Politics & Government

Farmington Council Recap: Clean Audit, DDA Calendar

The city receives a clean report Monday from Plante Moran.

The City of Farmington's annual audit resulted in an "unqualified opinion" from auditors at Plante Moran, officials learned Monday. 

"It's the highest level of assurance," Plante Moran representative Dave Helisek said. "It means these statements fairly represent the city's financial position. It's what the city strives for on an annual basis." 

Associate CPA Kari Shea said the city's year ended with a "larger than expected" $2.3 million fund balance, $345,000 more than the prior year and 28 percent of the city's annual expenditures. She said the city's internal goal has been to have a reserve of 25 percent, as a hedge against unexpected expenses or drops in revenue.

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"We say aim at 10 to 15 percent minimum," Shea said. "Most cities are lucky to have 10 to 15 percent."

Total revenues were up 2 percent over the previous year, she noted, even though property tax values dropped by 14 percent from 2010 to 2011. In June, the city , shifting 2.0976 mills set aside for debt that was retired in November 2010 into the general operating fund, which increased from 12.1524 mills to 14 mills.

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Without that action, Shea said, the city's general fund would have dropped by $400,000.

She also noted improvements in the fund. After posting negative numbers in 2009 and 2010, the city-owned movie theater moved $15,000 into the black, "which was great to see." She said the transfer from the city's general fund to support the theater has dropped from $250,000 in 2009 to $65,000 this year. 

Helisek said the city has done a "great job" of addressing reductions in revenues from a loss in property valuation and state funding. "We commend the city for being proactive," he said. 

Farmington DDA plans for 2012

Council members on Monday also approved the calendar for (DDA) events, and took the first steps toward reauthorizing the DDA's Principal Shopping District (PSD) Special Assessment Renewal. 

DDA director Annette Knowles said the current special assessment, which comprises about 25 percent of the DDA's budget, expires on June 30, 2012. No increase is being requested, she added. 

Knowles explained that the city implemented the PSD in 1994 in response to a reduction in DDA revenues because of Proposal A property tax reforms. It captures a portion of the tax revenues generated in downtown Farmington, used largely for marketing and maintenance, she said. 

Approval of the PSD 5-year renewal requires a number of steps that include five resolutions and several public hearings. Officials unanimously approved the first resolution, requiring the DDA director and city manager Vince Pastue to submit a report, which will be presented on Jan. 17, 2012. 

Officials also approved the DDA's 2012 events schedule, including changes to the Downtown Farmington Founders Festival and Holly Days. Events planner Janet Bloom said the Founders Festival will run Thursday, July 19 through Saturday, July 21, in 2012. The 2011 festival included activities on Sunday. Holly Days will be held on Saturday, Dec. 1, rather than over two days as it was this year.

Other dates for 2012 events are:

Farmington Farmers and Artisans Market
Saturdays, 9 a.m.-2 p.m., from May 5 to Nov. 17

Art on the Grand
Friday, June 1 through Sunday, June 3

Rhythmz in Riley Park
Fridays, 7 p.m.-8:30 p.m., June 8 through Aug. 24

Harvest Moon Celebration
Thursday, Sept. 27 through Saturday, Sept. 29

Trick or Treating
Saturday, Oct. 27, hours to be announced

In addition, the DDA requested authorization for sidewalk sales on Saturdays during the Farmers Market, Friday nights June through August, Saturday and Sunday during Art on the Grand, and Friday and Saturday during Founders Festival. 


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