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Public Works <br /> Maintenance Division <br /> <br /> MEM~RA1~T71TT1~R City of Eugene <br /> 1\ JJ V ~1~'1l 1820 Roosevelt Blvd. <br /> Eugene, Oregon 97402 <br /> (541) 682-4800 <br /> (541) 682-4882 FAX <br /> To: Fleet Board <br /> From: Carlos Davis <br /> Manager, Fleet & Radio Comm. Services <br /> Subject: Fleet Services Fund (619) FY05 Budget Deficit <br /> Date: September 4, 2003 <br /> Background: <br /> The Fleet Services Division provides for the operation, maintenance, and replacement of the City of Eugene's fleet. <br /> In FY-98 Fleet rates were reduced by 10 percent and held constant until FY-03. These reductions, combined with <br /> inflation, have reduced Fleet's balance available below required levels. The FY-04 Fleet budget represents funding <br /> the total of city's fleet expenses without the use of balance available and meets the goal of having "expenses =rates <br /> = budget." <br /> The FY-04 O&M Rates were set based on increased fuel, PERS, and Risk Insurance costs, with no service level or <br /> FTE increases. The General Fund O&M vehicle rates were calculated to fully recover actual expenses plus marginal <br /> increases mentioned earlier. A shortfall of $313,000 in General Fund departments resulted in a one time transfer of <br /> $300,000 to ensure that General Fund fleet "expenses =rates =budget." <br /> During the past few months, the Fleet Board and their fmancial analysts have met to examine the Fleet Budget, <br /> Rate Calculation, and Fleet Replacement process. The purpose of this group was to determine how to fund the <br /> FY-OS projected expenses without a General Fund subsidy or transfer. During these meetings, vehicles utilization <br /> was examined and showed that based on miles driven or hours used, some vehicles appeared to be underutilized. <br /> Solutions discussed for correcting the funding shortfall ranged from looking at fleet reductions and/or <br /> implementing a central motor pool to improve utilization and have other departments share costs. <br /> General Fund Reduction Detail: <br /> To provide for a more efficiently operated fleet and to completely fund "expenses =rates =budget", we request that <br /> General Fund departments complete the attached reduction scenarios to meet the FY-OS projected shortfall. <br /> This is where your input on reductions will go in the report to budget committee. <br /> Dedicated Fund Reduction Detail: <br /> Dedicated funds are requested to review their attached utilization report for possible reductions and/or equipment <br /> that can be better utilized in a motor pool function. Please identify special emergency response or special use <br /> equipment that have limited usage but are critical for city emergency management or special department operations. <br /> Deadline: Close of Business August 8, 2003 <br /> Send Reponses To: Carlos.a.davis(a~ci.euSene.or.us and Christy.l.homan(a),ci.euEene.or.us <br /> <br />