ALL-STATE LIST
SCHOOL REGISTRATION
Creston duo Haylee LaMasters and Natalie Mostek among seven area all-state softball players announced this week. More in SPORTS, page 5A.
Registration at Creston Schools will be 7 a.m. to 7 p.m. Monday in the concourse at Creston Middle School, 805 Academic Ave. Registration for all students will be in the same area during these hours.
creston
News Advertiser WEEKEND EDITION
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FRIDAY, JULY 31, 2015
Ver Meer finalist for Newton police chief position
GAS PRICES: Who’s driving?
CNA photo by IAN RICHARDSON
The price of super unleaded fuel at the Casey’s on U.S. Highway 34 in front of Wal-Mart was at $2.72 this morning. This Casey’s is one of six in the town of Creston.
By IAN RICHARDSON
In southwest Iowa, fuel prices frequently differ from town to town. Why? Fuel experts weigh in.
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CNA staff reporter irichardson@crestonnews.com
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t’s Friday morning, and super unleaded fuel is $2.72 per gallon at the Casey’s on U.S. Highway 34 in Creston. At the Casey’s on Highway 25 in Greenfield, it’s $2.70. At Taygold Service Station in Clearfield, it’s $2.61. On any given day, a quick survey like the one above will show that not all gas prices in southwest Iowa are the same. But why are they different from town to town? The answer, according to those in the business, is a combination of ever-changing wholesale fuel prices and, of course, local competition. Casey’s General Stores, which owns six gas stations in Creston alone, has a company-wide policy to never be undersold on gasoline, said Brian Johnson, Casey’s vice president of finance. Since many Casey’s stores only refill their inventory every five or six days, Johnson said that gives the ever-fluctuating gas market a lot of time to change. Competitors may end up
with cheaper or more expensive fuel because of the timing of their shipments, even though they often receive s h i p ments from the same terminals as the competition. J o h n - Johnson son said s t o r e managers check competitors’ prices every day on their drive to work and their bank runs, constantly listening to what customers are saying to keep informed on the competition. While there is no set margin for any store, the corporation has an overall goal of 16.7 cents per gallon, Johnson said. A margin is what is added to the wholesale price plus the gas tax. To reach this goal would mean all of its stores combine to make 16.7 cents above the wholesale price plus the gas tax. Some of this margin, about 7 percent at the current $2.72 rate, then goes toward
credit card processing fees. More of it can go toward repairs and other related costs. Competition is a major variable, he said, because independently owned stores may keep a much lower margin, like 10 cents a gallon. That might explain why prices are different at a Casey’s in another town, he said. “We compete against single operators that have different philosophies,” he said. “If they’re cheaper than Creston, my hunch is there’s a competitor that they’re competing with.” Even if Casey’s is the only store in town, that doesn’t mean there isn’t competition. Johnson said people likely commute to work in another city where they will have another chance to buy gas. The prices must thus remain competitive. But Johnson said Casey’s will not sell gas for a loss unless there’s “a crazy gas war going on.” Darin Schlapia is one of those “single operators” that Casey’s competes with. As the branch man-
IN PERSPECTIVE Creston’s $2.72 per gallon gas price is currently right on the Iowa average of $2.72, according to the American Automobile Association (AAA). The national average is $2.665. A year ago, AAA reports that gas in Iowa averaged $3.39 per gallon. A week ago, the average was $2.756.
ager at Creston’s Farmers Cooperative, Schlapia gets his fuel from CHS Inc. The two main terminals his gas comes from, he said, are in Des Moines and Council Bluffs. Schlapia said prices in Creston often run about 10 cents a gallon higher than Des Moines stations, but he said it also costs Schlapia about t h a t much more to transport it to Creston from the Des Moines terminal. Setting prices in Creston, he said, is a balance to keep the price fair while remaining competitive with other gas stations in town and still having enough margin to cover related expenses. “We don’t want to jab our consumers, and we do want to make a little money,” he said. But Schlapia said pure profit isn’t necessarily the end goal at Farmer’s Cooperative. Through offering ethanol blends not available at most other stations, he said the co-op has a mission to support those who produce those products, as well as to simply provide its trucks and other customers with quality gasoline.
CNA photo by IAN RICHARDSON
Fuel prices are mainly a function of the wholesale price of gasoline and local competition, according to industry experts.
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Please see GAS PRICES, Page 2
Paul Ver Meer is one of four finalists for the Newton police chief position. Ver Meer is currently the Creston police chief. He’s been with the Creston Police Department for the past eight years. The oth- Ver Meer er three finalists include Newton lieutenants Rob Burdess and Wes Breckenridge along with Tennessee Senior Consultant Jon Fehlman. The interview process started Wednesday. “I’m really pleased with the four that we have,”
Newton City Administrator Bob Knabel said. Knabel said — following the interviews — candidates will be more thoroughly vetted for reference checks and other considerations. The process is expected to be completed in August with the city tendering an offer in mid- to late August. A transition date of Sept. 1 is expected. Retiring Police Chief Jeff Hoebelheinrich has been utilizing leave days since April 7 and a retirement date of August 31 is planned. Ver Meer was also a finalist for the Clear Lake police chief position in June. (Jamee A. Pierson of Newton Daily News contributed to this story)
Rainbow Park fountain repairs begin Monday By KELSEY HAUGEN CNA staff reporter
khaugen@crestonnews.com
The long-awaited restoration of the concrete fountain at Rainbow Park in Creston is scheduled to begin Monday. The project, which will cost about $10,000, has been paid for by Creston Parks and Recreation Department, Youth Answering the Call of the Community (YACC) and a South Central Iowa Foundation
grant. No taxpayer dollars will be used. The 20-foot high, 114-year-old water fountain began leaking substantially about three years ago. This caused the water bill to triple and forced the department to keep the fountain turned off, according to John Kawa, president of Creston Parks Board. Because the fountain holds historic value Please see FOUNTAIN, Page 2
CNA photo by KELSEY HAUGEN
The 114-year-old fountain at Rainbow Park in Creston has been leaking and in need of repair for more than three years. Work on the fountain, including the installation of a filtration system, will begin Monday and should be completed within a week, weather permitting.
Is Your Dog Cool? Join us for Dog Gone Rescue’s
Hot Doggie Wash! at Mckinley Park August 1st 10AM-2PM Shelter #2 - Between the Bear & Band Shell Each Groom $15 per dog Lunch $3 per plate