FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #2
MEETING DATE July 16, 2024
PREPARED FOR Mayor and Town Council
PREPARED BY Heather Abrams, Town Manager and Michael Vivrette, Finance Director SUBJECT Receive Fiscal Year 2023-24 Audit Report
RECOMMENDATION
Receive Independent Auditor’s Report for Fiscal Year 2023-24.
DISCUSSION
The Town auditors, Maze and Associates, have issued the Audited Financial Statements for the Town consisting of the Basic Financial Statements and Independent Auditor’s Report for June 30, 2024. Maze and Associates is an independent audit firm that is highly qualified and provides financial audit services to many jurisdictions within Marin and the Bay Area. A representative from Maze and Associates will present at the Council meeting and answer questions regarding the Financial Statements, the audit, or other concerns.
FISCAL IMPACT
The audit serves to give an independent professional opinion to fairness of the Town’s financial statements at June 30, 2024. They have issued a “clean” opinion that the financial statements are free from material misstatement; there were no significant issues and this is the highest level of assurance that an auditor can provide.
Key information from the FY 2023-2024 Financial Audit:
• Clean audit, no issues, highest level of assurance
• Increased revenues compared to budget
• Decreased expenses compared to budget
• OPEB and pension liability decreased; it changes annually based on the market returns and actuarial analysis, which impacts net position but does not represent annual expenses paid • While pension and OPEB liabilities fluctuate each year, the Town has taken many steps to manage these liabilities, including modifying pension plans, eliminating new OPEB benefits, refinancing previous liabilities, and establishing CERBT and PARS investment accounts to prepare for future payments
• Town continues to maintain prudent reserves of over 25% Focusing on the Current Audit Year
In Fiscal 2023-24, the General Fund balance decreased by $1,159,441 due to a planned spend-down of above target reserves in order to fund road repairs. All other fund balances decreased by a net total of $188,720 due to capital improvement expenditures in alignment with the plans to invest in road repairs.
General Fund revenues were higher than budgeted by $832,698 (7.2%) primarily from better than projected sales tax receipts. General Fund expenses were under budget by $100,009 (>1%). Financial activity for FY23-24 has been factored into the fund balance carry forward in the current year’s budget.
Estimating for the Future - Other Post Employment Benefits (OPEB) and Pensions During the period, the Town’s total liability for other post-employment benefits (OPEB) as measured by Government Accounting Standards Board ruling (GASB 75) increased by $895,381 to $2,233,126 (66.9%). The net liability for OPEB decreased by $134,801 to $271,211 (-33.2%) due to changes in assumptions and service cost during the period, plan contributions and investment income, offset by measures the Town has taken over the past years in negotiating employment MOU’s to significantly reduce or eliminate OPEB benefits for employees hired after July 1, 2013.
Nevertheless, there was a significant increase in net position of $1,061,824 leaving the Town with an ending balance of $1,329,398. In the past 13 years, the Town’s Pension and OPEB liabilities increased five times and decreased six times. Last year, there was a net activity loss, while the Town’s net position has increased four of the past five years. This CalPERS impact is reflected in the Net PositionEnding and Statement of Activities, but this is not a current expense and is likely to change from year to year.
ATTACHMENT
Audit Report
Town of
Fairfax
Fairfax, California
Basic Financial Statements and
Independent Auditor’s Report
For the Year Ended June 30, 2024
Prepared by: Finance Department
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Town of Fairfax
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditor’s Report ................................................................................................................................ 1 Management’s Discussion and Analysis ................................................................................................................. 5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................................ 16 Statement of Activities ................................................................................................................................ 17 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................................ 18 Reconciliation of the Governmental Funds – Balance Sheets with the Statement of Net Position ................................................................................................. 20 Statements of Revenues, Expenditures and Changes in Fund Balance ................................................ 22 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ..................................................................................................... 24 Notes to Basic Financial Statements .................................................................................................................. 25 Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability (Asset) – A Cost-Sharing Employer Defined Pension Plan ................................................................................. 58 Schedule of Contributions – A Cost-Sharing Employer Defined Pension Plan ................................................ 60 Schedule of Changes in the Net OPEB Liability and Related RatiosOther Post-Employment Benefits (OPEB) – Agent Multiple Employer Plan ...................................... 62 Schedule of Contributions – Agent Multiple Employer OPEB Plan ................................................................. 64 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Major Funds:
General Fund ......................................................................................................................................... 66 Federal Stimulus Special Revenue Fund .............................................................................................. 67 Budgetary Principles .......................................................................................................................................... 68 Town of Fairfax
Basic Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheets ........................................................................................................................ 72 Combining Statements of Revenues, Expenditures and Changes in Fund Balances................................. 74 Combining Schedules of Revenues, Expenditures and Changes In Fund Balances – Budget and Actual .................................................................................................. 76 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the Town Council
of the Town of Fairfax
Fairfax, California
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Fairfax (Town), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2024, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Change in Accounting Principles
Management adopted the provisions of the following Governmental Accounting Standards Board Statement No. 100, Accounting Changes and Error Corrections, which became effective during the year ended June 30, 2024 and required the restatement of net position as discussed in Note 1N to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions. 2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Pleasant Hill, California
June 23, 2025
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Town of Fairfax
Management’s Discussion and Analysis
June 30, 2024
This discussion and analysis of the Town’s financial activities and performance provides an overview for the fiscal year ended June 30, 2024. Please read this in conjunction with the Town’s financial statements, which follow this discussion and analysis.
GOVERNMENT-WIDE HIGHLIGHTS
• The Government-Wide Statement of Net Assets appears as the first statement of the Basic Financial Statements and is summarized in this Management’s Discussion and Analysis section.
The statement shows the Town’s assets to be $18,385,334; deferred outflows of $,3,128,349; liabilities of $15,762,359; deferred inflows of $4,431,926 and net position of $1,329,398 at June 30, 2024. This compares with assets of $18,246,089, liabilities of $15,920,959 and net position of $267,574 (as restated) at June 30, 2023.
• The Government-Wide Statement of Activities and Changes in Net Position appears as the second statement of the Basic Financial Statements and is summarized in this Management’s Discussion and Analysis section. This statement shows an increase in net position of $1,061,824 for the fiscal year ended June 30, 2024 compared to a decrease in net assets of $5,712,249 for the prior fiscal year. Revenues for fiscal 2024 increased by $833,656 from the prior year primarily due to increased revenues from charges for services, property and sales taxes, and investment earnings, offset by decreased revenues from operating grants. Expenses for the same period decreased by $5,940,417 due to decreased expenditures in general government, public works, planning & building, and interest from debt service, offset by increases in public safety, and parks and recreation. All current Town debt is at fixed rates and is unaffected by increasing interest rates. • The Town’s long-term liabilities totaled $15,762,359 as of June 30, 2024, which includes the outstanding balance on the Measure K bonds and the lease financing debt from refinancing the Town’s Unaccrued Actuarial Liability (UAL) on pensions for Miscellaneous and Safety employees.
The total is $158,600 (-1.0%) less than the prior year.
FUND HIGHLIGHTS
At the close of fiscal year 2024, the Town’s governmental funds reported a combined ending fund balance of $5,131,140, a decrease of $1,348,161 from the June 30, 2023 ending fund balance of $6,479,301. The detailed components of Revenues and Expenditures can be found in the accompanying Statement of Revenues, Expenditures and Changes in Fund Balances. 5 TOWN’S HIGHLIGHTS
During 2023-2024, the Town accomplished the following key projects and tasks:
• Expanded Summer Camps and Fee-Based Classes to include Organized camps featuring: Skate, Tennis, Spanish, Basketball, Soccer, Art and Nature, and a Counselor in Training Program. • Filled the Police Lieutenant position with internal candidate and appointed new Police Detective.
• Completed POST Mandated training for all full-time and part-time personnel. • Continued upgrading Police Vehicle Fleet with low emissions Hybrid/EV options. • Hosted and supported 20 Town Council meetings involving 169 agenda items. • Adopted the 2023-2031 Housing Element and submitted it for review by the California Housing and Community Development Department (HCD) with zoning code amendments to comply with HCD requirements, new ADU regulations, inclusionary housing requirements, and workforce housing overlay adoption.
• Completed Road Improvement Projects on Scenic Road and Porteous Ave: (Approx $750K) and Center Blvd (portion from Pastori to Town limits): slurry seal in collaboration with San Anselmo; replaced Canyon Rd Retaining Wall (Approx $450K).
• Created and presented Five-Year Plan for Streets and Roads Improvement program. • Hired contractors to assess and grind Town sidewalks ($170K), and performed Bothin Creek Cleaning ($30K).
• Implemented rebate program to encourage the use of electric landscaping equipment.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains required and other supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements consist of a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. They provide information about the activities of the Town as a whole and present a longer-term view of the Town’s finances.
The Statement of Net Position presents information on all of the Town’s assets, deferred outflows and deferred inflows, and liabilities, with the difference between the two reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or declining.
The Statement of Activities and Changes in Net Position presents information showing how the Town’s net assets changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, some of the revenues and expenses reported in this statement may result in cash flows only in future fiscal periods, such as revenues related to uncollected taxes and interest expense incurred but not paid.
6 Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other governmental entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Funds of governmental entities are divided into two categories: governmental funds and businesstype funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on (1) short-term inflows and outflows of spendable resources and (2) the remaining year-end balances available for spending. This information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental fund financial statements is narrower than that of the governmentwide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances provide a reconciliation to assist the reader with this comparison between governmental funds and governmental activities.
The Town maintains 22 individual governmental funds. In the governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances, information is presented as Major Fund and Non-major Governmental Funds. The Major Fund includes the following funds of the General Fund:
• General Fund
• Dry Period Financing Fund
• Equipment Replacement Fund
• Building and Planning Fund
• Building Improvement Fund
• Retirement Fund
• Office Equipment Replacement Fund
The balance of the funds is represented in the Non-major Governmental Funds, and is further broken down into three categories here: Special Revenue, Capital Projects, and Debt Service.
Special Revenue funds generally account for revenues derived from specific sources. These funds are required by statute or ordinance to finance particular functions or activities of government. They include the following funds:
• Gas Tax Fund
• Special Police Fund
• Open Space Fund
• Fairfax Festival Fund
• Measure F Municipal Services Fund
• Measure A/AA Transportation Fund
• Measure A – Parks Fund
• Federal Stimulus Funds (ARPA)
7 Capital Projects funds are used to account for financial resources used for the acquisition or construction of major capital facilities, infrastructure, and equipment other than those financed by proprietary funds. They include the following funds:
• Grants Fund
• Town Fund
• Storm Projects Fund
Non-major Governmental Funds: Debt Service. The Measure K Debt Service funds are used to account for principal and interest payments on the Town’s Measure K bond debts:
• Measure K Debt Service Series 2008 Fund
• Measure K Debt Service Series 2012 Fund
• Measure K Debt Service Series 2016 Fund
• Lease Agreement (CalPERS Refinance)
Agency Funds
Agency funds are used to account for assets held by the Town in a fiduciary capacity or as an agent for individuals, governmental entities, and others. There are no current Agency Funds.
