The proposed study will look at land from the city's southeastern boundary, to County Road 5500 near McGee Park and the San Juan County Fairgrounds.
"I think it's a good thing," said Councilman Dan Darnell in a phone interview on Friday. "We're got a sewer line in and some infrastructure. I agree that we need to take a look at annexation. It just makes a lot of fiscal sense. I think there's a real advantage to coming into the city."
The unincorporated area along the highway experienced a boom in industrial and business development over the past decade, according to the study proposal.
Many of the businesses use city services and should be brought into the city's tax base.
If council grants approval for the study, the city's community development department will move forward with the study of the proposed annexation area, said Mary Holton, Community Development Department director.
The study will examine the cost of servicing the area and how much tax revenue the area's businesses would generate for the city by contacting San Juan County officials, water association personnel, large employers, businesses and property owners, she said.
"We won't really know what it'll do for the city until we do the cost-benefit analysis," said Mayor Tommy Roberts in a Friday phone interview.
Roberts said that he would guess that annexing land would be a net benefit to the city.
The annexation study proposal is the first in a phased plan to examine annexation in the area to the west of Farmington, he said.
Becoming part of Farmington could prove to be a benefit to residents in the area, he said.
"You could focus on the reduced cost of sewer and water services, having fire protection and law enforcement provided by the city," Roberts said. "My guess is that the perception of (benefits) would vary from landowner to landowner."