Highway department anticipates cost savings from low gas prices

While low gas prices could mean a reduction in revenue for local governments, it could also mean significant cost savings, County Highway Superintendent Tim Hens said today.

Hens wasn't available last week when The Batavian provided an exclusive report on how falling gas prices means a reduction in sales tax revenue for local governments, but he did get back to us today about the cost side of the equation.

Hens says his best guess at this point is the county could see $75,000 to $100,000 in annual fuel spending savings.

That money will allow his department to replace aging equipment that might otherwise be deferred even longer.

Hens also anticipates a 20-percent reduction in the cost of asphalt, which would result in a cost savings of about $240,000, or rather, make it possible to buy more asphalt to cover more deteriorate roadways.

"That's a few more miles of paving that we wouldn't otherwise be able to do," Hens said. "We are about 26 miles behind on maintenance due to tight budgets and limited state and federal money, so this will let us play catch up a little bit."

Hens won't know the adjusted price of asphalt until April or May and said he's only making a guess at this point.

The county budgets $1 million for the purchase of unleaded and diesel fuel for its fleet of vehicles, which includes the highway department and Sheriff's Office.

Any savings this year would only be a one-time surplus, Hens noted.

While falling gas prices could mean people drive more, Hens said an uptick in travel would buck the trend from the past decade of falling fuel consumption. Less consumption has meant less money available from gas taxes for roadway construction and repair.