Business-type Funds
The Town maintains no business-type funds, or Enterprise funds, which are often used for utility services such as water & sewer, and transportation services, such as ports & airports.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements follow the basic financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information other than this discussion and analysis concerning the Town’s budgetary comparison schedules and PERS schedule of funding progress. 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS
The Town has presented its financial statements in accordance with GASB Statement No. 34, Basic Financial Statements – Management’s Discussion and Analysis – for State and Local Governments. Please note that the Town does not conduct any business-type activities and therefore, all financial analysis schedules only show governmental activities.
Net Position
Net position for the Town are summarized below and an analysis follows:
Net position invested in capital assets (e.g., land, buildings, equipment, and infrastructure) of $8,906,889 at the end of fiscal year 2024 represents the cost of these assets less any outstanding debt used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Resources needed to repay the outstanding debt must be provided from other sources other than the related assets, because the capital assets themselves cannot be used to repay these debts.
Restricted net assets of $1,122,971 at the end of fiscal 2024 represent resources that are subject to external restrictions on how they may be used. The remaining unrestricted net assets is available to finance day-to-day operations without constraints.
Governmental Activities Percentage
2023 (restated) 2024 Change
Cash and investments $ 8,059,149 $ 6,656,511 17.4%
Capital assets, net 9,281,814 10,851,389 -16.9%
Other assets 905,126 877,434 3.1%
Total assets 18,246,089 18,385,334 -0.8%
Deferred outflow of resources 3,868,133 3,128,349 19.1% Current liabilities 3,590,569 3,589,627 0.0%
Non-current liabilities 12,330,390 12,172,732 1.3%
Total liabilities 15,920,959 15,762,359 1.0%
Deferred inflow of resources 5,925,689 4,421,926 25.4%
Invested in capital assets, net 6,806,314 8,906,889 -30.9% Restricted 1,132,128 1,122,971 0.8%
Unrestricted (7,670,868) (8,700,462) -13.4%
- -
Net position $ 267,574 $ 1,329,398 -396.8%
9 Changes in Net Position
Changes in net position for the Town are summarized below and an analysis follows:
Governmental Activities Percentage
2023 (restated) 2024 Change
Revenues:
Program revenues:
Charges for services $ 1,652,599 1,588,355 $ 4.0%
Operating grants & contributions 797,504 1,033,648 -22.8% General revenues:
Taxes 12,261,930 11,348,996 8.0%
Use of Money & Property 227,603 161,521 40.9%
Miscellaneous 774,608 748,068 3.5%
Transfers - -
Total revenues 15,714,244 14,880,588 5.6%
Expenses:
General government 3,410,808 9,456,460 -63.9%
Public safety 7,246,604 6,827,502 6.1%
Public works 1,406,756 1,483,886 -5.2%
Planning & Building 1,450,927 1,494,588 -2.9%
Parks and recreation 786,217 712,694 10.3%
Debt Service 351,108 617,707 -43.2%
Total expenses 14,652,420 20,592,837 -28.8%
Change in net assets 1,061,824 (5,712,249) -118.6%
Net assets - beginning of year 267,574 5,979,823 -95.5% Net assets - end of year $ 1,329,398 267,574 $ 396.8%
Net position increased $1,061,824 during the fiscal year ended June 30, 2024. Total revenues for fiscal year 2024 were $15,714,244 as compared to $14,880,588 for fiscal year 2023.
The $833,656 (5.6%) increase in revenues the fiscal year ended June 30, 2024 is attributed to an 8.0% increase in tax receipts, and a 40.9% increase in investment earnings; increased miscellaneous revenues and charges for services. Operating grants & contributions decreased $236,144 (-22.8%).
Total expenses for the year ended June 30, 2024 were $14,652,420 compared with $20,592,837 for the same period in 2023. The decrease of $5,940,417 in expenses primarily from the $5,838,970 increase in pension expense in 2023 from disappointing returns in PERS investments passed through to employers. All department expenses decreased (except for public safety and Parks & Recreation) due to inflation, the addition of personnel and salary increases. The interest on long term debt decreased by $266,599 (-43.2%).
10 ANALYSIS OF MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund is the chief operating fund of the Town of Fairfax. At June 30, 2024, the unassigned fund balance of the General Fund was $5,288,526.
General Fund revenue during the FY 2023-24 year totaled $12,391,365 which was more than the final budgeted amount by $832,698 or 6.7%. This revenue increase primarily relates to the Town’s projection of sales & property taxes, assessments, franchise fees and revenue from other agencies which were lower than actual receipts.
General Fund expenditures for FY 2023-24 totaled $13,601,356 and were lower than the final budgeted amount by $100,009 or .7%. This is in part due to delaying certain expenditures, such as hiring several director positions and savings in budgeted contract services, and capital outlay.
Federal Stimulus Fund
The Federal Stimulus Fund is the largest special revenue fund for the Town of Fairfax. There were no fund receipts during the FY 2023-24 year which was the budgeted amount.
All of these receipts for this funds are classified as a “deferred, or unearned revenue” (a liability account) for the amounts in excess of current expenditures.
At the end of the current fiscal year, the fund balance was $0 due to the deferral of the greater portion of the receipts until such time as they are committed.
Grants Capital Projects Fund
The Grants Capital Projects fund is the main capital project fund for the Town of Fairfax. At the end of the current fiscal year, the committed fund balance was $88,920.
Grant Capital Projects Fund revenue during the FY 2023-24 year totaled $45,443 which was under the final budgeted amount of $1,589,948 by $1,544,508. This revenue decrease primarily relates to the Town’s projection of the timing of projects which were delayed to future fiscal periods. Revenues are received primarily on a reimbursement basis.
Grant Capital Projects Fund expenditures for FY 2023-24 totaled $1,092,269, and were lower than the final budgeted amount by $270,931. This is in part due to extending the timing of road & bridge projects; delaying certain expenditures, particularly Public Works and Capital Improvement Program projects, due to lack of staff and other road emergencies that took the time planned for these projects.
Storm Capital Projects Fund
The Storm Capital Projects Fund is for the storm recovery capital projects partially or fully funded by federal and state grants. At the end of the current fiscal year, the fund deficit was ($901,062), down $1,248 from the prior year.
Storm Capital Projects Fund revenue during the FY 2023-24 year totaled $27,250 Expenditures for the same period totaled $26,002. Expenses not reimbursed will be covered by transfers from the General Fund.
11 Town Capital Projects Fund
The Town Capital Projects fund is for capital projects funded by the Town of Fairfax, Measure F and Measure A. At the end of the current fiscal year, the fund deficit was ($265,515) compared with the prior year deficit of ($247,453).
The Town Capital Projects Fund revenue during the FY 2023-24 year totaled $963,200 from transfer in from other funds. This revenue was less than budgeted primarily because transfers are not done from some funds if the underlying project is not completed. Measure A Transportation funds designated for reimbursement of related expenses have not been transferred.
Grant Capital Projects Fund expenditures for FY 2023-24 totaled $981,342 compared to the budget of $1,460,000. The difference is due to extending the timing of projects. Expenses not reimbursed will be covered by the General Fund. A significant road slurry seal project was delayed due to unexpectedly high bids which caused the Council to reject all bids and begin the bid process again with a smaller scope of work.
ECONOMIC OUTLOOK AND NEXT YEAR’S BUDGET
Fairfax continued to experience the strong economic growth of the Bay Area in 2023-2024 despite the lingering effects of post COVID-19. Record high property values and robust real estate sales resulting from population shifts influenced by the work-from-home policies continued to benefit Town revenue streams in 2023-2024. Noticeable cooling of property taxes is anticipated in 2024-2025 due to possible recession and local factors. Sales Tax growth has declined in some sectors impacted by COVID policies but soared in others, as with add-on district sales tax revenues from internet sales. The 2024- 2025 sales tax growth is projected to decline, however sales tax is a much smaller portion of overall revenues than property taxes are in Fairfax. Overall, next year revenues are expected to continue to grow for the Town, albeit at a slower pace than in recent years.
The Town will face increasing pension costs due in part to volatile stock markets, possible actions at the state level to decrease the discount rate on projected CalPERS earnings and unaccrued liability charges to member agencies. The Town has buffered itself from this impact by financing its unaccrued liability (UAL) previously. The Town has eliminated or reduced many of the other post-employment benefits (OPEB) for new employees (hired after July 1, 2013) which will lower future costs for retiree health care.
The budget for 2024-2025 projects and contracting services increased expenditures for critical projects.
For example, roads projects and completing the State mandated Housing Element Update. In 2023- 2024, a new Planning and Building Services Director and Housing Planner were hired to complete the rezoning and program implementation needed. A full-time Deputy Clerk/Administrative Analyst position was created, but the Communications Coordinator and shared services Administrative Analyst with Corte Madera were not funded, making this change cost neutral. 12 The Town budgeted $4.1 million in its 2023-24 capital improvement program, which wasn’t completely expended during the year due to road emergencies and lack of staff capacity. The 2024- 2025 Capital appropriations total $3.0 million which includes road repairs and bridge replacements.
Funding for the Pavilion seismic retrofit has been suspended, but a smaller kitchen renovation for the Pavilion is still planned. $1.34 million has been earmarked for road maintenance, and improvement projects for approximately $286,000, the majority of which will be grant funded. $1.85 million is being provided for bridge renovation, and planned projects include sidewalk repair, park and trail improvements and storm drains. The impacts of inflation and anticipated national recession make it difficult to estimate the true long term fiscal impact on our financial resources. Such factors as the diminishing availability and increasing cost of labor and services will continue to provide a challenge to the Town for the upcoming year.
REQUESTS FOR INFORMATION
This financial report is designed to provide our residents, taxpayers, creditors and government regulators with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the money it receives. Below is the contact address for questions about this report or requests for additional financial information.
