TOWN OF FAIRFAX
Budget Workshop
Fiscal Year 2025-2026
July 16, 2025
1 General Fund – Source of Funds
$15.0 Million
Property taxes 56.3%
Sales taxes 14.0%
Service charges 4.7%
Measure F 5.3%
Other taxes/fees 15.0%
Fund balance 5.2%
2 PROPERTY TAX
3 SALES TAX
4 General Fund – Use of Funds
$15.0 Million
PUBLIC SAFETY 59.3%
TOWN ADMINISTRATION 10.0%
DEVELOPMENT SERVICES 8.4%
PUBLIC WORKS 7.0%
PARKS & FACILITIES 2.8%
RECREATION/COMM SERV 2.2%
NON-DEPARTMENTAL 7.6%
5 General Fund – Appropriations
6 General Fund
Budgetary Challenges for 2025-2026
• Revenue Projections Have Cooled
Property Tax - FY26 projected +3.3 % over FY25 actual
Sales tax up 3.7% (per Avenu)
• Personnel
No new positions proposed. One unfrozen Police Officer 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 (Federal 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 7 General Fund – Appropriations
Highlights
8 General Fund Appropriations Increase by 4.8%
Most departments decreased from FY25 budget
Fire +$301,400 +9.0%
Police +$556,000 +12.0%
Recreation +$50,400 (offset by increased revenue )
General Funds
9 Special Revenue Funds
10 Debt Service & Fiduciary Funds
11 Capital Improvement Appropriations
Highlights
CIP appropriations up by $2.3 m (76%) from FY25 budget
•Road Projects - FY26 $740k (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 $1.76m over two fiscal years 12
Capital Improvement Funds
13 Roads
• Road expenses for
FY26: $1,536,300
• Dedicated revenues
from Gas Tax, Tam A
and Building Fund
revenue (Road Impact
and Street Opening):
$867,400
• General Fund
contribution to roads:
$668,900
14 Capital
Improvement
Summary
15 Revenue Enhancement Options
Council action to raise UUT
from 4% to 5%
Raises $140,000+
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. 16 Fiscal Year
2025-2026
Budget Hearing
Council Questions & Discussion
Budget Adoption: July 16, 2025
17