Town gets OK for trust fund loan to buy new fire truck

The Wisconsin Board of Commissioners of Public Lands (BCPL) this week announced it has approved a State Trust Fund loan totaling $658,312 for the Town of Fredonia to purchase a fire truck for the Waubeka Fire Department.

In November, the Fredonia Town Board voted to borrow the money after the fire department voiced concern about the need to replace a 30-year-old truck.

The money is being borrowed at an interest rate of 4.75%.

The town will make 11 annual payments of $79,000 starting later this year.

The new borrowing is not expected to affect the budget or current tax rate since other debt will be retired at the time payments on the truck begin, officials said.

The borrowing is separate from the town’s contract for fire protection with the fire department. In December, the town agreed to pay the department $114,999 in 2019 for protection, an increase of 3% over 2018.

The BCPL approved loans totaling $3 million to 12 other communities.

The BCPL operates entirely on program revenue without taxpayer money. It distributes more than 96 cents of every dollar of interest earned on BCPL State Trust Fund investments to Wisconsin’s public schools.

The 2018 earnings of $35.7 million are the sole source of state funding for K-12 public school library materials.