HomeMy WebLinkAboutCity of Farmington - Public Financial ReportNew Mexico
For the Year Ended June 30, 2021
Citizens’ Financial Report
About This Report
The Popular Annual Financial Report (PAFR), also known as the Citizens’ Financial Report, is a
summary of the financial activities for the City of Farmington (City) and draws from the FY2021 Annual Comprehensive Financial Report (ACFR). The PAFR’s principal focus is the City of Farmington’s governmental funds. This report contains summary information taken directly
from the ACFR for the city-wide net position and business-type The presentation
of the PAFR is unaudited and departs from the generally accepted accounting principles (GAAP) required in the ACFR. For interested users, copies of the City’s ACFR and audited
GAAP-based financial statements, including disclosure notes, are available on the City of
Farmington’s website at f tn.or , contacting the Finance Department at 805 Municipal Drive, Farmington, NM, 87401, or by phone at (505) 599-1210.
For the past 11 years, the City of Farmington has received an Award for the Outstanding
Achievement in Popular Annual Financial Reporting (PAFR). To receive this award, the City of Farmington must publish a PAFR
that conforms to program standards of
creativity, presentation, understandability, and reader appeal. An additional
requirement is to have received the GFOA’s
Certificate of Achievement for Excellence in Financial Reporting for the previous year.
The on pages 5, 6, and 8 thru
14 draws from the City of Farmington’s
Annual Comprehensive Financial Report
(ACFR) for the fiscal year ended June 30,
2021. For the past 27 years, the City of
Farmington received the of
Achievement for Excellence in Financial
Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The of
Achievement is the highest form of for excellence in state and local government financial
.
About This Report 1
Organizational Chart 2
About the City of Farmington 3
Mayor’s Letter 4
Farmington at a Glance 5
What We Accomplished 6
Understand Your Taxes 7
Where the Money Comes From 8 & 9
Where the Money Goes 10
Five-Year Financial Trend 11
Business-Type Funds 12
Statement of Net Position 13
City Debt 14
What We Accomplished 15
Where We are Headed 16
Meet The Councilors 17
Letter from the City Manager 18
1
2
MAYOR AND COUNCIL
Linda Rodgers
District 1
CITY MAYOR
Nate Duckett Jeanine Bingham-Kelly
District 3
Sean Sharer
District 2
Janis Jakino
District 4
CITY MANAGER
Rob Mayes
Airport Library
Public Affairs
CITY CLERK
Andrea Jones
CITY ATTORNEY
Jennifer Breakell
CITIZENS OF FARMINGTON
City of Farmington— Organizational Chart
Parks, Recreation, & Cultural Affairs
Shaña Reeves
Regional Animal Shelter Museum System
Aquatics Facilities Parks Operations
Civic Center Recreation Center
Farmington Indian Center Senior Citizen Center
Golf Courses Sycamore Park Comm. Center
Lake Farmington Bisti Bay Waterpark
Amphitheater NM Clean and Beautiful
Human Resources
Tom Swenk
Payroll
Workers Comp
Insurance
Personnel
Police
Chief Steve Hebbe
Operations Training
School Crossguards Dist. Coordinator Unit
Detectives Region II/Gangs
Park Rangers Traffic
Patrol Code Compliance
Animal Control Real Time Crime Center
K-9 School Resource Officers
SWAT Crime Lab
Records & Evidence
Assistant City Manager
Julie Baird
Community Services
Farmington MPO
Electric Utility
Hank Adair
Animas Power Plant Electric Relay Shop
Bluffview Power Plant Metering Services
Business Operations Navajo Dam Power Plant
Compliance San Juan No. 4
Customer Service Safety
Electric Engineering Substation Maintenance
Electric Construction System Control Center
Electric Meter Shop Transmission & Distribution
Fire
Chief Robert Sterrett
Operations
Information
Technology
James Campbell
Infrastructure Services
Technical Services
GIS
Application Services
Community Works
David Sypher
Building Inspection Streets
City Engineering Survey
Construction Inspection Traffic Engineering
MRA Water/Wastewater
Planning CDBG
Sanitation
Administrative Services
Teresa Emrich
Finance
Warehouse
Central Purchasing
Economic Development
Warren Unsicker
Outdoor Recreation Industry Initiative (ORII)
New Mexico Main Street and Downtown Assoc.
General Services
Edward Smylie
Building & Maintenance Red Apple Transit
Building Support Vehicle Maintenance
MUNICIPAL JUDGES
Location
The City of Farmington is located at the junction of the Animas, La Plata, and San Juan
Rivers in the northwest corner of New Mexico. Incorporated in 1901, the City flourished
into a regional center of commerce and culture. It is the largest city in the Four Corners
Area. This area is often called the Four Corners because it is the point where the states of
Arizona, Colorado, New Mexico, and Utah meet.
