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HomeMy WebLinkAbout196-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 196-26 File Number: 2026-2814 A RESOLUTION TO APPROVE A BUDGET AMENDMENT TO MOVE $800,000.00 INTO THE CONSTRUCTION MATERIALS ACCOUNT TO COVER THE REMAINDER OF CONSTRUCTION COSTS EXPECTED IN 2026 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 amendment, a copy of which is attached to this Resolution, in the amount of $800,000.00 to move funds into the construction materials account to cover the remainder of construction costs expected in 2026. PASSED and APPROVED on September 1, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-2814 MEETING OF SEPTEMBER 1, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief Information Officer FROM: Tim Nyander, Utilities Director SUBJECT: Budget Amendment — Water Construction Materials Account RECOMMENDATION: Staff recommends approval of a budget amendment in the amount of $800,000.00 to the Construction Materials account within the Water & Sewer fund due to increased material costs and additional materials needed to support ongoing water distribution maintenance and repair work in 2026. BACKGROUND: The Construction Materials account within the Water & Sewer fund is currently over budget in the amount of $27,451.82. A budget amendment is needed to correct the over budgeted account, and to have enough funds to cover the remainder of construction costs expected in 2026. DISCUSSION: Due to increased construction material costs from vendor price increases, the construction materials account within the Water & Sewer fund has experienced higher expenditures in 2026 than what was budgeted. Higher copper prices have resulted in higher costs for water service line replacements, among other price increases for construction materials used in maintaining and repairing the City's water distribution system. Staff requests a budget amendment in the amount of $800,000.00 to move funds into the construction materials account to cover the overbudget and to have enough funds to cover the remainder of construction costs expected in 2026. BUDGET/STAFF IMPACT: A budget amendment is attached to move funds from the Water System Rehabilitation account to the Construction Materials account within the Water & Sewer fund. ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-2814 A RESOLUTION TO APPROVE A BUDGET AMENDMENT TO MOVE $800,000.00 INTO THE CONSTRUCTION MATERIALS ACCOUNT TO COVER THE REMAINDER OF CONSTRUCTION COSTS EXPECTED IN 2026 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 amendment, a copy of which is attached to this Resolution, in the amount of $800,000.00 to move funds into the construction materials account to cover the remainder of construction costs expected in 2026. Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 City of Fayetteville Staff Review Form 2026-2814 Item ID 9/1/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Tim Nyander 8/13/2026 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a budget amendment in the amount of $800,000.00 to the Construction Materials account within the Water & Sewer fund due to increased material costs and additional materials needed to support ongoing water distribution maintenance and repair work in 2026. 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 $ 1,279,518.00 Expenses (Actual+Encum)$ 1,306,969.82 Available Budget $(27,451.82) Does item have a direct cost?No Item Cost $- Is a Budget Amendment attached?Yes Budget Amendment $800,000.00 $32.00 Remaining Budget $772,548.18 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: 9/01/2026 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 City of Fayetteville, Arkansas - Budget Amendment/Adjustment (Agenda) Budget Year Division /Org2 WATER SEWER (720) BA Number 2026 Requestor:Mailee Thao BUDGET AMENDMENT/ADJUSTMENT DESCRIPTION: A budget amendment is needed to move funds from the Improvements – Waterlines project to Water Distribution Maintenance – Construction Materials due to increased construction material costs and additional materials needed to support ongoing water distribution maintenance and repair work. COUNCIL DATE:9/1/2026 ITEM ID#:2026-2814 Holly Black 8/13/2026 12:22 PM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2026714TOTAL-- Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 5400.720.5600-5808.00 (800,000)-12009 1 EX Improvements - Water Line 5400.720.4310-5216.00 800,000 -EX Construction Materials -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978