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City Council buys chip spreader for $140,850 over 5 years
By Carol Broeder/Arizona Range News
The Willcox City Council last month approved the lease of a chip spreader with Caterpillar Financial Services.
The Leeboy/Roscoe Paver will cost the city $140,850.40 over five years, at the rate of $2,347.49 per month.
At its Aug. 20 meeting, the council approved the award of a bid for the lease/purchase of a chip spreader under a government lease at the rate of $2,408.36 per month for 60 months.
It was delivered to the city in November.
The purchase price was $124,850 and financing was secured with Caterpillar Financial Services at a 4.85 percent interest rate, said Ruth Graham, the city's finance director.
The lease payments have been reduced due to the interest rate, and will total $2,347.49 for 60 months, she said.
The interest on the contract totals $16,000.40 for a total payment of $140,850.40 over the life of the lease/purchase, Graham said.
Councilman Larry Schultz abstained from voting, since he is retired from Caterpillar and is still on its payroll.
The Leeboy/Roscoe Paver will cost the city $140,850.40 over five years, at the rate of $2,347.49 per month.
At its Aug. 20 meeting, the council approved the award of a bid for the lease/purchase of a chip spreader under a government lease at the rate of $2,408.36 per month for 60 months.
It was delivered to the city in November.
The purchase price was $124,850 and financing was secured with Caterpillar Financial Services at a 4.85 percent interest rate, said Ruth Graham, the city's finance director.
The lease payments have been reduced due to the interest rate, and will total $2,347.49 for 60 months, she said.
The interest on the contract totals $16,000.40 for a total payment of $140,850.40 over the life of the lease/purchase, Graham said.
Councilman Larry Schultz abstained from voting, since he is retired from Caterpillar and is still on its payroll.
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