HomeMy WebLinkAboutIR 8773To the Mayor and Members of the City Council
"fieSUBJECT: FUEL MANAGEMENT
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The purpose of this report is to provide the City Council with information relative to fuel
consumption and management and the impact of fuel prices on the City of Fort Worth budget.
This report includes current fuel information along with the methods that the departments are
using to conserve fuel and the Equipment Services Department is using to minimize the fiscal
impact of fuel price increases.
Fuel prices have escalated over the past few years, This upward trend can be noted
following chart (milestones in fiscal quarter). The spike in fuel prices is associated with thq
natural disasters in September 2005.
FUEL PRICES
The latest Monthly Financial Report noted that one major reason for some departments being
over budget vows related, to fuel costs, Re-estimates show a 42% increase in pro'ected
current year co its over the current year budget,
ISSUE D BY THE CITY MANAGER FORT WORTH, TEXAS
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The next chart indicates the unleaded and diesel fuel costs for FY 2004-05, budgeted and re-
estimated costs for the current fiscal year, and projected fuel costs for FY 2006-07. Fuel cost
increases are significant and reflect an increase of $2.57 million from budget to projected.
Barring changes in more than two economic factors, the projected budget should align the
City budget with a significant increase and continuing upward trend in fuel prices.
FUEL COSTS
methods of managing fuel (,-.- st s is
in the acquisition of
BUDGETVY
2005/06
RE-ESTIMATE
FY 2005/06
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City Unleaded
$1,124,145.00
$1,573,76100
$1,969,858.00
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$2,286,543.00
Change from Budget
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Methods - - � i ' men t Services to Key Fuel 'gists Down
One of the primar-y
methods of managing fuel (,-.- st s is
in the acquisition of
fue-1, The
Equipment Services
Department has a purChase agreement
forf"luel' that 13 other
entities use
to allow for volume disGounts
in fuel purchases, Some of the enass es associated vvith the City
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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Another method of managing fuel costs is through educating city staff on proper operation of
vehicles. The Equipment Services web page regularly posts new it savings tips. Also,
proper operational methods are communicated to the departments through their fleet
managers.
Should you have any questions regarding this report please contact Wayne Corum, Acting
Equipment Services Director, at 817-392-5118 or me.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGE O W WORTH, TEXAS