The Best Kept Secret in Local Government Budgeting
Fuel Budgeting Program
The fiduciary responsibility for tax dollars is central to your mission as a unit of government. When it comes to predicting budget expenses, that task may feel overwhelming. We live in a world of volatile events, where even the smallest occurrence on the other side of the world can impact Indiana. Particularly with the fuel needed to run key vehicles. With risks everywhere that are out of your control, where can you turn? Thankfully, the Indiana Bond Bank (IBB) has a tool specifically designed to protect your fuel budget against volatile prices. In these times of uncertainty, protecting your fuel budget is more important than ever. Why set your budget up for a headache when you can set it and forget it?
What makes us different
- You reach out to the Indiana Bond Bank to talk about your fuel budgeting needs.
- You request an application and a list of financial documents required for submission.
- The Indiana Bond Bank will send you all the legal documents needed for local approvals..
- The Indiana Bond Bank will monitor the market and select the hedge structure best for that particular year.
- As the closing date approaches, the Indiana Bond Bank will request your authorization to close on the hedge within certain pricing parameters.
- The Indiana Bond Bank closes on hedge transaction and notifies you of protection start date and final parameter numbers.
I have worked with the Indiana Bond Bank in many capacities over my career. Most recently has been with annual use of the IBB Fuel Program covering the past 12 years. We have found that the program works very well for us as a fuel budgeting tool to help keep our budget stable when fuel prices take large jumps. The program is very easy to work with and is a wonderful stabilizing budget tool for a cost item that we cannot control.
We have answers! If not covered here, please reach out.
If I participate in the Indiana Bond Bank’s (IBB) Fuel Budgeting Program (the “Fuel Program”), where would I purchase my fuel?
There is no change to how you purchase fuel. The Fuel Program is a financial instrument only. You may purchase and pay for fuel from any vendor.
What are the advantages of using IBB’s Fuel Program?
The Fuel Program acts like insurance for your fuel budget. It is designed to protect your budget from rising fuel prices, and provides flexibility in setting this protection. Additionally, the IBB is transparent in the costs of its program. Other fuel providers (i.e. jobbers) may charge hidden costs when they fix fuel prices.
Will the IBB audit your fuel consumption?
No, the IBB does not need your actual receipts of the fuel your consumed.
Stay up to date important updates and announcements on the program.
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