The City of Pinehurst held its first budget workshop during the third week of June to determine the needs for next fiscal year. It was determined the city may need to spend close to $90,000 in capital outlay to purchase four new vehicles for the police and the street departments.
City Administrator Robbie Hood has met with Enterprise Fleet Management to discuss Pinehurst leasing vehicles from them instead of purchasing new ones. Under the possible agreement with Enterprise Fleet Management the city could get all four vehicles at a cost of $28,000 a year which would also include maintenance for those vehicles. “I’m very happy going forward, I think the council will take my recommendation going forward with this project, because what it’s going to do is turn over our fleet every four years,” Hood explained.
Most of the vehicles for the City of Pinehurst are fairly old at this time. As a result, maintenance on them is rather expensive. The lease agreement would help keep the cost of maintenance down. The agreement also allows the city to purchase a vehicle when the leasing term on it expires.
Another positive aspect of leasing from Enterprise that Hood identified is the sale of the city’s current vehicles. Hood added, “Enterprise Fleet Management will take those vehicles and sell those vehicles for us at a premium cost, and then they’ll take that money and roll it back into our investment which will lower the $28,000 annual payment.” The funds can thus be used by Pinehurst to make a new fleet purchase or lease.
Hood explains because it is a lease agreement the city would not be obligated to pay the full $28,000 up front. Instead it would be made in monthly payments.
The next meeting of the City Council in Pinehurst will be in second week of July when the lease agreement will be presented by Hood. The budget for next fiscal year will be considered for approval in October.
-Dan Perrine, KOGT-
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