Fairfax reviews $15.9 million draft budget and warns of cuts if June sales-tax measure fails

The Fairfax Town Council reviewed a draft $15.9 million operating and capital budget on May 6, with staff warning that local sales-tax revenue will shape services next year.

Michael Vibrette, who presented the budget, said the town's projected general-fund sources total about $15.9 million and that property taxes remain the largest single source at roughly $9.0 million, or nearly 57 percent of general-fund revenues. "We have approximately $15,900,000 that we're accounting for here," he told the council as he reviewed revenue assumptions and departmental requests.

Why it matters: the town projects a beginning reserve above its 25 percent policy but said the budget includes conservative assumptions and that the council must act now to adopt a balanced spending plan by the June meeting. Staff said it trimmed about $1.2 million from department requests to preserve reserves and central programs.

The proposed budget allocates the largest share of appropriations to public safety (police and fire). Staff noted the Ross Valley Fire contract is largely fixed by a joint-powers agreement and welcomed council input on what to prioritize if revenues fall.

Options and scenarios: staff described three budget scenarios. "Budget A" maintains current services if the proposed sales-tax renewal/increase (Measure J) passes; "Budget B" is a worst-case scenario with no sales-tax revenues and an illustrative 10 percent cut across departments; and a middle "Budget C" would reflect a later ballot result (for example, passing in November) that creates a shorter funding gap. Council members pressed staff for concrete numbers on the timing and potential cash-flow gap, and staff explained that property-tax tranches arrive at distinct times of year and that a conservative reserve is intended to buffer cash shortages.

Public input and council questions: during public comment residents pressed for greater transparency about attorney spending and urged the council to consider reallocation of certain supplemental funds (for example, festival and zero-waste fees) to local programs. Council members asked for follow-up: a dollar figure for interest paid on Measure K bond service, clearer slide titles in public materials, and a comparative analysis with nearby jurisdictions' reserve policies.

Next steps: staff said the budget will be revised based on hearing input and updated projections and that the council is scheduled to adopt a final budget at its June 3 meeting. If Measure J fails, staff said it will return with detailed proposals on specific cuts and next steps rather than enact immediate cuts without further council direction.