Meetings
 


City of Helena, Montana
 
February 23, 2021
To: City Manager Harlow-Schalk; Mayor Collins; City Commissioners
From: Sheila Danielson - Finance Director
Subject: Fire Truck INTERCAP Loan
Present Situation:

The City of Helena Commissioners approved the purchase of an Aerial Platform Ladder Fire Truck in the Fiscal Year 2021 Budget. The Fire Department provided Finance with a quote for the fire truck from Hughes Fire Equipment in the amount of $1,323,089. By paying the vendor upfront, the city will save $67,589 from the total cost of the equipment.

The City desires to apply for a Montana State Board of Investments INTERCAP Loan to partially fund the truck in the amount of $780,000. This represents our maximum allowed borrowing capacity under MCA 7-7-4104. The current borrowing rate is 1.65%. Loan payments are due on February 15th and August 15th and are estimated to be $42,466 or $84,932 annually.

The Funding source for both the balance of Fire Truck and debt service payments come from Fund 260 – Fire Safety Levy. Based on a cash flow analysis over ten years, the fund is expected to support the capital outlay and the payments and maintain a reasonable fund balance reserve.
Proposal/Objective: No Action needed. The purpose of this item is to ensure that the Commission and Community are aware of the completion of the work necessary to participate in the INTERCAP Loan Program for $780,000 to finance the Fire Ladder Truck as approved and adopted in the FY2021 budget.
Notice of Public Hearing: N/A
 
ATTACHMENTS:
Exhibit A - Hughes Fire Equipment Ladder Truck Quote
Exhibit B - Fund 260 Rev & Exp Projection with Fire Truck Purchase
Exhibit C - MCA 7-7-4104 Borrowing Capacity Calculation