Thursday, October 02, 2014

City secures fire truck financing

By The Herald Staff | 1/3/2014

The financial balloon did not burst.

Facing a payment of about $539,000 for an aerial platform fire truck in early January, the City of Ottawa sought bids from local banks to help it meet that financial obligation.

The financial balloon did not burst.

Facing a payment of about $539,000 for an aerial platform fire truck in early January, the City of Ottawa sought bids from local banks to help it meet that financial obligation.

Arvest Bank, 119 E. Third St., Ottawa, submitted the low bid of 3.23 percent to finance the balloon payment for 120 months, Scott Bird, the city’s finance director, told Ottawa city commissioners. Commissioners voted to accept Arvest’s low bid at their Dec. 30 study session.

In late 2008, the Ottawa Fire Department acquired a Pierce Velocity Platform Fire Apparatus for $882,314 to replace a 1981 American LaFrance Ladder Truck, Bird said. The city purchased the fire truck with a $150,000 down payment and a 15-year lease-purchase arrangement. The lease-purchase agreement called for monthly payments the first five years, with a balloon payment coming due to cover the balance, Bird said.

Securing the financing through Arvest Bank will allow the city to make that $539,000 payment when it comes due Tuesday, Bird said. The city would not face a penalty if it opts to pay off the debt early, he said.

Fire trucks typically have a lifespan of about 30 years, Bird said.

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