An alternative approval process is underway that asks 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 Director for Area B.
“The insurance underwriters require that a fire engine needs to be replaced every 20 years. If it isn’t replaced then the insurance underwriters won’t discount people’s homeowner insurance if they’re within 8 kilometres of a fire hall. So it’s a regulatory thing that we actually need to update the truck.”
Bachmeier says the alternate approval process will run from now until July 5th.
“If 10 percent of the population votes it down, which requires 184 people to actually fill out a form and say no, than we would have to purchase it over 5 years because we do have to purchase the truck.”
Borrowing money up to five years does not require the permission of taxpayers.
Kevin Erickson, the Chief Financial Officer with the CRD, goes over the rationale for going with the longer borrowing term.
“Use of 10 year financing is 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 $33,723, freeing up $31,199 to transfer into reserves. The money will be available for future capital purchases and reduce the need for financing of them.”
The total cost of the fire truck is 545 thousand dollars.
The amount being financed is up to 350 thousand dollars, with the rest of the bill being paid for with reserves.