Fairfield City Council
November 25, 2025

Landscaping and Lighting
Maintenance Districts Funding
Item D.2
David Gassaway, City Manager 1
2 Thacker v. City of Fairfield
Overview
• Lawsuit filed by LLMD No. 7 – Rolling Hills property owner citing invalid assessment levies Court Ruling
• Increases to assessments without ballot proceedings after July 1, 1997 (Prop 218 implementation) are invalid
Impacts
• LLMD assessments adjusted down to FY 1996-1997 rates in six LLMDs • Reduced revenue ($355,000 total or 10-35% per district) • Property owner refunds
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City Contributions to LLMDs
Overview
• Prior to Prop 218, City Council set policy for General Fund contributions to LLMDs • Resolution No. 1991-213b established General Fund contributions to LLMDs for:
• City administrative overhead
• Per lot credit for interior streetlights
• 100% of costs for arterial streetlights
• 50% of costs for arterial medians
• Resolution No. 2003-176 limited FY 2004-2005 General Fund contributions to $156,000 + CPI ($274,026 in FY 2024-2025 dollars)
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City Contributions to LLMDs (continued)
Conflicts
• General Fund contributions stated in Resolution No. 1991-213b are incompatible with General Fund contribution limits established in Resolution No. 2003-176 due to inflation
• Actual FY 2025-2026 General Fund contributions exceed limits established in Resolution No. 2003-176
 $471,601 cash transfers
 Plus non-cash contributions (streetlight credits and
exemption for admin overhead costs)
• In addition to General Fund contribution, the City pays $60,869 in assessments for City-owned parcels
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Council Action
Recommendation
• Provide direction for the six LLMDs affected by court ruling • Repeal Resolution Nos. 1991-213b and 2003-176
• Adopt new resolution setting new policy for General Fund contributions to LLMDs 5 Thank you!
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