tag:blogger.com,1999:blog-3792998846778561802012-02-01T07:54:00.568-05:00If you fear the unexpected while preparing to purchase and finance your new apparatus, This website is dedicated to helping you cut through the maze of complex (and sometimes deceptively simple sounding) financial choices which can put you in a financial trap!John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.comBlogger2041100tag:blogger.com,1999:blog-379299884677856180.post-13091749048735645352012-02-01T07:54:00.001-05:002012-02-01T07:54:00.585-05:00

Last week we showed how one department refinanced their aerial loan, lowered their rate, and wasted over $62,000.This week, we'll show you what they could have done smarter and would have saved them money.BackgroundThe Department lowered their rate by almost 2% but paid almost $68,000 in fees for the new loan. These fees wiped out any savings from the lower rate. The refinancing bank was only

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-60586790098571126012012-01-25T08:06:00.003-05:002012-01-25T08:20:27.470-05:00

The primary goal of refinancing your fire truck lease or loan is to save money. And if you measure the wrong things, you may end up paying more.Let's hear the story of fire department who got a lower interest rate but paid a lot more money.The department owed about $702,000 on an aerial.They had 14 years remaining and the interest rate was about 5.0%.The department received an interest rate to

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-27201850591751643682012-01-18T08:11:00.002-05:002012-01-18T08:11:00.193-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.We advised that Total Borrowing Cost is the best method to compare financing offers. Now, how do we use Total Borrowing Cost to save money?All facts are not the truthEveryone knows to ask about the interest rate, but can

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-49371788455705664922012-01-11T08:00:00.001-05:002012-01-11T08:00:15.023-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.We advised that Total Borrowing Cost is the best method to compare financing offers. Now, how do we use Total Borrowing Cost to save money?Timing is everythingI'll let you know the smallest tweak with a large bang in

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-44416835151134946172012-01-04T08:04:00.000-05:002012-01-04T08:04:00.253-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.We advised that Total Borrowing Cost is the best method to compare financing offers. Now, how do we use Total Borrowing Cost to save money?Time IS money.Almost all fire departments request 3, 5, 7, or 10 years to finance

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-44968405813455760452011-12-28T08:07:00.002-05:002011-12-28T08:07:00.532-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.We advised that Total Borrowing Cost is the best method to compare financing offers. Now, how do we use Total Borrowing Cost to save money?Use your savings wiselyMost financial experts recommend a rainy day fund from 6 to

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-20055211885175248142011-12-21T07:58:00.002-05:002011-12-21T09:07:49.326-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.Last week, we advised that Total Borrowing Cost is the best method to compare financing offers. Now, how do we use Total Borrowing Cost to save money?Total Borrowing Cost includes everything you will pay for. And it is

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-15381840437594804342011-12-14T07:58:00.004-05:002011-12-14T07:58:00.718-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.Here's the information to save the most moneyWhen receiving fire truck lease or loan financing offers, request the Total Borrowing Cost. This is the total amount you'll pay to finance your fire truck.It should include

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-39690303238413678152011-12-07T08:08:00.003-05:002011-12-07T08:08:01.084-05:00

Most departments get the wrong information in trying to save money for a lease or a loan for their fire truck. They want to know how to save $$$ but they only ask about the %.Why departments ask for the wrong information.Almost every department who calls asks "what is the interest rate?" when they are trying to ask "how can we pay the least money?".Since their only borrowing experiences are for

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-63189343416211654652011-11-30T07:43:00.003-05:002011-11-30T07:43:00.385-05:00

A final and arguably the largest factor affecting the housing market is employment. Or unemployment or underemployment.When people don't have jobs or earn what they should, they will not make major purchases like homes.Since fire department revenues are closely matched in some way with housing prices, a continued high unemployment rate will drag on housing and therefore, fire department revenues

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-403060508022395852011-11-23T08:05:00.003-05:002011-11-23T08:05:00.125-05:00

What the experts are saying about the future economyThe 10 year US Treasury interest rate is about 2% as of the writing of this article.What does that mean?It means that very savvy investors look at the next 10 years and are satisfied to earn 2% return on their investment. Think about that. They feel that earning 2% is their best investment choice. And that they will stay ahead of inflation

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-16926866919319353362011-11-16T08:02:00.001-05:002011-11-16T08:02:01.436-05:00

Last week, we reviewed why property values are expected to stay depressed for quite a few years before they recover and grow.What is the other reason that revenues will be hard to increase over the next few years?If values are lower to flat, many departments can raise levies or fees to increase their revenues. The problem is that there is a huge anti-tax movement in this country. Just in the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-15544128368486849262011-11-09T08:06:00.003-05:002011-11-09T08:06:00.185-05:00

It's no secret that economic troubles are front and center right now.But, how long will this last? And what does experts say about the situation?Be prepared for a sustained downturnMost departments are funded by some form of income related to property values. Property values rose far faster than inflation during 2000 -2005. This caused revenues to rise quickly but resulted in a unsustainable

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-64650282938410963912011-11-02T07:51:00.004-04:002011-11-02T07:51:00.496-04:00

