Bannock County commissioners voted to authorize purchases recommended for Road & Bridge equipment after staff described a multi-year leasing strategy and the trade-offs between leasing and purchasing.

The vote followed a presentation from Road & Bridge staff explaining that two leased pieces—a grader and a loader—are being returned at the end of five-year leases and that the department currently leases 11 pieces of equipment, including one backhoe. “We used to lease on a 5,000 hour schedule for five years, and now we’re at a 3,” Road & Bridge staff said, adding the department was “coming in right at 3.”

Staff highlighted the cost differences between continuing leases and buying. “I wanted to point out to the board on the grader, we’re gonna be paying $88,873 in interest. Over the life of the lease. And on the loader, we’re gonna be paying $66,751,” Road & Bridge staff said. The staff estimated that switching some machines from lease to purchase could save roughly $150,000 in interest, while also noting risks: used machines near a major overhaul may have diminished resale value and will be out of warranty if purchased.

Speakers discussed model sizing and hours of use; staff said the department chose a slightly smaller grader (150-series rather than 160-series) that still meets power needs and that tire replacement and out-of-warranty maintenance would be additional costs if machines were purchased. Staff also said one leased backhoe is likely to be purchased at lease end, while the other ten pieces were being evaluated for continued leasing or purchase.

Commissioner (Speaker 2) moved to “authorize and approve the purchases recommended.” The motion passed by voice vote with commissioners responding “aye.” The meeting transcript does not record a roll-call tally by name.

Budget planning and next steps were discussed: staff said it would be appropriate to reexamine lease-versus-purchase decisions in next year’s budget cycle and suggested a commissioner-led analysis. Commissioner Bullock was asked to review lease-versus-purchase options for the next budget year. Members also suggested meeting with equipment vendors such as Caterpillar to review their analyses and pricing.

Why it matters: the county’s fleet decisions affect operating costs, warranty exposure and maintenance workload for Road & Bridge, and commissioners directed a future review so the budget can reflect buy-versus-lease choices.

Staff and speaker list for this item appears in the meeting record and is summarized below.