City agrees to loader purchase for landfill
The Sidney City Council has approved the purchase of a 2023 loader for the solid waste landfill. The council and administration had to choose between repair the current unit, or lease-to-own or purchase a new one.
By News Channel NebraskaSIDNEY -- Solid Waste Superintendent Dean Sterling met with the city council regarding repairs needed on a wheel loader.
In the memo to city council, Sterling and Finance Director Kegan Carwin said the 2024 budget includes $116,000 for purchase of a new roll-off truck, leaving a balance of $40,000 in the equipment reserve account. The Solid Waste department has a five-year-plan that includes purchase of a new wheel loader to replace the 1994 Cat 936. Sterling reported that the 2000 Cat 924 "has experienced a significant maintenance issue requiring urgent repair." The loader has a trade-in value of $20,000.
The council was presented with three options: * purchase a Case 621G from Titan Machinery for $178,000, * lease to own a Case 621G from titan Machinery through NCL Government Capital, or repair the Cat 924. According to the memo, it is unknown how long repair would extend the life of the Cat 924, but it would give the City some time; however, the concern is still spending $40,000 for equipment with a trade-in value of $20,000. Purchasing the 2023 model would cost $178,000 with an $85,000 discount.
Sterling said the lease is for four years. He told the council he doesn't believe the City should need to rotate loaders every four years.
"I don't think we need to trade them in every four to five years. I think 10 years would be better. That's why I think the purchase would be the better way to go, and save that extra money on interest," Sterling said.
The purchase will come out of the Landfill checking account. Carwin said there is sufficient funds for the one-time purchase.
"Right now, it would come out of the Landfill checking account, and there is sufficient funds to purchase at a one-time buy. In the past few years, Dean (Sterling) has done a great job creating a net profit for the landfill. So, this year's trend is also showing signs of that," Carwin said.
City Manager David Scott said Sterling did talk to several equipment sales offices. The prices listed are the best options, he said.