Fleet Budget 101

1. Fleet Budget 101 Mark Jerome Danny Brashear

2. Current FY Budget Highlight Examples • Completed expansion of the shop. • Reduced the cost of making new police vehicles ready for service by comparing in-house costs VS. contracting to a local vendor. 35% savings • Removed 5 underground Gas & diesel fuel storage tanks at Fire Station’s and other remote fueling locations. Why? Reduce liability from tank leaks, and high maintenance. • Removed 9 underutilized vehicles from fleet always saves $. • Introduced new 4 minute idling restrictions for 400 vehicles.

3. Budget Re-EstimateThis is a mid year budget review and adjustment. • Look at facts gathered from FASTER reports, such as report #305 work order billing charges summary. • Report #501 Billing history. • Compare to see if this current balance exceeds original budget amount projections

4. Next FY Proposed Budget • Meets target of $6,500,000. • Increased Fuel Account by $500,000 to offset rising fuel costs • Increased Contractual Repair Account by $10,000 to keep pace with vendor price increases • Review your account codes tab in System Settings application. If you set up your line items like (Parts #112, Sublet #221, Fuel) . Refer to handout example spreadsheet. • Run report 510 Equipment Financial History. This report provides a summary of billing charges by month, with total charges year-to-date and life-to-date. IT splits charges into labor, parts, sublet, miscellaneous costs, credits, fuel, total operating charges, mileage, fixed charges, replacement, and total equipment charges. Also, this report displays meter driven, plus operating and total cost per mile. NOTE: This report only displays data based on calendar year, not fiscal year.

5. Next FY Proposed Budget, cont. • There will be a excel spreadsheet in your workbook representing a running total of where you are when making projections for the new Fiscal year. • This information can be transferred from your monthly billing reports, or report 510

6. FUEL COST VS. FUEL COMSUMPTION • NOTE as consumption stays fairly level costs rise due to price increase. This is good justification for increases.

7. FLEET & EQUIPMENT SERVICES BENCHMARK SURVEY Area Municipalities Our Fleet Private Industry

8. FLEET FUEL FACTORS AFFECTING CONSUMPTION • Selectively manage the size/weight of equipment used for each job. • Age/condition of equipment on a job • Revise your specs as you review maintenance history.

12. V.E.U. to Technician Ratio

13. The formula we used to compile V.E.U.’s is, 1,806 vehicles & 2390 veu’s 60 vehicles with a V.E.U value of .5 (trailers and small equipment)=30 1290 vehicles with a V.E.U value of 1(23 hrs a yr) (basic sedans, lt trucks of all sizes)= 1290 315 vehicles with a V.E.U value of 2 (Patrol, Ambulances, etc.)=630 124 vehicles with a V.E.U value of 3 (Fire Pumpers, Solid Waste, heavy duty, etc.)=372 17 vehicles with a V.E.U value of 4 (Aerial Fire, large construction)=68 With 2,390 v.e.u’s and 28 tech’s = 85 V.E.U. per technician. Each Technician equates to, 1679 billable hours/23=73 or 31 techs needed

14. FY Budget Forecast • Cost of fuel is expected to continue increasing. • Hourly labor rate may need to increase $3 to $5 to keep up with inflation. • Expect an increase in fleet vehicle costs as a result of new Federal emission requirements.