About the City of Farmington ...
Leadership
The organization of the City leadership is a council-manager form of
government. This form of local government consists of four council
members elected by constituents from four voting districts and the
mayor elected at-large. The strong political leadership of elected
officials combines with the strong managerial experience of an
appointed city manager to lead Farmington’s path.
Elected Council members represent their district to establish policies
based upon citizens’ needs and wishes. The Council focuses on
Farmington’s goals, major projects, and long-range progress
through development of ordinances, laws, and policies.
The Mayor, as a key political leader, is responsible for soliciting
citizen views in forming policy. The Mayor plays an important role as
spokesperson for the City, presides at Council meetings, assists the
Council to establish goals, and advocates policy decisions.
The role of the City Manager is to fulfill the policies established by
the City Council and ensure needs are met for the entire community.
This position is responsible for the management of day-to-day
operations and, through policy recommendations, serves as the City
Council’s chief advisor. 3
Mayor’s Letter
4
To the residents and visitors of Farmington,
Welcome to the FY2021 Popular Annual Financial Report (PAFR) for the City of Farmington’s financial activities
from July 1, 2020 to June 30, 2021.
The PAFR is a reader-friendly document published annually to increase public awareness of the City of
Farmington’s financial activities for the previous fiscal year. The report also provides a summary of the City’s
financial health, highlights the sources of revenue available to the City to provide services and programs, and
shows how those dollars are spent. The PAFR is a recap of the City of Farmington’s finances and economic
condition. It also points out the ongoing financial challenges and opportunities the City will face.
Thank you for taking the time to read this important report. I encourage you to stay up-to-date with the ongoings
of your city council and invite you to visit the City of Farmington’s website at fmtn.org. From there, you can live
stream council meetings, watch past council meetings, and view The Mayor’s Table episodes, which air on the first
and third Mondays of the month. Also, if you are interested in learning about ways you can serve your community,
please look for the “Boards and Commissions” link on the website. And don’t forget to follow the City of
Farmington on Facebook for important ongoing updates about what’s happening in YOUR community!
Respectfully,
Mayor Duckett
Nate and Barbie Duckett
met in high school and
have been married 20
years!
“It has beautiful parks, great
people, and is a great place
to raise a family!”
The Duckett Family
Mayor Duckett graduated
from FHS in 1996 and
received his bachelor’s
degree in criminology
from UNM in 2001.
farmingtonnm.org
Area in Square Miles: 35.19
City-Wide Expenses FY2021: $199,146,160
Regular Employees City of Farmington: 768
Elevation: 5,499 feet
On Average:
Average Sunny Days: 76.4% (279)
Average Rainfall (in.): 8.59
Annual Snowfall (in.): 12
Annual Temp. High/Low: 65°F/40°F
Farmington at a Glance
United States Census Bureau Data
City Incorporated………………1901
Population (CY2020)………46,624
Median Household Income...$54,480
Civilians employed 16 years and older…60.3%
Median Gross Rent (2019)………$868
Median House Value (2019) ……$186,800
Per Capita Income (2019)……$26,960
Unemployment Rate (June, 2021)…10.0%
School Enrollment………10,781
Median Age ………………33.8 Police & Fire Protection Municipal Airport
Transit Service Library Parks, Recreation, & Cultural
Affairs Farmington Area Top Ten Employers 2021
Employer Employees
Percent of
Total County
Employment
San Juan Regional Medical Center 1,773 3.5%
Farmington Municipal Schools 1,023 2.0%
Central Consolidated Schools 900 1.8%
City of Farmington 768 1.5%
San Juan County 726 1.4%
San Juan College 681 1.3%
Basin Home Healthcare 659 1.3%
Bloomfield Municipal Schools 450 0.9%
Hilcorp Energy Company 430 0.8%
PESCO Inc 400 0.8%
Total 7,810 15.4%
Pools - Lions Pool, Farmington Aquatic Center, “The Beach” at Lake Farmington, Bisti
Bay at Brookside Park, Berg Park Splash Pad, Orchard Park Splash Pad
Outdoor Entertainment and Recreation - Lions Wilderness Park Amphitheater, Lions
Wilderness Park disc golf course, 8+ miles of Animas River trails, Lake Farmington,
Sycamore Park pump track
Golf Courses - Piñon Hills (18-hole course) & Civitan (9-hole course that includes
footgolf)
Museums - Farmington Museum, E3 Children’s Museum & Science Center, Riverside
Nature Center, Museum of Navajo Art & Culture
Facilities - Civic Center, Bonnie Dallas Senior Center, Regional Animal Shelter,
Recreation Center, Indian Center, Sycamore Park Community Center, soccer, softball,
baseball fields, and basketball, bocce ball, horseshoe, volleyball, tennis/pickleball
courts, and skate parks
Neighborhood Parks - Over 50 parks and open spaces located throughout the city
limits.
