02-23-94 Council Workshop Minutes

Home Browse Search

MINU4'ES CITY COUNCIL FEBRUARY 23, 1993 The Administrator reported that the fire truck committee has explored the options and asked the tough questions. The question now is whether there is consensus on the part of the Council to purchase a new fire truck. If there is, the Administrator was confident that the financinq could be worked out. The Administrator reported that the City has not received a repayment on the fire truck loan since last July, and he anticipated a large payment coming in. Morelan agreed that the piece of equipment proposed to be replaced needs replacement. Morelan pointed out that the cost of replacement will only increase if the purchase is delayed a year or two. Morelan suggested that the City look at alternate funding sources in the event the $70,000 is not repaid by the Fire Department in the near future. Hanson pointed out the possibility of a cost savings on the new truck purchase if a large down payment is made. The Administrator agreed that that may be an investment option, however, the truck will have to be put out for bid to determine if this is in fact a reality. Morelan pointed out that the City always has the ability to increase the levy to cover the cost of the truck, or the capital improvement funding priorities can be adjusted. Scalze was not in favor of increasing the levy, and pointed out that adjusting CIP priorities in favor of the truck delays other areas. The Administrator reported that his recommendation would not be to increase the levy feeling that such an increase was unnecessary. However, whatever decision is made may affect other programs. Hanson asked if there were any bond refinancing savings that could be realized. The Administrator was not aware of any further debt service savings the City could make. Morelan suggested that by December the City will know how much of the $70,000 is still outstanding. 5