Report Prepared by: Wally Broughton, Public Works Manager - Operations
Title
SUBJECT: Approval of Supplemental Appropriations / Budget Modifications Totaling $750,000 from Various Division Budgets to Fund 670-Fleet Management Vehicle Fuel Expense Account to Cover Funding Shortage Through June 30, 2022
REPORT IN BRIEF
Considers transferring $750,000 from various divisions to Fund 670-Fleet Management and appropriating in the Vehicle Fuel expense account to cover the funding shortage through June 30, 2022.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a supplemental appropriation from the unreserved, unencumbered fund balance in the General Fund in the amount of $71,480 for the Fire Department; and,
B. Approving the transfer of $750,000 from various divisions to Fleet Fund 670 and appropriating the same to Vehicle Fuel expense account 670-1103-532.33-00; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff;
2. Refer to staff for reconsideration of specific items;
3. Continue to a future meeting;
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 1105.
DISCUSSION
The original requested Fiscal Year 2021/2022 Fuel Budget totaled $1,349,714. Staff has attempted to work with the available budget; unfortunately, due to actual fuel consumption amongst the 500 vehicles in the City’s Fleet, including core services of Police, Fire, and Refuse, as well as current world events which have dramatically impacted fuel prices, an additional $750,000 is needed in order to purchase fuel through the end of the Fiscal Year.
IMPACT ON CITY RESOURCES
Transfers from the following divisions, in the following amounts, will be necessary in a total amount of $750,000. The Finance Department has verified there is sufficient savings within each department’s FY 2021/2022 approved budget to cover the transfer with the exception of the Fire Department. A supplemental appropriation of $71,480 is required for the Fire Departments allocation of additional fuel costs. Amounts shown below are calculated using each respective division’s anticipated fuel consumption based on current usage.
|
Department |
Amount |
|
Airport |
$ 2,750 |
|
City Clerk |
$ 235 |
|
Engineering |
$ 1,355 |
|
Finance, Purchasing |
$ 115 |
|
Fire |
$ 71,480 |
|
Fire/Measure C |
$ 2,089 |
|
Information Technology |
$ 550 |
|
Inspection Services |
$ 1,344 |
|
Parks and Recreation |
$ 783 |
|
Police |
$ 144,472 |
|
Police/Measure C |
$ 1,544 |
|
Public Works, Admin |
$ 1,581 |
|
Public Works, Facilities |
$ 5,081 |
|
Public Works, Land Application |
$ 6,434 |
|
Public Works, Parks Maintenance |
$ 11,273 |
|
Public Works, MD/CFD |
$ 1,316 |
|
Public Works, Refuse |
$ 299,375 |
|
Public Works, Sewer |
$ 27,609 |
|
Public Works, Storm Drains |
$ 1,977 |
|
Public Works, Street Sweeping |
$ 39,792 |
|
Public Works, Streets |
$ 22,130 |
|
Public Works, Trees |
$ 42,258 |
|
Public Works, WWTP |
$ 14,255 |
|
Public Works, Water |
$ 48,918 |
|
Public Works, Water Quality Control |
$ 1,284 |
|
|
|
|
Total: |
$ 750,000 |