Submitted By: Christina Guy
presenter
Presentation By: John King
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Department: Fleet
STAFF RECOMMENDATION (Motion Ready):
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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
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