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Fire chief locates new aerial, how to pay for it still to be determined

Posted August 13, 2012

New Tecumseth Fire Chief Dan Heydon had $750,000 on paper to go shopping for an aerial fire truck to replace the 24-year-old model in service at Station 3 Tottenham. He found one that with the HST rebate, will cost the Town $744,868.

The selected submission is a Pierce Stock Unit 23868 which was being used as a demonstrator apparatus and can be delivered in early September. Training on it will take another three days before it goes into active duty.

"Staff will proceed with the disposal of the current apparatus when training is complete and the new aerial is placed in service," according to Chief Heydon's report to council. "Previous sales of fire apparatus at auction over the past number
of years have not shown substantial revenue, as the current apparatus contains a broken aerial device it will proceed to auction as a pumper only."

The only issue that's outstanding is how New Tecumseth will pay for the unit. It's recommended the cost be covered by long term debenture which, over a 20-year period at 3.32 interest, would cost $51,275 yearly in principal and interest.

However, it's expected that Ward 3 councillor Paul Whiteside will seek to utilize whatever reserve funds can be squeezed to limit the amount that would be borrowed.

The Fire apparatus fleet replacement reserve only has an available balance of $2,850. The overall fleet reserve balances for the Town (excluding Water & Wastewater) as at December 31, 2011 was $723,652. The overall projected balance as at December 31, 2012 after the replacement of certain units approved within the 2012 Budget, is $573,294. The overall fleet reserve balance included a 2011 year end transfer to the reserves of $461,500.

"Finance staff have reviewed and updated the 2011 Annual Repayment Limit (ARL) as prescribed by the Ministry. The Town continues to be within its updated ARL and after authorizing the proposed debenture issue, will continue to have capacity for other capital projects that may require long-term indebtedness as their funding source."

Looming on the horizon is the Town's need to debenture the costs of rebuilding the Tottenham sewage treatment plant, which at last estimated topped $21 million, which development charges are earmarked to pay for once they start rolling in.

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