City of Farmington Hills Gets Clean Audit Report

Despite a groaning national economy and dismal property values that are plaguing communities all over the country, a financial audit has revealed the City of Farmington Hills has it's financial house in sterling order. 

Accountants from the firm Plante & Moran presented the city's annual financial audit Nov. 28, lauding the city – and especially finance director Dave Gajda – for solid planning and foresight. The city was given an "unqualified opinion."

"That's the cleanest bill of health we can give," said certified public accountant (CPA) Doug Bohrer. "Farmington Hills is very well-managed in respect to its finances. The unqualified opinion is what bond agencies look for."

He especially noted the city's robust budget process and 6-year rolling capital improvement process as strong practices that have stood residents well in times when funds coming from property taxes are falling.

"The debt is less than $20 million," Bohrer said. "That's better than most cities this size."

Another CPA from the firm, Bill Brickey, said the city's general fund has decreased $1.8 million since last year, due to a decline in revenues based on property taxes. Added to that, the city continues to lose state shared revenues.

"The city has done a good job at controlling the cost side, there have been reductions in everything," he said. "The pension and retiree costs have been funded adequately, this is one of the few cities in the state that can say that." 

He said 45 percent of the city's expenses came from public safety costs. Only 24 percent of residents' tax dollars go to the city, almost 60 percent go toward educational taxing authorities, including , and another 16 percent to Oakland County.

Mayor Barry Brickner asked whether the audit's projections included the removal of personal property taxes, a plan being floated by some state lawmakers as a way to stimulate the economy.

"We didn't, but that would be about a $2.6 million hit to the city if there were no replacement tax," Bohrer said. "That would be devastating to many, many communities. The industrial ones, especially."