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Farmington, New Mexico Citizen’s Financial Report Fiscal Year Ended June 30, 2013 ---PAGE BREAK--- Financial Report Message 1 The Citizen’s Financial Report or the Popular Annual Financial Report (PAFR) is a summary of the financial activities for the City of Farmington and draws from the FY13 Comprehensive An- nual Financial Report (CAFR). The PAFR’s principal focus is the City’s governmental funds. This report contains summary information taken directly from the CAFR for Citywide net assets and business-type activities. The presentation of the PAFR is unaudited and departs from generally accepted accounting principles (GAAP) required in the CAFR. For interested users, copies of the City’s CAFR and audited GAAP-based financial statements, including disclosure notes, are available on the City’s website at www.fmtn.org, by contacting the Finance Department at 805 Municipal Drive, Farmington, NM, 87401, or by phone at (505) 599-1210. The information on pages 6 to 12 draws from the City of Farmington Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2013. For the past 19 years, the City re- ceived the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in government financial reporting. To receive a Certificate of Achievement, the City of Farmington must publish an easily read- able and well-organized Comprehensive Annual Financial Report that conforms to generally accepted accounting principles (GAAP). The City believes the FY13 CAFR continues to con- form to the Certificate of Achievement’s requirements and has submitted the current year report to the GFOA. The last 3 years, the City of Farming- ton has also submitted the PAFR to the GFOA and received the Award for Outstanding Achievement in Popular Annual Financial Reporting. To receive this outstanding achievement, the City must publish a PAFR that conforms to program standards of creativity, presen- tation, understandability, and reader appeal. An additional requirement is to have received the GFOA’s Certificate of Achievement for Excellence in Financial Reporting for the CAFR of the previous year. Table of Contents Financial Report Message 1 Letter from the Mayor/ Farmington Facts 2 Farmington at a Glance 3 What We Accomplished 4&5 Where the Money Comes From 6 Where the Money Goes 7 Five-Year Financial Trend 8 Business-Type Funds 9 Statement of Net Position 10 Where We are Headed 11 City Debt 12 Letter from the City Manager 13 Directory of Officials 14 ---PAGE BREAK--- Letter from the Mayor 2 Farmington Facts Location The City of Farmington is located at the confluence of the Animas, La Plata, and San Juan Rivers in the northwest corner of New Mexico. In- corporated in 1901 the City flourished into a regional center of com- merce and culture. It is the largest City in the Four Corners area, the point where the states of Arizona, Colorado, New Mexico, and Utah meet. Leadership The organization of the City leadership is a council-manager form of government. This system of local government consists of four council members elected by constituents from four voting districts and the may- or elected at-large. The strong political leadership of elected officials combines with the strong managerial experience of an appointed city manager. Elected council members represent their district to establish policies based upon citizens’ needs and wishes. In addition, the council fo- cuses 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 spokes- person for the City and 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. City Council from left to right District 4: Jason Sandel District 3: Gayla McCulloch District 1: Dan Darnell District 2: Mary Fischer On behalf of the Farmington City Council and the City’s management, it gives me great pleasure to present the City of Farmington’s Popular Annual Financial Report (PAFR) which provides a glimpse of the City’s financial performance for the fiscal year ending June 30, 2013. This report is intended to increase public awareness of the City’s financial activities this past fiscal year in an easy to understand format and provide a summary of the City’s