HomeMy WebLinkAbout304-24 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 304-24
File Number: 2024-0771
PURCHASED WATER ACCOUNT (BUDGET ADJUSTMENT):
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,326,000.00 FOR THE
PURCHASED WATER ACCOUNT DUE TO INCREASED WATER USAGE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of
which is attached to this Resolution, in the amount of $1,326,000.00 for the purchased water account due to increased
water usage.
PASSED and APPROVED on December 17, 2024
Page 1
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CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF DECEMBER 17, 2024
TO: Mayor Jordan and City Council
THRU: Susan Norton, Chief of Staff
FROM:
SUBJECT: Budget Adjustment for Purchased Water Account
RECOMMENDATION:
CITY COUNCIL MEMO
2024-0771
Staff recommends approval of a budget adjustment in the amount of $1,326,000.00 in the Purchased Water
account due to increased water usage, which is purchased from Beaver Water District.
BACKGROUND:
At the beginning of each budget cycle, the Utilities Department calculates the amount of money needed to
purchase water from Beaver Water District for the entire year. This is accomplished by looking into the water
usage history of the City in the previous year or years, and make some changes based on growth, climate and
non -revenue water loss.
DISCUSSION:
The amount of water purchased by the end of September 2024 is up by 17% compared to water purchased by
the end of September 2023. This increase in water usage is due to several factors but most notably is due to
increases in the cost of water above what was originally budgeted, and water loss due to leaks. The cost of
water increased by 8.5% in the latter part of 2024 rather than the customary 3% as it has been in the past.
Additionally, the number of leaks in the City's water distribution system have remained high at the end of
September 2024 and is comparable to what was seen at the end of September 2023.
BUDGET/STAFF IMPACT:
The funds for this Budget Adjustment ($1,326,000.00) will be withdrawn from the Utility's fund balance.
ATTACHMENTS: SRF (#3), BA (#4), 2024 Beaver Water Purchased Water Projections (#5)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
_= City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
- Legislation Text
File #: 2024-0771
Budget Adjustment for Purchased Water Account
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,326,000.00
FOR THE PURCHASED WATER ACCOUNT DUE TO INCREASED WATER USAGE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution, in the amount of $1,326,000.00 for the
purchased water account due to increased water usage.
Page 1
Tim Nyander
Submitted By
City of Fayetteville Staff Review Form
2024-771
Item ID
12/4/2024
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
12/4/2024 UTILITIES DIRECTOR (700)
Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of a budget adjustment in the amount of $1,326,000.00 in the Purchased Water
account due to increased water usage, which is purchased from Beaver Water District.
5400.720.3800-5312.00
Account Number
Project Number
Budgeted Item? Yes
Does item have a direct cost? No
Is a Budget Adjustment attached? Yes
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Water & Sewer
Fund
Project Title
$ 13,000,000.00
$ 11,857,105.00
$ 1,142,895.00
$ 1,326,000.00
S 2,468,895.00
Previous Ordinance or Resolution #
Approval Date:
V20221130
City of Fayetteville, Arkansas - Budget Adjustment (Agenda)
Budget Year Division Adjustment Number
UTILITIES DIRECTOR (700)
/Org2
2024
Requestor: Tim Nyander
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
Staff recommends approval of a budget adjustment in the amount of $1,326,000.00 in the Purchased Water account due to
increased water usage, which is purchased from Beaver Water District.
COUNCIL DATE: 12/4/2024
ITEM ID#: 2024-771
Kevin Springer
7717412024 5:49 PM
RESOLUTION/ORDINANCE
Budget Division Date
TYPE: D - (City Council)
JOURNAL#:
GLDATE:
CHKD/POSTED:
TOTAL
Account Number
1,326,000 1,326,000
Increase / (Decrease)
Expense Revenue
Project.Sub#
Project Sub.Detl AT
v.20241029
Account Name
5400.720.3800-5312.00
1,326,000 -
EX
Purchased Water
5400.720.4000-4999.99
- 1,326,000
RE
Use Fund Balance - Current
I of 1
2025 Budget Data - Projected Water Purchases
Indicates projected amounts
01 - January
02 - February
03 - March
04 - April
05 - May
06 - June
07 - July
08 - August
09 - September
10 - October
11 - November
12 - December
TOTALS
2023 % Chg
Gallons Rate Expense Gals
596,398
$1.46
870,741
5.34%
556,988
$1.46
813,202
6.66%
578,527
$1.46
844,649
4.82%
571,452
$1.46
834,320
4.67%
625,768
$1.46
913,621
5.28%
697,512
$1.46
1,018,368
4.17%
785,904
$1.46
1,147,420
-9.93%
860,955
$1.46
1,256,994
9.94%
789,032
$1.46
1,151,987
6.71%
726,212
$1.54
1,118,366
4.68%
647,131
$1.54
996,582
14.33%
637,920
$1.54
982,397
8.08%
8,073,799
$1.48
11,948,648
4.92%
2024 % Chg
Gallons Est % Est Rate Expense Gals
103,939
$1.54 1,084,066
18.03%
639,070
$1.54
984,168
14.74%
650,931
$1.54
1,002,434
12.52%
659,872
$1.54
1,016,203
15.47%
696,017
$1.54
1,071,866
11.23%
790,507
$1.54
1,217,381
13.33%
845,333
$1.54
1,301,813
7.56%
909,864
$1.54
1,401,191
5.68%
858,244
$1.54
1,321,696
8.77%
872,029
$1.67
1,456,288
20.08%
744,300
15.00%
Est
$1.67
1,243,000
15.02%
733,700
15.00%
Est
$1.67
1,225,300
15.01%
9,103,806
$1.57
14,325,405
12.76%
YTD October 6,788,748 1 9,969,669 1 J 1 7,625,806
11,857,105 1 12.33%
BUDGET
PROJECTED
UNDER / (OVER)
13,000,000
14,326,000
(1,326,000)
H:\Reference Manual\Beaver Water Purchased Water History & projections.xlsx 11/13/2024 / 10:18 AM
