Parks and Recreation Department to lease equipment due to insufficient funds

CHELAN – The City Council held its third budget workshop in preparation for the 2019 Budget on Oct. 11. Parks and Recreation, Street Fund and Equipment Repair/Replacement Funds were discussed.

First off, Public Works Director Jake Youngren addressed Water Capital Improvements. Eight projects were listed for improvements. Next year a few of those projects will be designed with construction/repairs to follow in 2020. One of the biggest projects includes the proposal of a building to protect some of the department assets, which are currently sitting outside the facilities year round.

Youngren also mentioned the need for new equipment pieces, the total cost for those is $275,000. Current dollars in the Equipment Replacement Fund are $181,000.

“We save up sufficient funds over the anticipated life span of an asset, a vehicle and when it comes to replace, we replace it … on an annual basis we contribute to that piece of equipment,” stated Youngren.

The four pieces of equipment that Youngren and his department want to replace include a loader, a 2003 Ford Truck, a crane for the shop truck and a tire repair kit.

In 2018 the money that was allocated to Parks and Recreation was $225,991. The 2019 proposed budget will be $155,266. The main reason to the changes is due to several increases and decreases in revenues and expenditures.

The revenues increased by 4.63 percent or $121,955 while expenditures have increased by $51,190.

Karen Sargeant, Parks and Recreation Director went over the needs and wants of the department. Sargeant presented a cost analysis of lease versus purchase of equipment that is needed. “We went with Toro and John Deere because those are the majority of our equipment … these are five items the new superintendent Erin would like to see us replace. The ones that we have are constantly breaking … these are things that help with maintenance of the Golf Course,” stated Sargeant. To maintain the parks a Toro Groundmaster 4000-D mower is also needed.

Parks and Recreation doesn’t have the money to purchase the equipment right away, that’s why they are looking into leasing them. “This lease option allows you stay under a certain budget,” after five years of leasing the equipment the department could purchase the equipment for a dollar or they could continue to lease it for a lower price.

The equipment needed includes a 2020A ProGator, HD 200 Sprayer, 1550 EC Top Dresser, HPX Gator, Tru Turf Roller, Toro Groundmaster 4000-D. To lease all the Golf Course equipment that is needed for the year it will cost around $20,000.

Lastly, Youngren addressed Street Funds. Most of the revenue for the Street Funds comes from property tax. Youngren went over specific budget items included in the Street Funds. For example road patch materials, chemicals for weed control, culvert materials, road sand and street lights repair and maintenance.

Mayor Mike Cooney ended the workshop by saying, “it was good discussion, I appreciate all the council members for putting in their time into it.”

The next budget special session was be held Oct. 16 from 5:30 p.m. to 7:30 p.m. at City Hall. The  Council discussed Water, Sewer and Sanitation Funds, Building and Planning Capital and M&O, and Financial Policies for the 2019 Budget.