Fair Oaks Ranch City Council will consider updates to budget policies during the Oct. 16 meeting, discussing the reserve balance and other policies.

The details

On Oct. 2, City Council held a workshop reviewing changes to financial policies, including changes to quarterly financial reporting, additional subsections and clarifications for financial procedures and modifications to expenditure control.

Of the presented changes, one of the most notable was the splitting of the city's governmental reserve. In previous budgets, the reserve balance was equal to six months of operating expenses, per city policy.

During the fiscal year 2025-26 budgeting process, council discussed updating the reserve policy to give more guidance on reserve fund uses.


Under the proposed changes, the reserve will be split into two balances totaling six months of operating expenses.

Director of Finance Summer Fleming said the plan is to create an emergency reserve, which keeps four months of operating expenses to be used in an emergency. This reserve will have strict usage requirements.

The other reserve is for budget stabilization, being used to minimize tax impacts or target revenue shortfalls. This reserve will be less restrictive.

“This structure provides stability and flexibility, ensuring that we maintain a strong safeguard while also giving council the ability to respond to changing needs,” Fleming said.


Fair Oaks Ranch City Council will consider action on the budget policy changes during the next meeting Oct. 16.