6.3 Hoosier County Road Department
Let us consider the Hoosier County Road Department whose mission is to maintain the county’s roads (see Hoosier County Road Department video). All personnel work full time and 225 days per year. The personnel maintaining the roads cost $74,000 per employee per year. That amount includes the salary and fringe benefits. There are two types of roads in the county, i.e., gravel roads (80 miles) and paved roads (185 miles). The state reimburses the county with $6,250 and $10,200 per mile of gravel road and paved road, maintained. Below is a summary of the activity and cost information that was put was compiled.
| Gravel | Paved | Total | |
|---|---|---|---|
| Supplies expenditures | $41,000 | $180,000 | $221,000 |
| Miles Repaired | 80 | 185 | 265 |
| Cost per Mile | $513 | $973 | |
| Personnel (FTE) | 4 | 5 | 9 |
| State reimbursement per mile | $6,250 | $10,200 | |
| Productivity (miles/person/year) | 20 | 37 | |
| Maintenance employee salary | $74,000 | $74,000 | |
| Director’s salary | $96,000 | ||
| Assistant’s salary | $61,000 | ||
| Equipment lease: Rate/month | $6,250 | $9,750 | |
| Equipment lease: Rate/mile | $725 | $1,100 | |
| Maintenance facility | $210,000 |