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Home My WebLink About08/05/2008 16 Unanticipated Diesel and Gasoline Costs; Budget AmendmentBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. /16 For Meeting of: Aug. 5, 2008 ITEM TITLE: An Ordinance Amending the 2008 Equipment Rental and Other Operating Budgets for Unanticipated Diesel and Gasoline Cost Increases SUBMITTED BY: Chris Waarvick, Director of Public Works Richard Wonner, Fleet and Facilities Manager Cindy Epperson, Financial Services Manager CONTACT PERSON/TELEPHONE: Richard Wonner, 575 -6412 SUMMARY EXPLANATION: The Equipment Rental Division is presenting a fuel budget appropriation request to cover fuel expenditures projected to exceed the 2008 Budget by $482,850. Even though an increase in these costs was included in the 2008 adopted budget, gasoline and diesel prices continued to escalate at unprecedented rates, resulting in a current budget shortfall. Refinery limitations, global competition for crude oil and geo- political challenges have raised the price of crude oil to over $120 a barrel. Just last year, a barrel of oil was around $70, while a few short years ago, it sold for around $20. In addition, even though user divisions are doing what they can to be fuel efficient, city -wide fuel consumption continues to increase over previous years because of recent annexation additions, resulting in increased service demands. A summary of the total Citywide fuel budget by Fund/Department follows. This includes the current 2008 budget; the year- to-date actual costs incurred through June 30; the proposed appropriation; and the proposed 2008 amended budget after including the appropriation. The attached Appropriation Ordinance amends the 2008 Equipment Rental and other operating fund budgets to accommodate unanticipated fuel expenditures due to significant increases in fuel costs; both actual and projected. The three divisions most effected are Transit for $212,600; Refuse for $75,000, and Police for $68,000; the adjustments in these three divisions make up about 75% the total appropriation. Resolution _Ordinance X Other (Specify) Schedule I Funding Source: Approved for Sub City Manager STAFF RECOMMENDATION: Read Ordinance by title only at the August 5, 2008 .meeting. Pass Ordinance after second reading at the August 19, 2008 meeting. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: City of Yakima 2008 Fuel #320 2008 2008 YTD 2008 Amended Fund /Department Budget 6/30/2008 Approp Budget 017 Legal 021 Environmental Planning 022 Code Administration 031 Police 032 Fire 041 Engineering 051 City Hall Maintenance 052 Information Systems 054 . Utility Services General Fund Total 124 Community Development 125 Community Relations 131 Parks & Recreation 1641 Street & Traffic Operations 44 Cemetery 441 Stormwater Operating 462 Transit 471 Refuse 473 Wastewater Operating 474 Water Operating 475 Irrigation Operating 551 Equipment Rental 560 Public Works Admin • ** *City Total * ** erp 7/31/2008 9:35 AM 121 0 0 121 131 0 0 131 17,236 10,584 3,950 21,186 303,500 185,915 68,000 371,500 59,125 36,693 14,250 73,375 9,279 4,857 500 9,779 243 73 0 243 636 588 0 636 13,008 7,403 1,800 14,808 403,278 246,113 88,500 491,778 8,100 5,131 0 8,100 524 233 0 524 53,200 32,668 12,200 65,400 151,969 96,997 42,150 194,119 4,854 2,565 0 4,854 5,617 0 0 5,617 818,895 515,681 212,600 1,031,495 169,625 120,963 75,000 244,625 85,570 66,157 40,000 125,570 43,323 26,699 10,100 53,423 18,813 10,534 2,300 21,113 5,778 2,687 0 5,778 1,640 853 0 1,640 1,771,186 1,127,281 482,850 2,254, 036 1�1u ORDINANCE NO. 2008 AN ORDINANCE amending the 2008 budget for the City of Yakima; and making appropriations within various operating funds for expenditure during 2008 to provide for increased fuel costs. WHEREAS, the various funds indicated on the attached Schedule I contain Unappropriated Fund Balances available for appropriation and expenditures during 2008 in various amounts as detailed in the attached Schedule I to provide for increased fuel costs, and WHEREAS, at the time of the adoption of the 2008 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Appropriations are hereby made, for expenditure during 2008, from Unappropriated Fund Balances in the various Funds to the various accounts and in the various amounts, to provide for increased fuel costs all as specified in the Schedule attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this day of 2008. David Edler, Mayor ATTEST: City Clerk First Reading: • Publication Date: Effective Date: ms/Ceppersm 7/30/2008 Appropriations Fund 000 - General Fund Code Administration -Fuel Animal Control -Fuel Police Patrol -Fuel (.3% CJ Sales Tax) Police Patrol -Fuel Fire -Fuel Engineering -Fuel Utility Services -Fuel SCHEDULEI 000 - 022 - 223 - 0000 - 53930 -320 000 - 022 - 103- 0000 - 53930 -320 000 - 031 - 103- 0000 - 52120 -320 000 - 031 - 113- 0000 - 52120 -320 000- 032 - 122- 0000 - 52220 -320 000 - 041 -528- 0000- 53220 -320 000 - 054 -635- 0000 - 51970 -320 Total General Fund Fund 131 - Parks and Recreation Operating Fund Parks Maintenance -Fuel 131 -131- 421 -PK00- 57680 -320 Fund 141 - Streets and Traffic Operating Fund Traffic Engineering(Lighting) -Fuel Traffic Engineering(Signals) -Fuel Street Maintenance -Fuel Fund 462 - Transit Operating Fund Transit -Fixed Route - Fuel Transit -Van Pool - Fuel • Transit- Dian -a -Ride - Fuel Fund 471 - Refuse Fund Refuse - Fuel Fund 473 - Wastewater Operating Fund Wastewater - Collection Fuel Wastewater- Treatment - Fuel Fund 474 - Water Operating Fund Water..- Fuel Water - Fuel Fund 475 - Irrigation Operating Fund Irrigation - Fuel Fund 551 - Equipment Rental Fund Resources Reimbursement -Fuel Appropriations Resale- Gasoline • Resale - Diesel 141 - 133 - 111.6- 0000 -54263 -320 141- 133 -525- 0000 -54264 -320 141 - 141 -521- 0000 - 54230 -320 Total Streets Fund 462- 462 - 512 -T642- 54750 -320 462- 462 - 512 -T644 -54760 -320 462 - 462 - 512 -T647 -54760 -320 Total Transit Fund 471 - 471 - '212 -R420- 53780 -320, 473 - 473 - 211 -S211- 53581 -320 4t -473- 232 -S232 -53584 -320 Total Wastewater Fund 474 - 474 -341- 0000 - 53480 -320 474 -474 -343- 0000 -53480 -320 Total Water Fund 475 - 475 -342- 0000 - 53120 -320 551 - 5514334- 0000 - 34850 -320 Resources Appropriations $482,850 $2,450 $1,500 $50,000 $18,000 $14,250 $500 $1,800 $88,500 $12,200 $7,500 $5,650 $29,000 $42,150 $137,600 $18,000 $57,000 $212,600 $75,000 $15,000 $25,000 $40,000 $8,700 $1,400 $10,100 $2,300 551 -551 - 634 -ER02 -54848 -342 $217,550 551 -551- 634 -ER02 -54848 -344 $265,300 Total Equipment Rental Fund $482,850 $482,850 cje 7/31/2008