Fiscal Note
The proposed resolution authorizes a $340,000 intra-agency transfer from salaries, benefits, and purchased services to supplies to cover rising fuel costs. The 2026 Fleet Service Adopted Operating Budget assumed 415,000 gallons of gasoline at an average price of $2.8653 per gallon ($1,185,365), 200,000 gallons of diesel at an average price of $2.7039 ($540,780), and 440,000 gallons of renewable diesel at an average price of $4.0039 per gallon ($2,302,496). The Finance Department and Fleet Service have completed a preliminary year-end projection and determined at the current rate of spending on fuel, Fleet is at risk of exceeding its supplies budget by the end of November. Fleet is currently projected under budget in salaries and benefits by $94,300 due to vacancies and under budget in purchased services by $290,500 due to lower than anticipated repairs. The one-time transfer of $340,000 would prevent Fleet Service from hitting a budget stop in supplies. Finance and Fleet Service anticipate additional adjustments to the Fleet budget in the Citywide year-end appropriation resolution, including adjustments to revenue, inter-department billings, and inter-department charges to ensure that Fleet Service can continue to supply fuel to agencies to carry out their operations. At this time, no additional appropriation is required.
Title
Amending the 2026 Fleet Service Division operating budget to authorize a net-neutral transfer from salaries, benefits, and purchased services and increase expense authority in supplies to cover the rising cost of fuel.
Body
WHEREAS, the Fleet Service Division provides fueling services for all city departments, with the exception of Metro Transit which has its own fuel contracts; and,
WHEREAS, the 2026 budget for gasoline is $1,185,365 and diesel is $2,302,496. This budget was developed based on an assumption of 415,000 gallons at $2.8563 average price per gallon for unleaded gasoline, 200,000 gallons at $2.7039 average price per gallon for diesel, and 440,000 gallons at $4.0039 average price per gallon for renewable diesel; and,
WHEREAS, Fleet Service is currently purchasing fuel by piggybacking off the competitively bid State of Wisconsin motor fuels contract, where prices are based on a weekly rack average; and,
WHEREAS, the price of diesel fuel has recently set record highs and gasoline prices have also drastically increased; and,
WHEREAS, at the current rate of fuel spending, Fleet Service is at risk of exceeding its supplies budget by the end of November, which would negatively impact services; and,
WHEREAS, Fleet Service has completed a preliminary year-end projection and anticipates it will be under budget in salaries ($51,111) and benefits ($43,193) due to vacancies and turnover. It anticipates being under budget in purchased services by ($290,452) due to lower than anticipated repairs; and,
WHEREAS, Fleet Service can make inter-departmental transfers across majors to increase the supplies budget to avoid budget stops through early December; and,
WHEREAS, the citywide year-end projection and appropriation resolution will include a comprehensive analysis of Fleet Service expenses. The year-end resolution will propose additional adjustments to the Fleet budget, including adjustments to agency revenues and inter-departmental billings and charges. The year-end resolution will be introduced on November 24, 2026, go to the Finance Committee on November 30, 2026, and is scheduled to be adopted on December 8, 2026;
NOW THEREFORE BE IT RESOLVED, that the Common Council authorizes the following transfers within the Fleet Service 2026 operating budget:
• Salaries: -$50,000
• Benefits: -$40,000
• Purchased Services: -$250,000
• Supplies: $340,000