Finance director says equipment fund is solvent as staff models fleet leasing impact

Finance Director Chuck Fox walked the council through the Equipment Fund’s history and a comparative analysis of the current equipment‑replacement model versus the Enterprise open‑end lease proposal. Fox said the equipment fund has been used for light‑ and heavy‑duty vehicles, IT equipment and upfits, and reported that the fund’s cash balance grew from $1,184,000 in 2018 to about $3,611,000 at the end of 2025.

Fox and staff presented a three‑year scenario in which the vendor model phases in more vehicle replacements in year one (51 vehicles in the first year under the proposed model versus roughly 12–13 per year under the current approach) and showed the initial year net could be about $192,000 into the general or equipment fund because of resale and leveraged capital. Fox noted the city recently raised its internal charge to departments to 3.5% and said the enterprise model’s per‑vehicle monthly rate is roughly comparable to current costs when maintenance and fuel savings are included. He told the council staff would bring more detailed analysis and meet individually with members who requested deeper modeling.