The Real Cost of Municipal Equipment

Athens recently purchased a backhoe. It may prove to be a very good investment. Public Works has many legitimate uses for this kind of equipment, from drainage and culvert work to road maintenance and emergency repairs.

But a major equipment purchase also provides a useful example of what good long-term municipal planning should look like.

Before buying equipment, Council should be able to answer some straightforward questions. What does the Township currently spend renting equipment or hiring contractors to do this work? How often will the machine be used? What will it cost to operate and maintain? How long should it last? And how much should we set aside each year so that its eventual replacement doesn’t become an unexpected burden on taxpayers?

The purchase price is only the beginning of the cost of owning municipal equipment.

In reviewing the Council minutes and other documents publicly available on the Township website, I have not been able to find the business case or supporting analysis for the backhoe purchase. There may also have been information available to Council that is not presently accessible through the public website. But for a significant capital purchase, I believe residents should be able to see the basic reasoning behind the decision: the need, the alternatives considered, the expected costs and savings, and how the purchase fits into the Township’s long-term asset plan.

These questions don’t mean that Athens shouldn’t have purchased a backhoe. They mean that significant purchases should be supported by a clear business case that residents can understand—and incorporated into the Township’s long-term asset and financial planning.

That’s what I mean by keeping Athens’ thrift, but adding foresight.

Good stewardship isn’t simply spending less today. It’s making sure today’s decisions still make sense ten or twenty years from now.