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September 25, 2017

Financing new vehicles


10-20-16-sp-meeting-agenda-1

The meeting that was scheduled for earlier this week, then canceled, is now rescheduled for Thursday at 5pm at Town Hall for the Luther Public Works Authority to consider buying two police vehicles and a fire command vehicle.

The official agenda answers what the Town Board did not share audibly at the meeting last week when they first considered the purchase.

The agenda item states:

… action to create debt by borrowing $66,792.88 to purchase three vehicles at a price of  $66,792.88

$9,000  for a 2011 Chevy Tahoe
$27,253.44 for a 2016 Ford with additional equipment for $2,839.44
$27,500 for 2011 Tahoe
$200 bank fee
4.9% interest for 66 months.

Police Chief Marcus Thurman told The Luther Register the the purchase has been put off for too long.

“To save the taxpayers money we have quite honestly babied these two vehicles to keep them on the road. It must be remembered these vehicles are not like the average citizen’s vehicle, they run constantly on ten hour shifts every day of the year and due to that, they are under a lot of wear and tear, even though they receive constant maintenance and oil changes,” said Chief Thurman.

Police vehicles in the back of Town Hall.

Police vehicles in the back of Town Hall.

Luther police officials say they have five full-time officers and one reserve officer, and six patrol cars, with one in reserve to cover 16 square miles of the Town of Luther.

Former Mayor Lea Ann Jackson and others do not question the need, but the timing and cost.

“My concern with the expenditures approved at the last Board meeting aren’t a result of the specific items being purchased. It is based on the need for the Board to manage the resources of the Town as opposed to a crisis demanding a response,” said Jackson.

She said the cash in the bank for the Town reinforces concerns for the future and meeting other obligations as the year progresses.

As of September 30, 2016, the Town Treasurer listed the Town General Fund at $87,665.87 and the LPWA General Fund at $55,173.39. Jackson pointed out that the Town has more money going out in September than it took in.

Other numbers of the Town released at the October 11, 2016,regular meeting include:

  • $20,886.54 – bills including $1,593 for gasoline and diesel; $600 for attorney fees; $1,764.16 to AT&T and $441.66 for Eastern Oklahoma County Partnership
  • $20,122.42 – payroll for Town, LPWA and Police Department
  • 146 – number of calls completed by Luther Police Department including 122 miscellaneous calls, 16 agency assists, two arrests and two accidents
  • 24 – number of calls completed by Luther Fire Department – 11 EMS and 13 Fire.

 

The Thursday, October 20, LPWA meeting is at 5 pm and will be on Periscope. 

3 Responses “Financing new vehicles”

  1. Cori
    October 19, 2016 at 7:44 pm

    I’m not opposed to new vehicles. My concern is if it requires a loan why is the interest rate so high? Did they shop around for the best rate? 4.9% is extremely high for 2016 vehicles! I would like to know who the loan is held with?

    • October 19, 2016 at 7:54 pm

      Presume it’s with their usual lender, Luther First Bank & Trust, but I’ll verify. Thanks for the comment.

  2. PJ
    October 20, 2016 at 12:05 am

    A 5 1/2 years is a long note. Did they say what the payments were monthly and the increase monthly for insurance? New trustees coming in will have to deal with it I guess. Doesn’t really matter what any of us think.

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