Why many city and county fleets still lack the tools to truly manage total cost of ownership

Source: https://www.americancityandcounty.com/, Ian Gardner, First Published May 12th, 2025

Across the country, municipal fleet operators are under increasing pressure to do more with less — yet many are still operating without the advanced tools needed to effectively manage total cost of ownership (TCO). Outdated systems, siloed data, budget constraints, unique depreciation and tax considerations and a lack of real-time visibility often force city and county fleet managers into a reactive mode, making it difficult to plan proactively or allocate resources efficiently.

Without access to modern platforms that leverage artificial intelligence (AI), predictive analytics and machine learning, municipalities face roadblocks in forecasting maintenance needs, managing vehicle life cycles and optimizing asset usage. This is especially critical as local governments push toward sustainability goals, including greater adoption of electric vehicles (EVs), which bring their own set of sustainability, cost and performance variables.

To truly take control of TCO, public sector fleet leaders need smarter, more agile solutions — tools that can provide full visibility into operating costs, reduce unnecessary downtime, and support data-driven budgeting, compliance and procurement strategies. As infrastructure demands grow and accountability increases, embracing next-generation fleet management technology is no longer optional — it’s essential.

For cities and counties, effective vehicle fleet management isn’t just a logistical concern — it’s a cornerstone of delivering public services. From sanitation and public works to emergency response and transit, local governments depend on reliable vehicles to meet resident needs and maintain daily operations and support a healthy environment.

Yet many municipalities, hampered by resource constraints or technology expertise, are still relying on outdated fleet practices that lack the real-time data and operational intelligence required to stay ahead of costly disruptions. Without live, actionable insights supported by advanced AI and machine learning analysis fleet teams often operate in a reactive mode — responding to breakdowns, unplanned maintenance and route delays after they occur rather than preventing them.

This reactive approach leads to increased vehicle downtime, rising operational costs and diminished service delivery. The inability to predict and proactively address issues undermines not only the performance of the fleet itself but also the community-facing services those fleets support. As local governments strive to modernize and stretch limited budgets, smarter, more predictive fleet management systems are essential to achieving greater transparency, efficiency and control over long-term costs.

The need for greater municipal fleet data decisioning

Many municipal fleets are still operating with legacy systems that weren’t built for today’s data-centric environment. As cities and counties face rising pressure to stretch limited budgets and meet higher service expectations, the lack of intelligent, AI-powered tools is holding fleet teams back from making the most informed and cost-effective decisions.

Without access to predictive analytics, real-time telematics and machine learning algorithms, local governments are missing out on opportunities to anticipate vehicle maintenance needs, proactively manage fuel and charging strategies, and optimize fleet deployment. The result? Unplanned breakdowns, inefficient resource allocation, unnecessary noise and air pollution and increased strain on public budgets.

One of the most pressing challenges is the inability to accurately forecast TCO — a critical metric that goes beyond sticker price to include long-term costs like maintenance, fuel, insurance, depreciation and downtime. Without predictive modeling capabilities, municipal fleet managers are forced to rely on incomplete data or outdated estimates, which can lead to budget overruns and reduced operational efficiency.

Smarter, AI-enabled fleet management systems that can ingest data from a wide range of physical and digital systems empower municipalities to identify cost trends, make real-time adjustments and plan strategically for future investments. For city and county leaders looking to modernize fleet operations, improve transparency, and deliver better outcomes to residents, advanced data decisioning isn’t a luxury — it’s a necessity.

TCO visibility in municipal fleet EV adoption

As municipalities across the U.S. move toward cleaner, more sustainable transportation, EV adoption is gaining traction in city and county fleets. However, while the benefits of EVs—such as reduced fuel and maintenance costs — are well known, many local governments are finding the transition more complex than expected, particularly when it comes to managing the full financial picture.

Unlike traditional vehicles, EVs introduce new cost variables that demand real-time visibility and strategic oversight. Without modern tools that incorporate predictive cost modeling, telematics, and infrastructure analytics, municipal fleet managers risk making decisions that hinder rather than help long-term savings and operational performance. Issues like underutilized charging stations, unexpected downtime or inefficient deployment can quickly erode the perceived advantages of EVs.

A recent Cox Automotive report points to a sharp increase in EV adoption among fleet operators — but also notes a distinct learning curve for organizations new to electrification. Municipalities that lack in-house EV experience are especially vulnerable to missteps without the support of intelligent, data-driven systems designed to monitor TCO in real time.

To meet sustainability mandates and budget constraints, local governments need fleet management solutions purpose-built for the EV era. This includes AI-powered platforms that offer predictive maintenance alerts, optimize vehicle routing based on charging needs, and deliver clear, real-time TCO insights across mixed-fuel fleets. It also means partnering with providers who can help with EV infrastructure planning, charging strategy development and compliance tracking.

Proactive fleet management is no longer optional — it’s essential for delivering reliable, uninterrupted municipal services. By embracing AI, advanced analytics and a deeper understanding of EV fleet dynamics, cities and counties can navigate the challenges of electrification while ensuring financial accountability and operational excellence.