Local financing approved for county road equipment purchase

A local bank will provide financing for a paver approved for purchase by Antelope County Commissioners on May 9.

During the July 3 commissioners’ meeting, in Neligh, lawmakers approved financing for a paving machine, through the Bank of Elgin, following a review of submitted proposals. Commissioner Keith Heithoff made a motion to approve either a 4.7% fixed-interest semi-annual payment or an annual five-year loan, with a payment of $90,000 per year, and a final balloon payment. Commissioner Eli Jacob seconded the motion, which passed, 4-0. Commissioner Regina Krebs was not in attendance.

Pinnacle Bank, of Neligh, also submitted financing options, with a bid of 5.73% to finance the $500,080 paving machine.

Earlier discussion

Financing was originally discussed during the June 13 meeting, with commissioners approving financing for the paver through John Deere. Terms of that option including a five-year payout and a balloon payment, with an interest rate of 5.79%.

Payment for the milling machine totaled $551,649, with a warranty costing an additional $10,001. The warranty for the paving machine tallied $17,313. All commissioners gave their approval at that time.

Road superintendent Aaron Boggs told commissioners that area residents questioned why local financial institutions weren’t given an opportunity to bid.

According to Boggs, the decision “was largely based on a refinancing payment plan offered through John Deere.”

Discussion ensued and eventually led to contacting county treasurer Deb Branstiter, who was attending meetings and out of the courthouse. Via telephone, Branstiter indicated she was unable to provide a prediction of finances since she wasn’t in the office, but suggested it may be possible to pay for one piece of equipment and finance the other.

Payment was to be presented to commissioners at a June 27 meeting.

During Boggs’ presentation on June 13, commissioners determined county clerk Lisa Payne should contact local financial institutions.

Boggs said, “Lisa needs to make it clear that they (bank) need to pay out the next business day,” since John Deere needed payment.

Payne confirmed she had contacted banks regarding a potential loan during the June 27 commissioners’ meeting and bids would be reviewed July 3.

Originally, the two pieces of equipment were approved on May 9 meeting after Boggs told commissioners road graders in the county fleet could now “focus on gravel roads” if the two pieces of equipment were purchased.

Boggs said, “If we don’t (purchase today), we’re probably looking at next year before we get another one. They’re on hold for today.”

Payne asked if bids for the equipment should have been advertised. Boggs said he reached out to other companies and researched the products.

Commisioners’ chairman Charlie Henery said, “I feel it’s time. We should’ve done it 20 years ago. It’s our best option.”