Fairfax approves budget for 2025-26 fiscal year
Fairfax has adopted a balanced budget for the fiscal year and included $123,400 for election costs related to the recall effort.
The Town Council voted 4-1 on Wednesday to approve the $15 million operating budget for the 2025-2026 fiscal year.
“I’m thinking we did some really good budgetary discipline in the last three years I’ve been on the council,” said Mayor Lisel Blash, one of the recall targets. “We’ve always had a clean audit, healthy reserves and a balanced budget.”
Councilmember Mike Ghiringhelli, the dissenting vote, said he disagrees with the town’s financial policies. He said more money needs to go toward roads.
Of the $15 million in expenses, $8.8 million goes toward police and fire services. Property and sales taxes are expected to provide $8.3 million of the town’s revenue.
The adopted budget projects a reserve of 26.4% at the end of the fiscal year in June. The town’s policy is 25%.
The budget opens a police officer position that has been frozen for about 15 years, according to Michael Vivrette, the finance director. To do this, the Town Council raised the utility use tax by a percentage point in June, bringing it back to its original rate of 5%. The increase, combined with general rate increases, is expected to generate $690,000 this fiscal year, according to the budget.
“That’s a pretty hefty increase,” Councilmember Frank Egger said.
Vivrette said other changes include an increase in the town’s share of fire department expenses — $3.6 million in fiscal year 2025-26. The annual increase of about $245,500 stems from a change in labor agreements. The Ross Valley Fire Department is moving to a three-person engine company and moving dispatch services from the Marin County Sheriff’s Office to the Marin County Fire Department, according to a staff report.
Other budget changes include the town receiving more funding from Transit Authority of Marin measures and restoring the deputy town clerk position to full time, Vivrette said.
The town also has added a road improvement fund to hold revenue from the road impact or street opening fees to go toward fixing roads. The fund has $250,000 in it.
The budget also includes funding to pay for the recall election against Blash and Vice Mayor Stephanie Hellman. A campaign to remove them — for their housing positions, alleged mismanagement of funds and other claims — succeeded in getting enough petition signatures to qualify for a ballot.
If the recall succeeds, and the remaining council members do not appoint replacements, another election will be held to fill the seats.
The council will review the results of the petition at its meeting on Aug. 6.