Referendum Frequently Asked Questions

Yes, all four of our public schools are frequently used by our community. From local churches, to scouting troops, to sports leagues, to homeowners’ associations, to theater groups, our schools are used on weekends and in the evenings.  

 

Fairfax High School’s roof was installed before the renovation in 2001, and, during the FHS/KJMS renovation from 2001-2003, sections of the roof were updated. While it is currently under warranty, the Facilities Condition Assessment stated the roof needs to be replaced.  The CIP has prioritized replacing the roof in a timely and cost-effective manner.

 

If the schools are renovated concurrently, the timeline is expected to be:
2025 – Request for Architect/Engineering Proposals and Contract Awards
2026 – Architecture/Planning
2027 – Planning/Permits/Materials
Summer 2028 – 2030 – Phased/occupied construction work begins. Summer work is necessary for large common areas such as cafeterias, libraries, gymnasiums to prevent disruption to student learning. Most of the work would be done throughout the school year in areas in phases.

 

Please visit our website to see the report. 

 

 

To see photos from the Facilities Condition Assessment, please see this photo album. 

 

 

The referendum seeks approval for the issuance of up to $220 million aggregate principal amount of general obligation school bonds.  Should such funding be approved, the Fairfax City School Board anticipates allocating bond proceeds to finance CIP projects, estimated to include:
·       $75.4 million for renovations at Daniels Run ES (construction/design/planning/contingency)
·       $84.8 million for renovations at Providence ES (construction/design/planning/contingency)
·       $43.5 million for the roof replacement at Fairfax HS (construction/design/planning/contingency) 
·       $13.1 million for “FF&E” including furniture, fixtures, equipment and technology for both elementary schools
·       $3.12 million Contingency/Issuance Cost
Such costs reflect preliminary cost estimates.  Bond proceeds may be reallocated between projects as well as to additional CIP-approved expenses if necessary to account for final project costs, the timing of a phased bond issuance and other factors.

 

A general obligation school bond is a type of long-term borrowing that a locality issues to finance large capital projects such as renovating existing facilities or making significant upgrades to infrastructure. Voters will be asked as part of the November bond referendum whether the City should issue such bonds.  

If approved, the City anticipates that it will sell bonds in a phased issuance to match the schedule of the projects. This funding method allows a locality to undertake significant capital improvements and expansions for school purposes at levels that significantly exceed current operating budget revenues. This approach spreads the cost over many years and allows our community to benefit from improved educational facilities.  Using general obligation bonds for large, generational capital projects that will benefit taxpayers for multiple decades is a widely used and accepted form of funding for similar capital projects nationwide. 

 

 

The City repays general obligation debt from the General Fund portion of the City budget. Examples of revenue sources for the General Fund include real estate tax, personal property tax, state sales tax, local sales tax, utility tax, business and professional licenses, motor vehicle licenses, recordation tax, bank stock tax, cigarette tax, lodging tax, and meals tax.  
Currently, the City has one of the lowest real estate tax rates in the area. Many factors will determine whether the bond repayment obligation will affect the tax rate, such as the growth of the City’s tax and revenue base and the increase or decrease in the current and future City spending. 

Virginia law requires that the City balance planned expenditures against expected revenues in its annual budget. To pay the annual cost of the proposed bonds, future City Councils will annually examine expenditures, cost-saving measures, and revenue sources to determine the best potential mix to fund municipal services.

To see more information about the City of Fairfax Budget, please visit the City’s website. 

 

The City is currently repaying bonds issued to finance projects such as renovation and construction of City Hall, police headquarters, fire station, and City parks. To find out more about the overall City debt service, please see the FY 2025 Budget, available on the City of Fairfax website pages 502-524.

 

·       Immediate needs and major improvements identified in the CIP for Daniels Run ES and Providence ES would still be required for continued use of the buildings.
·       Without funding provided by general obligation bonds, the City School Board would need to fund such CIP expenditures over time [in smaller increments] from other sources or ask the City to undertake an alternative form of financing.  Alternative financing options available to the City are anticipated to offer less favorable terms than a general obligation debt financing.
·       The potential costs of the needed renovations are anticipated to increase due to building costs and inflation.
·       To respond to possible future capacity and programmatic needs, additional trailers may be needed at both elementary schools.

 

The City and its financial advisors will strive to structure the issuance of bonds in a manner that minimizes any adverse effect on the City’s long-term credit ratings.  Maintaining the highest possible credit ratings helps the City to borrow in the bond markets at the lowest possible interest rate and thus is a primary factor in helping to minimize the cost of a large borrowing program.  The City is currently rated “AAA” by Moody’s Investors Service and “AAA” by Standard & Poor’s – these are the highest possible credit ratings for these independent agencies.   Nevertheless, it is possible that both rating agencies (S&P and Moody’s) may downgrade the City’s credit rating due to the significant amount of additional debt (leverage) needed for capital improvements for the City schools.  Both rating agencies use a weighted scorecard methodology in determining an entity’s credit rating.  Common rating factors include Economy, Financial Performance, Institutional Framework/Governance, and Leverage.  In anticipation of the need to fund these large generational projects, the City has strengthened both the Financial Performance and Institutional Framework/Governance sections by building up and maintaining a minimum unassigned General Fund fund balance, and by providing a track record of fiscal planning, operational management, establishing and reevaluating policies and practices, and setting and meeting annual budget targets, amongst other financial best practices.