Backhoes replaced in both Kent and HHS

Communities find different ways to fund major purchase

A comment made by Harrison Coun. John Buckley in regards to a backhoe leasing agreement was taken out of context in story published in last week’s Observer.

While Buckley confirmed he did vote against the lease agreement for a 2014 Caterpillar 420F IT backhoe loader, it was not with the hopes that the Village would fix the outdated one.

“It’s that leasing is the most expensive option,” he clarified. The new machine will cost the Village $143,600 plus tax.

“I’d suggest save the money and buy one next year,” he said. “You limp along with what you have. Leasing is not an avenue that you would want to take.”

In a timely coincidence, the District of Kent approved the purchase of a a brand new 2014 Catepillar 420F IT Backhoe Loader. With their trade-in allowance for the 2003 machine, their total will be $109,946 plus tax.

The district is not leasing, but purchasing the machine outright with a five year payment plan through the Municipal Financing Authority. Council voted unanimously for the purchase, but Coun. Duane Post did question why they didn’t choose a lease.

“We have looked at leasing in the past and usually from a financial perspective it does present a challenge, the costs are higher for leasing,” Mick Thiessen answered. “The buyout costs are quite high.”

Like the Village’s backhoe, Kent’s machine would have to be fixed at a cost of about $80,000 to be put into service again.

“Perhaps in the future if we have a machine that’s incurring those kind of costs we could deal with it sooner rather than later,” Coun. Holger Schwichtenberg suggested.

Both communities use their machines on a daily basis.

news@ahobserver.com

 

 

 

 

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