I've seen a resurgence in departments considering turn-in, trade-in, or walk-away leases. There are a lot of myths out there and we'll explore a few.Myth #1 - They are more flexibleThey are , in fact, less flexible. In these type of financing contracts, you are obligating yourself to more terms and conditions. You are also forcing yourself to do something when the time comes to turn-in,

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-201306959419979652011-10-26T07:58:00.001-04:002011-10-26T08:37:17.288-04:00

I've seen a resurgence in departments considering turn-in, trade-in, or walk-away leases. There are a lot of myths out there and we'll explore a few.Myth #3 - They are simplerThese descriptions are often described very simply. You just use the truck for 5 or 7 year, make your payments, and then turn the truck in or walk away.Can it really be so simple? Well, like most things, the devil is

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-35482238412397711422011-10-19T08:11:00.003-04:002011-10-19T08:11:00.290-04:00

I've seen a resurgence in departments considering turn-in, trade-in, or walk-away leases. There are a lot of myths out there and we'll explore a few.Myth #2 - They are cheaperWhen this myth is spoken, it is couched in a somewhat deceptive comparison. Usually, the 5 or 7 year turn-in payment is compared to a 5 or 7 year traditional lease.The undisclosed fact is that with a traditional lease,

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-92161229458970949962011-10-12T08:04:00.003-04:002011-10-12T08:04:00.158-04:00

I've seen a resurgence in departments considering turn-in, trade-in, or walk-away leases. There are a lot of myths out there and we'll explore a few.Myth #1 - They are more flexibleWhen this myth is spoken, its about the operational flexibility rather than the financial flexibility. Manufacturers sell this sophisticated financial device so that you can get a new truck in 5 or 7 years if you

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-78501231406891131152011-10-05T08:01:00.001-04:002011-10-05T08:01:00.405-04:00

Just in the past week, I've read stories about financial mismanagement at 10 different fire companies. One department lost over $100,000!These stories not only damage the reputation for the fire department with the embezzlement, it hurts the entire industry. When departments need to approach the public for more or continued funding, stories like these jeopardize the trust relationship between

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-57470247498608302232011-09-28T07:47:00.001-04:002011-09-28T07:47:00.166-04:00

I get a lot of emails when I write about expressing the value of your department. Most seem confused, some belligerent, and some understand.Here is why communicating the value of your department is so important.Your budget will getting smaller. A real estate based recession hurts fire department budgets right where they get their funding. All economic signs point to a sustained recession in

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com1tag:blogger.com,1999:blog-379299884677856180.post-12935672034066578952011-09-21T08:07:00.001-04:002011-09-21T08:07:00.648-04:00

Given the economic troubles and the higher cost of fire apparatus, there has been a trend in financing terms. And this trend can pose much trouble for many departments in the future.What is the trend?The trend is for departments who extend their loan terms for longer periods. If your department has financed for 5 years, its now 7 or 10 years. If your department financed over 10 years, it's now

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-43588909431307911622011-09-14T08:01:00.001-04:002011-09-14T08:01:00.212-04:00

In today's economy, every fire department must possess a new skill to survive. It's the ability to portray their needs in financially compelling terms.Today, it's all about the money. In the past years, fire departments could base a purchase/replacement decision on the operational merits alone (the truck is over 20 years old, there are new standards, it's unsafe, etc.). Those arguments won't

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-4116568184324838092011-09-07T07:48:00.002-04:002011-09-07T07:48:00.586-04:00

Most fire departments make a fatal fire truck financing mistake that costs them thousands of dollars. What is the mistake? They compare the wrong information.The conventional wisdom (and wrong) way.I hear from departments every day who ask and compare interest rates to get the best deal. This gives the department bad information in a couple of different ways:Interest rates can be legally

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-76953754870271240572011-08-31T08:07:00.002-04:002011-08-31T08:07:00.357-04:00

Interest rates are at all-time lows. You may be able to re-capture some budget by refinancing your existing fire truck leases or loans. So, what refinancing blunders do some fire departments make that actually costs them money? Here are the top 3: Extend the repayment period. When you refinance, keep the same years until your loan is paid off. When you add more years, you pay more interest.

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-44947370217049582112011-08-24T08:07:00.002-04:002011-08-24T08:07:00.277-04:00

With an apparent prolonged economic downturn forecast for fire departments, have you considered how this will affect your fire apparatus manufacturer? A long-term relationship Departments and manufacturers have long-term relationships. Your department will own a new fire truck for 10 or more years (some twice that long or more). Your department will depend upon the safety net promised by the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-43032387595182383072011-08-17T08:14:00.001-04:002011-08-17T08:14:00.821-04:00

The time to borrow money for your fire truck is now. Interest rates have fallen to the lowest point since the fire trucks were first leased in the late 1970's. A very supportable business case If you are trying to convince your board to buy, the costs of buying a financing a fire truck have never looked more attractive compared to the cost of upkeep and repairs of older, unsafe, and unreliable

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-2418556010282731472011-08-10T08:05:00.001-04:002011-08-10T08:05:00.090-04:00

