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Council approves Metro Bank loan to buy new fire truck after chief outlines financing plan
Summary
SpringvilleCity Council approved a $450,000 loan from Metro Bank at 4.35% over 72 months to help purchase a $780,000 fire truck after Fire Chief Harvey presented cash balances, financing proposals and recommended a six‑year term.
The Springville City Council voted to authorize a $450,000 loan from Metro Bank at 4.35% interest over 72 months to help finance a new $780,000 fire truck, following a presentation by Fire Chief Harvey on the city's available funds and financing options.
Chief Harvey told the council the department has about $277,000 available in cash (roughly $200,000 in a tax account plus a $77,000 certificate of deposit from the sale of an old engine) to apply toward the purchase.
"We've got roughly 277,000 available cash funds to go towards the purchase price, which is roughly 780,000," Harvey said, and added that Metro Bank "gave us the best interest rate, 4.35%" among three proposals the department solicited.
Harvey presented annual payment estimates for a $450,000 financed balance: a five‑year term would cost about $98,292 per year, a six‑year term about $83,006 per year and a seven‑year term about $73,002 per year. He recommended the six‑year option because the department had budgeted roughly $88,000 in the current year for truck payments and the shorter term reduces overall interest costs compared with the prior eight‑year deal.
Council discussion focused on down‑payment size and cashflow. Harvey said the department would aim to apply roughly $330,000 as down payment (including the $77,000 CD and tax‑account reserves) and finance approximately $450,000. He noted most equipment was already purchased over the last two budget years and he had set aside about $15,000 for incidentals at delivery.
Harvey also detailed the fleet picture: "the average lifespan of a fire apparatus is 10 to 15 years in frontline service and about 20, 25 years total," and said the department currently operates units aged about 4, 8, 21 and 24 years, creating an ongoing replacement need.
On the motion to enter the loan with Metro Bank for $450,000 at 4.35% for 72 months, the clerk recorded a motion from Mr. Wolf with a second from Mr. Wisenott; the council approved the loan by voice vote. Individual vote tallies were not recorded in the transcript.
The truck is under construction and Harvey said delivery is anticipated in September or October, with a final inspection planned in late August. The council did not alter the financing terms approved on the floor and placed the loan resolution on the record as passed.
