eum COUNCII OCT 23 1978 Mayor and Council October 20th, 1978 Finance Committee Re: Purchase of Fire Truck . The Finance Committee met recently to discuss the method of financing for the proposed fire truck purchase. The Committee had been reviewing two options - either a Lease, or purchase by way of Five Year Capital Borrowing. The Committee has concluded that the Five Year Lease would not be advantageous at this time because of the high interest rates. We would be locked into the present high interest rate for a period of Five years under a lease, whereas under Five Year Capital Borrowing, if the rate dees come down, the borrowing costs would be reduced accordingly. The Committee was not yet fully satisfied with the urgent need to purchase this vehicle, towever, they have recommended that we proceed to get authority from Victeria for the necessary Five Year Capital Borrowing By-law and once the Bids hzve been received, and we know the price of the unit and the alternatives on financing, that a decision be made at that time. ; A Five Year Capi-:al Borrowing By-law will be prepared and submitted to Council for three readings for the next meeting of Council.