City of Cranbrook council Nov. 26 unanimously agreed to authorize city staff to borrow $690,000 for the purpose of funding the acquisition of a Fire and Emergency Services fire engine truck.

The purchase of the fire engine truck was approved by Council during budget deliberations and is included in the city’s Five Year Financial Plan in 2017.

“The fire engine truck needed to be replaced to meet the insurance industry requirements. Fire apparatus is only recognized by the insurance industry for 20 years, therefore the recognition period expired at the end of 2015. The city tendered the CF&ES and received three bids, with the successful bidder coming in at $689,076 including PST,” reported a city Finance Department report by Charlene Courtney.

“The short term borrowing will be under MFABC’s equipment financing program. Short-term borrowing is available to municipalities under section 175 of the Community Charter – Liabilities under agreement. MFABC’s current floating rate for short term borrowing is 2.58%,” Courtney outlined.

Debt servicing will commence in December, council learned.

The annual principal and interest payment over the five-year term of the loan is estimated to be $147,277. The estimated impact of this borrowing to a residential taxpayer will be an increase to the general municipal tax levy of approximately $4.26 per $100,000 of assessed value.

Cranbrook Fire and Emergency Services Acting Director of Fire and Emergency Services Scott Driver told council three bids were received, all coming within $75,000 of each other. And all three bids were from Canadian companies.

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