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Monday, 18 August 2014 20:52

Fund balance discussed for city vehicle needs

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City council may not immediately make a decision on whether to go with installment financing to make critical vehicle purchases after one of its members discussed the option of pulling the nearly $600,000 from the undesignated fund balance.

The discussion came following a public hearing this evening where no members of the public specifically addressed the proposed vehicle purchase. One speaker addressed the need to complete the carpeting project at the library, while another praised council for holding the public hearing as a measure of transparency.

“If I had to guess, I would probably say no,” Mayor Emery Doughtie said of taking a vote on the matter at Tuesday's 7 p.m. meeting.

Doughtie said the city would have to check if the proposals could be extended if council decides to not make an immediate decision.

Councilman Wayne Smith, who suggested buying the vehicles from fund balance, said after the meeting, “I think we would be better off if we took out of the fund balance rather than putting another debt on the citizens of Roanoke Rapids.”

Questioning by Smith during the meeting showed the city currently has $2.2 million being funded through installment financing that equates to around $400,000 a year in payments.

Doughtie said during discussion after the hearing. “We're working diligently to not increase the tax burden. It's catching up with us now.”

City Manager Joseph Scherer said afterward while it was his recommendation to use installment financing, using the fund balance is an option.

At issue is using a First Citizens Bank installment financing package to fund vehicle replacement for the police, fire, public works and recreation departments using a three-year payback plan.

The total price of the vehicles is $558,495 at a 1.4 percent interest rate. The city would male annual payments of $191,401.78.

The fire department has requested a Ford F-250 four-wheel drive truck and a Ford Expedition. These vehicles would replace a 2000 Ford Crown Victoria with 105,241 miles and a 1996 GMC Yukon with 184,580 miles.

The police department is seeking three 2014 Dodge Chargers; two program Dodge Chargers and two Toyota Camrys. The Camrys would not be pursuit vehicles, Chief Andy Jackson said, but would be used by detectives.

The department needs to replace the following vehicles:

• A detective's 2003 Ford Expedition with 142,735 miles and array of mechanical issues.

• A detective's 2004 Dodge Durango with 115,000 miles.

• A 2006 Crown Victoria with 124,278 miles.

• A 2007 Crown Victoria with 86,885 miles.

• A 2006 Crown Victoria, which on the last reading before the odometer broke had 97,000 miles.

• A 2007 Dodge Charger, which has engine, transmission and suspension problems.

• A 2007 Dodge Charger with a blown engine.

The parks and recreation department is looking at an F-150 crew cab and F-150 four-wheel drive super cab. These vehicles would replace a 1999 Dodge Ram with 132,029 miles, which has numerous problems and a 1995 Nissan pickup, which has 75,500 miles, but needs manual transmission work and uses oil weekly.

The public works department needs two F-150 super cabs with a trailer-towing package for the street department.

For its solid waste department, it needs a new trash truck, which it is piggybacking off the city of Thomasville's bid. It needs an F-250 four-wheel drive vehicle with a utility body and trailer-towing package for property maintenance. The truck would be used for heating and air work, electrical work and plumbing and would be equipped for those needs.

Public works would be replacing the following vehicles:

• A 2000 Ford F-150 with 194,410 miles and worn out crank bearings.

• A 1998 Ford F-150 with 177,904 miles and a transmission leak.

• A 1995 Nissan pickup, which before the odometer broke registered 110,000 miles. It also has a stopped up converter and hydraulic clutch issues.

• A 2002 Sterling trash truck with 73,936 miles that has to be started with starter fluid and has air brake leaks.

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