City Council Takes Out Loan to Buy Equipment

The Glasgow City Council met at their normal meeting on Nov. 5, in the council chambers. The meeting discussed a number of agenda items ranging from closing the city office the day after Thanksgiving to deciding whether to loan over $380,000 from First Community Bank to purchase equipment for the city.

It was the latter issue of the loan that saw the most discussion. Particularly, the portion of the loan to buy 18 self-contained breathing apparatuses (SCBA) for the Glasgow Fire Department, each with an extra bottle. The grand-total price would be over $137,000 and would be paid at $22,000 increments from the department’s budget.

City Councilman Stan Ozark pointed out that this plan was contrary to the discussion held in the budget meeting as he was under the impression the department would be purchasing new equipment yearly with the $22,000 allotted. Fire Chief Brandon Brunelle was unable to attend due to a call, but Councilman Butch Heitmen explained that the department required the purchase to be made all upfront so the systems would be uniform across the department.

Ozark pointed out that the past year also required the city to allocate an additional $5,000 to certify the ladder truck and that he felt the budget was pushed to the max.

“We are maxed out on our taxes,” asserted Ozark, “There is no more money in the general fund.” A discussion ensued in which Mayor Erickson pointed out that the loan was necessary to purchase safety equipment for the firefighters, and she agreed with the department’s need to operate within their budget. Ozark pushed back on the idea that they could prevent the department from seeking additional funds stating, “That’s just saying we aren’t going to.”

“When do we say no?,” asked Ozark rhetorically before continuing, “Who do we say no to? The people got their tax bill. We are maxed out.”

Following further discussion clarifying that the systems last for 15 years and that the loan would end in seven years, Ozark moved the measure forward with Council President Rod Karst seconding. The measure ultimately passed four to two, with Karst and Ozark objecting to the loan.

The Council would also approve, with less contention, the remainder of the loan to purchase a used street sweeper, as the current one has reached the end of its usable life, and two used cars for the Glasgow Police Department at the tune of $40,000.

The city received a quote from the board of investments for a 3.15 percent interest rate and sent a request for bid to each local bank and the credit union asking if they could meet that rate. Valley Bank and First Community Bank responded, but only First Community Bank could meet the 3.15 percent interest rate. The council approved getting the loan through First Community Bank.

The Mayor commented, “I think it’s nice we can do business with a local bank at the same rate.”