Fuel Cost Causing Budget Headaches

Staff Writer

West Tawakoni City Administrator Cloy Richards has never dealt with a budget as daunting as the one he is trying to build now.

He is not alone.

The uncertainty of fuel prices during the next 12 months has cities and school districts alike facing some difficult decisions over the summer. Richards hinted at that fact during Tuesday’s West Tawakoni City Council session.

"I’ve never had to do what amounts to a silly guess on so many budget items," he told the council in his report.

"But for the last three years, I’ve raised the fuel expense (budget) 25 percent and it has come up short every year. That’s 75 percent over three years," Richards added.

He implored the council to set up a budget workshop date, which the council agreed to do on June 16.

Richards did not mince words about what he and the council will face in preparing the 2008-2009 budget.

"This is my 15th year of planning a budget as a city administrator, and every year before, I could defend any number in any column," he said after the meeting.

Cuts in services or possibly in personnel may have to be considered, Richards said.

"The continued jump in the cost of fuel affects everything we do in our day-to-day work," he said. "We will literally have to rearrange it."

As an example, Richards said the city’s water and sewer department will take an expense hit on many things besides gasoline.

"Almost everything they use is petroleum-based, such as the PVC pipe," he said.

West Tawakoni Mayor Pete Yoho agreed it will not be an easy budget planning process this year.

"We’ll need to see where we can and can’t make adjustments," he said.

Richards advised the city stay away from deficit financing and to instead look for other ways to hold the line on expenses.

That may take a lot of brainpower during budget workshops.

"It’s my responsibility as city administrator to lay out some options…Frankly, I’m already at the losing sleep point," Richards said.