Council to discuss water and solid waste rates
at the working session of November 1
Farmington City Council looked into the details of the 2022 budget proposal in a recent business meeting.
CFO Chris Regis provided the board with an update on the status of the capital projects fund, special income funds and corporate fund budgets. Council has approved the draft budget and will adopt the final levy and budget at the December 6 city council meeting.
The board has been working on a draft budget since June and asked the CFO to provide an update during the business meeting.
The capital project funds consist of three funds, including the general equipment fund, the cable commission fund and the maintenance fund.
“The city maintains the General Equipment Fund for purchases of capital goods using dollars from the general fund, such as police equipment, fire equipment and vehicles for the benefit of the general fund”, Regis said.
The General Equipment Fund includes transfers from the General Fund which covers police equipment for $ 110,000, fire fighting equipment for $ 25,000, police vehicles for $ 176,000 and city vehicles for the general fund for $ 199,000.
Two other funds under the Capital Project Funds are the Maintenance Fund which covers budgeted large-scale maintenance and replacement costs for streets, trails and facilities based on current improvement plans. fixed assets. The cost of controlling the emerald ash borer tree disease (emerald ash borer) and the maintenance of township roads are budgeted for in this fund, Regis said.
“General fund transfers include $ 650.00 for pavement management, $ 1350.00 for trail maintenance, $ 50,587 for building maintenance, $ 10,000 for EAB and $ 9,000 for the maintenance of township roads, ”Regis said.
As part of the corporate funds, the budget includes the city-owned liquor store fund, the street lighting fund and the long-term plans created for water, storm water, sanitary sewers and solid waste.
“Alcohol (the fund) is recovering from the effects of COVID-19 in 2021,” Regis said.
The downtown liquor store recently moved to Farmington Mall, off Highway 3. Liquor sales of $ 1,264,734 were down slightly from budgeted August 31, but the store downtown was closed for about six weeks while the store moved. Pilot Knob Road City Liquor Store reached 81.76% of budget with a total of $ 2,323,839 as of August 31st.
“The 2022 budget for alcohol operations reflects improved sales figures for both sites,” Regis said. The Liquor Fund will make a budgetary transfer of $ 63,466 to the General Fund to cover administrative costs, payroll, human resources, finance and administration.
The Liquor Store Fund will transfer $ 75,000 to the Park Improvement Special Income Fund.
The city’s administrative team and leadership have created long-term plans for sanitary sewers, solid waste, storm water and water funds, Regis said.
“These long-term plans include historical and estimated operating expenses, future capital investments, development costs and the impact these factors will have on user rates,” said Regis.
The Public Lighting Fund also falls under the Corporate Fund in the city’s 2022 budget. “The city owns and maintains lampposts primarily in the downtown area and the Vermillion River crossings,” Regis said. The remaining streetlights are owned and operated by the electric utility companies of Xcel Energy and Dakota Electric.
Three funds report to the Special Revenue Funds which covers the Farmington EDA (Economic Development Authority), the Ice Arena Fund and the Park Improvement Fund.
The Executive Director of Dakota Broadband (DBB) is factored into the EDA budget. Under the interchange agreement, all of the director’s human resources costs are borne by the city and reimbursed by the DBB. For the 2022 budget, there is a budgeted transfer from the general fund to the AED in the amount of $ 50,000.
Regis said the Ice Arena Fund’s budget has been prepared in the same way from year to year, with the budget passed in 2021 having the arena producing a small surplus.
“The current proposed budget does not include fee increases for 2022; However, fee increases are considered before final budget approval, ”Regis said.
In the Parks Improvement Fund, the fund records operations and activities related to the collection of park opening fees for the construction and improvement of the city’s parks and trails network.
Regis said: “For 2022, the fund (Park Improvement Fund) has budgeted costs of $ 157,500 with a transfer of liquor production revenues of $ 75,000 and revenues of $ 36,600.”
City council plans to start further discussions on long-term plans for sanitary sewer, water, stormwater and solid waste charges and tariffs at the city council’s November 1 working session.