Finance Director
Town of Fairfax
142 Bolinas Road
Fairfax, CA 94930
(415) 458-2350
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BASIC FINANCIAL STATEMENTS
Governmental-Type
Activities
ASSETS
Cash and investments (Note 2) $6,028,515
Restricted cash and investments (Note 2) 627,996
Accounts receivable 523,211
Loans receivable 210,000
Taxes receivable 73,517
Interest receivable 70,706
Capital assets:
Land and construction in progress (Note 4) 5,339,687
Depreciable capital assets, net of accumulated depreciation (Note 4) 5,511,702 Total Assets 18,385,334
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 6) 2,324,798
Related to OPEB (Note 8) 803,551
Total Deferred Outflows of Resources 3,128,349
LIABILITIES
Accounts payable 360,949
Accrued payroll 183,488
Deposits payable 57,319
Interest payable 137,473
Unearned revenue 1,591,049
Compensated absences payable (Note 1G):
Due within one year 97,041
Due in more than one year 437,895
Claims payable (Note 9):
Due within one year 163,308
Long-term debt (Note 5):
Due within one year 999,000
Due in more than one year 9,230,500
Net pension liability (Note 6)
Due in more than one year 2,233,126
Net OPEB liability (Note 8):
Due in more than one year 271,211
Total Liabilities 15,762,359
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 6) 3,374,625
Related to OPEB (Note 8) 1,047,301
Total Deferred Inflows of Resources 4,421,926
NET POSITION (Note 1L):
Net investment in capital assets 8,906,889
Restricted for:
Pension 181,328
Special projects 493,345
Debt service 448,298
Total Restricted Net Position 1,122,971
Unrestricted (8,700,462)
Total Net Position $1,329,398
TOWN OF FAIRFAX
STATEMENT OF NET POSITION
See accompanying notes to financial statements
JUNE 30, 2024
16 Program Revenues Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Functions/Programs Expenses Services Contributions Contributions Net Position Governmental Activities:
General government $3,410,808 $618,766 $180,032 ($2,612,010) Public safety 7,246,604 166,907 408,704 (6,670,993)
Public works 1,406,756 1,929 143,334 $54,443 (1,207,050) Planning and building 1,450,927 713,768 (737,159)
Parks and recreation 786,217 151,229 10,991 (623,997)
Interest and fiscal charges 351,108 (351,108)
Total Governmental Activities $14,652,420 $1,652,599 $732,070 $65,434 (12,202,317) General revenues:
Property taxes 7,954,242
Utility user tax 517,487
Sales taxes 2,063,653
Other taxes 1,726,548
Investment earnings 227,603
Miscellaneous 774,608
Total General Revenues 13,264,141
Change in Net Position 1,061,824
Net Position-Beginning, As Restated (Note 1N) 267,574
Net Position-Ending $1,329,398
TOWN OF FAIRFAX
FOR THE YEAR ENDED JUNE 30, 2024
STATEMENT OF ACTIVITIES
See accompanying notes to financial statements
17 Federal
Stimulus Grants Storm
General Special Revenue Capital Projects Capital Projects Fund Fund Fund Fund
ASSETS
Cash and investments (Note 2) $3,946,165 $1,591,049
Restricted cash and investments (Note 2) 181,328
Receivables (net of allowances):
Accounts 495,614
Loans 210,000
Taxes 73,517
Interest 70,706
Due from other funds (Note 3) 1,054,363 $963,411
Total Assets $6,031,693 $1,591,049 $963,411
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $292,360 $36,355
Accrued payroll 183,488
Deposits payable 57,319
Unearned revenue $1,591,049
Due to other funds (Note 3) 838,136 $901,062
Total Liabilities 533,167 1,591,049 874,491 901,062
Deferred Inflows of Resources
Unavailable revenue - loans receivable 210,000
Total Deferred Inflows of Resources 210,000
Fund Balances (Note 1L):
Restricted 181,328
Committed 88,920
Unassigned 5,107,198 (901,062)
Total Fund Balances (Deficits) 5,288,526 88,920 (901,062) Total Liabilities and Fund Balances $6,031,693 $1,591,049 $963,411
TOWN OF FAIRFAX
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
See accompanying notes to financial statements
18 Town Non-Major
Capital Projects Governmental
Fund Funds Total
$7,215 $484,086 $6,028,515
446,668 627,996
27,597 523,211
210,000
73,517
70,706
2,017,774
$7,215 $958,351 $9,551,719
$31,795 $439 $360,949
183,488
57,319
1,591,049
241,015 37,561 2,017,774
272,810 38,000 4,210,579
210,000
210,000
942,430 1,123,758
88,920
(265,595) (22,079) 3,918,462
(265,595) 920,351 5,131,140
$7,215 $958,351 $9,551,719
19 JUNE 30, 2024
Total fund balances reported on the governmental funds balance sheet $5,131,140 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 10,851,389 Certain other long-term assets are not available to pay current period expenditures and, therefore, are reported as unavailable revenue in the governmental funds. 210,000
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Interest payable (137,473)
Compensated absences (534,936)
Claims payable (163,308)
Long-term debt (10,229,500)
Net pension asset and pension-related deferred outflows and inflows of resources (3,282,953) Net OPEB liability and OPEB-related deferred outflows and inflows of resources (514,961) NET POSITION OF GOVERNMENTAL ACTIVITIES $1,329,398
See accompanying notes to financial statements
TOWN OF FAIRFAX
Reconciliation of the
GOVERNMENTAL FUNDS - BALANCE SHEETS
with the
STATEMENT OF NET POSITION
20 This page intentionally left blank.
Federal
Stimulus Grants Storm
General Special Revenue Capital Projects Capital Projects Fund Fund Fund Fund
REVENUES
Property taxes $6,401,283
Special assessments 570,599
Sales taxes 2,063,653
Permits, licenses and fees 780,621
Fines, forfeitures and penalties 34,967
From other agencies 1,464,351 $175,000 $45,443
Franchise fees 490,133
Services charges 195,649
Use of money and property 253,672
Other revenue 136,437
Total Revenues 12,391,365 175,000 45,443
EXPENDITURES
Current:
General government 2,716,008
Public safety 7,172,009
Public works 1,192,940
Planning and building 1,432,174
Parks and recreation 698,348
Capital outlay 389,877 1,092,269 $26,002
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 13,601,356 1,092,269 26,002
REVENUES OVER (UNDER) EXPENDITURES (1,209,991) 175,000 (1,046,826) (26,002)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3) 1,061,800 1,057,545 27,250
Transfers (out) (Note 3) (1,011,250) (175,000)
Total Other Financing Sources (Uses) 50,550 (175,000) 1,057,545 27,250 Net change in fund balance (1,159,441) 10,719 1,248
FUND BALANCE (DEFICIT)
Beginning of the year 6,447,967 78,201 (902,310)
End of the year $5,288,526 $88,920 ($901,062)
TOWN OF FAIRFAX
GOVERNMENTAL FUNDS
STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2024
See accompanying notes to financial statements
22 Town Non-Major
Capital Projects Governmental
Fund Funds Total
$495,759 $6,897,042
570,599
2,063,653
780,621
34,967
1,854,063 3,538,857
490,133
85,754 281,403
253,672
666,860 803,297
3,102,436 15,714,244
2,716,008
7,172,009
1,192,940
1,432,174
81,267 779,615
$981,342 12,000 2,501,490
906,000 906,000
362,169 362,169
981,342 1,361,436 17,062,405
(981,342) 1,741,000 (1,348,161)
963,200 4,000 3,113,795
(1,927,545) (3,113,795)
963,200 (1,923,545)
(18,142) (182,545) (1,348,161)
(247,453) 1,102,896 6,479,301
($265,595) $920,351 $5,131,140
23 with the
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($1,348,161)
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
The capitalized expenditures are therefore added back to fund balance 2,011,115 (Capitalized expenditures is the net of total capital outlay of $1,964,726 and non-capitalized capital outlay expenditures of $1,266,043)
Depreciation expense is deducted from the fund balance (441,540)
LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 906,000
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Compensated absences (60,852)
Net OPEB liability and OPEB-related deferred outflows and inflows of resources 361,725 Claims payable (19,198)
Interest payable 11,061
Collective net pension liability and pension-related deferred outflows and inflows of resources (358,326) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $1,061,824 See accompanying notes to financial statements
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
TOWN OF FAIRFAX
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
24 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Town of Fairfax (Town), California, have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Town’s accounting policies are described below.
A. Financial Reporting Entity
The Town was incorporated in 1931 and is situated near the cities of San Anselmo and San Rafael in the North Bay of the San Francisco Bay Area. The Town operates under the Council-Manager form of government, incorporated under general law in 1931 and provides the following services: public safety (police), planning and building, public works and streets, park services, and general administration services.
The Town is governed by a five-member council elected by Town residents. The Town is legally separate and fiscally independent, which means it can issue debt, set and modify budgets and fees and sue or be sued. The accompanying basic financial statements include the financial activities of the Town, as the primary government.
Blended Component Unit – The Fairfax Financing Authority The Fairfax Financing Authority (Authority) is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the Town. The Authority has the power to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public or negotiated sale. The Authority is controlled by the Town and has the same governing body as the Town, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the 2008, 2012, 2016, and 2020 Lease Financing Series Debt Service Funds.
B. Basis of Accounting and Measurement Focus
The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government – Wide Financial Statements
The Town’s government–wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of the governmental activities for the Town, the primary government, accompanied by a total column.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the Town’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources, including capital assets and related current year infrastructure asset additions and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
25 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Basis Accounting and Measurement Focus (Continued)
Certain types of transactions are reported as program revenues for the Town and are presented in the following categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. The following interfund activities have been eliminated:
• Due to/from other funds
• Transfers in/out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. The Town has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus.
Accordingly, only current assets and deferred outflows of resources, and current liabilities and deferred inflows of resources, generally are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financial sources) and decreases (expenditures and other financial uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Town, are property taxes, charges for services, federal and state grants, sales tax, and interest. Expenditures are recognized in the accounting period in which the related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized.
C. Recognition of Interest Liability
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities.
In the fund financial statements, interest payable on long-term debt is recognized as the liability is incurred. 26 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Use of Restricted and Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the Town’s policy is to apply restricted net position first.
E. Cash, Cash Equivalents and Investments
The Town pools cash and investments from all sources, for the purpose of increasing income through investment activities. Interest income on investments is allocated on the basis of average month-end cash and investment balances in each fund. Cash and cash equivalents represent cash and investments and restricted cash and investments with an original maturity term of three months or less.
F. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated fixed assets are valued at their estimated fair value on the date donated. Town policy has set the capitalization threshold for reporting capital assets at $5,000. Depreciation is recorded on a straightline basis over estimated useful lives of the assets as follows:
Buildings 25-50 years
Improvements other than buildings 20 years
Vehicles 6-15 years
Machinery and equipment 5-20 years
Infrastructure 20-65 years
Assets are grouped by asset type into one of the following accounts – land, other improvements, infrastructure (e.g. roads, bridges, sidewalks, and similar items), buildings (and improvements), machinery and equipment, vehicles, and construction in progress.
The Town defines infrastructure as the basic physical assets that allow the Town to function. The assets include streets and park lands. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems are not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
G. Compensated Absences
Government-Wide Financial Statements
For governmental activities, compensated absences are recorded as incurred and the related expenses and liabilities are recorded in the Government-Wide Financial Statements.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the Town’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources.
27 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Compensated Absences (Continued)
Compensated absences include vacation and sick leave. It is the policy of the Town to pay 100% of the accumulated vacation leave when an employee retires or terminates employment. The Town recognizes the liability for its compensated absences in the governmental activities, which is liquidated by the General Fund.
The following is a summary of compensated absences transactions during the fiscal year ended June 30, 2024:
Governmental
Activities
Beginning Balance $474,084
Additions 118,137
Payments (57,285)
Ending Balance $534,936
Current Portion $97,041
H. Property Tax Levy Collection and Maximum Rates
The State of California (State) Constitution Article XIIIA provides that the combined maximum property tax rate on any given property may not exceed one percent (1%) of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIIIA and may be adjusted by no more than two percent (2%) per year unless the property is sold, transferred, or improved. The State Legislature has determined the method of distribution of receipts from a one percent (1%) tax levy among the counties, cities, school districts, and other districts.
Marin County assesses, bills for, and collects property taxes as follows:
Secured Unsecured
Lien dates January 1 January 1
Levy dates July 1July 1
Due dates 50% on November 1 and July 1
50% on February 1
Delinquent as of December 10 (for November) August 31
April 10 (for February)
The term “unsecured” refers to taxes on personal property other than real estate, land, and buildings. These taxes are secured by liens on the property being taxed.
