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Home My WebLink About207-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 207-22 File Number: 2022-0620 FLEET FUEL THROUGH THE END OF 2022: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,738,000.00 FOR THE PURCHASE OF ADDITIONAL FLEET FUEL THROUGH THE END OF 2022 THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment in the amount of $1,738,000.00 for the purchase of additional fleet fuel through the end of 2022. PASSED and APPROVED on 9/6/2022 Attest: L%A11 RKI��.fi -tip,• Y y .9sGs, fi. �$. v�t.t.t • Kara Paxton, City Clerk Treasurer ��,: sp _ �, : A�` �••��ZI "&- Tp RBI 07;,� Page 1 Printed on 917122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0620 Agenda Date: 9/6/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A.18 FLEET FUEL THROUGH THE END OF 2022: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,738,000.00 FOR THE PURCHASE OF ADDITIONAL FLEET FUEL THROUGH THE END OF 2022 THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment in the amount of $1,738,000.00 for the purchase of additional fleet fuel through the end of 2022. City of Fayetteville, Arkansas Page 1 Printed on 91712022 Kevin Springer Submitted By City of Fayetteville Staff Review Form 2022-0620 Legistar File ID 9/6/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/17/2022 BUDGET & INFORMATION MGMT (133) Submitted Date Division / Department Action Recommendation: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,738,000 TO COVER CITYWIDE FUEL PURCHASES THROUGH THE END OF 2022. xxxx.xxx.xxxx-5213.xx Account Number Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Citywide Fund Project Title $ 3,244,207.00 $ 2,600,463.05 $ 643, 743.95 $ 1,738,000.00 2,381,743.95 V20210527 Previous Ordinance or Resolution # Approval Date: CITY OF FAYETTEVILLE %PF ARKANSAS MEETING OF SEPTEMBER 6, 2022 TO: Mayor and City Council THRU: Paul A Becker, Chief Financial Officer FROM: Kevin Springer, Budget Director DATE: August 17, 2022 CITY COUNCIL MEMO SUBJECT: Approval of a Budget Adjustment to cover Citywide Fuel purchases for the remainder of 2022. RECOMMENDATION: Staff recommends approval of a budget adjustment in the amount of $1,738,000.00 for the purchase of citywide fuel in the Unleaded/Diesel accounts due to increased price of fuel. BACKGROUND: The budgeting and allocation for fuel expense is done in two different areas. • Fleet Operations handles the direct purchase of fuel within inventory accounts in the Shop Fund. • The other City departments obtain their fuel from internal pumps and then Fleet allocates charges to their individual fuel accounts which results in revenue received into the Shop Fund. DISCUSSION: The total amount of fuel expense at the end of July 2022 is up by 62% compared to July 2021 which directly corresponds to the average cost of fuel increasing by the same percentage. When budgeting fuel, the City uses an average $3.57/gallon rate. Fuel reached a high of $4.78/gallon in July 2022. Because of that, we are estimating $5.00/gallon for the remaining months in 2022. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The requested budget adjustment equals $1,738,000 in total. $1,020,000 is going into the Shop Fund and will be 100% covered in revenue; the additional $718,000 will be allocated to the other divisions and will be covered with fund reserves. Below is a summary of the budget adjustment by Fund. BUDGET AREA / FUND ADJUSTMENT FUEL INVENTORY: 9700 - Shop 1,020,000 FUEL INVENTORY: Total 1,020,000 FUEL USAGE BY DIVISION: 1010 - General 172,300 2100 - Street 32,700 2130 - Parking 200 2250 - Parks Development 24,500 5400 - Water