Vacaville approves lease financing to replace fire vehicles; plan spreads orders across two years

Vacaville City Council on March 11 approved a lease-purchase financing plan to replace the city's aging fire apparatus and support vehicles, authorizing staff to finalize documents with Webster Bank.

The financing will cover 17 vehicles identified in a recent fleet study: four ambulances (reboxes), two Type 1 engines, two Type 5 engines and nine support vehicles (pickups and SUVs). Staff solicited proposals from five lenders and selected Webster Bank for offering a low quoted rate (4.29 percent) and flexibility to extend repayment terms to 15 years on select apparatus.

To avoid a replacement 'cliff' that would bunch useful life cycles at the same time, staff recommended ordering and financing the equipment across two fiscal years. The first set of orders would proceed after the financing closes later in March, then staff would order the remainder in fiscal year 2025-26.

Under the plan, payments will be tied to delivery timing rather than a fixed annual amount. Staff presented an estimated payment profile that begins with lower annual payments that rise as larger apparatus arrive, then decline as shorter-life vehicles are retired. The financing assumes the city will remain within its existing annual vehicle funding allocation ($2.3 million from Measure M and other sources) and spread costs across the 15-year schedule.

Public safety and finance staff said the approach balances the urgency of replacing critical apparatus, long delivery lead times for custom fire engines, and current budget constraints.

Ending: Council approved the resolution authorizing execution of financing documents and directed staff to finalize the transaction and proceed with orders according to the staged schedule.