Fair Oaks Ranch council adopts 2025-26 budget, sets 28.53¢ tax rate and approves electronic bidding and EMS interlocal

FAIR OAKS RANCH, Texas — The Fair Oaks Ranch City Council on Sept. 18 adopted the city’s fiscal year 2025–26 budget, set a property tax rate of 28.53 cents per $100 of taxable valuation and approved a package of related measures that included a resolution authorizing electronic bidding and authorization to sign an interlocal agreement for fire protection and emergency medical services.

The budget ordinance, the second reading of the plan that takes effect Oct. 1, 2025, passed on a roll-call vote with six council members in favor and none opposed. The council also adopted an ordinance levying a property tax rate of 28.53¢ per $100, a rate the city said is effectively a 3.65% increase relative to the no-new-revenue rate used for comparison. The council separately approved a resolution required under Texas Local Government Code section 102.007(c) to ratify that the adopted budget will raise more total property tax revenue than the prior year.

Summer Fleming, the city’s director of finance, told the council that “This provision requires the city council to ratify by a separate vote any increase in property tax revenues resulting from the adoption of the annual budget.” Fleming said the adopted budget will raise $488,000 in additional property tax revenue compared with last year’s budget, and that roughly $157,000 of that increase is attributable to new property added to the tax roll this year.

Council members approved a separate resolution authorizing the city to use electronic bidding for formal procurements under the Texas Local Government Code. Clayton Holscher, the city’s procurement manager, described the change as an administrative modernization: “Essentially, we’re just modernizing this process and only swapping paper for digital copies.” Holscher said the city has been advertising projects on a bidding platform and proposes using Civcast to accept electronic bids; he told the council the platform would add roughly $100–$200 per project to accept bids and that the city advertises about nine projects per year, keeping expected annual costs under $2,000. He also noted a recent state legislative change that raised the formal competitive threshold from $50,000 to $100,000.

The council confirmed a slate of appointments to municipal boards and commissions and approved a new pay schedule for general government and public safety employees. Joanna Merrill, director of human resources and communications, summarized the pay plan: the city will move to a 30-step structure with 1.5% progression, place employees at or above market minimum plus one step to reduce compression, and make targeted market adjustments for hard-to-fill maintenance, utilities and public-safety positions. The council adopted the pay schedule by motion; staff said the change fits within the adopted 2025–26 operating budget with no additional budget amendments.

On development and utilities, the council indefinitely postponed action on a resolution related to rescinding prior approvals of a utility services agreement with AD Acquisitions LLC concerning water and wastewater service for an 80.69-acre parcel at 29850 Ralph Fair Road. City staff said they are negotiating a revised agreement that could include road reconstruction and waterline work and expect to return with a signed amended agreement within a few weeks.

After an executive session, the council considered an interlocal agreement with Emergency Services District No. 4 (ESD 4) for fire protection and EMS and authorized the city manager or mayor to sign the updated agreement once ESD 4 provides the fully executed document. The ESD requested three specific additions to the interlocal: a one-year written-notice requirement if funding is not appropriated, mutual waiver-of-performance language, and a stepped dispute-resolution process beginning with informal negotiation, then escalating to a mutually designated negotiator and, if necessary, to legal remedies. City staff advised the council the additions were acceptable and reported ESD 4 approved the updated agreement and would forward it for the city’s signature.

Votes at a glance: the council approved the consent agenda by voice vote; the FY 2025–26 budget ordinance and the property tax ordinance each passed on roll-call with six members voting for and none opposed; the ratification resolution under Texas Local Government Code §102.007(c) passed; the resolution permitting electronic bidding passed; the resolution postponing rescission of the utility services agreement was approved; multiple board and commission appointments were approved; the FY 2025–26 pay schedule for general government and public safety was adopted; and the council authorized execution of the updated ESD 4 interlocal agreement when received.

The council did not take final action on the developer’s utility services agreement; staff requested additional time to negotiate a revised agreement. Several items mentioned as part of the consent agenda — including a resolution authorizing placement of radar feedback signs, an interlocal with the City of Boerne for animal control, an agreement with the Lower Colorado River Authority for radio services, an agreement with PADI Engineering for SCADA support, and participation in the National Opioid Settlement — were approved on consent earlier in the meeting.

The council meeting opened at 6:30 p.m. and included one executive session for personnel and a later executive session to consult with legal counsel about fire and EMS contracting. No members of the public were recorded as speaking during the Citizens to Be Heard portion of the agenda.

Looking ahead, staff said they will return with the fully executed interlocal from ESD 4 for signature and expect to bring a revised utility/road/waterline agreement for the Corley tract back to council within a few weeks.