Fire Apparatus Financing: Know before you ask

How much egg would you have on your face if you successfully received new funding for a new truck and then learned it wasn't enough?
Well that happened to a client just last week.

Here's the background:
The department requested more funds from their township. They provided an amount that they thought would be enough. They bid trucks and selected and signed a truck contract feeling very positive.

Then, the department learned that they did not ask for enough money. They guessed at the truck cost which came in much higher. They still signed the contract because they wanted the truck without thinking of how they would pay for the extra costs.

When the department started receiving financial proposals, they learned that they would have to clean out their savings accounts to have a payment that fits with their new revenue.

Here's their current status:
The department is now faced with 1 of 3 bad choices.

1. Go back to the township and ask for more money
2. Invest all the department's savings into this truck and eliminate its rainy day fund, or
3. Cancel the truck contract and pay a $25,000 cancellation charge

Summary
When your purchase plans include a request for new funds from voters or your local government, do your homework so that you have a plan that works. Understand how much a payment will be, keep your truck price within the budget, and don't sign a truck contract until you have financing in place.


Stay safe!

John R. Hill
Apparatus Budgeting Consultant
ENVIZION Financial
www.envizionfire.com