Beaver Creek’s $123,000 pay loader has arrived, and it’s been put to work on city business.
After their meeting Wednesday, June 15, Beaver Creek City Council members and city maintenance supervisor Travis Helgeson agreed to a brief show and tell in the city shop.
The machinery, a 2021 Cat 910 with a snowplow attachment, showed up earlier this month after the council voted in December to make the purchase.
Helgeson had encouraged the city to sell its 2005 loader tractor and 1979 grader in exchange for newer, more versatile equipment that will do both jobs.
The city’s previous equipment didn’t move heavy snow efficiently, and Helgeson said the old grader was cumbersome and was used only three to five times per year.
In the bid process, Caterpillar offered the best price for what would best serve the city’s needs. The company offered $7,850 on trade for the city’s grader (bought for $10,000 nearly 10 years ago) and $18,695 on trade for the city’s tractor.
That brought final cost to $104,345. After a $20,000 down payment, the remaining $84,345 is being financed through Security Savings Bank on a five-year loan at 2.75 percent interest.
Payments will be roughly $1,500 per month, or $18,000 per year. The first payments weren’t made until after the equipment was delivered.
The council discussed in December that the city has $58,000 in its equipment fund, so the $20,000 down payment could be paid from that fund.
Council member Pat Bender made the motion to approve the pay loader purchase. “I just feel we’re getting such a good trade on these, based on the current economy, and there’s a need for it.”
Cody Dietrich, who supported the motion, said it’s true that new equipment will continue to increase in price, but today’s used prices will not hold forever.
“In a year, the used could be worth nothing and the new isn’t going to come down, so you have to look at it that way,” he said. “To get $8,000 for that grader — that’s not going to happen again.”
Bender said the purchase would be a prudent use of city funds. “Our budget is $15,000 for street equipment,” she said, noting that annual payments are $18,000 and the difference could be funded through reserves.
She pointed out that there will be no equipment expenses for the next three years due to the warranty on the new pay loader, and in five years the loan will be paid.