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Paris fire chief outlines $3.6M apparatus plan; staff and Samco recommend tax notes as a financing option
Summary
The fire chief presented an apparatus replacement plan that includes a $2.2 million ladder truck already ordered and additional pumpers, a brush truck and command vehicle. Staff and Samco Capital discussed financing with seven-year tax notes and estimated interest rates around 4% to 4.5%.
ParisFire Chief presented the city's apparatus-replacement plan on May 12, reporting an aging fleet, rising maintenance costs and multi-year delivery timelines for custom-built vehicles.
The chief said the department's aerial device is a 1996 model and that the department ordered a replacement in September 2023 that will be delivered in April 2026; the delivery price payable on delivery is about $2.2 million. The chief reported escalating maintenance bills, noting the department spent $125,000 on apparatus maintenance last year and had already spent $55,000 so far this year.
Planned purchases and pricing
- Ladder/aerial device (replacement for 1996 truck): total cost due on delivery just over $2,200,000 (delivery April 2026 for the truck already on order). The chief said prepaying the order now would save roughly $57,493 on that purchase.
- Next round of vehicles: a new pumper (to replace a 2011 pumper), a brush truck (to replace a 1997 brush truck) and a command vehicle. Initial quoted price for these three vehicles was $1,618,213; a bulk-purchase discount lowered that to $1,599,759. Staff said prepaying the quote (before the seller's deadline) would reduce the total for the three vehicles to about $1,514,301.
- Combined program cost: staff estimated the total for the ordered aerial device and the next-round vehicles would be roughly $3.6 million, with issuance costs possibly pushing the program toward $3.7M$3.8M.
Delivery schedules and warranty
Custom apparatus have lead times: pumpers and major apparatus typically require 34 to 36 months from the order date, brush trucks 18 to 24 months and command vehicles 8 to 12 months. The chief said warranties are typically limited (one to two years depending on the unit).
Financing discussion
City staff and Ryan Cunningham of Samco Capital Markets briefed council on tax notes as a likely financing vehicle. Staff explained that Texas tax notes have a seven-year maximum term by law and that the city previously used tax notes in 2020. Cunningham estimated market borrowing costs at roughly 4% (cushioned toward 4.5% for prudence) and said the citywould likely see competitive bids; he added that tax-note repayment would be pledged to the city's ad valorem tax and that the city's credit rating supports relatively low borrowing costs.
Officials' comments and next steps
Finance and city staff said they had set aside $1.5 million as a reserve toward the aerial device but that officials preferred using tax notes to preserve reserves. Staff recommended presenting a reimbursement resolution and formal authorization for notes at a future meeting so the city can reimburse itself if it uses internal funds before notes are sold.
Council did not authorize debt at the May 12 meeting but asked staff to present formal documents and options in a future meeting. Samco said, if the council decides to proceed, the city could expect funds in about six weeks from authorization and a likely closing in July.
