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City weighs five-year lease-purchase to replace street sweeper and several vehicles
Summary
Staff proposed a five-year lease-purchase for roughly $700,000 to replace a street sweeper, a public-works F-550 and three older police admin vehicles (targeted as hybrids); annual debt service is estimated at about $165,000 and staff will refine funding options.
Laura proposed a lease-purchase financing approach to replace several aging pieces of equipment and administrative vehicles, saying the proposal would spread the cost over five years for an estimated $700,000 package and roughly $165,000 in annual debt service. "We would look to recommend figuring out a way to authorize a 5 year lease purchase agreement for approximately $700,000," Laura said, noting the manufacturers trade-in offer and that the city would likely sell three admin vehicles at auction for modest proceeds.
Council members asked whether purchase or lease-purchase was preferable and sought information about maintenance, timing and whether any assets could be deferred. Staff noted prior successful use of lease-purchase for a street sweeper and said staff will return with refined maintenance records and cost projections for the council to review before any final commitment.
