Fairfax adopts fiscal year 2025–26 operating and capital budget, with bigger capital program and preserved reserves
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Summary
The council adopted the town’s FY 2025–26 budget with planned appropriations of roughly $15 million and a $5.3 million capital-improvement program. The budget preserved the council’s 25% reserve policy, restored one police position, funded stormwater work largely via ARPA, and included higher election costs tied to certified recall activity.
The Fairfax Town Council adopted the fiscal year 2025–26 operating and capital budget at its meeting, approving roughly $15 million in general‑fund sources and a $5.3 million capital-improvement program (CIP).
Finance Director Michael Vivrette presented the consolidated budget and highlighted several changes from the draft council considered in June: the unfreezing of a long‑vacant police position, updated estimates of Ross Valley Fire’s contract costs, and increased election costs related to the recently certified recall petitions. The budget maintains the council’s reserve policy (25% of general‑fund expenditures) and shows an estimated general‑fund beginning balance and reserves of about $4.7 million (roughly 33% reserve coverage).
Key capital items in the adopted CIP include a federally funded Meadoway Bridge effort (previously covered by council action), a major storm‑drain project budgeted at roughly $1.76 million (largely supported by federal ARPA funds), and improvements to Station 21 estimated at $1.5 million (projected to use a loan). The budget also includes road projects totalling about $740,000 this year and the creation of a road‑improvement fund to hold earmarked road fees and impact money.
Vivrette told the council that property taxes remain the town’s largest revenue source, expected to provide about $6.2 million for the year, and that sales‑tax projections were cautious but positive. He noted a prior‑year restatement to record a loan receivable and explained that the town began recognizing a previously omitted $210,000 loan to a housing project after that borrower indicated it would begin making scheduled payments.
Council discussion revisited the long‑standing debate over pavement funding and debt-service choices. One council member said the town should redirect more discretionary funds toward road repairs; others noted the town’s historically conservative reserves and multiple constrained revenue streams for roads. Some residents urged faster pavement work and questioned whether the town should pursue a bond versus pay‑as‑you‑go repairs.
The council adopted the budget by roll call. Council members who voted yes included Mayor Liesl Blasch, Vice Mayor Stephanie Hellman and Council members Barbara Koehler and Garry Gellley; Council member Darren Guirangalli voted no, citing priorities he would have adjusted toward road funding.
Staff said the adopted budget will be posted as final, and any council‑directed adjustments (including grant and loan arrangements) will be reflected in mid‑year updates and subsequent capital planning.
