Town council has voted in favour of leasing Niagara-on-the-Lake’s light-duty vehicles through Enterprise’s corporate fleet management program, a decision expected to save the town an estimated $539,043 over the next ten years.
In the recommendation to council, staff said the agreement, receiving seven votes in favour and one against at a March 25 council meeting, will make the town’s reserve of fleet vehicles more sustainable.
The town’s fleet currently includes 48 vehicles, 37 of which are light or medium-duty, such as vans and trucks. Many of these vehicles are aging due to a two-year pause in replacements caused by a delay for a fleet review and funding issues, the recommendation said.
Under the new plan, vehicles will be replaced more frequently, every 48 months, rather than the current practice of keeping them for up to 10 years.
The aim is to maximize the fleet’s value and reduce fuel and maintenance costs associated with older vehicles by $32,000 annually.
By outsourcing fleet management, the town will also eliminate the need for a dedicated fleet coordinator, saving an additional $132,000 each year.
The town plans to repurpose funds from other infrastructure or capital projects to cover the lease program’s costs for the first two years.
In 2026, staff estimate the budget will require $170,000 — $100,000 for heavy-duty vehicle replacements and $70,000 for future lease payments, which will increase by $10,000 annually until 2035.
Without this investment, the town may be forced to reduce the fleet and cut services, said the recommendation from staff.
Darren MacKenzie, the town’s manager of public works, said the program will allow town mechanics to focus on heavy-duty and specialized equipment, where the majority of their time is already spent, while Enterprise handles light-duty vehicles.
Kyle Freeborn, the town’s treasurer and director of corporate services, called it “the most fiscally responsible choice at this time.”
However, Coun. Sandra O’Connor opposed the move and suggested a deferral, which was defeated. She’s concerned about risk management and argues the timing isn’t right in light of tariffs.
“I’d love to reconsider it in the future once we have more stability in our tariff situation, but not now,” she said.
O’Connor added, while Enterprise has Canadian branches, it is American-owned, which contrasts with previous town discussions about supporting Canadian-made products.
MacKenzie clarified Enterprise Fleet Management Canada Inc. is a Canadian corporation, which pays taxes in Canada.
But O’Connor wanted to know about profits, which she said go to the U.S.
Lord Mayor Gary Zalepa clarified that, like any corporation, shareholders of a company receive a dividend on their shares.
Which means Enterprise Holdings, the U.S.-based company, would generate revenue from its operations in Canada through Enterprise Fleet Management Canada Inc.