Transportation - Red Apple Transit (15 bus system), Airport (General Aviation)
usclimatedata.com/climate/farmington/new-mexico/united-states/usnm0109
Major Services Provided:
Four Corners Economic Development website; National Center for Education Statistics; Direct Call; City of Farm-
ington Program Budget - Staffing Analysis Section
5
Street & Traffic Maintenance Electric Utility Services
Water and Wastewater Utility Services Sanitation Utility Services
* All Council Meetings are held at 800 Municipal Drive.
January 2022
Sun Mon Tue Wed Thu Fri Sat
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23/30 24/31 25 26 27 28 29
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6p.m.*
What We Accomplished
6
City Clerk Calendar Year 2016 2017 2018 2019 2020
Business Registration / Licenses Issued 3,840 4,285 3,727 3,568 3,416
Requests to Inspect Public Records 503 518 546 642 446
Library Fiscal Year 2017 2018 2019 2020 2021
Visits (excludes special events) 349,718 339,479 322,493 217,326 52,763
Computer Users 58,361 57,168 53,021 36,843 4,678
Wi-Fi Logins (included in computer users) 24,930 22,639 28,035 19,178 2,463
Circulation (books checked out ) 385,126 364,067 340,960 283,592 202,086
Admin.
Services
GFOA Awards
GFOA Distinguished Budget Presentation Award - FY2019 (21st Award)
GFOA Certificate of Achievement for Excellence in Financial Reporting -
FY2020 (27th Award)
GFOA Award for Outstanding Achievement in Popular Annual Financial Re-
porting - FY2020 (11th Award)
Parks,
Recreation,
& Cultural
Affairs
2017 2018 2019 2020 2021
Animal Shelter Animal Intake 6,899 7,034 6,962 5,760 4,741
Museum Patrons 114,865 115,518 120,206 87,859 23,346
Indian Center
Customers Served 38,087 35,592 38,758 28,050 29,489
Restaurant Customers 31,274 27,588 32,724 24,382 28,224
Sycamore
Community Center
Participants 84,426 95,321 82,570 15,009 3,873
Special Events 17 19 18 3 29
Civic Center Attendance 94,231 57,988 71,474 75,027 8,044
Events 1,124 875 797 810 191
Bonnie Dallas
Senior Center
Meals on Wheels 31,805 26,660 22,185 22,302 24,571
Congregate Meals 50,520 56,140 57,255 53,480 28,226
Number of Special
Events 1,136 25 26 2 0
Golf Fiscal Year 2017 2018 2019 2020 2021
Piñon Hills/Civitan Participants 41,368 46,726 48,830 32,757 47,171
Airport 2017 2018 2019 2020 2021
Number of Enplaned Passengers 3,208 721 66 0 0
Number of Airport Operations N/A 35,707 41,677 37,478 43,422
Red
Apple
Transit
Calendar Year 2016 2017 2018 2019 2020
Transit Bus/Van 17 15 15 18 15
Ridership 132,183 120,681 120,964 126,378 66,636
Comm.
Works
2017 2018 2019 2020 2021
Asphalt Places (sq.ft.) 96,727 58,168 80,870 91,428 90,029
Concrete Places (cy) 523 628 629 819 777
Streets (miles) 286 286 280 280 280
Highway State (miles) 21 21 21 21 21
Traffic Signals 85 85 85 82 82
Potholes Repaired 21,673 19,734 19,088 3,095 2,251
Building Permits 977 1,031 930 862 923
Single-Family Building Permits 48 54 36 39 59
Building Inspections 5,616 5,835 4,278 3,964 4,845
Police
2017 2018 2019 2020 2021
Police Reports 11,128 11,500 11,511 10,221 8,477
Arrests 6,161 5,408 5,560 5,230 4,261
Traffic Citation 10,445 11,051 13,670 12,014 9,840
2017 2018 2019 2020 2021
Structure Fires 55 70 39 71 109
Vehicle Fires 24 26 20 29 29
Other Fires 85 145 89 128 168
Rescue/Emergency Calls 6,228 8,157 8,922 9,468 9,424
Other Responses 3,252 1,231 2,249 2,396 5,214
Fire
*Bloomfield route was canceled
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
* All Council Meetings are held at 800 Municipal Drive.
