Marion City Council approves financing plan for new fire truck

While some members of Marion City Council weren't necessarily happy about borrowing the funds needed to purchase a new fire truck, they nevertheless voted to approve a financing plan to make said purchase when they met on Monday evening.

After voting to approve the purchase of the 2025 Spartan/Smeal 100-foot Mid-Mount Platform Quint during its previous meeting on April 24, city council decided to revisit the question of either borrowing funds to finance the purchase or dipping into the city's investment portfolio to pay cash for the vehicle. A special finance committee meeting was held prior to this past Monday's regular council to discuss the borrowing versus paying cash options.

Councilmen Ayers Ratliff, 2nd Ward, and Aaron Rollins, At-large, were among those who opposed borrowing money to pay for the fire truck. Rollins is a member of city council's finance committee.

After consulting with Auditor Miranda Meginness over the past week, on Monday, the finance committee decided to finance the purchase through Community Leasing Partners for a term of 10 years, per terms of the ordinance. Payments will commence on Aug. 1, 2024, and will be made from funds generated by the 2.75 mills property tax levy that city voters approved during the Nov. 8, 2022, general election. Meginness said the city will not incur any interest on the loan until the payment period begins on Aug. 1, 2024.

Despite some members of city council urging that the city use money from investments to pay for the new fire truck, Meginness had previously advised against doing that due to the fact that Marion's bond rating had been withdrawn by S&P Global Ratings in mid April. Mayor Scott Schertzer said the city's investment advisers also advised against "exhausting the investment portfolio" to purchase the fire truck.

"This is a situation where the city is better served to actually use somebody else's money to get this fire truck rolling," Schertzer explained. "After speaking with our investment advisers, this is the best scenario that we can go after."

Schertzer further advised that city council pay off the loan as soon as possible once funding from the fire levy passed in November 2022 becomes available. The levy commenced this year and will become due in 2024, according to the ballot language voters approved last fall. Per terms of the loan agreement, there is no penalty for paying off the loan early, Meginness said.

The mayor noted that while city council members might think the purchase of the fire truck at a price of nearly $2 million is "big," there is a "bigger prize" in the fire department's future: a new facility to replace the 111-year-old main fire station on Prospect Street. Construction of a new main fire station is estimated at approximately $9 million, according to figures provided last year by Marion Fire Chief Chuck Deem, but that figure is expected to increase.

"The big prize is a firehouse," Schertzer said. "That's what we have to look for next. That's why you should not cash out anything in your investment portfolio. Because you don't know what's next; you don't know what the economy is going to do. You may have to have 10% down to get a better interest rate (for a loan to fund construction of the new firehouse). You may have to look to your investment portfolio at that time when the time comes. If you cash out $2 million dollars now, the chances of you having it when you need, it won't be there."

The base price of the new truck is $1,665,500. The total purchase price of the vehicle will be $1,740,500, which includes $75,000 for the purchase of the necessary ancillary equipment.

The ordinance adopted by city council on April 24 "approves the appropriation of $9,484 from the general fund for securing a performance bond which is required by the manufacturer prior to the execution of the loan. These funds are to be returned to the General Fund once they become available from the fire department tax levy," according to the ordinance. Delivery of the new fire truck is anticipated by late August of 2025, Deem said.

The new truck will replace the aging Ladder 24, which Deem said is a 2004 Smeal 85-foot Mid-Mount Platform Quint. The chief noted that Ladder 24 is 19 years old and is experiencing the same rust jacking issues that condemned Engine 21, which had to be taken out of service last year.

Upcoming council schedule

Marion City Council will conduct committee meetings beginning at 6:30 p.m. on Monday, May 15 at City Hall.

The next regular council meeting is scheduled for 6:30 p.m. on Monday, May 22 at City Hall.

To see the schedule and agendas for Marion City Council meetings, go to the City of Marion website www.marionohio.us.

Email: ecarter@gannett.com | Twitter: @AndrewACCarter

This article originally appeared on Marion Star: City council approves financing plan for new fire truck