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Pleasant Hill council approves moving forward with $1.6M equipment loan to fund fire truck replacement
Summary
The council approved a resolution Feb. 24 to proceed with a $1.6 million general obligation equipment acquisition loan (General Obligation Fire Equipment Bonds, Series 2026A) to fund equipment needs, including a retiring fire truck; the debt service levy would repay the bonds.
The Pleasant Hill City Council on Feb. 24 approved Resolution #022426-01 to take additional action on a proposal to enter into a general obligation equipment acquisition loan agreement, authorizing continued steps toward issuing up to $1.6 million in General Obligation Fire Equipment Bonds, Series 2026A.
City Manager Ben Champ told the council that the primary purpose of the proposed bond is to replace a retiring fire truck and to cover other equipment needs over the next several years. He said the city’s equipment replacement fund does not have a dedicated, ongoing revenue source adequate for planned purchases and that the city relies on periodic general obligation financings to meet equipment replacement needs. Champ told the council the debt service levy would be used to repay the bonds as part of the city’s tax rate.
A resident, Mark Swanson, asked why the City would borrow rather than save for equipment replacement. Champ responded that state legislators discourage cities from accumulating large reserves, which was offered as context for relying on bond financings.
Councilmembers voted 5‑0 to approve the resolution and continue the process for the equipment acquisition loan. The resolution authorizes staff and bond counsel to proceed with required notice and documentation steps toward sale and issuance of the bonds.
