Nursing budgets over case of high fuel cost
Local governments look at alternative strategies.
Cities and counties budgeted for higher fuel prices. Little did they know the average increase would be 42 percent for gasoline and 57 percent for diesel fuel this year over last. To help them coast by, department managers are making moderate cuts to their operations.
Los Angeles' and Los Angeles County's budgets have been hit hard by rising fuel prices. For the fiscal year, the county's Metropolitan Transit Authority (Metro), which has the largest compressed natural gas fleet in the country, had to ask for an $8 million amendment to its $33 million fuel budget, according to spokesperson Dave Sotero. Meanwhile, the Los Angeles Police Department has spent $2.2 million more this fiscal year, says Assistant Officer Sergeant Katherine Plows.
To counter such budget-busters, some departments are scrutinizing operations. “We had a pretty aggressive utilization program in place already,” says Bob Stanton, Polk County, Fla., fleet manager. “But some managers have taken a pro-active look at what else they can be doing.”
To supplement the efforts already in place, such as reducing mileage whenever possible, Polk County departments recently have taken 20 vehicles — about 1 percent of the overall fleet — off the road. Stanton says that while that does not necessarily reduce fuel usage, it saves money on maintenance. The county also is testing five Ford Escape electric-gas hybrid vehicles for low- and high-mile use.
Lamont Nelson, fleet director for Salt Lake City, which uses about 700,000 gallons of gasoline and 420,000 gallons of diesel for its 2,330-vehicle fleet annually, says the city started downsizing its fleet a few years ago by phasing out its sports utility and four-wheel-drive vehicles. It is looking into hybrids as well as alternative fuel measures.
As with other cities, in Weathersfield, Ohio, the police department is the largest gasoline consumer. During the week, the department typically has three cars on duty but has reduced the number to two, with two officers in one car to handle priority calls. “For summer, we may have to go back to three cars in order to maintain response time,” says David Pugh, the township administrator. “We are playing it by ear.” Officers also are now required to park and do stationary patrol for 15 minutes each hour. The police chief expects the measures to save $8,000 this year.
As fuel price increases trickle down, they also affect goods and services that local governments need. The cost of road projects, for instance, is climbing, Pugh says. In addition to transporting materials and operating machinery, the price of asphalt, which is made with oil, has risen. Pugh says that Weathersfield is trying to complete the bidding process on its eight proposed road projects for the year to determine if one will have to be axed.
Some counties are addressing the root of the problem and reconsidering how they purchase fuel. Polk County, for example, currently buys its supply using a daily pricing method. But Stanton is considering buying 40 percent to 60 percent of the county's fuel supply on the futures market. “The forward-price purchasing would elevate our position on the fuel food chain and give us some price protection,” he says.
Some departments, such as public transportation, are feeling the fuel pinch more than others. For now, they are working simultaneously to maintain service and costs and hoping the cyclical nature of fuel price dip before any truly drastic changes have to be made. “At this point, it's a wait-and-see game,” Nelson says.
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