Fairfield City Council
January 20, 2026

City of Fairfield, California
Non Major Governmental Funds
Special Revenue Funds
104
State Gas Tax
To account for monies received and expended from State Gas Tax allocation to cities.

Home Program
To account for monies received and expended under the Home Investment Partnerships Program (HOME). Funds are provided by the Federal Government and passed through the State of California.

Neighborhood Stabilization Program
To account for monies received and expended under the Neighborhood Stabilization Program (NSP) issued under the American Reinvestment and Recovery Act (ARRA) of 2008. Funds are provided by the Federal Government and passed through the State of California.

Development Tax
To account for monies received from taxes levied by the City on new residential construction based on the number of bedrooms in each unit, square footage of all new commercial construction and units of residential construction.

City ordinance commits these monies to funding construction, major maintenance and debt service for park, street, drainage, and public safety facilities.

Special Programs
To account for monies received from Federal, State, and Regional grants as well as asset seizures.

Maintenance Districts
To account for maintenance districts monies received from taxes levied on property owners located within the districts.

Community Development Block Grant
To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant program, including accounting for activity related to the revolving loan fund program.

Section 8 Housing Assistance
To account for monies received and expended in housing assistance to low and moderate income families. Funds are provided by receipts from Housing and Urban Development (HUD) for the Federal Section 8 Housing Choice Voucher program.

Improvement Districts
To account for monies received from the special taxes collected related to the Downtown Improvement District, the North Texas Business Improvement District, and the Tourism Business Improvement District. There was no adopted budget for the fund. Therefore, there is no budget.

City of Fairfield, California
Non Major Governmental Funds
Other Funds
105
Debt Service Funds
General Obligation Bonds
To account for property tax monies and zone of benefit taxes levied for the payment of voter-approved debt principal and interest and payment of contractual obligations.

Pension Obligation Bonds
To account for the proceeds of the bonds issued to refund the City’s unfunded liability to the CalPERS retirement system; and to account for the ongoing accumulation of resources used in making payments on this debt.

Capital Project Fund
Assessment and Community Facilities Districts
To account for the construction of public improvements deemed to benefit the properties against which special assessments are levied. Activities financed through assessments include street lighting and paving, utility and other general infrastructure improvements. In addition, to account for the activities in the Community Facilities Districts and the Rancho Solano and North Texas Benefit Districts.

Permanent Fund
Outreach Independence
To account for monies donated to the City and the Friends of the Senior Center for disbursements relating to senior citizen outreach programs. There was no adopted budget for the fund so no budget to actual is shown.

City of Fairfield, California
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
106
Neighborhood
State Gas Home Stabilization Development
Tax Program Program Tax
Assets:

Cash and investments $ 12,633,399 $ 2,700,285 $ 602,705 $ 22,540,849 Receivables, net 930,802 13,612,726 756,322
Prepaid items
Total assets $ 13,564,201 $ 16,313,011 $ 1,359,027 $ 22,540,849 Liabilities:

Accounts payable and other current liabilities 280 1,158 Due to other funds
Advances from other funds
Unearned revenue
Total liabilities - 280 - 1,158
Deferred Inflows Of Resources:

Unavailable revenue-loans interest receivable 3,102,634 Fund balances:

Nonspendable
Restricted 13,564,201 13,210,097 1,359,027
Committed 22,539,691
Assigned
Total fund balances 13,564,201 13,210,097 1,359,027 22,539,691 Total liabilities, deferred inflows of
resources, and fund balances $ 13,564,201 $ 16,313,011 $ 1,359,027 $ 22,540,849 Special Revenue

