The city is lease-purchasing a new fire apparatus for $1,239,970 which it will pay over a 10-year period, according to city records.
Paterson is purchasing a new Pierce Arrow XT 95′ Mid Mount Platform Tower Aerial Device Apparatus from Appleton, Wisconsin-based Pierce Manufacturing for a principal amount of $1 million.
The city will pay $215,975 in interest over the 10-year period, according to city records. The city will pay $123,997 every year from October 15th, 2017 through October 15th, 2026.
Paterson is paying a 3.6-percent interest rate on the loan. Fire chief Michael Postorino last month said the purchase is part of a decade old plan that will replace an existing aging apparatus. He said that plan called for the purchase of 10 fire apparatuses. This purchase is 8 out of 10.
Postorino has often explained the benefits of lease-purchase. He has told council members in the past the large volume of calls the city’s fire department – he says the biggest volume in New Jersey — handles makes leasing-purchase the optimal option. He says these purchases prevent the city from incurring costly vehicle maintenance expenses on old equipment while ensuring firefighters have top of the line equipment.
The city council approved the purchase of the new ladder in October.