Delaware County approves refinance of Monkey Island ladder truck loan to lower annual payments

Delaware County commissioners voted 3–0 on Jan. 6 to approve refinancing arrangements for a ladder truck used by the Monkey Island Fire Department.

Chief Carl Tesreau told the board the ladder truck was deemed necessary in 2018 for taller buildings on Monkey Island, and that it is one of two ladder trucks in the county and would respond to large fires including at the courthouse. Tesreau said the original loan schedule had yearly payments of $60,000 for five years and $70,000 for five years followed by a balloon payment of over $400,000; the department cannot afford $70,000 annual payments or the balloon payment and therefore sought a longer amortization.

"The department cannot afford payments of $70,000 a year and has no way to make a balloon payment, so it wants to refinance for 13 years to make lower payments until the entire debt is paid," Tesreau said. He added that interest paid under the extended schedule would exceed $381,000, but the longer term makes annual payments manageable and the truck's useful life was estimated at about 40 years even though it averages roughly 10 calls per year.

District Attorney Doug Pewitt clarified ownership and risk: "Monkey Island Fire Department does not own the truck and Delaware County does not own the truck ... this is not a new loan but a rescheduling of payments on the existing loan," he said, noting the bank's contract terms and risk implications if payments are not met. Case Hampton of Bank of Grand Lake told the board such loans are normally capped at 10 years but said the bank will permit the rescheduling in this case. The board approved the refinancing motion by roll call.

The board recorded the interest rate discussed at 4.25% and approved the refinancing to reduce annual payments; the transcript does not record the exact new annual payment amount.