Purcellville reallocates funds, approves $5.6M water-tank contract and $2.324M budget amendment

The Purcellville Town Council on July 23 approved a budget amendment and authorized the town manager to execute a contract to build a new elevated water storage tank after staff described higher-than-expected bids.

Staff said the project’s preliminary estimate dating to 2021 had been substantially increased by market factors. The town received three bids from specialized water-storage contractors; the low bid was approximately $5,607,000, with other bids clustered near $5.78 million and $5.998 million. Staff explained the project was competitively bid and the vendors were experienced tank contractors from out of state.

To cover the gap between the 2021 estimate and the low bid, engineering and public works staff reviewed the capital improvement program and rebalanced project funding and contingencies. Finance staff (Connie) said ARPA funding lines were not touched; instead the department delayed certain projects, reduced contingency allocations on some initiatives, and moved available funds so the water priority could be advanced. Staff noted one driver was an ARPA obligation deadline that requires funds be obligated by Dec. 31.

Council approved budget amendment BA25‑006 to reallocate $2,324,250 from other projects and authorized the town manager to execute the contract; the motion passed unanimously, 7–0. Councilors acknowledged the trade-offs involved in reprioritizing CIP funds and asked staff to monitor other projects so deferred work can be rebalanced in future budgets.

Next steps: staff will execute the contract and continue to review the CIP schedule; a staff follow-up meeting was scheduled for Aug. 20 to review rebalancing and project staging.

Quoted in the meeting: engineering staff noted the low bid and timing of addenda and questions in the bid window; finance staff said rebalancing and contingency reductions were used to close the gap rather than tapping ARPA earmarks.