Is your department ready to borrow money? Big problems if you're not. Just last week, I received a call from a department who had signed a truck contract and was expecting the chassis to be delivered in a few weeks. They were excited about their first new truck and had never borrowed money before. Unfortunately, they had quite a few problems that prohibited them from borrowing money. Here

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-89930206210610399782011-08-03T08:22:00.001-04:002011-08-03T08:22:00.766-04:00

I received a call from a department the other day and their story is very enlightening about how fire departments waste a lot of money when financing a fire truck.Here's what this "smart" department did wrongThe department was buying a $500,000 pumper and wanted to put about $100,000 down. They had $100,000 budgeted in next year's budget so they declared what they wanted.The department was

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com1tag:blogger.com,1999:blog-379299884677856180.post-31696220679016001612011-07-27T01:52:00.001-04:002011-07-27T01:52:00.183-04:00

According to the NFPA, there were 30,165 fire departments in the U.S. in 2009. Given a tough economic environment, public cry for less costly government services, and a nation-wide trend of volunteer labor being replaced by paid fire fighters, providing fire service in this country is under tremendous pressure to become more efficient.The fire service industry closely resembles

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-90652324191916066322011-07-20T07:50:00.001-04:002011-07-20T07:50:00.492-04:00

According to the NFPA, there were 30,165 fire departments in the U.S. in 2009. Given a tough economic environment, public cry for less costly government services, and a nation-wide trend of volunteer labor being replaced by paid fire fighters, providing fire service in this country is under tremendous pressure to become more efficient.The fire service industry closely resembles many

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-90524933543403368952011-07-13T08:11:00.002-04:002011-07-19T08:51:33.976-04:00

According to the NFPA, there were 30,165 fire departments in the U.S. in 2009. Given a tough economic environment, public cry for less costly government services, and a nation-wide trend of volunteer labor being replaced by paid fire fighters, providing fire service in this country is under tremendous pressure to become more efficient.The fire service industry closely resembles many

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-9594989111418998952011-07-06T08:08:00.003-04:002011-07-06T08:08:00.683-04:00

According to the NFPA, there were 30,165 fire departments in the U.S. in 2009. Given a tough economic environment, public cry for less costly government services, and a nation-wide trend of volunteer labor being replaced by paid fire fighters, providing fire service in this country is under tremendous pressure to become more efficient. The fire service industry closely resembles many other

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-48373064195371127012011-06-29T07:52:00.003-04:002011-07-19T09:01:19.472-04:00

According to the NFPA, there were 30,165 fire departments in the U.S. in 2009. Given a tough economic environment, public cry for less costly government services, and a nation-wide trend of volunteer labor being replaced by paid fire fighters, providing fire service in this country is under tremendous pressure to become more efficient.The fire service industry closely resembles many other

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-61163104528650755302011-06-22T07:51:00.001-04:002011-06-22T07:51:00.222-04:00

I talk to fire departments every day who are falling farther behind economically. They can't get enough revenue to safely equip and protect their firefighters or their community. They are fighting with outdated, obsolete, and unsafe fire trucks and equipment.The current economic troubles are simply hastening pre-existing trends.Fire departments are struggling with higher costs at the same time

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-5814091557054605272011-06-15T07:57:00.006-04:002011-06-15T07:57:00.094-04:00

Most fire departments rely in some way upon property values in their community for the majority of their funding. And the news keeps getting worse...The housing economy has officially entered a "double-dip" - meaning that home values are now lower than the previous low point in 2009. Unemployment remains high, housing starts are essentially zero, and home sales are stalled. Also, there is a

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-91730311039261458642011-06-08T07:59:00.004-04:002011-06-08T07:59:00.319-04:00

Another very bad financial practice: Not having checks and balances in your accounting system.It's in the headlines frequently. A fire department whose officer stole some money.It's a black eye for the department and can be financially deadly. Why does this happen?It becomes easy to depend on just one person to handle the department's books - especially when volunteers are hard to come by and

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-79957869896081169172011-06-01T08:11:00.004-04:002011-06-01T08:11:00.160-04:00

What is the #1 thing that financially hurts fire departments? It's not utilizing a quality budget process.Just this week, I observed another department who is heading into trouble because they don't use a budget to govern themselves.Read about a Department who is making this mistakeThe Department receives about $200,000 from various county, state, and donation sources. The Department is also

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-734435363008910672011-05-25T08:18:00.004-04:002011-05-25T08:18:00.094-04:00

Last week, I discussed a very common financing blunder which hurts safety.The blunder is not considering the effect of the current purchase upon future purchases. This means buying and financing a truck today in in such a way that it prevents the next fire truck purchase.Here's how to avoid this blunder.Have a comprehensive, multi-year fleet replacement plan. Know what you need and when you

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-20491673472551185892011-05-18T08:09:00.004-04:002011-05-18T08:09:00.211-04:00

I hear weekly from departments who are suffering from this common blunder.What is the blunder?It's selecting, buying, and financing a fire truck today in such a way that prevents the next fire truck purchase.What this blunder looks likeA department selects a truck that they want. It may cost a little more than they had planned for but choose a longer financing term so that the payment fits into

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-22578023709514633682011-05-11T08:01:00.002-04:002011-05-11T08:01:00.605-04:00

