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Belton council authorizes purchase of $1.68 million aerial fire apparatus, weighs bond vs. cash funding
Summary
The Belton City Council authorized purchase of a new Pierce aerial apparatus for $1,676,906.74 to replace a 2004 Quint, and discussed funding options including cash-funding from equipment reserves or adding the purchase to a February certificates-of-obligation bond issue.
Belton’s City Council on Nov. 20 authorized the purchase of a new aerial fire apparatus to replace a 2004 Quint, approving staff to move forward after a detailed presentation about capability, delivery timelines and financing options.
Fire Department staff said the proposed Pierce PUC (Pierce Ultimate Configuration) truck would increase capability with a 107-foot ladder (up from 75 feet), greater pump capacity and larger rescue compartments. “It’s a hundred and seven foot versus a 75 foot, ladder on top,” Speaker 10 said, explaining the vehicle’s features and why an order must be placed now because current build times are running 38–45 months.
Finance Director (Speaker 4) told council the truck’s purchase price is $1,676,906.74, with roughly $10,000 of ancillary costs expected for radios and insulation. Speaker 4 outlined two funding paths: cash funding from the city’s equipment replacement fund or bond financing tied to a February certificates-of-obligation (CO) issuance. He said the equipment replacement fund showed $621,000 in cash at Sept. 30, 2024, and the city plans a $545,000 contribution in 2025, leaving an estimated shortfall of about $600,000.
Speaker 4 said council could cash-fund the purchase by reallocating assigned reserves or add the truck to bonds planned for utility projects. “We could cash fund this in total,” Speaker 4 said, but noted that bonding the purchase as a 10-year CO with an estimated interest rate near 3.3% would spread costs and preserve assigned reserves. He estimated annual debt service for a $1.7 million bond at about $198,000 and total interest costs around $320,000 over the term.
Council members questioned contract terms and whether the prepayment price holds until February; Speaker 4 said the $1,676,906.74 figure was a prepayment price and indicated the vendor would hold pricing until the anticipated ordering period. Council also discussed call provisions and potential early payoff strategies if revenue allowed.
A motion to authorize the purchase, with staff directed to continue exploring the bond option and funding mechanics, carried on a unanimous voice vote (6–0). Council instructed staff to return with any required financing resolutions and with advice from bond counsel on reimbursement and call provisions.
Next steps: staff will finalize procurement paperwork and work with the finance team and bond counsel on whether to cash-fund, use a reimbursement resolution or include the apparatus in the February CO issuance.
