Low gas prices a boon to county

The glut of oil on the global market has led to dramatically lower gasoline and diesel prices, a boon to both individual consumers and those with large fleets of vehicles.

Fuel costs are a big expense for Flathead County, which budgeted $1.76 million this fiscal year for gas, diesel and oil.

Flathead County Public Works Director Dave Prunty says the county’s Road Department could save about $158,000 during the first half of 2015 if gas prices continue at an average price of $1.88 per gallon.

“There is a sizable amount of potential savings,” he said. “The drop has been good. It’s darn sure going to help.”

How much fuel the county uses each year can depend on how much snowplowing or road maintenance is needed. Prunty said his savings estimate assumes the department will use about the same amount of gas and diesel fuel during the first half of 2015 as it did during the first six months of 2014.

Whether gas prices will remain at less than $2 per gallon is uncertain, however. Prices have declined for 123 straight days, bottoming out at a six-year low last week. Some petroleum industry analysts predict prices could increase — at least moderately — as the summer driving season approaches.

The Road and Bridge Department and the Solid Waste departments are the biggest fuel consumers at the county. Those departments stand to see sizable savings if the low fuel prices continue.

County administrator Mike Pence expects to see some guesswork about future fuel expenses as the county begins its budgeting process for the 2016 fiscal year.

“We’ll ratchet numbers down, and I assume there might be some ratcheting back up,” he said. “We’ll be able to see where things are at before we adopt a final budget.”

Money saved from lower fuel costs stays in each department’s cash balance, Pence said. Department heads have authority over their budgets, except for personnel services and capital project expenditures.

“Everything over $5,000 and has a life span of five or more years is considered capital,” Pence said. But the county doesn’t spend savings from lower fuel prices “just because it’s there,” he noted.

“We plan ending balances as part of next year’s expenditures,” he said.