1.           What is Proposition A?

A.          Proposition A is a special election on whether the city can issue up to $2.65 million in certificates of obligation (CO) for city projects. The election was called because the City received a petition containing the required number of signatures asking that the issues be referred to the voters on the November ballot.

2.           What is a certificate of obligation?

A.          A certificate of obligation is like a general obligation bond, where the city issues debt payable over an agreed amount of time, usually 20 years. COs are not always subject to voter approval but the legal number of registered voters signed a petition to have the question put on the ballot.

3.           What will the COs be used for?

A.          The city has several projects that are included in the proposed CO. Those projects include:

              –Paving for Oak Street (Estimated $150-$200,000)

              –Refurbishing the Love Street water tower (Estimated $400-$450,000)

              –Purchasing property and either renovating or building a new city hall ($1.45 million)

              –Starting other city projects, including drainage work on South Bateman Street and paving other city streets (Estimated $650,000)

4.           When will those projects begin?

A.          The first two projects, Oak Street and the Love Street water tower, will begin immediately if Proposition A is passed.

5.           Can I vote for one project and not another?

A.          No. State law prohibits the city from separating the projects when an election has been called because the projects were to be paid with the same CO. The measure allows the city to issue the COs up to $2.65 million.

6.           What happens if the vote does not pass?

A.          The city cannot issue the COs for the projects that were stated in the July Notice of Intention.

7.           What about the projects if the vote does not pass?

A.          The council will assess its options following the results of the election and

then decide the next course of action.

8.           What will the Certificate of Obligation do for the tax rate?

A.          The overall tax rate, set by the council last month, is 0.464582 for every $100 of assessed value. The debt rate of 0.185269 has the amount of debt service needed for all of our COs, including this proposed CO, already factored in.

Earlier this year, the city placed $245,000 into an escrow defeasance account, paying off one of the city’s two certificates of obligation (CO). Putting that money into escrow is, in essence, pays off that CO and there is only one CO the city is currently paying. Therefore, the financing for these projects did not raise property taxes by themselves. Last fiscal year, the city paid $455,000 in debt payments.

If Proposition A passes and the proposed CO is issued by the city, the estimated total debt payment for the city will be approximately $381,000. If Proposition A does not pass, the existing funds will be used for other tax supported debt payments.

For more information about the City of Fairfield’s Special Election, click here.