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City approves purchase of new backhoe, to use reserves and Fund 44 transfers for payments
Summary
Georgetown City Council approved buying a replacement backhoe for Streets & Alley, applying $21,000 from heavy equipment savings and directing the $4,000 monthly Fund 44 transfer to loan payments to reduce interest costs.
The Georgetown City Council approved purchase of a new backhoe for the Streets & Alley Department at its Dec. 15 meeting, using a mix of reserve funds and monthly transfers to finance the purchase.
Minutes state the current backhoe has about 6,000 hours of use and is the department’s most-used piece of equipment. Mayor Darin Readnour presented a vendor quote with two payment options. Treasurer Amy Cavanaugh told the council there is $42,000 set aside in the heavy equipment savings account and that Fund 44 receives a $4,000 monthly transfer.
Council agreed to apply $21,000 from the equipment savings as a down payment and to pause the $4,000 monthly transfer into Fund 44 so those funds can be used for monthly payments, which the minutes say would reduce finance charges under the monthly-payment option. The minutes also note the Street & Alley Department will eventually need a new sewer vac, currently more than 25 years old.
The motion to approve the backhoe purchase was made by Alder Robert Weaver and seconded by Alder Jack Morrison and passed unanimously, 5–0. The council did not specify the vendor by name in the minutes nor state final loan terms beyond the chosen funding approach.
