Finance committee approves $55,002 in claims, hears plan to shift from leasing to purchasing vehicles

The Michigan City Common Council Finance Committee approved $55,002.24 in claims at its meeting on Oct. 7 and discussed a planned shift from leasing municipal vehicles to purchasing them as leases expire.

The committee approved a claims docket that included a Riverboat Fund (Fund 2235) claim for $37,799.86 to La Porte Chrysler for two months of lease payments for Dodge Durangos used by the police department and a Rainy Day Fund (Fund 2237) claim for $17,425 to NWI Asphalt. Committee members were told by staff that NWI Asphalt’s total bid for the project was $34,008.50 and that the contract required a half-down payment; staff stated the half-down amount as $17,004.25 while the submitted claim was $17,425.

Committee members asked about the city’s approach to vehicle procurement. A committee member questioned whether the city had evaluated leasing versus purchasing and whether buying would be better going forward. A staff member said the city plans to transition away from leasing as current leases expire, noting that departments — including police and fire — have reported problems when leased vehicles were involved in accidents and that keeping and owning vehicles was seen as a better long-term option. The staff member also said purchases are typically made with cash rather than financed and that the costs will be worked into future budgets.

A committee member made a motion to accept the claims as presented; another committee member seconded. The committee approved the claims by voice vote.

At the meeting’s close, Tim Beatri, serving as interim finance committee chair, reported statement-of-cash-position balances of $5,105,702.49 in the Riverboat Fund (2235) and $1,150,065.42 in the Rainy Day Fund (2237), for a combined total of $6,255,767.91. The committee then adjourned.