Minutes 05/27/2008 - Laserfiche WebLink

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May 27.2008 Financial impact: . No local cash match is required. Staff Recommends: Adoption of ordinance. Vision Principle: Thriving Neighborhood and a Sense of Community. Next Steps Following Council Action: . If the requested appropriation is approved, the Director of BHS will ensure that PATH homeless case management services will continue to provide assistance to homeless consumers in Portsmouth. Motion by Ms. Psimas, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE APPROPRIATING $4,778 OF MCKINNEY-VENTO ACT HOMELESS ASSISTANCE INCENTIVE FUNDS FOR THE PROGRAM TO ASSIST IN THE TRANSITION FROM HOMELESSNESS (PATH) IN THE FY 2007-2008 BEHAVIORAL HEAL THCARE SERVICES FUND OPERATING BUDGET." Ayes: Heretick, Moody, Psi mas, Randall, D. Smith, R. Smith, Holley Nays: None 08 - 253 - Adoption of an ordinance to appropriate $875,448 in the FY 2007-2008 City Garage Operating Budget from the previously unappropriated City Garage Fund balance to address increased fuel expenses. Vision Principle: Bold New Directions. Background: . The cost per gallon for fossil fuel has increased dramatically in the last several months. The City's cost has exceeded the thirty cents per gallon budget increase over last year's average cost. Discussion: . The City Garage is an internal service fund and charges a rental rate to city departments based on each department's vehicle costs for maintenance, fuel and depreciation. Maintenance charges for each vehicle are calculated based on the type of vehicle, usage and historical maintenance costs. Fuel costs are determined by multiplying the projected cost of fuel per gallon for each vehicle's projected usage (miles) over the fiscal year. Depreciation costs are calculated using straight-line depreciation to build stability into the rental rates. The combination of these charges constitutes a vehicle's rental rate. . During the FY08 budget preparation process, fuel costs were calculated using $2.85 per gallon of gasoline and $3.00 for diesel fuel. Since July 1, 2007, the City Garage has paid between $2.88 and $3.06 per gallon of unleaded gasoline and between $3.10 and $3.56 per gallon for diesel fuel. . An increase in fuel costs, and an increase in vehicle usage, has created a shortfall in the City Garage fund of approximately $875,448 dollars. . An analysis of fuel cost and fuel usage was conducted in order to address the variance between actual and budgeted fuel costs for FY08. Market forecasts projecting the stability of fuel rates over the next several months were also taken into consideration. Staff Recommends: Adoption of an ordinance. Vision Principle: Bold New Direction. Next Steps Following Council Action: . Chief Financial Officer will process a budget action appropriating $875,448 in the FY08 City Garage Operating Budget using fund balance as a source of revenue.