28 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Property Tax Levy Collection and Maximum Rates (Continued) Property taxes levied are recorded as revenue when received in the fiscal year of levy because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the Town and the County of Marin. The Teeter Plan authorizes the auditor-controller of the County of Marin to allocate 100% of the secured property taxes billed, but not yet paid. The County of Marin remits tax monies to the Town in four installments, as follows:
55% remitted on December 15
40% remitted on April 15
4.5% remitted on June 30
0.5% remitted on July 30
I. Post Employment Benefits Other than Pensions
The Town provides post-retirement health care benefits to management and miscellaneous employees starting at 10 years of service and increasing the contribution with years of service as required by current association and management agreements for employees hired after June 30, 2013. The post-retirement health benefits are either eliminated or reduced by 50%. The Town makes premium payments on a “pay-as-you-go” basis.
J. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires Town management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.
K. Net Position
Government-Wide Financial Statements
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position – This amount is all net position that do not meet the definition of “net investment in capital assets” or “restricted net position.” 29 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.
The Town’s fund balances are classified in accordance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the Town to classify its fund balances based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the Town prioritizes and expends funds in the following order:
Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are Restricted, Committed or Assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the Town Council which may be altered only by formal action of the Town Council. The Town Council can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Nonspendable amounts subject to Council commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the Town’s intent to be used for a specific purpose, but are neither Restricted nor Committed. Intent is expressed by the Town Council or its designee and may be changed at the discretion of the Town Council or its designee. This category includes nonspendables, when it is the Town’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been Restricted or Committed.
Unassigned fund balance represents residual amounts that have not been Restricted, Committed, or Assigned.
This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.
30 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Fund Balances (Continued)
Detailed classifications of the Town’s Fund Balances as of June 30, 2024, are below:
Grants Storm Town Non-Major
General Capital Projects Capital Projects Capital Projects Governmental Fund Balance Classifications Fund Fund Fund Fund Funds Total Restricted for:
Special projects $494,132 $494,132
Debt service 448,298 448,298
PARS trust - retirement benefits $181,328 181,328
Total Restricted Fund Balances 181,328 942,430 1,123,758 Committed for:
Special projects $88,920 88,920
Total Committed Fund Balances 88,920 88,920
Unassigned:
General Fund 5,107,198 5,107,198
Other major funds ($901,062) ($265,595) (1,166,657)
Non-major funds (22,079) (22,079)
Total Unassigned Fund Balances 5,107,198 (901,062) (265,595) (22,079) 3,918,462 Total Fund Balances (Deficits) $5,288,526 $88,920 ($901,062) ($265,595) $920,351 $5,131,140 General Fund Reserve Policy
The Town’s General Fund Reserve Policy requires the Town to strive to maintain a goal of 20% of projected General Fund expenditures for each fiscal year and an additional 5% for emergency situations (excluding debt service, fund transfers, and encumbered funds).
The following funds had fund balance deficits at June 30, 2024: Storm Capital Projects Fund, Town Capital Projects Fund, and Fairfax Festival Special Revenue Fund in the amounts of $(901,062), $(265,595) and $(22,079), respectively.
M. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
31 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. New GASB Pronouncements
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting for Changes and Error Corrections. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. This Statement also addresses corrections of errors in previously issued financial statements. This Statement is effective for reporting periods beginning after June 15, 2023, or the fiscal year 2023-24. The provisions of this Statement were implemented during fiscal year 2024.
During the fiscal year ended June 30, 2024, the Town determined that there was a loan that was entered into by the Town in fiscal year 2019 that the Town didn’t record. Consequently, the Town recorded prior period adjustments as follows:
FY 2023 Prior year
previously correction FY 2023
reported restatement restated
General Fund
Loans receivable $210,000 $210,000
Unavailable revenue (210,000) (210,000)
General Fund - impact on fund balance
Governmental Activities
Loans receivable $210,000 $210,000
Net position $57,574 210,000 267,574
Governmental activities - impact on net position $210,000 $267,574 O. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
32 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Leases and Subscriptions Accounting
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.
Examples of nonfinancial assets include buildings, land, vehicles, and equipment.
A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchangelike transaction.
The Town will record material leases under GASB 87 and material subscriptions under GASB 96, as required.
2. CASH AND INVESTMENTS
The Town maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the Town invests to enhance interest earnings. The pooled interest earned is allocated to the funds monthly, based on average daily cash and investment balances in these funds.
A. Summary of Cash and Investments
The following is a summary of cash and investments at June 30, 2024:
Governmental
Activities
Cash and investments $6,028,515
Restricted cash and investments 627,996
Grand Total $6,656,511
33 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS (Continued)
A. Summary of Cash and Investments (Continued)
Cash and investments were categorized as follows at June 30, 2024:
Credit Days to
Quality Ratings Fair Value Maturity
Town Treasury Deposits:
Deposits Not Rated $201,980 N/A
Petty cash Not Rated 300 N/A
Total Town Treasury Deposits 202,280
Town Treasury Investments:
Local Agency Investment Fund Not Rated 6,272,903 N/A
PARS Trust - Mutual Funds Not Rated 181,328 N/A
Total Treasury Investments 6,454,231
Total Cash and Investments $6,656,511
B. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the Town’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the Town’s name.
According to California law, the market value of pledged securities with banking institutions must equal at least 110% of the Town’s cash deposits. California law also allows institutions to secure Town deposits by pledging first trust deed mortgage notes having a value of 150% of the Town’s total cash deposits. The Town may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The Town, however, has not waived the collateralization requirements.
The Town follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on a monthly basis to the various funds based on average daily cash and investment balances.
C. Investments
The Town is authorized by State statutes and in accordance with the Town’s Investment Policy (Policy) to invest in the following:
• State Local Agency Investment Fund (LAIF)
• Insured and/or collateralized certificates of deposit • U.S. Treasury obligations which carry the full faith and credit guarantee of the United States government and are considered to be the most secure instruments available • U.S. government agency and instrumentality obligations that have a liquid market with a readily determinable market value
• Bankers' acceptances
34 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
2. CASH AND INVESTMENTS (Continued)
C. Investments (Continued)
• Commercial paper, rated in the highest tier by a nationally recognized rating agency • Investment-grade obligations of state, local governments and public authorities • Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of dollar-denominated securities In addition, investments of debt proceeds held by bond trustees are governed by the provisions of the debt agreements of the Town rather than the general provisions of the Town’s Investment Policy.
D. Investments in Local Agency Investment Funds
The Town is a voluntary participant in LAIF that is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Town’s investment in this pool as reported in the accompanying financial statements is based upon the Entity’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are U.S.
Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. At June 30, 2024, the average life on investment funds invested by LAIF was 217 days.
E. Fair Value Hierarchy
The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the Town as of June 30, 2024:
Investment Type Exempt Total
California Local Agency Investment Fund $6,272,903 $6,272,903 PARS Trust - Mutual Funds 181,328 181,328
Total Investments $6,454,231 6,454,231
Cash in banks and on hand 202,280
Total Cash and investments $6,656,511
Section 115 Pension Trust with Public Agency Retirement Services (PARS) and the California Local Agency Investment Fund (LAIF) investments are measured at amortized cost and, therefore, are exempt from being classified under GASB 72.
35 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
3. INTERFUND TRANSACTIONS
A. Interfund Transfers
Transfers during the fiscal year ended June 30, 2024, were comprised of the following:
Fund Receiving Transfers Fund Making Transfers Amount
General Fund Non-Major Governmental Funds $1,061,800
Grants Capital Projects Fund General Fund 600,000
Federal Stimulus Special Revenue Fund 175,000
Non-Major Governmental Funds 282,545
Storm Capital Projects Fund General Fund 27,250
Town Capital Projects Fund General Fund 380,000
Non-Major Governmental Funds 583,200
Non-Major Governmental Funds General Fund 4,000
Total Interfund Transfers $3,113,795
Transfers to the General Fund were for administrative costs and claims liabilities. Transfers to all other funds were for administrative costs, capital projects and special projects.
B. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after end of the fiscal year. At June 30, 2024, interfund balances were as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Town Capital Projects Fund $210,816
Grants Capital Projects Fund 838,136
Non-Major Governmental Funds 5,411
Grants Capital Projects Fund Storm Capital Projects Fund 901,062 Town Capital Projects Fund 30,199
Non-Major Governmental Funds 32,150
Total Due From Other Funds $2,017,774
36 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
4. CAPITAL ASSETS
The Town has reported all capital assets including infrastructure in the Government-Wide Statement of Net Position. The Town has elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation have been recorded.
Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements.
The following is a summary of capital assets for governmental activities:
Balance Balance
June 30, 2023 Additions Retirements Transfers June 30, 2024 Capital assets not being depreciated:
Land $255,988 $255,988
Construction in progress 4,042,414 $1,655,395 ($614,110) 5,083,699 Total capital assets not being depreciated 4,298,402 1,655,395 (614,110) 5,339,687 Capital assets being depreciated:
Buildings 423,974 423,974
Other improvements 2,309,098 29,450 2,338,548
Vehicles 824,297 159,634 ($48,000) 935,931
Machinery and equipment 487,208 107,886 595,094
Infrastructure 13,372,397 58,750 614,110 14,045,257
Total capital assets being depreciated 17,416,974 355,720 (48,000) 614,110 18,338,804 Less accumulated depreciation for:
Buildings (313,981) (3,071) (317,052)
Other improvements (1,577,073) (106,092) (1,683,165)
Vehicles (599,953) (38,994) 48,000 (590,947)
Machinery and equipment (379,513) (11,545) (391,058)
Infrastructure (9,563,042) (281,838) (9,844,880)
Total accumulated depreciation (12,433,562) (441,540) 48,000 (12,827,102) Net capital assets being depreciated 4,983,412 (85,820) 614,110 5,511,702 Governmental activity capital assets, net $9,281,814 $1,569,575 $10,851,389 37 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
4. CAPITAL ASSETS (Continued)
Depreciation expense for governmental activities depreciation expenses on capital assets for the year ended June 30, 2024, were as follows:
Depreciation
Expense
General Government $184,249
Public Safety 42,761
Public Works 214,530
Total Governmental Activities $441,540
5. LONG-TERM DEBT
The following is a summary of long-term debt transactions during the fiscal year ended June 30, 2024:
Original Amount Due in More
Issue Balance Balance Due within than One
Governmental Activity Debt: Amount June 30, 2023 Retirements June 30, 2024 One Year Year Authority Debt:
2008 General Obligation Revenue Bonds
1.50-4.70%, due 8/1/2025 $2,231,000 $640,000 ($198,000) $442,000 $215,000 $227,000 Revenue Bonds, Series 2012
2.00-3.00%, due 8/1/2027 2,880,000 1,236,500 (220,000) 1,016,500 230,000 786,500 Direct Borrowings:
2020 PERS Refinancing Lease Agreement
3.45%, due 8/1/2036 9,402,000 8,660,000 (375,000) 8,285,000 435,000 7,850,000 Town Debt:
General Obligation Refunding Bonds
Series 2016 2.10%, due 8/1/2027 1,239,000 599,000 (113,000) 486,000 119,000 367,000 Total Government Activity Debt - Net $11,135,500 ($906,000) $10,229,500 $999,000 $9,230,500 2008 General Obligation Revenue Bonds
2008 General Obligation Revenue Bonds in the principal amount of $2,231,000 were issued on August 21, 2008, by the Fairfax Financing Authority to provide funds to acquire the 2008 General Obligation Refunding Bonds (2008 Town Bonds) concurrently issued by the Town. Proceeds from these 2008 Town Bonds were used to refund the 2000 General Obligations Bonds as well as to fund certain capital projects within the Town. The 2008 Town Bonds are general obligations of the Town repayable from ad valorem property taxes levied by the County. Annual principal and interest payments on the 2008 Town Bonds are expected to require less than 10 percent of property tax revenues. 2008 Town Bonds debt service remittances by the Town are pledged for and used by the Authority to make debt service payments on the 2008 General Obligation Revenue Bonds to third party bond holders.
