Soaring fuel costs breaking county budgets-Departments currently 6 to 45% over budget

The unprecedented increase in gasoline prices is consuming ever-increasing portions of everyone’s budget.

From families to businesses, this national problem is affecting the bottom line for anyone who drives, and Warren County government is no different.

According to director of accounts Linda Hillis, all three departments with fuel budgeted directly by county government ‘ the Sheriff’s Department, Ambulance Service and Sanitation Department ‘ are already close to depleting their fuel budgets for this year. They are expected to exceed these budgets significantly by the end of the fiscal year on June 30, to the tune of around 1 cent in property tax.

This is despite the fact the county budgeted extra funds to cover expected fuel price increases.

The numbers this year are an indication of what the future may hold for county fuel costs. The following figures show fuel cost totals paid up to March, which only includes usage through February, and the estimated overage by June 30 using an average of previous months.

‘We got the February bill in March, and we paid that,’ Hillis said. ‘So we still have four months.’

According to Hillis, if the estimates hold true, the Sheriff’s Department will be around 30 percent over budget, Sanitation 6 percent, and Ambulance Service 45 percent.

With the property tax rate holding steady at $2.31 for five straight years, many are wondering how the county will handle increased fuel costs, and if a tax increase is necessary to maintain vital services.

Five years ago the price of gas in McMinnville was around $1.69. Yesterday, the price of gas was as high as $3.56.

County Executive John Pelham says there’s no way to tell what effect rising fuel costs will have.

‘I wish I had the answer to that,’ Pelham said, ‘but I don’t. Certainly our Budget and Finance Committee will be looking into that. The new chairman, Herschel Wells, and I have talked about this. We understand going into this it will be a difficult budget year.

Both Hillis and Pelham say there are no contingency funds in the budget to cover these overages and each department will be responsible for finding the funds from within its own budget.

‘What we’re having to do is maybe cut back on some other expenses within those departments,’ Hillis said. ‘So that we can cover the excess fuel costs.’

Hillis says there are several methods the departments can utilize.

‘It varies from department to department,’ Hillis said. ‘If they have an expense they can hold of on until after July 1, they may try to do that. They may have some equipment budgeted they haven’t purchased yet, so they may hold off on that until after July 1. Each department will have to absorb the additional costs by cutting other areas in their budget.’

Pelham says rising fuel costs are definitely a county budget concern.

‘We have increased costs that are totally out of our control,’ Pelham said. ‘And how are going to address that’?

Currently the county’s fuel costs amount to 3.25 cents of the tax rate, not counting the Highway Department and the school system, both of which budget their own fuel costs. With the overage this year amounting to around 1 cent, Pelham agrees the extra funds will have to come from somewhere if a tax increase is to be avoided.

‘Last year we were very blessed that we were able to fund what I consider a very progressive budget with no tax increase,’ Pelham said. ‘The reason we were able to do that is because we had growth. Now that’s what we have to focus on. Last year a penny of our tax rate was roughly $50,000, but the year before that a penny was around $48,300. We grew some $1,700 on a penny.

‘So that’s our savior,’ Pelham said, noting growth is continuing, but nowhere near the same rate. ‘This year, as difficult as it’s been, and I want us to take this as a positive, we have grown again, but not by what we did last year. It’s not going to be enough growth to offset these fuel costs we’ve talked about, but at least we have seen some growth.

‘So that’s what we have to look at as we continue to go forward,’ Pelham said. ‘If we are not to have a tax increase, we’ve got to work to see growth in our economy, whether that be residential growth, industry or whatever, that’s our focus, to work to see growth.’

Gas prices ‘ a budget breaker

‘ Sheriff’s Department ‘ Budgeted: $106,000; used: $91,824; estimated overage: $30,000

‘ Sanitation Department ‘ Budgeted: $25,000; used: $20,733; estimated overage: $6,000

‘ Ambulance Service ‘ Budgeted: $24,710; used: $23,805; estimated overage: $11,000

Total estimated overage: $47,000