HomeMy WebLinkAbout69-08 RESOLUTIONRESOLUTION NO. 69-08
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT
IN THE AMOUNT OF $75,000.00 TO MATCH A SIMILAR
EXPENDITURE OF THE UNIVERSITY OF ARKANSAS
TECHNOLOGY DEVELOPMENT FOUNDATION TO
JOINTLY HIRE A CONSULTANT FOR PHASE ONE OF. AN
ECONOMIC DEVELOPMENT STRATEGIC PLAN
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 attached as Exhibit A in the amount of $75,000.00 to match a similar
expenditure of the University of Arkansas Technology Development Foundation to jointly hire a
consultant for Phase One of an Economic Development Strategic Plan.
PASSED and APPROVED this 18th day of March, 2008.
•
APPROVED:
By:
ATTEST:
By:
DAN COODY, Mayor . SONDRA E. SMITH, City Clerk/Treasurer
IVa• 73T.
E :FAYETTEVILLE:
V511/,/f414
519t',M DN.
d NG G%%`
AOC)�''""„ro %
City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Year
2008
Department: General Government
Division: Miscellaneous
Program: Miscellaneous
Date Requested
3/21/2008
Adjustment Number
Project or Item Added/Increased:
$75,000 in the Economic Development / UA Matching
Funds capital project.
Project or Item Deleted/Reduced:
$75,000 from the Designated Unreserved Fund Balance
account earmarked for Economic Development (Wilson
Springs).
Justification of this Increase:
The funding is.a cost share to Establish an Economic
Development Partnership with the University of Arkansas
fora Technology Development Foundation.
Justification of this Decrease:
Currently the Economic Development Fund has $1.2
Million.
Increase Expense Budget (Decrease Revenue Budget)
Account Name Account Number Amount - Project Number
Contract Services
Account Name
1010 6600 5315 00 75,000 08050 0801
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Project Number
Use Of Designated Fnd Bal 1010 0001 4999 98 75,000 08050 0801
Approval Signatures
Requested By
'+BBuudggeet erector
Cr • T• a tment D
Date
3 3.ti3
Finance Director
Date
Date
3-3-a8
Date
Date
Mayor
Budget & Research Use Only
Type:
General Ledger Date
Approval Date
Posted to General Ledger
Posted to Project Accounting
E
Initial Date
Initial Date.
Initial Date
Gary Dumas
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
3/18/2008
City Council Meeting Date
Agenda Items Only
Division
Action Required:
CES
3118 -la
61-08
Gfo�
!z2 ,7D/057
d3welapnnt
Operations
Department
Approve resolution appropriating $75,000 to match and partner with the University of Arkansas Technology
Development Foundation, in order to begin the process of creating a fiscally sustainable Fayetteville. A contract
authorizing the expenditure will be brought forward when the UATDF, working with the city staff, has selected
appropriate consultant services. \coot G 1z,uacitt
$75,000
Cost of this request
Account Number
Project Number
Category / Project Budget
Program Category / Project Name
Funds Used to Date Program / Project Category Name
Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Gary Dumas
Department Director
C y ttorney
2/29/2008 Previous Ordinance or Resolution #
Date
Original Contract Date:
Original Contract Number:
2-24 air
Date
3 -3-?
Finance d Internal Service Director Date
Mayor
Date
Received in City
Clerk's Office
EfV B EO
aqlset Ly
CN3:1
Received in
Mayor's Office
1
Comments:
Revised April 16, 2007
ayes evi le
ARKANSAS
OPERATIONS DIRECTOR
To: City Council
From: Gary Dumas, Director of Operations
Date: February 29, 2008
RE: Establishing Economic Development Partnership with University of Arkansas through
the Technology Development Foundation (UATDF)
Background
The City of Fayetteville like all Arkansas cities derives its primary source of general fund
operating revenue from sales tax collections. During 2007 sales tax revenue for Fayetteville
declined approximately 2.76% below 2006 collections. This helped to create a budget shortfall
for the general fund of approximately 51.57 million requiring the use of cash reserves. Sales tax
revenue for 2008 was budgeted for 2% growth above 2007 collections and the split between
operations and capital usage was modified from 50-50 to 60% operations and 40% capital. That
2% growth, if achieved and modification of the split to 60-40 will make an additional $1.72
million available for general fund operations. Even with this change in funding practices cost
cutting measures for the 2008 budget were still necessary to balance revenue and expenses.
