Road and Bridge weighs buying graders vs. leasing as five machines come off lease in February

Road and Bridge staff told the Board of County Commissioners at a budget hearing that five motor graders will come off lease in February, and the department presented leasing and purchasing options that would affect next year’s budget. The decision matters because whichever financing path the county chooses will change the department’s ongoing lease payments and its capital profile: staff said one option would continue a lower monthly lease payment (about $4,000 per machine) while another option would increase the monthly payment (about $6,240 per machine) and permit purchase of all five machines for $1 at lease end. Staff explained the trade-offs: the higher monthly payment would add roughly $2,200 per machine per month compared with the lower lease option, which staff multiplied across five machines and years to estimate a multi‑year difference; staff roughly estimated the extra cost over the term could be in the low tens of thousands annually and about $125,000 over a five‑year span depending on timing. County staff also discussed the cash purchase price quoted by dealers (staff cited a rough cash price in the hundreds of thousands per machine), the maintenance agreements that could accompany a buy versus lease, and the option of obtaining a bank note or equipment line of credit to finance purchases at a potentially lower rate than vendor financing. “Those five graders are coming off lease in February,” Road and Bridge staff said, and they told the commissioners they would return in the November–December timeframe with a formal proposal to buy or continue leasing so the board could make a budget adjustment if needed. Staff said the current budget includes the existing lease payments through February, but the increase in payment would need to be reflected in next year’s figures if the board chooses the higher‑payment buyout option. Staff also said the county could solicit competitive financing (RFQ/RFP to banks) and that an equipment line-of-credit could offer flexibility because different pieces of equipment cycle off at different times; staff noted that line-credit rates may be higher and more variable but could simplify future purchasing cycles. No formal board vote was taken; staff committed to providing amortizations, interest-rate comparisons and firm proposals later in the year so commissioners could decide before the machines come off lease.