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Council approves $55,000 cruiser financing, accepts local bank rate
Summary
The council approved financing for a new police cruiser priced at $55,000 and voted to accept Community National's monthly-payment financing at a fixed 4.82% rate; chief said the item was in the capital plan.
The Newport City Council voted to approve financing for a replacement police vehicle after the police chief outlined the department's capital plan and financing options.
Police Chief (Speaker 8) said the department annually replaces one cruiser and had originally budgeted $50,000 in the capital plan for FY2024-25; the bid on a Tahoe-style cruiser was $55,000. He said an earlier quote a year ago had been $43,000 and that vehicle-market price growth explained the increase. The vehicle includes a 5-year/100,000-mile powertrain warranty.
Treasurer Johnson (Speaker 6) presented financing options: a local bank (Community National) offered a monthly-payment option at a fixed 4.82% rate, while an alternate financing source quoted 5.62% fixed. Council discussed monthly versus semiannual payments and the effect on cash flow. The chief said he would absorb the overage in his departmental budget for the year and adjust future capital planning.
Council member (unnamed) moved to accept the Community National monthly-payment option at 4.82%; the motion was seconded and approved by voice vote. The council did not change the amount of the appropriation but noted the capital plan had set aside $50,000 and the budget impact would be managed within the department's debt-service lines.
Next steps: Staff will complete loan paperwork with the selected lender and the chief will adjust the department budget to absorb the $5,000 overage for FY2024-25.