financial health. The PAFR highlights the sources of our revenue to operate the City and how those same dollars are spent. The report is a recap of the City’s finances and economic condition and also points out the ongoing financial challenges and opportunities the City may face. At the close of fiscal year 2013 and looking back over the years, the local economy continues to be volatile. In FY2013, gross receipts tax (GRT) revenue decreased by as compared to FY2012. It was during FY2010 that the City experienced its largest decrease ever as GRT revenue dropped (17.3%) as compared to the highest year ever for GRT revenue in FY2009. By way of comparison, GRT in FY2013 totaled 8.5% less than FY2009 and reflects the declining change of the local economy. Although local natural gas extraction activities continued to weaken in FY2013, other industry sectors such as finance/insurance and utilities exhibited growth with jumps in GRT revenue of 27% and 25% respectively. Nevertheless, continued conservative spending practices contributed to the City’s primary operating fund, the General Fund, concluding FY2013 with a cash balance of $18.0 million when the transfer of $4.1 million to the City’s discretionary governmental capital fund during FY2013 is discounted. This compares to a cash balance of $16.2 million at the conclusion of the prior year. We know that the state of the national economy as well as reduced natural gas production will con- tinue to affect our local economy. Our region’s two coal-fired power plants are under increasing pressure to reduce emissions with three of the five units at Four Corners Power Plant scheduled for shutdown in the near future as well as two units at the San Juan Generating Station. These factors have the potential to create some large economic dislocations and produce an uncertain economic situation. As we move forward to meet the challenges of our changing economic environment, I and the City Council will continue to listen to the citizens and their concerns about the direction of the city. It is my desire that we work together toward long-term financial health and stability, along with a goal to maintain excellent service levels and a high quality of life for all who live, work, and play in Farmington. Thank you for taking the time to read this report as I hope you find it interesting and informative. We are continually searching for ways to serve you better. Please feel free to contact me or the City’s ad- ministration at (505) 599-1100 with any questions, concerns, or recommendations you may have. Thank you for the privilege of serving as your City’s mayor. Respectfully, ---PAGE BREAK--- Farmington at a Glance Form of government: Council-Manager Governing Body: Mayor elected at large to a four-year term; Four Councilors elected by district for four-year terms Incorporated: 1901 Estimated Population: 45,854 Area in Square Miles: 33.1 City-Wide Expenditures FY13: $188,093,557 Employees: 766 Major Services Provided: Police & Fire Protection Municipal Airport Library Parks Facilities: Pools - Brookside, Lion’s, Aquatic Center Outdoor Summer Theatre - Lions Wilderness Golf Courses - Civitan & Piñon Hills Museums - Gateway, E-3 Children’s Museum, Nature Center, Harvest Grove Farm Facilities - Civic Center, Senior Center, Recreation Center, Soccer, Softball, and Baseball Fields Yearly Events - Connie Mack World Series, Riverfest, Freedom Days, Totah Festival, Rod Run Block Party Water and Wastewater Utility Services Service Area: 33 miles Water Customers: 16,340 Wastewater Customers: 14,290 The water & wastewater services are managed and operated by CH2M Hill, a private company, which operates these City services pursuant to contract with the City. Electric Utility Services Service Area: 1,718 miles Electric Customers: 34,790 Navajo Dam Hydroelectric Capacity 30 Megawatts San Juan Unit #4 Coal Fired Capacity 43.4 Megawatts Animas Plant Natural Gas Capacity 24.68 Megawatts Bluffview Plant Natural Gas Capacity 63 Megawatts 3 Farmington at a Glance Farmington Top 10 Principal Employers - FY13 Employer Employees San Juan Regional Medical Center 1,407 Central Consolidated