Most fire departments spend a lot of money that could be spent wiser. This might have been OK during flush budget times but can be an effective way to demonstrate financial stewardship in today's (and for the foreseeable future) tight economic times.Buying for "peak" events can be very expensive. What I mean by this is buying apparatus and equipment for rare events and letting valuable budget

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-79222175448113730282011-05-04T07:44:00.002-04:002011-05-04T07:44:00.118-04:00

Why the public doesn't understand your department's valueWhen you think about it, fire departments (thankfully) touch only a small percentage of its paying "customers". Most people go through each year without a fire or accident that requires fire or ems service.So, they don't get a chance to see the fire department's value in action.I assume you ask anyone who had a house fire if their fire

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com2tag:blogger.com,1999:blog-379299884677856180.post-35406000208088454922011-04-27T08:08:00.003-04:002011-04-27T08:08:00.039-04:00

I received a number of calls and emails about my "value" series of a few weeks ago. The biggest question was:Why does my fire department need to demonstrate its value?Most people will complain that their taxes are too high. So, it seems like a "pricing" problem - towns, fire districts, etc. charge too much.I contend that its a value problem. Your customer does not feel its getting the value it

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-42804095575670718102011-04-20T08:03:00.001-04:002011-04-20T08:03:00.776-04:00

There is a movement toward consolidating fire departments across the U.S. What are the financial implications of this trend?I'm not qualified to comment on the operational or safety issues with consolidated departments. I can only speak professionally on the financial matters.Most politicians see consolidation as a way to reduce or eliminate the cost of fire protection. They think the cost of

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-56224853395809819842011-04-13T07:50:00.003-04:002011-04-13T07:50:00.461-04:00

Fire department budgets are under pressure today. The question becomes - can we just hunker down and survive this mess?The odds are against that strategy. All economic indicators show that housing prices will remain, at best, only stable for quite a few years.The reasons this won't go away anytime soon?Unemployment is still high and is projected to stay high for some time. Even the President's

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-4592038005778937062011-04-06T08:04:00.002-04:002011-04-06T08:04:00.286-04:00

Over the past few weeks, I discussed what successful fire departments are doing to get funding in today's economy.In summary, fire departments now require a new skill - promoting their value. The old days where fire departments were admired (and funded) simply because they were fire departments are gone. There are new economic realities and fire departments must adapt to survive.Departments

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-54133424080941788282011-03-30T08:02:00.003-04:002011-03-30T08:02:01.148-04:00

Every day I talk with departments who desperately need new fire apparatus and can't buy it. Why? They can't promote their value.Part 5 - Bang for the buckIn most communities, the cost of fire service is rather small. Even so, the price of a new apparatus seems very large when presented in one large amount. Most people read a newspaper story that the fire department just bought a $400,000 or

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-46056211373226964162011-03-23T07:53:00.001-04:002011-03-23T07:53:00.511-04:00

Every day I talk with departments who desperately need new fire apparatus and can't buy it. Why? They can't promote their value.Part 3 - Don't be shyMost of the people in your community never use the fire department in any given year. So, they look at the department as an expense rather than an essential resource for your community.Successfully-funded fire departments reach out to the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-46661266079899894202011-03-16T08:09:00.005-04:002011-03-16T08:09:00.196-04:00

Every day I talk with departments who desperately need new fire apparatus and can't buy it. Why? They can't promote their value.Part 3 - Every decision has a costEveryone assumes that doing nothing is free. But nothing is free.A good factual case compares the cost of buying a truck versus the cost of not buying a truck. Not buying does have a cost.A good case includes the costs of waiting.

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-41768024986323296712011-03-09T08:10:00.004-05:002011-03-09T08:10:00.067-05:00

Every day I talk with departments who desperately need new fire apparatus and can't buy it. Why? They can't promote their value.Part 2 - Trust is a mustLast week, we explored the necessity of building a factual case to support your budget needs. This week, we'll explore the foundation of an effective case.Trust. You can't fake any information or slant your argument by withholding any key

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-13648536762422700332011-03-02T08:03:00.006-05:002011-03-02T08:03:00.044-05:00

Every day I talk with departments who desperately need new fire apparatus and can't buy it. Why? They can't promote their value.Part 1 - It takes facts nowdays, not appealsWhen you are asking a committee, council, or finance director for money, you are not the only one asking for money. And those people aren't flush with money so they have to choose which request seems most worthy.So, a

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-47920417566558567142011-02-23T08:08:00.005-05:002011-02-23T08:08:00.164-05:00

North Chilton - worried about payment amount instead of overall borrowing cost and paying extra by refinancing and extending term.Readers of this column know that basing a financial decision on interest rate alone is a mistake. Here's another common financial mistake that department's make every day.Department focus on the payment amount rather than the Total Borrowing Cost or how the purchase

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-68568537591650715112011-02-16T07:48:00.003-05:002011-02-16T07:48:00.083-05:00

