Fairfax council approves 5% utility tax to fund restored police position after extended budget debate

The Fairfax Town Council voted 4–1 Tuesday to set the town's utility users tax (UUT) at 5% for fiscal year 2025–26, a 25% increase from the current 4% rate, a move staff said will fund an unfrozen entry-level police position and reduce chronic overtime pressure in the department.

The Council adopted the rate after a long budget hearing that included a detailed presentation of revenue sources by Finance Director Michael Vifret and extended public comment. Vifret told the council the 5% cap in town code had previously existed and the tax could be set at that rate by council action; he said the town is projecting roughly $14.6 million in general fund revenues for the coming year and that the UUT increase would create an ongoing revenue stream to cover an unfrozen ongoing expense.

Vret said property tax remains the town's largest revenue source (roughly 58.6% of general fund receipts) and projected a small drawdown of reserves compared with prior-year assumptions. He identified public safety, particularly police and the Ross Valley Fire contract, as the largest areas of recurring expense.

Councilmembers pressed staff on overtime and hiring. The police chief explained that unpredictable overtime — covering sick leave, court time, training, special events and large incidents — means hiring a single officer will not eliminate all overtime costs immediately. The chief told councilmembers a newly hired lateral officer would reduce overtime faster than an entry-level hire but could start at a higher pay step. The chief estimated that filling the frozen position could conservatively reduce overtime by about $30,000 a year, but said full impacts depend on hiring timing and training requirements; a newly hired officer typically takes months before carrying a full solo shift.

Councilmember discussion reflected concern about longer-term budget choices and town staffing levels. Several speakers from the public urged restoring the officer to improve overnight patrol coverage; others urged caution and asked staff to show line‑item tradeoffs. At least one speaker urged redirecting franchise and utility receipts toward roads rather than general fund uses.

The council then voted on a resolution setting the UUT rate at 5% for FY 2025–26. The roll-call vote recorded Councilmember Egger, Councilmember Kohler, Vice Mayor Hellman and Mayor Blasch in favor and Councilmember Gearan Gellie opposed.

The council paused the meeting multiple times for public input and agreed to continue refining the proposed budget before a final adoption likely at a July meeting. Staff said they will incorporate additional clarifications and update the budget document based on council direction.

The tax increase takes effect for the fiscal year starting July 1; the county auditor will collect the tax and remit proceeds to the town. Staff recommended and the council accepted additional public outreach about the UUT cap and the option for high-usage customers to prepay the statutory annual cap (a procedural point discussed by staff during the hearing).

While voters previously authorized a 5% cap in town code, staff and some councilmembers agreed the preference is to use the Council process for timely action when funding an ongoing expense is necessary.

Looking ahead, the council and staff will continue to refine the FY26 budget, including capital and storm-drain projects, and will return for final budget adoption at a later meeting.

Ending: The UUT vote gives the town a new recurring revenue line expected to fund a restored police spot and modestly improve early‑morning patrol levels; the council signaled more budget detail will be returned before final adoption.