Good Fiscal News In Farmington For 2023-24

FARMINGTON, CT — The town's top elected board earlier this month signed off on the 2023-24 budget, adding more than $3 million to Farmington's surplus and covering some overages in other areas.

The Farmington Town Council Sept. 10 unanimously transferred $3.08 million into the town's "undesignated fund balance," which is, essentially, a municipal savings account.

As a result, the Town of Farmington's surplus is now $23.44 million, or 18.23 percent of the approved budget for 2024-25.

Such surpluses are seen as necessary to receive both good bond ratings and be prepared should any fiscal emergencies arise.

Farmington learned recently its bond rating was, again, AAA from Moody's, making it easier for the town to secure good interest rates to pay off debt, something that also saves tax dollars.

Surpluses can be utilized in the event of emergency situations for unexpected, but necessary, expenditures such as emergency repairs and/or sudden revenue losses.

In all, the town budgeted $121.27 million for the recently completed fiscal year, but spent $120.63 million, for a $637,762 difference.

That difference is added to $2.44 million in unexpected revenue taken in by the town, leading to the ultimate $3 million plus surplus in favor of taxpayers.

Among the reasons for the added revenue are more cash than expected collected for property taxes, license/permits, and additional grants and investment income.

Reduced expenditures also led to the $3 million-plus surplus, with staff turnover, benefit savings, and contractural services all coming in less than budgeted.

Farmington Town Manager Kathleen A. Blonski briefed the council on the budget situation, with council members not discsusing the matter prior to the vote.

As part of the motion, the council transferred a total of $242,700 from surplus areas of the budget to parts of the budget that exceeded budgeted amounts for 2023-24, a common, post-fiscal year administrative action.

Line items requiring more cash last fiscal year were the fire department, building inspector's department, recreation, the town manager's office and the registrar of voters, among others.

For the minutes of the Sept. 10 Farmington Town Council meeting, click on this link.

For the complete breakdown of the 2023-24 budget surplus, click on this link and scroll to Page 36.