The newly elected mayor of Angusville recently received a copy of the city's annual report. After reviewing the many pages of this report, she feels that the city would be in a better financial position if it privatized its motor pool operations. In this situation, privatization means hiring a private firm to operate the motor pool,

which includes a city garage and city-owned vehicles. The main concern of the mayor is that the Motor Pool Fund realized a loss last year of $54,500, resulting in the need for a city subsidy. How would you advise the mayor of Angusville?