Farmington Officials Approve Millage, Rates, Budgets

Although the way it all adds up has changed, the 's property tax millage remains the same for the 2011-2012 fiscal year.

Officials were required to pass a balanced budget before June 30, the end of this fiscal year, and they did just that Monday night. City Manager Vince Pastue explained that 2.0976 mills set aside for debt that was retired in November 2010 has been shifted into the general operating fund, which increases from 12.1524 mills to 14 mills. There was enough left to increase the road improvement millage from .75 to 1 mill.

The city's overall budget is about $13.8 million, with $7.9 million in the general operating budget. The water and sewer fund accounts for the next largest share, at just more than $5 million.

The general fund budget preserves an estimated $2 million fund balance carried forward from 2010-2011.

Pastue presented officials with a comparison of millage rates from other cities, and officials seemed satisfied with Farmington's place in the middle of the list.

"I didn't feel we were so out of line with other communities," council member JoAnne McShane said.

"You always have to be compared to something to be able to judge your efforts in a fair way," council member David Wright added, "and I think we stand up fairly well."

Wright said his one concern is "that we are deferring out needs on the capital side. That can't continue indefinitely."

Water and sewer rates increase

While the city's share of property taxes won't change, residents will see significant change in their water and sewer bills with the approval of higher rates for 2011-2012. A monthly fixed charge from the Detroit Water and Sewerage Department is now incorporated in residents' monthly billing, along with the water-consumption charge that pays for the costs of operating the system.

Pastue said the average water bill is expected to go up 15 percent. "Those that have had little consumption will see a higher percentage increase," he said.

Wright noted that last year's originally proposed water and sewer rate increase was 9 percent, and officials finally settled on 5 percent. He asked what would have happened if officials had gone with the higher rate.

Pastue estimated the increase would not have been much different, probably 11 percent. He explained that staff didn't know whether a decline in water use was an anomaly.

"We came to the conclusion this is pretty much a change in consumption patterns," he said.

"So if you want to water your lawn, do it before July 1?" Wright asked.

"Yes, but I'm not sure why you'd want to," Pastue said, referring to this year's wet spring.

Other business

Council members voted to cancel their June 20 meeting; Pastue said the few items that would need attention could be handled at a study session later in June or early July. A date for that meeting will be set.

In other business, officials:

• approved a 20111 capital improvement bonds bid of 4.077583% from Milwaukee-based Robert W. Baird & Co. "We're delighted with the rate we received and with the number of bids as well," Pastue said. The bonds will fund projects that include sewer work in the Floral Park subdivision;
• adopted ordinance revisions to reflect a new state law that prohibits elected officials from serving as voting members on appointed boards, including the Zoning Board of Appeals and Planning Commission, and reducing the size of the Planning Commission from nine members to seven;
• adopted ordinance revisions that allow business licenses and massage facility licenses purchased in the last quarter of a year to extend into the next year, and that change late fees from double the original fee to a penalty established by council resolution;
• adopted the (DDA) $894,500 annual budget, which maintains the principal shopping district assessment at $216,000. The budget represents a $59,300 reduction from last year. The resolution includes a caveat that city officials want more information before a planned $40,000 market study is undertaken. Council member JoAnne McShane, who had high praise for last weekend's , said she hoped the DDA would "seriously look at not only growing, but also making existing events the best they can be. I don't want to see them get into financial trouble."
• approved what Pastue described as a "modest" $1 increase in residential recycling rates to $194.49 per year;
• awarded a contract for the city's 2011 road and water main replacement projects to Sole Construction, in the amount of $724,094.15, about $20,000 more than budgeted for projects on Thomas Street, River Glen Condominiums and on Hawthorne and Astor Streets. Pastue said enough money had been built in for contingencies on each project to cover the difference. 
• Approved a revised resolution approving outdoor liquor service for in downtown Farmington. Officials made the approval of their original resolution subject to receiving a license agreement and a letter. The Michigan Liquor Control Commission asked for a resolution without those conditions.