The Mt. Carmel City Council has approved the purchase and financing of a new tractor after the city's current machine suffered a major mechanical failure.
City Clerk Ryan Turner told council members the city's 2011 New Holland tractor, which has more than 8,000 hours of operation, experienced an engine failure that is not cost-effective to repair.
The tractor is used to mow the levee, large grassy areas near the ball fields, the practice field and other city properties.
Turner said replacing the engine would still leave the city with an aging tractor carrying only a one-year engine warranty. Instead, the city has been leasing a replacement tractor from New Holland in Albion while exploring purchase options.
The dealership agreed to forgive the repair bill on the damaged tractor and apply the lease payments toward the purchase of the replacement machine.
The council approved purchasing the new New Holland tractor for approximately $161,000, including the required dual wheels.
Council members also accepted financing through First National Bank of Allendale at a 4.65% interest rate over seven years. Turner said the longer repayment period was recommended because the department using the tractor does not generate significant revenue and the annual payment of about $27,500 will be easier to incorporate into future budgets.
Mayor Joe Judge noted the city paid about $112,000 for the original tractor in 2011, meaning the replacement cost has increased by roughly $49,000 over the past 14 years. The purchase and financing were both approved unanimously.