Schools 1,043 BHP Billiton/New Mexico Coal 1,026 Aztec Well Servicing 750 City of Farmington 714 Conoco Phillips 711 San Juan County 634 San Juan College 538 Bloomfield Municipal Schools 435 Aztec Schools 416 Sunday Tuesday Thursday Friday Monday Wednesday Saturday January 2014 5 12 19 26 6 13 20 Martin Luther King Jr. Day 27 7 City Council Work Session 14 City Council Meeting 21 City Council Work Session 28 City Council Meeting 1 New Year’s Day 8 15 22 29 2 9 16 23 30 3 10 17 24 31 Chinese New Year 4 11 18 25 ---PAGE BREAK--- Sunday Tuesday Thursday Friday Monday Wednesday Saturday February 2014 2 9 16 23 3 10 17 President’s Day 24 4 City Council Work Session 11 City Council Meeting 18 City Council Work Session 25 City Council Meeting 5 12 19 26 6 13 20 27 7 14 Valentine’s Day 21 28 1 8 15 22 Washington’s Birthday Regional Animal Shelter – The City of Farmington built a 15,660 square foot, one-story Regional Animal Shelter, which was completed in November 2013. The new Regional Animal Shelter has canine and feline adoption areas, an adoption lobby, offices, a canine maternity ward, a training room, stray holding rooms, surrender areas, and a spay and neuter clinic. The shelter has the capacity to provide housing and adoption services for 358 abandoned pets gathered throughout San Juan County, more than double the capacity of the old shelter. 4 What We Accomplished in FY13 Civic Center Remodel – The Farmington Civic Center received a makeover this year. The existing exhibit hall was remodeled into a grand ballroom. It can be divided into three small ballrooms or five meeting rooms. The remodel was completed in March 2013. ---PAGE BREAK--- What We Accomplished in FY13 Administrative Services • GFOA Distinguished Budget Presentation Award for FY2013 (16th Award) • Achievement of Excellence in Procurement Award for 2013 (6th consecutive year) City Clerk Business registrations/licenses issued 3,634 Requests to inspect public records 783 Library Library visits 427,659 Circulation 460,235 Number of computer users 90,218 Police Police reports 8,036 Arrests 6,132 Traffic citations 19,455 Fire Structure fires 50 Vehicle fires 19 Other fires 100 Rescue/Emergency calls 4,848 Other responses 2,561 Parks & Rec Parks & Rec participants 524,276 Museum Museum patrons 137,481 Farmington Indian Center Customers served 33,860 Restaurant customers 22,565 Bonnie Dallas Senior Center Meals served 43,526 Meals on Wheels 27,057 Civic Center Attendance 109,262 Events 1,242 Sycamore Park Community Center Participants 101,964 Events 18 Golf Golf participants 47,772 Airport Number of enplanements 17,401 Transit Number of minibuses/vans 15 Total ridership 133,580 Community Development Summary plats 46 Building permits issued 1,163 Permits for new single-family homes 92 Number of building inspections 4,573 Public Works Asphalt placed (sq ft) 127,539 Concrete placed (cu. Yd.) 615 Streets (miles) 276 State highway (miles) 17 Streetlights 4,298 Traffic signals 83 Electric Meter connections 8,367 Meter reads 525,035 Water New water meter installations 141 Water mains (miles) 340 Fire hydrants 2,576 Storage capacity 26,860 Wastewater Water treated (Mill of gallons) 4,452 Effluent treated (Mill of gallons) 1,815 Treatment capacity 6,670 5 March 2014 Sunday Tuesday Thursday Friday Monday Wednesday Saturday 2 9 Daylight Saving Time Begins 16 23/30 3 10 17 St. Patrick’s Day 24/31 4 City Council Work Session 11 City Council Meeting 18 City Council Work Session 25 City Council Meeting 5 12 19 26 6 13 20 First Day of Spring 27 7 14 21 28 1 8 15 22 29 ---PAGE BREAK--- Where the Money Comes From The major source of governmental revenue for the City is Gross Receipts Tax (GRT), approximately 70% for 2013, followed by intergovernmental and grants at approximately 13%. Although GRT revenue decreased 4.9% compared to FY12, Intergovernmental and grants increased by $2.4M or 5% due to increases in federal funding for public safety, community development, road improvements, and traffic improvements to name a few. For more detailed information refer to the City of Farmington’s FY13 CAFR available at www.fmtn.org. 6 2012 Total Governmental