Rising gas prices playing havoc with government budgets

Gas prices that have seen each station in town exceed prices of $4 for regular and $5 for diesel are having a significant impact on local government budgets.

According to Mountain Home Mayor Tom Rist, the city's budget has been readjusted to reflect the high cost of fuel.

The city departments that are most affected by the gas increase are the Public Works Department and the Mountain Home Police Department.

The city police department runs a fleet of 12 Crown Victorias that average 15 miles per gallon each.

Typically, the department averages a little over 1,000 gallons of gas per month. Currently, the department has spent 99 percent of its gas budget for the fiscal year ending in September.

"We know we have to tighten our belt, and possibly get our fuel from other areas. I think we're doing our part and trying to be good stewards as well," said Chief John Walter.

The gas situation has changed the manner that other city departments operate.

Parks and Recreation Director Stan Franks has requested that his employees have all of their equipment ready, so they don't have to make constant trips.

And both the city Public Works Department and the Mountain Home Highway District have had their budgets seriously impacted due to the high cost of fuel, because almost every project they do is tied to fuel or oil in some way.

The cost of asphalt products have more than doubled in the last three years (asphalt is produced in part from oil). As far as maintenance, a seal coat three years ago cost $10,000 per mile. Now the same seal costs around $22,000.

But it's not just costs, either. Most of the Mountain Home Highway District's revenue comes directly from fuel taxes, which district officials expect will decline as vehicle owners make efforts to limit their use of fuel.