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HomeMy WebLinkAbout017-26 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 17-26 File Number: 2025-2701 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $400,000.00 TO MOVE FUNDS TO THE CONSTRUCTION MATERIALS ACCOUNT WITHIN THE WATER & SEWER FUND 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 in the amount of $400,000.00, a copy of which is attached to this Resolution, to move funds to the construction materials account within the Water & Sewer fund due to increased material costs and additional construction expenses. PASSED and APPROVED on January 6, 2026 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 2025-2701 MEETING OF JANUARY 6, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff FROM: Tim Nyander, Utilities Director SUBJECT: Budget Adjustment for Construction Materials Account RECOMMENDATION: Staff recommends approval of a budget adjustment in the amount of $400,000.00 to the Construction Materials account within the Water & Sewer fund due to increased material costs and additional construction expenses for 2025. BACKGROUND: The Construction Materials account within the Water & Sewer fund is currently over budget for 2025 due to material price increases and additional construction expenses for 2025. The City experienced a large 36-inch water main break in 2025 that had a cost of over $200,000.00 to repair. DISCUSSION: A budget adjustment is needed in the Water & Sewer fund due to increased material costs, price increases, additional construction expenses, and the 36-inch main line leak repair that was over $200,000.00. Funds are available from other capital projects, and staff requests to transfer them over to the Construction Materials account to cover this overage and the remaining expenses for the year. BUDGET/STAFF IMPACT: A budget adjustment is attached to move $400,000 into the Construction Materials account. ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-2701 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $400,000.00 TO MOVE FUNDS TO THE CONSTRUCTION MATERIALS ACCOUNT WITHIN THE WATER & SEWER FUND 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 in the amount of $400,000.00, a copy of which is attached to this Resolution, to move funds to the construction materials account within the Water & Sewer fund due to increased material costs and additional construction expenses. City of Fayetteville Staff Review Form 2025-2701 Item ID 1/6/2025 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Tim Nyander 12/11/2025 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a budget adjustment in the amount of $400,000.00 to the Construction Materials account within the Water & Sewer fund due to increased material costs and additional construction expenses for 2025. Budget Impact: 5400.720.4310-5216.00 Water & Sewer Account Number Fund N/A N/A Project Number Project Title Budgeted Item?Yes Total Amended Budget $1,082,014.00 Expenses (Actual+Encum)$1,279,013.39 Available Budget $(196,999.39) Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?Yes Budget Adjustment $400,000.00 $32.00 Remaining Budget $203,000.61 V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 WATER SEWER (720) Adjustment Number 2025 Requestor:Mailee Thao BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A council budget adjustment is needed for the Water & Sewer operational project due to increased material costs, price increases, additional construction expenses, and the 36-inch main line leak repair that was over $200K. Funds are available from these capital projects, and we need to move them over to cover this overage and the remaining expenses for the year. COUNCIL DATE:1/6/2026 ITEM ID#:2025-2701 Holly Black 12/11/2025 11:42 AM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: 12/31/2025 RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2025125TOTAL-- Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 5400.730.5800-5818.00 (100,000)-13018 1 EX Wastewater Treatment Plant - Improvements 5400.720.5700-5815.00 (100,000)-04039 1 EX Improvements - Sewer 5400.720.5700-5815.00 (100,000)-02017 1 EX Improvements - Sewer 5400.720.1840-5801.00 (100,000)-15019 1 EX Fixed Assets 5400.720.4310-5216.00 400,000 -EX Construction Materials -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1