Farmington officials finalize new budget

FARMINGTON — At the Farmington City Council meeting June 16, the proposed budget for fiscal year 2025-26 was unanimously approved.

“I just want to thank the council for your support to change the allocation and maximize our allocation of the capital improvement millage fund,” said Farmington Mayor Joe LaRussa during the meeting. “I think that’s the right direction for the city, and it is maximizing our progress on capital improvement in which the voters voted.”

With the new budget, residents should expect their property tax bills to go up roughly 3%. This is reflective of the inflation rate, said David Murphy, city manager of Farmington.

This year, all funds — including the general fund, road fund, and water and sewer fund — total about $33 million, which is nearly $4 million dollars more than last year’s total of $29 million. In addition, more than $10 million was allocated to capital improvements.

The city has many infrastructure projects planned for the fiscal year, including about $1.56 million for Gill Road and $1.5 million for sewer lining.

“As a historic city that celebrated its bicentennial last year, one of our biggest challenges is infrastructure,” Murphy said. “Specifically, our sewer system is nearing the end of its useful life, and many of our old pipes will need to be lined in the near future.”

Other infrastructure projects include $553,000 for the Caddell Drain, $1.2 million for the pathway to Shiawassee Park, $321,000 for an art promenade, $575,000 for a sidewalk program, and $96,500 for tennis and pickleball courts.

The pathway to Shiawassee Park is funded primarily by grants totaling $1.05 million.

“(This project is) the exciting pathway that will connect the downtown to Shiawassee Park — the city’s largest park — overcoming the current challenge of a steep hill,” Murphy said in a statement. “This project is also special because on the top of the hill is a senior apartment building. This will give the residents a path to walk to the park.”

He noted that part of the project includes an art promenade.

The overall millage rate is set at 18.1618 mills for 2025-26. The township collects $1 for every $1,000 of a property’s taxable value, multiplied by the millage rate.

The millage rate includes 14.2318 mills for general operating expenses, 0.55 mill for capital improvements, 2 mills for the capital improvements millage fund, and 1.38 mills for the road improvement fund.   

“The city’s overall millage rate decreased this year from 18.2146 to 18.1618 mills, due to the Headlee rollback,” said Murphy.

The Headlee Amendment is one of two state policies — the other being Proposal A — which together limit what cities can collect from their tax base to 5% or the rate of inflation, whichever is less.

The city used $350,887 to balance the 2025-26 budget, leaving a fund balance of nearly $3.6 million in reserves. The revenue projected for the city of Farmington for the new fiscal year is more than $12 million in the general fund, which is an increase from last year.

City employment is stable, according to Murphy. No positions have been eliminated, reduced or added. This also means that there will be no changes in staffing levels for the city’s police force, firefighting crew or other emergency services.

“In 2024, we changed our ambulance/EMT service from Superior to use the city of Farmington Hills ambulance/EMT service,” Murphy said. “It will remain the same this year.”

Superior was a free ambulance service.

“This improvement in service comes with a cost, and the administration is working on plans to incorporate this cost into our existing budget,” Murphy said.

The city is growing with new businesses and more than 80 new housing units.

“I’m pleased with the responsible budget adopted for this fiscal year,” Murphy said. “This budget supports key priorities such as infrastructure improvements, public safety and economic development — all while remaining fiscally prudent.”