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MINIJ'CES <br />Ci.ty Council <br />Dec. 8, 19£32 <br />Pise $quipment <br />(Cont.) Mr. Boss reported that the Fi.re Department presently has ~36,000 <br />in i.ts truck f.und. Mr. ]3oss reported tllat the truclc f.und is not <br />even keeping pace wi.th i.nflati.on. <br />Mr. I3oss stated thaC the Pire Department has done some chec~~cing <br />into f.inancing the cost of the equipment. Tax exempt bonds would <br />have to be pa:i.d of.f in a fi.ve year peri.od. A1so one manuf.acturer <br />has i.ndi.cated that they would fi.nance [he pumper at: the current <br />i.nterest r.ate f.or a per.i.od oE 7 years. <br />~1r.. L'orsber~ aslced what the current ~i.nlerest rate would be. Mr. <br />Pahey fel.t :it would be at least 13%. 7'he Cierk commented that the <br />i.nterest rate on ~he tax exempr bonds caould be aUout 11%. <br />Mr. llanson i.ncli.caCed Chat tl~te payment on Ck~e tax exempt bonds woul<t <br />be about ~20,000 per year. <br />P4r. 3oss indi.cated t:hat the li.f.e expectancy on a pi.ece of: Li.r.e <br />equiprnent is about 20 year.s. 'Che Fire Department i.s approachi.ng 13 <br />year.s on each of iCS trucl.cs. Mr. I3oss stated t.hat the trend ~i.s now <br />tocaards renovati.ng fire equi.pment anct a ne~v pi.ece of. equipment <br />woul.<1 extend the, li.fe of the Pi.re Department', current equipmen~. <br />A9r. tioss esti.mated Che del.ivery Ci.me for the new trucic at about six <br />months. <br />nr. Porsberg aslced if the tax exempt bonds could be reissued. 'i'he <br />Cl.erk replied that Chey could not, but must be paid in f.utl. <br />C9r. Iioss i.ndi.cat:ed Chat T.he manufacturer is asking for a 7_0% docan <br />payment. <br />T4rs. Plardi.n:i. aslced the most economi.cal. caay f.or tk~e Ci.ty Co handle the <br />purchase. Mr. Pahey repl:i.ed Chat: ~i_t is hard to tell at thi, poinC <br />because Che C~i.ty cioes not know the interest rate. <br />Mrs. Scal.ze commented that Y.he audiCOr has recommended in the past <br />that tne Ci.ty nct nut money aside Lor [he equipment, but should <br />sell bonds. <br />Mr. Pahey suggested that: TQr. Aoss try to obtai_n a commi.tment i.n wr.iti.n~ <br />f.rom the manuf'acT.urer on f:inanci.ng and the terms. <br />Mrs. Scalze suggested [hat. the audi.cor be contacted about thi.s. <br />Mr. lIanson i.ndicated tktat the Coimci.l. has two weelcs before i.ts next <br />regular meeti.ng and Mr.. Iioss could get a commiCment f.rom the manufacturer <br />i.n that ti.me and the City could also J.oolc into selling bonds. <br />Page -4- <br />