FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
MEETING DATE March 4, 2025
PREPARED FOR Mayor and Town Council
PREPARED BY Heather Abrams, Town Manager and Michael Vivrette, Finance Director SUBJECT Receive Fiscal Year 2024-25 Audit Report
RECOMMENDATION
Receive and file the Independent Auditor’s Report and Basic Financial Statements for Fiscal Year 2024-
25. EXECUTIVE SUMMARY
Maze & Associates has completed the Town’s independent financial audit for FY 2024-25 and issued an unmodified (“clean”) audit opinion, the highest level of assurance an auditor can provide.
The audit reflects strong financial performance during the fiscal year:
• Assets increased and liabilities decreased.
• Net position increased significantly from $1.33 million to $4.76 million. • Revenues increased by 1.5%.
• Expenses decreased by 14.6%.
These results demonstrate improved financial stability and continued prudent fiscal management.
BACKGROUND
Each year, the Town engages an independent certified public accounting firm to audit its financial statements in accordance with Government Auditing Standards. The audit includes a review of internal controls, financial reporting practices, and compliance with applicable laws and accounting standards.
Maze & Associates, a firm that provides audit services to many jurisdictions in Marin County and throughout the Bay Area, conducted the audit for the fiscal year ending June 30, 2025.
The auditor’s role is to provide an independent opinion as to whether the Town’s financial statements are presented fairly, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP).
An unmodified or “clean” opinion means the financial statements are free from material misstatement and comply with required accounting standards.
ANALYSIS/DISCUSSION
Audit Opinion
Maze & Associates issued an unmodified (clean) opinion on the Town’s FY 2024-25 financial statements. There were no material weaknesses or significant deficiencies reported. This represents the highest level of assurance an independent auditor can provide.
Financial Highlights
• Net Position Increased: The Town’s net position increased from $1.33 million to $4.76 million, reflecting improved overall financial health.
• Assets Increased: Total assets grew during the fiscal year. • Liabilities Decreased: Total liabilities declined, strengthening the Town’s balance sheet. • Revenue Growth: Overall revenues increased by 1.5%.
• Expense Reduction: Expenses decreased by 14.6%, contributing to the increase in net position.
The combination of modest revenue growth and significant expense reduction resulted in a substantial improvement in the Town’s financial position.
Long-Term Liabilities: Pensions and OPEB
The audit also reflects changes in long-term obligations, including:
• Pension liabilities (through CalPERS, the California Public Employees’ Retirement System) • Other Post-Employment Benefits (OPEB), which primarily include retiree health benefits These liabilities are calculated using actuarial valuations and are influenced by investment performance, interest rate assumptions, and demographic factors. While these figures may fluctuate annually, they do not represent immediate cash expenditures.
The Town has taken several steps in recent years to manage long-term obligations, including:
• Modifying pension benefit structures for new employees • Reducing OPEB benefits for employees hired after July 1, 2013 • Establishing investment accounts through CERBT (California Employers’ Retiree Benefit Trust) and PARS (Public Agency Retirement Services) to prefund future obligations Staff concludes that these actions position the Town to better manage long-term liabilities while maintaining service levels.
Reserves and Financial Stability
The Town continues to maintain prudent reserve levels consistent with adopted financial policies.
Maintaining adequate reserves helps:
• Protect against economic downturns
• Address unforeseen emergencies
• Support long-term infrastructure planning
The FY 2024-25 results reflect continued adherence to these financial policies.
FISCAL IMPACT
There is no fiscal impact associated with receiving and filing the audit report.
The audit cost is included in the adopted budget within the General Fund professional services account.
ATTACHMENT
Independent Auditor’s Report and Basic Financial Statements for Fiscal Year 2024-25 Town of
Fairfax
Fairfax, California
Basic Financial Statements and
Independent Auditor’s Report
For the Year Ended June 30, 2025
Prepared by: Finance Department
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Town of Fairfax
Basic Financial Statements
For the Year Ended June 30, 2025
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 ............................................................................................................................ 14 Statement of Activities ................................................................................................................................ 15 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................................ 16 Reconciliation of the Governmental Funds – Balance Sheets with the Statement of Net Position ................................................................................................. 18 Statements of Revenues, Expenditures and Changes in Fund Balance ................................................ 20 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities ..................................................................................................... 22 Notes to Basic Financial Statements .................................................................................................................. 23 Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability (Asset) – A Cost-Sharing Employer Defined Pension Plan ................................................................................. 56 Schedule of Contributions – A Cost-Sharing Employer Defined Pension Plan ................................................ 58 Schedule of Changes in the Net OPEB Liability (Asset) and Related RatiosOther Post-Employment Benefits (OPEB) – Agent Multiple Employer Plan ...................................... 60 Schedule of Contributions – Agent Multiple Employer OPEB Plan ................................................................. 62 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Major Funds:
General Fund ......................................................................................................................................... 64 Federal Stimulus Special Revenue Fund .............................................................................................. 65 Budgetary Principles .......................................................................................................................................... 66 3 of 82
Town of Fairfax
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheets ........................................................................................................................ 70 Combining Statements of Revenues, Expenditures and Changes in Fund Balances................................. 72 Combining Schedules of Revenues, Expenditures and Changes In Fund Balances – Budget and Actual .................................................................................................. 74 4 of 82
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, 2025, 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, 2025, 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.
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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.
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.
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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
February 20, 2026
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Town of Fairfax
Management’s Discussion and Analysis
June 30, 2025
This discussion and analysis of the Town’s financial activities and performance provides an overview for the fiscal year ended June 30, 2025. 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 $20,591,303; deferred outflows of $2,266,409; liabilities of $15,311,630; deferred inflows of $2,785,700 and net position of $4,760,382 at June 30, 2025. This compares with assets of $18,385,334, liabilities of $15,762,359 and net position of $1,329,398 at June 30, 2024.
• 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 $3,430,984 for the fiscal year ended June 30, 2025 compared to an increase in net assets of $1,061,824 for the prior fiscal year. Revenues for fiscal 2025 increased by $234,426 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 $2,134,734 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 $15,311,630 as of June 30, 2025, 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.
FUND HIGHLIGHTS
At the close of fiscal year 2025, the Town’s governmental funds reported a combined ending fund balance of $3,550,745, a decrease of $1,580,395 from the June 30, 2024, ending fund balance of $5,131,140. The detailed components of Revenues and Expenditures can be found in the accompanying Statement of Revenues, Expenditures and Changes in Fund Balances. 9 of 82 5
TOWN’S HIGHLIGHTS
During 2024-2025, the Town accomplished the following key projects and tasks:
• Funded a new Police Department position through increased Utility Users Tax (UUT) revenue • Patrolled the Town’s 100-acre open space known as the Wall Property with limited resources • Secured grant funding for Department of Public Works and Recreation programs • Filled critical vacancies in the Department of Public Works, Police Department, Clerk’s Office, and Climate Action program
• Planned for a $1.6 million Fire Station upgrade
• Initiated major policy initiatives, including the launching of the Bicycle and Pedestrian Advisory Committee which will help update the Bicycle and Pedestrian Plan, considering Dark Sky policies, updating ADU policies to coordinate with State law • Transitioned the Town to a secure .gov domain
• Provided a rebate program to incent residents to join the MCE Deep Green Energy Program • Navigated a special recall election and managed nine legal cases
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. 10 of 82 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 business-type 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 government-wide 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 longterm 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. 11 of 82 7
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)
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. 12 of 82 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 is summarized below and an analysis follows:
Net position invested in capital assets (e.g. land, buildings, equipment, and infrastructure) of $12,193,687 at the end of fiscal year 2025 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 $1,217,441 at the end of fiscal 2025 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
2024 2025 Change
Cash and investments $ 6,656,511 $ 5,856,497 12.0%
Capital assets, net 10,851,389 13,574,187 -25.1%
Other assets 877,434 1,160,619 -32.3%
Total assets 18,385,334 20,591,303 -12.0%
Deferred outflow of resources 3,128,349 2,266,409 27.6% Current liabilities 3,589,627 4,777,426 -33.1%
Non-current liabilities 12,172,732 10,534,204 13.5%
Total liabilities 15,762,359 15,311,630 2.9%
Deferred inflow of resources 4,421,926 2,785,700 37.0%
Invested in capital assets, net 8,906,889 12,193,687 -36.9% Restricted 1,122,971 1,217,441 -8.4%
Unrestricted (8,700,462) (8,650,746) 0.6%
Net position $ 1,329,398 $ 4,760,382 -258.1%
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Changes in Net Position
Changes in net position for the Town are summarized below and an analysis follows:
Governmental Activities Percentage
2024 2025 Change
Revenues:
Program revenues:
Charges for services $ 1,711,192 1,652,599 $ 3.5%
Operating grants & contributions 797,504 801,657 0.5%
General revenues:
Taxes 12,461,377 12,261,930 1.6%
Use of Money & Property 227,603 177,523 -22.0%
Miscellaneous 774,608 796,921 2.9%
Transfers - -
Total revenues 15,948,670 15,714,244 1.5%
Expenses:
General government 1,391,447 3,410,808 -59.2%
Public safety 7,317,242 7,246,604 1.0%
Public works 1,424,516 1,406,756 1.3%
Planning & Building 1,232,113 1,450,927 -15.1%
Parks and recreation 786,217 834,982 6.2%
Debt Service 351,108 317,386 -9.6%
Total expenses 12,517,686 14,652,420 -14.6%
Change in net assets 3,430,984 1,061,824 223.1%
Net assets - beginning of year 267,574 1,329,398 396.8% Net assets - end of year $ 4,760,382 1,329,398 $ 258.1% Net position increased $3,430,984 during the fiscal year ended June 30, 2025. Total revenues for fiscal year 2025 were $15,948,670 as compared to $15,714,244 for fiscal year 2024.
The $234,426 (1.5%) increase in revenues the fiscal year ended June 30, 2025 is attributed to a
3.5% increase in service charges, and a 22% decrease in investment earnings; increased miscellaneous revenues and fines and forfeitures. Revenues from other agencies decreased $202,304 (-5.7%).
Total expenses for the year ended June 30, 2025 were $12,517,686 compared with $14,652,420 for the same period in 2024. The decrease of $2,134,734 in expenses primarily from the $2,019,361 decrease in general government from decreased pension & OPEB expense. Department expenses decreased for general government, planning& building, and debt service. Public safety, public works and Parks & Recreation expenditures increased. The interest on long term debt decreased by $33,722 (-9.6%).
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ANALYSIS OF MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund is the chief operating fund of the Town of Fairfax. At June 30, 2025, the unassigned fund balance of the General Fund was $3,515,562.
General Fund revenue during the FY 2024-25 year totaled $12,458,330 which was more than the final budgeted amount by $318,878 or 2.6%. 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 2024-25 totaled $14,803,608 and were higher than the final budgeted amount by $261,270 or 1.8%. This is primarily due to increased litigation and special legal costs during the year of $592,000.
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 2024-25 year which was the budgeted amount.
All of these receipts for this fund 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 $69,566.
Grant Capital Projects Fund revenue during the FY 2024-25 year totaled $395,887 which was under the final budgeted amount of $1,511,590 by $1,115,703. 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 2024-25 totaled $1,060,241, and were lower than the final budgeted amount by $1,179,008. 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 turnover of key staff.
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 ($877,542), down $23,520 from the prior year.
Storm Capital Projects Fund revenue during the FY 2024-25 year totaled $35,733. Expenditures for the same period totaled $12,213. Expenses not reimbursed will be covered by transfers from the General Fund.
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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 ($284,068) compared with the prior year deficit of ($565,595).
The Town Capital Projects Fund revenue during the FY 2024-25 year totaled $106,971 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.
Town Capital Projects Fund expenditures for FY 2024-25 totaled $125,444 compared to the budget of $795,000. The difference is due to extending the timing of projects. Expenses not reimbursed will be covered by the General Fund.
ECONOMIC OUTLOOK AND NEXT YEAR’S BUDGET
Fairfax continued to experience the strong economic growth of the Bay Area in 2024-2025 despite economic instability nationally. Strong property values and real estate sales continued despite economic uncertainty. Cooling of property taxes is anticipated in 2025-2026 due to possible recession and local factors. Sales Tax growth is expected to slow, as with add-on district sales tax revenues from internet sales. The 2025-2026 sales tax growth is projected to increase slightly by 1.6%, 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 may 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.
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
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Governmental-Type
Activities
ASSETS
Cash and investments (Note 2) $5,313,652
Restricted cash and investments (Note 2) 542,845
Accounts receivable 748,349
Loans receivable (Note 1Q) 189,000
Taxes receivable 79,119
Interest receivable 57,610
Capital assets:
Land and construction in progress (Note 4) 7,277,135
Depreciable capital assets, net of accumulated depreciation (Note 4) 6,297,052 Net OPEB asset (Note 8) 86,541
Total Assets 20,591,303
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 6) 1,669,570
Related to OPEB (Note 8) 596,839
Total Deferred Outflows of Resources 2,266,409
LIABILITIES
Accounts payable 775,960
Accrued payroll 258,514
Deposits payable 56,769
Interest payable 125,838
Unearned revenue 2,099,587
Compensated absences payable (Note 1G):
Due within one year 178,054
Due in more than one year 338,519
Claims payable (Note 9):
Due within one year 213,704
Long-term debt (Note 5):
Due within one year 1,069,000
Due in more than one year 8,161,500
Net pension liability (Note 6)
Due in more than one year 2,034,185
Total Liabilities 15,311,630
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 6) 1,996,134
Related to OPEB (Note 8) 789,566
Total Deferred Inflows of Resources 2,785,700
NET POSITION (Note 1K):
Net investment in capital assets 12,193,687
Restricted for:
Pension 181,328
OPEB 86,541
Special projects 583,398
Debt service 366,174
Total Restricted Net Position 1,217,441
Unrestricted (8,650,746)
Total Net Position $4,760,382
TOWN OF FAIRFAX
STATEMENT OF NET POSITION
See accompanying notes to financial statements
JUNE 30, 2025
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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 $1,391,447 $575,412 $35,769 ($780,266) Public safety 7,317,242 237,618 201,218 (6,878,406)
Public works 1,424,516 1,549 151,647 $407,703 (863,617) Planning and building 1,232,113 722,513 (509,600)
Parks and recreation 834,982 174,100 5,320 (655,562)
Interest and fiscal charges 317,386 (317,386)
Total Governmental Activities $12,517,686 $1,711,192 $388,634 $413,023 (10,004,837) General revenues:
Property taxes 8,393,809
Utility user tax 532,975
Sales taxes 2,008,501
Other taxes 1,526,092
Investment earnings 177,523
Miscellaneous 796,921
Total General Revenues 13,435,821
Change in Net Position 3,430,984
Net Position-Beginning 1,329,398
Net Position-Ending $4,760,382
TOWN OF FAIRFAX
FOR THE YEAR ENDED JUNE 30, 2025
STATEMENT OF ACTIVITIES
See accompanying notes to financial statements
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Federal
Stimulus Grants Storm
General Special Revenue Capital Projects Capital Projects Fund Fund Fund Fund
ASSETS
Cash and investments (Note 2) $2,756,555 $1,591,049 $609,309 Restricted cash and investments (Note 2) 181,328
Receivables (net of allowances):
Accounts 510,391
Loans (Note 1Q) 189,000
Taxes 79,119
Interest 57,610
Due from other funds (Note 3B) 986,274 181,872
Total Assets $4,760,277 $1,591,049 $791,181
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $559,104 $213,077 $614
Accrued payroll 258,514
Deposits payable 56,769
Unearned revenue $1,591,049 508,538
Due to other funds (Note 3B) 876,928
Total Liabilities 874,387 1,591,049 721,615 877,542
Deferred Inflows of Resources
Unavailable revenue - loans receivable (Note 1Q) 189,000 Total Deferred Inflows of Resources 189,000
Fund Balances (Note 1L):
Restricted 181,328
Committed 69,566
Unassigned 3,515,562 (877,542)
Total Fund Balances (Deficits) 3,696,890 69,566 (877,542) Total Liabilities and Fund Balances $4,760,277 $1,591,049 $791,181
TOWN OF FAIRFAX
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2025
See accompanying notes to financial statements
20 of 82 16
Town Non-Major
Capital Projects Governmental
Fund Funds Total
$356,739 $5,313,652
361,517 542,845
237,958 748,349
189,000
79,119
57,610
1,168,146
$956,214 $8,098,721
$3,165 $775,960
258,514
56,769
2,099,587
$284,068 7,150 1,168,146
284,068 10,315 4,358,976
189,000
189,000
949,572 1,130,900
69,566
(284,068) (3,673) 2,350,279
(284,068) 945,899 3,550,745
$956,214 $8,098,721
21 of 82 17
JUNE 30, 2025
Total fund balances reported on the governmental funds balance sheet $3,550,745 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. 13,574,187 Certain other long-term assets are not available to pay current period expenditures and, therefore, are reported as unavailable revenue in the governmental funds. 189,000
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 (125,838)
Compensated absences (516,573)
Claims payable (213,704)
Long-term debt (9,230,500)
Net pension liability and pension-related deferred outflows and inflows of resources (2,360,749) Net OPEB asset and OPEB-related deferred outflows and inflows of resources (106,186) NET POSITION OF GOVERNMENTAL ACTIVITIES $4,760,382
See accompanying notes to financial statements
TOWN OF FAIRFAX
Reconciliation of the
GOVERNMENTAL FUNDS - BALANCE SHEETS
with the
STATEMENT OF NET POSITION
22 of 82 18
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23 of 82
Federal
Stimulus Grants Storm
General Special Revenue Capital Projects Capital Projects Fund Fund Fund Fund
REVENUES
Property taxes $6,760,470
Special assessments 585,194
Sales taxes 2,008,501
Permits, licenses and fees 766,761
Fines, forfeitures and penalties 95,195
From other agencies 1,197,600 $395,887 $35,733
Franchise fees 489,533
Services charges 185,603
Use of money and property 202,531
Other revenue 166,942
Total Revenues 12,458,330 395,887 35,733
EXPENDITURES
Current:
General government 3,344,374
Public safety 8,019,214
Public works 1,265,356
Planning and building 1,208,181
Parks and recreation 738,651
Capital outlay 227,832 1,060,241 12,213
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 14,803,608 1,060,241 12,213
REVENUES OVER (UNDER) EXPENDITURES (2,345,278) (664,354) 23,520
OTHER FINANCING SOURCES (USES)
Transfers in (Note 3A) 1,122,642 645,000
Transfers (out) (Note 3A) (369,000)
Total Other Financing Sources (Uses) 753,642 645,000
Net change in fund balance (1,591,636) (19,354) 23,520
FUND BALANCE (DEFICIT)
Beginning of the year 5,288,526 88,920 (901,062)
End of the year $3,696,890 $69,566 ($877,542)
TOWN OF FAIRFAX
GOVERNMENTAL FUNDS
STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2025
See accompanying notes to financial statements
24 of 82 20
Town Non-Major
Capital Projects Governmental
Fund Funds Total
$530,782 $7,291,252
585,194
2,008,501
766,761
95,195
1,707,333 3,336,553
489,533
107,627 293,230
202,531
$1 712,977 879,920
1 3,058,719 15,948,670
3,344,374
8,019,214
1,265,356
1,208,181
97,758 836,409
125,444 101,780 1,527,510
999,000 999,000
329,021 329,021
125,444 1,527,559 17,529,065
(125,443) 1,531,160 (1,580,395)
106,970 4,000 1,878,612
(1,509,612) (1,878,612)
106,970 (1,505,612)
(18,473) 25,548 (1,580,395)
(265,595) 920,351 5,131,140
($284,068) $945,899 $3,550,745
25 of 82 21
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 ($1,580,395)
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 3,158,964 (Capitalized expenditures are the sum of total capital outlay of $1,527,510 and capitalized non-capital outlay expenditures of $1,631,454)
Depreciation expense is deducted from the fund balance (436,166)
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 999,000
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 18,363
Net OPEB asset and OPEB-related deferred outflows and inflows of resources 408,775 Claims payable (50,396)
Interest payable 11,635
Unavailable revenue (21,000)
Collective net pension liability and pension-related deferred outflows and inflows of resources 922,204 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $3,430,984 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, 2025
26 of 82 22
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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.
27 of 82 23
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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. 28 of 82 24
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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.
29 of 82 25
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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, 2025:
Governmental
Activities
Beginning Balance $534,936
Net changes (18,273)
Ending Balance $516,663
Current Portion $178,054
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 1 July 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.
30 of 82 26
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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.” 31 of 82 27
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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.
32 of 82 28
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. Fund Balances (Continued)
Detailed classifications of the Town’s Fund Balances as of June 30, 2025, 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 $583,398 $583,398
Debt service 366,174 366,174
PARS trust - retirement benefits $181,328 181,328
Total Restricted Fund Balances 181,328 949,572 1,130,900 Committed for:
Special projects $69,566 69,566
Total Committed Fund Balances 69,566 69,566
Unassigned:
General Fund 3,515,562 3,515,562
Other major funds ($877,542) ($284,068) (1,161,610)
Non-major funds (3,673) (3,673)
Total Unassigned Fund Balances 3,515,562 (877,542) (284,068) (3,673) 2,350,279 Total Fund Balances (Deficits) $3,696,890 $69,566 ($877,542) ($284,068) $945,899 $3,550,745 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, 2025: Storm Capital Projects Fund, Town Capital Projects Fund, and Fairfax Festival Special Revenue Fund in the amounts of ($877,542), ($284,068) and ($3,673), 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.
33 of 82 29
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Fair Value Measurements (Continued)
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.
N. New GASB Pronouncements
GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The Statement requires that liabilities for compensated absences be recognized for leave that has not been used but not yet paid in cash or settled through noncash means. The provision of this Statement were implemented during the fiscal year 2025. The implementation had no material effect on the financial statements.
GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosure.
The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external part or formal action of government’s highest level of decision-making authority. The provision of this Statement were implemented during the fiscal year 2025. The implementation had no material effect on the financial statements.
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.
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.
34 of 82 30
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Q. Loan Receivable
In 2019 the Town entered into a loan agreement to Victory Village which at the time was determined to not be considered as a loan receivable. During the fiscal year ended June 30, 2024, the Town recorded prior period adjustments to record this agreement as a loan, however, the loan does not stipulate when the payment is due. The terms of the loan agreement state that the repayments be made as residual receipts are collected.
The outstanding balance of this loan receivable and unavailable revenue as of June 30, 2025 is $189,000.
R. Subsequent Events
On October 15, 2025, the Town executed a loan agreement in the amount not to exceed $1,600,000 with the County of Marin for the Fire Station 21 remodel project. The Town owns and maintains the Fire Station located at 10 Park Road, Fairfax. The Station is used by the Ross Valley Fire Department and requires significant updates to meet modern safety and operation standards. The loan will be financed by the General fund utilizing a five-year loan for $1,600,000 with an interest rate approximately 4.731%. The project is estimated to start construction in June 2026 and is estimated to be completed in March 2027.
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, 2025:
Governmental
Activities
Cash and investments $5,313,652
Restricted cash and investments 542,845
Grand Total $5,856,497
35 of 82 31
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
2. CASH AND INVESTMENTS (Continued)
A. Summary of Cash and Investments (Continued)
Cash and investments were categorized as follows at June 30, 2025:
Credit Days to
Quality Ratings Fair Value Maturity
Town Treasury Deposits:
Deposits Not Rated $411,356 N/A
Petty cash Not Rated 300 N/A
Total Town Treasury Deposits 411,656
Town Treasury Investments:
Local Agency Investment Fund Not Rated 5,263,513 N/A
PARS Trust - Mutual Funds Not Rated 181,328 N/A
Total Treasury Investments 5,444,841
Total Cash and Investments $5,856,497
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
• Commercial paper, rated in the highest tier by a nationally recognized rating agency 36 of 82 32
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
2. CASH AND INVESTMENTS (Continued)
C. Investments (Continued)
• 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, 2025, the average life on investment funds invested by LAIF was 248 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, 2025:
Investment Type Exempt Total
California Local Agency Investment Fund $5,263,513 $5,263,513 PARS Trust - Mutual Funds 181,328 181,328
Total Investments $5,444,841 5,444,841
Cash in banks and on hand 411,656
Total Cash and investments $5,856,497
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.
37 of 82 33
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
3. INTERFUND TRANSACTIONS
A. Interfund Transfers
Transfers during the fiscal year ended June 30, 2025, were comprised of the following:
Fund Receiving Transfers Fund Making Transfers Amount
General Fund Non-Major Governmental Funds $1,122,642
Grants Capital Projects Fund General Fund 365,000
Non-Major Governmental Funds 280,000
Town Capital Projects Fund Non-Major Governmental Funds 106,970 Non-Major Governmental Funds General Fund 4,000
Total Interfund Transfers $1,878,612
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, 2025, interfund balances were as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Storm Capital Projects Fund $695,056
Town Capital Projects Fund 284,068
Non-Major Governmental Funds 7,150
Grants Capital Projects Fund Storm Capital Projects Fund 181,872 Total Due From Other Funds $1,168,146
38 of 82
34 Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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, 2024 Additions Retirements Transfers June 30, 2025 Capital assets not being depreciated:
Land $255,988 $2,306,074 $2,562,062
Construction in progress 5,083,699 649,046 ($1,017,672) 4,715,073 Total capital assets not being depreciated 5,339,687 2,955,120 (1,017,672) 7,277,135 Capital assets being depreciated:
Buildings 423,974 423,974
Other improvements 2,338,548 2,338,548
Vehicles 935,931 190,472 1,126,403
Machinery and equipment 595,094 13,372 608,466
Infrastructure 14,045,257 1,017,672 15,062,929
Total capital assets being depreciated 18,338,804 203,844 1,017,672 19,560,320 Less accumulated depreciation for:
Buildings (317,052) (3,071) (320,123)
Other improvements (1,683,165) (103,354) (1,786,519)
Vehicles (590,947) (70,471) (661,418)
Machinery and equipment (391,058) (12,839) (403,897)
Infrastructure (9,844,880) (246,431) (10,091,311)
Total accumulated depreciation (12,827,102) (436,166) (13,263,268) Net capital assets being depreciated 5,511,702 (232,322) 1,017,672 6,297,052 Governmental activity capital assets, net $10,851,389 $2,722,798 $13,574,187 In May 2025, the Town, Marin Open Space Trust, Town of San Anselmo, County of Marin and the State Coastal Conservancy all contributed to purchase real property known as Wall Property for the total value of $2.3 million. The Town of Fairfax would hold the title and would be responsible for maintain the land using funds provided by the State Coastal Conservancy in the grant award amount of $500,000.
39 of 82 35
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
4. CAPITAL ASSETS (Continued)
Depreciation expense for governmental activities depreciation expenses on capital assets for the year ended June 30, 2025, were as follows:
Depreciation
Expense
General Government $179,333
Public Safety 72,855
Public Works 183,978
Total Governmental Activities $436,166
5. LONG-TERM DEBT
The following is a summary of long-term debt transactions during the fiscal year ended June 30, 2025:
Original Amount Due in More
Issue Balance Balance Due within than One
Governmental Activity Debt: Amount June 30, 2024 Retirements June 30, 2025 One Year Year Authority Debt:
2008 General Obligation Revenue Bonds
1.50-4.70%, due 8/1/2025 $2,231,000 $442,000 ($215,000) $227,000 $227,000 Revenue Bonds, Series 2012
2.00-3.00%, due 8/1/2027 2,880,000 1,016,500 (230,000) 786,500 250,000 $536,500 Direct Borrowings:
2020 PERS Refinancing Lease Agreement
3.45%, due 8/1/2036 9,402,000 8,285,000 (435,000) 7,850,000 472,000 7,378,000 Town Debt:
General Obligation Refunding Bonds
Series 2016 2.10%, due 8/1/2027 1,239,000 486,000 (119,000) 367,000 120,000 247,000 Total Government Activity Debt - Net $10,229,500 ($999,000) $9,230,500 $1,069,000 $8,161,500 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.
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. 40 of 82 36
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
5. LONG-TERM DEBT (Continued)
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, 2025.
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.
41 of 82 37
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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, 2025. 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, 2025.
42 of 82 38
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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 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 649,000 187,145 836,145
2031-2035 3,774,000 562,575 4,336,575
2036-2037 1,282,000 42,727 1,324,727
$1,380,500 $45,974 $7,850,000 $1,740,112 $11,016,586
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. 43 of 82 39
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
6. EMPLOYEE RETIREMENT PLAN (Continued)
A. General Information about the Pension Plan (Continued) The Plan’s provisions and benefits in effect at June 30, 2025, 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% 8.25%
Required employer contribution rates 14.27% 12.67% 8.180% 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% 14.50%
Required employer contribution rates 27.84% 24.96% 14.72% Miscellaneous
Safety
Beginning in fiscal year 2016, 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 (UAL). The dollar amounts are billed on a monthly basis. The Town’s required contribution for the unfunded liability was $119,146 in fiscal year 2025.
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. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
44 of 82 40
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
6. EMPLOYEE RETIREMENT PLAN (Continued)
A. General Information about the Pension Plan (Continued) For the year ended June 30, 2025, the contributions to the Plan were as follows:
Miscellaneous Safety Total
Contributions - employer $331,155 $356,597 $687,752
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, 2025, 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 $858,845
Safety 1,175,340
Total Net Pension Liability $2,034,185
45 of 82 41
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The Town’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The Town’s proportion of the net pension liability 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 for the Plan as of June 30, 2023 and 2024 was as follows:
Miscellaneous
Proportion - June 30, 2023 0.01813%
Proportion - June 30, 2024 0.01776%
Change - Increase (Decrease) -0.00037%
Safety
Proportion - June 30, 2023 0.01775%
Proportion - June 30, 2024 0.01612%
Change - Increase (Decrease) -0.00163%
Total
Proportion - June 30, 2023 0.03588%
Proportion - June 30, 2024 0.03388%
Change - Increase (Decrease) -0.00200%
46 of 82 42
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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, 2025, the Town recognized pension expense of $(922,204). At June 30, 2025, 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 $331,155 Differences between actual and expected experience 74,255 Change in assumptions 22,074 ($2,897)
Differences between actual contributions and
proportionate share of contributions (632,480)
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 316,027 (211,603)
Net differences between projected and actual earnings
on plan investments 49,443
Total $792,954 ($846,980)
Safety:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $356,597 Differences between actual and expected experience 95,918 ($3,119) Change in assumptions 28,958
Differences between actual contributions and
proportionate share of contributions (1,072,060)
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 338,332 (73,975)
Net differences between projected and actual earnings
on plan investments 56,811
Total $876,616 ($1,149,154)
Combined Total $1,669,570 ($1,996,134)
47 of 82 43
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
6. EMPLOYEE RETIREMENT PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$687,752 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, 2026. 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
2026 ($375,729) ($485,615) ($861,344)
2027 27,542 (63,073) (35,531)
2028 (20,052) (61,009) (81,061)
2029 (16,942) (19,438) (36,380)
Total ($385,181) ($629,135) ($1,014,316)
Annual
Amortization
Year Ended
June 30
Actuarial Assumptions – For the measurement period ended June 30, 2024, the total pension liability was determined by rolling forward the June 30, 2023 total pension liability. The June 30, 2023 total pension liability was based on the following actuarial methods and assumptions for all rate plans:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Derived using CalPers Membership Data for all Funds (1) 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) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 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, 2023 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. 48 of 82 44
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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 for each plan.
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. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
The expected real rates of return by Asset Class are as follows:
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. 49 of 82 45
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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 (Asset) to Changes in the Discount Rate – The following presents the Town’s proportionate share of the net pension liability (Asset) 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 $3,321,647 $4,713,752 $8,035,399
Current Discount Rate 6.90% 6.90% 6.90%
Net Pension Liability $858,845 $1,175,340 $2,034,185
1% Increase 7.90% 7.90% 7.90%
Net Pension Liability (Asset) ($1,168,403) ($1,718,583) ($2,886,986) Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
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.
50 of 82 46
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
7. DEFINED CONTRIBUTION RETIREMENT PLANS (Continued)
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 $414,943 respectively. The total covered payroll of employees participating in the plan for the year ended June 30, 2025 was $3,911,489. The total payroll for the year was $3,911,489.
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 2023 and $151 from January to June 2025. 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, 2025, the Town’s contributions to the Plan were $0.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2024:
Active employees 35
Inactive employees or beneficiaries currently
receiving benefit payments 17
Inactive employees entitled to but not yet
receiving benefit payments 12
Total 64
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability
Actuarial Methods and Assumptions – The Town’s net OPEB liability was measured as of June 30, 2024 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) 6.40% investment return; (b)
2.80% projected annual salary increase; and (c) health care cost trend rate increases between 3.94% - 6.50% 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.
Changes in Assumptions – During the measurement year ended June 30, 2024, the discount rate changed from 6.00% at June 30, 2023 to 6.40% at June 30, 2024.
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% 6.80%
Fixed Income 23% 3.70%
Global Real Estate (REITs) 20% 6.00%
Treasury Inflation-Protected Securities (TIPS) 5% 2.80% Commodities 3% 3.40%
Total 100%
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability (Continued)
Discount Rate – The discount rate used to measure the total OPEB liability was 6.40%. 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.
C. Changes in Net OPEB Liability (Asset)
The changes in the net OPEB liability (asset) 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, 2023 (Measurement Date) $1,957,315 $1,686,104 $271,211 Changes Recognized for the Measurement Period:
Service Cost 81,207 81,207
Interest on the total OPEB liability 118,169 118,169
Changes of assumptions (82,287) (82,287)
Net investment income 185,272 (185,272)
Benefit payments, including refunds of employee
contributions (140,121) (140,121)
Administrative expenses (552) 552
Contributions - Employer 290,121 (290,121)
Net changes (23,032) 334,720 (357,752)
Balance at June 30, 2024 (Measurement Date) $1,934,283 $2,020,824 ($86,541) 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.
53 of 82 49
Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate and Healthcare Cost Trend Rates
The following presents the net OPEB liability (asset) of the Town, as well as what the Town’s net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.40%) or 1- percentage-point higher (7.40%) than the current discount rate:
Net OPEB Liability (Asset)
Discount Rate -1% Discount Rate Discount Rate +1%
5.40% 6.40% 7.40%
$130,426 ($86,541) ($269,521)
The following presents the net OPEB liability (asset) of the Town, as well as what the Town’s net OPEB liability (asset) 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 (Asset)
Healthcare Cost
1% Decrease Current Trend 1% Increase
($310,353) ($86,541) $187,039
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the Town recognized $(408.775) of OPEB expense. At June 30, 2025, 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 $172,579 ($235,303) Changes of assumptions 114,268 (554,263)
Net differences between projected and actual earnings on OPEB plan investments 17,091
Contributions Subsequent to the Measurement Date 292,901 Total $596,839 ($789,566)
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
8. OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued) $292,901 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
2026 ($187,206)
2027 (183,157)
2028 (101,049)
2029 (504)
2030 (13,712)
Total ($485,628)
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 $34,500,000. 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 $3,000,000.
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.
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.
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
9. RISK MANAGEMENT (Continued)
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
2025 2024
Balance at beginning of year $163,308 $144,110
Change in liability for prior fiscal year
claims and clams incurred but not reported 169,321 124,421 Claims paid (118,925) (105,223)
Balance at end of year $213,704 $163,308
Due in one year $213,704 $163,308
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.
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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.
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Town of Fairfax
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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
59 of 82
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY (ASSET)
A Cost Sharing-Employer Defined Pension Plan
Last 10 Years
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Plan's Proportion of the Net Pension Liability (Asset) 0.09126% 0.09001% 0.05890% Plan's Proportionate Share of the Net Pension Liability (Asset) $2,503,788 $3,126,781 $2,045,987 Plan's Covered Payroll $1,241,911 $1,287,995 $1,307,451 Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 201.61% 242.76% 156.49%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 76.61% 72.56% 84.04%
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Plan's Proportion of the Net Pension Liability (Asset) 0.10852% 0.01031% 0.00632% Plan's Proportionate Share of the Net Pension Liability (Asset) $4,471,432 $5,341,602 $3,272,224 Plan's Covered Payroll $1,014,302 $1,112,774 $1,102,979 Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 440.84% 480.03% 296.67%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 73.40% 72.69% 83.16%
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Plan's Proportion of the Net Pension Liability (Asset) 0.19978% 0.10032% 0.06521% Plan's Proportionate Share of the Net Pension Liability (Asset) $6,975,220 $8,468,383 $5,318,211 Plan's Covered Payroll $2,256,213 $2,400,769 $2,410,430 Plan's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll 309.16% 352.74% 220.63%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 74.65% 74.06% 83.51%
Miscellaneous
Safety
Combined Total
60 of 82 56
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
0.05022% 0.05510% 0.06003% -0.11510% 0.01137% 0.01813% 0.01776% $1,892,771 $2,206,385 $2,532,177 ($2,185,481) $531,839 $906,336 $858,845 $1,422,171 $1,731,683 $1,795,191 $1,713,955 $2,014,672 $2,165,697 $2,413,506 133.09% 127.41% 141.05% -127.51% 26.40% 41.85% 35.58%
85.78% 84.16% 77.71% 110.51% 127.90% 77.97% 79.91%
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
0.05147% 0.05555% 0.06113% -0.00096% 0.01173% 0.01775% 0.01612% $3,020,302 $3,467,642 $4,072,550 ($3,352,678) $805,906 $1,326,790 $1,175,340 $1,153,546 $1,169,226 $1,319,468 $1,071,305 $1,130,078 $1,156,817 $1,166,082 261.83% 296.58% 308.65% -312.95% 71.31% 114.69% 100.79%
85.20% 83.64% 73.12% 115.46% 132.41% 74.87% 76.66%
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
0.10170% 0.11065% 0.12116% -0.11605% 0.02309% 0.03588% 0.03388% $4,913,073 $5,674,027 $6,604,727 ($5,538,159) $1,337,745 $2,233,126 $2,034,185 $2,575,717 $2,900,909 $3,114,659 $2,785,260 $3,144,750 $3,322,514 $3,579,588 190.75% 195.59% 212.05% -198.84% 42.54% 67.21% 56.83%
85.43% 83.85% 75.10% 113.27% 130.42% 76.21% 78.08%
Miscellaneous
Safety
Combined Total
61 of 82 57
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
For the Fiscal Year Ended June 30, 2016 2017 2018
Actuarially determined contribution $286,615 $127,013 $183,010 Contributions in relation to the actuarially determined contributions (286,615) (1,692,298) (183,010) Contribution deficiency (excess) $0 ($1,565,285) $0
Covered payroll $1,287,995 $1,307,451 $1,422,171
Contributions as a percentage of covered payroll 22.25% 129.43% 12.87% For the Fiscal Year Ended June 30, 2016 2017 2018
Actuarially determined contribution $544,416 $174,929 $266,312 Contributions in relation to the actuarially determined contributions (544,416) (2,966,287) (266,312) Contribution deficiency (excess) $0 ($2,791,358) $0
Covered payroll $1,112,774 $1,102,979 $1,153,546
Contributions as a percentage of covered payroll 48.92% 268.93% 23.09% For the Fiscal Year Ended June 30, 2016 2017 2018
Actuarially determined contribution $831,031 $301,942 $449,322 Contributions in relation to the actuarially determined contributions (831,031) (4,658,585) (449,322) Contribution deficiency (excess) $0 ($4,356,643) $0
Covered payroll $2,400,769 $2,410,430 $2,575,717
Contributions as a percentage of covered payroll 34.62% 193.27% 17.44% Combined Total
SCHEDULE OF CONTRIBUTIONS
A Cost Sharing-Employer Defined Pension Plan
Last 10 Years
Miscellaneous
Safety
62 of 82 58
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
2019 2020 2021 2022 2023 2024 2025
$287,457 $281,856 $2,811,976 $187,860 $227,840 $255,872 $331,155 (287,457) (281,856) (2,811,976) (187,860) (227,840) (255,872) (331,155) $0 $0 $0 $0 $0 $0 $0
$1,731,683 $1,795,191 $1,713,955 $2,014,672 $2,165,697 $2,413,506 $2,643,525
16.60% 15.70% 164.06% 9.32% 10.52% 10.60% 12.53%
2019 2020 2021 2022 2023 2024 2025
$283,781 $414,027 $4,423,693 $220,732 $248,567 $254,720 $356,597 (283,781) (414,027) (4,423,693) (220,732) (248,567) (254,720) (356,597) $0 $0 $0 $0 $0 $0 $0
$1,169,226 $1,319,468 $1,071,305 $1,130,078 $1,156,817 $1,166,082 $1,267,964
24.27% 31.38% 412.93% 19.53% 21.49% 21.84% 28.12%
2019 2020 2021 2022 2023 2024 2025
$571,238 $695,883 $7,235,669 $408,592 $476,407 $510,592 $687,752 (571,238) (695,883) (7,235,669) (408,592) (476,407) (510,592) (687,752) $0 $0 $0 $0 $0 $0 $0
$2,900,909 $3,114,659 $2,785,260 $3,144,750 $3,322,514 $3,579,588 $3,911,489
19.69% 22.34% 259.78% 12.99% 14.34% 14.26% 17.58%
Miscellaneous
Safety
Combined Total
63 of 82 59
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
Measurement Date 2017 2018 2019
Total OPEB Liability
Service Cost $70,686 $66,761 $69,283
Interest 136,346 165,840 176,301
Changes of assumptions (58,106) (45,050) 32,801
Differences between expected and actual experience 293,112 (238,657) Benefit payments (40,109) (64,900) (55,133)
Implicit Rate Subsidy Fulfilled (5,453) (25,787) (37,062) Net change in total OPEB liability 396,476 96,864 (52,467) Total OPEB liability - beginning 1,905,187 2,301,663 2,398,527 Total OPEB liability - ending (a) $2,301,663 $2,398,527 $2,346,060 OPEB fiduciary net position
Net investment income $62,741 $59,886 $62,528
Contributions - Employer - Town's Contribution 160,109 184,900 155,133 Contributions - Employer - Implicit Subsidy 5,453 25,787 37,062 Administrative expense (310) (418) (208)
Benefit payments (40,109) (64,900) (55,133)
Implicit Rate Subsidy Fulfilled (5,453) (25,787) (37,062) Net change in plan fiduciary net position 182,431 179,468 162,320 Plan fiduciary net position - beginning 594,476 776,907 956,375 Plan fiduciary net position - ending (b) $776,907 $956,375 $1,118,695 Net OPEB liability (asset) - ending (a)-(b) $1,524,756 $1,442,152 $1,227,365 Plan fiduciary net position as a percentage of the total OPEB liability 33.75% 39.87% 47.68% Covered-employee payroll $1,983,474 $2,038,020 $2,518,122 Net OPEB liability (asset) as a percentage of covered-employee payroll 76.87% 70.76% 48.74% * Fiscal year 2018 was the first year of implementation.
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY (ASSET) AND RELATED RATIOS Schedule of Changes in Net OPEB Liability (Asset)
Last 10 fiscal years*
Other Post-Employment Benefits (OPEB) - Agent Multiple Employer Plan
64 of 82 60
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
2020 2021 2022 2023 2024
$209,347 $217,386 $75,700 $84,350 $81,207
99,805 122,717 124,471 121,156 118,169
12,962 (552,481) (94,468) 255,364 (82,287)
353,019 (695,226) 100,150 (380,923)
(85,929) (101,216) (106,885) (113,434) (140,121)
(34,610)
554,594 (1,008,820) 98,968 (33,487) (23,032)
2,346,060 2,900,654 1,891,834 1,990,802 1,957,315
$2,900,654 $1,891,834 $1,990,802 $1,957,315 $1,934,283
$39,531 $345,040 ($237,014) $101,774 $185,272
85,929 221,216 306,885 290,121
34,610
(547) (478) (437) (460) (552)
(34,610) (101,216) (106,885) (140,121)
(85,929)
38,984 464,562 (37,451) 101,314 334,720
1,118,695 1,157,679 1,622,241 1,584,790 1,686,104
$1,157,679 $1,622,241 $1,584,790 $1,686,104 $2,020,824
$1,742,975 $269,593 $406,012 $271,211 ($86,541)
39.91% 85.75% 79.61% 86.14% 104.47%
$2,924,356 $2,595,720 $3,418,905 $2,899,863 $3,748,438
59.60% 10.39% 11.88% 9.35% -2.31%
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Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
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
Actuarial Assumptions:
Discount Rate 6.40%
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.
6.50% (non-Medicare), trending down to 3.94%
(Medicare)
Methods and assumptions used to determine contribution rates:
June 30, 2024
Average remaining service life of actives and
retirees
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Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
20212022202320242025
$300,289 $100,296 $107,930 $129,401 $123,059
242,513 306,885 113,434 292,306 290,121
$57,776 ($206,589) ($5,504) ($162,905) ($167,062)
$2,924,356 $3,418,905 $2,899,863 $3,579,588 $3,748,438
8.29% 8.98% 3.91% 8.17% 7.74%
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TOWN OF FAIRFAX
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Property taxes $5,435,910 $6,492,818 $6,760,470 $267,652 Special assessments 420,000 453,200 585,194 131,994
Sales tax 2,035,000 2,035,000 2,008,501 (26,499)
Permits licenses and fees 120,000 780,900 766,761 (14,139) Fines, forfeitures and penalties 65,000 65,000 95,195 30,195 From other agencies 249,600 1,264,734 1,197,600 (67,134) Franchise fees 471,000 471,000 489,533 18,533
Services charges 253,500 227,500 185,603 (41,897)
Use of money and property 201,300 223,300 202,531 (20,769) Other revenue 22,000 126,000 166,942 40,942
Total Revenues 9,273,310 12,139,452 12,458,330 318,878
EXPENDITURES
Current:
General government 2,793,361 2,793,362 3,344,374 (551,012) Public safety 7,991,385 7,991,387 8,019,214 (27,827)
Public works and facilities 1,333,154 1,343,153 1,265,356 77,797 Planning and building 1,374,502 1,374,502 1,208,181 166,321 Parks and recreation 646,434 646,434 738,651 (92,217)
Capital outlay 169,000 393,500 227,832 165,668
Total Expenditures 14,307,836 14,542,338 14,803,608 (261,270) REVENUES OVER (UNDER) EXPENDITURES (5,034,526) (2,402,886) (2,345,278) 57,608
OTHER FINANCING SOURCES (USES)
Transfers in 1,418,970 4,146,800 1,122,642 (3,024,158)
Transfers (out) (4,746,770) (3,344,000) (369,000) 2,975,000 Total Other Financing Sources (Uses) (3,327,800) 802,800 753,642 (49,158) Net change in fund balance ($8,362,326) ($1,600,086) (1,591,636) $8,450
FUND BALANCE
Beginning of year 5,288,526
End of year $3,696,890
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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, 2025
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES
From other agencies
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers (out) ($90,000) $90,000
Total Other Financing Sources (Uses) (90,000) 90,000
Net change in fund balance ($90,000)
FUND BALANCE
Beginning of year
End of year
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Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
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. 70 of 82 66
Town of Fairfax
Required Supplementary Information
For the Year Ended June 30, 2025
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:
General government $551,012
Public safety 27,827
Building and planning 92,217
Open Space Special Revenue Fund
Parks and Recreation 9,537
Capital Outlay 1,780
2008 Series Debt Service Fund
Debt service 4,200
2012 Series Debt Service Fund
Debt service 5,100
In 2025, there was a significant increase in expenditures related to Attorney expenses and litigation. Total costs of attorney expenses were $592k in 2025 causing expenditures to go over the approved budgeted amount.
