Back in July, South Metro cities were doing everything that they could think of to reduce the financial burden that high fuel prices were causing. Now it’s late December and the price of a barrel of oil has plummeted to lows not seen for several years (it was $1.499 today near Cedar/Cliff in Eagan) and according to an article in the Star Tribune, South Metro cities are taking advantage of those low prices to lock their bulk fuel purchases in at low cost.
With some cities saving nearly 50% of their budgeted fuel costs, they expect this to help with the loss in state aid that is expected, especially after the governor stated that he’s looking into such options as privatizing parks, toll roads, and even the lottery (thanks go out to mediation for the link).
According to the Star Trib article, several South Metro cities are taking advantage of this group buy-in including Eagan and Burnsville. Missing from the list seems to be the city that raised taxes the highest in the South Metro while doing nothing to minimize budget expenditures — like fuel. Just because the article didn’t include Apple Valley doesn’t mean that they aren’t doing anything to try and save on fuel costs but being that their minutes are so thin and their lack of planning for any other budgetary savings is so lame, I wouldn’t be surprised if they’re just going to ride it out and see how well that does for the city. After all, the taxpayers could just cover the losses after another round of increases — hey, your house is devalued, so it shouldn’t bother you any, right?
Personally, I want to see more being done to limit fuel expenditures. Now that the prices being locked in are so low (some as low as $1.439 for unleaded fuel), I hope that South Metro cities are continuing the practice of “green initiatives” ramped up this summer such as driving less, using more human power, etc. Only time will tell but I have a feeling that all of that will get thrown out the window just like it has with everyone else — especially the news media.
I find it awfully convenient that this news came out after the levies were raised in the surrounding area. I guarantee if people had known that fuel costs were halved over last year that they’d be a little less likely to support such high tax increases.
How about you? Do you think that the green initiatives started last summer will continue with fuel prices so low or will the cities go back to their old ways and continue to dig into the wallets of the taxpayer to pay for their wasteful actions?
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December 28th, 2008 at 9:33 am
I’m not particularly worried about whether the cities will pass on the fuel savings, what I’m more interested in is the countless miscellaneous companies that raised rates and tacked on surcharges (airlines, garbage companies, power companies, etc), and whether they will be ending those fees.
I suspect not. Fees for checking even the first bag on NWA/Delta are likely here to stay.
December 28th, 2008 at 10:03 am
Steve, to me that’s a choice a private company is permitted to make on their own. If they want to price themselves higher, go for it. I don’t have to fly Delta and I can choose another transportation method to get me where I need to go. Unfortunately, I can’t really choose another place for my tax dollars to go :(
December 28th, 2008 at 10:14 am
I think the best way to maximize fuel savings is to build stores. A LOT of stores. A Target on every corner and 13 warehouse grocery stores in a 5 mile radius seems like a feasible solution to having to drive around wasting gas while looking for a store to pick up Doritos and Coca Cola.
December 28th, 2008 at 10:32 am
And Chili’s. Clearly, we can’t forget to build more Chili’s.
December 28th, 2008 at 10:37 am
AMEN SISTER!
December 29th, 2008 at 12:29 pm
Low fuel costs are a double edged sword. It saves everyone a buck but in the long run people will quickly forget that we were paying $4.19/gallon four months ago and in the end we’ll be to five bucks per gallon because people would rather focus on whether or not Britney SPears was wearing panties that remember that we got ass-raped by the oil companies. ANd one more thing on my long-winded rant, has oil consumption actually declined by 60% in the past 5 or 6 months? Dammit Bill, I want answers!
December 29th, 2008 at 1:22 pm
Sornie – I think we can safely assume Britney Spears was not/is not/will not be wearing panties.