Council voted in favour of a fire department purchase that will involve incurring $97,000 debt, prior to 2024 budget deliberations.
The money would be used to purchase a vehicle to pull the rescue UTV (utility task vehicle) and trailer. The fire department presently rents a Ford F250 from Thomas Solutions for $1,046.38 per month, and has purchased an NFPA light package, and winter tires with rims for the vehicle. A work cap for it has been donated.
The staff recommendation is to purchase a Ford F250, and would remove the lights, tires and cap for use on the new vehicle. The department obtained three quotes, the lowest of which is from Leslie Motors, a local supplier.
The four options provided include leasing from Leslie Motors (with a buy-out option at the end of the lease, which the current arrangement does not have); financing through Leslie Motors; financing through CIBC, the latter being the least costly at $97,354.80; and financing through CIBC with a longer term for repayment. The staff recommendation was for “C” – purchase with financing through CIBC for 60 months.
Although the monthly cost is higher than what’s presently being paid, at the end of five years, the municipality would own a truck with less than 10,000 kilometres on it.
Not every council member at the Nov. 28 meeting was in agreement with the plan to buy the truck.
Coun. Mitch Clark, who has often tried to make a case for using reserves rather than debt to fund major purchases and projects to save interest costs, did so again.
“Why would we take on $97,000 debt when we have money in reserves?” he asked.
He called for an option other than those listed in the staff report – borrow from reserves, and pay the money back, perhaps with a nominal amount of “interest.”
Fire Chief Chris Wells said, “Other purchases are coming forward (in the 2024 budget); the reserves (fire department reserves) are already spoken for.”
Clark asked about other reserves, and got a similar answer from Trish Serratore, chief financial officer.
“Most of our reserves are for specific projects,” she said.
Coun. Tim Elphick expressed caution at “making a $100,000 decision on the eve of budget.” He commented that tabling the report until budget deliberations might be the best option.
Clark agreed, saying if there were no reserves that could be used, that would also be his preference.
The fire chief didn’t agree with the municipality continuing to pay rental fees for the truck, without it ever “becoming an asset to the municipality.” The lack of a buy-out option was a stated concern for him, along with difficulties working with the company from which the vehicle is being leased. And by ordering now, he said he’s assured of a 2024 vehicle the lights and other items will fit, which might not be the case for a 2025 truck.
Coun. Carl Kuhnke was firmly on board with the plan to buy a truck rather than lease it.
Deputy Mayor James Lang said he’d “never liked the Thomas deal” and supported the recommended option, noting, “It’s time-sensitive.”
The vote ended with an equal number in favour of the staff recommendation (councillors Kym Hutcheon, Greg McLean and Kuhnke) and against (Mayor Chris Peabody and councillors Elphick and Clark); Lang, who was chairing the meeting because Peabody was out of the country and attending remotely, voted in favour of the recommendation, and the motion carried.