Committee weighs financing options as Heritage Fire Company ladder truck nears delivery

Committee members reviewed financing options for a ladder truck ordered by Heritage Fire Company and discussed next steps to secure funds before vehicle delivery at the end of the month.

Staff reported the lowest financing quote appeared to come from a leasing company that works directly with the truck manufacturer. The estimated loan amount was described as slightly less than $1.7 million. One proposal discussed in committee would place $300,000 down toward the purchase (to be funded from buyer specialty tax proceeds), structure a 10-year loan at 4.99% and result in annual payments in the neighborhood of $178,000. Committee members said the volunteer fire company does not have the means to make the payments and discussed the borough taking title to the apparatus and making payments on Heritage’s behalf.

Members noted procedural and procurement questions, including whether borough purchase of an apparatus originally procured by the volunteer company would require solicitation or debt proceedings. The solicitor recommended contacting the borough’s bond counsel to determine whether debt-authority proceedings (for example, borrowing through DCED procedures) or alternative procurement paths are required; staff agreed to reach out to bond counsel immediately. Committee members also discussed parallel efforts: Heritage is pursuing a state loan option at about 2% that could be used later to reduce the borough’s principal, and the borough has identified about $27,500 from a sale of apparatus that could be applied toward the down payment once title is available.

Staff also flagged county Community Development Block Grant funds of roughly $120,000 that the county indicated could be used toward apparatus payments; staff will contact county staff to pursue that possibility. Delivery timing was described as tight: the truck was expected at the end of the month and payment was reported due on delivery (within a short window after arrival). The committee gave staff direction to consult bond counsel, confirm procurement rules and return with recommended borrowing steps and a timeline for council consideration. No final financing commitment was recorded in committee; the council-level authorization and any borrowing steps will be considered at upcoming meetings.