City implements fleet fund for sustainable vehicle management amidst rising costs

The Brigham City Council meeting on May 3, 2025, focused on the city's 2025-26 budget presentation, highlighting the management of the fleet fund, which is essential for the purchase and replacement of city vehicles. This fund is designed to ensure financial sustainability while covering not only standard vehicles like trucks and cars but also heavy machinery, including fire engines and backhoes.

The fleet fund operates by purchasing vehicles upfront using available cash or fund balance. Each vehicle is assigned to a specific department, such as police, public works, or parks. These departments then pay an annual lease charge back to the fleet fund, calculated based on the vehicle's original purchase cost divided by its expected useful life. For instance, a vehicle costing $50,000 would incur a $10,000 annual charge over five years. This system allows the fleet fund to recover the full cost of each vehicle over its lifespan.

Historically, this model has prevented spikes in departmental budgets and eliminated the need for last-minute capital requests. However, recent discussions revealed that the fleet fund is facing challenges in maintaining its sustainability due to inflation. The budget includes a 2% inflation factor to account for future replacement needs, but the city has experienced significant increases in fleet costs.

The council emphasized the importance of proactive planning and regular updates to keep the fleet fund solvent and avoid unexpected costs for departments. As the city navigates these financial challenges, the fleet fund remains a critical component of its budgeting strategy.