East Bethel considers lease-to-own for two replacement fire engines as manufacturer deadline nears

East Bethel — The council reviewed options on March 23 to replace two aging fire engines and to finance the purchases on a multi-year lease-to-own plan tied to a manufacturer deadline.

Staff presented pricing in the $850,000–$900,000 range per apparatus and a set of financing options including 5-, 7-, 10- and 15-year plans. The 10-year option was highlighted by staff as a balance between annual payment pressure and planning for a 20-year replacement cycle; staff noted a 10-year payment example of $237,582.63. The chief said the manufacturer and engine-supplier timing requires the city to indicate intent by about April 10 to preserve current engine-in-frame availability for the 13-month build cycle.

Council members discussed using existing equipment reserves versus financing: staff said there were amounts in accounts set aside (figures discussed in the meeting included a $400,000 figure for near-term set-asides, and later mention of a broader equipment account) and that using all reserves could jeopardize scheduled replacements for other public-works equipment. The financing offer described zero-down terms with a $1 buyout at lease end so the vehicles would become the city’s property.

The chief described a common long-term frame corrosion issue on older two-piece-steel-frame apparatus and said new frames are galvanized and coated to reduce rust jacking; Engine 11 (a 2003 unit) shows early rust-jacking signs while Engine 21 (2013) may have a galvanized frame. Staff said grants are unlikely to meet the current timeline and that further work on a financial strategy would be required before a formal commitment.

Next steps: staff will prepare financial analyses and options for the council, including the impact on the capital-improvement plan and whether to issue an intent to the supplier by the stated deadline.