Revenue = $68.4 Million $50.4M 74% $1.6M 2% $4.3M 6% $258K 0.4% $1.2M 2% $2.8M 4% $5.3M 8% $672K 1% $1.7M 3% 2013 Total Governmental Revenue = $68.7 Million $47.9M 70% $1.3M 2% $4.1M 6% $76K 0.1% $1.1M 2% $3M 4% $8.7M 13% $652K 0.9% $1.7M 2% Gross Receipts Taxes Intergovernment & Grants Investment Earnings Property Taxes Charges for Services Other Taxes Licenses, Permits, & Fines Fines Miscellaneous Revenues 2013 GRT by Industry Sector Wholesale Trade $2.4M 5% Construction $2.8M 6% Other $6M 12% Retail Trade $19.7M 40% Services $16.2M 33% Mining $2.1M 4% The payment of gross receipts taxes is for the privilege of conducting business in the state. The State of New Mexico Tax and Revenue Department collects the tax through periodic filings from businesses and distributes the state-shared and local option gross receipts taxes to the City. According to data received from the State, the percent of total gross receipts collected by industry sector for FY13 is illustrated in the graph to the right. With 40% of the gross receipts tax revenue derived from the retail trade sector, the importance of re- maining a regional center for retail activity is apparent. To remain a regional center, the City of Farm- ington works to facilitate, provide and maintain a safe, convenient and efficient multi-modal transporta- tion system to efficiently move people and goods; promote adequate 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. Sunday Tuesday Thursday Friday Monday Wednesday Saturday April 2014 6 13 Palm Sunday 20 Easter Sunday 27 7 14 21 28 1 City Council Work Session 8 City Council Meeting 15 Passover City Council Work Sesion 22 Earth Day City Council Meeting 29 2 9 16 23 30 3 10 17 24 4 11 18 Good Friday 25 5 12 19 26 ---PAGE BREAK--- Where the Money Goes 7 In FY13, the City of Farmington maintained 19 governmental funds that provide basic services, including public safety, a portion of public works, parks, recre- ation and cultural affairs, and administration. Additional governmental funds pay for capital projects and debt service. Overall, expenditures in FY13 increased by $3.6M attributed mostly to capital outlay increase of $7.4M for the construction of a new Regional Animal Shelter, renovation of the Farmington Civic Center exhibit hall, purchase of a new fire engine, the Gateway Museum expansion, the replacement of the Aquatic Center roof, and remodel of Fire Station In contrast, expenditures in general government, public safety, and debt service decreased by $4.7M in FY13. Fewer liability claims, debt payments on bonds and loans, vehicle purchases, and health insurance premiums are a few of the expenditures that decreased. For a detailed breakdown of expenditures, please refer to the FY13 Comprehensive Annual Financial Report (CAFR) on the City of Farmington website www.fmtn.org. General Government includes expenditures for the administrative of- fices including the City Council, City Manager, City Clerk, Legal, Finance, and Human Resources divisions. Also included are the costs of support for maintaining the airport, city buildings and vehicles, and the maintenance of the transportation divisions. The cost of operation of the library is included in the general government category. Public Safety reflects the expen- ditures associated with providing po- lice and fire protection to the citizens. Parks, Recreation, and Cul- tural Affairs reflect expenditures associated with services that enhance the culture of the community and in- clude maintenance of parks, recre- ational activities, museum operations, and theatrical productions. Highways and Streets reflect the portion of expenditures for capi- tal improvements to highways and streets. Public Works expenditures cov- er the operating cost for providing citizens services related to community development and improvement that include engineering, streets, building inspection and planning. 