Huntley 158 recommends five-year lease-to-own for four replacement buses to ease FY27 cash flow

District transportation staff presented a bid on April 2 for four replacement vehicles and recommended a five-year equity lease-to-own to manage cash flow.

Staff explained the recommended purchase includes two 54-passenger diesel buses and two 14-passenger activity buses. Because the district owns and operates its fleet, staff said the lease option helps spread capital outlay over five years, with annual lease payments cited in the presentation of roughly $118,000. The memo in the meeting materials listed a total purchase price for the four buses (quoted in the meeting as $536,000). Finance staff explained the lease structure (5 years to zero) yields an estimated near-term budget cash-flow savings referenced in the discussion as about $418,000 for FY27 because the district would avoid a large up-front outlay during that fiscal year.

Staff discussed fleet composition (diesel, propane and a small number of electric buses), explained practical fueling limits for propane on long-distance trips and noted driver ergonomics and warranty coverage considerations. Delivery was expected by August, pending specific lot modifications to meet bid specifications.

Board members asked about reimbursement mechanics for state transportation funding and whether lease expense is treated differently than capital purchase for reimbursement; staff explained reimbursement is computed on depreciation methods and that leasing aligns cash flow with expected reimbursements. No final purchase vote was taken at the committee meeting; staff said the recommendation will move forward to the regular board meeting.