Billings reviews FY27 equipment replacement plan as staff, public press for clearer schedules and costs

Nick Westberg, fleet manager for the city of Billings, outlined the proposed FY27 equipment replacement plan Thursday, telling the council the program covers city equipment with a useful life of three years or more and a value of $10,000 or higher and that it is funded through annual contributions across departments.

Westberg said staff began the process with 175 pieces of equipment eligible for replacement, deferred 125 and recommends replacing 50 items this year. He described ERP guidelines that weigh mileage, hours and age and described a 20‑year planning horizon. "At the start of this process, we started with a 175 pieces of equipment eligible for replacement. Through our process, we were able to defer a 125, leaving 50 recommended for replacement," Westberg said.

The presentation included a five‑year outlook that Westberg described as "right around $9,000,000" for this year and showing $22,000,000 the following year because deferred items roll forward. He said deferrals make subsequent years look large on paper but that many deferred units are still serviceable.

Councilors asked technical and policy questions about disposal and resale. Westberg said the city moved its surplus sales to the nationwide online auction Public Surplus two years ago because the vendor charges no seller fee and reaches a wider market. "If a piece of equipment hammers for 1000 dollars, we get 1000 dollars," he said, noting some local auction houses charge 10–11 percent.

Members also pressed whether lifespan assumptions could be stretched to reduce the recurring spike caused by annual deferrals, citing different usage patterns across departments. Westberg pointed to class‑specific guidance (for example, graders eligible at 10 years) and warned that usage patterns vary: a grader used heavily in winter will accumulate hours faster than landfill equipment used intermittently.

During public comment on the ERP, residents raised related service questions. One commenter who identified himself as Warren urged the council to consider using vacant city buildings to help people sleeping outdoors, arguing the mission model and drug‑testing requirements exclude some people from emergency shelter. Another public commenter questioned whether expensive trucks used for cardboard pickup were the most cost‑effective approach.

The ERP presentation closed with staff noting supplemental budget requests and that the plan includes provisions for upgraded equipment through SBRs. No final binding votes were taken at the work session; staff will carry the ERP forward in the budget process and provide follow‑up as requested by council.