The City is considering a lease-purchase arrangement to secure the police radio equipment that will fix broadcasting issues which currently prevent the radios communicating from certain locations. The equipment includes three Simulcast radio towers that will allow simultaneous transmission on the same radio frequency to extend coverage.
Through the lease arrangement, the necessary equipment would be purchased immediately at a cost of $683,014 at 10% down with five recurring payments, through a five-year purchase plan at 3.36% interest, or $63,405.
The interest would be $63,405 over five years. With the City’s recent refinanced borrowing rate of 2.6%, this would be $49,031. The City will decide whether to commit to the payment schedule at $14,374 above that cost in order to secure the desired equipment straight away.
The Finance, Budget, and Personnel Committee voted last week to leave the decision to the discretion of the Common Council when it meets on Tuesday, August 14.
“I do support the Lease Program that our Police Chief Rick Gramza, and Fire Chief Scott Owen concur is good for the City emergency communications,” stated Mayor Bob McManus. “Even as I stated back in the campaign, Public Safety is the #1 function of local government. It would appear that there is a slight increase in the amount paid over the 5 years with the lease. However, that is not taking into account increases in costs over the next 5 years if we don’t do it now. But more importantly, it is about the safety of our Police and Fire personnel and ultimately the safety of the Citizens of Marshfield.”
The Mayor believes that the Council will support the decision to move forward.