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ENLARGE
The price of regular unleaded gas dropped below the $2 mark Friday in Fallon as gas prices continue to drop across the country.
A waiting game is how local public entities are responding to lower fuel costs.
When agencies created their budgets several months ago, fuel prices hovered around $4 a gallon, a figure used in the budgeting process.
Churchill County Comptroller Alan Kalt said the current gas prices may not reflect prices in the future.
He said the recent savings could be used from other budgeted items increasing in price and can also be used to offset revenue streams yet to come in.
“It’s a little premature to think that these prices will stay down,” Kalt said, adding he doubts fuel will stay at about $2 a gallon.
“Are we going to have $50 barrels for a length of time?” he asked rhetorically.
The lower gas prices may lead to increased excise taxes the county receives since more people may drive more now than in the past few months. For every gallon of gasoline sold, the county receives 9 cents.
Kalt said the county is cautionary optimistic, noting fuel prices are determined by supply and demand.
“In my own prediction, we are not going to have $2 (a gallon next) July,” he said. “I doubt it (will not increase).”
On a positive note, he said, the low fuel prices are a bright sign in this struggling economy. He added certain services, such as the food industry, may lower prices since they are paying less in transportation.
Fallon City Clerk Gary Cordes said lower fuel prices have given the city some relief, but he won’t know to what extent until spring.
Cordes said the city saves a lot of money on trips to the landfill, and added since officials knew the vehicles needed to use a lot of fuel, the decision was made to make fewer trips.
Cordes said the city never anticipated fuel prices dropping to this level when the final budget was made. Any funds not used stays with the city for future use, Cordes said.
“If we over estimate or under estimate, the money is not swept away,” he said. “It stays in the big banking account.”
The city clerk said things may happen in the future to cause fuel prices to skyrocket, so the city must wait to see if fuel prices remain low. He added there are services the city must provide, regardless of the cost, including sanitation and law enforcement.
“We budget on a long-term basis,” he said.
The Churchill County School District is saving about $230 a day on fuel costs for its buses, said Transportation Manager Gregg Malkovich.
He said the buses, traveling 1,500 miles a day, get six to eight miles per gallon and the fleet uses 187.5 gallons per day. He said in May the district paid $3.48 a gallon compared to the $2.19 it now pays.
While the low prices are a relief, Malkovich said there is no way to know what the prices will be like in the future.
Lynn Broyles, director of business services for the CCSD, said the district expects fuel usage to consist of 45,000 gallons of diesel and 15,000 gallons of gasoline. Most of the buses use diesel fuel. She said the average price the district paid per gallon for the 2007-2008 fiscal year was $2.98 for diesel and $3.18 for gasoline.
Broyles said if the CCSD projects diesel and gasoline averages at $2.50 per gallon for the year the cost would be $201,650. Currently, the budget for fuel is $240,000. She said the budget was prepared in June before fuel costs started to fall, and the district does not know if gasoline costs will increase.
Fernley City Manager Gary Bacock said there are many positive impacts with fuel prices decreasing. He said the budgeted fuel costs would be extremely hard to calculate since they are divided into numerous departments.
However, he said it is hard to determine if there are going to be any savings for the city because budgets are done on an annual basis.
Bacock said most savings the city might see is from its public works department because employees travel long distances to all parts of the city. He added Fernley may not see any savings because when the budget was prepared in January, fuel prices were skyrocketing, so the current decrease in costs may be offset by that increase.
Fernley also receives about $1 million a year on excise taxes from gasoline purchases based on consumption. He said lower prices could mean either more or less usage. Lower prices may mean people drive more, but they do not need the same amount of fuel.
“Generally, for the economy it’s good,” Bacock said.
Wade Johnson, comptroller for the Lyon County School District, said the district will ask for more money for fuel when amending its budget.
He said LCSD budgeted $500,000 for fuel and thinks it will need more because the costs were extremely high at the start of the budget cycle. In the first quarter, the fuel cost for its buses was $140,000. Last year the district spent $483,000.