February 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28
City Council Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6p.m.*
Understand Your Taxes
7
Gross Receipt Taxes
Property Taxes
The single-family residential tax
dollars are divided among several governmental entities. As the
graphic shows, for every dollar of taxes paid, only $0.06 are
applied to City services. The actual amount of taxes owed is based on a property’s market
value, tax law, and the levy.
State $0.06
County Share
$0.14
The current GRT rate in Farmington is 8.375% on each
dollar of taxable sales. GRT collections are the City’s
largest Governmental Operation revenue source. In
FY2021, GRT was 66.4% of the total
governmental revenue of $90M.
For each $1.00 of Property Tax Collected
* **
For each $1.00 GRT Collected
Join us at the Farmington
Museum and Visitors Center
Tuesdays
4:00pm to 6:00pm
Saturdays
8:00am to 12:00pm
During the growing season
In FY2021, property tax
revenue for the City of
Farmington was $2.1M;
accounts for 2.3% of total
governmental funds revenue.
*New 5/8th GRT Increment Imposed
* All Council Meetings are held at 800 Municipal Drive.
March 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
Where the Money Comes From
8
Governmental Funds Revenue
Governmental funds are generally used to account for tax-supported activities.
Governmental funds include the General fund, special revenue funds, the Debt Service
Fund, and capital project funds. The major source of governmental revenue for the
City is Gross Receipts Tax (GRT), approximately 66.4%, followed by intergovernmental
and grants at approximately 21.0%. GRT (accrual basis) revenue increased by $608K or
1.0% compared to FY2020, primarily due to the imposition of new gross receipt tax
increments in FY2020, effectively raising the City’s GRT rate from 8.25% to 8.375%.
Operating grants increased by $11.5M as a result of increases in the general
government category for federal funding received from Coronavirus Aid, Relief, and
Economic Security (CARES) Act local government funding, CARES Act small business
funding and American Rescue Plan Act funding. Additional operating grants increased
for Red Apple Transit federal reimbursements, which was also a result of CARES Act
funding, revenue received for the Boys & Girls Club improvements state funding and
additional state funding for traffic grant reimbursements. General government
operating grants from state and federal funding for public safety, and Parks,
Recreation, and Cultural Affairs increased. However, operating revenues decreased for
public works and from Farmington Municipal Schools and San Juan County. Capital
grants and contributions decreased by $1.2M mainly due to a decrease in federal and
state funding for the airport. However, there were increases in federal funding for
public works and various traffic and road grant funded improvements. Charges for
services decreased by $162K or 6.6%. For more detailed information refer to the City
of Farmington’s FY2021 ACFR available at fmtn.org/406/Financial-Statements.
FY2021 and FY2020
Governmental Revenue by Sources Comparison
FY2021 Revenue by Sources
Governmental Revenue $90 million
April 2022
Sun Mon Tue Wed Thu Fri Sat
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
* All Council Meetings are held at 800 Municipal Drive.
Where the Money Comes From (continued)
9
The payment of Gross Receipts Taxes (GRT) is for the privilege of conducting
business in the State of New Mexico. Although GRT is imposed on businesses, it is
common for a business to pass the tax onto the purchaser buying it on the invoice
or combining the tax with the selling price. The amount of the tax varies by city/
county because the total rate combines the rates imposed by the state, counties,
and municipalities. At the end of FY2021, the GRT rate inside the City of Farmington
was 8.375%. The State of New Mexico Tax and Revenue Department collects the
tax (at full rate) through periodic filings from businesses and distributes to the City
of Farmington the state-shared portion of 1.225%, and the local (municipal) option
gross receipts taxes of 2.0625% to the City, for a total of 3.2875%. According to data
received from the State of New Mexico Taxation and Revenue Department, GRT
revenue on a cash basis is illustrated in the graph below.
Major Source of Governmental Funds Revenue — Gross Receipt Taxes (GRT)
FY2021
Total GRT Revenue (Cash Basis) $60 Million
Services Include:
Scientific, Management,
Admin & Support, Edu-
cational, Health Care,
Arts, Accommodation,
Other Services
Other Include:
Agriculture, Utilities,
Manufacturing, Trans-
portation, Information,
Finance & Insurance,
Real Estate, Public Ad-
min, Unclassified, Un-
disclosed
Information on this page is presented on a cash basis.
