WESTLOCK – Westlock County will borrow just over $1.4 million that, combined with $911,200 it’ll receive via trade-ins, will cover the cost of five new graders valued at $2,375,000.
At their April 26 meeting, county councillors voted 7-0 to pass second and third readings of Bylaw 34-2022 which will see the municipality take a five-year debenture for $1,463,800 with interest set at 3.61 per cent — loan payments will be $161,301.61 twice annually starting this December adding up to a total cost of $1,613,016.10.
In a request for decision to council, finance director Peggy Hardinge said it’s common county practice to fund grader purchases via a debenture and the graders are included as part of the municipality’s 2022 capital budget. The application for the loan had to be submitted to Alberta Capital Finance Authority by April 29 and the funds should be in the county’s bank account by June.
Interim CAO Pat Vincent told council they were able to get a better deal on the grader trade-ins compared to what had originally been estimated ($911,2000 versus $825,00) and lauded public works director James Plain for his “astuteness.” In a follow-up e-mail Vincent noted the additional $86,200 in trade-in value on the deal means the municipality will carry less debt.
“I would like to commend staff for their prudence to ensure Westlock County utilize taxpayers hard-earned dollars are used as effectively as possible. Reducing costs in excess of $100,000 (factoring in interest) is significant and demonstrates the commitment of county staff to council’s vision to operating Westlock County in the most effective and efficient manner possible,” he said.
Coun. Isaac Skuban, who also gave props to Plain, said council talked about the buy-back program during budget consultations and voted 4-3 to continue it. Coun. Jared Stitsen noted “extensive research” done by the former public works head that confirms it’s a good deal for the municipality.
“We did talk about it and the will of council was to continue with the buy-back program upon advice from administration. Just so the public knows we did have that discussion,” said Skuban.
Added Stitsen: “He went through to Ritchie Bros. and other places to see what the (trade-in) prices were. He confirmed it was a really good program that we’re on. We’re getting good bang for the buck on the hours as some were actually over hours and they were allowing for it. It’s proved to be very beneficial.”
