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Danville board backs moving forward to pursue lease-purchase for new ladder truck
Summary
Board members gave consensus to pursue a lease-purchase for a ladder truck with a roughly 13-month build time, a dollar buyout option, and a deferred first payment; officials said the purchase spreads cost and will not require a $1.6–$1.8 million upfront payment.
S1 (Chair) sought the board’s consensus to pursue a lease-purchase that would replace aging apparatus and avoid a single upfront purchase of roughly $1.6–$1.8 million. “The great thing about this is that we don't come up with 1.6 or $1,800,000 upfront,” S1 said, explaining a lease with a dollar buyout at the end of the term.
S1 told members the build time for the ladder truck would be about 13 months; if the current slot is secured, delivery could be May 2026, with the territory deferring the first payment until about a year after delivery and planning to make the initial payment in 2028 under the scenario discussed. He described the strategy as prudent, saying a 10-year amortization preserves additional years of useful life for the truck after repayment.
On financing, S1 said the territory’s equipment replacement fund is estimated at $435,000 per year. The territory will assume a medic payment from the township of $76,000 per year for five years, which S1 said improves the yearly balance (he estimated a remaining need of about $214,000 to fully reach target replacement levels). S1 also said there is roughly $60,000 in contingency for tools and outfitting so those costs do not come out separately.
Board members asked about term length and whether a 7-year versus 10-year schedule would leave room for future replacements. S1 said term options are available and pointed to incentives that lower payments on longer schedules, while noting the department would avoid becoming “strapped” for future purchases.
S1 also noted that a ladder committee chaired by Chief Brandon reviewed options and recommended the course. The board indicated consensus to move forward, and S1 said he would return with final numbers and a recommended contract when available.
The board did not take a formal binding vote on the purchase at this meeting; S1 sought consensus to continue to the next step of contract negotiation and final pricing.
