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FINANCIAL MANAGEMENT DEPARTMENT <br /> #2006 - �24 <br /> June 12, 2006 <br /> MEMO TO: Honorable Mayor and City Council Members <br /> FROM: Steve Gar City Manager <br /> Ron E. Ne d, Director of Financial Management <br /> Matthew osky, Fire Chie� <br /> SUBJECT: Payment of New Fire Truck <br /> SUMMARY RECOMMENDATION: <br /> It is recommended by staff that City Council approve the attached resolution, which <br /> authorizes how the balance of the invoice for the new fire truck shall be paid. <br /> BACKGROUND: <br /> Last summer the City Council authorized the purchase of a new Pierce 75' aerial ladder <br /> truck, in the amount of$583,400. The trucic has been delivered and the final cost of the <br /> truck is $583,845. <br /> The Fire Department has been paying $23,688 into the Equipment Replacement Fund for <br /> the past 16 years for a total of $379,008. Since the truck has been replaced ahead of <br /> schedule, the balance of $204,837 needs to come from another source other than the <br /> Equipment Replacement Fund. <br /> It is therefore recommended that the purchase price of $583,845 be paid out of the , <br /> Equipment Replacement Fund initially, with the balance of$204,837 to be paid back by , <br /> the Fire Department over a three year period. The rate would be 4.8%, the current rate <br /> we are getting on our funds in the Illinois Public Treasurer's Investment Pool (IPTIP). ; <br /> The payment would be $74,936.18 for three years starting in FY 07/08. ' <br /> POTENTIAL OBJECTION: There are no known objections to this resolution. <br /> INPUT FROM OTHER SOURCES: None I <br />