Surry County officials decided this week that it would move to get out of its lease agreement for a number of county vehicles, but that they would take their time doing it. The Board of Commissioners unanimously voted to pay off the vehicles utilizing the original lease agreement, stretching those payments over five years.
The board had decided last fall that it was in the county’s best financial interest to end its agreement to lease fleet vehicles from Enterprise Rentals. In February, the commissioners had a discussion about buying out expiring leases and asked for more information on what the future may look like for the 86 cars that are still under a leasing agreement.
County Manager Chris Knopf presented the board with three options at their last meeting. The county can buy all the cars outright, split the purchase between two budget years, or allow the leases to stand and run for their scheduled time. The board opted to leave all remaining leases in place.
“As you know the county is moving away from Enterprise Rental vehicles for fleet management for the county and in this ongoing budget process, department heads are considering recommendation for vehicle purchases versus leasing,” Knopf said to set the stage.
“We do have a number of vehicles that are still in lease contracts with Enterprise and the board had requested information about what it would cost to look at buyouts versus letting those leases run their course and the county taking ownership.”
Under the first option the county would buyout of all leased vehicles at one time. Pulling the trigger and buying all the leased vehicles before the end of the fiscal year on June 30 would cost $2,012,458. The county could choose to buy half this fiscal year and half the next for $1,974,593 in option two.
Option three is to allow keep leases intact and pay them off on schedule, which Knopf said was the cheapest option at $1,971,797.
Knopf said he felt the long term payoff made more sense than a buyout. “If we buy them out, we’ll be expending it all, if we do it all at once, in June. If we break it up it will be some in June and then more in July or August, so we’ll be spending that money — it will be going out the door.”
Commissioner Larry Johnson asked if the cheapest avenue was indeed the best avenue.
“We think so,” Knopf confirmed. Under that payoff model that the expenditures would be spaced out over several years, “so the money we are not spending will be sitting in savings and accruing interest.”
Vice Chair Mark Marion agreed saying it was more feasible for the county to take the long term option that pays the leases off over six years.
Under that long term plan the county would pay out $692,186 in year one, $537,521 in year two, the cost drops to $397,137 in the third year, $227,977 in year four, to only $88,689 in the fifth year and $6,873 clears the last leases out.
Chairman Van Tucker said he recognized that a timely decision on the matter was needed as the clock is ticking on the fiscal year and budget presentation for fiscal year 2024-2025 are ongoing. “I understand time is of the essence and we need to know this in order to factor it into budget decisions,” he said.
He told his colleagues he was in support of option three and made a motion for the board to accept option three. Commissioner Bill Goins offered the second and the measure passed unanimously.
In other board news,
- The public was invited to attend the next regular meeting of the Surry County Board of Commissioner on May 6 at 6 p.m. at the Mount Airy Museum of Regional History. Knopf advised there would be no public hearings at that meeting, but the public is still welcome to participate in the Open Forum at the top of the meeting.
- Knopf reminded the commissioners that there will be a ceremony for National Day of Prayer at 12 p.m. on May 2 on the grounds of the Historic Courthouse in Dobson.
- Finally, the Second Annual Surry County Food Truck Rodeo is coming up at the Farmer’s Market on Saturday, May 4. The event will start at 11 a.m. and run to 7 p.m.; admission is free.
Organizers say musical entertainment will feature the soulful sounds of The Legacy Motown Revue beginning at 12:30 p.m. until 2:30 p.m. They will be followed by country/rock band Runaway Train who take the stage from 5 p.m. until 7 p.m. This will be a rain or shine event and tables and chairs will be provided to eat under the shelter, but folks are asked to please bring their own chairs for the concerts.
Food trucks will include The Spotted Cow, The Chill Mobile, Tacos Costa Grande, Shikora Express on Wheels, Rub & Grub, MR People Feeder, Mermaids on the Go, Kinder’s Kitchen, and BJ’s Fry Shack. While folks can take food to go, the goal is to have people lingering at the Farmer’s Market to enjoy the afternoon with friends and neighbors.
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