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City approves borrowing to buy pumper truck
The City of Cranbrook is going to borrow $250,000 in order to complete the purchase of a new pumper truck for Cranbrook Fire and Emergency Services.
Borrowing was approved Oct. 22 when city council unanimously approved the final reading of Fire Fighting Equipment Short Term Capital Borrowing Bylaw No. 3756.
“The estimated impact of this borrowing to a residential taxpayer will be an increase to the general municipal tax levy of approximately $1.80 per $100,000 of assessed value. Under the Cranbrook Rural Fire Protection Agreement, the Regional District of East Kootenay will contribute 20% to the annual debt servicing costs,” explained a report from the city’s Finance and Computer Services department.
The city will begin servicing the debt in 2013, with anticipated interest of $54,500 over the five-year term of the loan.
The city is only borrowing $250,000 to pay for the almost half million dollar truck, because it is has $226,884 in its Equipment Acquisition Reserve Fund.
City finance will apply to the Municipal Finance Authority (MFA) for a loan under their fall 2012 debenture issue.
Above image: Cranbrook Fire and Emergency Services action a fire on Baker Street earlier this year.
Ian Cobb/e-KNOW
