Lebanon committee debates bond, lease and grant options to fund new pumper truck

Lebanon Township officials on Oct. 2 considered multiple funding options for a replacement fire pumper, weighing a tax-exempt lease purchase against a bond ordinance, pre-owned options and grant searches.

Committee member (5) outlined terms he had gathered: lease-purchase proposals with 10- or 15-year terms, annual payments, and interest-rate sensitivity; a pre-owned purchase was described as difficult because comparable trucks are rare and matching equipment is necessary for trade valuation. He said leases might not be treated as long-term debt but could create an operational budget obligation for roughly $136,000 per year under certain scenarios.

"I would tend to shy away from doing a lease," Committee member (5) said, noting that leases could be treated as operating expenses and therefore appear differently in municipal financial statements. He recommended pursuing a bond ordinance to encumber funds so the township could spread costs across three budget cycles and consider a bond anticipation note for the balance.

Committee members discussed time constraints: the vehicle build takes about 40 months, and a short-term price increase (the member cited an estimate of 1–2 percent) could affect final cost if the purchase cannot be completed before the next scheduled rate change. The group also discussed the option of cobbling grant funding (including potential FEMA assistance) and the procedural requirement to include public comment when a bond ordinance is introduced.

Township members agreed to consult the finance office and bond counsel (committee member (2) referenced bond counsel Steve Rege) to determine whether the bond route or another financing method would be preferable given the township’s current debt position and budget priorities. No final financing decision was made; the committee asked staff to return with additional analysis and possible ordinance language.