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The falling loonie means the cost of a new fire engine is on the rise, and subsequently, the Kelowna Fire Department asked Kelowna City Council for an additional $130,000 to fund a new engine on Monday.
According to the Kelowna Fire Department, the cost of a new engine has increased approximately 25 per cent since June 2014.
After contacting several Canadian Fire Engine manufacturers, the Kelowna Fire Department found that operational costs to build a fire engine have increased from 3.5 to 5 per cent. Moreover, for every one cent that the Canadian dollar decreases, the cost of a fire engine increases by $3,500.
In light of the weakened Canadian dollar, the Kelowna Fire Department has come up with a couple of funding solutions.
Chief Jeffrey Carlisle sought Council’s support on Monday to increase the Fire Equipment Capital Reserve Plan in the 2015 Capital budget from $600,000 to $730,000 in order to purchase a new fire engine.
In addition, proposed changes to the reserve contributions were asked to be brought forward as part of the 2016 budget process.
Lastly, Chief Carlisle asked Council to consider an additional request for funding to purchase a second fire engine, as the amount of purchasing two fire engines simultaneously would decrease the total cost by two to three per cent.
The decision among Council was split. Some Councillors had their reservations against purchasing two fire engines simultaneously, as the total cost would put the reserve fund into the negative digits.
“While we have the money in reserves today, when they get delivered we won’t have the money to pay the bill. We’re using money from somewhere and if it’s from reserves, then it’s reserves that are earning interest elsewhere. […] So sometimes the costs savings might be eaten up by [interest.] Where do you get the money from and what are you losing in order to use that money to buy a piece of equipment?” said Councillor Gail Given.
Photo credit: KelownaNow.
On the other hand, some Councillors believed the preemptive plan made the most sense.
“This second vehicle was in the plan anyways over the next year, so to me it makes sense if we can have some cost savings right now by ordering two vehicles instead of waiting another year,” commented Councillor Tracy Gray.
The existing two fire trucks were assessed and failed a mechanical assessment. According to the Kelowna Fire Department, the aging fire trucks posed challenges to servicing the entire region effectively.
“Based on the assessment, the vehicle is mechanically safe to operate, but when we look at it, it’s 21 years old, the manufacturer's out of business and replacement parts are hard to find,” said Chief Carlisle. “It creates challenges for us in terms of our fleet depth for the City.”
Through much debate and discussion, Kelowna City Council decided to approve an alternate proposal to increase funding by $130,000 for only one fire truck. Talks of purchasing a second fire engine were shelved until the 2016 budget cycle. However, the request to carry over the capital reserve increase was approved.
Chief Carlisle said he's happy with the decision Council made, even though the Fire Department only received funding for one truck instead of two.
"We'll make it work," added Fire Chief Carlisle.
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