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Georgetown approves ladder truck purchase and 7-year lease-purchase financing
Summary
The City approved a budgeted purchase of a new ladder truck from Atlantic Emergency Solutions and a related 7-year lease-purchase agreement with PNC; counsel said the arrangement is a tax-exempt governmental lease treated as an annually renewable lease that will not count against the city’s statutory debt capacity.
The Georgetown City Council voted Sept. 22 to authorize purchase of a new ladder truck from Atlantic Emergency Solutions and to approve a related lease-purchase financing agreement with PNC.
Fire department staff told council the truck is budgeted for the fiscal year and recommended the purchase after on-site inspections of manufacturer facilities. The chief said the new truck is similar to the city’s current truck and will replace aging apparatus. Council was also invited to FDIC 2026 where the truck will be showcased.
City bond counsel Mark Franklin explained the financing as a governmental lease-purchase: tax-exempt, treated as an annual renewable lease and therefore not counted against the city’s debt capacity, although annual lease payments must be included in the budget. Staff said the city budgeted for monthly lease payments ($400,000 was the budget line referenced) and that financing terms include a seven-year schedule (84 monthly payments) with an initial no-call period likely around the first year; council was told the rate was competitive compared with other municipal leases.
Council approved the municipal order to purchase the truck and the related financing by separate voice votes. Motion language was made on the record (purchase motion moved by Miss Mitchell; second by Miss Brent) and the lease agreement motion was moved by Miss Hamrick and seconded by Mister Minky, both recorded as passed.
Staff said the financing structure permits early payoff subject to no-call terms in the documents and that closing opinions and documentation would be handled by counsel. The city will include the required annual lease payment in upcoming budget cycles.
