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 pri...
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