The Town of Lake Cowichan will be borrowing money in order to complete the purchase of a new rescue truck to be used by the Lake Cowichan Fire Department.
The truck costs $347,855.50 and the town has already paid a deposit of $109,669 on that price.
A further $110,000 will come out of the fire department equipment reserve fund to pay it down, thus the town will be borrowing a total of $144, 859.55 to complete the purchase.
“In the Financial Plan for 2013-2017 the replacement of the rescue truck was approved,” wrote the town’s director of finance Ronnie Gill in a letter to council last week. “A deposit of the chassis was paid in 2013 however the truck was not ready for delivery by year end. The Financial Plan for 2014-2018 included the budget for the balance owing on the truck purchase upon delivery.”
Gill’s letter was presented to council at last weeks regular council meeting at the town hall, where the table voted to go ahead with the borrowing unanimously.
Coun. Bob Day asked if “future transfers to reserve funds will be used to pay the borrowing debt down.”
“We will go with the best plan and place to pay it down,” said chief administrator Joe Fernandez.
Mayor Ross Forrest believes the new rescue truck will be a great asset to the town.
“The fire chief went to the plant where the truck was being built,” said Forrest at the meeting. “He inspected it and I’m told it’s quite the truck. The company that has built it has added a lot of additions at their expense. It’s worth a substantial amount of money that we’re getting for nothing. This is a very good thing and it will fulfill our needs.”
Coun. Frank Hornbrook asked Fernandez how long the repayment process for the borrowing would take, throwing out the period of five years for pondering.
“It could be more, it could be less,” said Fernandez. “We are getting a very good interest rate right now.”