Town officials are waiting and watching to see how the rising cost of fuel will impact their bottom line.
Gasoline prices are approaching $4.60 per gallon and diesel has already topped $6 per …
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Town officials are waiting and watching to see how the rising cost of fuel will impact their bottom line.
Gasoline prices are approaching $4.60 per gallon and diesel has already topped $6 per gallon, while consumers are facing a tough winter with home heating oil prices rising more than 60 percent over the past month.
While both the town's municipal department heads and the school department are expecting changes, they will be insulated from some. From others? They're waiting to see.
None of the district's schools are heated with oil, superintendent Fran Roy said, so that won't be an issue. However, school department business administrator Michelle A. Rapoza said the district's contract with its busing contractor is, though she said the town is insulated from unexpected increases.
The department is in the third year of a three-year contract with the option to extend it another two years without rate increases. She doesn't know what will happen with the price of fuel going forward, but said there is a fuel clause in place that adjusts the district's price per gallon according to market conditions.
However, she said, "if we go over for the contract year due to the fuel clause, we have a revolving account that absorbs the fuel increase, so that does not impact the school budget."
On the municipal side, town administrator Chris Vitale said he is expecting small changes to the town's bottom line as prices continue to rise.
The town purchases all its fuel through a statewide contract that also includes other municipalities. Westport does not pay a fixed price — "our rate moves with the wholesale market. When the market prices rise, we also feel those increases."
The town's bill is broken roughly into two separate parts — the vendor portion which stands at roughly $13,500 this year and is made up of fixed fees, delivery and other services, and the wholesale, non-taxed price of fuel itself.
While Vitale said those fees and service cost won't change with the rising cost of fuel, the town will be responsible for paying higher rates for fuel as costs rise. Currently, he expects the differential to be around $5,000.