Do you feel more like a problem rather the solution? The fire service industry has experienced a rather rapid 180 degree turn in public perception.Post - 9/11, fire fighters were heroes. Brave men and women who fought for their communities. Today, fire fighters are viewed as "costs" and "liabilities". So, what happened?The fire service industry forgot it had to explain why it exists and the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-41488644203146424242011-02-09T14:30:00.002-05:002011-02-09T14:30:01.045-05:00

Are you one of the thousands of fire departments who has been waiting for years for a FEMA grant? Is it possible that the grants have actually made the fire service industry less safe?I talk every day with departments who are hoping to win the lottery and receive a FEMA grant for a new truck. Sometimes, they have been applying and waiting for years.While departments wait for a grant, the truck

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-74658529861927808052011-02-02T07:47:00.002-05:002011-02-02T07:47:00.351-05:00

Every single day, inexperienced borrowers call up and ask dumb questions. This series will examine the Top 5 dumb fire apparatus financing questions.The person asking them isn't dumb, they are just inexperienced. The reason the questions are dumb is that most people don't know what to do with the answers.Dumb question #5 - Can I trust you?It's important to read and understand exactly

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-17453765146620393502011-01-26T07:58:00.003-05:002011-01-26T07:58:00.293-05:00

Every single day, inexperienced borrowers call up and ask dumb questions. This series will examine the Top 5 dumb fire apparatus financing questions.The person asking them isn't dumb, they are just inexperienced. The reason the questions are dumb is that most people don't know what to do with the answers.Dumb question #4 - Is there a prepayment penalty?The reason this is a dumb penalty is

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-87989658430343704692011-01-19T08:02:00.002-05:002011-01-19T08:02:00.576-05:00

Every single day, inexperienced borrowers call up and ask dumb questions. This series will examine the Top 5 dumb fire apparatus financing questions.The person asking them isn't dumb, they are just inexperienced. The reason the questions are dumb is that most people don't know what to do with the answers.Dumb question #3 - What's the longest term?This question is asked very often. The

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-22898212676010223582011-01-12T07:55:00.005-05:002011-01-12T07:55:00.218-05:00

Every single day, inexperienced borrowers call up and ask dumb questions. This series will examine the Top 5 dumb fire apparatus financing questions.The person asking them isn't dumb, they are just inexperienced. The reason the questions are dumb is that most people don't know what to do with the answers.Dumb question #2 - Is a down payment required?The reason this is a "dumb" question is that

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-28180567077094109062011-01-05T08:03:00.009-05:002011-01-05T08:03:00.183-05:00

Every single day, inexperienced borrowers call up and ask dumb questions. This series will examine the Top 5 dumb fire apparatus financing questions.The person asking them isn't dumb, they are just inexperienced. The reason the questions are dumb is that most people don't know what to do with the answers.Dumb question #1 - What's your interest rate?Experienced borrowers know that the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-35303914837535139332010-12-29T08:07:00.002-05:002010-12-29T08:07:00.240-05:00

Most departments have not ever had to operate in an economic climate such as what we are experiencing now. And the cause of this downturn hits departments right where they receive most of their funding - property values.Last week, I talked about the essential need to know what it takes to operate your fire department within its means.But what warning signs can you develop in your budgeting

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-50666888284256068242010-12-22T07:59:00.003-05:002010-12-22T07:59:00.171-05:00

Most fire departments are funded in some way by property values. And with the implosion of real estate values nation-wide and current unemployment rates almost 10%, the likelihood of a quick recovery seem remote. Since tax collections are a lagging economic activity, it will still be a year or more after the "recovery" that municipal budgets will grow.What is a fire department to do to survive

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-82702655261334637312010-12-15T08:03:00.003-05:002010-12-15T08:03:00.622-05:00

Your department is buying a $300,000 truck and financing it for 10 years at 4% (fairly normal transaction currently). Your department will pay annual payments of $36,987 for a total of payments of $369,872. The total borrowing cost is $69,872.In 3 easy steps, I'll show you how to save $20,541 in interest costs. This means you'll lower your borrowing cost by 29 %.Make a 10% down payment (

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-56032468009068265312010-12-08T08:15:00.005-05:002010-12-08T08:15:00.177-05:00

Most fire department leadership teams have never faced the current circumstances in their careers. These truly are "new" times.Will these difficulties last? The answer appears to be YES for a quite a few years. The emergency services received tremendous support post-9/11 and then was boosted further by the rapid rise in real estate values which flooded local tax coffers.But the support and

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-2455442304357770752010-12-01T08:07:00.004-05:002010-12-01T08:07:00.471-05:00

Fire trucks financing has a lot of options. And it's easy to get confused and perhaps not choose the best term for your department.This series will explore the advantages and disadvantages of common choices to help you make the highest quality, informed decision.Part 4 - Should you pay a down payment?You have money in the bank and need a new truck. When you finance, should you use some or

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-82833275515313207182010-11-24T08:00:00.003-05:002010-11-24T08:00:12.441-05:00

Fire trucks financing has a lot of options. And it's easy to get confused and perhaps not choose the best term for your department.This series will explore the advantages and disadvantages of common choices to help you make the highest quality, informed decision.Part 3 - Is short term financing right for your department?A short-term fire apparatus financing term is usually 3 to 5 years in

