Finance staff described a new Central Fleet Fund created for the 2026 budget that will charge departments for maintenance and vehicle-replacement costs on an ongoing basis, rather than requiring large one-off purchases to appear in a single year’s operating budget.

“An internal service fund…charges other funds or other departments within the city to provide services,” Director Grills explained, describing the new fund’s purpose: smooth the operating‑budget impact of high-cost replacements such as fire engines.

How it works: each department will be assessed a share of central equipment maintenance (salaries, parts, fuel, contracted repairs) and will contribute an annual replacement amount toward vehicles it currently operates. Staff said the allocation used historical maintenance costs and replacement-value calculations to apportion each department’s share. The finance materials note the Central Fleet Fund is the city’s seventeenth fund and was created after a council referral to reduce annual operating swings caused by large vehicle purchases.

Implications: Councilors asked about magnitude and timing. Fire‑department staff and finance staff explained the fire department’s annual replacement assessment is substantially larger than for patrol cars because apparatus and ladder trucks cost far more to purchase and maintain; staff said ladder-truck lead times are multiple years. Finance staff emphasized the Central Fleet Fund is not yet “mature” and that the initial annual contributions are intended to responsibly seed the fund and smooth future purchases, not to fully pre-fund all vehicle replacements immediately.

Discussion vs. action: committee members discussed the fund and requested department-level schedules; staff provided supplemental material pages showing allocations and indicated the finance committee will continue annual monitoring. No separate ordinance or vote to finalize the fund was recorded during the session beyond including the fund in the recommended 2026 budget materials.

Ending: staff said the Central Fleet Fund will be reviewed annually and adjustments to contributions can be made if the fund balance grows faster than expected or if replacement schedules change.