Despite a $250,000 contribution from Ohio University to help offset the cost of a new $1.1 million ladder truck, Athens City Council decided to borrow an additional $400,000 last night to pay for the vehicle.
In September, OU President Roderick McDavis announced the university will give $50,000 a year for the next five years to help pay for the fire truck.
Kathy Hecht, city auditor, posed two payment options to council at last night’s meeting. The first plan would completely pay off Athens’ contribution in one payment from the city’s general fund, and the second would be to borrow money from a local bank.
Council concluded that borrowing money would be the best option for the city. The loan would total $400,000 with a .45 percent interest rate. The council anticipates paying back the loan will take about five years.
“In a year, when we have to start paying, our payment will most likely come from the General Fund,” said Hecht. “The truck’s first payment is for $640,000, and there will be a second payment bringing the total to just above a million dollars.”
Mayor Paul Wiehl supports the decision to borrow the additional money, saying the loan is the more prudent course of action.
“This gives us a cushion for the money,” Wiehl said. “We probably have the money but we don’t want to run short. And the loan isn’t all that egregious.”
In addition to the payment decision, Councilwoman Nancy Bain insisted upon speedy discussion and adoption of ordinances during next week’s meeting regarding city insurance.
These ordinances cover multiple aspects of insurance coverage for Athens residents. The legislation to be discussed includes increasing stop loss, modifying monthly premiums and third party management and oversight of drug costs for the city’s drug coverage.
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