TOWN OF FAIRFAX
Budget Workshop
Fiscal Year 2025-2026
April 18, 2025
1 General Fund – Source of Funds
$14.5 Million
Property taxes 57.4%
Sales taxes 15.4%
Service charges 4.5%
Measure F 5.0%
Other taxes/fees 12.1%
Fund balance 5.6%
2 General Fund – Use of Funds
$14.5 Million
PUBLIC SAFETY 59.1%
TOWN ADMINISTATION 9.1%
DEVELOPMENT SERVICES 8.7%
PUBLIC WORKS 7.1%
PARKS & FACILITIES 2.8%
RECREATION/COMM SERV 2.4%
NON-DEPARTMENTAL 7.5%
3 General Fund – Appropriations
4 General Fund – Appropriations
Budgetary Challenges for 2025-2026
• Revenue Projections Have Cooled
Property Tax - FY26 projected +3.3% (FY25 projected is +6.4%] Sales tax up 2.2%-3.3% (per Avenu)
• Personnel
No new positions proposed
MOUs in place – COLAs applied per agreements
• Funding multiple priority projects with limited resources Fire Station tenant improvements (planned county loan) Storm drain project on Park Road (ARPA funded)
Funding sources for roads (general fund, Gas Tax, TAM Measure AA/A] Federal policy impact may increase inflation & costs, and lost grant revenues 5 General Fund – Appropriations
Highlights
General Fund Appropriations Increase by 1.8%
Most departments decreased from FY25
Fire +$236,500 +7.0%
Police +$335,500 +7.3%
Recreation +$62,600 offset by fees
6 General Funds
7 General Fund Appropriations
Department Summaries
Department Fund Budget Page
Police 411 32-33
Planning & Building 311 28-29
Environment 514 44
Recreation 617, 621, 622 51-53
General Administration 18-25
Ross Valley Fire 421 36
Public Works 510, 511, 512, 611 39-41; 46
Non-Departmental 715
8 55
Special Tax Revenues
9 Debt Service & Fiduciary Funds
10 Capital Improvement Appropriations
Highlights
CIP appropriations up by $1.8 million (59.6%) from FY25 •Road Projects - FY26 $790k (FY25 $795k)
• Fire Station 21 Improvements - $1.5m
• Planned 5-year county loan
• Payments from General Fund
• Stormwater Drains – Park Road
• Funded from existing federal ARPA revenues
• Total is $1,763,279 over two fiscal years
11 Capital Improvement Funds
12 Roads
• Road expenses for
FY26: $1,528,318
• Dedicated revenues
from Gas Tax, Tam A
and Building Fund
revenue (Road Impact
and Street Opening):
$867,441
• General Fund
contribution to roads:
$660,877
13 Capital Improvement Summary
14 Revenue Enhancement Options
Council action to raise UUT
from 4% to 5%
Raises $125,000
Increase Fees Requires a fee study.
Special Tax for Public Safety Requires supermajority vote of the people.
Road Bond Requires 2/3 vote of the people.
(Attempted and Failed in 2024)
Charter City Transfer Tax Requires 2/3 vote of the people. 15 Fiscal Year
2025-2026
Budget Workshop
Council Questions & Discussion
Budget Hearing: May 7, 2025
Budget Adoption: June 4, 2025
16