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I am hopeful this is not "Busgate": There are two used busses that have been identified as worthy to be purchased for 465,000. We are told that we spend 75,000 a year chartering busses. These used busses have a remaining life, we are told of 8 years +/-. The funds to buy the busses are part of a prior bond issue that can only be used for such purposes. So, a big plus is that the 75,000 a year that came out of our operating budget will no longer be spent. The operation and maintenance will be covered by charging a per mile fee to the department using the bus. We are assured that the busses will be used for a wide range of dpts on campus.
We can advertise on the exterior of the bus, a rolling billboard if you will. We will always have access to transportation when needed. Disasters have happened when chartered busses have broken down on the way to events. These are the pluses.
Negatives: If they tell you they have an 8 yr remaining life, it is probably less. We will have the costs of insurance, maintenance, fuel, warranty, etc. which you don't have when you charter.
Does it make sense to use the 465,000 from bond proceeds to pay down on new busses and keep spending the 75,000 a year to amortize the balance and then have new busses under warranty that will be paid for in seven years and still have 8 years +/- remaining?
I hope the folks that make those decisions have thought all of that thru, Dr. Meadors thinks it makes sense. The fact that there is money set aside already earmarked for that purpose is a big plus and the fact that no funds will be deducted from our operating budget is another plus. To then tell me the costs of operating will come from a fee charged to the using department is a little smoke and mirrors because 75,000 out of the EG budget is saved, but a similar amount will be charged to various departments to operate, insure, and warranty the busses.
The availability at all times, plus the "rolling" billboard, plus the control of having our own mechanics etc make it ok for me, but it is probably a wash at best. I don't think it saves a lot but it doesn't hurt us either. The bond funds have to be spent by May or they must be turned back to avoid arbitrage issues with the IRS.
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