NATCHEZ — The City of Natchez agreed Tuesday to apply for a Capital Improvements Revolving Loan Program, or CAP Loan to purchase an aerial ladder truck for the city’s fire department.

James Johnston, the community development director, said the city intends to apply for a loan up to $750,000 depending on the cost of the truck.

“The loan will be paid back with money from the general fund and/or money received from the Mississippi Department of Insurance Fire Rebate fund,” Johnston said. “The city will borrow from a commercial lending institution should the cost exceed $750,000.”

Natchez Mayor Darryl Grennell said a new truck is needed to avoid the city’s fire rating from diminishing which would insurance costs for property owners.

The city’s current aerial ladder truck has been deemed outdated and inoperable.

The Mississippi State Rating Bureau has warned the city it must get a new truck or risk having the city’s fire rating degraded from its current rating of 5 to a 6. The truck, Grennell said, should cost no more than $1 million.

“The city provides fire service for the entire county,” Grennell said.

“We’ve got to enhance our fire service.”

Grennell said the city explored the option of finding a used truck that has been refurbished, but purchasing a new one seemed to be the most viable option.

“Research has been done to find a reconditioned or refurbished truck,” Grennell said.

“It’s challenging to locate one. There are some stock trucks that are available (for approximately $800,000).”