HomeMy WebLinkAbout260-21 RESOLUTION113 West Mountain Street
Fayetteville. AR 72701
(479) 575-8323
Resolution: 260-21
File Number: 2021-0787
BUDGET ADJUSTMENT FOR WATER PURCHASES:
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF
$1.000.1000.00 FOR 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 S 1,000,000.00 for the
purchased water account due to increased water usage.
PASSED and APPROVED on 1 1/2/2021
Attest:
Kara Paxton, City Clerk Treasu&r
Page 1 Printed on 1113121
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Text File
File Number: 2021-0787
Agenda Date: 11/2/2021 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Resolution
Agenda Number: A.3
BUDGET ADJUSTMENT FOR WATER PURCHASES:
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,000,000.00
FOR THE PURCHASED WATER ACCOUNT DUE TO INCREASED WATER USAGE
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, a
copy of which is attached to this Resolution, in the amount of $1,000,000.00 for the purchased water account
due to increased water usage.
City of Fayetteville, Arkansas Page 1 Printed on 111312021
Tim Nyander
Submitted By
City of Fayetteville Staff Review Form
2021-0787
Legistar File ID
11/2/2021
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
10/13/2021 WATER SEWER (720)
Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of a budget adjustment in the amount of $1,000,000.00 in the Purchased Water
account due to increased water usage and increased number of water leaks. The purchased water expense account
is the purchased water from Beaver Water District.
Budget Impact:
5400.720.3800-5312.00
Water and Sewer
Account Number Fund
N/A N/A
Project Number
Budgeted Item? Yes
Does item have a cost? No
Budget Adjustment Attached? Yes
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Project Title
$ 9,060,000.00
$ 7,431,602.22
$ 1,628,397.78
$ 1,000,000.00
$ 2,628,397.78
V20210527
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF NOVEMBER 2, 2021
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
FROM: Tim Nyander, Utilities Director
DATE: October 13, 2021
CITY COUNCIL MEMO
SUBJECT: Budget Adjustment for Purchased Water Account
RECOMMENDATION:
Staff recommends approval of a budget adjustment in the amount of $1,000,000.00 in the
Purchased Water account due to increased water usage, which is purchased from Beaver
Water District.
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:
Water purchased at the end of September 2021 is up by 9.83% compared to water purchased
at the end of September 2020. This increase in water usage is due to several factors but most
notably is due to increases seen in customer water usage and water loss due to leaks. More
specifically, customer water usage is currently at record levels and is up by 3%. Additionally, the
number of leaks in the City's water distribution system have increased by 135% at the end of
September 2021 compared to what was seen at the end of September 2020.
BUDGET/STAFF IMPACT:
Because most of the growth in water purchased from Beaver Water District directly corresponds
to growth in revenue, there are additional revenues received in water and sewer sales. The
$1,000,000 requested for Water Purchases will come from the recognition of $700,000 in water
sales and $300,000 in sewer sales.
Attachments:
Budget Adjustment
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
/Org2 WATER SEWER (720)
2021
Requestor: Tarvarius J. Smith
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
A budget adjustment is needed within the Water and Sewer Fund's 2021 operations budget to fund additional water
projected to be purchased from Beaver Water District for 2021. This increase in usage reflects an increase in revenues
which is recognized by this adjustment.
RESOLUTION/ORDINANCE
COUNCIL DATE: 1 1 /2/2021
LEGISTAR FILE ID#: 2021-0787
KP,vLwSpr �
10/13/2021 9:35 AM
Budget Director Date
TYPE: D - (City Council)
JOURNAL #:
GLDATE:
CHKD/POSTED:
TOTAL
Account Number
1,000,000 1,000,000
Increase / (Decrease)
Expense Revenue
Proiect.Sub#
Project Sub.Detl AT
v.20210831
Account Name
5400.720.3800-5312.00
1,000,000
-
EX
Purchased Water
5400.720.4310-4431.01
5400.720.4410-4432.01
-
-
700,000
300,000
RE
RE
Water Sales - On Computer
Sewer Sales - On Computer
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