Mount Airy officials put the wheels in motion Thursday afternoon for the purchase of major capital items including new fire and garbage trucks at a total cost of $1,670,000.
Topping the list are a new fire engine to replace one that is 20 years old and posing repair problems and two garbage trucks that will enable the city to switch to an automated trash-collection system to protect personnel.
Rounding out the package are a new leaf-collection machine that represents another measure to keep sanitation workers safe compared to the present pickup method and a dump truck to aid this process.
Though a vote on a project ordinance to authorize the collective equipment additions occurred Thursday, the purchases actually had been decided on during another meeting a week before, with the extra time needed to finalize related paperwork. Months of debate had preceded the Jan. 21 breakthrough, centering on matters including how to fund the items.
That consideration seemed up in the air during the week-earlier session, with Commissioner Ron Niland, who also is serving as the city’s mayor on an interim basis, saying the money eventually could be supplied through one of multiple methods.
These included borrowing part or all of the sum needed, along with tapping into the city’s fund balance, or surplus — frequently the go-to source for expenses arising in the middle of a fiscal year which weren’t budgeted for originally.
When Thursday afternoon rolled around, a proposal for borrowing the money was in the mix.
“That’s the plan moving forward,” City Manager Barbara Jones explained after the meeting regarding an option officials had viewed as viable because of interest rates being at historic lows.
In addition to the prices of the trucks and leaf machine, the $1.67 million project ordinance the commissioners approved Thursday afternoon includes loan costs of about $60,000, Jones added, which could be reduced as financing options are explored.
The total further reflects bond attorney and banking underwriting expenses, according to Finance Director Pam Stone.
Jones had said at the Jan. 21 meeting that the project ordinance was a method to allow the city government to go ahead and order the fire and garbage trucks, without immediately using money from the fund balance through a budget amendment.
The main motivation for proceeding with the purchase now is timing, since it will take about a year to actually get the fire engine into service and around nine months for the sanitation vehicles.
However, Jones continually had warned the commissioners that once the project ordinance was approved, a commitment to provide the funding would exist at that point.
City government documents show that the intent at present is to take out a loan for the entire $1.67 million involved.
“How long are we going to be borrowing the money?” Commissioner Jon Cawley asked the city manager Thursday, with a loan the option to be pursued.
“Right now we’re talking about 10 years,” Jones replied.
She elaborated on that after the meeting by saying the municipality can borrow money for a period matching the life of a vehicle involved, which is 15 years in the case of the fire truck and 10 years for everything else.
Source: https://www.mtairynews.com