FY2021 saw a decrease of $.9M or (1.5%) compared to FY2020 due to decreases in
receipts from all sectors except for Retail. The Retail Sector saw significant increases
(15.5% or $3.9M) over FY2020. 48% of GRT revenue was derived from the Retail Trade
Sector, which increased in FY2021 as compared to FY2020. The importance of remaining
a regional center for retail activity is apparent. To remain a regional center, the City
works to facilitate, provide, and maintain a safe, convenient, and efficient multi-modal
transportation system to efficiently move people and goods; promote housing to meet
community needs by promoting orderly development that meets nationally standardized
codes; facilitate and encourage diverse economic growth and development; and provide
the necessary facilities and programs to meet the recreational and cultural needs and
desires of the community. The Other Sector decreased (24.2%) or ($2M), with decreases
seen in most categories including Real Estate Rental of (52.1%) or ($880k). The Mining
Sector decreased (51.4%) or ($1M), mirroring the current decrease in mining activity in
the county. Lastly, the Wholesale Sector decreased by $491K or (23%).
Comparison by Sector. Historical Trend
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
RETAIL TRADE SERVICES MINING WHOLESALE TRADE CONSTRUCTION OTHER
* All Council Meetings are held at 800 Municipal Drive.
May 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
National Peace
Officers
Memorial Day
Riverfest @ Berg/Animas Park
City Council
Regular Meeting 6 p.m.*
FY2023 Budget
Community Input Meeting -
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
Riverfest @ Berg/Animas Park
Riverfest @ Berg/Animas Park
Where the Money Goes
10
The City’s governmental funds spending in Fiscal Year 2021 reflects the priorities set by the City
Council. In FY2021, the City of Farmington maintained 30 governmental funds that provide basic
services, including public safety, community and economic development, public works, transit,
parks, recreation and cultural affairs, and a portion of public works. In addition, governmental
funds pay for capital projects and debt service. Overall, governmental expenditures in FY2021
decreased by $11.4M or (11.2%) compared to FY2020.
These decreases are attributed mostly to a reduction in operating expenditures for general
government and Parks, Recreation and Cultural Affairs operations as a result of the Governor’s
Order to shut down operations and the uncertainty of the future effects of the pandemic.
For public works, both operations and capital incurred significant investment costs in paving in
FY2020 that were not recurring in FY2021. Airport capital outlay decreased by $2.5M as the prior
year runway upgrade project was completed. Capital outlay fund expenditures for Police were also
reduced by $1.4M mainly as a result of the body camera capital outlay lease purchased in the prior
year. The Fire Department received capital outlay funding from the State of New Mexico to
purchase a new Ladder truck for $1.6M.
For a detailed breakdown of expenditures, please refer to the FY2021 Annual Comprehensive
Financial Report (ACFR) on the City of Farmington website fmtn.org/406/Financial-Statements.
FY2021 Governmental Expenditures $90 million
Public Safety reflects the expenditures associated with providing police and fire protection to the citizens.
General Government includes expenditures for the administrative offices including the City Council, City
Manager, City Clerk, Legal, Finance, Information Technology, and Human Resources divisions. Additional
costs include support for maintaining the airport, two golf courses, city buildings and vehicles, cost of bond
issuance, and the operational costs of the library and municipal court.
Parks, Recreation, and Cultural Affairs (PRCA) reflect expenditures associated with services that enhance
the culture of the community and include maintenance of parks, recreational activities, museum
operations, and theatrical productions.
Capital Outlay expenditures are for long-term assets exceeding $5,000 in value. These expenditures
support the operation of the City and include items such as buildings, infrastructure, property
improvements, and equipment.
Public Works expenditures cover the operating cost for providing citizens services related to community
development and improvement that include engineering, streets, building inspection, and planning.
Highways and Streets reflect the portion of expenditures for capital improvements to highways and
streets.
Debt Service is the portion of expenditures the City pays for principal and interest on its outstanding bonds
and loans.
$7M
7%
$15M
15%
$25M 26%
$9M
9%
$28M 29% Gen. Governm.
Public Safety
PRCA
Capital Outlay
Public Works
Streets
Debt Service
Governmental Expenditures. Historical Trend.
$M
$5M
$10M
$15M
$20M
$25M
$30M
$35M
FY17 FY18 FY19 FY20 FY21
General Government Public Safety Parks, Recreation, and Cultural Affairs Highways and Streets Public Works Capital Outlay Debt Service
* All Council Meetings are held at 800 Municipal Drive.
June 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
City Council Regular Meeting 6 p.m.*
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
The Fund Balance (equity) is the amount by which a fund’s assets exceed its liabilities. A fund
balance demonstrates financial stability. The fund balance of the City’s governmental funds was
$38.05M at the end of FY2021, an increase of $13.9M, or 57.6% compared to the prior year. An
unassigned fund balance provides working capital for the City and can be used as a hedge against
future uncertainties. A total of $23.5M unassigned fund balance is available for spending at the
City’s discretion.
