County of Stettler council approved spending almost $1 million out of reserves for a new grader that showed up a year early. The resolution was passed at the Oct. 9 regular meeting of council.
Councillors heard a presentation by Chief Administrative Officer (CAO) Yvette Cassidy and Director of Operations Greggory Jackson regarding a new Caterpillar 14 grader that was delivered earlier than expected, with staff explaining the municipality wasn’t expecting to pay for this vehicle until 2025.
“In 2023, council approved the purchase of five graders,” stated the staff memo to council. “The final grader was scheduled to arrive in 2025. The grader was ready earlier than expected and has not been included in the 2024 budget.
“Operations utilized the Canoe Purchasing options through Rural Municipalities of Alberta (RMA) for the negotiations and purchase of a three year capital replacement plan. This includes the purchase of three additional graders in the years 2024 and 2025.
“The purchase was not included in the 2024 budget. Funds will come from reserves and adjustments will be made in budget 2025 to account for the purchase of the grader.”
According to the agenda the vehicle in question is a 2025 Cat 14 that includes a four-year warranty and was to be delivered by the second quarter of 2025. The price, before tax, was listed as $865,600 plus $27,670 for warranty.
Two Cat 140 all-wheel drive (AWD) graders were purchased in 2023 and two Cat 160-15 AWD graders were scheduled to be purchased by the County of Stettler in 2024.
During discussion Cassidy clarified that councillors already approved this grader for purchase, but nobody expected to see it until 2025 so no budget money was set aside for it. Hence, she recommended it be paid for early out of reserves by council resolution, adding that this would also satisfy audit requirements.
Jackson noted that all of the original numbers approved by council for this vehicle still add up and there were no changes; the vehicle simply showed up a year early. He noted it appears the vehicle should be ready to go for the upcoming winter.
Reeve Larry Clarke asked if the County of Stettler would secure financing for this grader. Cassidy responded that the county may finance the final cost in 2025 and that will be discussed in upcoming 2025 budget talks but that, for now, the vehicle would be paid for out of reserves if approved by councillors.
Councillors unanimously approved reserves funds for the purchase of a 2025 Caterpillar 14 grader for purchase price of $865,600 plus warranty of $27,760, for total purchase price of $893,270 plus tax.
Stu Salkeld
Local Journalism Initiative reporter
ECA Review