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.