Five-Year Financial Trend
The General Fund is the most significant of the City’s governmental funds. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
Within the 5-years from FY2017 to FY2021, revenue increased by 15.9%, expenditures decreased by
16.4%.
Other Governmental Funds (excluding the General Fund) are funds which are used for recording
resources whose use has been limited by the donor, grant authority, governing agency,
or other individuals or organizations or by law. For FY2021, expenditures exceeded revenue by $.7M
From FY2017 to FY2021, revenues increased by 6.8%, expenditures increased by 49.0%.
The City of Farmington Maintains 30
Individual Governmental Funds
General (major)
GRT Streets
GRT Parks
GRT Public Safety
GRT Comm Trans Econ Development
Library Gifts and Grants
Parks/Recreation Gifts and Grants
County Wide Senior Services
Museum Gifts and Grants
CARES Act
Red Apple Transit Grant
General Government Grant
CDBG Grant
Lodgers’ Tax
Convention Center Fees
State Police Protection Grant
Region II Narcotics Grant
COPS Program Grant
Law Enforcement Block Grant
State Fire Grant
Penalty Assessment
Community Development Grant Projects
GRT Bond Projects
GRT 2017/2018 Bond Projects
Governmental Capital Projects
Airport Construction Grant Projects
Metro Redevelop Authority
Park Development Fees
Convention Center Capital Projects
Debt Service
Governmental Funds Fund Balance
Five Year Trend
General Fund Revenue and Expenditures
Five Year Trend
11
10
20
30
40
50
FY17 FY18 FY19 FY20 FY21
In
M
i
l
l
i
o
n
s
Unassigned Fund Balance Gov. Funds Fund Balance
10
20
30
40
50
60
70
80
FY17 FY18 FY19 FY20 FY21
$57 $59 $59 $60
$70
$55
$61 $59 $64
$56
In
M
i
l
l
i
o
n
s
Revenue
Expenditures
10
20
30
40
FY17 FY18 FY19 FY20 FY21
$36 $44 $38
$22
$39$26
$43 $40
$23
$39
In
M
i
l
l
i
o
n
s
Revenue Expenditures
Other Governmental Funds Revenue and Expenditures
Five Year Trend
* All Council Meetings are held at 800 Municipal Drive.
July 2022
Sun Mon Tue Wed Thu Fri Sat
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24/31 25 26 27 28 29 30
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
City Council
Regular Meeting 6 p.m.*
City of Farmington
Fireworks Display
@ Dusk
Sanitation
Business-Type funds
Electric Utility
Business-type funds report activity for goods and services that generate revenue,
similar to private enterprise. Revenues should cover the expenses associated with
operations. In FY2021, the City of Farmington maintained four business-type funds:
Electric Utility, Water, Wastewater, and Sanitation.
Water/Wastewater Utility
The Electric Utility Fund reflects the revenues generated from charges for electric
power sold to area residences and businesses. In FY2021, total Electric Enterprise
operating revenue was lower than FY2020 revenue by $866K or 0.9% due to an
overall decrease in demand. The Farmington Electric Utility System is your electric
utility that constructs and maintains infrastructures associated with providing
electricity to residents. The utility generates electricity through the Bluffview
Power Plant, Navajo Dam Hydroelectric Plant, and San Juan Unit #4.
The City provides water and wastewater services for residents and businesses
within the city limits. In addition, other water providers outside the city limits
purchase water from the City. Total Water Enterprise operating revenue
decreased $195K or 0.9% and Wastewater Enterprise operating revenue
decreased by $60K or 0.5% compared to FY2020.
Sanitation provides services through a contract with Waste Management. In
FY2021, total Sanitation Enterprise operating revenue increased by $92K or 1.3%
due to a higher demand for sanitation services.
Electric Utility Operating Revenues and Expenses
Water/Wastewater Utility Operating Revenues and Expenses
Sanitation Operating Revenues and Expenses
12
* All Council Meetings are held at 800 Municipal Drive.
August 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
City Council
Regular Meeting 6 p.m.*
13
Statement of Net Position (Citywide)
The Statement of Net Position is a condensed view of the City of
Farmington’s assets and liabilities, with the difference between
reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether the City
as whole is financially improving or deteriorating from the
previous year.
Net Investment in Capital Assets
The largest portion of the City of Farmington’s FY2021 net
position of $531.5M or 100.5% of the total net position reflects
its investment in capital assets (land, buildings, machinery,
equipment, and infrastructure). This component is reported as a
net amount after the removal of related debt. These assets are
not available for future spending.
