| ITEM #: 10. DATE: 06/06/2022 AI #:938 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | EXPENDITURE APPROVAL FOR FUEL FOR CITY VEHICLES AND RELATED BUDGET TRANSFER |
| STAFF PRESENTER(S): | Kevin Devery, Fleet Superintendent |
SUMMARY
The city of Goodyear operates three fueling sites used by staff to fuel city vehicles and equipment. The cost of fuel has increased over the last several months across the nation, impacting the cost we pay for bulk fuel and fuel purchased at commercial sites by an average of 68%. We are requesting an additional $235,000 in expenditure approval and funding to complete the purchase of fuel through the end of FY2022.
Recommendation
Approve the expenditure of an additional $235,000 for a total expenditure authority of $1,126,100 for FY2022 and approve the transfer of $235,000 from unassigned fund balance to pay for fuel through the end of the fiscal year. (Kevin Devery, Fleet Superintendent)
FISCAL IMPACT
Additional funding for this action is available in general fund unassigned fund balance. Increased costs for fuel are allocated to each department and these increased costs have been factored into the FY2022 ending fund balance projections. Funding for fuel purchases are included in the FY2022 fleet operating budget in the amount of $891,100. The current request increases the budget and expands expenditure authorization to $1,126,100 as a result of the increased cost of fuel. This estimate will provide capacity to pay for all fuel purchases through the end of FY2022.
The FY2023 budget has been approved and expenditures authorized at $1,197,500 and no changes are requested at this time.
The FY2023 budget has been approved and expenditures authorized at $1,197,500 and no changes are requested at this time.
BACKGROUND AND PREVIOUS ACTIONS
On June 21, 2021, Council approved $891,100 of expenditure authority in FY2022 funds to pay for fuel.
STAFF ANALYSIS
The cost per gallon of fuel has increased dramatically due to inflation, supply chain, and other issues. These increases have impacted the cost we pay to our bulk fuel vendor and the cost we pay at commercial fuel sites with the Voyager system. The table below shows the percentage increase we are paying from July to our most recent invoices for bulk fuel.
| Cost Per Gallon | Unleaded | E-85 | Diesel |
| July 2021 | $2.59 | $2.77 | $2.51 |
| May 2022 | $4.60 | $3.80 | $4.72 |
| % Increase | 78% | 37% | 88% |