City of Cornelius (OR) Receives Grant for Fire Apparatus

The City of Cornelius will prepay 80 percent of the cost of a new tender fire truck after it received a reimbursable grant that requires it to pay for the vehicle upfront and seek reimbursement later.

The city should receive the customized truck, which will replace an aging model already in the fleet, by February 2015, Drake said. When it does, the city will pay the remaining $63,678 of the truck’s $331,292 total cost and follow up with a request for reimbursement.

By prepaying $267,614, the city can get a $3,226 discount on the truck’s total cost. Because the city’s general fund does not currently have sufficient monies for a prepayment of this size, it will borrow from its own water fund, which has a surplus consisting of savings for a new underground water storage system.

When the general fund receives property tax payments toward the end of the year, City Manager Rob Drake foresees it having enough money to repay the inter-fund loan, including a generously estimated $500 in interest.

Even after the additional interest, this early payment will save the city approximately $2,700.

 

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