The Farmington City Council voted unanimously to approve the fiscal year 2025 fourth-quarter financial report and to adopt the city's final fiscal year 2026 budget.

Staff presented the fourth-quarter report (Resolution No. 2025-2002) and said the city reported approximately $335.1 million in revenues and $294.6 million in expenditures for FY25 on a cash basis, leaving an ending cash balance of roughly $206.4 million. The city reported total invested assets of about $162.9 million and said it earned $5.7 million in interest income during the fiscal year.

Jim Cox, staff member, explained the cash-to-accrual adjustments that appear in the quarter report and described the city's investment mix: $37.3 million in certificates of deposit, $41.7 million in money-market holdings (maintained largely for capital-project liquidity) and $83.9 million in government-backed securities. "That is, roughly 51.5%" of invested dollars, Cox said of the government-backed portion.

Councilor Rogers asked whether interest income was allocated to the general fund; Cox said interest earnings are allocated across funds each month by fund-cash balances rather than being credited exclusively to the general fund. Rogers also asked about a $6.6 million reserve and Cox said the reserve is a Department of Finance Administration (DFA) requirement (it was waived during COVID, he noted) rather than a state statute.

On the budget, staff asked the council to adopt a final FY26 budget (Resolution No. 2025-2003). The final budget increases total revenues by about $4.5 million over the interim budget and requests carry-forward authority for roughly $8.9 million in unspent FY25 purchase orders and related cash. Total proposed FY26 expenditures in the packet were presented as approximately $379.6 million; staff said carry-forwards and grant adjustments account for much of the change from the interim budget.

Councilor DeChino moved to adopt Resolution No. 2025-2002 approving the FY25 final-quarter financial report; Councilor Chiquino seconded and the motion carried. Later the council adopted Resolution No. 2025-2003, the final FY26 budget, by a 4-0 vote after a motion by Councilor Aquino and a second by Councilor Rogers.

Staff said monthly budget adjustments will continue to be brought to the council if additional grants or operational changes occur. The adopted final budget incorporates carry-forwards for purchase orders that could not be completed by June 30 and reflects the city's intent to spend designated loan and grant balances in coming fiscal periods.