East Grand Forks outlines capital equipment fund use and considers township cost‑share for next fire engine

Carla Anderson, staff member (finance), and Fire Chief Jeff Bushey briefed the East Grand Forks City Council on the city’s Central Equipment Fund and a township proposal to jointly buy future fire engines.

Anderson said the Central Equipment Fund (Fund 703) is an internal service fund the city uses to finance large equipment purchases and to cover a benefit accrual fund for accumulated sick leave. She described the city practice of “financing ourselves”: departments budget payments into Fund 703 and then repay equipment costs over a nine‑year amortization schedule at a 3% internal charge. “We pay it back in 9 years,” Anderson said, noting capital purchases since 2012 — a 2012 ladder (about $625,000) and a $250,000 garbage truck — and more recent buys such as a motor grader and a garbage truck in 2024.

The fund plan includes several anticipated items through 2029 and lists a placeholder for a fire engine in 2027. Anderson said the estimated total cost for the planned fire engine is approximately $750,000 and that township contributions, if secured, would be recorded and used from Fund 703 to purchase the engine.

Chief Jeff Bushey described a replacement schedule for the department’s three engines and presented a joint‑purchase request from seven townships that the department serves. Bushey said the townships asked the city to consider a continuing 60% (city) / 40% (townships) ownership split on future replacements so the shares are uniform and easier to track. He said the townships plan to place an order in 2027 to replace engine 409 (due by 02/1930 under the department schedule) and would like the city to “buy in” at 60% for that engine; they also proposed matching splits on the other engines when replaced.

Bushey recommended the council approve the proposal and authorize staff to develop a memorandum of understanding (MOU) with the townships. He noted potential budgetary impact: under a 60% city share the city’s 2027 placeholder payment would be roughly $450,000 (60% of the $750,000 estimate). Bushey also said joint purchasing can reduce long‑term costs by mitigating inflation effects.

No formal council action to approve a purchase or an MOU was taken at the work session; Bushey said the council will vote next week on the proposed cost share and replacement plan and asked staff to draft the MOU between the city and the townships.

The presentation also reviewed how Fund 703 has been used for public works, parks and recreation, and stormwater interfund purchases, and how department budgets feed annual fund repayments.

Looking ahead, staff said the council will receive the MOU and the replacement plan for formal consideration at a future meeting; the townships plan to place their order in 2027 regardless of the city’s final vote.