Finance staff: fuel and overtime tracking causing budget variances; federal reimbursements pending

Jenna, who presented the district’s Oct.–Dec. 2025 financial report, told the board that shifts in fleet fueling and new payroll tracking have produced budget variances the board should expect to see through the fiscal year.

“If you look at the supply section…our outside fuel cost exceeded the budget,” Jenna said, explaining that as the agency replaces diesel fleet with unleaded vehicles, drivers buy fuel in the field on purchase cards rather than fueling on-site. Jenna said staff will execute a budget transfer to move money from the diesel allocation to cover unleaded costs.

Jenna also said the new payroll system is now recording overtime as true overtime for the transit district rather than absorbing it in city accounts, which increases reported overtime expense this year. She cited timing as another driver of the current shortfall: two vehicles received in December cost roughly $117,000 (cited as $117,000 for the most recent vehicle), but related federal reimbursement had not yet been received and therefore is not recorded as revenue.

Why it matters: The budget variances are primarily timing and accounting changes rather than unexpected recurring expenses, Jenna said, but they affect the district’s short-term balance sheet and will require transfers or adjustments when reimbursements arrive.

The board moved and unanimously accepted the financial report. Jenna said staff will continue to monitor the fuel accounts and present recommended budget transfers when appropriate.