In FY2021, $6.7M or 1.3% of the City’s net position was
restricted. Restricted means that these resources are subject
to external restrictions on how they may be used (for example,
debt service, capital projects, and law enforcement).
The final component of net position is unrestricted net position,
a resource that can be used to meet ongoing obligations to
citizens and creditors. Unrestricted net position totaled ($9.3M)
or (1.8%) of the City’s net position in FY2021.
Unrestricted Net Position
Restricted Net Position
Net Position Five Year Trend
* All Council Meetings are held at 800 Municipal Drive.
September 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30
Totah Festival
@ Civic Center
WE Rock Nationals
Chokecherry Canyon
Four Corners 4x4 Week
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
Downtown Farmington Downtown Farmington
9/11 Memorial
Stair Climb
New Mexico Finance Authority represents five loans. The first loan ($2.1M), obtained
in January 2010, was used to improve approximately 13,900 feet of existing waterline
in the City’s Water Utility System. The second loan ($475K), obtained in January 2010,
was used to purchase two new fire pumpers. The third loan ($4.1M), obtained in January 2013,
is being used to replace and upgrade water meters. The fourth loan (Phase I, II, and III of the
construction) is to replace existing 6" and 8" cast iron waterlines in US 64 from Sandstone Ave
to Camina Flora. The 2P waterline project was divided into three separate loans. Phase I
($3.2M), Phase II ($2.6M), and Phase III ($2.9M) have all been completed and the loan amounts
have been established. The fifth loan was obtained in FY2021 for the Pinon Hills Golf Course
($436K) for the purchase of new maintenance equipment at the golf course.
City Debt
The City of Farmington approaches issuance of debt for capital projects from a conservative
viewpoint. The assumption of debt requires a dedicated revenue source to meet the respective
bond payments. The main revenue source of the Enterprise Fund debt is generated from charges to
customers for services provided. The main revenue source for governmental funds debt is the
availability of Gross Receipts Tax revenue associated to specific projects. This process ensures the
City of Farmington continues to receive the lowest possible interest rate by maintaining an AA–
underlying bond rating from Standard & Poor’s and an A1 underlying rating from Moody’s.
General Government Sales Tax Bonds. In FY2017, new bonds were issued. A portion
of these bonds ($10.2M) was dedicated to expand the Civic Center and the rest
($4.7M) to fund upgrades on city-owned facilities in an effort to reduce energy costs.
In December 2017, the City entered into a $7.4M loan for the issuance of the State Shared Gross
Receipts Tax Refunding Revenue Bonds, Series 2017. These bonds were issued for the advance
refunding of the Series 2012 bonds. As a result, Series 2012 bonds are considered defeased. In
March 2018, the City issued $16.6M bonds. A portion ($1.0M) was used to refund the Series
2005 bonds. The rest of 2018 Series bonds will be spent on several projects such as purchase of
two fire trucks, improvements to the City trail system, Complete Streets Downtown
Revitalization Project, and the construction of the Bisti Bay at Brookside Park waterpark. In June
2019, the City issued $10.9M bonds to be used for paving projects throughout the City of
Farmington as part of the Public Works—Streets long-term capital improvement plan.
New Mexico Environment Department Loans are low interest loans. The loans were
obtained to upgrade and expand the wastewater treatment plant and for the
downtown revitalization stormwater management project. In 2007, the City entered
into a loan for $14.2M for expansion of the wastewater treatment plant. In FY2015, The City
entered into a loan agreement ($14M) to improve the City's existing Wastewater Treatment
Facility. The loan was increased to $22M in FY2016. The City entered into a third loan ($2M)
during FY2020, the Storm Drain Clean Water State Revolving Fund loan, for the Downtown
Revitalization Stormwater Management Project. The project was completed in FY2021.
Total City’s Outstanding Debt
As of June 30, 2021
Capital Lease was used to procure new police cameras for the Police Department. The
police cameras are valued at $1.2M. This agreement qualifies as a capital lease for
accounting purposes and, therefore, has been recorded at the current remaining
rental payments excluding any interest.
14
Outstanding Debt Historical Trend (In Millions)
As of June 30, 2021
* All Council Meetings are held at 800 Municipal Drive.
October 2022
Sun Mon Tue Wed Thu Fri Sat
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23/30 24/31 25 26 27 28 29
Road Apple Rally @ Lions Wilderness Park
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
City Council
Regular Meeting 6 p.m.*
What We Accomplished
2019 Paving Bonds Streets Improvements
The Community Works Department completed the $13.1M 2019 Paving Bonds
project in FY2021. Many streets within the city limits, including 3,231 linear feet of
Main Street, were brought up-to-date on maintenance and repair using many
different technologies, including High Density Mineral Bond, Micro Paving,
Open Graded Friction Course (OGFC), and Mill and Paving. A new
maintenance plan was initiated by Community Works to keep the street
maintenance current going forward.
