FARMINGTON -- The city of Farmington took in $2.8 million in revenue in 2021 above what it had projected to receive for its general fund.
For 2021, the city projected to receive $4.3 million in revenue for the general budget. The 2021 amended budget, which was approved by the council at its Jan. 10 meeting, shows the city actually received $7.1 million in revenue.
The biggest increases came from state and city sales tax revenues and building inspection fees. The city also received $769,123 in federal covid-relief funds in 2021, an unexpected revenue for the year.
For 2021, the city budgeted to receive $130,000 from building inspection fees. The actual amount was $541,377. For the city's sales tax, the budget showed projected income of about $1.5 million. Instead, the city received almost $2.6 million. For the state sales tax, the city received $1.58 million, compared to the budgeted amount of about $1.26 million.
The city exceeded its budgeted expenses by $2 million, which included transferring the covid relief funds to a separate account, transferring $318,000 to the street fund and transferring $500,000 to general fund reserves. The city also purchased a new fire truck for $603,000 that was not in the 2021 budget.
For the amended 2021 general budget, the city had about $7.4 million in revenue and $4.3 million in expenses, with a balance in the general fund of almost $742,000.
In a memo to Farmington City Council members about the amended budget, Mayor Ernie Penn gave the following highlights:
• City sales tax exceeded the budget by almost $990,000.
• Building inspection fees exceeded the budget by about $411,000.
• State sales tax exceeded the budget by $323,000.
• County turnback exceeded the budget by about $134,000.
• Franchise fees exceeded the budget by $79,000.
The street department's 2021 amended budget shows that it received $953,176 in revenue, with $735,000 in expenses, leaving a balance of $218,182.
The library's amended 2021 budget shows about $286,100 in revenue and about $257,000 in expenses.
City council member Linda Bell asked if city staff had any thoughts on how the budget could be more "on target" each year for revenue projections.
Penn responded that the city did receive a "substantial increase" in revenue in 2021 and he tends to budget conservatively on income and expenses. He said the 2022 budget should be closer to actual revenue.
The 2022 budget, approved Nov. 8, 2021, shows that the city projects to receive $5.4 million in revenue in 2022, which includes $767,000 from federal covid relief funds.
In other action Jan. 10, the city council agreed to extend the city's moratorium on requests to rezone land to multi-family residential for another six months, through July 10.
The moratorium does not affect any land that has already been rezoned MF-1 or MF-2.
The council first placed a temporary moratorium on such requests at its July 12, 2021, meeting to give the city time to adopt a new future land use plan and to review and revise the land use plan as it relates to multi-family residential development.
Mayor Ernie Penn said the Farmington Planning Commission asked for another six months to give the commission time to "tweak" zoning ordinances.
The moratorium ordinance directs the planning commission to continue its review to determine the appropriate locations for multi-family development on a scale that is compatible with the surrounding neighborhoods and road capacity. The council passed the ordinance with an emergency clause.
In other business, the council approved:
• An ordinance to require reinforced concrete pipe for residential and commercial storm drainage construction.
Floyd Shelley, public works manager, said the top-grade drainage pipes will benefit the city and eliminate drainage failures from future developments. The city presently is having to make repairs because of a lesser grade of pipe that has been used by developers and builders in the past.
"We're going to see these problems for many years to come," Shelley said. "As failures occur, we'll solve them."
The ordinance was approved with an emergency clause and will apply to any new developments. Projects that have already been approved by the city will not have to comply with the ordinance.
• An ordinance to rezone 12245 W. Highway 62 from R-1, residential, to R-O, residential-office, as requested by owner Jerry Coyle with Coyle Enterprises. Coyle said an attorney wants to purchase the lot and use it to build a new law office. Farmington Planning Commission unanimously voted in favor of the rezoning request at its Dec. 28 meeting.
• A resolution in support of an application for an Adequate Fire and Emergency Response grant to fund three new firefighter positions.
• A resolution setting a public hearing to discuss vacating an easement southwest of North Holland Drive and Serviceberry. This is at the request of Rausch-Coleman Homes.