Submitted By: Christina Guy
presenter
Presentation By: John King
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Department: Fleet
STAFF RECOMMENDATION (Motion Ready):
title
Adopt Budget Resolution 2025-170 to amend the Fiscal Year 2024-25 budget to transfer funds from the General Fund Reserve for Contingencies account to cover a projected deficit in the Fleet Management account in the amount of $395,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Fleet Management is experiencing an unanticipated budget deficit, primarily due to a significant escalation in the cost of automotive parts and supplies. This rise largely stems from recently imposed tariffs by the current administration on imported goods, which have significantly affected the automotive supply chain. These tariffs, particularly the 25 percent levy on imported auto parts, have driven up the cost of essential components necessary for vehicle maintenance and repair.
FINDINGS AND CONCLUSIONS:
Fleet Management has made continuous efforts to source domestic suppliers and implement cost-control measures. However, the integrated nature of the global automotive supply chain has also increased the cost of domestically manufactured parts and supplies.
Fleet Management anticipates a $395,000 shortfall for the remainder of Fiscal Year 2024-25. The operating supplies (and parts) original budget was $960,000. The additional $395,000 is crucial for covering anticipated expenses and ensuring the uninterrupted operation of essential services. Without it, the department faces delayed vehicle maintenance, reduced fleet readiness, and a negative impact on critical public services.
FISCAL IMPACT:
A transfer from the General Fund Reserve for Contingencies account 001-099-999-513-81-99800 will cover the requested amount of $395,000. The attached budget resolution allocates funding to the appropriate accounts to facilitate this budget transfer.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
N/A
ALTERNATIVE:
• Adopt with Changes
• Table
• Deny
BUDGET RESOLUTION 2025-170
A RESOLUTION AMENDING THE FISCAL YEAR 2024-25 BUDGET TO TRANSFER FUNDS FROM THE GENERAL FUND RESERVE FOR CONTINGENCIES ACCOUNT TO COVER A PROJECTED DEFICIT IN THE FLEET MANAGEMENT ACCOUNT IN THE AMOUNT OF $395,000
WHEREAS, the global automotive supply chain has significantly increased the cost of domestically manufactured parts and supplies; and
WHEREAS, Fleet Management is experiencing an unanticipated budget deficit, due to a significant escalation in the cost of automotive parts and supplies; and
WHEREAS, to ensure the uninterrupted operation of essential services, an additional $395,000 is needed to cover anticipated expenses.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, duly assembled in regular session, that the Fiscal Year 2024-25 budget be amended as outlined below.
SOURCE:
001-099-999-513-81-99800 Reserve for Contingencies - General Fund ($395,000)
USE:
001-025-523-519-51-52010 Fleet - Operating Supplies - Other $395,000
This resolution adopted this ______ day of ______________________, 2025.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Kristen M. Dreyer
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Reviewed for accounting accuracy & completeness:
By: _________________________________
Peter A. Lee
City Manager