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-90107839444343141152010-11-17T08:11:00.004-05:002010-11-17T08:11:00.523-05:00

Fire trucks financing has a lot of options. And it's easy to get confused and perhaps not choose the best term for your department.This series will explore the advantages and disadvantages of common choices to help you make the highest quality, informed decision.Part 2 - Is a traditional payment plan the best?What's the most common terms?The most common fire truck financing terms are those

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-20497183039558111482010-11-10T07:59:00.005-05:002010-11-10T07:59:00.835-05:00

Fire trucks financing has a lot of options. And it's easy to get confused and perhaps not choose the best term for your department.This series will explore the advantages and disadvantages of common choices to help you make the highest quality, informed decision.Part 1 - Is long term repayment good?Generally, longer term financing (12 to 15 years) offers the lowest payments. It makes buying a

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-38472631013363681972010-11-03T08:07:00.003-04:002010-11-03T08:07:00.201-04:00

Interest rates are historically low right now. When I say low, I mean very, very, very low. They have not been this low in over 60 years.But the near future doesn't look so good.The political moves going on right now to help the economy foreshadow higher inflation and, therefore, interest rates. The government is flooding the market with dollars which means higher inflation. So, it seems

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-82042192278862614452010-10-27T08:05:00.001-04:002010-10-27T08:05:00.548-04:00

Most fleet replacement plans lack the critical, essential information of a fully developed plan.So,what information is missed?Most plans are a simply a replacement schedule. It includes a list of existing trucks and when they are projected to be replaced.A comprehensive plan includes the financial aspects of the plan. Which means the plan includes information about the projected budget impact

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-23647392961853457962010-10-20T08:08:00.001-04:002010-10-20T08:08:00.335-04:00

Most fire truck financing RFP's I've seen set up the fire department to waste thousands of dollars in unneeded interest.Here's why: Most departments don't understand the 7 Fire Truck Financing Factors and the RFP language is too vague to get meaningful, apple-to-apple comparisons among the bidding institutions.Most departments use the financing RFP process to gather market data - who is willing

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-78733262240698956822010-10-13T08:02:00.002-04:002010-10-13T08:02:00.595-04:00

I hear self-defeating comments from fire chiefs every day. It's probably the most common reason they have a fleet of old worn-out, unsafe trucks.Do you want to know the comment that kills the chances for getting new trucks?It's: I don't handle the finances around here, there is someone else in the (budget, finance, purchasing, treasury, accounting) department that does that.Here is why that

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-82299604523216861462010-10-06T08:08:00.002-04:002010-10-06T08:08:00.507-04:00

I came across something pretty daring in the finance world the other day and I thought I'd share it with you.A very large manufacturer's in-house finance company regularly sends its financing proposals without a stated interest rate and without payment date details.Here's what these incomplete proposal say:Delivery time: Std deliveryPayment mode:

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-24219415001109009252010-09-29T07:56:00.001-04:002010-09-29T07:56:00.149-04:00

Did your volunteer fire department lose its tax-exempt status? If so, your department may now owe taxes and face other penalties including failure to qualify for low tax-exempt interest rates.You can see the list of departments by state on the IRS website:http://www.irs.gov/charities/article/0,,id=225889,00.htmlThousands of departments are at risk.The IRS has offered a 1-time filing relief but

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-23307882730738300902010-09-22T08:06:00.001-04:002010-09-22T08:06:00.813-04:00

Should you prepay your fire truck manufacturer to get that big juicy discount?The answer is perhaps and perhaps not.The key is to do a complete and proper analysis of the facts before you decide on this complex financial decision.It's easy to know the benefit of prepaying - it's the several thousand dollar discount your fire apparatus manufacturer gives you on your fire truck.What is frequently

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-25176103052791384822010-09-15T08:04:00.003-04:002010-09-15T08:04:00.956-04:00

Have you jeopardized your IRS tax-exempt status?I've been getting a lot of calls about my recent article in which I described the current IRS rules and requirements and how they have affected tens of thousands of volunteer fire departments.For the article, go here: http://www.firefinanceguy.com/2010/08/volunteer-fire-departments-irs-did-you.htmlIs it possible that your department may owe a large

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-83626259596914918602010-09-08T07:50:00.001-04:002010-09-08T07:50:00.043-04:00

Your truck sales person just told you the price of the new truck you want. It's definitely expensive and probably more than you thought it would cost. Can you afford the payment of this fire truck?Here's a simple, quick, and easy way to ballpark a pretty accurate payment.Divide the amount of the truck by 10.If the truck price is $300,000, simply divide by 10 to estimate your payment. In this

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-30222887288358407402010-09-01T08:03:00.001-04:002010-09-01T08:03:00.612-04:00

Are we still in some sort of credit crisis?The past two years have been very eventful and somewhat terrifying. Most departments did not know if they could get a loan and what terms were available or what rate might be charged. However, the credit markets have stabilized during 2010 and are acting somewhat normal.So, what is going on?Fire Departments can get loans and financing for their fire

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-55102921681822430112010-08-25T08:06:00.002-04:002010-08-25T08:06:00.677-04:00

