In the face of staggering cuts to his proposed budget, town manager Richard Haberman is contemplating the use of a lease-to-own financing method to purchase or lease capital equipment the town needs, according to the New Britain Herald newspaper. The method will allow the town to obtain equipment, such as construction and police vehicles, with little money paid up-front, the article quoted Haberman. The equipment is leased for a term, typically three or six years, at the end of which the town is given the option to purchase it for one dollar or to lease a new vehicle, Haberman said. Funds for capital equipment have been cut or reduced since the budget process began earlier this month. At least three-quarters of the cuts, or about $1.5 million, have come from capital improvements, Haberman said. “It’s a tool; it’s not going to solve all our problems. Given the state of some of our equipment and our tight finances, lease-purchase may allow us to replace some equipment with minimal impact." The town’s most pressing needs include replacing vehicles in the building maintenance and public grounds departments, said Jim Symonds, fleet manager.

Originally posted on Fleet Financials