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Cary warns vehicle and equipment fund may hit zero; plow truck and wood chipper purchases deferred
Summary
Staff told trustees the vehicle and equipment fund faces exhaustion at the end of FY26. Routine replacement requests — including a heavy plow truck and a wood chipper — were deferred and staff asked the board for guidance on funding options, such as a non-home-rule sales tax.
Village staff told the Cary board during the March 15 budget workshop that the vehicle and equipment fund is expected to be depleted at the end of FY26 unless a new revenue source is identified.
Administrator Morimoto and public works leadership said the village’s equipment-replacement program has relied historically on a mix of dedicated impact fees and fund balances. Those mining-related impact fees that once supported vehicle purchases have ceased, and staff forecast the vehicle and equipment fund reaching a zero balance in FY26. The proposed FY26 vehicle/equipment expenditures in the presentation total about $381,000; staff said an additional heavy-plow truck would cost roughly $320,000 in today’s dollars and that a replacement wood chipper is estimated between $125,000 and $175,000.
Because of the projected shortfall, staff said they are temporarily deferring the additional heavy-plow truck and the wood chipper order until a funding plan is identified. Administrator Morimoto told trustees: “we are deferring those requests, temporarily.” Public works staff also said the chipper is used frequently — multiple days per week depending on storm activity — and that rental is an operational option but does not address recurring operational needs.
Why it matters: Equipment such as plow trucks and wood chippers are critical to winter operations, storm response and routine tree-trimming work. Staff noted delivery lead times for heavy equipment can be long and prices continue to rise, so delays in purchasing may increase future costs and lead times.
Board discussion and options: Trustees and staff discussed funding strategies, including using unassigned general fund balance, seeking grant matches where eligible and the possible revenue option discussed elsewhere in the workshop — a local non-home-rule 1% general sales tax — which staff estimated could generate roughly $750,000 annually and be allocated to capital and equipment. No formal action was taken at the workshop; trustees asked staff to bring back options for sustainable vehicle and equipment funding.
Ending: Staff will prepare funding options and timetables so the board can consider the trade-offs between using reserve balances, delaying purchases, or establishing a dedicated revenue source for equipment replacement.
