Emily Plihal
Local Journalism
Initiative Reporter
Three Town of Peace River’s leased light trucks reached expiration of leasing term, and council was faced with the option to buy out the vehicles at its regular meeting Oct. 15.
Council had the option to buy out the vehicles, continue to lease, or exchange for newer models.
“Council supported the purchasing of the three lease buyouts for a cost of about $62,424.22,” says Mayor Elaine Manzer.
“This reduces the Town’s leasing costs and lowers the cost to the operating budget as well as the finance charges were higher than investment rates,” she adds.
The three 2022 Ford F-150 trucks in the fleet had buyouts of $19,552.59, $21,109.59 and $21,762.04. All three units were assessed to ensure they were in good working order and all three had mileage of only approximately 32,000 km.
“It reduces the financial burden on the budget and thus helps the community in that way,” Manzer notes.
“The purchase of new vehicles has been dependent upon the age and repair history of the vehicle prior to the leasing arrangement for some vehicles. The Town hopes to establish a regular policy to turn over vehicles as part of its asset management plan.”
Manzer explains that when purchasing the vehicles, council does not always choose leasing as their option.
“At the time, the lease option was chosen, it provided a way to update parts of the vehicle fleet and decrease the capital expenditure on vehicles,” she says.
The $62,424.22 will be taken from various grants received to purchase.