Capital Purchase Case Study

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1. Describe the need for Capital Purchase. One significant capital cost for any department is a ladder truck. My example will outline some of the steps to replace an existing and aging ladder truck overdue for replacement according to pre-determined department policies and NFPA Standards. 2. Identify the steps required to secure the financing. A good fleet and maintenance program will track the maintenance, usage, and mileage of its fire fleet. This data provides the necessary information required to forecast apparatus replacement in a proactive capacity. Additionally, this type is useful when assimilating information for future budgetary needs and requirements. In a perfect world, the cost of replacing a ladder truck will be forecast years ahead of the needed replacement time. The National Fire Protection Agency (NFPA) 1901establishes guidelines for all fire apparatus specifications, replacement (NFPA 1901, 2009, p. 1). An analysis of the aging ladder truck will aid in determining new specifications when ordering the apparatus in addition to justifying the capital expenditure. A working group or committee is vital to the task of identifying those needs. Chief officers, fleet managers, and ladder truck engineers are all valuable assets when ordering this costly and specialized equipment. To secure the funds for a new ladder truck will require a list of…show more content…
Funds generated from a variety of tax bases include; property taxes, designated fire department or fire district taxes, commercial taxes or voter-approved tax increases(Smeby, 20014, p. 61). Pre-designated tax revenues are set aside to fund accounts specifically earmarked for apparatus replacement during budget planning. Fire departments will also utilize the sale of government bonds to fund unexpected or excessive expenditures (Smeby, 20014, p.

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