107
Community Section 8
Special Maintenance Development Housing Improvement
Programs Districts Block Grant Assistance Districts
$ 3,742,635 $ 18,973,719 $ 199,228 $ 61,243 $ 177,016
621,733 198,148 3,130,201 43,297 259,153
36,726
$ 4,364,368 $ 19,171,867 $ 3,329,429 $ 141,266 $ 436,169 516,993 734,464 25,870 11,622 260,029
444,461
598,200
331,294
1,292,748 1,332,664 25,870 11,622 260,029
449,927
36,726
3,071,620 17,839,203 2,853,632 92,918 176,140
3,071,620 17,839,203 2,853,632 129,644 176,140
$ 4,364,368 $ 19,171,867 $ 3,329,429 $ 141,266 $ 436,169 Special Revenue

City of Fairfield, California
Combining Balance Sheet (continued)
Non-Major Governmental Funds
June 30, 2025
108
Capital
Debt Service Project
General Pension Assessment &
Obligation Obligation Community Facilities
Bonds Bonds Districts
Assets:

Cash and investments $ 1,098,002 $ 1,524,746 $ 27,510,436 Receivables, net 12,780 184,279
Prepaid items
Total assets $ 1,098,002 $ 1,537,526 $ 27,694,715
Liabilities:

Accounts payable and other current liabilities 240,346
Due to other funds
Advances from other funds
Unearned revenue
Total liabilities - - 240,346
Deferred Inflows Of Resources:

Unavailable revenue-loans interest receivable
Fund balances:

Nonspendable
Restricted 1,098,002 27,454,369
Committed
Assigned 1,537,526
Total fund balances 1,098,002 1,537,526 27,454,369
Total liabilities, deferred inflows of
resources, and fund balances $ 1,098,002 $ 1,537,526 $ 27,694,715

109
Permanent
Fund
Total
Non-Major
Outreach Governmental
Independence Funds
$ 413,453 $ 92,177,716
3,048 19,752,489
36,726
$ 416,501 $ 111,966,931
1,790,762
444,461
598,200
331,294
- 3,164,717
3,552,561
335,375 372,101
81,126 80,800,335
22,539,691
1,537,526
416,501 105,249,653
$ 416,501 $ 111,966,931

City of Fairfield, California
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Non-Major Governmental Funds
For the Year Ended June 30, 2025
110
Neighborhood
State Gas Home Stabilization Development
Tax Program Program Tax
Revenues:

Taxes $ 2,170,007
Property taxes
Special assessments levied
Developers' contribution
Intergovernmental $ 6,670,355
Investment income 409,150 $ 105,442 $ 22,854
Net increase in fair value of investments 210,341 39,410 8,800 Miscellaneous
Total revenues 7,289,846 144,852 31,654 2,170,007
Expenditures:

Current:

Administration
Police
Fire
Public works 24,036 12,805
Parks and recreation 1,941
Community development
Housing services 75,904 75,971
Capital outlay
Debt service:

Principal retirement
Interest
Fiscal agent fees
Total expenditures 24,036 75,904 75,971 14,746
Excess (deficiency) of revenues
over (under) expenditures 7,265,810 68,948 (44,317) 2,155,261 Other Financing Sources (Uses):

Issuance of subscription-based IT arrangements
Transfers in
Transfers out (2,463,044) (2,000,361)
Total other financing sources (uses) (2,463,044) - - (2,000,361) Net change in fund balances 4,802,766 68,948 (44,317) 154,900 Fund Balances:

Beginning of year 8,761,435 13,141,149 1,403,344 22,384,791 End of year $ 13,564,201 $ 13,210,097 $ 1,359,027 $ 22,539,691 Special Revenue

