Select Board OKs up-to-$115,000/year lease for two trucks, with voter‑approval exit clause

The Townshend select board voted to authorize a five‑year lease for two municipal trucks, approving a not‑to‑exceed annual payment of $115,000 and adding a clause that the town may exit without penalty if voters later reject the appropriation. The motion passed on a voice vote announced as 5–0 in favor.

Truck‑committee members presented three bundled lease quotes for the two trucks (combined principal used in the discussion: $479,683, which included a $20,000 trade‑in on the 1‑ton). Committee member Katie said the committee had gathered proposals from Community Leasing, KS State Bank and 1st Capital, reporting approximate interest rates of 5.32%, 5.4%, and about 5.6%, respectively. “If we were to bundle the trucks into one lease instead of getting two separate leases, our rate can be slightly better,” Katie said when summarizing the options.

Board members debated contract terms, including whether leasing firms will allow a break clause tied to a town‑meeting vote. The final motion authorized staff to enter a lease not to exceed $115,000 annually, with a proviso that the town may exit the lease with no penalty if voters do not approve the appropriation, and established the first payment in the 3rd quarter (April 2027). The board and truck committee also discussed trade‑in assumptions and extended‑warranty coverage, which committee members said were factored into the quoted payments.

The select board directed staff and the truck committee to confirm final lease language (including an explicit voter‑exit clause and any documentation/legal fees), lock an exact interest rate by completing lender applications, and return to the board if a lease term cannot include the required clause. The board noted that the town’s equipment reserve would be used to support initial payments and that the arrangement was intended to avoid issuing a large one‑time purchase warrant at town meeting.