assignee as a
lien holder; and
• For vehicles, a copy of the MSO or
Manufacturer’s Statement of Origin.
REIMBURSEMENT: If Lessee intends to be reimbursed for any equipment cost associated with this Agreement,
intent for reimbursement from the proceeds of this
Agreement must be evidenced and must qualify
under the Treasury Regulation Section 1.150.2.
INSURANCE: The Lessee shall furnish confirmation of all risk physical damage insurance coverage for the full cost
of the property plus one million ($1,000,000.00)
dollars combined single limit property damage and
bodily injury insurance covering the property. HCC
shall be named as loss payee and additional insured
on such coverage.
AUTHORIZED SIGNORS: The Lessee’s governing board shall provide HCC with its resolution or ordinance authorizing this
Agreement and shall designate the individual(s) to
execute all necessary documents used therein.
LEGAL OPINION: The Lessee’s counsel shall furnish HCC with an opinion covering this transaction and the documents
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
used herein. This opinion shall be in a form and
substance satisfactory to HCC.
LEGAL TITLE: Title to the equipment will be in the name of Lessee.
Lessor will be granted a security interest or lien on
all collateral being financed.
DOCUMENTATION: Utilize standard HCC lease agreement that will cover all facets of the transaction. A copy of the sample
master lease agreement will be forwarded to the
Lessee upon acceptance of the proposal. The Lessee
will be responsible for a $5,000.00 documentation
fee, which can be taken from lease proceeds or paid
at closing.
RATE LOCK EXPIRATION: If funding does not take place by June 6, 2025, the Lease Rate and Lease Payment Amounts will be
adjusted to market conditions three (3) days prior to
funding. Once set, the Lease Rate will remain fixed
for the Lease Term.
FINANCIAL STATEMENTS: Lessee shall provide to Lessor three (3) years of current financial statements, budgets,
demographics, and proof of appropriation for the
ensuing Fiscal Year and such other financial
information relating to the ability of Lessee to
continue this Agreement as may be reasonably
requested by Lessor.
This proposal is subject to final credit approval by
the Credit/Investment Committee of Holman Capital
Corporation and approval of the lease documents in
Holman Capital Corporation’s sole discretion. To
render a credit decision, Lessee shall provide HCC
with the information requested above. Upon receipt
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
of the signed proposal, we will endeavor to provide
you with a timely commitment.
It is a pleasure to offer this proposal to you and we look forward to your favorable acknowledgment.
Sincerely,
James Lott
Director, Public Sector Finance Group
AGREED TO AND ACCEPTED BY:
Name: ________________________________________
Title:__________________________________________
Date: _________________________________________