Is it possible that most communities can no longer afford fire protection?I've been traveling a lot lately and I keep hearing the same thing - the costs of providing fire fighting are rising much faster than budgets. Another way to look at this is this way: The costs of providing service are rising faster than what the community values it should and can pay for fire fighting. In other words,

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-6182726035806638092010-08-18T08:05:00.003-04:002010-08-18T08:05:00.705-04:00

I received a number of comments from my column last week about the dangers of refinancing. They all asked the same thing...What's the right way to refinance the debt?Falling interest rates provide opportunities to capture hidden budget dollars. The key to refinancing correctly is too capture the benefit of lower rates without incurring costs that will wipe out the benefit in the long-term.Here

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-5988866478299945642010-08-11T08:03:00.001-04:002010-08-11T08:03:00.140-04:00

It's the most common waste of money I regularly see fire departments make. What is it?I see Departments who refinance their debt regularly but do it incorrectly or for the wrong purposes. By doing it wrong, departments waste thousands of dollars.How departments refinance their debt incorrectlyDepartments regularly refinance their debt to buy new equipment or trucks. But they extend the terms on

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-27380168493457096762010-08-04T08:06:00.004-04:002010-08-04T08:06:00.100-04:00

Is your department in danger of losing its tax-exempt status?If so, donations to your department will no longer qualify as deductible donations for your donor and, more importantly, your department may owe huge tax liabilities to the IRS.Recent changes to the IRS reporting requirementsBeginning in 2008, small tax-exempt organizations have a new filing requirement. It’s short, easy and electronic

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-26749823776540898762010-07-28T08:04:00.003-04:002010-07-28T08:04:00.373-04:00

Here's a sober assessment about most fire department's financial futures.Departments will be faced with, at best, stable revenues and many will face declining revenues.At the same time, the costs of providing service will increase.Departments will have to become more financially savvy to navigate this future.This will end, of course, at some time in the future when the cost of diminished service

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-8345027097862711782010-07-21T08:00:00.002-04:002010-07-21T08:00:14.721-04:00

I received a number of calls about how to be prepared to lower your borrowing costs and save a bunch of hassle when financing your new fire truck. This 4 part article provides more details about the 4 things you must know about your financial condition.Part 4 - Be committedOne of the simplest ways to make your financing experience easier and cheaper is to make a down payment on your new

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-13419032570242879922010-07-14T08:02:00.006-04:002010-07-14T08:02:00.433-04:00

I received a number of calls about how to be prepared to lower your borrowing costs and save a bunch of hassle when financing your new fire truck. This 4 part article provides more details about the 4 things you must know about your financial condition.Part 3 - Prepare for a rainy dayMost departments really don't know how much money to keep in reserve for a rainy day. Exhaustive analysis

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-57517028895770074652010-07-07T08:05:00.006-04:002010-07-07T08:05:00.974-04:00

I received a number of calls about how to be prepared to lower your borrowing costs and save a bunch of hassle when financing your new fire truck. This 4 part article provides more details about the 4 things you must know about your financial condition.Part 2 - Be able to afford the paymentThe bank will use your financial information to determine your cash flow. Cash flow is simply the

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-48721712787657550952010-06-30T08:02:00.003-04:002010-06-30T08:02:00.263-04:00

I received a number of calls about how to be prepared to lower your borrowing costs and save a bunch of hassle when financing your new fire truck. This 4 part article provides more details about the 4 things you must know about your financial condition.Part 1 - Useful informationAny bank will request financial statements from you (usually 3 or so years) to make a decision to lend your

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-84568373434910221502010-06-23T07:48:00.003-04:002010-06-23T07:48:00.428-04:00

It's scary to ask someone for money. And it's doubly scary to ask a bank for money and you don't know what their answer will be and why.We'll examine the key things you can do to make it much easier and cheaper to borrow from a bank.What can you do to make it easier and cheaper to borrow money for a new fire truck?Banks rely upon quality financial information, stable financial results, and a

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-68589637061708311222010-06-16T07:45:00.005-04:002010-06-16T07:45:00.330-04:00

Your entire fleet is aging. It's becoming undependable, more expensive, and perhaps unsafe. How do you turn your fleet of old trucks into a brand new fleet of safe, modern vehicles?Where do most departments go wrong?In my article for Fire Chief magazine, I wrote about the 4 steps to developing a fleet replacement plan that stands the test of time. You can read the article here: firechief.com/

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-41630096061884502112010-06-09T08:04:00.004-04:002010-06-09T08:04:00.735-04:00

If you've ever received a financing proposal, you've seen unclear terms and made major decisions - probably without understanding how those terms affect you.Why all the confusion?First, you don't deal with financial terms every day so a simple lack of experience leads to confusion.Second, banks like complicated technical terms that sound professional just like a lot of other professions.Third,

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-20206572953494497632010-06-02T08:03:00.008-04:002010-06-02T08:03:00.705-04:00

Last week, I wrote an article about the embarrassing situations I frequently see when departments sign a truck contract before locking in a financing plan.So, how do you know how much truck you can afford financially stress-free?Your payment budget depends on how much of your annual income you have left over after you pay for all the expenses of running your department. This is commonly called "

