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FIRE AND RESCUE\QBY CENTRAL-Set Public Hearing on Tax Exempt Loan for Trick purchase—12-19-16
RESOLUTION SETTING PUBLIC HEARING ON QUEENSBURY
CENTRAL VOLUNTEER FIRE COMPANY, INC.'S PROPOSAL
TO PURCHASE TRUCK AND USE TAX-EXEMPT
FINANCING FOR SUCH PURCHASE
RESOLUTION NO.: ,2016
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, the Town of Queensbury and the Queensbury Central Volunteer Fire Company,
Inc. (Fire Company)have entered into an Agreement for fire protection services,which Agreement sets
forth a number of terms and conditions including a condition that the Fire Company will not purchase
or enter into any binding contract to purchase any piece of apparatus, equipment, vehicles, real
property, or make any improvements that would require the Fire Company to acquire a loan or
mortgage or use money placed in a "vehicles fund" without prior approval of the Queensbury Town
Board, and
WHEREAS, the Fire Company has advised the Town Board that it wishes to purchase a
new 2016/2017 Pierce Engine Rescue Apparatus (Truck) along with associated accessories
(tools, hose and other miscellaneous tools) to replace a 1991 Engine Rescue for the approximate
purchase price not to exceed $788,000, such purchase already included in the Fire Company's five
(5) year capital plan that forecasts future capital needs and expenditures, including anticipated
vehicles, equipment, tools, other apparatus, facilities or improvements to facilities to be used for
firematic purposes, and
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WHEREAS, proceeds from the trade-in or sale of the Fire Company's replaced apparatus
would be placed against the principal of the new,proposed Truck, and
WHEREAS, the Fire Company plans on paying for the proposed,new Truck as follows:
1. $63,000 from trade-in/sale of replaced apparatus and/or funds currently budgeted in the
current Fire Company Agreement.;
2. $225,000 from Vehicle Reserve funds; and
3. Approximately $500,000 maximum amount of tax-exempt financing having a 15 year
term with Glens Falls National Bank and Trust Company; and
WHEREAS, the Town Board wishes to set a public hearing concerning the Fire Company's
proposed purchase, as Town Board approval of such proposed purchase is required by the Fire
Company's Agreement with the Town, and such proposed tax-exempt financing requires a public
hearing under the Internal Revenue Code, and
WHEREAS, the Truck will be owned and used by the Fire Company to provide fire protection
to the Town and maintained at its firehouse located at 17 Lafayette Street in the Town of Queensbury,
New York,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board shall conduct a public hearing concerning the
Queensbury Central Volunteer Fire Co., Inc.'s proposed Truck purchase delineated in the preambles of
this Resolution and the partial financing of such proposed purchase using tax-exempt financing on
Monday, January 9t', 2017 at 7:00 p.m., and
BE IT FURTHER,
RESOLVED, that the Town Board hereby authorizes and directs the Queensbury Town Clerk
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to publish a Notice of Public Hearing in the Post-Star Newspaper once at least fourteen(14) days prior
to the Public Hearing.
Duly adopted this 19ffi day of December, 2016,by the following vote:
AYES
NOES
ABSENT:
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GLENS FALLS NATIONAL BANK AND TRUST COMPANY
250 Glen Street
Glens Falls,New York 12801
Preliminary Term Sheet for Discussion
(December 7,2016)
Borrower: Queensbury Central Volunteer Fire Company,Inc.
Purpose: Provide financing for the acquisition of a new fire truck
Uses Sources
Purchase fire truck and attachments $725,000 GFNB Financing $500,000
Equity(Cash/Trade) $225,000
Total $725,000 Total $725,000
Amount: Up to$500,000
Term: 15 years
Rate: Tax-exempt five(5)year fixed rate of 2.95%,then adjusting at 5 year intervals to 67%of
the total of the five year Federal Home Loan Bank of New York (FHLBNY) Regular
Fixed Advance Rate plus 275 basis points.
If the transaction is found to be taxable, the rate would be set to the corresponding tax
equivalent rate.
Payments: Monthly principal and interest payments in an amount sufficient to amortize the loan in
full
Commitment
Fee: Waived
Guarantors: None
Collateral: l'position lien on the fire truck to be purchased
Security interest in all business assets
Prepayment
Penalty: The loan will be subject to a 2%prepayment penalty if paid within the first and second
years, 1.5% if paid within the third and fourth years, 1%if paid within the fifth and sixth
years and none thereafter.
