The URL can be used to link to this page

Home My WebLink About101006 FUEL BUDGET DRIVER (2)Fuel and Energy Fuel and Energy Budget Drivers Budget Drivers FUEL & ENERGY BUDGET FUEL & ENERGY BUDGET DRIVERS DRIVERS PURPOSE:Awareness and Information PURPOSE:Awareness and Information BACKGROUND:Trends BACKGROUND:Trends ISSUES: ISSUES: RESPONSE: RESPONSE: FY 2008 Major Categories FY 2008 Major Categories $863.5M $863.5M Reserves 8% Debt Service $72M* * Includes $45.8M = 11% rollover compensation $299M $95M Capital $6M 1% Personnel 45% $392M $299M Operations 35% ReservesPersonnelOperationsCapitalDebt Service FY 2008 City Operations $ 299.2M Land Structures, 1% Leases & Rentals, 2% Other, 7% Capital Projects, 16% Supplies, 8% Depreciation / Bad Debt, 0% Tax Exempt Programs, 3% Contrib. Health Dept. & HRT, 3% Professional Travel, 1% Telecommunications, 1% Postal Services, 1% Contractual Services, 34% Water & Sewer Services, 9% Fuel, 2% Natural Gas & Heating, 1% Electrical Services, 4% Internal Services, 9% FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER TRENDS TRENDS Growth in cost has been from increased cost Growth in cost has been from increased cost of oil of oil Usage in total reflects little change Usage in total reflects little change Oil prices have declined in recent weeks Oil prices have declined in recent weeks Use of alternative fuels Use of alternative fuels FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER BACKGROUND AND TRENDS BACKGROUND AND TRENDS Fuel –Gasoline and diesel fuel for fleet Fuel –Gasoline and diesel fuel for fleet City currently utilizes small numbers of City currently utilizes small numbers of Compressed natural gas (5) Compressed natural gas (5) Hybrids (8) Hybrids (8) Electric (1) Electric (1) City fleet size City fleet size 20013,735 20013,735 20063,789 20063,789 FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER 4,000,000$5,500,000 3,800,000 $5,000,000 3,600,000 $4,500,000 3,400,000 $4,000,000 3,200,000 Gallons Dispensed 3,000,000$3,500,000 Total Charges 2,800,000 $3,000,000 2,600,000 $2,500,000 2,400,000 $2,000,000 2,200,000 2,000,000$1,500,000 2001/022002/032003/042004/052005/06 Gallons 2,146,803 2,329,632 2,548,242 2,420,452 2,282,449 Cost $2,054,173 $2,623,038 $3,098,960 $3,911,821 $5,049,351 FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER ISSUES ISSUES Unpredictability of oil market Unpredictability of oil market New fuels not necessarily proven or easily New fuels not necessarily proven or easily available available Continuous review of operational practices Continuous review of operational practices FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER RESPONSE RESPONSE Automotive Services Customer Advisory Group reviews Automotive Services Customer Advisory Group reviews operational practices operational practices Group to review utilization of vehicles Group to review utilization of vehicles Possible fuel savings Possible fuel savings Reduced replacement cost Reduced replacement cost Goals for usage –City/Departments Goals for usage –City/Departments FUEL AS BUDGET DRIVER FUEL AS BUDGET DRIVER RESPONSE Continued RESPONSE Continued Purchasing hybrids; expect to expand in future; life cycle cost Purchasing hybrids; expect to expand in future; life cycle cost Follow experience of other cities in use of other fuels (eg Follow experience of other cities in use of other fuels (eg