Aprell May Munford
The Republican, Springfield, Mass.
(TNS)
Feb. 22—AGAWAM — Agawam is finding creative ways to pay for a $1.9 million fire truck.
At Tuesday’s regularly scheduled town council meeting, the panel unanimously approved a resolution establishing a new Capital Stabilization Fund. The measure included a $2 million transfer from the town’s free cash account.
The resolution won a positive recommendation from the finance subcommittee, said Rosemary Sandlin a town council member.
“We should all be aware that Chief (Alan) Sirois talked with us today about needing a new ladder truck, which (will cost) $1.9 million, and he must order it now. … This is the money that we are going to use,” Sandlin said. “The fire truck is a priority.”
Sandlin said the fund is like a savings account that earns interest. “It is the first step in establishing an account that we can purchase even a fire truck out of,” she said.
“It builds interest … this is ongoing (and) you can take money in and out. It is important that we have that flexibility for the bonding issues,” Sandlin added.
According to Sandlin, since interest rates have risen, the town will be able to get a 4.5-percent rate, enabling the fund to grow from the initial deposit.
Council President Christopher Johnson said the fund provides greater flexibility.
“It is also something the rating companies look for,” Johnson said. “The town has made great steps in the last 30 years to bring its bond rating up. At this point I think we are one step away from hitting the top step.”
The goal is to have the ability to pay for small capital projects without the need to borrow, he said.
Town Councilor George Bitzas supported the stabilization fund. He suggested the town also take $400,000 from free cash to repair roads, sidewalks and potholes.
Sandlin said that while the council could consider road and street projects, the fund is not for that use.
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