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Board approves shift from leasing to purchasing school buses to cut interest costs

July 28, 2025 | Greater Albany Public SD 8J, School Districts, Oregon


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Board approves shift from leasing to purchasing school buses to cut interest costs
The Albany School District Board voted to approve a new school bus purchasing plan that transitions the district away from annual leasing and toward buying buses outright.

The board'approved motion, moved by Mister Sharman, authorized staff to follow the purchasing plan the district presented. The superintendent and transportation staff told the board the primary advantages are lower interest costs and avoiding future lease obligations that would commit district funds in lean years.

"When I came to the district, we were in the practice of every year leasing buses and increasing our lease debt. We are transitioning out of that and transitioning to purchasing," the transportation presenter said. Staff showed a multi-year chart the presentation described as reflecting lease costs declining as purchases replace leases.

Funding details: Staff said the district receives reimbursement at 70% for eligible costs through the basic school support transportation grant and that the district will use general fund transfers and beginning fund balance to cover the remainder. Staff also explained that buses ordered in one fiscal year are typically received the next year; the presentation said buses ordered in 2024-25 would be received and paid for in 2025-26.

Operational approach: For each vehicle purchase staff said it will seek three quotes, present needs and quotes to the board for approval, and then place orders following board authorization. The presenter said the district currently has one Type 10 van on order and planned purchases for special-education buses are under review.

Board discussion was brief and focused on budgeting and fleet age. A board member asked whether the change would affect the rate of fleet replacement; staff replied the replacement rate would remain the same while interest expense declines.

The motion passed with an affirmative voice vote.

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Scribe from Workplace AI
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