Government Fleet Top News

Delay in Possible Purchase of City Vehicles Due to Outstanding Loans

February 11, 2005

NEW ALBANY, IN – The New Albany City Council has held off on the possible purchase of new police cars and garbage packers, according to the New Albany Tribune.

The issue came up after Councilman Bill Schmidt presented information he had gathered on the loans the city had taken out. The total Schmidt presented was $10,200,000, which included $8,000,000 that the council approved to borrow in June 2003 from the sewer utility to go into the general fund.

Schmidt said he was unsure of how much was still owed and how much had been paid off. Before the information about the loans was revealed, the council proposed an appropriation for $200,000 for the purchase of eight new police cars, as well as an appropriation for $220,000 for two new garbage packers.

The debt information should have been known before the budget hearings, stated Councilwoman Beverly Crump. In addition, she said the information should have been made clear before salary increases were given.

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