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Colmar Manor approves acquisition of public‑works truck; budget amendment stalls
Summary
Council authorized purchase/lease of a 2026 F‑350 public‑works truck (quote $67,153) and agreed to a 5‑year purchase lease option at 5.89% (annual payment $15,010.11), but the budget transfer of $1,100 needed to fund the first year's payment did not pass the required vote.
The Colmar Manor council on Feb. 16 approved moving forward with acquiring a 2026 Ford F‑350 pickup truck to support Public Works but stopped short of approving the budget amendment needed to fully fund the first year's lease payment.
Treasurer Baden presented the committee with a New Holland Auto Group quote for a 2026 F‑350 with upfitting and an 8‑foot snow plow for $67,153. He also presented a financing proposal from Tax Exempt Leasing Corporation: a five‑year purchase lease at 5.89% producing an annual payment of $15,010.11. "The equipment cost is $67,153 ... the annual payment over 5 years will be $15,010.11," Baden said.
Baden explained two reasons to favor a lease: it spreads the expenditure over five years to reduce budgetary impact in a single year, and the town receives a tax‑differential credit on the county tax rate for providing equipment and services. "By financing it, you're paying $15,000 over 5 years ... You also get the differential on the county tax rate," he said.
Council debate focused on cost versus budget impact. One council member argued an outright purchase would avoid financing costs and questioned whether the tax‑differential benefit would offset the extra financing expense. The motion presented combined three elements: approve the vehicle purchase through the State contract, enter a five‑year purchase lease with Tax Exempt Leasing Corporation, and transfer $1,100 from unreserved funds to the vehicle purchase account to fund the first year's payment.
When the council voted, the vehicle purchase/lease portion carried in voice voting, but the bundled budget amendment requiring four votes did not secure the necessary support—leaving the specific budget transfer unsettled. The treasurer said the town's unreserved funds stood at about $861,000 (with a separate ARPA reserve of about $248,000), so funds exist if the council chooses to purchase outright; the discussion ended with the approved purchase/lease language but without a finalized budget amendment to fund the first year.
Next steps: staff will clarify the budget‑transfer mechanics for the council and can revisit a separate motion to effect an outright purchase or complete the budget amendment if members bring a new motion.
