A Johnston County commissioner has expressed concern about a loan for a fire truck for a volunteer fire department.
The Micro Fire Department went before county commissioners this month to obtain approval for a tax exempt loan to borrow up to $300,000 to purchase a 2017 Pierce fire truck.
KS Bank offered the best interest rate on the loan of 2.35 percent for a term of 10 years. County Finance Director Chad McLamb told the board he had reviewed the proposals and recommended the financing arrangements.
Vice Chairman Jeff Carver noticed on the proposed deal the collateral on the loan was the Micro Fire Station and not the fire truck. Carver recommended the finance office and fire department more closely review the terms of future loans.
Two other banks, First Citizens Bank and Commercial Lending, also bid on the fire truck loan, with the collateral being the new fire engine, but their interest rates were slightly higher.
Micro Fire Chief Johnny Dixon was present at the meeting. Dixon said the department hopes to pay off the loan early.
