Fairfax Council Considers Budget

The Fairfax Town Council discussed at length t for the town of Fairfax at their meeting on July 13.  

Town council members commented on the current challenges of balancing a budget that has shrinking revenues and increasing expenses. The budget deficit currently stands at $267,000, down from $305,000 as reported at the June 22 council meeting. The reduction is due to the state funding the COPS program at the last moment in the budget drama in Sacramento. 

However, the town is awaiting the property tax revenue estimates from the county and the county assessor’s office just announced that 21,000 parcels in the county are being reassessed this year to a lower assessed value. This represents 22 percent of all the parcels in Marin. Lower assessed values translates into less property tax revenue for the town of Fairfax.

After a long discussion about the need for a special local sales tax the Fairfax Town Council last Wednesday night decided to delay a decision until July 27 on a to allow more time for the idea to percolate through the community and to receive more feedback from the community on their comfort level for a one percent local sales tax verses a 0.5 percent tax. The entire amount of the local sales tax collected will stay in Fairfax and cannot be taken by the state for any reason.

On everyone’s minds was an ongoing revenue problem within the town.

As the Town Manager, I have said many times that the town needs to decrease its expenditures, which we’ve been doing for four straight years, but we also need to increase our revenue. There will be a structural deficit even with concessions from employees and even with a possible local sales tax measure. The town’s property tax revenue has decreased nearly $300,000 over the last four years, largely because of downward reassessments. In addition, state funding for different programs has also decreased.

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Some good news came in the fact that the state will not be taking $100,000 in COPS funding – state funds for local policing. However, the state will be taking $27,000 in motor vehicle fees, and the COPS funding will go away next year.

Because of that additional revenue, the town budget deficit for fiscal year 2011/12, which had been $350,000, is now $267,000. 

The proposed budget closes the deficit with $45,000 in savings from leaving positions vacant – public works director, a police officer, maintenance worker, administrative assistance – and another $50,000 in operational budget cuts. The remainder would come from pending labor agreements with employees and from reserves.

The council members all pointed out that, although are a problem that needs addressing, the employees can’t take all the cuts and they all work hard for the town.

“It hasn’t been said yet, and it should be, our employees are the lowest paid in the county,” said Council Member Lew Tremaine.

The town has held a number of meetings about the possibility of a local sales tax, and with the temporary one percent state sales tax having expired on June 30 of this year the council felt a one percent local tax may make sense now. 

Wendy Baker, Executive Director of the Fairfax Chamber of Commerce, also read some informal survey results of business owners, though she said the survey was in reference to a 0.5 percent tax. Of the 35 business owners that responded, 59 percent said they were in favor of a tax. A one percent sales tax would generate roughly $300,000 for the town.

Council members also expressed their belief that it would be a way to capitalize on the number of tourists that pass through town without hurting residents as much as with a property tax. 

Other actions taken at the Fairfax Town Council July 13 meeting:

• Approved town council minutes from April 6 and 14 and June 22, 2011 meetings;
• Adopted Resolution 11-38 calling for the holding of general municipal election on November 8, 2011, for the election of certain officers, and requesting the Marin County Board of Supervisors to Consolidate with any other election conducted on that date and requesting election services of the County Clerk;
• Adopted Ordinance 762 removing real estate agents from business license fee obligations and adding real estate brokers for the fee obligation;

Other notes and announcements:

• Fairfax Food Pantry is on Saturdays from 10 a.m. to noon at the , 1000 Sir Francis Drake Blvd.
• Applicants sought for the General Plan Implementation Committee, two community members needed
• Volunteer Board Vacancy to complete an unexpired term to September 30, 2012
• 2 vacancies on the Fairfax Youth Commission for Ross Valley youth between 14 and 19 years of age
• Register now for Camp Fairfax and exciting new summer programs – new FOCAS guide available

The next Fairfax Town Council meeting will be July 27, 2011 at 7 p.m. at the Women’s Club.