Julie Leonard, Assistant Public Works Director

Albert J. Carbon III, P.E., Public Works Director

Issue Statement:  The City annually appropriates funding for gasoline and diesel fuel for the City's fleet.  This fiscal year, there has been a dramatic increase in fuel and diesel costs that has exhausted the Fleet Management Division's fuel budget. Due to the rise in these costs, additional funding is needed for the remainder of the fiscal year.  

Recommended Action:  Staff recommends the City Commission adopt a resolution approving a budget amendment of $130,000 to fund increased fuel and diesel costs for the remainder of FY 2022.

The adopted FY 2022 budgeted $397,000 for fuel and diesel.  In February 2022, a budget amendment was approved to increase the budget to $450,000.  In June, the national average price of gasoline reached $5/gallon, a roughly 50% cost increase over the course of a year.  

Due to unpredictable fuel costs, additional funded should be made available for the remainder of the fiscal year.  As a point of reference, the total cost of gasoline  and diesel fuel in FY 2021 was $401,000.  In FY 2020 the total cost was $328,000.

It is estimated that an additional $130,000 for the remainder of FY 2022. This estimated increase is based on an average of past years’ usage and the cost per gallon moderately increasing through September (See Exhibit A).

The City purchases gasoline and diesel through a contract with the Sheriff's Office, which operates the City's fuel station.

It is estimated that Fleet Management Division's operating budget will need an additional $130,000 for the remainder of FY 2022. This estimated increase is based on an average of past years’ usage and the cost per gallon moderately increasing through September 2022.  Attached is the proposed budget amendment providing additional funds for fuel cost which utilizes vacancy credits from the BSO contract and use of additional Half-cent Sales Tax. Additional adjustment may be needed as part of the end-of-year budget amendment in November.

The proposed expenditure is as follows: