Charter City
Consideration
Fairfax Town Council Meeting – September 3, 2025
Purpose of Discussion
Explore the potential transition to a Charter City
Provide direction to staff on whether to proceed
with further analysis and outreach
9/3/2025 Charter City Discussion 2
What is a
Charter City?
Operates under a city-specific
charter (local constitution)
Greater control over municipal
affairs (e.g., elections, taxation,
contracting)
Still subject to state/federal laws
on matters of statewide concern
9/3/2025 Charter City Discussion 3
Fairfax
Charter
City
Goals
4 As Expressed at the 2025
Annual Goal Setting:
• Option to directly elect a mayor
• Flexibility with housing
regulations
• Potential for enhanced revenue
(e.g., local taxes)
9/3/2025 Charter City Discussion
Key
Benefits of
Becoming
a Charter
City
5 Local control over municipal
affairs
Ability to establish custom
election rules
Procurement w/o prevailing
wage, loss of State funds
Potential to enact local taxes
9/3/2025 Charter City Discussion
Limitations
on Housing
Autonomy
6 State housing laws (e.g., SB
1333, SB 1037) apply to
charter cities
Court cases (e.g., Anderson
v. San Jose) reinforce state
authority
Charter city status does not
exempt from RHNA or
housing element mandates
9/3/2025 Charter City Discussion
Legal &
Financial
Considerations
7 Legal ambiguity over “municipal
affairs” vs. “statewide concern”
Estimated costs: $50,000–
$100,000
Voter approval required to
adopt a charter
Difficult to amend once
adopted
9/3/2025 Charter City Discussion
Transition
Process
• Council initiates or community
petitions charter process
• Public engagement and hearings
• Charter drafting and legal review
• Ballot measure for voter approval
• Implementation of new charter
provisions
• Estimated Duration: ~18 months
9/3/2025 Charter City Discussion 8
Community
Engagement
Needs
9 Community
meetings/workshops
Informational materials
(newsletters, website,
social media)
Engagement with
stakeholders and
neighborhood groups
9/3/2025 Charter City Discussion
Recent Charter Attempts
Belvedere
• Spent roughly
$30,000 – the charter
was very narrow (only
to levy the real
property transfer tax).
• Voters did not
approve in 2023.
St. Helena
• Spent roughly
$80,000 – the charter
was very narrow (only
to levy the real
property transfer tax).
• Voters did not
approve in 2024.
10 Benicia
• Spent roughly
$50,000 – the charter
was very narrow (only
to levy the real
property transfer tax).
• Voters did not
approve in 2024.
9/3/2025 Charter City Discussion
Fiscal Impact • Cost of drafting and elections:
~$50K–$100K
• Potential revenue from Real
Property Transfer Tax and
others:~$1million annually
9/3/2025 Charter City Discussion 11
Revenue Potential of Charter City Real Property
Tax – A Bay Area Example
• Average home sales price in Fairfax is $1,200,000.
• Fairfax currently receives $0.55 per $1000 of valuation (portion of the documentary transfer tax collected by the County of Marin) • El Cerrito approved Charter City and Real Property Transfer Tax of $12 for each $1000
• Under Fairfax’s current taxation, Fairfax receives $600 for a home sold for the average price.
• If Fairfax voters approved the same rate as El Cerrito, Fairfax would receive $14,000 on average, from every home bought and sold in Fairfax. 9/3/2025 Charter City Discussion 12
13 Revenue Potential of Charter City Real Property Tax (Cont.) 9/3/2025 Charter City Discussion
Property Transfer Tax Revenue Breakdown
Fiscal Year Real Estate Sales Fairfax (Current)
$.275/$500
Fairfax (Potential)
$12.00/$1,000
20-21 $148,058,182 $81,432 $1,776,698
21-22 $172,907,273 $95,099 $2,074,887
22-23 $136,703,636 $75,187 $1,640,444
23-24 $76,516,364 $42,084 $918,196
24-25 $89,592,727 $49,276 $1,075,113
26-26 $90,909,091 $50,000 $1,090,909
Recommendation
• Discuss the information presented
• Provide direction on whether to
move forward with further analysis
and community outreach
9/3/2025 Charter City Discussion 14