Fairfax approves $19M budget for next fiscal year

The Fairfax Town Council has unanimously approved a $19 million budget for the 2024-25 fiscal year, which takes effect on July 1.

The town conducted budget workshops on May 8 and May 22 to refine the spending plan. The council voted on the budget at its meeting on Wednesday.

The town will operate on a general fund budget of $14.5 million. Revenues are expected to be about $12.1 million, but several departments spent less than anticipated, and revenues were higher than expected in the current fiscal year, according to a town staff report. The town is ending this fiscal year with a $5.4 million surplus.

The town is projecting higher-than-expected reserves of 41.2% after originally projecting 26.3%. The reserve is expected to be drawn down in the next year because of proposed road projects and significant annual increases in the expenses from the Ross Valley Fire Department, which will result in an additional cost of approximately $400,000 annually.

The budget includes $1.33 million for debt service and other special funds and $3.03 million for capital improvement projects, according to a staff report.

Town staff have designated for $905,000 for road maintenance and improvement projects; $1.4 million for bridges; $245,000 for sidewalk repairs; $135,200 for storm water repairs; and $315,000 for facilities, parks, trails and town facility improvements.

Finance Director Michael Vivrette said expenses and revenue projections were reduced by 2% to allow for flexibility in the budget.

“I don’t like to go into a budget with stretched rubber bands,” he said. “I like to have a little bit of buffer in there to be able to allow for the fact that things happen down the way that don’t necessarily allow you to rely the projections you thought you’d have.”

The Town Council has also requested a more granular breakdown of the services offered by the contract town attorney, Janet Coleson.

According to the 2023-24 budget, the town attorney service had a projected cost of nearly $500,000. Coleson said the expenses were related to general services, with a cost of $296,149, and special services at $182,159.50.

The new fiscal year budget projects a cost of $340,000. Coleson noted that the town has completed the housing element update, which was included in the general services.

“It’s kind of early,” she said. “Especially, you have to understand it includes litigation which may end. It’s not an ongoing thing that always happens.”