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Cotulla moves forward on financing steps for new fire truck; council approves reimbursement resolution and plan to pursue tax notes
Summary
Council authorized a reimbursement resolution and granted staff permission to pursue tax‑note financing to help pay the city’s share of a proposed fire truck purchase; staff warned the purchase could require a loan and may lead to higher property taxes in a later budget if chosen.
The Cotulla board on July 11 approved a reimbursement resolution and authorized staff to pursue a plan of finance to support purchasing additional fire apparatus intended to improve the volunteer department and protect the city’s ISO insurance rating.
Staff described the apparatus price and financing options: a total vehicle cost cited to the council was $903,000, with Cotulla’s portion estimated at $453,000; the city’s preliminary plan contemplates tax notes for roughly $515,000 total borrowing (issuance costs about $61,007.50) with estimated annual principal‑and‑interest near $117,000 under preliminary assumptions. Financial consultant Robert Kehinde briefed the council that the financing discussion at this meeting was planning only; final interest rates and sale details would return to council for approval in September.
Council discussion focused on tradeoffs: one council member said adding a truck would help the city’s ISO rating and economic development prospects, while others cautioned about the city’s current financial stress and the possibility that borrowing could require raising the interest and sinking (I&S) tax rate in a subsequent budget. Staff noted the plan includes interlocal options with the county, possible grant/loan support (including Water Development Board programs being pursued elsewhere), and that county approval is required for a shared purchase.
Motions and next steps: The council approved the reimbursement resolution (Item 7) and approved a motion to proceed with planning for issuance of tax notes (Item 9); the council will receive final loan terms and a formal financing ordinance in September before any commitment to borrow.
Attribution: Financial consultant Robert Kehinde presented the financing plan; several council members and staff asked follow‑up questions about tax‑rate impact and grant options.
