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Council authorizes staff to prepare purchase and lease-financing ordinances for CASE loader
Summary
Council voted to have legislation prepared to purchase a 2026 CASE loader with grapple from Southeastern Equipment Company and to authorize five-year lease financing with Huntington Bank (annual payment recorded as $54,600 beginning 2027); staff also requested a $6,500 supplemental appropriation for bond‑counsel fees. Staff said buying the loader would preserve existing equipment life, provide year-round flexibility and avoid tariffs.
A city staff member told the committee that the public works department has rented a CASE loader for several years to load road‑salt but that renting limited their use, accelerated wear on the backhoe and led to disputes with a rental company. Staff said the department identified a tariff‑free loader that could save about $15,000 and that owning a loader would allow 12‑month operation, reduce wear on a backhoe estimated to need replacement in the $250,000–$275,000 range, and provide the ability to respond to storms or other emergencies.
Staff described financing options and said they solicited multiple five‑year lease quotes. The finance director recommended contracting with Huntington Bank because its quote allows earlier payoff at a lower prepayment penalty (recorded as 1%), while US Bank’s proposal includes a longer waiting period and a higher prepayment penalty (recorded as 3%). Staff presented an annual lease payment recorded in the meeting as $54,600 beginning in 2027 and said the only 2026 cost would be $6,500 for bond‑counsel legal fees required to enter the debt engagement.
Council voted unanimously to have legislation prepared to purchase the CASE construction equipment with grapple from Southeastern Equipment Company, to have lease‑financing legislation prepared with Huntington Bank, and to prepare a supplemental appropriation ordinance to cover the $6,500 bond‑counsel cost. Staff said the lease structure would defer the first payment until 2027.