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
LESSEE: CITY OF BARSTOW, CA
LESSOR: HOLMAN CAPITAL CORPORATION
COMMENCEMENT: 2-Jun-2025
TERM: 20 YEARS
1ST PAYMENT DUE: 2-Dec-2025
RATE: 6.24%
PAYMENT NO. DATE PAYMENT
INTEREST
COMPONENT
PRINCIPAL
COMPONENT
PURCHASE
OPTION
0 6/2/2025
1 12/2/2025 $ 49,397.53 $ 34,943.50 $ 14,454.03 $ 1,171,861.73 2 6/2/2026 $ 49,397.53 $ 34,492.53 $ 14,905.00 $ 1,156,062.43 3 12/2/2026 $ 49,397.53 $ 34,027.50 $ 15,370.03 $ 1,139,770.19 4 6/2/2027 $ 49,397.53 $ 33,547.95 $ 15,849.58 $ 1,122,969.64 5 12/2/2027 $ 49,397.53 $ 33,053.45 $ 16,344.08 $ 1,105,644.91 6 6/2/2028 $ 49,397.53 $ 32,543.51 $ 16,854.02 $ 1,087,779.65 7 12/2/2028 $ 49,397.53 $ 32,017.67 $ 17,379.86 $ 1,069,357.00 8 6/2/2029 $ 49,397.53 $ 31,475.41 $ 17,922.12 $ 1,050,359.55 9 12/2/2029 $ 49,397.53 $ 30,916.24 $ 18,481.29 $ 1,030,769.39 10 6/2/2030 $ 49,397.53 $ 30,339.63 $ 19,057.90 $ 1,010,568.01 11 12/2/2030 $ 49,397.53 $ 29,745.02 $ 19,652.51 $ 989,736.35 12 6/2/2031 $ 49,397.53 $ 29,131.86 $ 20,265.67 $ 968,254.74 13 12/2/2031 $ 49,397.53 $ 28,499.57 $ 20,897.96 $ 946,102.90 14 6/2/2032 $ 49,397.53 $ 27,847.56 $ 21,549.97 $ 923,259.94 15 12/2/2032 $ 49,397.53 $ 27,175.20 $ 22,222.33 $ 899,704.27 16 6/2/2033 $ 49,397.53 $ 26,481.86 $ 22,915.67 $ 875,413.66 17 12/2/2033 $ 49,397.53 $ 25,766.89 $ 23,630.64 $ 850,365.18 18 6/2/2034 $ 49,397.53 $ 25,029.62 $ 24,367.91 $ 824,535.19 19 12/2/2034 $ 49,397.53 $ 24,269.34 $ 25,128.19 $ 797,899.31 20 6/2/2035 $ 49,397.53 $ 23,485.34 $ 25,912.19 $ 770,432.39 21 12/2/2035 $ 49,397.53 $ 22,676.88 $ 26,720.65 $ 742,108.50 22 6/2/2036 $ 49,397.53 $ 21,843.19 $ 27,554.34 $ 712,900.90 23 12/2/2036 $ 49,397.53 $ 20,983.50 $ 28,414.03 $ 682,782.03 24 6/2/2037 $ 49,397.53 $ 20,096.98 $ 29,300.55 $ 651,723.45 25 12/2/2037 $ 49,397.53 $ 19,182.80 $ 30,214.73 $ 619,695.83 26 6/2/2038 $ 49,397.53 $ 18,240.10 $ 31,157.43 $ 586,668.96 27 12/2/2038 $ 49,397.53 $ 17,267.99 $ 32,129.54 $ 552,611.64 28 6/2/2039 $ 49,397.53 $ 16,265.55 $ 33,131.98 $ 517,491.75 29 12/2/2039 $ 49,397.53 $ 15,231.83 $ 34,165.70 $ 481,276.10 30 6/2/2040 $ 49,397.53 $ 14,165.86 $ 35,231.67 $ 443,930.53 31 12/2/2040 $ 49,397.53 $ 13,066.63 $ 36,330.90 $ 405,419.78 32 6/2/2041 $ 49,397.53 $ 11,933.11 $ 37,464.42 $ 365,707.49 33 12/2/2041 $ 49,397.53 $ 10,764.22 $ 38,633.31 $ 324,756.19 34 6/2/2042 $ 49,397.53 $ 9,558.86 $ 39,838.67 $ 282,527.20 35 12/2/2042 $ 49,397.53 $ 8,315.89 $ 41,081.64 $ 238,980.66 36 6/2/2043 $ 49,397.53 $ 7,034.15 $ 42,363.38 $ 194,075.47 37 12/2/2043 $ 49,397.53 $ 5,712.41 $ 43,685.12 $ 147,769.25 38 6/2/2044 $ 49,397.53 $ 4,349.43 $ 45,048.10 $ 100,018.26 39 12/2/2044 $ 49,397.53 $ 2,943.93 $ 46,453.60 $ 50,777.45 40 6/2/2045 $ 49,397.53 $ 1,494.28 $ 47,903.25 $ -
Grand Totals $ 1,975,901.20 $ 855,917.24 $ 1,119,983.96 $ - 20 YEARS
SEMI-ANNUAL PAYMENTS IN ARREARS
OPTION A
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
LESSEE: CITY OF BARSTOW, CA