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-71173480172396559552010-05-26T08:00:00.006-04:002010-05-26T08:00:04.001-04:00

Do you ever run into a store to buy butter or a TV without a plan how to pay for it? Probably not.Yet, it's amazing how many times I've talked with departments who have signed a truck contract without having a financial plan in place how they will pay for the truck.Here's what happens way more often than you thinkThey come to me to help them establish their financing and learn they can not

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-26340979726808192112010-05-19T08:02:00.001-04:002010-05-19T08:02:00.393-04:00

Here's a story about a department that made some assumptions and created a nightmare for themselves.The backgroundThe department received a grant for about half the cost of the truck that they qualified. They planned on prepaying the truck and receiving a discount with borrowed funds and then would pay down half the loan when they received the grant funds upon truck delivery.The nightmareThe

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-64894247753368625682010-05-12T08:06:00.002-04:002010-05-12T08:06:00.620-04:00

Things are tough right now. Cuts are expected, not increases. Yet more is required of your department. What can you do to financially survive the current environment?Get factsIf you need a new vehicle, you must justify why under more scrutiny than ever before. If you need to borrow to fund your purchases, create a process that provides the most efficient outcome.Know your stuffYou should know

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-2199242339082303662010-05-05T07:58:00.002-04:002010-05-05T07:58:00.284-04:00

It's always nice to get a grant. After all, who doesn't like free money? But grant funds are drying up quickly and for some departments, a grant is a must-do to get a new truck.So are you a department that should depend upon a grant or can you buy the truck on your own?Here's a quick test for your department:1. Can you afford some down payment? Do you have at least 6 months of revenues in a

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-14173183820499728252010-04-28T08:01:00.002-04:002010-04-28T08:21:29.229-04:00

Do you have someone in your department that is fully versed about your finances? Most departments don't. And that can hurt you.I spoke with a Chief the other day who felt that although some of the fundraisers raised less funds, they had other fund raising that made up the difference. Imagine his surprise when I informed him that he had 50% less revenues than he thought he did. And it almost

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-12724519025224884712010-04-21T08:04:00.005-04:002010-04-21T08:04:00.827-04:00

I've seen thousands of stupid financial decisions in my career. And now I'm naming the Top 5.Refinancing and extending term. If you refinance an existing debt and extend the time you'll pay it off, you are wasting thousands of dollars. Not only does this cost money upfront but it can hurt you as you plan on purchasing the next fire truck.Not have a budget. If you don't make a budget and

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-42225598199936482692010-04-14T08:02:00.002-04:002010-04-14T08:02:00.290-04:00

It's very simple to always lower your interest rates when you borrow. By taking the following steps, your department can save thousands of dollars in interest.Keep quality financial information. Quality financial information includes financial statements that are kept according to generally accepted accounting rules. Keep track of how much the department earns, how much it spends, what it owns

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-59096685605464584182010-04-07T08:12:00.002-04:002010-04-07T08:12:00.479-04:00

I often get asked why I talk so much about fire apparatus prepayments and prepayment discounts.It's simple: Most fire departments lack the skills to properly analyze these complex financial offers. And they put their money and reputation at risk!The most common problem is that fire departments make decisions on these complex financial offers by only examining 1/2 of the facts. So, by missing

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-39043822110021270712010-03-31T08:04:00.003-04:002010-03-31T08:04:00.213-04:00

Fire Departments are asked to make complex financial decisions every day - often without any training or support whatsoever. So, what's your financial IQ? Answers are at the bottom.A. How much interest will you pay for a 10-year, $300,000 fire truck loan at 4%?About $12,000About $70,000About $120,000B. For that same 10-year transaction, how much interest can you save if you made a $30,000 (

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-6812486887846015812010-03-24T08:02:00.002-04:002010-03-24T08:02:00.523-04:00

What should you do to protect yourself when you receive a sizable prepayment discount from your fire truck manufacturer? This article will help you manage the financial risk in such transactions.What risk are you taking?When you prepay, you are essentially lending money to your truck manufacturer and assuming all the risks of lending money - you may not get paid back (or a truck).What's the best

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-32962717727089689502010-03-17T08:03:00.003-04:002010-03-17T08:03:00.793-04:00

In the highly technical world of tax-exempt financing fire trucks, a small mistake can cost a ton of headaches - and possible fines and costs. It's important to get all the paperwork correct.Here's a rundown on the IRS required documents*.IRS form 8038G or 8038GC: This is an essential document that notifies the IRS that your loan is tax-exempt. If this form is not filed properly and on-time,

John Hillhttp://www.blogger.com/profile/16917165711681900097noreply@blogger.com0tag:blogger.com,1999:blog-379299884677856180.post-85935622427416375592010-03-10T08:01:00.003-05:002010-03-10T08:01:00.196-05:00

I've written many online articles about the state of fire department finances and their impact on apparatus purchasing.The most popular and most down-loaded article gives a kind of gloomy forecast for fire department's future.Here's the link:http://ezinearticles.com/?Fire-Department-Funding---The-4-Upcoming-Critical-Financial-Issues-That-Will-Rock-Your-World&id=1276194Boiled down, this article

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