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Peoria approves $800,000 emergency transfer for fleet fuel and maintenance amid price spike
Summary
Public Works officials told council fuel-price spikes and high consumption left fleet with few reserves; council approved an $800,000 contingency transfer to fleet maintenance to cover diesel, unleaded and related tire costs.
Peoria's City Council on May 19 approved an $800,000 budget amendment to the fleet-maintenance account after staff warned that recent diesel and unleaded price spikes and routine consumption had nearly exhausted fuel reserves.
Director of Public Works Rhonda Humbles and Deputy Director John Fruden told council fleet runs its own fuel facilities and buys in bulk; sudden retail and wholesale price increases have driven up per-tanker costs and pushed the department to request additional contingency funding to cover purchases and related maintenance through the end of the fiscal year.
Fruden said the city consumes roughly 1,100 gallons of diesel and about 900 gallons of unleaded per day across operations and described steps the department uses to mitigate price volatility, including cooperative contracts and staggered buying. He said the city lacks large storage capacity and is unable to replicate a municipal tank farm like Phoenix's, so short-term purchases and cooperative agreements are the practical options.
Council asked whether the city can hedge or use futures contracts; staff said the city's buying arrangements and storage constraints limit long-term hedging and that joining cooperative purchasing pools remains the most reliable approach. Council voted to approve item 15R (passes 7-0).
