City of Lapeer - Budget Workshop - April 14, 2025

The meeting was called to order by Mayor Jeramy Hing 4:21. The primary focus of the workshop was the authorization of a purchase for a backer truck, a long-standing item within the city's Capital Improvement Plan (CIP) 6:30.

City Manager Mike Womack presented the financial justification for the purchase, noting that the city had managed to secure a price extension from the manufacturer until April 15th, allowing the commission to address the matter during this meeting and avoid a 30% price hike 6:30. The purchase is estimated to result in a savings of about $70,000 compared to the original $700,000 budget 7:13.

• Agenda Approval: Approval of the workshop agenda including the addition of the backer truck purchase authorization 5:04.
• Backer Truck Procurement: Authorization of the purchase of a Vector 2100 from McQueen Group 7:35.
• Fiscal Responsibility: Discussion regarding the impact of depreciation on large vehicle assets and long-term budgeting for heavy equipment 7:56, 8:37.
• Infrastructure Maintenance: The necessity of the vehicle for the operation and maintenance of the city's sewer system 9:36.

• Mayor Jeramy Hing: Presided over the meeting 4:21.
• Mike Womock: City Manager, provided background and financial context for the vehicle purchase 5:48.
• Commissioner Linda Glisman: Moved to approve the meeting agenda 5:04.
• Commissioner Joshua C. Atwood: Seconded the motion to approve the agenda 5:04.
• Commissioner Stefan Brady: Moved the motion to approve the truck purchase and raised concerns regarding depreciation and future budgeting 7:35, 7:56.
• Commissioner Swendell: Seconded the motion to approve the truck purchase 7:35.

• Agenda Approval: A motion was made by Commissioner Glisman and supported by Commissioner Atwood to approve the agenda, including the authorization of the backer truck purchase 5:04. The motion carried 5:26.
• Backer Truck Purchase Authorization: A motion was made by Commissioner Brady to "approve the commitment to purchase with McQueen Group for a vector 2100 i as stated in the CIP project 22968" 7:35. The motion was supported by Commissioner Swendell 7:35.
• Financial Impact: The purchase is expected to save the city approximately $70,000 compared to the original $700,000 budget 7:13.

• Cost Avoidance: The purchase was prioritized to avoid a 30% price increase that was scheduled to take effect after April 15th 6:30.
• Operational Necessity: The vehicle is essential for the maintenance and management of the city's sewer system 9:36.
• Maintenance Efficiency: City Manager Womack noted that the cost of maintaining aging vehicles is becoming higher than the cost of replacing them 9:30.

• Depreciation and Timing: Commissioner Brady expressed concern regarding the rapid depreciation of large vehicles, noting that a 2018 model previously lost half its value, and questioned whether the purchase should be deferred to a later year 7:56, 8:16.
• Long-term Capital Budgeting: Commissioner Brady raised questions regarding the city's strategy for budgeting for future large-scale vehicle replacements, such as those costing three-quarters of a million dollars 8:37.
• Asset Management: City Manager Womack addressed the challenges of asset depreciation and the reliance on the expertise of city mechanics to determine when maintenance costs outweigh the benefits of keeping older vehicles 9:18, 9:30.