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Home My WebLink About215-25 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 215-25 File Number: 2025-1362 A RESOLUTION TO ESTABLISH A FRANCHISE FEE SPECIAL REVENUE FUND WHEREAS, on July 15, 2025, City Council approved Resolution 165-25, expressing its intent to appropriate up to $450,000.00 from the General Fund balance to support initiatives addressing homelessness in Fayetteville; and WHEREAS, at the August 5, 2025 Council Meeting, the Mayor brought forward an item to allocate $200,000.00 of the total $450,000.00 to the Fayetteville Housing Authority; and WHEREAS, the Housing Authority Act specifically provides that the City “shall have the power from time to time to lend or donate money to the (housing) authority…” therefore, the $200,000.00 payment to FHA was paid directly from General Fund revenues; and WHEREAS, the appropriate way to finance the remaining initiatives to address homelessness would be from funds that are not commingled with tax revenues by establishing a new Franchise Fee Fund. NOW, THEREFORE, 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 establishes a Franchise Fee Special Revenue Fund. PASSED and APPROVED on September 16, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1362 MEETING OF SEPTEMBER 16, 2025 TO: Mayor Rawn and City Council THRU: FROM: Steven Dotson, Chief Financial Officer SUBJECT: Resolution to Establish the Franchise Fee Fund RECOMMENDATION: Staff recommends that the Mayor and City Council adopt a resolution establishing a Franchise Fee special revenue fund. BACKGROUND: At the July 15th 2025 City Council meeting, Council voted to adopt a resolution of intent to appropriate up to $450,000.00 for initiatives to address homelessness (Res.165-25). No funding was appropriated at that time, but it was determined that the City would bring forward budget adjustments to City Council as the specific projects are identified. DISCUSSION: At the August 5th 2025 Council Meeting, the Mayor brought forward an item to allocate $200,000 of the total $450,000 to the Fayetteville Housing Authority. The Housing Authority Act specifically provides that the City "shall have the power from time to time to lend or donate money to the (housing) authority...". Therefore, as it is allowed specifically by law, the $200,000 payment to FHA was paid directly from General Fund revenues. However, per discussion with the City Attorney, the appropriate way to finance the remaining initiatives to address homelessness (other than payments to the Fayetteville Housing Authority) would be from funds that are not commingled with tax revenues. For that reason, the City will need to establish a new Franchise Fee Fund, so that Franchise Fees are not commingled with other revenue sources in the General Fund. Once the remaining $250,000 of projects (as per Res 165-25) are funded from the new Franchise Fee fund, the remaining funding will be transferred over to the General Fund for use on the same general governmental expenditures that it always has been used for. BUDGET/STAFF IMPACT: Franchise fees will be deposited into the Franchise Fee Fund in the amount necessary to fund those items as discussed in the resolution of intent (Res. 165-25) when those funding requests are approved by Council. The remaining franchise fees will be deposited to the General Fund as per the usual practice. ATTACHMENTS: 3. Staff Review Form Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1362 A RESOLUTION TO ESTABLISH A FRANCHISE FEE SPECIAL REVENUE FUND WHEREAS, on July 15, 2025, City Council approved Resolution 165-25, expressing its intent to appropriate up to $450,000.00 from the General Fund balance to support initiatives addressing homelessness in Fayetteville; and WHEREAS, at the August 5, 2025 Council Meeting, the Mayor brought forward an item to allocate $200,000.00 of the total $450,000.00 to the Fayetteville Housing Authority; and WHEREAS, the Housing Authority Act specifically provides that the City “shall have the power from time to time to lend or donate money to the (housing) authority…” therefore, the $200,000.00 payment to FHA was paid directly from General Fund revenues; and WHEREAS, the appropriate way to finance the remaining initiatives to address homelessness would be from funds that are not commingled with tax revenues by establishing a new Franchise Fee Fund. NOW, THEREFORE, 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 establishes a Franchise Fee Special Revenue Fund. City of Fayetteville Staff Review Form 2025-1362 Item ID 9/16/2025 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Steven Dotson 8/27/2025 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends that the Mayor and City Council adopt a resolution establishing a Franchise Fee special revenue fund. Budget Impact: 2190 Franchise Fee Fund Account Number Fund Project Number Project Title Budgeted Item?No Total Amended Budget $- Expenses (Actual+Encum)$- Available Budget $- Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?No Budget Adjustment $- Remaining Budget $- V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: