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Redwood Falls’ new fire truck still on schedule for delivery

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The upcoming new $1+ million fire truck for the Redwood Falls Fire Department is still on track to be delivered next May.

On March 16, the city council approved the purchase of a fire department ladder truck for $1,150,692. The price includes a prepay discount of nearly $39,000. Payment of $1,150,692 was initiated to the truck vendor on March 31. However, the payment has been delayed due to a bank wire fraud investigation.

Through the course of the investigation, funds have been located, secured, and are currently in the process of seizure to be returned to the City of Redwood Falls. The City of Redwood Falls is expecting a net financial loss of less than 1% of the funds as a result of the crime. The seized funds are currently in the custody of the United States Secret Service, and expected to be returned in another 90 days.

Currently the truck is in the engineering phase. Current plans call for members of the fire department to see the finished plan in October. If approved, the custom-made truck is expected to be delivered next May.

To maintain the prepay discount, the truck vendor requested the City enter into a one-year equipment lease to allow the vendor and manufacturer to receive payment for the truck while maintaining the city’s original price.

Under the terms of the lease, the City will make an upfront payment of $541,197 and a final payment in the amount of $609,494 in August of next year. The total of the two payments are equal to the original invoice amount. By taking this action the City does not incur any cost associated with the delayed payment.

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