Saginaw officials plan to pay nearly $700,000 in annual payments over the next decade to finance several large vehicle and equipment purchases.
Saginaw City Council gave city administrators approval to borrow up to $694,872 under the financing plan.
The financing plan will cover the purchase of a new fire truck, a front-end loader and two pickup trucks.
Public Services Director Phil Karwat said the new front-end loader is desperately needed to replace a 34-year-old piece of equipment that is “pretty much inoperable.”
The new pickup trucks will also have plow attachments, which Karwat said will allow city crews to more quickly and efficiently remove snow from city streets.
He said funds are already budgeted to make annual payments of about $45,000 on the three pieces of equipment. None of that money, Karwat said, will come from Saginaw’s general fund.
Acting Fire Chief Christopher Van Loo said a 34-year-old fire engine is costing the fire department thousands of dollars in repairs and needs replacing.
He plans to replace the pumper truck with a new one for $330,490. Including the cost of interest on the financing plan, it would amount to 10 annual payments of $39,559.10 each for the fire department.
Van Loo said that the savings realized in decreased maintenance costs, coupled with other cost savings and efficiency efforts, will allow the department to make those annual payments from the money budgeted for equipment maintenance.
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