Supplement-to-Agenda-Item-4-Road-Bond-Measure — Fairfax City Council, August 7, 2024

FAIRFAX TOWN COUNCIL MEETING

SUPPLEMENTAL STAFF REPORT
1 SUPPLEMENT TO AGENDA ITEM #4
MEETING DATE August 7, 2024
PREPARED FOR Mayor and Town Council
PREPARED BY Heather Abrams, Town Manager
SUBJECT Supplement to Agenda Item #4 Waive Second Reading and Approval of Ordinance No. 890 Ordering the Submission of a Measure Incurring Bonded Indebtedness to the Voters at the November 2024 General Municipal Election and Adoption of the Resolution Ordering an Election and Placing a Bond Measure on the November 2024 Ballot

RECOMMENDATION
Clarifications are being provided as described below.

In Attachment A, pg. 3, Section 6. Estimated Cost of Improvements: The estimated cost of the Improvements is “$21,000,000”. These are estimates; however, for clarity this amount is being replaced with “$20,531,616”, which exactly matches the estimate provided in the July 17, 2024 Agenda Item 4, Attachment B Section 6. Estimated Cost of Improvements.

In Attachment B, page 1, in the 2nd " WHEREAS, on July 17, 2024, pursuant to California Government Code Section 43607, the Town Council initiated proceedings by the adoption of “Resolution No. [___]” has been replaced with “Resolution No. 24-50”, reflecting the adopted resolution number.

Tax Rate Statement – a signature line for Mayor has been added to the signature line for Town Manager

ATTACHMENT
Ordinance, Resolution, Tax Rate Statement
1 ATTACHMENT A
ORDINANCE NO. 890

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX

ORDERING THE SUBMISSION OF A PROPOSITION INCURRING BONDED INDEBTEDNESS TO

THE QUALIFIED VOTERS OF THE TOWN OF FAIRFAX AT THE GENERAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR THE PURPOSE OF FINANCING THE COST OF THE ACQUISITION,

CONSTRUCTION AND IMPROVEMENT OF CERTAIN MUNICIPAL IMPROVEMENT PROJECTS The Town Council (the “Town Council”) of the Town of Fairfax (the “Town”) hereby ordains as follows:

Section 1. Purpose And Intent
Pursuant to the authority provided by California Government Code Sections 43600 et seq. and 53410 et seq., California Elections Code Sections 10000 et seq., 9200 et seq., and 9400 et seq., and certain other provisions of the California Government Code and California Elections Code, the Town Council proposes to order the submission of a proposition authorizing the Town to issue general obligation bonds (the “Bonds”) to the qualified voters of the Town at the general municipal election to be held on November 5, 2024.

Section 2. Findings
The Town Council hereby makes the following findings with respect to the proposed measure for the Bonds:

A. The Town’s roads and other existing municipal infrastructure are in need of repair and/or replacement.

B. On July 17, 2024, the Town Council adopted, by a two-thirds vote of all its members, a resolution entitled “A Resolution of the Town Council of the Town of Fairfax Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects, and Their Financing Through the Issuance of General Obligation Bonds,” pursuant to which the Town Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the cost of municipal improvement projects (the “Resolution of Necessity”).

C. In order to provide for the issuance by the Town of general obligation bonds to provide financing for the municipal improvement projects, it is necessary for the Town Council to adopt an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the Town at a municipal election.

D. The Town Council desires to submit said ballot measure to the qualified voters of the Town at the regular election to be held in the Town on November 5, 2024, and to consolidate the bond election with other elections held within the Town on that date.

E. The Town Council hereby certifies that the Town has evaluated alternative funding sources.

Section 3. Call For Election
The Town Council hereby orders that there be submitted to the qualified voters of the Town a proposition on incurring bonded indebtedness for the purposes set forth in this Ordinance and as set forth 2 ATTACHMENT A
in the Resolution of Necessity, at the regular election to be held on November 5, 2024. This Ordinance constitutes the order of the Town to call such election.

