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Board weighs lease vs. purchase for new landfill compactor, plans special meeting
Summary
Board members favored leasing a recommended compactor to preserve flexibility; staff outlined an outright purchase cost near $1.0 million and a 60‑month lease estimated at about $19,137 per month (software and warranty included) and said leasing would require an annual transfer from operating to equipment funds of roughly $229,000.
Members of the Taos Regional Landfill Board discussed procurement options April 16 for a new landfill compactor, weighing an outright purchase against a five‑year lease.
Staff reported an outright purchase price near $1,000,001.74; the vendor’s 60‑month lease would carry monthly payments in the neighborhood of $19,137 and would include software and extended warranty wrapped into the lease. Finance staff said the lease would require annual transfers from the operating fund into the equipment replacement fund of roughly $229,000 to cover the recurring payments. Purchasing the machine outright could require borrowing and debt service; staff estimated a borrowing capacity but said the city would need to weigh long‑term financing costs.
Several board members favored leasing to allow future upgrades and to avoid owning an underused asset; staff and the finance director warned that the recurring transfer reduces operational capacity and that the board should confirm exact lease terms (any lump-sum up-front payment and return-condition clauses). Members asked that the compactor lease/purchase be placed on the next regular agenda and discussed a potential special meeting to approve a single‑item procurement if needed to secure the machine.
