Fergus Falls approves $2.03 million aerial fire truck; council discusses financing and failed federal grant

The Fergus Falls City Council on Oct. 20 authorized purchase of a 100-foot aerial truck from Fire Safety USA at a contract price of $2,033,000.

Fire Chief Ryan Muckle presented the purchase and procurement process, telling council the department reviewed proposals from three manufacturers and sought to build a fiscally responsible truck that meets future needs. He described a $15,000 change order and a separate $15,000 shelving allowance to cover unforeseen build items and interior shelving placement.

Muckle said the city does not have the full capital amount on hand and outlined payment options. One option discussed was a $400,000 prepayment from the capital fund that would earn roughly 5% interest through the manufacturer, which the chief estimated would lower net cost by about $72,000. Council members also discussed tax-exempt bond financing, with one member asking to include a declaration of intent to reimburse with tax-exempt bonds; members discussed splitting payment and financing half now and issuing bonds in 2029 with debt service starting in 2030.

Council members pressed the chief on grant opportunities. Muckle said the department applied to FEMA's Assistance to Firefighters Grant (AFG) program but was not awarded funds; he said a full AFG award could have been up to $1,000,000 and the department had sought the maximum.

Members discussed leasing versus purchase and the long replacement schedule for large apparatus (the department expects some major replacements in the early-to-mid 2030s). The council approved the resolution by roll call.

Next steps: staff will finalize contract authorization and return with financing details if council chooses to prepay part of the purchase or move to bond financing.