Duke University Energy Initiative City of Farmington, New Mexico Rob Mayes, City Manager
I. Provide a brief overview of Farmington and it’s economy 2
City of Farmington Trade Area According to the US Economic Development Agency, through its Cluster Mapping Project, the Colorado Farmington Economic Trade Area (outlined in Utah black) encompasses San Juan County, NM Colorado counties: Archuleta La Plata Dolores Montezuma Farmington Hinsdale San Juan The economic trade area population is approximately 220,980 people. Not included in the trade area, but because of Arizona Farmington’s proximity and media market extension, the population should include portions New Mexico of Apache County, AZ and San Juan County, UT (Four Corners) bringing the population to approximately 307,250 people. Source: www.clustermapping.us 3
City of Farmington 4
City of Farmington 5
City of Farmington 6
City of Farmington - Demographics Gender Demographic Farmington MSA FEMALE m ALE City of Farmington 50.8% 49.2% 49.3% 50.7% 7
City of Farmington – Demographics Cont’d City of Farmington Farmington MSA Black or African American Native Hawaiian and Other Asian Native Hawaiian and Other Asian Black or African American 0.33% Pacific Islander 0.71% Two or More Race Pacific Islander 0.53% 0.86% 0.18% Two or More Race 3.18% 0.23% 4.23% American Indian and Alaska Native White White American Indian and Alaska 22.65% 38.56% 64.87% Native Hispanic or Latino 22.82% 36.87% Hispanic or Latino White, not Hispanic or Latino 15.08% 77.18% White, not Hispanic or Latino 5.09% 8
Top 10 Employers in San Juan County % of Total % of Total Employer Employees Employer Employees Employment Employment San Juan Regional 1. 6. 2.7% 1,500 775 1.4% City of Farmington Medical Center Farmington 1,247 705 1.3% 2.2% Conoco Phillips 2. 7. Municipal Schools Central Consolidated 637 1.1% San Juan County 1,028 1.9% 3. Schools 8. BHP Billiton – New 527 1.0% 931 1.7% San Juan College 4. 9. Mexico Coal Bloomfield Municipal 775 1.4% 427 0.8% Aztec Well Servicing 5. 10. Schools 9
II. How have cycles in oil and gas activities affected public finances? 10
City of Farmington GRT – 36 Year History $65 $55 $45 (-17.49%) AMOUNT Millions $35 (-4.49%) $25 (-1.07%) $15 (-16.84%) $5 FISCAL YEAR 11
III. How does the unpredictable nature of oil and gas development affect budgeting? 12
City of Farmington GRT $65 $61.70 Negative variance $60 14.1% growth in of 19.2% between CPI from FY09 FY15 actual $55.86 revenue and $55 inflation growth 5.1% below $54.78 (CPI) FY09 Millions $53.01 17.5% drop in revenue from $51.63 $50 FY09 to FY10 $50.13 $49.23 $47.92 $46.09 $45 $40 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 GRT Revenue GRT Revenue With CPI Growth 13
Gross Receipts Tax by Sector $60 $ In Millions $50 $40 $30 $20 $10 $0 RETAIL TRADE HEALTH CARE SERVICES OIL AND GAS WHOLESALE TRADE CONSTRUCTION OTHER TOTAL ALL SECTORS Services include: Professional & Technical, Management, Administration & Support, Educational, Arts & Entertainment, and Food Service. 14 Other include: Agriculture, Transportation & Warehouse, Manufacturing, Utilities, Information & Cultural, Finance & Insurance, and Real Estate, Rental & Leasing.
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IV. What lessons can Farmington offer other local governments? 16
Industry Targets – Four Corners Economic Development • 63% of New Mexico’s water flows through San Juan County. Agriculture • The San Juan Basin is well suited for production of biofuels, agrotourism, and pairing the production of food with food processing. Energy / • Economic activity ranging from natural resource production and power generation to manufacturing, assembly, transportation, and data centers. Manufacturing • Opportunities exist to capitalize on the region’s natural resources, infrastructure, production capacity, and know-how from years of drilling in the San Juan Basin. Tourism • There are several tourist attractions within an hour and a half drive from Farmington including, San Juan River, Chaco Culture National Historic Park, Aztec Ruins, and Canyon de Chelly National Monument to name a few. • San Juan College is one of the top community colleges in the nation. Education • The School of Energy at San Juan College offers specialized training in oil and gas. Health • Healthcare is becoming an increasingly significant component of the economic base in San Juan County. • San Juan Regional Medical Center is nationally recognized in fields such as cardiac, stroke and orthopedic care. Services Location • Location neutral wage earners that derive income from outside the community and spend money within the local community will enjoy the relative rural setting, access to nationally acclaimed medical and educational opportunities, and the unique recreational Neutral and cultural activities in the Four Corners region. 17
Conclusion Work intentionally to create a vision and strategies for economic development and diversification…but, don’t underestimate or underappreciate Retail and Services . 18
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