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515 Little Canada (612) 484 TO: Road, Little Canada, MN 55117 -1600 -2177 / FAX: (612) 484 -4538 MEMORANDUM Mayor Hanson & Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 14, 1992 RE: Final Payment for Fire Truck Purchase MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson The purpose of this memorandum is to finalize the concepts governing the disbursement of $125,000 to the Fire Department to assist with the final payment for the purchase of the aerial ladder truck. This information is based on the discussions which occurred at the workshop with the Fire Department held on October 7, 1992. The financial background of this transaction is as follows: Source of Payment Purchase price: $374,936.00 Chassis payment: 109,057.55 F.D. Charitable Gambling Aerial payment: 87,914.00 F.D. Charitable Gambling Balance due: $177,964.45 less 52,964.45 F.D. Charitable Gambling Payment by City: 125,000.00 City's F.D. Bldg. Fund The first discussion regarding the purchase of a new fire truck was held on December 5, 1990. The Chief reported that there was preliminary planning for the purchase of this truck and that it was hoped that the Department would be able to fund this purchase with charitable gambling proceeds. The truck was ordered a few months later and it was anticipated that charitable gambling funds as well as proceeds from the sale of the 1970 pumper would fully fund the purchase price of this new truck. Since that time, the environment for charitable gambling has worsened and fewer dollars were raised than planned. Also, the sale of the 1970 pumper will not be at the initial amount estimated. To take delivery of the truck, the Fire Department had to make payment in full. To do so, three options were available. They are as follows: Page 3