The Smithfield Town Council held a public hearing this month to allow citizen input on USDA financing of the purchase of a 100 foot aerial platform ladder fire truck for the Smithfield Fire Department.
As required by the USDA, a public hearing must be held to consider public input. No one spoke in opposition.
The Town will borrow approximately $1,126,105 for the truck. If they use the USDA to finance the purchase, the interest rate will be 3.88% over a 20 year period with a yearly payment of $81,432.
The interest on the loan would be $503,594 bringing the total cost to $1,629,699.
The ladder truck is still 16 to 17 months away from delivery. Finance Director Greg Siler said if the USDA is used to finance the purchase the Town could qualify for a grant up to $100,000 towards the purchase.
Siler said he will also consider bids from commercial lenders.
Mayor Pro Tem Travis Scott asked if there was an early repayment penalty with the USDA. Siler said there would be no penalty.