Section 4. Ballot Proposition
The Town Council hereby submits to the qualified voters of the Town, at the regular election to be held on November 5, 2024, a proposition on issuing the Bonds. The abbreviated statement of the measure to appear on the ballot shall be in substantially the form set forth below:
“To repair roads/infrastructure; fix potholes; repave streets; repair retaining walls/bridges; address flooding of
roads/buildings; improve bike/pedestrian circulation, safe routes to schools, disabled access; and qualify for federal matching funds/grants, shall the Town of Fairfax’s measure authorizing $18,000,000 of bonds for up to 30 years for each series, at legal interest rates, levying approximately
$30/$100,000 of assessed value, raising on average
approximately $1,200,000 annually, requiring audits/citizen oversight, be adopted?”

BONDS - YES

BONDS - NO
Section 5. Object And Purpose Of Bonds
The object and purpose of the Bonds is to finance the costs of municipal improvement projects of the Town to improve public safety (the “Improvements”), which Improvements are anticipated to consist generally of the acquisition, construction and/or improvement of roads, bridges, retaining walls, street work, and Town infrastructure.

The authorized Improvements also include all work, facilities, and expenditures necessary and incidental to the project described above. Examples of such work, facilities, and expenditures include, but are not limited to the costs of design, engineering, architect and other professional services, inspections, site preparation, utilities (including improvements to plumbing, sewer and electrical systems to preserve energy and water), landscaping, construction management and other planning and permitting, road lighting, legal, accounting and similar costs, a customary construction contingency, demolition and disposal of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, interim facilities for municipal functions, including modular facilities, addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes, environmental improvements to preserve energy and water, access requirements of the Americans with Disabilities Act, costs of the election, bond issuance costs, financing and interest costs on the Bonds, and project administration during the duration of such projects, as permitted by law.

The final costs, locations, designs, layouts and other details of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. Therefore, the Town Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.

The full text of the ballot measure shall be in substantially the form as in Exhibit A, attached hereto and incorporated herein.
3 ATTACHMENT A
Section 6. Estimated Cost of Improvements
The estimated cost of the Improvements is $$20,531,61621,000,000. The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds.

Section 7. Principal Amount of Bonds
The aggregate principal amount of the Bonds shall not exceed $18,000,000.

Section 8. Maximum Interest Rate
The maximum rate of interest to be paid on the Bonds shall be the statutory maximum of 8% per annum. Said interest shall be payable semiannually, except that interest for the first year after the date of the Bonds may be made payable at the end of said year.

Section 9. Issuance And Sale of Bonds
The Town proposes to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if twothirds (or 55% should Assembly Constitutional Amendment No. 1 or “ACA-1” be approved by the voters at the November 5, 2024 election) of all qualified voters voting on the proposition set forth above vote in favor thereof. The Bonds will be general obligations of the Town payable from and secured by ad valorem taxes levied and collected in the manner prescribed by laws of the State of California. The revenue generated from the ad valorem tax levied and collected will be used for the payment of debt service on the Bonds. All of the Bonds shall be equally and ratably secured, without priority, by the taxing power of the Town.

Section 10. Manner Of Conducting Election
The election on the Bonds held on November 5, 2024 shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election with which it is consolidated.

Section 11. Procedure For Voting On Proposition
Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the proposition on the ballot in accordance with procedures to be adopted by the authorized officers of the County of Marin (the “County”) charged with conducting the election.
4 ATTACHMENT A
Section 12. Accountability Requirements
In accordance with Sections 53410 and 53411 of the California Government Code and the California Constitution, the Town Council hereby adopts the following accountability requirements relating to the Bonds:
(a) A separate account shall be created and held by the Town, into which the proceeds of the Bonds are deposited and applied solely for the purpose of financing the Improvements. (b) The Finance Director of the Town shall file a report with the Town Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements, as required by Government Code Section 53410. (c) Use the bond proceeds only for the purposes authorized under Article XIIIA of the California Constitution and only on projects that serve the jurisdiction of the Town, including the construction, reconstruction, rehabilitation, or replacement of public infrastructure, and not for any other purpose including salaries and other operating expenses. (d) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in this Measure. (e) Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for projects and uses listed in this Measure. (f) The Town shall post the audits listed in (d) and (e), above, in a manner that is easily accessible to the public, and which shall be submitted to the California State Auditor for review. (g) Establish and appoint members to an independent citizens’ oversight committee to ensure the bonds are used only for the projects and uses listed in this Measure. (h) An entity owned or controlled by a local official that votes on whether to put the Measure on the ballot is prohibited from bidding on any work funded by this Measure.

Section 13. Identification Of Tax
The tax imposed by this measure is an ad valorem tax levied upon taxable real property in the Town, and will be used to pay the principal and interest on the Bonds.

Section 14. Establishment Of Oversight Committee
In the event the ballot proposition is passed by two-thirds (or 55% should ACA-1 be approved by the voters at the November 5, 2024 election) of all qualified voters voting on the proposition, the Town Council shall establish and appoint members to a five-member independent oversight committee, which shall have responsibility for reviewing and reporting on the expenditure of the proceeds of the Bonds, subject to those terms and conditions as set forth by the Town Council.

Section 15. Official Actions
The Mayor, the Town Manager, the Finance Director, the Town Clerk, and any of their designees, are hereby authorized to execute any documents and to perform all acts necessary to place the bond measure on the ballot.
5 ATTACHMENT A
Section 16. Interpretation
The provisions of this Ordinance, being necessary for the health, welfare, and safety of the Town and its residents, is to be liberally interpreted to carry out its purposes. No error, irregularity or informality, and no neglect or omission of any officer, in any proceeding taken related to the submission of the proposition incurring bonded indebtedness to the qualified voters of the Town shall void or invalidate any such proceeding, any Bonds issued by the Town, or any levy of ad valorem taxes to pay principal of and interest on the Bonds.

Section 17. Severability
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions this Ordinance are declared to be severable.

Section 18. Publication Of Ordinance
This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the Town, or once a week for two weeks in a newspaper published less than six days a week in the Town. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. If there are no such newspapers, it shall be posted in three public places in the Town for two succeeding weeks. No other notice need be given.

Section 19. Delivery of Documents
The Town Clerk is hereby authorized and directed to send or hand deliver a copy of this Ordinance and all other necessary documents to the County Board of Supervisors and the County Registrar of Voters by no later than August 9, 2024.

Section 20. Effective Date
In accordance with Section 36937(a) of the California Government Code, this Ordinance shall become effective immediately, as an ordinance relating to an election, upon its adoption by two-thirds vote of all the members of this Town Council.

THE FOREGOING ORDINANCE was introduced at a regular meeting of the Town Council of the Town of Fairfax on July 17, 2024, and was adopted at a regular meeting of Town Council of the Town of Fairfax on August 7, 2024, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST:
_____________________________ _______________________________ Barbara Coler, Mayor Christine Foster, Deputy Town Clerk 6 ATTACHMENT A

CERTIFICATION
I, Christine Foster, Deputy Town Clerk of the Town of Fairfax, California, do hereby certify that the foregoing is a full, true and correct copy of Ordinance No. 890 which was regularly introduced and placed upon its first reading at a regular meeting of the Town Council on the 17th day of July 2024. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the Town Council on the 7th day of August 2024, by the following vote:
[INSERT VOTE]
_________________________________
Christine Foster, Deputy Town Clerk
7 ATTACHMENT A

EXHIBIT A

FULL TEXT OF BOND MEASURE
Introduction
The Town of Fairfax (the “Town”) has aging roads and infrastructure which are in need of repair and/or replacement. Addressing these issues requires that the Town ask its voters to approve a general obligation bond measure. The Town has certified that it has evaluated alternative funding sources.

The federal government requires a local match, funded at times through local general obligation bonds, for the Town to qualify for certain federal grants. The millions of dollars potentially available through federal grants allows local taxpayers to benefit from the tax dollars already paid to the federal government.

It is imperative that the Town makes repairs to roads and other public infrastructure to increase public safety for residents of the Town.

