FOR sets proposed tax rate, reviews facility needs

Public hearing Sept. 17

FAIR OAKS RANCH — The City Council is looking at a proposed property tax rate for the 2026-27 fiscal year and received updates on the city’s long-range Facilities Master Plan during its Aug. 6 meeting.

A public hearing and a vote by the council is set for Sept. 17 on a tax rate of about 31 cents per $100 valuation. By state law, the budget must be locked in by Oct. 1.

The proposed rate is above the no-new-revenue rate of slightly more than 28 cents per appraised value but below the voter-approval rate of nearly 34 cents.

City officials said the figure will allow the city to maintain services while keeping its finances on solid footing.

Finance Director Summer Fleming said despite a slight decrease in taxable value, the city remains in a strong financial position.

“Overall, the city’s financial position remains stable through the third quarter,” Fleming said. “Revenues are exceeding expectations in several key areas, expenditures remain well controlled, reserves are fully funded, and both the general fund and utility fund are expected to finish the fiscal year in a strong position.”

According to Fleming, the general fund is projected to close out the fiscal year with $197,000 in operating surplus.

The city’s revenue outlook continues to benefit from strong sales-tax collections, the finance director added.

“Sales tax is probably the city’s strongest revenue story this year,” Fleming said.

The proposed budget includes $12.06 million in revenue and $11.37 million in operating expenditures. Officials said the city’s emergency reserve and budget stabilization reserve remain fully funded.

Meanwhile, in a workshop session, the council received an update on the Facilities Master Plan, a long-range study intended to evaluate existing city facilities and identify future space needs.

City Planner Jessica Lucio said the study provides city leaders with a roadmap for future facility investments.

“The purpose of this project is to take a comprehensive look at our existing city facilities, evaluate current conditions and space utilization, and identify future facility needs as the city continues to grow,” Lucio said.

She added the effort will help guide future decisions about city buildings and infrastructure.

“This plan is intended to help us better understand our facility needs and provide a framework for future decisions, investments, and priorities,” Lucio said.

Representatives from Matrix Consulting Group presented preliminary findings from the study, which projects the city may require an additional 23 employees over the next 20 years, primarily within the Public Works Department.

The review also identified a need for additional public works space, expanded restroom capacity, parking improvements and dedicated council chambers.

Matrix Consulting Group Senior Manager Chas Jordan said the study focuses not only on current conditions but also future growth.

“The plan considers what could be on the horizon, and that you are looking at facilities that actually will have the space required for potential future staffing and future services,” Jordan said.

Jordan said the study is built around several key questions.

“What does the city currently have and what condition is it in? Secondly, what is needed in the future and when will you actually need it?” he said.

The next phase of the Facilities Master Plan will include recommendations for future facility improvements and estimated project costs.

The council also discussed upcoming appointments to city boards, commissions and committees. City staff reported there are 21 potential vacancies and eight new applicants seeking appointments.

Interviews are scheduled for Sept. 3 and Sept. 17, with appointments expected afterward.