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, in- frastructure, property improvements, and equipment. Debt Service is the portion of expenditures the City pays for prin- cipal and interest on its outstanding bonds and loans. $21.7M 28% $25.8M 33% $12.9M 17% $4.9M 6% $6.6M 8% $2.1M 3% $3.7M 5% 2012 TOTALGOVERNMENTALEXPENDITURES=$77.5MILLION $20.3M 25% $24.5M 30% $12.6M 16% $4.2M 5% $8.3M 10% $9.5M 12% $1.6M 2% 2013 TOTALGOVERNMENTALEXPENDITURES=$81.1MILLION Sunday Tuesday Thursday Friday Monday Wednesday Saturday May 2014 4 11 Mother’s Day 18 25 5 Cinco de Mayo 12 19 26 Memorial Day 6 City Council Work Session 13 City Council Meeting 20 City Council Work Session 27 City Council Meeting 7 14 21 28 1 8 15 22 29 2 9 16 23 30 3 10 17 24 31 ---PAGE BREAK--- Five-Year Financial Trend 8 $48.84 $50.34 $46.54 $45.69 $49.37 $53.22 $55.10 $49.14 $47.35 $51.58 $0 $10 $20 $30 $40 $50 $60 2013 2012 2011 2010 2009 Millions Expenditure Revenue 5 Year Financial Trend General Fund $19.84 $18.03 $21.02 $18.51 $17.87 $27.88 $22.44 $17.85 $21.97 $19.15 $0 $5 $10 $15 $20 $25 $30 2013 2012 2011 2010 2009 Millions Expenditure Revenue 5 Year Financial Trend General Fund General Fund The 5-year financial trend shows general fund expenditures have been exceeding rev- enues. The 5-year percent change in revenues from FY09 to FY13 in the general fund is a decrease of 1.07%. The 5-year percent change in expenditures from FY09 to FY13 is an increase of 3.18%. Gross Receipts Tax revenue decreased in FY13 by 4.9% compared to FY12. Due to the uncertainty of future revenues, a conservative budgeting approach has been adopted. Other Governmental Funds excluding General Fund Governmental fund expenditures have been exceeding revenues four of the past five years. In FY09, expenditures exceeded revenues by $2.21M and in FY10 by $3.46M. FY11 was the only year in the past five that revenues exceeded expenditures by $3.17M. For FY13 expenditures exceeded revenue by $8M. From FY09 to FY13, revenues have increased 11% while expenditures have increased by 45.6%. As a whole, Governmental fund expenditures have exceeded revenue. From FY09 to FY13 revenue has increased 2.1%, while expenditures have increased by 14.7%. Accessible resources, known as unrestricted net assets, are used to meet these expenditures and allow the City to continue services to the residents of Farmington. Sunday Tuesday Thursday Friday Monday Wednesday Saturday June 2014 1 8 15 Father’s Day 22 29 2 9 16 23 30 3 City Council Work Session 10 City Council Meeting 17 City Council Work Session 24 City Council Meeting 4 11 18 25 5 12 19 26 6 13 20 27 7 14 Flag Day 21 First Day of Summer 28 5 Year Financial Trend Other Governmental Funds (excluding General Fund) ---PAGE BREAK--- Business-Type Funds 102.1 20.2 6.4 85.0 14.9 6.2 95.7 20.5 6.5 84.1 14.8 6.3 $0 $20 $40 $60 $80 $100 ELECTRIC WATER/WASTEWATER OTHER BUSINESS TYPE FUNDS Millions 2013 Comparative Revenue and Expenses Business Type Funds 2013 Operating Revenue 2013 Operating Expense 2012 Operating Revenue 2012 Operating Expense Business-type funds report activity for goods and services that generate revenue, similar to private enterprise. Revenues should cover the expenses associated with operations. The City of Farmington maintained five business-type funds: electric utility, water, wastewater, sanitation, and golf. Electric Utility The electric fund reflects the revenues generated from charges for electric power sold to area residences and businesses. The Farmington Electric Utility System is your electric utility that constructs and maintains infrastructures associated with providing electricity to city residents. Water/Wastewater Utilities The City provides water and wastewater services for residents and businesses within the city limits. In addition, other water providers in the area purchase water from the city. Other Business-Type Funds For FY12 and FY13, the funds included are the sanitation fund and golf fund. Sanitation provides services through a contract with Waste Management. The golf fund provides services at Piñon Hills Golf Course to residents and businesses. 