Published: May 31, 2008 11:19 pm            

City is taking a beating on fuel costs

Controller estimates costs $250K over budget

Kokomo city officials are expecting to spend about $250,000 more than budgeted for fuel costs this year, just one more way high fuel prices are affecting local residents.

The city buys fuel in bulk, but is still paying $1 more per gallon than the same time last year, city controller Jim Brannon said last week.

“We just did a cursory review, but we know what we’re paying for it, and when you add a dollar a gallon to that ... And this is even with some of the things we’re doing to become more efficient,” Brannon said.

Brannon confirmed the city is once again looking at its take-home vehicle policy and is considering charging city employees a fee.

“We’re trying to decide what’s in the city’s best interest,” he said. “We might charge a small fee to cover the cost of going back and forth to work.

“We want it to be such it won’t be a deterrent; we like the idea of community policing and police cars being visible, but at the same time we have to be responsible. It’s only fair they contribute a little bit to the price of fuel, especially with it being $4 a gallon.”

Oil prices are also hurting the city’s street paving plans, with city officials deciding against an expanded street resurfacing plan this summer.

Last week, the city awarded a $1.345 million contract to E&B Paving, Anderson, for the street resurfacing program, roughly the same as the city has spent in recent years.

But to keep pace with the city’s resurfacing needs, city engineer Carey Stranahan said the city street department will try its hand at street resurfacing this year.

About $140,000 will be added to that department’s budget to perform more in-house resurfacing work, Stranahan said.

Last year, the city purchased asphalt at $64.85 a ton. Last week, the price was $76.50 a ton, Stranahan said.

“What property tax reform meant in Indiana was downsizing local government,” Brannon said. “You’re just not going to be able to do business the way you’ve done it in the past.”

Scott Smith may be reached at (765) 454-8569 or via e-mail at scott.smith@kokomotribune.com

        

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