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Board authorizes 5-year lease-purchase option for fire apparatus after comparing terms
Summary
After comparing two proposals, the Board authorized a 5-year lease-purchase for Alexandria Fire Department apparatus (quoted rates roughly 4.66% for five years vs 4.78% for seven years), with payments expected to start in January 2027; staff will confirm the bank's offer extension before closing.
The Board of Works discussed a lease-purchase agreement with Crossroads Bank to finance fire apparatus for the Alexandria Fire Department and voted to proceed with the five-year option. Staff explained that the 5-year option locks in a lower interest rate and reduces total interest costs compared with a 7-year term.
Staff and board members referenced the quoted rates and timing: the 5-year option was described as "in $4.66 for 5 years and $4.78 for 7 years," and payments were expected to begin about January 15, 2027. A board member asked whether Crossroads Bank had extended the July 9 proposal; staff said they would clarify that with the bank and proceed if the offer remained valid. The board authorized proceeding with option 1 (5-year financing) by voice vote.
