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The Honolulu Advertiser
Updated at 3:01 p.m., Sunday, July 27, 2008

Fuel costs wreak havoc on Maui County budget

By ILIMA LOOMIS
The Maui News

WAILUKU - Maui County departments are responding to the islands' soaring gas prices in ways that are not unlike what many Maui households are doing: car pooling, checking tire pressures and reducing unnecessary trips.

Gas and diesel for everything from garbage trucks to police cruisers will cost taxpayers at least $200,000 more this year than last year, The Maui News reported today.

The county budgeted $4.4 million for vehicle and equipment fuel in fiscal year 2009, a 4 percent increase from 2008 and a 15 percent increase from 2007. But the price of gas has gone up by 33 percent since February, said Finance Director Kalbert Young, and the 4 percent budget increase probably will not be enough for the fiscal year that's just four weeks along.

"Even if gas stays at the levels they are today for the next 11 months, we will likely need to take some drastic measures to preserve the amount of money we actually budgeted," he said.

Utilities and rent for office space are also going up as a result of higher energy costs, he added.

Mayor Charmaine Tavares started planning the annual budget last year, and gas prices rose far higher and faster than anticipated, Young told the Maui News.

Since revenues have already been set in the budget that went into effect July 1, departments would likely have to take money from other areas of their budgets to cover fuel costs if there's a shortfall, Young said. But he said departments would first look for ways to reduce their use of fuel.

"The first line of strategy is going to have to be conservation in the area of . . . controlling the use of county vehicles, and requiring department directors and managers to be more strict in how they manage the vehicles within their fleets," he said.

The mayor said she'd already ordered county workers to look for ways to use less fuel, such as by car pooling and restricting their use of county vehicles. She said she will meet with department heads in the coming weeks to develop more specific plans to conserve.

"We've asked each department to come up with a conservation plan that includes water, energy and gas," she said.

Public Works Director Milton Arakawa said he was looking for ways to do just that.

"We're trying to conserve our trips, car pool where necessary, keep our vehicles in good running condition and try not to waste our resources," he said.

Long term, the department is also looking to expand the number of hybrid vehicles in its fleet, he said.

Diesel prices have risen even faster than gasoline, making the department's heavy machinery more expensive to operate. The cost of asphalt, a petroleum-based product, has soared. Fuel-driven increases in shipping costs have caused prices to quadruple for some vehicle and equipment parts over the past year.

"It affects a broad range of our operations," he said.

Parks Director Tamara Horcajo said crews have cut back on watering because of the continuing drought, reducing the need for mowing and weed-eating, which saves some fuel.

To cut costs further in the year ahead, the department hopes to have maintenance workers spend less time driving from park to park.

"We are looking at where we can have our crews stationed more in our parks, with less roving," she said.

For now, she said, "We're doing small things like checking tire pressure, car pooling, setting meeting schedules a little differently" to reduce driving.

Wayne Boteilho, deputy transportation director, said the county has a fixed contract with Roberts Hawaii to provide Maui Bus service, so any increases in fuel costs must be absorbed by Roberts. The 2009 contract includes an option to extend the contract for up to four years, with a 5 percent increase in funding each year pending approval by the Maui County Council.

The Department of Water Supply also manages a fleet of vehicles it uses to send workers into the field to make repairs, respond to trouble calls and make routine checks of the system.

Water Director Jeff Eng said he was breathing easy for the moment, as he was working off a new budget with a bump for fuel.

But he was all but certain that before the year was out he'd have to find money from another part of his budget to cover a shortfall.

"It was a significant increase, but probably not significant enough, is my concern," he said.

For more Maui news, visit www.mauinews.com.