Benton County fleet plans hourly rate increase after break‑even quarter

Benton County fleet staff told the Board of Commissioners on Dec. 17 that a multiyear review of the enterprise fund and recent operational changes have put the fleet on a firmer financial footing and that staff expects to raise external billing rates next July.

"The estimate of that rate will be $1.93 per hour," Gary Stoccoff, fleet manager, told the board. Stoccoff said a 2023 deeper analysis found the county had been charging well below market to external customers and that a mid‑biennium adjustment in July improved cost recovery. He said the fleet broke even in the third quarter of 2024 after staffing, billing fixes and rate adjustments.

Why it matters: Fleet operates as an enterprise fund that charges internal and external customers for vehicle maintenance and spec work. Undercharging external customers can force the county to subsidize the service from reserves. Stoccoff told commissioners that earlier rates — cited in the analysis as roughly $1.43 to $1.53 per hour for some customers — were below the breakeven point identified in the review.

What staff proposes: Stoccoff said the county notified external customers that rates would rise and that staff estimates a raise to about $1.93 per hour effective July 1, 2025. He said that figure may move slightly but is unlikely to decline and is comparable with private and public providers in the region. He also said staff will:

- refine parts pricing and billing to capture revenue now being left “on the table,” - establish clearer service‑level agreements and inventory controls, and - set realistic mechanic productivity targets in line with industry norms (staff cited roughly 1,473 billable hours per year as an industry standard).

One external customer, the City of Lebanon, has told staff it will seek other providers once rates rise, Stoccoff said; commissioners acknowledged that proximity and service levels can create effective discounts for nearby agencies. Stoccoff added that the fleet has no standing external contracts now but plans to address service agreements in the coming budget cycle.

Commissioners’ response: Chair Zann Ojiro and Commissioner Pat Malone thanked staff for progress and asked staff to consider whether a public‑entity discount was appropriate; Stoccoff said discounts often arise informally through service level and proximity rather than an explicit policy. Commissioners also expressed caution about continued use of county fund balance but welcomed the Q3 improvement.

Next steps: Staff plans to finalize rates as part of the 2025 budget process and return with another update in March 2025.

Ending: The board acknowledged the report and scheduled follow‑up as part of the budget calendar.