TALLAHASSEE, Fla. – With gas prices less than $2 a gallon, city officials said the low prices have greatly benefited the city's fuel budget, which could eventually mean benefits for the taxpayer.
If the gas prices continue to lower, the city will use less money in its budget. The extra money will go into the city's reserve and be used for other services that benefit taxpayers.
The City's Fleet Management Division buys, disposes and repairs the city's 3,700 vehicles. Karim Kurji is the chief of fuel management and said those low prices have allowed the city budget millions of dollars less for fuel.
"This year our budget is $21.2 million, which is about $2 million less than last year, so we have anticipated some reductions on gas prices for this fiscal year, and hopefully this continues through the whole year and will have a lot of good savings with the city," said Kurji.
The fuel budget is in the first quarter, but if the trend continues into the summer months, taxpayers can reap the benefits at the end of the fiscal year.
The Fleet Management Division is not the only taxpayer-owned company saving money. Jacksonville Electric Authority's fleet management department is as well.
In 2013, JEA's fuel expenses were just over $5 million in comparison to the 2014 fiscal year of roughly $4.5 million, a decrease of more than half a million dollars in a year.
Kurji said if fuel numbers continue to fall, taxpayers could see benefits throughout other city departments.
"And like I said, if this continues next year we'll have a lower budget, which means we can use some of those monies from property revenue to other services throughout the city," said Kurji.
However, it's not known if there will be excess money to put in the reserve until the end of the fiscal year.