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SUPPLEMENTARY INFORMATION
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TOWN OF FAIRFAX
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2025
SPECIAL REVENUE FUNDS
Special Fairfax Gas Open
Police Festival Measure F Tax Space
ASSETS
Cash and investments $1,626 $14,086 $93,741 $48,349
Restricted cash and investments
Accounts receivable 5,016 8,457
Total Assets $6,642 $22,543 $93,741 $48,349
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $3,165
Due to other funds 7,150
Total Liabilities 10,315
Fund balances:
Restricted $22,543 $93,741 $48,349
Unassigned (3,673)
Total Fund Balances (Deficits) (3,673) 22,543 93,741 48,349 Total Liabilities and Fund Balances $6,642 $22,543 $93,741 $48,349 74 of 82 70
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 $62,522 $136,415 $356,739
$187,011 $142,870 $27,227 $4,409 361,517
181,464 38,364 4,657 237,958
$243,986 $174,779 $187,011 $142,870 $31,884 $4,409 $956,214 $3,165
7,150
10,315
$243,986 $174,779 $187,011 $142,870 $31,884 $4,409 949,572 (3,673)
243,986 174,779 187,011 142,870 31,884 4,409 945,899
$243,986 $174,779 $187,011 $142,870 $31,884 $4,409 $956,214
DEBT SERVICE FUNDS
SPECIAL
REVENUE FUNDS
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TOWN OF FAIRFAX
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2025
SPECIAL REVENUE FUNDS
Special Fairfax Open
Police Festival Measure F Gas Tax Space
REVENUES
Property taxes
From other agencies $195,055 $785,207 $423,669 $5,320
Service charges $107,627
Other revenue
Total Revenues 195,055 107,627 785,207 423,669 5,320
EXPENDITURES
Current:
Parks and recreation 84,221 13,537
Capital outlay 1,780
Debt service:
Principal
Interest
Total Expenditures 84,221 15,317
REVENUES OVER
(UNDER) EXPENDITURES 195,055 23,406 785,207 423,669 (9,997)
OTHER FINANCING SOURCES (USES)
Transfers in 4,000
Transfers (out) (195,842) (5,000) (790,000) (518,770)
Total Other Financing Sources (Uses) (195,842) (5,000) (790,000) (518,770) 4,000 NET CHANGE IN FUND BALANCES (787) 18,406 (4,793) (95,101) (5,997)
FUND BALANCE (DEFICIT)
Beginning of the year 787 (22,079) 27,336 188,842 54,346 End of the year ($3,673) $22,543 $93,741 $48,349
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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 $198,917 $218,404 $113,461 $530,782
$183,964 $111,980 1,019 1,119 1,707,333
107,627
$712,977 712,977
183,964 111,980 199,936 219,523 113,461 712,977 3,058,719 97,758
100,000 101,780
215,000 230,000 119,000 435,000 999,000
15,746 23,352 11,946 277,977 329,021
100,000 230,746 253,352 130,946 712,977 1,527,559
183,964 11,980 (30,810) (33,829) (17,485) 1,531,160
4,000
(1,509,612)
(1,505,612)
183,964 11,980 (30,810) (33,829) (17,485) 25,548
60,022 162,799 217,821 176,699 49,369 4,409 920,351
$243,986 $174,779 $187,011 $142,870 $31,884 $4,409 $945,899
REVENUE FUNDS DEBT SERVICE FUNDS
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Special Police Measure F
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
From other agencies $230,000 $195,055 ($34,945) $786,040 $785,207 ($833) Service charges
Total Revenues 230,000 195,055 (34,945) 786,040 785,207 (833)
EXPENDITURES
Current:
Parks and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
REVENUES OVER
(UNDER) EXPENDITURES 230,000 195,055 (34,945) 786,040 785,207 (833)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (250,000) (195,842) 54,158 (790,000) (790,000) Total other financing sources (uses) (250,000) (195,842) 54,158 (790,000) (790,000) NET CHANGE IN FUND BALANCES ($20,000) (787) $19,213 ($3,960) (4,793) ($833)
FUND BALANCE (DEFICIT)
Beginning of the year 787 27,336
End of the year $22,543
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, 2025
78 of 82 74
Gas Tax Open Space
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $409,352 $423,669 $14,317 $2,000 $5,320 $3,320 $190,624 $183,964 ($6,660) 409,352 423,669 14,317 2,000 5,320 3,320 190,624 183,964 (6,660) 4,000 13,537 (9,537)
1,780 (1,780)
4,000 15,317 (11,317)
409,352 423,669 14,317 (2,000) (9,997) (7,997) 190,624 183,964 (6,660) 4,000 4,000
(518,770) (518,770) (300,000) 300,000
(518,770) (518,770) 4,000 4,000 (300,000) 300,000
($109,418) (95,101) $14,317 $2,000 (5,997) ($7,997) ($109,376) 183,964 $293,340 188,842 54,346 60,022
$93,741 $48,349 $243,986
(Continued)
Transportation
Measure A/AA
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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, 2025
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes $142,137 $198,917 $56,780
From other agencies $75,816 $111,980 $36,164 745 1,019 274 Service charges
Total Revenues 75,816 111,980 36,164 142,882 199,936 57,054
EXPENDITURES
Current:
Parks and recreation
Capital outlay 100,000 (100,000)
Debt service:
Principal 210,800 215,000 (4,200)
Interest and fiscal charges 19,220 15,746 3,474
Total Expenditures 100,000 (100,000) 230,020 230,746 (726)
REVENUES OVER
(UNDER) EXPENDITURES 75,816 11,980 (63,836) (87,138) (30,810) 56,328
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (138,000) 138,000
Total other financing sources (uses) (138,000) 138,000
NET CHANGE IN FUND BALANCES ($62,184) 11,980 $74,164 ($87,138) (30,810) $56,328
FUND BALANCE (DEFICIT)
Beginning of the year 162,799 217,821
End of the year $174,779 $187,011
Measure A Parks 2008 Series Debt Service
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Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $237,925 $218,404 ($19,521) $118,062 $113,461 ($4,601)
1,247 1,119 (128) 619 (619)
$668,198 $712,977 $44,779
239,172 219,523 (19,649) 118,681 113,461 (5,220) 668,198 712,977 44,779 224,900 230,000 (5,100) 119,000 119,000 435,000 435,000 26,050 23,352 2,698 15,257 11,946 3,311 279,312 277,977 1,335 250,950 253,352 (2,402) 134,257 130,946 3,311 714,312 712,977 1,335 (11,778) (33,829) (22,051) (15,576) (17,485) (1,909) (46,114) 46,114 ($11,778) (33,829) ($22,051) ($15,576) (17,485) ($1,909) ($46,114) $46,114 176,699 49,369 4,409
$142,870 $31,884 $4,409
2012 Series Debt Service 2016 Series Debt Service 2020 Lease Financing Debt Service 81 of 82 77
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