Summary
“To repair roads/infrastructure; fix potholes; repave streets; repair retaining walls/bridges; address flooding of roads/buildings; improve bike/pedestrian circulation, safe routes to schools, disabled access; and qualify for federal matching funds/grants, shall the Town of Fairfax’s measure authorizing $18,000,000 of bonds for up to 30 years for each series, at legal interest rates, levying approximately $30/$100,000 of assessed value, raising on average approximately $1,200,000 annually, requiring audits/citizen oversight, be adopted?” Measure
As required by the California Constitution, the proceeds from the sale of the bonds will be used only for the purposes authorized under Article XIIIA of the California Constitution, including the acquisition or improvement of real property and public infrastructure specifically set forth in this Measure and costs incident thereto, and not for any other purposes, including salaries and other operating expenses.

The following describes the specific projects the Town proposes to finance with proceeds of the bonds. The scope of specific projects, the order of construction, and their completion is contingent on final project costs and the availability of needed funds. This Measure authorizes bond projects to be undertaken at all Town-owned property.

The following list includes both projects that can be completed using the bond proceeds, along with federal matching funds and other building funds, and projects that are planned and needed but those whose construction is contingent on the amount of bond proceeds available.

Bond proceeds will be expended on the costs of municipal improvement projects of the Town to improve public safety (the “Improvements”), which Improvements consist of the acquisition, construction and/or improvement of roads, bridges, retaining walls, street work, and related Town infrastructure.
8 ATTACHMENT A
The authorized Improvements also include all work, facilities, and expenditures necessary and incidental to the projects described above. Examples of such work, facilities, and expenditures include, but are not limited to, the costs of design, engineering, architect and other professional services, inspections, site preparation, utilities (including improvements to plumbing, sewer and electrical systems to preserve energy and water), trees and landscaping, construction management and other planning and permitting, road lighting, legal, accounting and similar costs, a customary construction contingency, demolition and disposal of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, interim facilities for municipal functions, including modular facilities, addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes, site acquisition and any necessary easements, licenses or rights of way, environmental improvements to preserve energy and water, access requirements of the Americans with Disabilities Act, costs of the election, bond issuance costs, financing and interest costs on the Bonds, and project administration during the duration of such projects, as permitted by law.

The final costs, locations, designs, layouts and other details of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed.

Therefore, the Town Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements. The scope and nature of any of the projects described above may be altered by the Town as required by unforeseen conditions. In the event that a modernization or renovation project is more economical for the Town to be undertaken as new construction, this Measure authorizes land acquisition, relocation, and construction and/or reconstruction for such purpose, and all costs relating thereto.

Approval of the bond measure does not guarantee that all of the projects above will be funded beyond what can be completed with local funds generated by this Measure. The order in which projects are listed in the foregoing does not suggest an order of priority. Project priorities will be determined by the Town Council.

Accountability Measures
If the bonds are approved, the Town will implement the following accountability measures:
(a) A separate account shall be created and held by the Town, into which the proceeds of the Bonds are deposited and applied solely for the purpose of financing the Improvements.
(b) The Finance Director of the Town shall file a report with the Town Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements, as required by Government Code Section 53410. (c) Use the bond proceeds only for the purposes authorized under Article XIIIA of the California Constitution and only on projects that serve the jurisdiction of the Town, including the construction, reconstruction, rehabilitation, or replacement of public infrastructure, and not for any other purpose including salaries and other operating expenses.
(d) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in this Measure. 9 ATTACHMENT A
(e) Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for projects and uses listed in this Measure.
(f) The Town shall post the audits listed in (d) and (e), above, in a manner that is easily accessible to the public, and which shall be submitted to the California State Auditor for review.
(g) Establish and appoint members to an independent citizens’ oversight committee to ensure the bonds are used only for the projects and uses listed in this Measure. (h) An entity owned or controlled by a local official that votes on whether to put the Measure on the ballot is prohibited from bidding on any work funded by this Measure.

Tax Amount, Rate, and Duration
The bonds shall bear interest at an annual rate not exceeding the statutory maximum.