It has become apparent during the past 18 months that the purchasing dynamics of the region
have changed and that the significant sales tax growth that Fayetteville has experienced during
the past decade will not return.
For the next few years, adjustments in expenses and/or revenues will allow the government to
remain fairly stable. However, decreases in expenses will mean a reduction in services, and an
increase in millage will affect every property owner.
The City is not in crisis. But it appears evident that within the next 2 to 6 years those adequate
resources may not be available to continue to provide the level of services our citizens deserve
and have come to expect. Keep in mind also that many of these services are the ones that are
unique to Fayetteville and separate us from our regional competitors.
Discussion
The University of Arkansas and the City of Fayetteville coexist in a cooperative and mutually
beneficial relationship.
The University has embarked on its vision of emerging as a nationally competitive, student -
centered research university serving Arkansas and the world, lifting into the ranks of the nation's
top 50 public research universities.
The state of Arkansas needs a top -tier public research university if it is to become competitive in
the "New Economy," which is based on knowledge generation and advanced technology.
According to the "New Economy Index" published in 2001 by the Milken Institute, the state of
Arkansas ranks 50th overall in the 12 educational and economic measures required for success in
113 West Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdumas@ci.fayclteville.ar.us
• It is not the strongest of the species that
survive, or the most intelligent,
but the one most responsive to change. ---
Author unknown. commonhv misattributed to Charles Darwin
'the new economic era. (In the "2007 State New Economy Index" by The Information
Technology and Innovation Foundation and the Ewing Marion Kauffman Foundation, Arkansas
ranks 47th) The state cannot move forward without a top-ranked public research university,
which directly affects a majority of those 12 educational and economic measures.
The University of Arkansas is poised to become that top -tier public research university. The
states that will prosper most in the new century are those that nurture knowledge-based and high-
tech business and industry while creating a quality of life that attracts and keeps talented people
in the state.
These efforts of the University to lift itself to the top tier of public research universities, while
benefiting the entire state, will be centered in Fayetteville. Necessary elements of the
University's success will be:
• the ability of the local government to provide the quality of life amenities that will attract
and retain the best educators, scientists, researchers, and students' and
• the ability of the local government to provide an atmosphere that nurtures an
entrepreneurial spirit to move research into the marketplace and lob creation.
For that reason the University of Arkansas through the Technology Development Foundation
(UATDF) has agreed to partner with the City to begin a process of developing a roadmap to
fiscal sustainability for the local govemment. The City of Fayetteville's ability or lack of ability
to fund a stable government and quality of life amenities will greatly help or hinder the mission
of the University and the University's success in becoming a top -tier public research university
will help the City achieve fiscal stability.
The UATDF has agreed to provide up to 50% or $75,000 for phase one of an economic
development strategic plan for the community. This first phase is envisioned to be a community-
based visioning process, building consensus and perspective, utilizing consultant services for this
activity. •
There has been some discussion concerning an attempt to accomplish this consensus and
perspective building using internal or local resources. The purpose of using outside consultant
services is to gain from their prior experience and knowledge, and to gain a new point of view of
our local issues. Yes it is tate that we all know Fayetteville, and we have our own opinions
about what Fayetteville needs. What outside services will bring is the facilitation of a
constructive discussion bringing that diverse knowledge and diverse opinion into a consolidated
statement with which all sides can identify and move toward the achievement of our common
objective — a sustainable, successful Fayetteville economy. That is not a task that will easily be
achieved. As with all communities there are great divides of opinion. Preparing the Council and
the community for an uncertain future and developing a guide to encourage job and economic
growth necessary to maintain and even expand upon the quality of life amenities enjoyed in
Fayetteville is perhaps the most important and pressing task at hand.
