The high costs of gasoline and diesel have not yet becomecritical factors in the operation of local government, butofficials said many city and county services are beginning to inchpast their fuel budgets at the halfway point of the 2008 fiscalyear.

While financial planners increased fuel budgets for the fiscalyear, the cost of fuel has risen beyond estimates made before FY2008 began on Oct. 1. The price increases have caused the extrabudgetary padding to be slightly exceeded.

“We had bumped the fuel budget up last year, expecting the priceof fuel to increase. But we didn’t expect it to go where it hasnow,” said Lincoln County Administrator David Fields. “Hindsightbeing 20/20, we wish we’d put another $20,000 in, then we’d beright in line.”

Fields said the Lincoln County Sheriff’s Department is 5.5percent over its $110,000 budget at the halfway point of FY 2008,while the supervisors are standing at 4.2 percent over.

City services are following roughly the same trend, with SolidWaste operating over budget at 9.18 percent, the Water Departmentat 4 percent, the fire and street departments at just over 3percent and the Brookhaven Police Department operating just underbudget at 48.29 percent, said city Public Works Director SteveMoreton.

Fields said the county would likely have to amend its currentbudget to make up the difference in the fuel budgets of LCSD andthe supervisors to see them through to FY 2009. However, thesituation is currently not critical.

He said at the current rate at which fuel has increased and isincreasing, the sheriff’s department’s 5.5 percent budgetexceedance is “not bad at all.”

“On our general fund, we’re looking at around $20,000 or lessfor fuel affecting us,” Fields said. “As we get near the end of theyear, we can find that amount out of a $6.2 million general fundbudget. If not, we can amend it or use any cash reserves onhand.”

As the cost of fuel continues to rise, Fields said the fuelbudgets for FY 2009 would be increased even more to compensate. Heanticipates around a $20,000 increase in the LCSD fuel budget -taking it from $110,000 to $130,000 – when the numbers are crunchedfor October.

In the meantime, Lincoln County Sheriff Steve Rushing said thedepartment was limited on ways to conserve fuel without sacrificingits responsibilities.

“It’s hurting us – we’re running a little over. But in our lineof work we can’t just quit riding,” he said. “We’re definitely notgoing to cut services or stop patrolling the county.”

Rushing said the department’s fuel woes were offset by somesmall savings, such as lower insurance and maintenance costs thisyear.

“We have some built-in areas of the budget, and if we save inone area, we save all over,” he said. “We’re saving in some otherareas to make up the difference. We’re not running out of gas ormoney or anything – it’s not a burden on us at this point. Yeah,it’s hurting us a little, but this isn’t the first time we’ve beenin this situation.”

County supervisors likewise have no choice but to take the highfuel costs in stride. For the supervisors, the prices affect morethan just their gas tanks.

“So many things relate to fuel prices, whether that be the priceof fuel itself, the cost of getting things delivered or the cost ofbyproducts like asphalt,” said District Four Supervisor Doug Moak.”The fuel budget is pretty much busted.”

Just as the sheriff’s department, the supervisors are affordedfew options for fuel conservation. Moak said he and his fellowsupervisors were keeping a close eye on their operations, trying toensure that no fuel, asphalt or other materials are wasted, all thewhile exercising prudence while ordering new supplies.

Other than that, there are few options.

“We have a responsibility to try to maintain our roads andbridges – pretty much what we do is necessary to do,” Moak said.”There’s not a whole lot of cutting back in that area.”

Currently, the supervisors’ situation is not critical, Moaksaid. Next year, however, a larger fuel budget will be needed.

“I’m starting to feel the pinch right now,” he said. “I’m notgoing to say it’s a crisis, but I can see that it will take somemajor adjustments to deal with it in the future.”

City officials are already thinking about such adjustments.

City Clerk Mike Jinks said the city’s fuel budgets would beexamined during a budget revision in June, and adjustments wouldthen be made if necessary. He pointed out that state law requireslocal governments to stay within their budgets.

So far, Jinks said, the situation is well under control.

“Most of our oil and gas accounts are running right at theirbudgeted amounts,” Jinks said. “Running 3 percent over right now -that doesn’t concern me at this point. We’ve got services toprovide, and we’re gonna provide those services.”

While most city and county services are running just beyondtheir fuel budgets, the Brookhaven Police Department has managed tocome in under at the halfway point of the fiscal year due to asmall collection of factors.

Jinks said the department has the largest fuel budget of all thecity services at $100,000 – an increase made to compensate for lastyear’s annexation. Extra policemen were hired and extra patrol carspurchased to meet the increased size of the city, but theannexation was finalized before the FY 2008 fuel began to beconsumed.

Basically, the department is still growing into its budget.

“We budgeted a whole year on those extra policemen, whereas allof them may not have started until the first of the year orafterward,” he said.

The county and city school systems are also spending big to keepdiesel fuel supplied to their bus fleets, but neither system ishitting the panic button.

Lincoln County School District Business Manager Cheryl Shelbysaid she configured the district fuel budget with a 25 percentincrease, and the school system is within its fuel budget.

The Brookhaven City School System – like most otherorganizations – increased its fuel budget but is running slightlyover regardless.

“We anticipated a fuel increase, but not quite the fuel increasewe’ve seen,” said Superintendent Lea Barrett. “We’re going to beover what we budgeted at year’s end, but we’re not going to bebroke.”

Just like the emergency services, the school systems also havelittle room to cut back on fuel use.

“We don’t have much choice – the buses have to run,” Barrettsaid. “We’re really just trying to be extra careful with the tripswe’re taking, but so many of the trips are tied to instruction orextracurricular activities.”

Barrett said the city school system is currently at $30,000 morethan at this time last year, and next year’s fuel budget may growby as much as one-third.

One way the Brookhaven School District – as well as the city andcounty governments – benefit amidst the towering costs of fuel isby utilizing the Fuelman system. Fuelman, established forparticipants through a state contract, provides a fleet card toallow buses, patrol cars and heavy equipment to gas up from asingle account.

“We’re paying wholesale costs with a fixed margin rather thanretail costs,” Barrett said. “Our fuel is federal excise taxexempt. We get a detailed printout on usage, and we know exactlyhow much fuel each bus is using.”

The Lincoln County School District does not use Fuelman, buttakes bids to purchase fuel in bulk.