The maturity of the bonds shall not exceed the maximum term allowed by law at the time of issuance. As further set forth in the Tax Rate Statement, the ad valorem tax will be levied at such rates and for so long as may be required to meet the debt service needs of the bonds proposed to be issued, including such bonds that may be issued to refund any approved bonds. 1 ATTACHMENT B
RESOLUTION NO. [___]

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX

ORDERING AN ELECTION AND PLACING A MEASURE TO APPROVE THE ISSUANCE OF

GENERAL OBLIGATION BONDS TO FINANCE IMPROVEMENTS TO MUNICIPAL INFRASTRUCTURE ON THE NOVEMBER 5, 2024 BALLOT
WHEREAS, the Town Council (the “Town Council”) of the Town of Fairfax (the “Town”) has determined that a measure authorizing the issuance of general obligation bonds to finance municipal improvement projects of the Town to repair and replace roads and other municipal infrastructure (the “Improvements”) should be placed before the voters of the Town for their consideration; and WHEREAS, on July 17, 2024, pursuant to California Government Code Section 43607, the Town Council initiated proceedings by the adoption of Resolution No. 24-50[___] determining the necessity to incur a bonded indebtedness to finance the Improvements; and WHEREAS, the Town Council is required to submit the proposal for bonded indebtedness to the voters for their consideration by the California Constitution and other applicable provisions of California law; and
WHEREAS, on August 7, 2024, the Town Council passed Ordinance No. 890 which orders the submission to the voters a proposition incurring bonded indebtedness to the voters of the Town for their consideration; and
WHEREAS, the Town Council now desires to adopt this Resolution to order an election and to place a proposition incurring bonded indebtedness on the ballot for the election to be held on November 5, 2024.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Call for Election. Pursuant to its right, power and authority under the California Constitution and the laws of the State of California, the Town Council on its own motion hereby orders an election and submits to the voters of the Town at the General Municipal Election to be held on November 5, 2024, a ballot measure designated by letter by the Marin County Registrar of Voters authorizing the sale of general obligation bonds (the “Bonds”) in the principal amount not to exceed $18,000,000 to finance the costs of municipal improvement projects of the Town to repair roads and other municipal infrastructure.

The abbreviated form of the ballot measure to appear on the ballot shall be in substantially the form attached hereto as Exhibit A. The full text of the proposed ballot measure to be submitted to the voters is as provided in Exhibit B hereto and incorporated herein by reference. The proposed measure shall not take effect unless approved by a two-thirds vote (or 55% vote should Assembly Constitutional Amendment No. 1 or “ACA-1” be approved by voters at the November 5, 2024 election) of the voters voting on the question.

Section 2. Findings. The Town Council hereby finds that the estimates and projections contained in the measure and in the Tax Rate Statement prepared in connection with the measure, attached hereto as Exhibit C and incorporated herein, have been made based on currently available information, but 2 ATTACHMENT B
depend on a number of variables which are subject to variation. Such estimates and projections have been made in good faith, and are not binding or intended to be limitations on the terms of the Bonds. The Mayor and Town Manager are hereby each authorized to finalize and execute the Tax Rate Statement, attached hereto as Exhibit C and incorporated herein, and to file the Tax Rate Statement with the Marin County Registrar of Voters.

Section 3. Consolidation of Election; Services. The Board of Supervisors of Marin County and the Marin County Registrar of Voters are hereby requested to order the consolidation of the bond election hereby called with any other election to be held within the Town on said date, held and conducted in the manner prescribed in Section 10418 of the California Elections Code.

Pursuant to Section 10002 of the California Elections Code, the County Board of Supervisors is requested to permit the County Registrar of Voters, and other appropriate officials of the County, to render all services necessary in connection with the bond election including, but not limited to, the mailing of the sample ballot and Tax Rate Statement, the opportunity to submit ballot arguments in connection with the bond election, the canvassing and certification of the returns of the election, and other ballot requirements pursuant to law.

Section 4. Submission; Impartial Analysis. The Town Council directs the Town Clerk to submit to the Town Attorney a copy of the measure. Pursuant to California Elections Code Section 9280, the Town Attorney is hereby authorized and directed to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure.

