The downturn of the oil and gas industry is dealing an ongoing economic blow to La Plata County, but there’s an upside: Schools and governments are paying less to fuel up.
According to AAA, the average national gas price in 2014 was $3.34 per gallon, which fell last year to $2.40, reflecting the second-cheapest fuel prices in a decade, behind 2009. The Durango area has generally kept in stride with the trend, averaging about $2.72 midway through last year, alongside the nation’s $2.75 average. Today, the area is just above the $1.72 state average, with most local gas stations offering unleaded fuel at $1.74 per gallon, according to Gasbuddy.com.
The average U.S. consumer saved an estimated $550 to $700 last year on gasoline. For local governments and schools, the savings ran into thousands of dollars.
Durango city departments collectively purchased 187,436 gallons of fuel in 2014, spending $530,631. In 2015, they purchased 204,022 gallons, spending $400,603. Savings amounted to $130,028.
Durango Transit and Durango Police account for most of the city’s fuel expenses.
Transit used 69,718 gallons at $189,849 in 2014, compared with 69,603 gallons used for $144,399 last year.
The Police Department, which has a 30-vehicle fleet and did not expand in 2015, used less fuel than it did in 2014. It spent $61,347 for 29,885 gallons in 2014. In 2015, it used 19,612 gallons for a cost of $30,504.
In 2014, at an average fuel price of about $3, La Plata County departments used 223,353 gallons, spending $670,401. In 2015, when the average price of gasoline fell about a dollar, the county used 243,475 gallons at a cost of $498,715, resulting in savings of $171,686.
County public safety saw its fuel expenses drop by almost $77,000, while the road and bridge departments’ costs dropped by about $44,500. But the county contract pricing for fuel is variable, Finance Director Diane Sorensen said. The county uses an index so it can manage the commodity.
Officials also say efficiency improvements are a factor in their savings.
“It’s important to note that in 2013, we underwent some energy-efficient upgrades, including updated boilers, updated reusable nonpotable water systems for watering, low-flow toilets and energy-efficient lighting, which has also saved the district significant dollars since the completion of that work when it comes to utilities,” Sorensen said.
The county was unable to break out the totals by building, but heating costs were down last year by $22,609 compared with 2014.
Bayfield Town Manager Chris La May reported Bayfield purchased about 15,000 gallons of gas for a cost of $49,142 two years ago compared to 14,155 gallons in 2015 for $33,360.
Savings of about $15,500 went back to the city’s reserve fund.
“The drop in gasoline prices has greatly benefited the community, enabling the town to continue to provide its current level of service,” La May said.
The town of Ignacio also purchased more gallons last year for about $6,000 less: in 2014, the town purchased 9,251 gallons at $27,609 and in 2015 purchased 9,963 for $21,511. Fuel prices varied, but the average Ignacio paid two years ago was $2.99, compared to $2.16 last year.
School districts also reported savings, though factors apart from lower fuel costs play into that. Officials emphasized that the savings are just that – not a budget increase – and is directed to other costs brought by inclement weather.
“Most of our fuel is spent at the end of the year with field trips and such,” Durango School District 9-R spokesperson Julie Popp said. “Additionally, we have had less fuel usage this year also due to bus cancellations and fewer routes being run as a result.”
The district has seen a reduction in heating costs – gas for January this year was $21,969 compared with $37,393 for the first month of 2015, reflecting a 41 percent savings.
Needham Elementary School had some of the biggest savings. More efficient boilers were installed there, and that reduced the gas bill by 54 percent compared with the past school year.
Bayfield School District also saved an estimated 10 to 15 percent last year, but district Finance Director Amy Lyons said costs directed to snow removal canceled out any savings.
“There are a lot of factors based on trips and transportation,” Lyons said. “I’d say we break even.”
jpace@durangoherald.com
Savings by the gallon
La Plata County
2014: 223,353 gallons for $670,401
2015: 243,475 gallons for $498,715
Durango
2014: 187,436 gallons for $530,631
2015: 204,022 gallons for $400,603
Durango Transit
2014: 69,718 gallons for $189,849
2015: 69,603 gallons for $144,399
Durango Police
2014: 29,885 gallons for $61,347
2015: 19,612 gallons for $30,504
