No. I have to drive my own car to work and so should they. No exceptions.
Obviously, some employees need specially equipped vehicles to respond to off-hours emergencies. But that doesn't mean department heads need town cars to drive from meeting to meeting.
C'mon, town employees work hard and this is one of the few perks left with the job. They've already given up a lot (healthcare options, for example) to help the town out financially.
Who cares? Getting rid of the cars isn't exactly going to solve the town's deficit, is it?