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Mayor & City Council <br />October 14, 1992 <br />Page 3 <br />was anticipated that there would have been at least a three <br />to four percent spread between the rates the City can earn <br />on its investments and that payable to the private lending <br />institution. Another major benefit of this option is that <br />these funds will be returned to the City to help with <br />future capital purchases for Fire Department equipment. <br />Perhaps more importantly, a process will be established for <br />the planning, financing, and purchasing of future capital <br />expenditures. This aspect of the proposal helps ensure <br />greater accountability for the expenditure of public funds <br />as well as establishing better communications between the <br />Fire Department and the City. <br />It should also be noted that one could take a negative view <br />of this transaction because the City is contributing <br />$125,000 towards the purchase of this new truck. I would <br />propose that a more positive view will be taken in that the <br />residents of Little Canada are receiving a $375,000 truck <br />for a $125,000 expenditure. Furthermore, with the <br />repayment of these funds and the planning process that will <br />be established, future costs to the taxpayer have also been <br />reduced. <br />The Mayor and I will be meeting with representatives of the <br />Fire Department to finalize the policies governing the <br />planning and purchasing process to be used for future <br />capital acquisitions. These policies will be presented to <br />the full Council for approval at a latter date. <br />JRH:kpv <br />cc: Frank Graczyk, Fire Chief <br />Page 5 <br />