Butler City Council seeking loans for fire truck
Butler City Council on Thursday agreed to seek loan proposals for the new fire department ladder truck council agreed to buy last month.
Council members unanimously voted to seek 10- and 15-year loan proposals for $1,329,763 to buy a 2021 Pierce Arrow XT mid-mount tower ladder truck.
Before that motion passed, council unanimously voted against a motion, which was tabled last month, to accept a $1,298,814 loan from NexTier Bank to finance the purchase at an interest rate of 3.07%. The $5,000 price difference was attributed to the cost of reflective striping and department decals.
The decision to seek proposals for 10- and 15-year loans was made after Councilman Jeff Smith questioned the debt service payments for the different loan terms.
He said a 10-year loan would require $40,000 a year more in debt service payments than a 15-year loan, but reduces the term by five years. The higher payments for the 10-year loan would add three-quarters of a mill, or about $3 per resident, to the city's debt service payments, he said.
Councilman Mike Walter suggested getting proposals for 10- and 15-year loans.
In unrelated business, council approved buying materials for street paving next summer.
The purchase of $82,850 in limestone materials from Allegheny Mineral Corporation, $46,400 in asphalt from Wiest Asphalt Products and Paving and $7,000 in emulsion sealer from Russell Standard Corporation.
In addition, council agreed to close part of Main Street for the Butler PM Rotary's annual Carved in Ice Festival on Feb. 19 and 20.
Council accepted a proposal for a $1 million tax revenue anticipation loan at a 4.1% annual interest rate for 2021 from NexTier Bank.
Council also accepted a $25,342 COVID-19 Crisis Fire Company and Emergency Medical Services grant from the State Fire Commissioner's office.
Fire Chief Chris Switala said the grant does not require a match and will be used for personal protection equipment and other COVID-related expenses.