9 d b i Th F i El i U ili S Sunday Tuesday Thursday Friday Monday Wednesday Saturday July 2014 6 13 20 27 7 14 21 28 1 City Council Work Session 8 City Council Meeting 15 City Council Work Session 22 City Council Meeting 29 2 9 16 23 30 3 10 17 24 31 4 Independence Day 11 18 25 5 12 19 26 ---PAGE BREAK--- Statement of Net Position 10 Current and Other Assets are economic resources held with the expecta- tion of sale, conversion to cash, or use within the near future, usually twelve months. Capital Assets are the City’s capital investments in land, buildings, equip- ment, improvements, and infrastructure. These assets have a life longer than one year and support the mission of the City – to provide services to its citizens. These assets are long-term in nature and therefore not available for future spending. The Statement of Net Position is a condensed view of the City of Farmington’s assets and liabilities for all funds as of June 30, 2013 and 2012. The net position amount of $565.5M represents the amount the City owns com- pared to the $52.5M amount owed. Total net assets increased by 4.0% from FY12 to FY13. There was a decrease in unrestricted net assets of 0.79% while restricted assets decreased by 37.1%. The overall change in the amount invested in capital assets for FY13 is an increase of 7.1%. This increase reflects a 7.2% growth from FY12. The Governmental Activities percentage for capital investment increased by 13.4% while the Business-Type Activities investment in capital represents growth of 5.5%. Other Liabilities are the City’s payment obligations due within one year and include principal and interest on long-term debt due within the next fiscal year, accounts payable, and accrued items, such as payroll and interest. Long-term Liabilities are mainly debt obligations incurred by the City to finance major projects or large purchases. Net Investment in Capital Assets represents the City’s invest- ment in its capital assets less any related outstanding debt used to acquire those assets. Restricted Net Assets are resources subject to restrictions on how they may be used. The City of Farmington sets aside resources for debt service, prepaid items, and reserves required by statute. Unrestricted Net Assets are the accessible resources available to the City to provide services to the residents of Farmington if no additional revenues or resources were obtainable. 2013 2012 2013 2012 2013 2012 Restated Restated Current and other assets 52.7 $ 56.7 $ 116.3 $ 116.7 $ 169.0 $ 173.4 $ Capital assets 103.4 98.4 345.5 331.9 448.9 430.3 Total assets 156.1 155.1 461.8 448.6 617.9 603.7 Other liabilities 4.4 3.6 15.7 16.8 20.1 20.4 Long-term liabilities outstanding 20.3 22.6 12.1 17.2 32.4 39.8 Total liabilities 24.7 26.2 27.8 34.0 52.5 60.2 Net position: Net investment in capital assets 95.0 83.8 334.3 316.9 429.3 400.7 Restricted 8.3 11.0 1.7 4.9 10.0 15.9 Unrestricted 28.2 34.3 98.0 92.9 126.2 127.2 Total net position 131.5 $ 129.1 $ 434.0 $ 414.7 $ 565.5 $ 543.8 $ Total primary Government CITY OF FARMINGTON'S NET POSITION AS OF JUNE 30, 2013 (In Millions) Governmental Activities Business-type Activities Sunday Tuesday Thursday Friday Monday Wednesday Saturday August 2014 3 10 17 24/31 4 11 18 25 5 City Council Work Session 12 City Council Meeting 19 City Council Work Session 26 City Council Meeting 6 13 20 27 7 14 21 28 1 8 15 22 29 2 9 16 23 30 ---PAGE BREAK--- Where We are Headed 11 The City of Farmington develops a 5-year Capital Improvement Plan (CIP) to determine which capital projects will be funded. The process involves public input and council approval. For FY14, there are several new significant capital projects that will affect the financials of the City of Farmington. These projects include the construction of Fire Station remodel of Fire Stations #3 and fiber upgrades to several locations within Farmington, repairing or replacing 5 roofs on City-owned buildings, completion of Lakewood Detention Pond, construction of a 2nd Medium Rate Activated Sludge (MRAS) Basin, and Porter Arroyo Detention Pond. Fire Station #1 The capital project of replacing Fire Station #1 continues to progress. The final plans are anticipated to be presented to the Farmington City Council in 2014. Once approved by the City Council, the project will go out to bid for construction. Construction of the new fire station should begin in 2014. The new fire station will be completed in one