Leasing a new fire engine, instead of purchasing, may allow the Wilton Fire Department to catch up on its vehicle replacement schedule, according to Fire Chief Jim Cutler.
After being asked to examine leasing options for fire vehicles by the Budget Committee, Cutler reported on Thursday that it appeared to be a good option for the town for the upcoming replacement of their oldest fire engine, currently due for replacement this year. And a leasing option may allow the department to move forward with the replacement of its ladder truck, currently slated for replacement in 2020.
Cutler told the board that after researching leasing to purchase as an option, it would likely decrease the capital expenditures for the next several years.
The Fire Department has requested a $150,000 increase to the capital reserve for fire department vehicles this year. If that is approved, said Cutler, the fund will be up to $475,000. The department could use $100,000 of that on a down payment for a lease-to-purchase on a new fire engine, and use the remainder to purchase the ladder truck that would otherwise be three years down the line, but is already “on its last legs,” said Cutler.
A five year term on a fire engine with a $100,000 down payment would mean committing a $74,000 payment for the next five years, but the town’s capital improvement plan calls for more than that in putting away for a ladder truck. So, while the department’s operating budget will go up to accomodate the payment, the capital requests will go down to componsate.
“Leasing makes sense in the short term, especially while we get caught up on our equipment replacement,” said Cutler. “It does seem to make sense when you look at the numbers.”
The town would own the truck at the end of the lease, and could exit the lease at any time. The town would be paying about $24,000 above the purchase price in interest, however, Cutler told the board.
The board told Cutler they would consider this option as they moved forward with their budget review.
“If we find this to be a winning strategy, we buy a lot of vehicles as a town,” said Budget Committee member Harry Dailey.