To lease or not to lease city vehicles

07.30.2008 by AndrĂ© Natta · → 6 Comments

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Larry’s currently suggesting that the city of Birmingham lease vehicles to replace the current city fleet of 2,200, presumably saving the city money over the life of the 3 year lease agreements. He’s recommending that the city tap into its reserve fund (to the tune of about $2.9 million) to cover a portion of the costs associated.

If he hopes to be successful with this proposal, he needs for it to be approved soon, especially considering that signals are coming from the Big 3 U.S. auto makers that the lease ride may be ending (if not at least harder to pull off) directly through them from now on. Plus, there are some concerns from city councilors about tapping into the reserve fund for vehicles (which has probably increased after hearing that the $4 million shortfall that the BJCTA said existed was now actually closer to $7.4 million).

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