WILTON – After investigating offers from various leading institutions to buy a new fire truck, the selectboard went with a local bank that will provide a lower interest rate on a 10-year bond.
At their meeting Tuesday night, the selectboard approved a 10-year bond with Key Bank of Wilton at an interest rate of 2.53 percent to cover $480,000 of the truck’s total cost of $500,000. The remaining balance of $20,000 will come out of the fire department’s capital equipment account to help reduce the size of the bond. The payment, Town Manager Rhonda Irish said, will be $54,441.25 a year for 10 years.
On Dec. 23, the board approved the purchase of a HME Ahrens-Fox stock 78-foot Aerial Quint for $500,000 at the recommendation of the firetruck committee and Wilton Fire Department. The 2013 model was offered at a discounted price because it had been used as a demonstration model for its first year. The 78-foot quint was selected over a 15-year-old, 2000 Pierce Quint truck that was under consideration.
The new vehicle will replace a the broken down 1973 Snorkel truck, as well as Engine 7, a 1993 vehicle that is currently for sale. The new truck is anticipated to be operational in March or April.
Irish had researched possible lending partners that included three banks, as well as a fourth institution, Municipal Leasing Credit Corporation. That national lender was recommended by the company that sold Wilton the fire truck, and specializes in leases to municipalities.
Earlier, Irish said it was MLC Corp., that had offered the lowest interest rate at 2.99 percent. Meanwhile, Key Bank came in with the offer of a lower interest rate set at 2.53 percent, which the selectboard approved.
The first payment is not due until next fall, giving town officials time to arrange payment at its annual town meeting in June. Previously it was suggested that the town could use up to $300,000 available in the Comfort Inn tax increment financing account to reduce the impact of the payments on the annual tax assessment.
I am happy we can have such a nice piece of equipment and using a bank in town to finance it,,
I think the town should have saved the money first….then purchase the truck….AFTER …..the money is raised……that way there is no interest to pay…. A little common sense goes a long way to save taxpayer’s money.
Army Vet, have you ever had a loan or always saved ahead for every purchase you ever made?
I’ll pay you Tuesday with interest for a fire truck today.
Likely the price of the truck would go up in 10 years way more than the cost of the interest at 2.53 % . Coverage being done by other towns for Wilton would also be way more than the interest being charged. We tax payers of Wilton were informed of the need for a truck, approved the investigation process, and then approved the purchase of the truck.
Please don’t assume you know what this Wilton taxpayer would like.