and Sewer 250,000 5500 - Recycling and Trash Collection 238,000 5550 - Airport 300 FUEL USAGE BY DIVISION: Total 718,000 Grand Total 1,738,000 Attachments: Budget Adjustment 2 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Non -Departmental (800) 2022 /Org2 Adjustment Number Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,738,000 TO COVER CITYWIDE FUEL 11914 MMFWAV 62IMM1190191MMIL'12:1101oxel040" RESOLUTION/ORDI NANCE COUNCIL DATE: 9/6/2022 LEGISTAR FILE ID#: 2022-0620 KeA/L4v $pv 6nq,e,r 8/17/2022 3:59 PM Budget Director / Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL 1,738,000 1,738,000 v.20220718 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 9700.770.1910-4429.02 - 1,020,000 RE Internal Charges - Fleet Fuel 9700.770.1910-5213.00 150,000 - EX Fuel - Gasoline (Inventory) 9700.770.1910-5213.01 870,000 - EX Fuel - Diesel (Inventory) 1010.001.0001-4999.99 - 172,300 RE Use Fund Balance - Current 1010.140.1410-5213.04 540 EX Fuel - Unleaded/Diesel 1010.200.2940-5213.04 102,900 - EX Fuel - Unleaded/Diesel 1010.300.3010-5213.04 3,400 EX Fuel - Unleaded/Diesel 1010.300.3020-5213.04 27,500 - EX Fuel - Unleaded/Diesel 1010.300.3030-5213.04 2,300 - EX Fuel - Unleaded/Diesel 1010.520.5220-5213.04 500 - EX Fuel - Unleaded/Diesel 1010.520.5250-5213.04 200 - EX Fuel - Unleaded/Diesel 1010.520.5260-5213.04 9,800 - EX Fuel - Unleaded/Diesel 1010.520.5280-5213.04 200 - EX Fuel - Unleaded/Diesel 1010.621.6220-5213.04 1,000 - EX Fuel - Unleaded/Diesel 1010.621.6240-5213.04 11,000 - EX Fuel - Unleaded/Diesel 1010.640.6400-5213.04 2,300 - EX Fuel - Unleaded/Diesel 1010.642.6420-5213.04 2,400 - EX Fuel - Unleaded/Diesel 1010.671.2710-5213.04 8,260 - EX Fuel - Unleaded/Diesel 2100.410.4100-4999.99 - 32,700 RE Use Fund Balance - Current 2100.410.4100-5213.04 200 - EX Fuel - Unleaded/Diesel 2100.410.4110-5213.04 1,400 - EX Fuel - Unleaded/Diesel 2100.410.5315-5213.04 8,200 - EX Fuel - Unleaded/Diesel 2100.410.5520-5213.04 22,900 - EX Fuel - Unleaded/Diesel H:\Budget Adjustments\2022_Budget\CITY COUNCIL\09-06-22\2022-0620 BA Fuel Purchases.xlsm 1 of 2 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 2130.430.9130-4999.99 - 200 RE Use Fund Balance - Current 2130.430.9131-5213.04 200 - EX Fuel - Unleaded/Diesel 2250.520.9250-4999.99 - 24,500 RE Use Fund Balance - Current 2250.520.5260-5213.04 24,500 - EX Fuel - Unleaded/Diesel 5400.700.1800-5213.04 600 - EX Fuel - Unleaded/Diesel 5400.700.4020-5213.04 700 - EX Fuel - Unleaded/Diesel 5400.720.1820-5213.04 13,500 - EX Fuel - Unleaded/Diesel 5400.720.1830-5213.04 7,700 - EX Fuel - Unleaded/Diesel 5400.720.4000-4999.99 - 250,000 RE Use Fund Balance - Current 5400.720.4310-5213.04 129,000 - EX Fuel - Unleaded/Diesel 5400.720.4330-5213.04 2,300 - EX Fuel - Unleaded/Diesel 5400.720.4410-5213.04 15,600 - EX Fuel - Unleaded/Diesel 5400.720.5620-5213.04 1,800 - EX Fuel - Unleaded/Diesel 5400.730.5110-5213.04 60,800 - EX Fuel - Unleaded/Diesel 5400.730.5120-5213.04 3,000 - EX Fuel - Unleaded/Diesel 5400.730.5140-5213.04 15,000 - EX Fuel - Unleaded/Diesel 5500.750.5000-4999.99 - 238,000 RE Use Fund Balance - Current 5500.750.5000-5213.04 600 - EX Fuel - Unleaded/Diesel 5500.750.5010-5213.04 62,300 - EX Fuel - Unleaded/Diesel 5500.750.5020-5213.04 78,700 - EX Fuel - Unleaded/Diesel 5500.750.5040-5213.04 11,400 - EX Fuel - Unleaded/Diesel 5500.750.5060-5213.04 60,700 - EX Fuel - Unleaded/Diesel 5500.750.5070-5213.04 24,300 - EX Fuel - Unleaded/Diesel 5550.760.3940-4999.99 - 300 RE Use Fund Balance - Current 5550.760.3940-5213.04 300 - EX Fuel - Unleaded/Diesel H:\Budget Adjustments\2022_Budget\CITY COUNCIL\09-06-22\2022-0620 BA Fuel Purchases.xlsm 2 of 2