Friday, February 29, 2008
Costs cut into government plans
Agencies have already surpassed their fuel budgets for the year, with several months still to go.
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Not only is there pain at the pump, gasoline and diesel prices have ripple effects that taxpayers might want to be concerned about.
Government agencies are awash in budget spillovers because of vehicle operation, whether it's fueling school buses, police cars or the sedans driven by municipal agents such as code enforcement officers and street system engineers.
Roanoke County agencies financed through the general fund, which include most everything except the school division, have already spent $45,472 more on gas, oil and grease than was budgeted for the entire year, which ends June 30. After eight months, the county has spent $654,302.
More than 70 percent of the overage has gone for operations in the county's fire and rescue department. Its fleet includes a high percentage of diesel-fueled vehicles, which sometimes have to keep their engines running to operate pumps and other equipment even when they are not being driven.
When the county begins paying $3 a gallon for unleaded gas, for example, it will limit air conditioning use in county vehicles, stop mowing certain areas and consolidate building inspections and property assessments.
In Floyd County, Sheriff Shannon Zeman has already spent the county's $19,920 fuel and oil budget meant to last through June, plus $13,000 more. That will most likely lead to a charge against the county's $578,534 contingency fund, Floyd County Administrator Daniel Campbell said.
In addition, the solid waste department could exceed its allotted $35,000 fuel money by as much as $20,000 by July, according to manager Calvin Reed.
"We really can't cut back," Reed said. "The board of supervisors is going to have to come up with some money somewhere to make up the shortchange."
Botetourt County schools, meanwhile, could face a $50,000 fuel budget overrun despite a 10 percent fuel budget increase this year, said Morris Gill, the school system's transportation and maintenance supervisor.
Gill said the school system is calling for a 27 percent increase in next year's fuel budget, or about an additional $110,000.
Meanwhile, Salem is over budget by nearly $54,000 for gasoline and diesel for all city vehicles, including schools.
The city is trying to reduce the amount spent on gas by reducing the number of trips made in city vehicles, keeping vehicle maintenance up to date and by cutting back on related expenses, spokeswoman Melinda Payne said.
Franklin County schools Finance Director Lee Cheatham said the division had budgeted $2 per gallon this fiscal year for unleaded gas, heating oil and diesel fuel.
But as of Feb. 21, those cost were $2.64, 2.84 and $3.05, respectively, and the division was more than $250,000 over budget, according to Cheatham.
"The thing about fuel costs is that it is a necessary expense," said Cheatham, adding that there was money to cover the expense and money would be set aside in the coming year's budget in anticipation for additional rising costs.
"It's a shame because we aren't using that money to improve education. That money could be used to build more smart classrooms. Instead it's budgeted for this."
The Franklin County Sheriff's Office is also expected to go over budget because of fuel and other costs.
Of the $280,000 budgeted for gas and vehicle repair, $270,000 had already been spent, according to Sheriff Ewell Hunt.
"The cost of vehicle repair has stayed pretty consistent, so it really comes from rising gas costs," Hunt said. "And it's not just gas. The cost of motor oil has gone up as well. It really affects everything."
Staff writers Marquita Brown, Jay Conley, Lindsay Key, Cody Lowe and Ruth Tisdale contributed to this report.