phase and personnel will be re- located to a temporary facility during construction. This will ensure that service to the community will be uninterrupted throughout the duration of construction. The budget for the entire project is $3,200,000. Lakewood Detention Pond The construction of the Lakewood detention pond is anticipated to be complete in 2014. The detention pond will capture the flows from the west spur of the Carl Arroyo, which runs uncontrolled from the Tuscany Estates to the Animas River. As proposed, this detention pond will impound an unusually large storm event and release it at the 10yr historical flow rate. It will have an emergency spillway sized to accommodate flows from such an event. The detention area will be designed to drain in 96 hours per New Mexico Dam Safety Bureau requirements. The budget for the project is $1,000,000. Medium Rate Activated Sludge (MRAS) Basin The construction of a second MRAS Basin would allow expanded services to the residents of Farmington as well as provide the opportunity to take the existing MRAS offline for maintenance and repair. The current MRAS Basin has been in operation since 2004, 24 hours per day, and 365 days per year. For the City of Farmington to be compliant with the National Pollutant Discharge Elimination System (NPDES) permit, a second MRAS Basin must be constructed. Porter Arroyo Detention Pond This capital project is in the preliminary stages of the federal funding process through FEMA. The construction of the detention pond will protect Beckland Hills through the commercial property located along East Main from 30th street to 20th street east of Plaza Drive where the arroyo turns to the river. Additionally, it will assist in reducing scour and plugging of the crossings during peak runoff flows. The project is budgeted for $1,500,000 and is anticipated to begin in 2014 and completed by 2015. Sunday Tuesday Thursday Friday Monday Wednesday Saturday September 2014 7 14 21 28 1 Labor Day 8 15 22 29 2 City Council Work Session 9 City Council Meeting 16 City Council Work Session 23 First Day of Autumn City Council Meeting 30 3 10 17 24 4 11 Patriot’s Day 18 25 Rosh Hashanah 5 12 19 26 6 13 20 27 ---PAGE BREAK--- City Debt 12 The City of Farmington approaches issuance of debt for capital projects from a conservative viewpoint. The decision making process requires all capital projects to have a dedicated revenue source to meet the respective bond payments. Enterprise fund debt is based on the revenue streams generated from charges to customers for services provided. The criteria for issuance of general fund debt is the availability of gross receipts tax revenue directed to specific projects. This process ensures the City of Farmington continues to receive the lowest possible interest rate by maintaining an AA bond rating from Standard and Poor and an A1 rating from Moody’s. No new debt was incurred in FY13, however, the final payment was made on the 2002 Utility Revenue Bonds. Historically, the City has used five types of debt including Special Assessment Districts, Sales Tax Revenue Bonds, Utility Revenue Bonds, New Mexico Envi- ronmental Department Loans, and New Mexico Finance Authority Loans. Currently, the City’s debt of $24.4 million, a 19.3% decrease compared to FY12, includes Sales Tax Revenue Bonds, a New Mexico Environmental Department Loan, and New Mexico Finance Authority Loans. TOTAL CITY DEBT AS OF JUNE 30, 2013 (In Millions) General Government Debt, $12.840 NM Environmental Debt, $10.135 NM Finance Authority, $1.438 $0 $2 $4 $6 $8 $10 $12 $14 General Government Sales Tax Bonds were issued in FY05 to fund fire equipment and construct Fire Station In FY12, the City issued bonds to re- fund the 2001 revenue bonds, build the Regional Animal Shelter, renovate the Farmington Civic Center exhibit hall, expand the Gateway Museum, replace Fire Station and construct the Lake- wood Detention Pond. The debt repayment is from a portion of Gross Receipts Taxes. New Mexico Environment Department Loan is a low interest loan obtained in FY04 to upgrade and expand the wastewater treatment plant. The ex- pansion added 870,000 gallons