COLDWATER - After four years of study and discussion, the Coldwater City Council issued purchase orders for two new fire trucks Monday night.Coldwater Fire Chief Rich Sherman said the total cost is $1,758,909."We are badly in need of a new pumper and ladder truck.
Both existing units are on life support and are unreliable at this point,” he said.
The city bought a Seagrave pumper in 2010.
“Our second newest major piece of apparatus is nearly 20 years old as well,” the chief explained.
Coldwater Mayor Tom Kramer said, from the council point of view, “what we are doing is the right thing to do in the long term. They cost money.”
City Manager Jeff Budd said payments are not due until delivery — June of next year for the pumper, and a year from now for the ladder truck — which is in the 2017-18 fiscal year. The council can decide whether to pay cash or finance.
The manager suggested the city could pay for the $573,103 pumper in the current fiscal year from the fund balance. It could then look at paying cash or financing the higher priced aerial truck. He estimated an annual payment of $180,000. That might be a good deal if current interest rates remain around 3.5 percent.
Budd pointed out the city, in anticipation of the major purchase of the ladder, has been building its fund balance to $3.9 million from its usual $2 million level.
The purchase does not take into account any money the city could realize from the sale of the two pieces of used apparatus being replaced. Chief Sherman said he plans to list these with brokers of used fire equipment.