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Consultants: Ross lacks capacity to fund Facilities Master Plan or FORF without new voter revenue
Summary
Fieldman Rolapp told the Ross Town Council that the town’s current fiscal capacity cannot support the Facilities Master Plan or the Friends of the Ross Firehouse (FORF) proposal without new, voter‑approved revenue; a combined scenario could require debt service equal to a majority of annual revenues.
Fieldman Rolapp Senior Vice President Un Chu Reardon and municipal advisor Dan Shaw told the Ross Town Council on April 2 that the town’s fiscal capacity is limited and that issuing large bonds would likely require new voter‑approved revenue.
Reardon presented the town’s revenue profile—about 85% from property taxes, 13% from the Measure E parcel tax and the remainder from sales and other taxes—and ran stress tests showing the Town’s General Fund can realistically support little additional debt. Reardon summarized the combined scenarios: "The total annual costs of those plans including the Town’s existing capital needs ranges between $7.2 million to $9.5 million. This represents approximately 64% to 85% of the Town's revenues, so in all of these scenarios, taking on these obligations without raising new revenues is not financially feasible for the Town." The firm estimated roughly $650,000 in annual debt service for a $10 million bond and about $1.3 million for $20 million, figures the consultants said would strain Ross under standard credit‑rating guidance.
Shaw outlined options the town could use to raise revenue before issuing long‑term debt: a general obligation bond (ad valorem, 2/3 voter approval), a parcel tax (flat fee per parcel, 2/3), a community facilities district / Mello‑Roos (special tax, 2/3) or a real property transfer tax (simple majority but volatile and requires charter city status for higher rates). "Revenue stability matters a lot when a town is pledging it to debt service," Shaw said, noting that predictable cash flows favor GO bonds, parcel taxes or CFDs and that lease or COP financings increase General Fund obligations.
Council members asked about overlap between the Facilities Master Plan and the private FORF proposal and about timing relative to the Citizens Advisory Committee’s April 29 recommendation. Town staff said the briefing was informational; no action was taken. The consultants emphasized that meaningful financing would require explicit voter approval and more detailed scenario work to identify which projects would be funded under any single measure.