LESSOR: HOLMAN CAPITAL CORPORATION
COMMENCEMENT: 2-Jun-2025
TERM: 20 YEARS
1ST PAYMENT DUE: 2-Dec-2025
RATE: 6.24%
PAYMENT NO. DATE PAYMENT
INTEREST
COMPONENT
PRINCIPAL
COMPONENT
PURCHASE
OPTION
0 6/2/2025
1 12/2/2025 $ 168,482.58 $ 119,183.50 $ 49,299.08 $ 3,996,925.97 2 6/2/2026 $ 168,482.58 $ 117,645.37 $ 50,837.21 $ 3,943,038.53 3 12/2/2026 $ 168,482.58 $ 116,059.25 $ 52,423.33 $ 3,887,469.80 4 6/2/2027 $ 168,482.58 $ 114,423.64 $ 54,058.94 $ 3,830,167.32 5 12/2/2027 $ 168,482.58 $ 112,737.00 $ 55,745.58 $ 3,771,077.01 6 6/2/2028 $ 168,482.58 $ 110,997.74 $ 57,484.84 $ 3,710,143.08 7 12/2/2028 $ 168,482.58 $ 109,204.21 $ 59,278.37 $ 3,647,308.01 8 6/2/2029 $ 168,482.58 $ 107,354.73 $ 61,127.85 $ 3,582,512.49 9 12/2/2029 $ 168,482.58 $ 105,447.54 $ 63,035.04 $ 3,515,695.34 10 6/2/2030 $ 168,482.58 $ 103,480.84 $ 65,001.74 $ 3,446,793.50 11 12/2/2030 $ 168,482.58 $ 101,452.79 $ 67,029.79 $ 3,375,741.92 12 6/2/2031 $ 168,482.58 $ 99,361.46 $ 69,121.12 $ 3,302,473.53 13 12/2/2031 $ 168,482.58 $ 97,204.88 $ 71,277.70 $ 3,226,919.17 14 6/2/2032 $ 168,482.58 $ 94,981.02 $ 73,501.56 $ 3,149,007.52 15 12/2/2032 $ 168,482.58 $ 92,687.77 $ 75,794.81 $ 3,068,665.02 16 6/2/2033 $ 168,482.58 $ 90,322.97 $ 78,159.61 $ 2,985,815.83 17 12/2/2033 $ 168,482.58 $ 87,884.39 $ 80,598.19 $ 2,900,381.75 18 6/2/2034 $ 168,482.58 $ 85,369.73 $ 83,112.85 $ 2,812,282.13 19 12/2/2034 $ 168,482.58 $ 82,776.61 $ 85,705.97 $ 2,721,433.80 20 6/2/2035 $ 168,482.58 $ 80,102.58 $ 88,380.00 $ 2,627,751.00 21 12/2/2035 $ 168,482.58 $ 77,345.12 $ 91,137.46 $ 2,531,145.30 22 6/2/2036 $ 168,482.58 $ 74,501.64 $ 93,980.94 $ 2,431,525.50 23 12/2/2036 $ 168,482.58 $ 71,569.43 $ 96,913.15 $ 2,328,797.56 24 6/2/2037 $ 168,482.58 $ 68,545.74 $ 99,936.84 $ 2,222,864.51 25 12/2/2037 $ 168,482.58 $ 65,427.71 $ 103,054.87 $ 2,113,626.35 26 6/2/2038 $ 168,482.58 $ 62,212.40 $ 106,270.18 $ 2,000,979.96 27 12/2/2038 $ 168,482.58 $ 58,896.77 $ 109,585.81 $ 1,884,819.00 28 6/2/2039 $ 168,482.58 $ 55,477.69 $ 113,004.89 $ 1,765,033.81 29 12/2/2039 $ 168,482.58 $ 51,951.94 $ 116,530.64 $ 1,641,511.34 30 6/2/2040 $ 168,482.58 $ 48,316.18 $ 120,166.40 $ 1,514,134.95 31 12/2/2040 $ 168,482.58 $ 44,566.99 $ 123,915.59 $ 1,382,784.43 32 6/2/2041 $ 168,482.58 $ 40,700.82 $ 127,781.76 $ 1,247,335.76 33 12/2/2041 $ 168,482.58 $ 36,714.03 $ 131,768.55 $ 1,107,661.10 34 6/2/2042 $ 168,482.58 $ 32,602.85 $ 135,879.73 $ 963,628.58 35 12/2/2042 $ 168,482.58 $ 28,363.41 $ 140,119.17 $ 815,102.26 36 6/2/2043 $ 168,482.58 $ 23,991.69 $ 144,490.89 $ 661,941.92 37 12/2/2043 $ 168,482.58 $ 19,483.57 $ 148,999.01 $ 504,002.97 38 6/2/2044 $ 168,482.58 $ 14,834.80 $ 153,647.78 $ 341,136.32 39 12/2/2044 $ 168,482.58 $ 10,040.99 $ 158,441.59 $ 173,188.24 40 6/2/2045 $ 168,482.58 $ 5,097.45 $ 163,385.13 $ -
Grand Totals $ 6,739,303.20 $ 2,919,319.24 $ 3,819,983.96 $ - 20 YEARS
SEMI-ANNUAL PAYMENTS IN ARREARS
OPTION B
HOLMAN CAPITAL CORPORATION
LEASE PURCHASE FINANCING PROPOSAL
