Fair Oaks Ranch City Council held its first budget workshop June 5, reviewing the fiscal year 2025-26 budget and approving a five-year financial plan, outlining the direction of the budget over the next few fiscal years.

Breaking it down

In the five-year plan, the following assumptions were made when considering the next budget:

• Maintain 50% operating reserve
• Use unallocated fund balance for one-time costs and tax rate stabilization
• Fund drainage/water projects through Certificate of Obligation bonds

These are assumptions for the budget, and the City Council can decide not to use debt to fund capital improvements.

During the meeting, Police Chief Todd Smith gave an overview of public safety expenditures planned for FY 2025-26. Public safety has an anticipated budget of $4.70 million, which includes the purchase of new vehicles and equipment for the police department.

Public Works Director Grant Watanabe said department expenditures would total around $3.52 million in FY 2025-26, providing funding for new equipment and vehicles, alongside the purchase of new radar feedback signs.

Separately, Council member Jonathan Swarek recommended examining the potential for in-house maintenance of potholes and other road repairs.

What’s next?

Multiple workshops are planned throughout the summer as City Council and staff shape the budget to meet the needs of the next fiscal year.

City Council will determine the maximum tax rate to consider for the budget in mid-August. The budget and tax rate will be adopted in September, effective the start of the next fiscal year Oct. 1.