City staff outline fire‑truck purchase schedule; reimbursement timing may affect debt service

Staff updated the council on the city’s fire‑truck procurement and the related budget implications. Finance Director Adam Thompson and staff said the purchase price for the truck was presented as about $949,967 total; the city is set to receive $800,000 in state appropriation but staff explained that reimbursement timing is dependent on delivery and invoicing rules. Thompson described current cash‑flow planning: the city has committed an initial $200,000 payment and expects additional annual payments while the truck is built. Staff reported a projected manufacturer lead time of 34–36 months from purchase order signature and that the city had financed the vehicle on a 5‑year schedule in prior planning, producing a projected annual payment estimate (cited at approximately $118,304.83 over five years in the workshop discussion). Council asked whether there is a prepayment or payoff penalty if the city receives the appropriation and can retire the financing early. Thompson said he would confirm whether early payoff is allowed without penalty and calculate interest savings versus leaving the financing in place. The council directed staff to return with a clear payoff table and interest‑savings estimate to inform whether using reimbursement proceeds to avoid future interest expense is the best fiscal path.