Mount Vernon approves short-term loan, state financing and budget actions to cover unbudgeted ladder truck

Mount Vernon’s City Council on Dec. 17 approved a package of financial actions to address a ladder truck that arrived in 2025 before financing was available.

Finance director Doug (Doug Bolesky) explained the ladder truck arrived earlier than expected and the Fire Capital Projects Fund lacked reserves to cover the purchase. Staff requested a short-term interfund loan of $975,621 from the equipment rental fund to the Fire Capital Projects Fund, to be repaid when the state local-financing program releases proceeds in February 2026. The interfund loan interest rate was described as 2.81% and repayment was to be made by Feb. 27, 2026.

Council approved an ordinance authorizing the short-term interfund loan and also adopted Ordinance 39-31, approving a local-agency financing contract with the State of Washington for up to $975,621.30 with a final maturity of up to 10 years; staff said proceeds are expected in February 2026 but require return of several documents by Jan. 9 to secure funding. The council also approved a reimbursement resolution (No. 10-89) required to accept the financing proceeds because the city had already paid the vendor.

Council additionally passed budget amendments to reconcile 2025 expenditures. City staff said the equipment rental fund would retain sufficient balance after the loan; the finance director estimated the equipment rental fund cash and investment balance on 12/31/2025 at about $7,740,000.

The package was approved by voice vote; staff will complete the state forms to secure the financing and return details to council as required.