Lake Bouchie residents urged to support CRD’s plan to borrow money for a new fire truck

Another approval process is underway asking Bouchie Lake residents to support the Cariboo Regional District’s plan to borrow money over 10 years to purchase a new fire truck.

Barb Bachmeier is the CRD Manager for Zone B.

“Insurers require a fire truck to be replaced every 20 years. If it is not replaced, insurance underwriters will not discount home insurance for people who are within 5 miles of a fire station. So this is a regulatory thing that we actually need to update the truck.

Bachmeier says the alternative approval process will run from now until July 5.

“If 10% of the people vote no, which requires 184 people to fill out a form and say no, we’ll have to buy it over 5 years because we have to buy the truck.”

Borrowing money for up to five years does not require taxpayer permission.

Kevin Erickson, CRD’s Chief Financial Officer, explains why he opted for a longer loan term.

“The use of 10-year financing is intended to improve cash flow and direct more money to reserves. Annual payments under 5-year financing are $65,722. Annual payments under 10-year financing are of $33,723, freeing up $31,199 to be transferred to reserves.The money will be available for future capital purchases and reduce the need to fund them.

The total cost of the fire truck is $545,000.

The amount financed can be as high as $350,000, with the rest of the bill paid with reservations.

Comments are closed.