LESSEE: CITY OF BARSTOW, CA
LESSOR: HOLMAN CAPITAL CORPORATION
COMMENCEMENT: 2-Jun-2025
TERM: 20 YEARS
1ST PAYMENT DUE: 2-Dec-2025
RATE: 6.24%
PAYMENT NO. DATE PAYMENT
INTEREST
COMPONENT
PRINCIPAL
COMPONENT
PURCHASE
OPTION
0 6/2/2025
1 12/2/2025 $ 194,064.52 $ 137,280.00 $ 56,784.52 $ 4,603,808.41 2 6/2/2026 $ 194,064.52 $ 135,508.32 $ 58,556.20 $ 4,541,738.84 3 12/2/2026 $ 194,064.52 $ 133,681.37 $ 60,383.15 $ 4,477,732.70 4 6/2/2027 $ 194,064.52 $ 131,797.42 $ 62,267.10 $ 4,411,729.57 5 12/2/2027 $ 194,064.52 $ 129,854.68 $ 64,209.84 $ 4,343,667.14 6 6/2/2028 $ 194,064.52 $ 127,851.33 $ 66,213.19 $ 4,273,481.16 7 12/2/2028 $ 194,064.52 $ 125,785.48 $ 68,279.04 $ 4,201,105.38 8 6/2/2029 $ 194,064.52 $ 123,655.18 $ 70,409.34 $ 4,126,471.48 9 12/2/2029 $ 194,064.52 $ 121,458.41 $ 72,606.11 $ 4,049,509.00 10 6/2/2030 $ 194,064.52 $ 119,193.10 $ 74,871.42 $ 3,970,145.30 11 12/2/2030 $ 194,064.52 $ 116,857.11 $ 77,207.41 $ 3,888,305.44 12 6/2/2031 $ 194,064.52 $ 114,448.24 $ 79,616.28 $ 3,803,912.18 13 12/2/2031 $ 194,064.52 $ 111,964.21 $ 82,100.31 $ 3,716,885.86 14 6/2/2032 $ 194,064.52 $ 109,402.68 $ 84,661.84 $ 3,627,144.31 15 12/2/2032 $ 194,064.52 $ 106,761.23 $ 87,303.29 $ 3,534,602.82 16 6/2/2033 $ 194,064.52 $ 104,037.37 $ 90,027.15 $ 3,439,174.04 17 12/2/2033 $ 194,064.52 $ 101,228.52 $ 92,836.00 $ 3,340,767.88 18 6/2/2034 $ 194,064.52 $ 98,332.04 $ 95,732.48 $ 3,239,291.45 19 12/2/2034 $ 194,064.52 $ 95,345.18 $ 98,719.34 $ 3,134,648.95 20 6/2/2035 $ 194,064.52 $ 92,265.14 $ 101,799.38 $ 3,026,741.61 21 12/2/2035 $ 194,064.52 $ 89,089.00 $ 104,975.52 $ 2,915,467.56 22 6/2/2036 $ 194,064.52 $ 85,813.76 $ 108,250.76 $ 2,800,721.75 23 12/2/2036 $ 194,064.52 $ 82,436.34 $ 111,628.18 $ 2,682,395.88 24 6/2/2037 $ 194,064.52 $ 78,953.54 $ 115,110.98 $ 2,560,378.24 25 12/2/2037 $ 194,064.52 $ 75,362.08 $ 118,702.44 $ 2,434,553.65 26 6/2/2038 $ 194,064.52 $ 71,658.56 $ 122,405.96 $ 2,304,803.34 27 12/2/2038 $ 194,064.52 $ 67,839.49 $ 126,225.03 $ 2,171,004.80 28 6/2/2039 $ 194,064.52 $ 63,901.27 $ 130,163.25 $ 2,033,031.76 29 12/2/2039 $ 194,064.52 $ 59,840.18 $ 134,224.34 $ 1,890,753.96 30 6/2/2040 $ 194,064.52 $ 55,652.38 $ 138,412.14 $ 1,744,037.09 31 12/2/2040 $ 194,064.52 $ 51,333.92 $ 142,730.60 $ 1,592,742.65 32 6/2/2041 $ 194,064.52 $ 46,880.73 $ 147,183.79 $ 1,436,727.84 33 12/2/2041 $ 194,064.52 $ 42,288.59 $ 151,775.93 $ 1,275,845.35 34 6/2/2042 $ 194,064.52 $ 37,553.18 $ 156,511.34 $ 1,109,943.33 35 12/2/2042 $ 194,064.52 $ 32,670.03 $ 161,394.49 $ 938,865.17 36 6/2/2043 $ 194,064.52 $ 27,634.52 $ 166,430.00 $ 762,449.37 37 12/2/2043 $ 194,064.52 $ 22,441.91 $ 171,622.61 $ 580,529.41 38 6/2/2044 $ 194,064.52 $ 17,087.28 $ 176,977.24 $ 392,933.53 39 12/2/2044 $ 194,064.52 $ 11,565.59 $ 182,498.93 $ 199,484.66 40 6/2/2045 $ 194,064.52 $ 5,871.44 $ 188,193.08 $ -
Grand Totals $ 7,762,580.80 $ 3,362,580.80 $ 4,400,000.00 $ - 20 YEARS
SEMI-ANNUAL PAYMENTS IN ARREARS
OPTION C