By Vic Monaco, Managing Editor
Worried about how many weekend rides you can afford to take to your favorite shore resort this summer, even with your four-cylinder car?
Imagine the financial impact of the current gas price crisis if you had about 150 vehicles, none of the them of the economy variety, that you had to keep on the road to provide such services as policing, trash pickup and Public Works functions.
Then again, as an East Windsor taxpayer, you may not have to imagine.
Because that’s exactly the situation facing the township and, to a lesser degree, the regional school district and the borough of Hightstown. And it could impact 2009 taxes and even the number of bus stops and field trips for schoolchildren.
”The rising cost of gas will certainly have a detrimental effect on municipal expenditures,” said Mayor Janice Mironov. “We may well experience an issue in terms of expenditures.”
Despite budgetary planning that currently has the township on track, having spent 32 percent of the $290,500 budgeted for gasoline through April, the mayor acknowledged that prices were lower at budget planning time. And she wouldn’t argue that the current situation could affect the 2009 tax rate.
”If prices continue to increase at this dramatic level, it’s fair to expect an impact on 2009 budgeting,” she said.
Mayor Mironov said township staff was recently asked to look at ways of reducing gas costs. Other possible actions to address any shortfalls, she said, would be budget transfers late in the year or even a rare emergency appropriation.
In Hightstown, the Borough Council approved a budget amendment this week. And while the primary reason was to reflect state aid, it also included a $6,000 increase for the purchase of gasoline and diesel.
”You saw the impact already this year,” Borough Administrator Candace Gallagher said of rising gas prices.
That’s not to mention the fact that this year’s budgeted figure for gas in the borough, which now stands at $70,000 (not including about $7,500 in the water and sewer budget), dwarfs the 2007 figure of $48,000, Ms. Gallagher pointed out.
And, she added, “We’re seeing higher fuel surcharges on chemicals and certain goods as a result of the gas prices. And it translates into the costs of providers’ goods.
”It’s not just the town that feels it; look at the grocery stories.”
Mayor Mironov spoke of similar surcharges along with higher shipping costs. But her best example of the gas price impact from other vendors involves annual bids for road salt. Last year, she said, the township paid $46 a ton, and the current price stands at about $70.
For the East Windsor Regional School District, some significant changes could be in store next school year as a result of gas prices, according to Superintendent Ron Bolandi.
”Obviously our budget is going to be off next year because gas inflation went way higher than we thought. We’re going to be about 50 grand off,” he said, while noting that $208,000 is budgeted for gas in the 2008-2009 budget. “If gas prices go to five or six dollars a gallon we’re going to have to look at curtailing some of our busing and pulling back some of our field trips.”
While not wanting to reduce stops, he said, doing so would save money by limiting starts, stops and the associated idling of 68 district buses. The district may also have to stop idling buses before drivers take to the roads.
”It may be colder in the morning in the buses,” he said.
In addition to the 68 buses, the district has 31 maintenance vehicles. All told, Mr. Bolandi said, the district uses about 60,000 gallons of diesel a year and about 26,000 gallons of unleaded gas.
Somewhat ironically, the service station run by the district and used by all three entities which has sparked so much recent controversy over its deficit is credited by all three with being of the most help at this critical time.
Mayor Mironov said that, as of May, unleaded gas was billed at $3.02 by the district, which represented a 40-cent-per-gallon savings over the average retail price. The diesel price at the station, $3.70, represented a 47-cent savings, she added.
That adds up big time for the township, which buys about 61,000 gallons of unleaded gas per year along with 35,000 gallons of diesel.
”The ability to purchase bulk gasoline and diesel for three public entities has resulted in a very significant savings for all three entities and obviously saves dollars for taxpayers,” Mayor Mironov said. “It’s a good example that working together … can result in a great financial benefit.”
The district and the two communities have been debating for months over a deficit at the Mercer Street fueling station, with the district admitting to billing mistakes but claiming East Windsor owes about $139,000 and the borough owes about $37,000.
Ms. Gallagher agreed with Mayor Mironov about the importance of the station, while pointing out that the borough purchased an average of 1,388 gallons of unleaded gas and 723 gallons of diesel per month from June 2007 through this May at the station’s discounted prices.
The borough has 47 vehicles and 17 pieces of heavy equipment. As most municipal duties, such as police and fire department work, require vehicles with big engines, only one borough vehicle has a four-cylinder engine.
Superintendent Ron Bolandi explained that the price is lower at the district-run station because the district doesn’t have to pay taxes on gas and diesel and often buys in commodity with other entities.
This past school year, East Windsor Regional made its purchases with other districts across the county. For the coming year, Mr. Bolandi said, the district is going to compare that process with soliciting its own bids nationally. One reason, he indicated, is that the difference between the prices it has been getting and retail prices has been shrinking.
”Our last delivery on June 9, we paid $3.59,” he said, while adding a familiar refrain: “It seems the gas companies are escalating their profit margins.”
