BY MILES LAYTON
PLYMOUTH — In a unanimous vote Monday night, the Plymouth Town Council approved an installment purchase contract with Southern Bank to acquire a new E-ONE custom rescue truck for the Plymouth Fire Department — a critical upgrade to the town’s emergency response capabilities.
However, town officials acknowledged that funding the $1.56 million vehicle will likely require a property tax increase — perhaps as much as 13 cents on $100 of assessed value; $130 per $100,000.
Since this council meeting lasted more than three hours, other stories will be forthcoming that will include information about possibly paying the Police Chief Louis Banks more money, particularly since the police department is understaffed at the moment and he’s working a lot of long hours, a presentation about a study that suggests increasing water rates, tabling the possible demolition of the old Roanoke Development building located at 108 West Water Street, among other items.
Back to the rescue truck — Council approved an agreement that secures a 15-year loan at a 4.92% interest rate from Southern Bank. According to town officials, the fire truck will take up to three years to build. During that time, the town will only pay interest on the loan — approximately $76,773 annually — before full principal and interest payments begin in year four.
“This truck is essential to the safety of our town,” Fire Chief Josh Swain said. “It responds to everything — house fires, vehicle accidents, natural disasters. It’s our lifeline. The current unit is over 30 years old, and there have been times when it failed during active calls. That’s a serious liability, and it reflects poorly on the department and the town.”
Tax Impact and Budget Realities
Although the fire department already had $55,000 allocated in its fiscal year 2024–25 budget — a carryover from a recently retired debt — that amount is not enough to cover even the interest-only payments for the next three years. The town would need an additional $21,733.35 annually to meet those interest obligations.
To raise that amount, officials said the town would need to increase the tax rate by about two cents in the near term. With one cent on the tax rate generating roughly $11,000 (at less than 100% collection), the increase would provide the necessary funds to cover the shortfall through 2029.
Starting in year four of the loan — fiscal year 2029–30 — the town will begin paying both principal and interest, bringing the annual obligation to $200,411.74. Subtracting the $55,000 already budgeted, the town would still need to find $145,411.74 each year. That would likely require a much steeper tax hike — an estimated 13 cents on the property tax rate — unless alternative funding sources can be found.
“The only way to cover that gap without raising taxes is by cutting elsewhere in the budget or using fund balance,” Town Administrator Joanne Floyd said. “But given how tight the budget is now, there’s not much left to shift around. We’ve already allocated everything to basic services, and contingency funds are limited.”
Alternatives Considered but Not Viable
Council members also reviewed possible alternatives to Southern Bank’s financing, including a USDA loan. However, officials noted that USDA interest rates would be nearly identical to the current offer, and grant opportunities have already been exhausted.
A 50/50 matching grant that the town typically uses for fire department equipment — such as gear and air systems — cannot be used toward vehicle purchases. The town has also already used its one-time opportunity to apply this grant to a previous truck purchase.
“Unfortunately, a lot of residents don’t know the details of how these grants work,” a council member said. “We’ve already used the grant’s lifetime limit on another truck. We can’t count on it for this one.”
Phased Tax Increase a Possibility
To ease the financial impact on residents, council discussed the option of gradually phasing in the necessary tax increase over the next few years. One proposal suggested adding four cents to the tax rate annually over a three-year period. While not yet formally adopted, the idea received support from several members as a way to avoid a sudden, steep increase.
“We really have to have this truck,” Mayor Brian Roth said. “It’s not a luxury — it’s a necessity. And if we wait, we risk either losing the locked-in interest rate or facing even higher costs in the future.”
Floyd emphasized that, because of the truck’s long production timeline, there’s a narrow window of opportunity to lock in favorable financing terms. Southern Bank extended its offer through July 15, but any delays beyond that would require a reevaluation of the interest rate and terms.
Community Safety Comes First
The aging rescue truck has become increasingly unreliable, according to fire officials, who described incidents where the vehicle failed to function in the field — posing a risk not just to emergency personnel but also to residents relying on fire and rescue services.
“Our rescue truck carries the air packs, cascade system for refilling bottles, and other vital equipment,” Swain said. “It’s the backbone of our operations. We’ve been lucky so far, but we can’t keep pushing our luck with a truck this old.”
Next Steps
With the purchase agreement now approved, the town will move forward with placing the order for the custom-built E-ONE rescue truck. Officials said the procurement timeline gives the town some flexibility to explore additional grant opportunities or refinancing options in the coming years.
“We’ll continue to look for outside funding sources,” Roth said. “But realistically, we have to plan for this through our own revenues, and that means taxes. The truck is too important to delay.”
As Plymouth prepares for future growth and increasing emergency response demands, the council’s decision signals a firm commitment to public safety — even if it comes at a financial cost to residents. A final decision on the structure and timing of any necessary tax increase is expected in upcoming budget discussions.