Recommendation
Approve resolution appropriating $75,000 to match and partner with the University of Arkansas
Technology Development Foundation in order to begin the process of creating a fiscally
sustainable Fayetteville. A contract authorizing the expenditure will be brought forward when
the UATDF, working with the city staff, has selected appropriate consultant services.
I I3 \Vest Mountain
Fayetteville, Arkansas 72701
Office phone - 479-575-8330
Fax - 479-575-8257
E-mail - gdumas@ci.fayetteville.ar.us
It is not the strongest of the species that
survive, or the most intelligent,
but the one most responsive to change. ---
Author unknown, commonly misaitrihwed to Charles Darwin
RESOLUTION NO.
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT
IN THE AMOUNT OF $75,000.00 TO MATCH A SIMILAR
EXPENDITURE OF THE UNIVERSITY OF ARKANSAS
TECHNOLOGY DEVELOPMENT FOUNDATION TO JOINTLY
HIRE A CONSULTANT FOR PHASE ONE OF AN ECONOMIC
DEVELOPMENT STRATEGIC PLAN
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 attached as Exhibit A in the amount of $75,000.00 to match a similar
expenditure of the University of Arkansas Technology Development Foundation to jointly hire a
consultant for Phase One of an Economic Development Strategic Plan.
PASSED and APPROVED this 18`h day of March, 2008.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
CJ. A
teoowMtes lD Mow ' 3 -11-0
;r:t. university of arkansas technology dtir
development fodation
-? ;arch iO,117b$
ifoayor Dan COSY
7113'West-Mountain Sheet
Fayetteville, Aft 72701
Dear tvlayor Cordy.
535 West Reseach Cenret Mini
Fayetteville, Aekan'sss 72701
V479.575401 1479.575.5377
In the Special Session af the thy Council held en February 13, zaos there,kras discussion of the merits of
utilizing outside ionstiltaiitsandJor facifrtatcrsto,assist tr the aearelgprnent of a'oorniirehensiye, loft -
range 'economic developme'at strategyfor the City. While there are clea-fy eptionsto engaging
consultants, II' believe that this activity leads itself very strongly to utilizing the services ,of outside
eii;ierts,
first, outside consultants bring objectivity and a fresh perspective free from preconceived biases that
migh otherwiie'influence the PrctivitiS, Although unintended; intiooucipeg our local bias would have the
.effect of diminishing thetistl potential of the strategy_ Secured. utilfzingconsult<nis.WN allowCouncil,
staff and volunteers to focus entirety on their participation in the process raitherthan divide their time
to facilitate .he -process_ firially; time is of the essence in preparing a loris -range strategy Uwiurig
consultants win introduce efficiency to the otprall profess -to ienstire a timely and quality outccine.
We are veryiileaseato'once againhatttheopportuniittytopartnerWiththeChyonthisinififliant
endeavor, We look forir.ard to initiating the work -
"Cc .t3on'Pederson
•
j(3.21.08) Clarice Pearman - Res. 69-08 - Page -1
From: Clarice Pearman
To: Dumas, Gary
Date: 3.21.08 3:23 PM
Subject: Res. 69-08
Attachments. 69-08 UofA Technology Development Foundation.pdf
CC: Audit; Fell, Barbara
Gary:
Attached is a copy of the above resolution regarding the budget adjustment. Please let me know if there is anything else
needed for this item. Have a good weekend.
Thanks.
Clarice
Clarice Buffalohead-Pearman, C.A.M.C., C.M.C.
City Clerk/Treasurer Division
113 West Mountain
Fayetteville, AR 72701
479-575-8309
cpearman@ci.fayetteville.ar.us