15
Main Street / Downtown Revitalization
One of the larger capital projects to be completed in FY2021 was the $13.3M
Complete Streets downtown revitalization project. Funded by a 2018 gross
receipts tax (GRT) bond series, Clean Water State Revolving Fund, Mainstreet
Capital Grant, Community Transformation and Economic Development Fund,
Water Utility Fund, Electric Utility Fund sponsorship, and Streets, Parks, and
Metropolitan Redevelopment Agency funds, the project was designed to make
downtown safer for all users, from those walking the streets, shopping, to those
commuting in vehicles. The revitalization included fewer traffic lights, fewer lanes,
more parking, wider sidewalks, roundabouts, and additional green spaces that
ensure safety and ease of access to businesses, restaurants, and entertainment in
historic downtown - the Heart of Farmington.
Totah Theater Renovation
Utilizing $1.0M of State Capital Outlay and $275k of local Economic Development funds, San
Juan County and the City of Farmington partnered together to renovate the old Totah Theater
in downtown Farmington to serve as the headquarters for Totah Studios joint venture.
Originally built by Allen Theaters in 1949, the newly renovated theater will be used for film
screenings and live entertainment events, while the upper floors will house office space
available for film and TV industry rental.
* All Council Meetings are held at 800 Municipal Drive.
November 2022
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
City Council
Regular Meeting 6 p.m.*
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
Where We Are Headed
Airport Runway 5/23 Rehabilitation and Taxiways B & G Relocation
In FY2022, two major projects are taking place at the Four Corners Regional Airport: the Rehabilitation of Runway
5/23 and the Relocation of Taxiways B & G. The work on Runway 5/23 will address the much needed repairs to the
runway surface before the anticipated arrival of regional jet service in the coming years. The rehabilitation was
originally scheduled out a few years but was bumped up to lessen the effect the construction would have on an
airline once flights started in and out of the airport. The Relocation of Taxiways B & G will bring the airport into
compliance with clearance requirements for the regional jet service, for which the airport is currently operating
under a temporary waiver. Both capital projects have been planned and completed in the fall of 2021. The projects
together are budgeted at $11.3M in FY2022 and are funded for the most part by FAA and New Mexico state grants.
Water Treatment Plant 1 Improvements
The Water Enterprise Fund will begin work on the
Improvements for Water Treatment Plant 1 (WTP 1)
based on the Preliminary Engineering Report that took
place last year. The updates to WTP 1 will address the
anticipated growth of the City and provide reliable
service for the next 20-25 years. The remainder of the
planning and beginning construction of the WTP 1 will
begin in FY2022 and is budgeted at $7.0M ($14.0M
total project cost). 16
* All Council Meetings are held at 800 Municipal Drive.
December 2022
Sun Mon Tue Wed Thu Fri Sat
1
2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Riverglow
@ Berg Park
City Council
Regular Meeting 6 p.m.*
City Council
Regular Meeting 6 p.m.*
City Council
Work Session 9 a.m.*
Meet the Councilors
2
Councilor
Linda Rodgers
District 1
Councilor
Sean Sharer
District 2
1
I enjoy spending time
with my husband,
Kenneth and son,
Joshua.
Councilor
District 3
Jeanine Bingham-Kelly
3 4
Janis Jakino
Councilor
District 4
I enjoy the many things to do in
Farmington, from the variety of
entertainment to supporting our
local heroes at the 9/11 Stair
Climb. 17
Meet my rescue dog,
Hattie. They say saving
one dog will not change
the world but surely for
that one dog, the world
will change forever.
I love spending time with
my beautiful wife, Jessica,
and my daughter,
Scarlett.
Letter from the City Manager
This Mission is strengthened by three core
employee values. We call these
“Farmington 3-S”
1-S Safety: We will create a safe and wel-
coming environment for ourselves, fellow
employees, and citfzens.
2-S Service: We will be friendly, respectiul,
and exceed customer expectatfons.
3-S Stewardship: We will work hard with
integrity and effectfvely manage our re-
sources.
I am truly grateful and humbled by the
opportunity to live in a great city among
such exceptfonal community members. I
am honored to serve as your City Manager
and to collaborate with and guide a great
group of employees as we work together
to fulfill our City vision, mission, and val-
ues.
Respectiully,
Robert Mayes
18
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19