The Jackson City Budget Committee on a voice vote approved proposed budget amendment No. 36 to reallocate $285,309.90 from FY26 capital to operating to begin a citywide vehicle-leasing program.

Ron, a staff member who presented the proposal, told the committee the city's fleet is "very out of date," with roughly 99 vehicles at least 10 years old and more than 100 vehicles more than 20 years old in prior counts. The amendment shifts capital funds that had been budgeted for two capital items into monthly operating lease lines so the city can lease roughly 65 vehicles this year instead of purchasing about seven vehicles originally planned in the bond package.

According to the presentation, the leasing plan would: move many purchases into monthly operating payments for the remainder of the fiscal year; standardize vehicle models (from as many as 20–30 different types down to roughly six types); permit necessary upfits for specialized uses under one-ton capacity; and rely on the Sourcewell cooperative contract so the city would not need to re-bid the leases. Staff said the lease terms are expected to be roughly five to six years, with monthly payments beginning when vehicles are delivered.

Nathan, a staff member in finance, and Ron said early modeling shows the approach could reduce annual operating costs and provide multi-year savings once older vehicles are sold and fleet downsizing occurs. The presenters said the analysis estimates a reduction of about $900,000 next year under the model and a 10-year net savings of roughly $1.4 million, though those figures will vary depending on how many older units are sold and timing of replacements. The committee requested the most recent model be distributed to members before final implementation; staff agreed to circulate the detailed analysis.

Committee members asked about long-term obligations, how the leases will be funded in future budgets and whether the leasing plan is budget neutral. Presenters said early-year costs will be offset in part by proceeds from selling retired vehicles and by reductions in capital spending; they cautioned that year-to-year cash flow will fluctuate but that the long-term model projects net savings and more predictable fleet budgeting.

The committee approved the amendment after a motion and second and a voice vote. Members directed staff to share the leasing models and supporting documents with the committee for review.

The leasing reallocation was described as a budget-neutral restructuring of existing funds rather than a new appropriation; the council and staff will monitor operating impacts during next year's budget process.