biodiesel) for one year before recommending actions biodiesel) for one year before recommending actions Options for purchasing practices Options for purchasing practices Fuel efficiency ratings Fuel efficiency ratings Crash impact studies Crash impact studies OPIS pricing for fuel OPIS pricing for fuel ENERGY AS A BUDGET ENERGY AS A BUDGET DRIVER DRIVER THREE MAJOR TYPES OF ENERGY USED THREE MAJOR TYPES OF ENERGY USED Excludes gasoline, other fuels Excludes gasoline, other fuels Electricity Electricity Natural gas Natural gas Heating oil Heating oil ENERGY AS A BUDGET ENERGY AS A BUDGET DRIVER DRIVER SCOPE SCOPE Square footage of City buildings Square footage of City buildings 19901,539,553 19901,539,553 20063,296,466 20063,296,466 ENERGY AS A BUDGET ENERGY AS A BUDGET DRIVER DRIVER Age of buildings Age of buildings 0-10 Yrs, 45 > 30 Yrs, 134 11-20 Yrs, 63 21-30 Yrs, 37 0-10 Yrs11-20 Yrs21-30 Yrs> 30 Yrs EFFECTS OF ELECTRICTY EFFECTS OF ELECTRICTY DEREGULATION DEREGULATION FY 2007/08: FY 2007/08: BudgetRevised NeedIncrease Buildings$3.8M$4.8M$1.0M Street Lights$5.1M$5.9M$0.8M Pump Stations$1.8M$2.1M$0.3M $2.1M FY 2011/12: FY 2011/12: Total Deregulation Implemented Total Deregulation Implemented Expected 50% +/-Increases Expected 50% +/-Increases ENERGY AS A BUDGET ENERGY AS A BUDGET DRIVER DRIVER Electricity Electricity 150$5.0 $4.8 140 $4.6 130 $4.4 120 KWH (in millions) Cost (in millions) $4.2 110 KWH (in millions) $4.0 Cost (in millions) 100 $3.8 90 $3.6 80 $3.4 70 $3.2 60$3.0 2000/012001/022002/032003/42004/52005/6 KWH 69.766.1 64.8 69.266.5 76.5 Cost $3.2 $3.5 $3.6 $3.6$3.7$4.2 ENERGY AS BUDGET ENERGY AS BUDGET DRIVER DRIVER Natural Gas Natural Gas $1,600 190 $1,400 170 $1,200 Decatherms (in thousands) Cost (in thousands) 150 $1,000 Decatherms (in thousands) Cost (in thousands) 130 $800 110 $600 90 $400 70$200 2000/012001/022002/032003/42004/52005/6 Decatherms73 92 99 9496 131 Cost $406 $520 $710 $797 $1,010 $1,481 ENERGY AS BUDGET ENERGY AS BUDGET DRIVER DRIVER Heating Oil Heating Oil 140 120 100 Gallons (in 80 thousands) Cost (in 60 thousands) 40 20 0 2000/012001/022002/032003/42004/52005/6 Gallons 125 75 89 896 0 Cost $100 $42 $97 $100 $18 $0 ENERGY AS BUDGET ENERGY AS BUDGET DRIVER DRIVER ISSUES ISSUES Many buildings not designed with energy Many buildings not designed with energy efficiency as goal efficiency as goal Many aging buildings Many aging buildings Growth in City facility space Growth in City facility space Volatile energy market Volatile energy market ENERGY AS BUDGET ENERGY AS BUDGET DRIVER DRIVER REPONSE REPONSE Taking long-term, sustainable approach Taking long-term, sustainable approach Looking closely at specs for new buildings Looking closely at specs for new buildings Energy audits Energy audits Energy conservation team/seek input Energy conservation team/seek input Seek funds to implement audit Seek funds to implement audit recommendations recommendations Promote energy awareness Promote energy awareness Lock in natural gas prices Lock in natural gas prices ENERGY AS BUDGET ENERGY AS BUDGET DRIVER DRIVER REPONSE REPONSE Standardize building temperatures/night Standardize building temperatures/night set-back set-back Improve control systems Improve control systems Ice storage/free cooling Ice storage/free cooling Double glaze windows Double glaze windows Equipment efficiencies Equipment efficiencies Questions Questions