Explanation
Background: This ordinance authorizes a supplemental appropriation of $975,000 for the Fleet Management Division of the Public Service Department. The appropriation is needed as a result of higher than anticipated costs for fuel and higher than anticipated expenditures for automotive parts.
The 2004 budget appropriated $4,450,437 for fuel purchases. The budget assumed the purchase of 3,640,350 gallons at $1.22 per gallon. As of June 2004, Fleet has purchased 1,777,626 gallons (49 percent of the budget) at an average price of $1.42 per gallon, 16.4 percent above estimate. An additional $655,000 in fuel appropriation is needed to cover fuel purchases into the 4th quarter.
Despite reducing Fleet Management's stocked inventory by $279,000, expenditures for vehicle maintenance parts through the month of July 2004 were $2,193,693 (72 percent of the budget). This is largely due to the increase in the average age of the City's fleet. An additional $320,000 in appropriation for automotive parts is needed to cover parts purchases into the 4th quarter.
The ordinance will authorize a general fund transfer. In 2004, $2,518,002 was appropriated to purchase vehicles for general fund divisions citywide. Of this amount, $1,314,949 has been expended or encumbered on the purchase of 39 police cruisers and 23 vehicles for Fire. A balance of $1,203,053 remains. This legislation will transfer $975,000 of that balance to Fleet's largest general fund customers: Police, Fire, and Refuse. This will allow these divisions to continue to purchase Fleet services despite the higher than anticipated costs for fuel and the higher than anticipated demand for automotive parts.
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 legisla...
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