When agencies created their budgets several months ago, fuel prices hovered around $4 a gallon, a figure used in the budgeting process.
Churchill County Comptroller Alan Kalt said the current gas prices may not reflect prices in the future.
He said the recent savings could be used from other budgeted items increasing in price and can also be used to offset revenue streams yet to come in.
“It’s a little premature to think that these prices will stay down,” Kalt said, adding he doubts fuel will stay at about $2 a gallon.
“Are we going to have $50 barrels for a length of time?” he asked rhetorically.
The lower gas prices may lead to increased excise taxes the county receives since more people may drive more now than in the past few months. For every gallon of gasoline sold, the county receives 9 cents.
Kalt said the county is cautionary optimistic, noting fuel prices are determined by supply and demand.
“In my own prediction, we are not going to have $2 (a gallon next) July,” he said. “I doubt it (will not increase).”
On a positive note, he said, the low fuel prices are a bright sign in this struggling economy. He added certain services, such as the food industry, may lower prices since they are paying less in transportation.
Fallon City Clerk Gary Cordes said lower fuel prices have given the city some relief, but he won’t know to what extent until spring.
Cordes said the city saves a lot of money on trips to the landfill, and added since officials knew the vehicles needed to use a lot of fuel, the decision was made to make fewer trips.
Cordes said the city never anticipated fuel prices dropping to this level when the final budget was made. Any funds not used stays with the city for future use, Cordes said.
“If we over estimate or under estimate, the money is not swept away,” he said. “It stays in the big banking account.”
The city clerk said things may happen in the future to cause fuel prices to skyrocket, so the city must wait to see if fuel prices remain low. He added there are services the city must provide, regardless of the cost, including sanitation and law enforcement.
“We budget on a long-term basis,” he said.
The Churchill County School District is saving about $230 a day on fuel costs for its buses, said Transportation Manager Gregg Malkovich.
He said the buses, traveling 1,500 miles a day, get six to eight miles per gallon and the fleet uses 187.5 gallons per day. He said in May the district paid $3.48 a gallon compared to the $2.19 it now pays.
While the low prices are a relief, Malkovich said there is no way to know what the prices will be like in the future.
Lynn Broyles, director of business services for the CCSD, said the district expects fuel usage to consist of 45,000 gallons of diesel and 15,000 gallons of gasoline. Most of the buses use diesel fuel. She said the average price the district paid per gallon for the 2007-2008 fiscal year was $2.98 for diesel and $3.18 for gasoline.
Broyles said if the CCSD projects diesel and gasoline averages at $2.50 per gallon for the year the cost would be $201,650. Currently, the budget for fuel is $240,000. She said the budget was prepared in June before fuel costs started to fall, and the district does not know if gasoline costs will increase.
Fernley City Manager Gary Bacock said there are many positive impacts with fuel prices decreasing. He said the budgeted fuel costs would be extremely hard to calculate since they are divided into numerous departments.
However, he said it is hard to determine if there are going to be any savings for the city because budgets are done on an annual basis.
Bacock said most savings the city might see is from its public works department because employees travel long distances to all parts of the city. He added Fernley may not see any savings because when the budget was prepared in January, fuel prices were skyrocketing, so the current decrease in costs may be offset by that increase.
Fernley also receives about $1 million a year on excise taxes from gasoline purchases based on consumption. He said lower prices could mean either more or less usage. Lower prices may mean people drive more, but they do not need the same amount of fuel.
“Generally, for the economy it’s good,” Bacock said.
Wade Johnson, comptroller for the Lyon County School District, said the district will ask for more money for fuel when amending its budget.
He said LCSD budgeted $500,000 for fuel and thinks it will need more because the costs were extremely high at the start of the budget cycle. In the first quarter, the fuel cost for its buses was $140,000. Last year the district spent $483,000.
