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Township committee agrees to pursue bond ordinance, explores multi-year financing for new fire engine
Summary
The committee discussed a fire department request for a new engine, reviewed multi-year build timelines and financing options (including a 5% down payment, chassis payment mid-build and issuing a bond ordinance with a supplemental debt statement), and directed staff to prepare the bond ordinance for introduction.
Chair introduced a request from the fire department for a new engine and urged the committee to begin securing funds for acquisition.
The committee discussed procurement and financing details for a specialized fire apparatus. Chair said, "It's a 4 year it's 4 years to get a truck, so you you cover the money now," noting long lead times. Staff explained the legal and financial steps required before placing an order: "the normal process would be you can't actually order because that would, financially obligate you to something that you don't have the funding for," and recommended using a bond ordinance and a supplemental debt statement to establish funding authority without immediately incurring debt.
The exchange covered timing and payments. Staff described typical manufacturer practice—36 to 48 months for build-out and a mid-build chassis payment that can reduce the final balance—and suggested an authorized-but-not-issued (ABNI) debt mechanism to reserve funding without drawing interest until funds are needed. The chair and committee members discussed a roughly 5% initial payment and the possibility of issuing debt later if the township cannot fully fund the purchase by delivery.
Committee members raised interest-rate and jurisdictional questions, noting current interest rates and differences in how fire districts and municipalities may proceed. Staff said a bond ordinance requires two readings and a 20-day estoppel period before the purchase order could be finalized and recommended the township's bond attorney prepare the ordinance for a March reading so the purchase process can proceed on the manufacturer’s timeline.
The committee did not approve a purchase at the meeting but agreed to pursue the bond-ordinance pathway and to prepare the necessary financing documents and municipal introductions for consideration at upcoming meetings. The chair indicated the matter would return with a formal bond ordinance and supplemental debt statement for the committee's first reading.
