Houston fleet director presents $113.7 million FY27 budget, cites mechanic shortage and fuel-card fixes

The City of Houston's fleet director presented the department's proposed $113,700,000 operating budget for fiscal year 2027, saying the plan includes the elimination of 26 positions and a suite of cost-cutting steps to address labor shortages and rising service costs.

Director Gary told council members the department is aligning fleet work with the city's infrastructure priorities and expects the FY27 request to cover labor, supplies, services and fuel. "So for fiscal year 27 we're eliminating 26 positions and cutting supply expenses for a savings of $2,400,000," the director said, adding that most of the vacancies targeted for removal were already unfilled and that 20 of the positions are mechanics.

The department emphasized a staffing gap it said is severe: Director Gary noted an internal ratio that could reach about 80 vehicles per mechanic if every position were filled, compared with industry standards of roughly 37 sedans per mechanic and far smaller ratios for police, fire and heavy trucks. "It's obviously that we're desperately short of people," he said, arguing the shortage requires a strategic mix of in-house work and contracting.

The presentation included cost details and program shifts: labor would account for roughly 31% of budgeted operating costs while services and supplies make up the remainder. Non-personnel allocations include $28,600,000 for fuel, $22,000,000 for parts and tires and $14,000,000 for outside repair services. The director also said the department reduced its program count from eight to two as part of a reorganization prompted by staffing constraints.

To manage work demands, the department plans to contract the total operation of several enterprise garages (including airport garages) so mechanics can be redeployed to general fund garages. "We're going to focus our in house labor on work that is more costly to outsource and we'll send work out that can be performed by contractors at a lower cost," Director Gary said, noting contract rates vary from about $45 an hour for mower repair to $700 an hour for specialty crane repair.

Council members pressed the director on recruitment and compensation. Council member Martinez asked whether the vacancies are mostly mechanics; the director replied that about 20 are. On pay, the director said the top advanced-level mechanic rate will be roughly $35 an hour in the coming year and described outreach efforts with local schools and workforce programs to build entry-level pipelines.

Several council members focused on the fuel-card audit and controls. Council member Ramirez referenced a controller's audit of the fuel card program for fiscal years 2022'24 that flagged 11 findings, three rated critical, including records issues and weak transaction review. Director Gary said many findings were closed or addressed, that the department launched annual online training for fuel-card coordinators, and that the department recently reached an agreement with US Bank and Samsara to use GPS verification so the city can confirm which vehicle was at a fueling location.

Council member Flickinger raised concerns about shared card usage and the practicality of issuing cards to each employee; the director said issuing a card to every eligible employee would balloon the fleet card count from about 1,000 today to roughly 15,300 and would create substantial reconciliation workload given high staff turnover. He said US Bank is developing an ID-swipe capability at pumps so the city can verify both the vehicle and the employee at the point of fueling.

On audit follow-up, the director described new department-level monthly reconciliation checklists, spot audits and coordination with legal and information-technology partners to strengthen controls. "We reviewed everything. Everything looks good," a staff member said of the new checklist process, adding the department follows up with departments that fail to submit required monthly reconciliations.

A public commenter, Isaiah McSwain, urged improved unified dashboards and stronger in-house training pipelines to move entry-level hires to advanced mechanic status. The director acknowledged training as a top priority and said the department will accelerate development of junior mechanics and transition to paperless garage systems that include tablets and diagnostic support for non-English-speaking employees.

The presentation closed with council members thanking fleet staff. There were no formal votes taken during the workshop; council members requested follow-up reporting on the status of the audit findings and the department's progress on hiring and contract transitions.