38 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
5. LONG-TERM DEBT (Continued)
The substance of these two bond issues is that the Town and Authority are obligated to repay debt service from property tax collections. Under generally accepted accounting principles, the activities of the Town and Authority have been consolidated together (termed “blended”) and transactions and balances of the 2008 Town Bonds have been eliminated for financial reporting purposes. 2008 Revenue Bond principal payments are payable on August 1 of each year and interest payments are payable semi-annually on February 1 and August 1. 2008 Revenue Bonds maturing on or after August 1, 2017, are subject to call on any interest payment date at par, plus a premium of 1% to 2% of the principal amount. 2008 Revenue Bonds maturing on August 1, 2026, are subject to early redemption without premium on or after August 1, 2025, from the mandatory sinking fund redemptions. Term 2008 Revenue Bonds maturing August 1, 2031, are also subject to mandatory early redemptions from the sinking fund payments commencing August 1, 2028.
The 2008 General Obligation Revenue Bonds are general obligations of the Town and Authority, payable solely from ad valorem property taxes levied by the Town and collected by Marin County. The bond covenants contain events of default that require the revenue of the Town to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Town to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Town; or if any court or competent jurisdiction shall assume custody or control of the Town. No such events occurred during the fiscal year ending June 30, 2024.
Revenue Bonds, Series 2012
Revenue Bonds, Series 2012 in the principal amount of $2,880,000 were issued on March 1, 2012, by the Fairfax Financing Authority to provide funds to acquire the 2012 General Obligation Refunding Bonds (2012 Town Bonds) concurrently issued by the Town. Proceeds from these 2012 Town Bonds were used to repay the 2002 General Obligations Bonds as well as to fund certain capital projects within the Town. The 2012 Town Bonds are general obligations of the Town repayable from ad valorem property taxes levied by the County and debt service remittances by the Town are pledged for and used by the Authority to make debt service payments on the Revenue Bonds, Series 2012 to third party bond holders.
The substance of these two bond issues is that the Town and Authority are obligated to repay debt service from property tax collections. Under generally accepted accounting principles, the activities of the Town and Authority have been consolidated together (termed “blended”) and transactions and balances of the 2012 Town Bonds have been eliminated for financial reporting purposes.
Revenue Bond principal payments are payable on August 1 of each year and interest payments are payable biannually on February 1 and August 1. Revenue Bonds maturing on or after August 1, 2021, are subject to call on any interest payment date at par, plus a premium of 1% to 2% of the principal amount. Revenue Bonds maturing on August 1, 2022, are subject to early redemption without premium on or after August 1, 2021, from the mandatory sinking fund redemptions.
39 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
5. LONG-TERM DEBT (Continued)
The Revenue Bonds, Series 2012 are general obligations of the Town and Authority, payable solely from ad valorem property taxes levied by the Town and collected by Marin County. The bond covenants contain events of default that require the revenue of the Town to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Town to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Town; or if any court or competent jurisdiction shall assume custody or control of the Town. No such events occurred during the fiscal year ending June 30, 2024. 2020 PERS Refinancing Lease Agreement – Direct Borrowing On September 29, 2020, the Town entered into a lease agreement with the Fairfax Financing Authority, in the amount of $9,402,000, to finance all or a portion of the existing Unfunded Actuarially Accrued Liability of the Town to CalPERS and refinance the Town’s obligations under a 2017 Lease Agreement. The agreement was assigned to Capital One Public Funding LLC on September 29, 2020. The agreement carries an interest rate of 3.45%. Principal and interest rates are payable semi-annually on February 1 and June 30, commencing February 1, 2021. The refinancing resulted in a net present value savings over the life of the lease in the amount of $2,257,124. As a result, the 2017 PERS Refinancing Lease Agreement is considered defeased and the liability for that lease has been removed from the Town’s Statement of Net Position. 2016 General Obligation Refunding Bonds
In 2016, the Town issued $1,239,000 in General Obligation Refunding Bonds with an interest rate
2.10%. The proceeds were used to advance refund $1,330,000 of the Town’s outstanding 2006 General Obligation Bonds. The net proceeds, together with an additional $110,263, were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds. As a result, the 2006 General Obligation Bonds are considered defeased and the liability for those bonds has been removed from the Town’s Statement of Net Position.
The Refunding Bonds, Series 2016, are general obligations of the Town, payable solely from ad valorem property taxes levied by the Town and collected by Marin County. The bond covenants contain events of default that require the revenue of the Town to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Town to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Town; or if any court or competent jurisdiction shall assume custody or control of the Town. No such events occurred during the fiscal year ending June 30, 2024.
40 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
5. LONG-TERM DEBT (Continued)
Debt Service Requirements
The Town’s annual debt service requirements through maturity are as follows:
For The Year
Ending June 30 Principal Interest Principal Interest Total 2025 $564,000 $45,616 $435,000 $279,311 $1,323,927
2026 597,000 27,521 472,000 263,770 1,360,291
2027 381,000 13,755 515,000 246,848 1,156,603
2028 402,500 4,698 557,000 228,459 1,192,657
2029 601,000 208,588 809,588
2030 - 2034 3,646,000 689,914 4,335,914
2035 - 2039 2,059,000 102,533 2,161,533
$1,944,500 $91,590 $8,285,000 $2,019,423 $12,340,513
Other Long-Term Debt Direct Borrowings
6. EMPLOYEE RETIREMENT PLAN
A. General Information about the Pension Plan
Plan Description – All qualified permanent, probationary and part-time employees are eligible to participate in the Town’s Safety (police and fire) and Miscellaneous (all other) Employee Pension Rate Plans. The Town’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The Town sponsors six rate plans (three miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 41 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
A. General Information about the Pension Plan (Continued) The Plan’s provisions and benefits in effect at June 30, 2024, are summarized as follows:
Classic Tier I Classic Tier II PEPRA
Hire date
Prior to
October 30, 2012
On or after October
30, 2012
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% - 2.5% 1.426% - 2.418% 1.0% - 2.5% Required employee contribution rates 8% 7% 8.250%
Required employer contribution rates 14.200% 12.630% 8.000% Classic Tier I Classic Tier II PEPRA
Hire date
Prior to
October 30, 2012
On or after October
30, 2012
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% - 3% 2.0% - 2.7% Required employee contribution rates 9% 9% 14.500%
Required employer contribution rates 27.630% 24.790% 14.500% Miscellaneous
Safety
CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. The Town’s required contribution for the unfunded liability and side fund was $7,306 in fiscal year 2024.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2024, the contributions to the Plan were as follows:
Miscellaneous Safety Total
Contributions - employer $255,872 $254,720 $510,592
42 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
As of June 30, 2024, the Town reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Proportionate Share
of Net Pension Liability
Miscellaneous $906,336
Safety 1,326,790
Total Net Pension Liability $2,233,126
The Town’s net pension asset for the Plan is measured as the proportionate share of the net pension asset. The net pension asset of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension asset was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The Town’s proportion of the net pension asset was based on a projection of the Town’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability (asset) for the Plan as of June 30, 2022 and 2023 was as follows:
Miscellaneous
Proportion - June 30, 2022 0.01137%
Proportion - June 30, 2023 0.01813%
Change - Increase (Decrease) 0.00676%
Safety
Proportion - June 30, 2022 0.01173%
Proportion - June 30, 2023 0.01775%
Change - Increase (Decrease) 0.00602%
Total
Proportion - June 30, 2022 0.02310%
Proportion - June 30, 2023 0.03588%
Change - Increase (Decrease) 0.01278%
43 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2024, the Town recognized pension expense of $358,326. At June 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $255,872 Differences between actual and expected experience 46,301 Change in assumptions 54,720 ($7,182)
Differences between actual contributions and
proportionate share of contributions 402,338 (619,749)
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 139,172 (839,903)
Net differences between projected and actual earnings
on plan investments 146,744
Total $1,045,147 ($1,466,834)
Safety:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $254,720 Differences between actual and expected experience 97,411 ($8,339) Change in assumptions 77,433
Differences between actual contributions and
proportionate share of contributions 571,328 (1,137,536) Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 97,188 (761,916)
Net differences between projected and actual earnings
on plan investments 181,571
Total $1,279,651 ($1,907,791)
Combined Total $2,324,798 ($3,374,625)
44 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$510,592 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous: Safety: Total:
Annual
Amortization
Annual
Amortization
2025 ($388,826) ($514,158) ($902,984)
2026 (348,723) (401,263) (749,986)
2027 55,778 27,492 83,270
2028 4,212 5,069 9,281
Total ($677,559) ($882,860) ($1,560,419)
Annual
Amortization
Year Ended
June 30
Actuarial Assumptions – For the measurement period ended June 30, 2023, the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions for all rate plans:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 3.00%
Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 6.9% (2)
Mortality Derived using CalPers Membership Data for all Funds (3) Post Retirement Benefit Increase
The lesser of Contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.30% thereafter
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, includes inflation (3) The mortality table used was developed based on CalPERS' specific data. The table includes generational mortality improvements using Society of Actuaries Scale 80% of Scale MP 2020. For more details on this table, please refer to the CalPERS November 2021 experience study report (based on CalPERS demographic data from 2001 to 2019) that can be found on the CalPERS website.
All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on the results of a November 2021 actuarial experience study for the period of 2001 to 2019.
Further details of the Experience Study can be found on the CalPERS website. 45 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the expected real rates of return by asset class.
Asset Class(a)
Assumed Asset
Allocation Real Return 1,2
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.00%) (0.59%)
100.0%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study. 46 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
In July 2018, the Town established a Section 115 Pension Trust with Public Agency Retirement Services (PARS). PARS, the trust administrator, partners with U.S. Bank and HighMark Capital Management to provide trustee and investment advisory services, respectively. This trust was established to set aside moneys to meet the Town’s future pension contributions or unfunded liabilities. Financial statements of PARS may be obtained from PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the Town’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety Total
1% Decrease 5.90% 5.90% 5.90%
Net Pension Liability $3,234,918 $4,758,085 $7,993,003
Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability $906,336 $1,326,790 $2,233,126
1% Increase 7.90% 7.90% 7.90%
Net Pension Liability ($1,010,287) ($1,478,538) ($2,488,825) Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 47 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
7. DEFINED CONTRIBUTION RETIREMENT PLANS
The Town contributes to VantageTrust, which administers two defined contribution retirement plan. A deferred compensation retirement plan provides retirement benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s accounts are determined instead of specifying the amount of benefits the individual is to receive. The benefits a participant will receive depend on the amount contributed to the participant’s account, and the returns earned on investments on those contributions. The first Plan’s trust administrator is The International City Management Association Retirement Corporation (ICMA-RC), 777 North Capitol Street, N.E., Suite 600, Washington, D.C., 20002-4240. The second Plan’s trust administrator is MissionSquare, a nonprofit organization existing under the laws of the state of Delaware.
