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Home My WebLink About08/19/2008 19 Unanticipated Diesel and Gasoline Cost Increases; Budget Amendment BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON • AGENDA STATEMENT Item No. *`f-9 For Meeting of: Aug./ 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: Various User Departments and Divisions Reserve Funds Approved for Submittal: 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 121 0 0 121 021 Environmental Planning 131 0 0 131 022 Code Administration 17,236 10,584 3,950 21;186 031 Police 303,500 185,915 68,000 371,500 032 Fire 59,125 36,693 14,250 73,375 041 Engineering 9,279 4,857 500 9,779 051 City Hall Maintenance 243 73 0 243 052 Information Systems 636 588 0 636 • 054 Utility Services 13,008 • 7,403 1,800 14,808 General Fund Total 403,278 246,113 88,500 491,778 124 Community Development 8,100 5,131 0 8,100 125 Community Relations • 524 233 0 524 131 Parks & Recreation 53,200 32,668 12,200 65,400 141 Street & Traffic Operations 151,969 . 96,997 42,150 194,119 III 144 Cemetery 4,854 2,565 0 4,854 441 Stormwater Operating 5,617 0 0 5,617 462 Transit 818,895 515,681 212,600 1,031,495 471 Refuse 169,625 - 120,963 75,000 244,625 473 Wastewater Operating 85,570 66,157 40,000 125,570 474 Water Operating 43,323 26,699 10,100 53,423 475 Irrigation Operating 18,813 10,534 2,300 21,113 551 Equipment Rental 5,778 2,687 0 5,778 560 Public Works Admin 1,640 853 0 1,640 ** *City Total * ** 1,771,186 1,127,281 482,850 2,254,036 III erp 7/3112008 9:35 AM • 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 hereb made for expenditure during 2008 hereby p g , 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/Cepperson 7/30/2008 SCHEDULEI Appropriations Fund 000 - General Fund Resources Appropriations Code Administration -Fuel 000-022- 223 -0000- 53930 -320 $2,450 Animal Control -Fuel 000-022- 103 - 0000 - 53930 -320 $1,500 Police Patrol -Fuel (.3% CJ Sales Tax) 000-031- 103 -0000- 52120 -320 $50,000 Police Patrol -Fuel 000-031- 113 -0000- 52120 -320 $18,000 Fire -Fuel 000 -032 - 122 -0000- 52220 -320 $14,250 Engineering -Fuel 000-041- 528 - 0000 -53220 -320 $500 Utility Services -Fuel 000-054- 635 -0000- 51970 -320 $1,800 Total General Fund $88,500 Fund 131 - Parks and Recreation Operating Fund Parks Maintenance -Fuel 131 - 131 - 421 -PK00- 57680 -320 $12,200 Fund 141 - Streets and Traffic Operating Fund Traffic Engineering(Lighting) -Fuel 141 - 133 - 116 - 0000 -54263 -320 $7,500 Traffic Engineering(Signals) -Fuel 141 - 133 - 525 - 0000 -54264 -320 $5,650 Street Maintenance -Fuel 141 - 141 - 521 -0000 - 54230 -320 $29,000 Total Streets Fund $42,150 Fund 462 - Transit Operating Fund Transit -Fixed Route - Fuel 462 -462- 512 -T642 -54750 -320 $137,600 - Transit -Van Pool - Fuel 462 -462- 512 -T644 -54760 -320 $18,000 Transit- Dian -a -Ride - Fuel 462 -462- 512 -T647 -54760 -320 $57,000 • Total Transit Fund $212,600 Fund 471 - Refuse Fund Refuse - Fuel 471 -471 - 212 -R420- 53780 -320 $75,000 Fund 473 - Wastewater Operating Fund Wastewater - Collection - Fuel 473 -473- 211 -S211- 53581 -320 $15,000 Wastewater- Treatment - Fuel 473 -473- 232 -S232 -53584 -320 $25,000 Total Wastewater Fund $40,000 Fund 474 - Water Operating Fund Water - Fuel 474 -474 -341- 0000 -53480 -320 $8,700 Water - Fuel 474 -474 -343- 0000 -53480 -320 $1,400 Total Water Fund $10,100 Fund 475 - Irrigation Operating Fund Irrigation = Fuel 475- 475 - 342 -0000- 53120 -320 $2,300 Fund 551 - Equipment Rental Fund Resources Reimbursement -Fuel 551 - 551 -634 - 0000 -34850 - 320 $482,850 Appropriations Resale- Gasoline 551 -551 - 634 -ER02- 54848 -342 $217,550 Resale - Diesel 551 - 551 - 634 -ER02- 54848 -344 $265,300 • Total Equipment Rental Fund $482,850 $482,850 cje 7/31/2008 • rules concerning examination, appointment, promotion, transfer, reinstatement, demotion suspension, discipline, advancement, removal or discharge, shall not apply to the deputy chief of police. Section 4. This Ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 19 day of August, 2008. David Edler, Mayor ATTEST: City Clerk, Publication Date: Effective Date: • -3-