Farmington council adopts sixth FY2026 budget revision, adds $3.8M recreation grant

Farmington City Council adopted the sixth revision to the fiscal year 2026 budget, approving revenue increases of $4,200,000 and expenditure increases of $3,400,000, City Treasurer Jim Cox told the council.

Cox said the largest single item in the revision is a $3,800,000 New Mexico Regional Recreation Centers and Quality of Life grant earmarked for projects including the Boundless Journey Adventure Park, Gateway Park and Plaza, and Story Farmington. "This one's a very unique adjustment... we have to expend it by June 30 of this fiscal year," Cox said.

Councilors asked detailed questions about line items. Councilor Rogers pressed about reinsurance payments and Cox confirmed an approximately $430,000 reinsurance receipt being booked as revenue to cover related expense lines. Councilor Duqueno asked about a $105,000 allocation from GRT surplus for traffic signal replacement; staff said the city often replaces critical infrastructure first and then pursues recovery from liable parties' insurers, noting that claim recovery processes can take months.

Cox also described a net $890,000 decrease tied to previously budgeted capital outlay for the Pinon Hills project, reflecting timing and contract delays; the overall adjustments push total city expenditures above the $400 million mark for the fiscal year.

The council voted to adopt resolution 2026-2024 approving the budget revision; the motion carried 4-0. Cox said the city will now request state approval where required for the adjustment and proceed to spend the grant funds within the stated deadline.

What happens next: staff will reconcile fund accounting and proceed with grant expenditures and procurement as needed; council questions indicated interest in following claim recoveries and project timelines (traffic signals, Pinon Hills, Boundless Journey Adventure Park).