Explanation
Background: This ordinance authorizes a supplemental appropriation of $1,430,000 for the Fleet Management Division of the Public Service Department. The appropriation is needed as a result of higher than anticipated costs for fuel.
As of the 2005 Second Quarter Financial Review, the Fleet Management Division projected a fuel deficit of $1.4 million, at an average cost of $1.97 per gallon. Since the mid-year financial review, however, the division has witnessed dramatic increases in fuel prices. As of August 29, the average fuel cost was $2.30 per gallon (for all grades of fuel). As of September 1, 2005, fuel prices rose sharply to an average cost of $2.80 per gallon. The latest price increases are due directly to the damage caused to oil production, pipeline, supply facilities and refineries by hurricane Katrina. The Fleet Management Division projects fuel prices to remain high through September (close to the current $2.80/gallon) and then level off at approximately $2.50/gallon for the remainder of 2005. These fuel price increases will require the city to expend an additional $800,000 for fuel before year-end, escalating the combined fuel deficit to $2.23 million.
The 2005 budget appropriated $5.56 million for fuel purchases (3.54 million gallons at $1.57 per gallon). Total fuel expenditures for 2005 will be approximately $7.79 million. The city spent $5.2 million for fuel in 2004 and $4.7 million for fuel in 2003.
This ordinance will authorize a general fund transfer. This legislation will transfer $800,000 of the second quarter review's projected personnel surplus in Police and $200,000 of the projected personnel surplus in Fire to the fleet line item for Fleet's largest general fund customers: Police, Fire, and Refuse. The transfer of funds will allow these divisions to continue to purchase Fleet services despite the higher than anticipated costs for fuel.
This ordinance also authorizes a street construction, maintenance and repair fund transfer. This legislation will transfer $213,610 of the second quarter review's projected capital surplus in Transportation to the fleet line item in Transportation.
Emergency action: This ordinance is submitted as an emergency so as to allow the financial transaction to be posted in the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Fiscal impact: This legislation authorizes a transfer within the general fund of $1,000,000 and a transfer within the street, construction, maintenance and repair fund of $213,610. It also authorizes a supplemental appropriation of $1,430,000 within the fleet management service fund.
Title
To authorize a transfer of $1,000,000 within the general fund; to authorize a transfer of $213,610 within the street, construction, maintenance and repair fund; to authorize a supplemental appropriation of $1,430,000 within the fleet management services fund; and to declare an emergency. ($1,430,000.00)
Body
WHEREAS, the Department of Public Service, Division of Fleet Management, requires budget authority for fuel expenses; and
WHEREAS, a transfer of funds within the general fund is required in order to provide sufficient funds within the Police, Fire and Refuse divisions to pay for projected Fleet expenses; and
WHEREAS, a transfer of funds within the street, construction, maintenance and repair fund is required in order to provide sufficient funds within the Transportation division to pay for projected Fleet expenses; and
WHEREAS, an increase in encumbrances in the divisions of Police, Fire, Refuse, Transportation, Water and Sewers and Drains is necessary to pay the projected Fleet expenses; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Division of Fleet Management in that it is immediately necessary to appropriate funds thereby preserving the public health, peace, property, safety and welfare; now, therefore:
BE IT ORDANIED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized and directed to transfer funds within the general fund as follows:
FROM:
Dept/Div: 30-03 | Fund 10 | Object Level 3: 1000 | OCA: 300301 | Amount: $800,000
Dept/Div: 30-04 | Fund 10 | Object Level 3: 1000 | OCA: 301481 | Amount: $200,000
TO:
Dept/Div: 30-03 | Fund 10 | Object Level 3: 3380 | OCA: 301580 | Amount: $620,000
Dept/Div: 30-04 | Fund 10 | Object Level 3: 3380 | OCA: 301531 | Amount: $200,000
Dept/Div: 59-02 | Fund 10 | Object Level 3: 3380 | OCA: 591602 | Amount: $60,000
Dept/Div: 59-02 | Fund 10 | Object Level 3: 3380 | OCA: 591834 | Amount: $60,000
Dept/Div: 59-02 | Fund 10 | Object Level 3: 3380 | OCA: 592642 | Amount: $60,000
SECTION 2. That the City Auditor is hereby authorized and directed to transfer funds within the street, construction, maintenance and repair fund as follows:
FROM:
Dept/Div: 59-09 | Fund 265 | Object Level 3: 6651 | OCA: 599001 | Amount: $213,610
TO:
Dept/Div: 59-09 | Fund 265 | Object Level 3: 3380 | OCA: 599001 | Amount: $213,610
SECTION 3. That the City Auditor is hereby authorized and directed to increase encumbrance EA006011 as follows:
Dept/Div: 30-03 | Fund 10 | Object Level 3: 3380 | Amount: $620,000
Dept/Div: 30-04 | Fund 10 | Object Level 3: 3380 | Amount: $200,000
Dept/Div: 59-02 | Fund 10 | Object Level 3: 3380 | Amount: $180,000
Dept/Div: 59-09 | Fund 265 | Object Level 3: 3380 | Amount: $245,000
Dept/Div: 60-05 | Fund 650 | Object Level 3: 3380 | Amount: $100,000
Dept/Div: 60-09 | Fund 600 | Object Level 3: 3380 | Amount: $85,000
SECTION 4. That from unappropriated monies in the fleet management service fund, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2005 the sum of $1,430,000 be and is hereby appropriated to the fleet management service fund, Fund 513, Department of Public Service, Fleet Management Division, Division No. 59-05, as follows:
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2280 | OCA: 591347 | Amount: $1,095,000
Dept/Div: 59-05 | Fund 513 | Object Level 3: 2286 | OCA: 591347 | Amount: $335,000
SECTION 5. That said monies shall be paid upon order of the Department of Public Service; and no other order shall be drawn or money paid except by voucher, in the form of which shall be approved by the City Auditor.
SECTION 6: That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.