Owensville’s Board of Aldermen on Monday authorized a lease purchase agreement which will help fund fire department equipment upgrades and improvements to a station house.

A list of equipment and building needs, which was developed out of prior committee discussions with leaders of the all-volunteer fire department, resulted in a financing plan with First State Community Bank. FSCB, through a government lending program, will provide up to $482,700 to the city’s fire department with repayment scheduled through Nov. 4, 2035.

The city agrees to budget funds to pay off the lease agreement and a 2.75 percent interest rate per annum, will be assessed.

The city also agrees to pay $24,135 as an initial principal advance on the Nov. 1 commencement of the agreement.

Equipment needs include the purchase of a 2,000-gallon tanker from Danko for $241,500 and a Ford F250 pickup from Machens Ford on state bid. The truck, with a skid unit from Banner Fire Equipment, will cost $37,000. Another Machens F250 utility truck with utility bed is listed at $35,000. New battery operated rescue tools are expected to cost $55,000. A vendor has not been selected. The fire department also plans a two-bay addition to Station No. 3 in town with an estimated project cost of $72,500.

The 67-page lease agreement was approved on a 4-0 roll call vote of Ordinance No. 1346. Interest over the life of the lease will be $111,838.11. Gillmore Bell prepared the lease agreement.