Farmington Millage Holds Steady, Water and Trash Rates Rise

Farmington residents whose home values don't change won't see a change in their 2013-2014 property tax bills, either. But everyone will pay more for water and trash collection.

City officials on Monday approved the 2013-2014 budget, which maintains the millage rate and leaves a fund balance that covers 25 percent of the city's operating budget. Employees who three years ago took a 5 percent pay cut to help balance the budget will get 2 percent of that back. 

City manager Vince Pastue said a 4 percent bump in water and sewer rates reflects increases imposed by Detroit Water and Sewerage Department. Later in the meeting, officials also approved a small increase in fees for curbside trash, recycling and leaf pick-up to cover increased costs. 

The good news, Pastue said, is that the city's overall taxable value increased by .1 percent. And while that might not seem like much of an increase, the number is at least headed in the right direction.

"We've actually turned the corner for the first time in five years," he said, "and other major revenues are increasing." 

Challenges that lie ahead, Pastue said, are retiree health care costs, the unknown impacts of the federal Affordable Care Act, loss of Personal Property Tax revenues and funding for capital improvements like street, sidewalk and building repairs. Council member Bill Galvin cast the lone vote against the budget, saying he wanted to see the city start saving for future capital needs.

"You always and every year need to feed your capital improvement fund," he said. "We can't start funding (it) the year before it runs out or we need a big repair." 

Budget highlights

• The 2013-2014 budget reflects the first full year of annual savings generated by sharing dispatch services with the City of Farmington Hills, Pastue said. It's also the first full year of the city's economic and community development strategy, which included hiring an economic development director and making Farmington Downtown Development Authority director Annette Knowles assistant to the city manager.

• The Farmington Civic Theater will implement a digital projection system in the coming year, at a cost of around $150,000. Theater manager Scott Freeman's contract has been adjusted as well, with an increase in base pay and reduced commission. At a previous meeting, Pastue said the difference amounts to a few hundred dollars. The theater is expected to generate a $17,000 profit. 

• Construction projects in the 2013-2014 budget will include Grove Street, which is currently underway, Oakland and Warner Streets and Drake Road, which begin later this year. The city-owned parking lot behind Page's Food and Spirits on Farmington Road will also be improved.