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The 2015-16 New York State Office of General Service Road Salt Contract will jump from $62.73 per ton to $89.96 per ton, a 43.4 percent increase.
Highway superintendents allocate their road salt needs in April.
They must take 70 percent. The towns are allowed 120 percent with no price adjustment per year. If the town exceeds that they are then allowed 150 percent at a price adjustment of $9.40 per ton, bringing it to $72.13 per ton (2014).
Beekman's Highway Department took advantage of a savings before the price increase.
Road salt purchased last winter cost 2,497.57 tons, 100 percent of our allocated amount, plus an additional 24.87 percent at $62.73. The total road salt cost was $156,672.57.
Our budget for snow removal was $175,000 for the year.
The Town's Highway Department went out 78 times last winter. Our trucks hold 10 tons worth of material, 70 percent road sand 30 percent road salt.
At the current contract number 7 tons road sand equates to $101.50 at $14.50 per ton, plus 3 tons of road salt, equating to $188.19 at $62.73 per ton.
So every time a truck leaves our yard it’s currently costing us $289.69 per load, based on a (3) load storm per truck, with 9 trucks leaving the yard to fight the storm it costs us $7821.63 at the current prices.
At the new price increase it will cost us $371.38 per load “An Increase of 28.19 percent per load” bringing us to a total of $10,027.26 for a basic (3) loads per truck per storm using 9 trucks.
The Beekman Highway Department still had the option until Sept. 30 to purchase the remaining 500 tons available at $72.13 per ton, $17.83 cheaper than after the Sept. 30 increase. That's a $9000 savings.
This season we will purchase the minimum 70 percent of the 2000 ton allocation at the new price of $89.96, costing $125,944. We took the additional 25 percent 500 tons at $72.13 before the increase, at a cost of $36,065.
This winter season road salt will cost us $162,009 compared to $179,920. We saved $17,911.
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