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Home My WebLink About233-18 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 233-18 File Number: 2018-0616 WATER USAGE BUDGET ADJUSTMENT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,120,000.00 IN THE PURCHASED WATER ACCOUNT DUE TO INCREASED WATER USAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF F A Y E T T E V I L L E, 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 $1,120,000.00 in the purchased water account due to increased water usage. PASSED and APPROVED on 11/20/2018 Approv�d: Page 1 Attest: 7 i gtitti a rrrtrr� _RK Sondra E. Smith, City Clerk Treasure��i`=�,.• iii' Y p�•9�G s� LQI'- L • - ■�`P�S� �kA N 5 ON Printed on 11121118 City of Fayetteville, Arkansas 113 West Mountain Street f Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2018-0616 Agenda Date: 11/20/2018 Version: 1 Status: Agenda Ready In Control: City Council Meeting File Type: Resolution Agenda Number: A. 4 WATER USAGE BUDGET ADJUSTMENT: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,120,000.00IN THE PURCHASED WATER ACCOUNT DUE TO INCREASED WATER USAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section l: 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 $1,120,000.00 in the purchased water account due to increased water usage. City of Fayetteville, Arkansas Page 1 Printed on 11/20/2018 City of Fayetteville Staff Review Form 2018-0616 Legistar File ID 11/20/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 10/25/2018 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a budget adjustment in the amount of $1,120,000.00 in the Purchased Water account due to increased water usage, which is purchased from Beaver Water District. The increased usage reflects an increase in revenues, and is recognized in this budget adjustment. 5400.720.3800-5312.00 Account Number N/A Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Water/Sewer Fund N/A Project Title $ 7,500,000.00 $ 6,495,439.62 1,004,560.38 L$.._ .. _ -_J $ 1,120,000.00 $ 2,124,560.38 Previous Ordinance or Resolution # Approval Date: V20180321 CITY OF FAYETTEVILLE ARKANSAS MEETING OF NOVEMBER 20, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Paul Becker, Chief Financial Officer FROM: Tim Nyander, Utilities Director DATE: October 24, 2018 CITY COUNCIL MEMO SUBJECT: Approval of a Budget Adjustment to Increase Water Purchased Account RECOMMENDATION: Staff recommends increasing the General Ledger Account for Water Purchased by $1,120,000 to cover the anticipated costs of purchasing water from Beaver Water District through the end of 2018. 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 previous three (3) months have indicated an approximately 20% increase in water usage compared to last year, due to several factors. The unseasonably warm weather has extended the irrigation season, as well as the increase in water leak repairs and water loss due to leaks. The number of leaks repaired in July through September of 2018 increased 20% from the same time period in 2017. Additionally, the Water & Sewer Division discovered a major leak in September that was losing approximately 2.5 million gallons per day (based on modeling). The reason that the leak did not surface was because it was running into the sewer main nearby. BUDGET/STAFF IMPACT: Because most of the growth in the purchase of water directly corresponds with a growth in revenue, there are additional revenues received in water/sewer sales. The $1,120,000 requested for Water Purchases will come from the recognition of $781,000 in water sales and $339,000 in sewer sales. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number WATER SEWER (720) 2018 /Org2 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of Budget Adjustment for $1,120,000 in the Purchased Water account. The adjustment is necessary due to increased water usage, which is purchased from Beaver Water District. The increased usage reflects an increase in revenues, and is recognized in this adjustment. RESOLUTION/ORDINANCE COUNCIL DATE: 11/20/2018 LEGISTAR FILE ID#: 2018-0616 LbkHcXJw ,ik 10/26/2018 2:56 PM Budget Director TYPE: DESCRIPTION: GLDATE: POSTED: Date H:\Budget Adjustments\2018_Budget\CITY_COUNCIL\2018-11-20\2018-0616 BA Water Purchases 1 of 1 v.20180817 TOTAL 1,120,000 1,120,000 Increase / (Decrease) Proiect.5ub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5400.720.3800-5312.00 1,120,000 - EX Purchased Water - Purchased Water 5400.720.4410-4432.01 - 339,000 RE Sewer Sales - On Computer 5400.720.4310-4431.01 781,000 RE Water Sales - On Computer H:\Budget Adjustments\2018_Budget\CITY_COUNCIL\2018-11-20\2018-0616 BA Water Purchases 1 of 1