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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 Sign Up Today! Be Prepared & Stay Informed Emergency Notification Text 87401 to 888777 Utility Notification Text FMTNUTILITY to 888777 Public Safety Notification Text FMTNPS to 888777 Traffic Notification Text FMTNTRAFFIC to 888777 Community Notification Text FMTNEVENTS to 888777 Register to customize your alerts local.nixle.com/city/nm/farmington facebook.com/cityoffarmingtonnm youtube.com/c/CityofFarmingtonNewMexico505 Please visit City of Farmington website to: • Pay utflity bills • Watch live streaming of Council meetfngs • Access City Council agendas and minutes • Access forms for business licenses, well permits, and vendor registratfon • Apply for employment • Find informatfon about City events, constructfon alerts, and local attrac- tfons Our Facebook page provides daily updates about the City, such as: road constructfon alerts, utflity service alerts, civic center events, Police Department updates and alerts, and other notfficatfons. City of Farmington has a YouTube Channel, where we post videos with the City Mayor. Mr. Mayor invites you to listen as he and his guest discuss topics, important updates to our citfzens about the city life and functfonality. The main goal of this Project is to provide transparency on how the city officials work to improve quality of services provided to our citfzens and how the city funds have been managed. fmtn.org FarmingtonPoliceDepartmentNM @farmingtonpolicenm @FPDNM 19