County Highway Department to buy trucks with $2.25M Rainy Day Fund loan
Why take a bank loan — and pay interest — when you’ve got nearly $15.9 million stashed away for a rainy day?
That’s the theory behind the Allen County Highway Department’s plan to borrow $2.25 million from the county’s “Rainy Day Fund” the purchase of 10 trucks, which was expected to be approved by County Council Thursday.
This would be the third such no-interest loan the department has received from the fund, which would be repaid through departmental funds over five years. The Highway Department has 34 dump trucks that are expected to last 15 years. By replacing 10 trucks every five years the fleet can be maintained, officials say. The loan allows the county to buy a larger number of vehicles, reducing the per-vehicle cost.
Similar loans were made in 2011 and 2015. The latest loan would be repaid between January 2021 and January 2025 at a an annual rate of $450,000.