Russellville approves loan to purchase fire truck
In early December, Russellville City Council voted to enhance the city’s fire department with the purchase of a used rescue pumper – “something we had to make happen,” according to Fire Chief Joe Mansell. Jan. 4 the city approved financing for the truck at a 2.68 percent fixed rate over a ten-year term with CB&S Bank.
The city solicited bids from local banks and received offers from CB&S, Valley State, First Metro, Community Spirit and Bank Independent banks. The city opted to choose a bid with a slightly higher interest rate and longer repayment term; the lowest bid was a seven-year loan at a rate of 2.24 percent.
“You just have to make what you feel like is the best business decision,” said Mayor David Grissom. “The ultimate goal is to pay it off as quick as you can,” but paying over a longer period of time, “freed up a little bit of the payment. We felt like that would probably be best going forward,” Grissom added.
The city will refinance an older truck and combine that payment with the new payment, ultimately freeing up about $11K per year. In work session discussion Jan. 4, the council touted the benefit of being able to use that money for other needs of the city – primarily to purchase a few new police vehicles.
“We’ve got to figure out a way to start a rotation of police cars,” said Councilman David Palmer. “This might be a good start. This might be an opportunity to do that.”
If the police vehicles were not in need of replacement, Grissom said, the council likely would have chosen the shorter-term loan. However, circumstances being what they are resulted in the longer term, lower payment being chosen.
“Rates are low, and it’s a good time to be doing this,” Grissom said. “It’s a savings for the taxpayer.”
The 2007 E-One Spartan Rescue Pumper will be purchased from Brindlee Mountain Fire Apparatus for the amount of $235,000.