Title
Consider an ordinance authorizing the issuance of City of Killeen, Texas, Limited Tax Note, Series 2022 for Fire Department equipment.
Summary
DATE: November 8, 2022
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Interim Executive Director of Finance
SUBJECT: Fire Vehicle and Equipment Tax Note
BACKGROUND AND FINDINGS:
This ordinance is for the issuance of a limited tax note to purchase four (4) fire replacement vehicles and associated equipment and one (1) new additional ambulance for Fire Station #4. The Fire Department has fifteen (15) large vehicles and four (4) of these vehicles are past their scheduled replacement date. The tax note will purchase the four (4) replacement vehicles that are behind schedule in addition to the ambulance required for the new Fire Station #4.
The five (5) vehicles and associated * costs are:
Year
Vehicle Description
New Vehicle Cost
Quantity
Total Cost
1996
Pumper Truck
$924,320|1010|$924,320
2001
Pumper Truck
$802,902|1010|$1,607,804**
2008
Aerial Ladder Truck
$1,888,122|1010|$1,888,122
FS#4 Ambulance
$446,145|1010|$510,200***
Total Cost
$4,930,446
*The 5 new vehicles will come fully equipped with necessary tools and equipment.
**Includes $2,000 HGAC cooperative fee for all Siddons-Martin purchases.
***Includes $600 HGAC cooperative fee for the Sterling McCall purchase.
The Texas Government Code, Chapter 1431, and the City's Financial Governance Policy authorize the issuance of tax notes.
The tax note will be repaid over a seven-year term with an estimated annual debt service payment of $820,000. The fund balance in the Debt Service Fund is currently estimated to be $4,721,823 at fiscal yearend 2022 and must be used towards the retirement of debt. Fund balance accrues when more revenue is received than budgeted and/or when expenditures are less than budget. The tax note will be repaid with a combination of accumulated fund balance and expiring debt in the Debt Service Fund. There is no chan...
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