Covenants/
Conditions:
> Annual submission of audited fmancial statements and tax returns
> Annual submission of fire protection contract with the Town
> Annual submission of the company's town approved budget
Pre-Approval: The following information will be required prior to bank approval:
> Receipt and review of the company's 2017 town approved budget
> Other relevant information which may be requested by the Bank during the approval
process
•
Queensbury Central Volunteer Fire Company,Inc.
Term Sheet
Page 2 of 3
Pre-Closing: The following information will be required prior to closing:
> Receipt of a town resolution approving the purchase
> Receipt of a fire company board resolution approving the purchase including a list of
the authorized signors for the loan transaction.
> Receipt of documentation for tax-exempt status
• Receipt of a final invoice for the truck to be purchased
> Subject to other terms,covenants and conditions to be determined by the bank
THE ABOVE TERMS ARE PROVIDED FOR DISCUSSION PURPOSES ONLY. THIS TERM
SHEET SHALL NOT BIND THE BANK UNTIL FORMAL CREDIT APPROVAL IS OBTAINED
AND A COMMITMENT LETTER IS EXECUTED. THE TERM SHEET SHALL BECOME
NULL AND VOID ON 12/16/16. THE BANK MAY,AT ITS SOLE DISCRETION,ADJUST THE
INTEREST RATE AND OTHER TERMS AT ANY TIME. IF THE SUBJECT TERMS ARE
ACCEPTABLE THE BORROWER SHOULD SUBMIT A SIGNED COPY OF THIS LETTER TO
THE BANK.
ACCEPTED BY:
Borrower: Queensbury Central Volunteer Fire Company,Inc.
By: Date:
Authorized Signor
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FIRE\QBY CENTRAL Fire-Tax Exempt Financing For Truck Purchase-I-9-17
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH A RESOLUTION ADOPTED BY
THE QUEENSBURY TOWN BOARD ON MONDAY, DECEMBER 19TH, 2016, THAT THE
TOWN BOARD WILL CONDUCT A PUBLIC HEARING ON MONDAY, JANUARY 9TH, 2017,
AT 7:00 P.M. AT THE QUEENSBURY ACTIVITIES CENTER, 742 BAY ROAD, QUEENSBURY
TO CONSIDER THE QUEENSBURY CENTRAL VOLUNTEER FIRE COMPANY, INC.'S
PROPOSAL TO REPLACE ITS 1991 ENGINE RESCUE AND PURCHASE A 2016/2017 PIERCE
ENGINE RESCUE APPARATUS (TRUCK) AND ASSOCIATED ACCESSORIES FOR THE
APPROXIMATE SUM OF $788,000 AND THE FIRE COMPANY'S TAX-EXEMPT FINANCING.
THE FIRE COMPANY PLANS TO FINANCE THE NEW TRUCK, IN PART, WITH A $500,000
MAXIMUM AMOUNT OF A TAX-EXEMPT LOAN OVER 15 YEARS WHICH DOES NOT
EXCEED THE ESTIMATED USEFUL LIFE OF THE TRUCK (15 YEARS). THE AREA
PROTECTED BY THE FIRE COMPANY IS ALL OF THE GEOGRAPHICAL TERRITORY OF
THE TOWN OF QUEENSBURY SET FORTH IN THE CURRENT FIRE PROTECTION
SERVICES AGREEMENT BETWEEN THE TOWN OF QUEENSBURY AND THE FIRE
COMPANY. THE FIRE COMPANY WOULD BE THE OWNER OF THE TRUCK, WHICH
WOULD BE LOCATED AT THE FIRE HOUSE LOCATED AT 17 LAFAYETTE STREET,
TOWN OF QUEENSBURY,NEW YORK.
ALL PARTIES IN INTEREST AND THE CITIZENS WILL BE GIVEN THE
OPPORTUNITY TO BE HEARD IN RESPECT TO THE PROPOSED PURCHASE.
INFORMATION CONCERNING THE PROPOSED PURCHASE IS ON FILE WITH THE TOWN
BUDGET OFFICER AND IS AVAILABLE FOR INSPECTION.
BY ORDER OF THE QUEENSBURY TOWN BOARD.
PUBLICATION DATE: ,201_
CAROLINE H. BARBER
TOWN CLERK
TOWN OF QUEENSBURY