cost benefit and bigger split

[firelaw]

Hi: We are going to attempt to apply for a pumper to replace 2 older pumpers which are basic open cab and seatbeltless. We have the ability to make the 90/10 split a 75/25 split but on the app, I couldn't find where to add the extra money we could pony up. The section for additional funds was where I thought to add it but the split or fed share amount stays the same.

Also, we do 4000+ calls per year with a population of 24K. If the pumper is 400K I think the cost per person is about .74 over the life span of the truck. I have never done a cost benefit but I think this is correct. Any other type of cost we should be doing

Thanks

[CptnMatt]

By "Bigger-Split", I assume you mean what we have historically referred to here in these forums as an "over match". This subject has been covered extensively in past years here on this site. If you were to go back in time here and do a search on posts mentioning the term over match, I think you would be richly rewarded for your efforts.

I seem to remember that only in the narrative itself is there opportunity to express this intention, not in the statistical area of the application.

The reviewers used to have the discretion of whether or not to hold you to that over-match amount, or award you the request at the predetermined specified split level. I also seem to remember that for the year 2006, the rules changed so that if you specified that an over-match was being offered, then the reviewers and the grant admistration team was obliged to make the award on that over-match offer.

Perhaps Brian, Kurt, or Alana would care to confirm or refute this interpretation?

Best of luck to all.

-CptnMatt

[Not2L84U2]

I would think also that you would only want to ask for enough to get you to where you need to be. Let's say that you want a $200,000 vehicle (just using a round figure) then the normal split at 90/10 would have AFG paying $180,000 and you paying $20,000 but say that you want that same vehicle and want to pay 75/25 that would have you paying $50,000 and AFG paying $150,000. So the funds that you request then should be $166,667 so that the split that the application will come up with will be $150,000 for AFG and $16,667 for your match and then in your narrative state that you are actually going to purchase a $200,000 vehicle but are only requesting $150,000 of it and plan on overmatching by providing $50,000. The question then might be why don't you use that $50,000 as a down payment on a new vehicle....you might check with some of the other though, but that's the way I understand the overmatch.

[ktb9780]

It is not an over match in that sense. What you should be doing is throwing the extra money at the initial cost of the truck, so the computer crunches the numbers with a lower grant funding requested total. In other words if the total cost of the truck is $225,000 and you had $ 25,000 to put towards it you are going to ask the program to fund $200,000. Once you are in the narrative, you will explain to the reviewer that the truck you are seeking has a total cost of $225,000, you are palcing $25,000 of capital improvements money against that cost and only asking the program to fund the $200,000 minus your ususal match. This affords you a greater cost benefit in the computer scoring, especially when you cannot alter your population or run totals. If you can't get those numbers any higher, the only way to get greater cost benefit is to lower the total cost of the truck. In the final view of things you are offering to let the program deliver at $225,000 truck for only $200,000; ie; bigger bang for the buck.

[ktb9780]

I would think also that you would only want to ask for enough to get you to where you need to be. Let's say that you want a $200,000 vehicle (just using a round figure) then the normal split at 90/10 would have AFG paying $180,000 and you paying $20,000 but say that you want that same vehicle and want to pay 75/25 that would have you paying $50,000 and AFG paying $150,000. So the funds that you request then should be $166,667 so that the split that the application will come up with will be $150,000 for AFG and $16,667 for your match and then in your narrative state that you are actually going to purchase a $200,000 vehicle but are only requesting $150,000 of it and plan on overmatching by providing $50,000. The question then might be why don't you use that $50,000 as a down payment on a new vehicle....you might check with some of the other though, but that's the way I understand the overmatch.

And the answer to that is; do you have the income to make the payments on the remaining $150,000 financed at 9%?CAn you get anyone to loan you that amount on those terms? That would be explained in financial need and also in cost benefit.

[BC79er_OLDDELETE]

Ditto on how to handle that but no one address the full issue with their specific case. In the original post they're saying they have $100K to put down on a $400K pumper at 75/25. For starters, $300K is going to be a very VERY rare amount awarded considering the 15k+ vehicle apps that are probably going to be submitted.

You're also going to have to explain why you need a $400K pumper. Or why you have $100K and haven't been making payments. That's close to 3 years worth of payments on an average $250k-300k truck.

[ktb9780]

Ditto on how to handle that but no one address the full issue with their specific case. In the original post they're saying they have $100K to put down on a $400K pumper at 75/25. For starters, $300K is going to be a very VERY rare amount awarded considering the 15k+ vehicle apps that are probably going to be submitted.

You're also going to have to explain why you need a $400K pumper. Or why you have $100K and haven't been making payments. That's close to 3 years worth of payments on an average $250k-300k truck.

Oh yeah, big difference. I guess I should have read the orginal post.