The impartial analysis shall be submitted by the Town Attorney to the Town Clerk on or before August 19, 2024 at 3:00 p.m., shall not exceed 500 words in length, and otherwise shall comply in all respects with the applicable provisions of the Elections Code of the State of California.

Section 5. Arguments. The last day for filing direct arguments for or against the measure shall be August 19, 2024 at 3:00 p.m. and all such arguments shall be filed with the Town Clerk, 142 Bolinas Road, Fairfax, California and shall not exceed 300 words in length. The Town Clerk, upon receipt of arguments and after the filing deadline, shall immediately transmit copies of each selected argument to the authors of selected arguments on the opposing side who may then submit rebuttals within the time period described below. Arguments received prior to the deadline shall be confidential until the deadline.

The last day for filing rebuttal arguments for or against the measure shall be August 26, 2024 at 3:00 p.m. and all such arguments shall be filed with the Town Clerk, 142 Bolinas Road, Fairfax, California and shall not exceed 250 words in length. Arguments received prior to the deadline shall be confidential until the deadline.

Section 6. Public Review. The ten (10) day public review period for the measure shall open on August 10, 2024 and shall close on August 19, 2024. Pursuant to Elections Code Section 9295, the ten (10) day public review period for direct arguments submitted shall open on August 20, 2024 and shall close on August 29, 2024. If a rebuttal argument is submitted, the ten (10) day public review period shall open on August 27, 2024 and shall close on September 5, 2024. 3 ATTACHMENT B
Section 7. Notice. The Town Clerk is directed to give notice of the election and synopsis measure in the time, form and manner as required by law.

Section 8. Conduct and Manner of Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by Ordinance No. 890 and by law for holding municipal elections.

Section 9. Delivery. The Town Clerk is authorized and directed to transmit a certified copy of this Resolution to the Marin County Board of Supervisors and the Marin County Registrar of Voters.

PASSED AND ADOPTED by the Town Council of the Town of Fairfax this 7th day of August, 2024, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST:
_____________________________ _________________________________ Barbara Coler, Mayor Christine Foster, Deputy Town Clerk 4 ATTACHMENT B

CERTIFICATION
I, Christine Foster, Deputy Town Clerk of the Town of Fairfax, California, do hereby certify that the foregoing is a full, true and correct copy of Resolution No. [___] passed and adopted by said Town Council at a meeting held on the 7th day of August 2024. _____________________________________
Christine Foster, Deputy Town Clerk
5 ATTACHMENT B

EXHIBIT A

BOND MEASURE FOR TOWN OF FAIRFAX
ABBREVIATED FORM*
“To repair roads/infrastructure; fix potholes; repave streets; repair retaining walls/bridges; address flooding of
roads/buildings; improve bike/pedestrian circulation, safe routes to schools, disabled access; and qualify for federal matching funds/grants, shall the Town of Fairfax’s measure authorizing $18,000,000 of bonds for up to 30 years for each series, at legal interest rates, levying approximately
$30/$100,000 of assessed value, raising on average
approximately $1,200,000 annually, requiring audits/citizen oversight, be adopted?”

BONDS - YES

BONDS - NO
* Limited to 75 words pursuant to California Elections Code Section 13247. 6 ATTACHMENT B

EXHIBIT B

It is imperative that the Town makes repairs to roads and other public infrastructure to increase public safety for residents of the Town.

The authorized Improvements also include all work, facilities, and expenditures necessary and incidental to the projects described above. Examples of such work, facilities, and expenditures include, but are not limited to, the costs of design, engineering, architect and other professional services, inspections, site preparation, utilities (including improvements to plumbing, sewer and electrical systems to preserve energy and water), trees and landscaping, construction management and other planning and permitting, road lighting, legal, accounting and similar costs, a customary construction contingency, demolition and disposal of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, interim facilities for municipal functions, including modular facilities, addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes, site acquisition and any necessary easements, licenses or rights of way, environmental improvements to preserve energy and water, access requirements of the Americans with Disabilities Act, costs of the election, bond issuance costs, financing and interest costs on the Bonds, and project administration during the duration of such projects, as permitted by law.

