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Council approves $344,910 snowplow lease purchase; budget amendment adopted after public comment
Summary
Council approved a lease‑purchase with Zions Bancorp for a $344,910 snowplow (5‑year lease, annual payment $78,568, total $392,838) and amended the FY25–26 fleet budget to roll forward project funds; a resident commented on lengthy contract paperwork at the public hearing.
Heidi presented a lease‑purchase package for a snowplow that was originally budgeted in FY2024 but delayed in delivery. The council approved a resolution authorizing a lease purchase agreement with Zions Bancorp at a proposed rate of 4.5 percent for a total purchase price of $344,910, a five‑year term, annual payments of $78,568, and a total principal and interest of $392,838; the current equipment has an estimated trade‑in/resale value of $15,000.
"We priced it out...the highest interest rate was 5.29 percent. We're proposing to go with Zions Bank Corporation at 4.5 percent," Heidi said while presenting the financing terms. After a motion and second, council members voted in favor and the resolution passed.
The council then opened a public hearing on a related resolution to amend the FY2025–26 fleet budget to roll forward the project and recognize the lease proceeds. Heidi told the council that because the first lease payment will not be due until FY2027 the fleet fund balance increases by about $65,000 this fiscal year. Resident Dean Lallis spoke during public comment to note the length of contract documents and rising equipment costs, but also acknowledged the necessity of the purchase for winter operations.
The council approved the budget amendment by motion and voice vote. Staff will finalize lease documents and incorporate the amended budget entries into the fleet fund.
