Gasoline costs still wreaking havoc
Tuesday, November 29th, 2005
By Chris Fitzsimon
Winston-Salem could fall $712,000 short, officials say
By Bertrand M. Gutierrez JOURNAL REPORTER
Even if fuel costs plateau and the city of Winston-Salem meets its goal of cutting fuel consumption by 10 percent, the annual fuel tab could run $712,000 more than expected, budget officials said yesterday.
And that number could rise even more if city vehicles continue to use gas at the rate they did in October. Nine of the city’s 26 departments missed the 10 percent target last month, officials said. Although fuel consumption decreased, it dropped by just 6.8 percent as budget planners head into the next fiscal season.
"I’m disappointed to hear that we have not hit the 10 percent mark," Council Member Dan Besse said. "I would not be satisfied with any approach (to cover the overrun) that would increase taxes or decrease services."
City managers imposed fuel restrictions two months ago, in the wake of Hurricane Katrina, as gas prices paid by the city peaked at $3.15 a gallon, according to Marshall Mathers, the director of the City-County Purchasing Department. That’s nearly 174 percent more than the $1.15 a gallon paid in late December 2004.
Prices paid by the city are lower than those consumers see at the pump because local governments are not required to pay fuel taxes.
Although prices have fallen - the last purchase was for $1.49 a gallon - budget officials anticipate an average cost of $1.91 to $1.99 for the year. The city budget was based on an average price gas of $1.35, thus the overrun. (more…)
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