The final costs, locations, designs, layouts and other details of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed.

Accountability Measures
If the bonds are approved, the Town will implement the following accountability measures:
(a) A separate account shall be created and held by the Town, into which the proceeds of the Bonds are deposited and applied solely for the purpose of financing the Improvements.
(b) The Finance Director of the Town shall file a report with the Town Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements, as required by Government Code Section 53410. 8 ATTACHMENT B
(c) Use the bond proceeds only for the purposes authorized under Article XIIIA of the California Constitution and only on projects that serve the jurisdiction of the Town, including the construction, reconstruction, rehabilitation, or replacement of public infrastructure, and not for any other purpose including salaries and other operating expenses.
(d) Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in this Measure. (e) Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for projects and uses listed in this Measure.
(f) The Town shall post the audits listed in (d) and (e), above, in a manner that is easily accessible to the public, and which shall be submitted to the California State Auditor for review.
(g) Establish and appoint members to an independent citizens’ oversight committee to ensure the bonds are used only for the projects and uses listed in this Measure. (h) An entity owned or controlled by a local official that votes on whether to put the Measure on the ballot is prohibited from bidding on any work funded by this Measure.

Tax Amount, Rate, and Duration
The bonds shall bear interest at an annual rate not exceeding the statutory maximum. The maturity of the bonds shall not exceed the maximum term allowed by law at the time of issuance.

As further set forth in the Tax Rate Statement, the ad valorem tax will be levied at such rates and for so long as may be required to meet the debt service needs of the bonds proposed to be issued, including such bonds that may be issued to refund any approved bonds. 9 ATTACHMENT B

EXHIBIT C

TAX RATE STATEMENT
Dated: August 7, 2024

TAX RATE STATEMENT
An election will be held in the Town of Fairfax, California (the “Town”) on November 5, 2024, to authorize the sale of up to $18 million in general obligation bonds to finance the acquisition, construction, and repair of municipal infrastructure as described in the bond measure. If such bonds are authorized, the Town expects to sell the bonds in one or more series. The following information is submitted in compliance with Sections 9400-9404 of the Elections Code of the State of California.

Such information is based upon the best estimates and projections presently available from official sources, upon experience within the Town, and other demonstrable factors.

Based upon the foregoing and projections of the Town’s assessed valuation available at the time of this statement, the following information is provided:

1. The best estimate of the average annual tax rate that would be required to be levied to fund this bond issue over the entire duration of the bond debt service, based on estimated assessed valuations available at the time of filing of this statement, is approximately 3¢ per $100 ($30 per $100,000) of assessed valuation. It is currently expected that the final fiscal year in which the tax will be collected is fiscal year 2057-58.

2. The best estimate of the highest tax rate that would be required to be levied to fund this bond issue, based on estimated assessed valuations available at the time of filing this statement, is approximately 3¢ per $100 ($30 per $100,000) of assessed valuation. This tax rate is projected to apply in each fiscal year that the bonds are outstanding.

3. The best estimate of total debt service, including principal and interest, that would be required to be repaid if all the bonds are issued and sold will be approximately $40 million.

These estimates are based on projections derived from information obtained from official sources, and are based on the assessed value (not market value) of taxable property on the County’s official tax rolls. In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills and tax advisors to determine their property’s assessed value and any applicable tax exemptions. The attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which amounts are not maximum amounts and durations and are not binding upon the Town. The actual debt service, tax rates and the years in which they will apply may vary depending on the timing of bond sales, the par amount of bonds sold at each sale, and actual increases in assessed valuations. The timing of the bond sales and the amount of bonds sold at any given time will be determined by the Town based on the need for project funds and other considerations. Actual assessed valuations will depend upon the amount and value of taxable property within the Town as determined by the County Assessor in the annual assessment and the equalization process.
___________________________ ____________________________ Mayor Town Manager
Town of Fairfax Town of Fairfax

Fairfax City CouncilAugust 7, 2024

Fairfax City Council
August 7, 2024