As established by the first plan, all eligible part-time, seasonal, and temporary employees of the Town become participants in the plan effective July 1, 2014 or upon starting date as an employee. The second plan, has responsibility to obtain administrative services and investment alternatives for the plan, effective June 2022.
As determined by the plan, 3.75% of employees’ gross earnings go to the plan. The Town contributes an additional 3.75% of the employee’s gross earnings. Contributions made by an employee and the employer vest immediately. No forfeitures were noted during the current period.
During the year, the Town and employees each contributed $0 and $366,538 respectively. The total covered payroll of employees participating in the plan for the year ended June 30, 2024 was $3,579,588. The total payroll for the year was $3,579,588.
8. OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description and Funding Policy
The Town provides full health insurance benefits to Miscellaneous employees who retire with at least 25 years of service (20 years in Management). The Town will pay up to the one-party Kaiser basic rate for retirees. For those with 10 or more years of service, there are partial benefits. For Public Safety Employees hired on or after July 1, 2013 the Town will contribute 1% of the employee’s regular rate of pay into a Retirement Health Savings plan (RHS). Contributions to the RHS began on July 1, 2018 and continue with each pay period based on the employee’s regular rate of pay at that time. Miscellaneous employees hired after July 1, 2013 are no longer eligible for retiree benefits. For retirees not eligible for the premium-based benefit, the Town will pay the CalPERS minimum employer contribution towards premiums, which is $149 per month from July to December 2022 and $151 from January to June 2024. The cost of the benefits provided by the Plan is currently being paid along with the annual required contribution. The long-term strategy for funding the benefits provided under the Plan is currently being evaluated.
The Town participates in the California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fund OPEB. CERBT is administrated by CALPERS, and is managed by an appointed board not under the control of Town Council. This Trust is not considered a component unit by the Town and has been excluded from these financial statements. The CERBT issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
The Town’s Policy is to fund these benefits by accumulating assets with CERBT discussed above pursuant to Council Resolution 09-48. For the year ended June 30, 2024, the Town’s contributions to the Plan were $0. 48 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
A. Plan Description and Funding Policy (Continued)
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2023:
Active employees 35
Inactive employees or beneficiaries currently
receiving benefit payments 13
Inactive employees entitled to but not yet
receiving benefit payments 14
Total 62
B. Net OPEB Liability
Actuarial Methods and Assumptions – The Town’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 based on the following actuarial methods and assumptions: (a) 6.00% investment return; (b)
2.80% projected annual salary increase; and (c) health care cost trend rate increases between 3.94% - 7.00% in future years.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the Town and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the Town and plan members to that point. The actuarial methods and assumptions used include techniques that smooth the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to revision at least once every three years as results are compared to past expectations and new estimates are made about the future. The Town’s OPEB unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll using a closed nineteen-year amortization period.
The underlying mortality assumptions were based on the CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous and Police members. 49 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 49% 4.50%
Fixed Income 23% 1.40%
Global Real Estate (REITs) 20% 3.70%
Treasury Inflation-Protected Securities (TIPS) 5% 0.50% Commodities 3% 1.10%
Total 100%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that Town contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. 50 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
C. Changes in Net OPEB Liability
The changes in the net OPEB liability is shown in the following table:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2022 (Measurement Date) $1,990,802 $1,584,790 $406,012 Changes Recognized for the Measurement Period:
Service Cost 84,350 84,350
Interest on the total OPEB liability 121,156 121,156
Differences between expected and actual experience 255,364 255,364 Changes of assumptions (380,923) (380,923)
Net investment income 101,774 (101,774)
Benefit payments, including refunds of employee
contributions (113,434) (113,434)
Administrative expenses (460) 460
Net changes (33,487) 101,314 (134,801)
Balance at June 30, 2023 (Measurement Date) $1,957,315 $1,686,104 $271,211 Increase (Decrease)
Detailed information about the OPEB plan's fiduciary net position is available in the separately issued plan financial report that may be obtained from CalPERS.
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the net OPEB liability of the Town, as well as what the Town’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.00%) or 1-percentagepoint higher (7.00%) than the current discount rate:
Net OPEB Liability
Discount Rate -1% Discount Rate Discount Rate +1%
5.00% 6.00% 7.00%
$492,386 $271,211 $85,066
The following presents the net OPEB liability of the Town, as well as what the Town’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.00% to
4.46%, decreasing to an ultimate rate of 2.94%) or 1-percentage-point higher (8.00% to 6.46%, decreasing to an ultimate rate of 4.94%) than the current healthcare cost trend rates (7.00% to 5.46%, decreasing to an ultimate rate of 3.94%):
Net OPEB Liability
Healthcare Cost
1% Decrease Trend Rates 1% Increase
$60,220 $271,211 $528,584
51 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the Town recognized $(361,725) of OPEB expense. At June 30, 2024, the Town reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actual and expected experience $217,265 ($382,252) Changes of assumptions 194,209 (665,049)
Net differences between projected and actual earnings on OPEB plan investments 99,771
Contributions Subsequent to the Measurement Date 292,306 Total $803,551 ($1,047,301)
$292,306 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as reduction in the net OPEB liability in the year ended June 30, 2025. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2025 ($182,750)
2026 (157,553)
2027 (153,505)
2028 (21,319)
2029 (20,929)
Total ($536,056)
9. RISK MANAGEMENT
A. Risk Pool
The Town is a participant in the Bay Cities Joint Powers Insurance Authority (BCJPIA), which covers general liability claims in an amount up to $1,000,000. The Town has a deductible or uninsured liability of up to $50,000 per claim. Once the Town’s deductible is met, BCJPIA becomes responsible for payment of all claims up to the limit. Other coverage includes excess insurance for claims over $1,000,000.
The Town also participates in the BCJPIA for worker’s compensation insurance. BCJPIA participates in the Local Agency Worker’s Compensation Excess Insurance Joint Powers Authority’s (LAWCX) risk pool which in turn purchases coverage above $1,000,000. The Town has a deductible or uninsured liability of up to $150,000 per claim. BCJPIA pool covers claims from $150,000 to $1,000,000. Claims from $1,000,000 up to statutory are covered by LAWCX. Once the Town’s deductible is met, then BCJPIA Plan becomes responsible for payment of all claims up to the limit. Settled claims have not exceeded insurance coverage in any of the past three fiscal years by any significant amount. 52 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
9. RISK MANAGEMENT (Continued)
A. Risk Pool (Continued)
Each risk pool is governed by a board consisting of representatives from member municipalities. The board controls the operations of each risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the board.
The Town’s contributions to each risk pool equal the ratio of the Town’s payroll to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
B. Liability for Uninsured Claims
Municipalities are required to record their liability for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial statements. As discussed above, the Town has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims. The Town’s liability for uninsured claims based on claims experience was computed as follows:
June 30
2024 2023
Balance at beginning of year $144,110 $79,623
Change in liability for prior fiscal year
claims and clams incurred but not reported 124,421 119,510 Claims paid (105,223) (55,023)
Balance at end of year $163,308 $144,110
Due in one year $163,308 $144,110
During the past three years there have been no significant reductions in any of the Town’s Insurance coverage and no settlement amounts have exceeded insurance coverage.
10. JOINTLY GOVERNED ORGANIZATIONS
The Town participates in several active jointly governed organizations through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements (JPA), including selection of management and approval of operating budgets, independent of any influence by each member beyond representation on each Board. Obligations and liabilities of these jointly governed organizations are not the Town’s responsibility, and the Town does not have an equity interest in the assets of each jointly governed organization except upon dissolution.
A. Ross Valley Fire Service
The Ross Valley Fire Service (Fire Service) was established under a 1982 Joint Exercise of Powers Agreement between the Town of Fairfax, the Town of San Anselmo, the Town of Ross and the County of Marin (for Sleepy Hollow) for the purpose of providing fire protection, emergency medical, and related services within the covered area. Members of the Fire Service pay their pro rata share of the total annual contributions. Financial statements for the Fire Service may be found at www.rossvalleyfire.org. 53 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
10. JOINTLY GOVERNED ORGANIZATIONS (Continued)
B. Ross Valley Paramedic Authority (Authority)
The Authority is a joint powers agreement formed on December 14, 1982, by the Town of Fairfax, Town of Corte Madera, Kentfield Fire Protection District, Town of Larkspur, County of Marin, Town of Ross, Town of San Anselmo, and Sleepy Hollow Fire Protection District for the purpose of providing paramedic services.
The Authority is controlled by an eight member board consisting of a member from each entity. Services are provided by the County of Marin Fire Department to the Authority. The Authority’s operations are financed by its members, through property taxes on each residential unit and commercial property. The books and records are maintained by the Town of Larkspur. Financial statements for the Ross Valley Paramedic Authority may be found at www.rossvalleypa.org.
C. Marin Emergency Radio Authority (MERA)
The Town is a member of MERA, along with the County of Marin and twenty-four local government agencies. The purpose of MERA is to plan, finance, implement, own, and operate a multi-jurisdictional and countywide public safety and emergency radio system. To finance this system, in 1999 MERA issued approximately $27 million in revenue bonds. Audited financial statements may be obtained by a request to the Marin Emergency Radio Authority at Marin County Auditor-Controller, County of Marin, 3501 Civic Drive, Room 225, San Rafael, CA 94903.
D. Marin County Major Crimes Task Force
The Marin County Major Crimes Task Force, established in 1977, is a specialized undercover law enforcement unit focused on drug related and major criminal activity throughout the County of Marin. The Task Force Oversight Committee is comprised of member cities and the Marin County Sheriff.
E. Marin Clean Energy (MCE)
The Town is a member of Marin Clean Energy (MCE), a California Joint Powers Authority established on December 19, 2008, along with the Counties of Marin, Contra Costa, Napa and Solano and twenty-nine local government agencies. MCE is separate from and derives no financial support from the Town. MCE’s mission is to confront the climate crisis by eliminating fossil fuel greenhouse gas emissions, producing renewable energy, and creating equitable community. Audited financial statements can be obtained at 1125 Tamalpais Avenue, San Rafael, CA 94901.
54 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
10. JOINTLY GOVERNED ORGANIZATIONS (Continued)
F. Transportation Authority of Marin (TAM)
The Town is a member of the Transportation Authority of Marin (TAM), established on March 2, 2004, along with the County of Marin and sixteen local government agencies pursuant to Section 180050 of the California Public Utilities Code (“PUC”). TAM’s responsibilities include the development and administration of the Measure A ½‐Cent Transportation Sales Tax Expenditure Plan, approved by Marin voters in November 2004, the Measure AA ½‐Cent Transportation Sales Tax Expenditure Plan, approved by Marin voters in November 2018 and extended the revenue under Measure A for 30 years, and the Measure B $10 VRF (Vehicle Registration Fee) Expenditure Plan, approved by Marin voters in November 2010. TAM also serves as the Congestion Management Authority (CMA) for Marin County, providing countywide planning and programming for transportation related needs. As both the sales tax authority and the CMA for Marin County, TAM plays a leading role in planning, financing, and implementation of transportation projects and programs in Marin County. Audited financial statements can be obtained at 900 Fifth Avenue, Suite 100, San Rafael, CA 94901.
