The Cariboo Regional District (CRD) is looking to replace an engine for approximately C$545,000 for the Bouchie Lake (B.C., Canada) Volunteer Fire Department and has launched an alternative approval process (AAP) to do so.
According to an FAQ page on its website, “one of the Bouchie Lake Volunteer Fire Department’s fire trucks is due for replacement in 2022 in order to meet certification requirements. The CRD thinks the best purchasing option is through a 10-year debt-financing model and needs permission to enter into debt financing arrangements that exceed five years in term.”
The apparatus will cost approximately C$545,000. If adopted, the bylaw authorizes the borrowing of up to C$550,000 to be repaid over 10 years, the website notes.
“Traditionally, the CRD has replaced fire trucks through five-year capital leases,” the district says. “By financing these purchases instead, with 10-year equipment loans issued by the Municipal Finance Authority (MFA), the required payments can be spread over a greater period. This will decrease short-term cash requirements and lessen the need for tax increases or borrowing to fund a future truck purchase.
“Financing the truck purchase with 5-year equipment loan requires total debt servicing payments of approximately C$328,613 over the five years in the current 2022-2026 Five Year Financial plan. Financing the purchase with 10-year debt financing would require debt servicing payments of C$168,617 over the same five years in the current 2022-2026 Five Year Financial Plan.”
If at least 10% (184) submit an Elector Response Form, the district would purchase the truck through the five-year financing model.
More information about the fire truck replacement project–and to vote by the July 5 deadline–click here.