Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />OCTOBER 14~ 1992 <br />City to provide the $125,000 from the excess Fire <br />Station building funds. <br />The Administrator reported that the new fire station <br />was financed with a$1.5 million bond issue as well as <br />$325,000 in charitable donations. It is bond counsel's <br />opinion that because of the donations, the excess <br />donated funds could be used to pay the remaining <br />balance on the fire truck. In doing so, the Fire <br />Department would repay the $125,000 with proceeds from <br />the sale of the 1970 truck as well as with 90% of their <br />future charitable gambling revenue. These funds would <br />be placed in a Fire Department Capital Equipment Fund <br />for future equipment purchases. <br />The City Administrator felt the proposal made a lot of <br />sense and benefitted the taxpayers of Little Canada, <br />pointing out that better use of money is being made, <br />interest payments are being saved, and a fund is being <br />established for future Fire Department capital <br />purchases. Another condition of the transaction would <br />be that a policy would be set up for planning of future <br />purchases. This policy would also determine when and <br />how such purchases would be made and financed, and <br />procedures established for making the purchase. The <br />City Council would be more involved in the process, and <br />there would be better communication and documentation. <br />Hanson agreed that the procedure on future acquisitions <br />would give the Council greater knowledge on why these <br />purchases are needed, what is being replaced, and <br />establish a replacement policy based on age-cycle of <br />the vehicles. <br />Blesener pointed out that the 1970 pumper being sold is <br />22 years old. The Fire Department has indicated that <br />vehicles in the 20 year old range are still viable <br />pieces of equipment for smaller cities, therefore, <br />still marketable. <br />The City Administrator noted that the Fire Department <br />has raised almost $250,000 towards the purchase of the <br />new fire truck through charitable gambling. This is a <br />significant amount of money that was saved the <br />taxpayers of Little Canada. <br />Blesener indicated that, in essence, the City is <br />getting a$375,000 fire truck for $125,000, and pointed <br />out that the $125,000 will be paid back to the City by <br />the Fire Department and set aside for future Fire <br />Department capital improvement purchases. <br />Page 7 <br />