5.10. SR 06-17-1996 - Laserfiche WebLink

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City of ITEM 5.10. 'ver FROM: DATE: SUBJECT: MEMORANDUM Mayor & City Council Lori Johnson, Asst. City Administrator June 17, 1996 Fire Department Pumper Financing The fire department is requesting authorization to advertise for bids for a pumper with a cost of approximately $300,000. The estimated delivery date is approximately one year after award of the bids, or the fall of 1997. In anticipation of this purchase, $48,000 has been set aside and it is anticipated that another $24,000 will be included in the 1997 budget making $72,000 available at the time of purchase. The remaining balance (approximately $225,000) will need to be financed either through equipment certificates, a payment plan with the vendor, use of reserves or another source. Based on the information received from one prospective vendor, a finance option through the vendor would require payments of approximately $40,000 per year for seven years. This is an increase of $16,000 above the $24,000 amount already included in the budget process. Although final financing for this purchase does not need to be approved at this time, the City Council should discuss and consider how it plans to fund this purchase. Also, it is anticipated that the fire department will have additional major capital outlay requests in the next several years that will need to be considered. Ideally, an equipment capital outlay plan would be implemented so that reserves can be set aside for future purchases. We do not have such a plan but the Fire Chief will be able to give us a good idea of future plans and anticipated costs that need to be considered. s:XcouncilXpmpr.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425