Napoleon Council directs drafting of financing legislation, addendum for fire truck purchase

The Napoleon City Council directed the law director to draft financing legislation and an addendum to intergovernmental fire contracts to move forward on purchasing a new fire truck.

Council and staff discussed financing options, township contributions and down-payment levels during an extended item on the agenda. A staff presentation noted two signed township addenda and a verbal commitment from the third township expected at its next meeting. “So the only thing we would be financing would be the 650,000 or if we decided to do a budget adjustment out of the 242 capital equipment account, then it would be 550,000,” a staff member said, describing two financing scenarios discussed with townships.

The finance-related discussion named Squire Patton Boggs as the bond counsel the city intends to use and referenced private placement versus leasing options. According to the transcript, private placement could shorten the maximum term to 10 years but yield a lower interest rate, while leasing might allow a longer term; staff estimated issuance-related costs “up towards $30,000” and noted a potential interest-rate movement near June 1. Councilmembers discussed increasing an initial down payment from $250,000 to $350,000 to reduce borrowing. The law director indicated an addendum to lock in township contributions had been drafted and circulated.

Two separate motions were made and passed: one directing the law director to draft financing legislation in conjunction with Squire Patton Boggs and the finance director’s recommendations, and a second directing the law director to draft the addendum to the fire contracts. Roll-call votes showed “yes” votes from Councilmembers Britney; Ross; Ken; Bobby; Jordan; Tom; and Doctor Dave on each direction. No formal purchase ordinance or final financing agreement was approved at the meeting; the action was to draft the necessary legislation and contract addendum for future council action.