G. Marin Wildfire Prevention Authority (MWPA)
The Town is a member of Marin Wildfire Prevention Authority (MWPA), a California Joint Powers Authority established on March 2020, along with the County of Marin and seventeen local government agencies. In March 2020, most of Marin County residents voted to pass a special tax – Measure C ballot that is applied to all parcels of real property located in Marin County Within the defined boundary of the member entities, to fund proactive, state-of-the-art wildfire prevention and preparedness efforts. Revenues raised from the Measure C tax are used solely to plan, finance, implement, manage, own, and operate a multijurisdictional agency to prevent and mitigate wildfires in Marin County. Audited financial statements can be obtained at 28 Liberty Ship Way, Suite 2800, Sausalito, CA 94965.
11. COMMITMENTS AND CONTINGENCIES
The Town is subject to litigation arising in the normal course of business. In the opinion of the Town Attorney, there is no pending litigation which is likely to have a material adverse effect on the financial position of the Town.
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REQUIRED SUPPLEMENTARY INFORMATION
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY (ASSET)
A Cost Sharing-Employer Defined Pension Plan
Last 10 Years
Miscellaneous
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Plan's Proportion of the Net Pension Liability (Asset) 0.07748% 0.09126% 0.09001% Plan's Proportionate Share of the Net Pension Liability (Asset) $1,914,846 $2,503,788 $3,126,781 Plan's Covered Payroll $1,247,851 $1,241,911 $1,287,995 Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 153.45% 201.61% 242.76%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 81.08% 76.61% 72.56%
Safety
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Plan's Proportion of the Net Pension Liability (Asset) 0.11099% 0.10852% 0.01031% Plan's Proportionate Share of the Net Pension Liability (Asset) $4,163,196 $4,471,432 $5,341,602 Plan's Covered Payroll $809,319 $1,014,302 $1,112,774
Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 514.41% 440.84% 480.03%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 72.14% 73.40% 72.69%
Combined Total
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Plan's Proportion of the Net Pension Liability (Asset) 0.18847% 0.19978% 0.10032% Plan's Proportionate Share of the Net Pension Liability (Asset) $6,078,042 $6,975,220 $8,468,383 Plan's Covered Payroll $2,057,170 $2,256,213 $2,400,769 Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 295.46% 309.16% 352.74%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 75.75% 74.65% 74.06%
58 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
0.05890% 0.05022% 0.05510% 0.06003% -0.11510% 0.01137% 0.01813% $2,045,987 $1,892,771 $2,206,385 $2,532,177 ($2,185,481) $531,839 $906,336 $1,307,451 $1,422,171 $1,731,683 $1,795,191 $1,713,955 $2,014,672 $2,165,697 156.49% 133.09% 127.41% 141.05% -127.51% 26.40% 41.85%
84.04% 85.78% 84.16% 77.71% 110.51% 127.90% 77.97%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
0.00632% 0.05147% 0.05555% 0.06113% -0.00096% 0.01173% 0.01775% $3,272,224 $3,020,302 $3,467,642 $4,072,550 ($3,352,678) $805,906 $1,326,790 $1,102,979 $1,153,546 $1,169,226 $1,319,468 $1,071,305 $1,130,078 $1,156,817 296.67% 261.83% 296.58% 308.65% -312.95% 71.31% 114.69%
83.16% 85.20% 83.64% 73.12% 115.46% 132.41% 74.87%
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2022
0.06521% 0.10170% 0.11065% 0.12116% -0.11605% 0.02309% 0.03588% $5,318,211 $4,913,073 $5,674,027 $6,604,727 ($5,538,159) $1,337,745 $2,233,126 $2,410,430 $2,575,717 $2,900,909 $3,114,659 $2,785,260 $3,144,750 $3,322,514 220.63% 190.75% 195.59% 212.05% -198.84% 42.54% 67.21%
83.51% 85.43% 83.85% 75.10% 113.27% 130.42% 76.21%
Miscellaneous
Safety
Combined Total
59 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
Miscellaneous
For the Fiscal Year Ended June 30, 2015 2016 2017
Actuarially determined contribution $206,873 $286,615 $127,013 Contributions in relation to the actuarially determined contributions (206,873) (286,615) (1,692,298) Contribution deficiency (excess) $0 $0 ($1,565,285)
Covered payroll $1,241,911 $1,287,995 $1,307,451
Contributions as a percentage of covered payroll 16.66% 22.25% 129.43% Safety
For the Fiscal Year Ended June 30, 2015 2016 2017
Actuarially determined contribution $379,846 $544,416 $174,929 Contributions in relation to the actuarially determined contributions (379,846) (544,416) (2,966,287) Contribution deficiency (excess) $0 $0 ($2,791,358)
Covered payroll $1,014,302 $1,112,774 $1,102,979
Contributions as a percentage of covered payroll 37.45% 48.92% 268.93% For the Fiscal Year Ended June 30, 2015 2016 2017
Actuarially determined contribution $586,719 $831,031 $301,942 Contributions in relation to the actuarially determined contributions (586,719) (831,031) (4,658,585) Contribution deficiency (excess) $0 $0 ($4,356,643)
Covered payroll $2,256,213 $2,400,769 $2,410,430
Contributions as a percentage of covered payroll 26.00% 34.62% 193.27%
SCHEDULE OF CONTRIBUTIONS
A Cost Sharing-Employer Defined Pension Plan
Last 10 Years
Combined Total
60 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
2018 2019 2020 2021 2022 2023 2024
$183,010 $287,457 $281,856 $2,811,976 $187,860 $227,840 $255,872 (183,010) (287,457) (281,856) (2,811,976) (187,860) (227,840) (255,872) $0 $0 $0 $0 $0 $0 $0
$1,422,171 $1,731,683 $1,795,191 $1,713,955 $2,014,672 $2,165,697 $2,413,506
12.87% 16.60% 15.70% 164.06% 9.32% 10.52% 10.60%
2018 2019 2020 2021 2022 2023 2024
$266,312 $283,781 $414,027 $4,423,693 $220,732 $248,567 $254,720 (266,312) (283,781) (414,027) (4,423,693) (220,732) (248,567) (254,720) $0 $0 $0 $0 $0 $0 $0
$1,153,546 $1,169,226 $1,319,468 $1,071,305 $1,130,078 $1,156,817 $1,166,082
23.09% 24.27% 31.38% 412.93% 19.53% 21.49% 21.84%
2018 2019 2020 2021 2022 2023 2024
$449,322 $571,238 $695,883 $7,235,669 $408,592 $476,407 $510,592 (449,322) (571,238) (695,883) (7,235,669) (408,592) (476,407) (510,592) $0 $0 $0 $0 $0 $0 $0
$2,575,717 $2,900,909 $3,114,659 $2,785,260 $3,144,750 $3,322,514 $3,579,588
17.44% 19.69% 22.34% 259.78% 12.99% 14.34% 14.26%
Miscellaneous
Safety
Combined Total
61 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Schedule of Changes in Net OPEB Liability
Last 10 fiscal years*
Other Post-Employment Benefits (OPEB) - Agent Multiple Employer Plan Measurement Date 2017 2018
Total OPEB Liability
Service Cost $70,686 $66,761
Interest 136,346 165,840
Changes of assumptions (58,106) (45,050)
Differences between expected and actual experience 293,112 Benefit payments (40,109) (64,900)
Implicit Rate Subsidy Fulfilled (5,453) (25,787)
Net change in total OPEB liability 396,476 96,864
Total OPEB liability - beginning 1,905,187 2,301,663
Total OPEB liability - ending (a) $2,301,663 $2,398,527 OPEB fiduciary net position
Net investment income $62,741 $59,886
Contributions - Employer - Town's Contribution 160,109 184,900 Contributions - Employer - Implicit Subsidy 5,453 25,787 Administrative expense (310) (418)
Benefit payments (40,109) (64,900)
Implicit Rate Subsidy Fulfilled (5,453) (25,787)
Net change in plan fiduciary net position 182,431 179,468 Plan fiduciary net position - beginning 594,476 776,907 Plan fiduciary net position - ending (b) $776,907 $956,375 Net OPEB liability - ending (a)-(b) $1,524,756 $1,442,152 Plan fiduciary net position as a percentage of the total OPEB liability 33.75% 39.87% Covered-employee payroll $1,983,474 $2,038,020
Net OPEB liability as a percentage of covered-employee payroll 76.87% 70.76% * Fiscal year 2018 was the first year of implementation. 62 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
2019 2020 2021 2022 2023
$69,283 $209,347 $217,386 $75,700 $84,350
176,301 99,805 122,717 124,471 121,156
32,801 12,962 (552,481) (94,468) 255,364
(238,657) 353,019 (695,226) 100,150 (380,923)
(55,133) (85,929) (101,216) (106,885) (113,434)
(37,062) (34,610)
(52,467) 554,594 (1,008,820) 98,968 (33,487)
2,398,527 2,346,060 2,900,654 1,891,834 1,990,802
$2,346,060 $2,900,654 $1,891,834 $1,990,802 $1,957,315
$62,528 $39,531 $345,040 ($237,014) $101,774
155,133 85,929 221,216 306,885
37,062 34,610
(208) (547) (478) (437) (460)
(55,133) (34,610) (101,216) (106,885)
(37,062) (85,929)
162,320 38,984 464,562 (37,451) 101,314
956,375 1,118,695 1,157,679 1,622,241 1,584,790
$1,118,695 $1,157,679 $1,622,241 $1,584,790 $1,686,104
$1,227,365 $1,742,975 $269,593 $406,012 $271,211
47.68% 39.91% 85.75% 79.61% 86.14%
$2,518,122 $2,924,356 $2,595,720 $3,418,905 $2,899,863
48.74% 59.60% 10.39% 11.88% 9.35%
63 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
Fiscal Year Ended June 30, 2018 2019 2020
Actuarially determined contribution $65,854 $195,302 $126,146 Contributions in relation to the
actuarially determined contribution 165,562 194,535 94,752 Contribution deficiency (excess) ($99,708) $767 $31,394 Covered-employee payroll $1,983,474 $2,038,020 $2,518,122 Contributions as a percentage of
covered-employee payroll 8.35% 9.55% 3.76%
Measurement Date
Actuarial Cost Method Entry age normal, level percent of pay Amortization Period Average remaining service life of actives and retiree Actuarial Assumptions:
Discount Rate 6.00%
Inflation 2.50%
Assumed Payroll Growth 2.800%
Healthcare Trend Rates
Rate of Return on Assets 6.00%
Mortality Rate
Retirement rates
* Fiscal year 2018 was the first year of implementation.
SCHEDULE OF CONTRIBUTIONS
AGENT MULTIPLE EMPLOYER OPEB PLAN
Last 10 fiscal years*
Based on CalPERS Experience Study and Review
of Actuarial Assumptions published in November
2021 for Public Agency Miscellaneous and Police
members.
Based on assumptions for Public Agency
Miscellaneous and Police members published in
the 2021 CalPERS Experience Study.