of treatment ca- pacity. This loan is funded by charges for services. New Mexico Finance Authority represents two loans. The first loan, obtained in January 2010, was used to improve approximately 13,900 feet of existing waterline in the City’s Water Utility System. This loan is funded by charges for services. The second loan, funded by State Fire Protection Funds and obtained in June 2011, was used to purchase two new fire pumpers. Sunday Tuesday Thursday Friday Monday Wednesday Saturday October 2014 5 12 19 26 6 13 Columbus Day 20 27 7 City Council Work Session 14 City Council Meeting 21 City Council Work Session 28 City Council Meeting 1 8 15 22 29 2 9 16 23 30 3 10 17 24 31 Halloween 4 Yom Kippur 11 18 25 ---PAGE BREAK--- Letter from the City Manager 13 In the City of Farmington’s 2002 Comprehensive Plan - the Vision 2020 for our City is this, “Farmington is the progres- sive, vibrant, scenic, and safe - Center of the Four Corners - that: builds bridges among the people it serves and values the environment it occupies, the history it has, and the hope it offers.” This is a great vision for our community, one that we strive to uphold with each decision we make as a municipality. All the employees for the City of Farmington are working towards this vision by staying true to our Employee Team Mission: Working together to make Farmington a GREAT COMMUNITY! This mission is strengthened by five core employee values. Integrity - we strive to be honest and trustworthy, Respect - we respect self, others, and property, Service - we are friendly and exceed expectations, staying Safe while we work, and Quality - doing the best things the right way. These values guide us as we work together to make Farmington a GREAT place to live, learn, work, and play. I am honored to serve as your City Manager and to collaborate with and guide the City of Farmington employees as we work together to fulfill our vision and uphold our employee mission. Respectfully, November 2014 Sunday Tuesday Thursday Friday Monday Wednesday Saturday 2 Daylight Saving Time Ends 9 16 23/30 3 10 17 24 4 City Council Work Session 11 Veteran’s Day City Council Meeting 18 City Council Work Session 25 City Council Meeting 5 12 19 26 6 13 20 27 Thanksgiving Day 7 14 21 28 1 8 15 22 29 ---PAGE BREAK--- Directory of Offi cials 14 Directory of Offi cials City Manager Robert Mayes 599-1114 Assistant City Manager Bob Campbell 599-1102 City Attorney Jay Burnham 599-1124 City Clerk Dianne Smylie 599-1106 Director of Administrative Services Andy Mason 599-1367 Director of Community Development Mary Holton 599-1285 Director of Human Resources Tom Swenk 599-1133 Director of Information Technology James Campbell 599-1218 Director of the Library Karen McPheeters 599-1275 Director of Parks, Recreation, & Cultural Affairs Cory Styron 599-1402 Director of Public Works David Sypher 599-1283 Fire Chief Terry Page 599-1431 Police Chief Kyle Westall 599-1039 Electric Utility Director Mike Sims 599-1165 Government Relations Director Elizabeth Isenberg-Phelps 599-1419 December 2014 Sunday Tuesday Thursday Friday Monday Wednesday Saturday 7 Pearl Harbor Day 14 21 First Day of Winter 28 1 8 15 22 29 2 City Council Work Session 9 City Council Meeting 16 City Council Work Session 23 City Council Meeting 30 3 10 17 Hanukkah 24 31 New Year’s Eve 4 11 18 25 Christmas Day 5 12 19 26 Kwanzaa 6 13 20 27 ---PAGE BREAK--- City of Farmington 800 Municipal Drive Farmington, NM 87401 For More Information City of Farmington website: www.fmtn.org The City of Farmington’s website provides information about City policies, services, and events. The website contains information on employment op- portunities, construction alerts, community events, local attractions, and much more. Residents can take advantage of on-line services: • Utility bill payment • Download City Council Agendas and Minutes • Access forms for business licenses, well permits, employment applications, and vendor registration • Find your voting district • Contact your council representative For additional information regarding financial matters of the City of Farmington, please contact Finance at (505) 599-1210