The Department of Finance and Administration is the recipient of the latest Efficiency, Stewardship and Accountability award for their efforts in saving the City of Albuquerque upwards of $1 million.
September 14, 2012
ALBUQUERQUE, NM – The Department of Finance and Administration is the recipient of the latest Efficiency, Stewardship and Accountability award for their efforts in saving the City of Albuquerque upwards of $1 million.
In the December 2010 budget, fuel was estimated to average about $3.25 per galloon. Shortly after creating the budget the City’s fuel distributor informed the City of Albuquerque that fuel costs could actually reach $4.00 galloon in the next 12 months.
Mayor Berry then had to include a half-million dollar fuel reserve in the proposed budget in case the cost of fuel exceeded $3.25 per galloon. Immediately a team of division managers in the Finance Department began to look into entering a contract that would cap the City of Albuquerque’s fuel expense at or below $3.25 per galloon.
Shortly after, this finance team was able to enter a contract that allowed the City of Albuquerque to cap fuel costs at $2.95. This was more than enough to free up the half million dollar reserve money and use it to create five library and five animal welfare positions, that otherwise would have been lost. The savings also generated an additional savings of $591,344 in the operating budget. This money was used to keep 15 firefighter positions that would have been lost from the transferring of Station 29 to the county.
All together this fuel hedge allowed the City of Albuquerque to save $1 million and reallocate the funds for other needed services and positions.