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Commissioners review financing options for $337,132 oil-distributor truck already built for county use

April 05, 2025 | Owen County, Indiana


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Commissioners review financing options for $337,132 oil-distributor truck already built for county use
Owen County leaders on April 3 reviewed options to purchase a 3,500-gallon oil-distributor truck that was ordered in 2023 and is now finished and awaiting delivery. County staff described the vehicle as necessary for tack-coating, chip-and-seal, crack filling and other road-surface operations.

The dealer and finance representative told the board the truck — with factory-installed distributor tank and a seven‑year warranty option covering engine and after‑treatment components — was priced at $337,131.67. Sales documents presented to the board included two types of finance quotes: one with payment starting at delivery and one that deferred the first payment 12 months after delivery. The firm also presented varying term lengths (five, six and seven years) and described an optional seven‑year, 250,000-mile warranty for major engine systems.

Commissioner Gary Burton said the truck had been ordered in 2023 because the county’s previous oil-distributor truck had reached the end of its useful life and was difficult to maintain. “That truck takes care of what roads we pave, what we chip and seal with, dust control — without this truck, we don't function as a highway department,” Burton said.

Financial context: Auditor Sheila Reeves and county staff said the county has unpaid claims that complicate immediate cash payment; the board asked the sales representative and Finance Manager Perry to leave a written proposal for review. Commissioners said they plan to present a purchasing/financing package to the county council at its next meeting and will aim to finalize a funding plan at the second commissioners’ meeting in two weeks.

Warranty and operating notes: The vendor said the distributor uses an electric fan, a 3,500‑gallon tank and can spray up to 24 feet. The dealer emphasized that the vehicle incurs storage/holding costs (about $1,000 per month quoted in the presentation) while awaiting delivery or financing decisions. The sales representative also noted Sourcewell and other cooperative purchasing or municipal financing channels that can reduce procurement friction for local governments.

Next steps: Commissioners asked staff to gather finance quotes, confirm warranty coverage and determine whether existing bridge or vehicle-rotation funds can be reallocated without requiring an additional appropriation. The board agreed to present a finance plan to the county council for guidance on how to structure payments, rather than asking for a single immediate appropriation for the full purchase price.

Ending: Commissioners said the truck is a needed operating asset and that they will return with a recommended financing approach at the next meeting so the council can weigh options.

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Scribe from Workplace AI
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