FARMINGTON — At the selectmen meeting on Dec. 10, Town Manager Erica LaCroix noted her one-year anniversary as the town’s manager was Dec. 11 and gave an overview of her first year, suggested changing from calendar to fiscal year [July 1 – June 30].

“This transition year has been one of catching up and moving forward,” she noted. “Without a full-time manager at the helm, some things were put off and others fell through the cracks. The department heads did a fantastic job in the interim, and I’m thankful that they had the knowledge, skills and dedication to operate without a leader at the helm for almost a year. When you see one of them, thank them for their service.”

Finances are stable with a healthy fund balance, LaCroix said. “However, due to the calendar fiscal year [a system abandoned by all but a handful of municipalities] none of these funds can be used to offset the budget,” she noted. “The budget year starts in January and the first taxes aren’t collected until November. Thus, the entirety of the reserve funds need to be used for daily operations for the first 10 months of the year. The budget isn’t approved until three months into the year so no projects or capital spending can start until at least April.”

In January, then-selectman Stephan Bunker said it was worth having a discussion on Farmington changing to fiscal year budgeting.

State, county, education, ambulance and several other service contracts use a fiscal year that starts on July 1, leaving many unknowns in budget preparation since those costs aren’t known before the annual town meeting, LaCroix noted in her Dec. 10 report.

“The town has come very close to needing to borrow money for the last two years” LaCroix noted. “This costs the taxpayers, either in interest lost by taking funds out of the sewer fund, or interest paid to a lending institution.”

Selectmen in August voted to borrow money from the sewer fund balance instead of taking out a tax anticipation note [TAN] to cover expected shortfalls before the start of tax payments coming in.

Farmington would benefit from conversion to a July to June fiscal year, LaCroix stressed in her report. It could be accomplished with a short-term six-month budget covering January through June followed by a 12-month budget starting in July, she explained.

“Taxes on the six-month budget would be due in the spring, and taxes on the full year budget would be split into a fall and spring payment, LaCroix noted. “This will not cost taxpayers any more in their tax bills, it just changes the timing, and will ensure that the town’s fund balance remains liquid until revenues start coming in.”