7.00% (non-Medicare), trending down to 6.00%
(Medicare)
Methods and assumptions used to determine contribution rates:
June 30, 2023
64 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
2021 2022 2023 2024
$300,289 $100,296 $107,930 $129,401
242,513 306,885 113,434 292,306
$57,776 ($206,589) ($5,504) ($162,905)
$2,924,356 $3,418,905 $2,899,863 $3,579,588
8.29% 8.98% 3.91% 8.17%
65 TOWN OF FAIRFAX
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Property taxes $5,372,910 $6,385,800 $6,401,283 $15,483 Special assessments 378,000 413,200 570,599 157,399
Sales tax 1,967,690 1,967,690 2,063,653 95,963
Permits licenses and fees 100,000 645,500 780,621 135,121 Fines, forfeitures and penalties 80,000 80,000 34,967 (45,033) From other agencies 117,450 1,132,760 1,464,351 331,591 Franchise fees 468,477 468,477 490,133 21,656
Services charges 231,740 215,320 195,649 (19,671)
Use of money and property 121,300 135,500 253,672 118,172 Other revenue 14,200 114,420 136,437 22,017
Total Revenues 8,851,767 11,558,667 12,391,365 832,698
EXPENDITURES
Current:
General government 2,930,281 2,930,279 2,716,008 214,271 Public safety 7,245,031 7,245,031 7,172,009 73,022
Public works and facilities 1,369,135 1,302,514 1,192,940 109,574 Planning and building 1,308,061 1,308,063 1,432,174 (124,111) Parks and recreation 626,975 626,978 698,348 (71,370)
Capital outlay 150,000 288,500 389,877 (101,377)
Total Expenditures 13,629,483 13,701,365 13,601,356 100,009 REVENUES OVER (UNDER) EXPENDITURES (4,777,716) (2,142,698) (1,209,991) 932,707
OTHER FINANCING SOURCES (USES)
Transfers in 2,295,494 4,001,800 1,061,800 (2,940,000)
Transfers (out) (4,660,231) (3,887,063) (1,011,250) 2,875,813 Total Other Financing Sources (Uses) (2,364,737) 114,737 50,550 (64,187) Net change in fund balance ($7,142,453) ($2,027,961) (1,159,441) $868,520
FUND BALANCE
Beginning of year 6,447,967
End of year $5,288,526
66 TOWN OF FAIRFAX
FEDERAL STIMULUS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
From other agencies $175,000 $175,000
Total Revenues 175,000 175,000
EXPENDITURES
Capital outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES 175,000 175,000
OTHER FINANCING SOURCES (USES)
Transfers (out) ($150,000) (175,000) (25,000)
Total Other Financing Sources (Uses) (150,000) (175,000) (25,000) Net change in fund balance ($150,000) $175,000
FUND BALANCE
Beginning of year
End of year
67 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
1. BUDGETARY PRINCIPLES
The Town follows these procedures in establishing the budgetary data reflected in the financial statements:
• By June 30, the Town Manager submits to the Town Council a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.
Continuing appropriations are rebudgeted by the Town Council as part of the adoption of subsequent year’s budgets.
• Public hearings are conducted to obtain taxpayer comments. • The budget is legally enacted through passage of a resolution during a Town Council meeting July – September.
• Department Heads are responsible for ensuring department expenditures stay within the department's budgeted appropriation. Approval from the Town Manager is required to move funds between personnel and operating expense sections of each department budget. Any increase to the total departmental/fund appropriation will require prior approval by the Town Council. • Formal budgeting is employed as a management control device during the year for the general, certain special revenue and debt service funds.
• Budgets for the general, special revenue and debt service funds are adopted on a basis consistent with generally accepted accounting principles (GAAP), except Special Police Special Revenue Fund. • Budgets for capital projects funds are adopted on a project-life basis.
Budgeted amounts are as originally adopted or as amended by the Town Council. Budget amendments were not material in relation to the original appropriations.
Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are reported as reservations of fund balances. 68 Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2024
1. BUDGETARY PRINCIPLES (CONTINUED)
Expenditures over Appropriations
The following funds had an excess of expenditures over appropriations, but had adequate resources to cover the excess:
Expenditures in
Excess of Budget
General Fund:
Planning and building $124,111
Parks and Recreation 71,370
Capital Outlay 101,377
Federal Stimulus Special Revenue Fund
Transfers out 25,000
Special Police Special Revenue Fund
Transfers out 10,000
Open Space Special Revenue Fund
Parks and Recreation 2,823
Capital Outlay 12,000
Measure A/AA Transportation Special Revenue Fund
Transfers out 1,245
2012 Series Debt Service Fund
Debt service 2,170
69 This page intentionally left blank.
SUPPLEMENTARY INFORMATION
TOWN OF FAIRFAX
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2024
SPECIAL REVENUE FUNDS
Special Fairfax Gas Open
Police Festival Measure F Tax Space
ASSETS
Cash and investments $787 $19,646 $188,842 $54,490
Restricted cash and investments
Accounts receivable $15,777 7,690
Total Assets $787 $15,777 $27,336 $188,842 $54,490
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $295 $144
Due to other funds 37,561
Total Liabilities 37,856 144
Fund balances:
Restricted $787 $27,336 $188,842 54,346
Unassigned (22,079)
Total Fund Balances (Deficits) 787 (22,079) 27,336 188,842 54,346 Total Liabilities and Fund Balances $787 $15,777 $27,336 $188,842 $54,490 72 2020 Lease
Measure A/AA Measure A 2008 Series 2012 Series 2016 Series Financing Transportation Parks Debt Service Debt Service Debt Service Debt Service Total $60,022 $160,299 $484,086
$217,821 $176,699 $47,739 $4,409 446,668
2,500 1,630 27,597
$60,022 $162,799 $217,821 $176,699 $49,369 $4,409 $958,351 $439
37,561
38,000
$60,022 $162,799 $217,821 $176,699 $49,369 $4,409 942,430 (22,079)
60,022 162,799 217,821 176,699 49,369 4,409 920,351
$60,022 $162,799 $217,821 $176,699 $49,369 $4,409 $958,351
DEBT SERVICE FUNDS
SPECIAL
REVENUE FUNDS
73 TOWN OF FAIRFAX
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
Special Fairfax Open
Police Festival Measure F Gas Tax Space
REVENUES
Property taxes
From other agencies $186,630 $763,674 $403,481 $10,991
Service charges $85,754
Other revenue
Total Revenues 186,630 85,754 763,674 403,481 10,991
EXPENDITURES
Current:
Parks and recreation 74,444 6,823
Capital outlay 12,000
Debt service:
Principal
Interest
Total Expenditures 74,444 18,823
REVENUES OVER
(UNDER) EXPENDITURES 186,630 11,310 763,674 403,481 (7,832)
OTHER FINANCING SOURCES (USES)
Transfers in 4,000
Transfers (out) (190,000) (790,000) (405,000)
Total Other Financing Sources (Uses) (190,000) (790,000) (405,000) 4,000 NET CHANGE IN FUND BALANCES (3,370) 11,310 (26,326) (1,519) (3,832)
FUND BALANCE (DEFICIT)
Beginning of the year 4,157 (33,389) 53,662 190,361 58,178 End of the year $787 ($22,079) $27,336 $188,842 $54,346 74 SPECIAL
Total
2020 Lease Nonmajor
Measure A/AA Measure A 2008 Series 2012 Series 2016 Series Financing Governmental Transportation Parks Debt Service Debt Service Debt Service Debt Service Funds $184,068 $206,559 $105,132 $495,759
$445,625 $42,267 657 738 1,854,063
85,754
$666,860 666,860
445,625 42,267 184,725 207,297 105,132 666,860 3,102,436 81,267
12,000
198,000 220,000 113,000 375,000 906,000
23,976 29,100 17,233 291,860 362,169
221,976 249,100 130,233 666,860 1,361,436
445,625 42,267 (37,251) (41,803) (25,101) 1,741,000
4,000
(536,245) (6,300) (1,927,545)
(536,245) (6,300) (1,923,545)
(90,620) 35,967 (37,251) (41,803) (25,101) (182,545)
150,642 126,832 255,072 218,502 74,470 4,409 1,102,896
$60,022 $162,799 $217,821 $176,699 $49,369 $4,409 $920,351
REVENUE FUNDS DEBT SERVICE FUNDS
75 Special Police Measure F
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
From other agencies $170,000 $186,630 $16,630 $767,760 $763,674 ($4,086) Service charges
Total Revenues 170,000 186,630 16,630 767,760 763,674 (4,086)
EXPENDITURES
Current:
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
REVENUES OVER
(UNDER) EXPENDITURES 170,000 186,630 16,630 767,760 763,674 (4,086)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (180,000) (190,000) (10,000) (790,000) (790,000) Total other financing sources (uses) (180,000) (190,000) (10,000) (790,000) (790,000) NET CHANGE IN FUND BALANCES ($10,000) (3,370) $6,630 ($22,240) (26,326) ($4,086)
FUND BALANCE (DEFICIT)
Beginning of the year 4,157 53,662
End of the year $787 $27,336
TOWN OF FAIRFAX
BUDGETED NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
76 Gas Tax Open Space
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $410,351 $403,481 ($6,870) $2,000 $10,991 $8,991 $200,000 $445,625 $245,625 410,351 403,481 (6,870) 2,000 10,991 8,991 200,000 445,625 245,625 4,000 6,823 (2,823)
12,000 (12,000)
4,000 18,823 (14,823)
410,351 403,481 (6,870) (2,000) (7,832) (5,832) 200,000 445,625 245,625 4,000 4,000
(405,000) (405,000) (535,000) (536,245) (1,245)
(405,000) (405,000) 4,000 4,000 (535,000) (536,245) (1,245) $5,351 (1,519) ($6,870) $2,000 (3,832) ($5,832) ($335,000) (90,620) $244,380 190,361 58,178 150,642
$188,842 $54,346 $60,022
(Continued)
Transportation
Measure A/AA
77 TOWN OF FAIRFAX
BUDGETED NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes $142,137 $184,068 $41,931
From other agencies $70,873 $42,267 ($28,606) 745 657 (88) Service charges
Total Revenues 70,873 42,267 (28,606) 142,882 184,725 41,843
EXPENDITURES
Current:
Parks and Recreation
Capital outlay
Debt service:
Principal 191,300 198,000 (6,700)
Interest and fiscal charges 30,880 23,976 6,904
Total Expenditures 222,180 221,976 204
REVENUES OVER
(UNDER) EXPENDITURES 70,873 42,267 (28,606) (79,298) (37,251) 42,047
OTHER FINANCING SOURCES (USES)
Transfers (in)
Transfers (out) (150,231) (6,300) 143,931
Total other financing sources (uses) (150,231) (6,300) 143,931 NET CHANGE IN FUND BALANCES ($79,358) 35,967 $115,325 ($79,298) (37,251) $42,047
FUND BALANCE (DEFICIT)
Beginning of the year 126,832 255,072
End of the year $162,799 $217,821
Measure A Parks 2008 Series Debt Service
78 Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $237,925 $206,559 ($31,366) $118,062 $105,132 ($12,930) 1,247 738 (509) 619 (619)
$668,198 $666,860 ($1,338)
239,172 207,297 (31,875) 118,681 105,132 (13,549) 668,198 666,860 (1,338) 214,400 220,000 (5,600) 113,000 113,000 668,198 375,000 293,198 32,530 29,100 3,430 17,693 17,233 460 291,860 (291,860) 246,930 249,100 (2,170) 130,693 130,233 460 668,198 666,860 1,338 (7,758) (41,803) (34,045) (12,012) (25,101) (13,089)
($7,758) (41,803) ($34,045) ($12,012) (25,101) ($13,089) 218,502 74,470 4,409
$176,699 $49,369 $4,409
2012 Series Debt Service 2016 Series Debt Service 2020 Lease Financing Debt Service 79 This page intentionally left blank.