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Committee backs tax‑exempt lease to reimburse hospitality tax after initial fire‑truck purchases
Summary
Committee recommended that town council approve a tax‑exempt lease‑purchase (not to exceed $8 million) to refinance previously paid fire-truck costs and reimburse the hospitality-tax fund; staff outlined an RFP and council reading timeline aiming to close the transaction in June.
Staff presented a proposed tax‑exempt lease‑purchase agreement to finance earlier and future fire‑truck purchases and to reimburse the hospitality‑tax fund for roughly $5.1 million already paid. The presenter said the lease would be "about $8,000,000, but not to exceed $8,000,000," align lease payments with the trucks’ anticipated 10‑year life and would not count against the town’s 8% general obligation bond capacity.
Committee members asked how lease payments would be funded; staff confirmed payments would come from the hospitality‑tax fund and emphasized that the transaction includes standard protections such as a non‑appropriation clause. The committee voted to recommend the ordinance to full council, with staff seeking RFP responses and council readings on a schedule intended to close the financing in late June.
