Fair Oaks Ranch council approves first reading of FY 2025–26 budget and sets tax rate at 28.53¢ per $100

The Fair Oaks Ranch City Council on Sept. 15 approved first readings of an ordinance adopting the fiscal year 2025–26 budget and an ordinance levying a property tax rate of 28.53 cents per $100 of taxable valuation, actions required before final adoption and tax-rate implementation.

Summer Fleming, the city's director of finance, told the council the proposed budget includes no change in the city's overall tax rate from the prior year and projects 2.2% sales-tax growth. "This proposed budget incorporates no change in the city's overall tax rate and encompasses all the service delivery and estimated sales tax growth at 2.2% over the prior year budget," Fleming said during the public hearing presentation.

Fleming said operating expenditures are increasing about 7.5%, while total expenditures including capital and transfers rise just under 5%. The proposed budget shows an operating surplus of a little more than $624,000 and is balanced after capital and transfers. The presentation said the operating reserve will increase to $5,310,000 (six months of operating expenditures) and unassigned fund balance is estimated at $2,470,000. The council-directed addition of a full-time drainage lead position was funded by a reduction in street-maintenance appropriations so that general-fund totals remain…