Fuquay Varina approves financing for four new fire engines; First National Bank selected

The Fuquay Varina Town Board on March 24 approved financing to reimburse the town for four Spartan fire engines recently delivered and put into service, awarding an installment purchase agreement to First National Bank at a 4.25% interest rate.

Assistant Town Manager Mark Matthews told the board the four engines cost $3.9 million. The town recorded a state legislative appropriation of $856,000 toward the purchase and $806,648 in current-year budgeted debt service; after applying those amounts, staff said the remaining borrowing needed is $2,276,000. The borrowing will be structured over 3.5 years and paid across four fiscal years; staff estimated annual debt service near $619,000 with the first payment due Nov. 1, 2025.

Matthews said the town received 11 proposals in February with rates from 3.51% to 4.69%; staff, management and bond counsel recommended First National Bank at 4.25% despite slightly higher cost because the bank included a five-year parking agreement (22 parking spaces for town vehicles) that staff valued. Commissioner Charlie Adcock recused himself from consideration because he is employed by First National Bank; the recusal was recorded and the motion carried with the remaining members voting in favor.

The board moved to award the installment purchase agreement and authorized the finance director to execute financing documents. Staff said one debt payment was included in the current year plan to reduce future borrowing costs; the board noted the engines will be placed into service and a push-in ceremony was planned.