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Fountain Green weighs buy vs. lease for public works truck as July 1 lease ends
Summary
Council members and staff discussed options for a public works truck whose lease expires July 1: extend the lease, lease a replacement with higher mileage allowance, or purchase a truck outright. Staff will gather pricing and state contract options for the council’s consideration next month.
Fountain Green council and staff discussed whether to extend, replace, or buy outright a public works truck whose lease comes up July 1, citing unusually high mileage on the vehicle and potential mileage overage charges if the current lease is turned in.
A presenter said the current leased truck has about 50,000 miles, compared with the typical 24,000–25,000 miles expected over a three‑year lease, and that higher mileage could trigger overage charges if the lease is not adjusted. “This truck has pushing 50,000 miles,” one speaker said, noting the city typically plans for 12,000 miles per year on leases but had seen proposals at 20,000 miles per year.
Officials outlined three options: extend the existing lease for another year, return the truck and lease a new vehicle (with a higher mileage allowance), or buy a truck outright. A price example discussed in the meeting for a new vehicle was about $55,264; participants weighed that cost against estimated overage charges, maintenance responsibilities, and resale value.
Speakers discussed the math of lease overage and resale. One participant estimated a potential overage charge of about $0.40 per mile and described that as a way to compare total cost of leasing versus purchasing; another said that jurisdictions with strong maintenance records sometimes buy vehicles and recoup value on resale.
Procurement options were discussed: staff recommended checking state procurement contracts and contacting approved dealers for comparative pricing across makes and trim levels. Council members agreed staff should obtain pricing from multiple authorized dealers and present comparable packages (Ford, GM, Dodge) so councilors can compare like features.
Participants also discussed financing and budget treatment: the cost could be split across roads, water and sewer budgets, and the council could place a purchase request on the next council agenda. No formal motion or vote was recorded during the work session; members indicated the decision is expected at a future council meeting after staff returns with bids and comparisons.