111
Community Section 8
Special Maintenance Development Housing Improvement
Programs Districts Block Grant Assistance Districts
$ 23,423 $ 1,017,489
$ 5,547,744
4,048,873 776,500 $ 167,550 $ 11,559,542
111,479 688,879 21,932 508 9,896
94,028 284,215 449 4,035
1,618,540 9,622 12,224 204
5,896,343 7,306,960 189,931 11,572,274 1,031,624
715,588
1,012,225
945,914
350,474 7,489,171 17,622
527,401 30,000
9,245 979,185
1,160,670 453,336 12,337,244
173,068 4,684
64,836
7,426
4,894,585 7,489,171 500,958 12,414,190 979,185
1,001,758 (182,211) (311,027) (841,916) 52,439
173,068 4,684
1,273,125 600,000
(247,164) (144,345) (19,277)
(74,096) 1,128,780 - 585,407 -
927,662 946,569 (311,027) (256,509) 52,439
2,143,958 16,892,634 3,164,659 386,153 123,701
$ 3,071,620 $ 17,839,203 $ 2,853,632 $ 129,644 $ 176,140 Special Revenue

City of Fairfield, California
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2025
112
Capital
Project
General Pension Assessment &
Obligation Obligation Community Facilities
Bonds Bonds Districts
Revenues:

Taxes
Property taxes $ 498,115
Special assessments levied $ 6,236,894
Developers' contribution 8,500
Intergovernmental
Investment income $ 106,934 959,553
Net increase in fair value of investments 22,158 409,074 Miscellaneous
Total revenues 498,115 129,092 7,614,021
Expenditures:

Current:

Administration
Police
Fire
Public works
Parks and recreation
Community development
Housing services
Capital outlay 1,272,907
Debt service:

Principal retirement 421,890 1,970,000
Interest 1,009,186
Fiscal agent fees 90,572 22,287
Total expenditures 512,462 3,001,473 1,272,907
Excess (deficiency) of revenues
over (under) expenditures (14,347) (2,872,381) 6,341,114 Other Financing Sources (Uses):

Issuance of subscription-based IT arrangements
Transfers in 3,000,005
Transfers out (2,831,896)
Total other financing sources (uses) - 3,000,005 (2,831,896) Net change in fund balances (14,347) 127,624 3,509,218
Fund Balances:

Beginning of year 1,112,349 1,409,902 23,945,151
End of year $ 1,098,002 $ 1,537,526 $ 27,454,369
Debt Service

113
Permanent
Fund
Total
Non-Major
Outreach Governmental
Independence Funds
$ 3,210,919
498,115
11,784,638
8,500
23,222,820
$ 15,675 2,452,302
6,036 1,078,546
1,640,590
21,711 43,896,430
715,588
1,012,225
945,914
7,894,108
559,342
988,430
14,103,125
1,450,659

2,456,726
1,016,612
112,859
- 31,255,588
21,711 12,640,842
177,752
4,873,130
(7,706,087)
- (2,655,205)
21,711 9,985,637
394,790 95,264,016
$ 416,501 $ 105,249,653

City of Fairfield, California
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the Year Ended June 30, 2025
114
Revenues: Final Budget Actual Variance Final Budget Actual Variance Taxes
Property taxes
Special assessments levied
Developers' contributions
Intergovernmental $ 6,552,999 $ 6,670,355 $ 117,356 $ 750,000 $ (750,000) Investment income 34,000 409,150 375,150 12,005 $ 105,442 93,437 Net increase in fair value of investments 210,341 210,341 39,410 39,410 Miscellaneous
Total Revenues 6,586,999 7,289,846 702,847 762,005 144,852 (617,153) Expenditures:

Current:

Administration
Police
Fire
Public works 24,036 24,036 -
Parks and recreation
Community development
Housing services 779,834 75,904 703,930
Capital Outlay
Debt Service:

Principal retirement
Interest
Fiscal fees
Total Expenditures 24,036 24,036 - 779,834 75,904 703,930 Excess (deficiency) of revenues
over (under) expenditures 6,562,963 7,265,810 702,847 (17,829) 68,948 86,777 Other Financing Sources (Uses):

Issuance of subscription-based IT arrangements
Transfers in
Transfers out (5,631,916) (2,463,044) 3,168,872
Total other financing sources (uses) (5,631,916) (2,463,044) 3,168,872 - - - Net change in fund balances 931,047 4,802,766 3,871,719 (17,829) 68,948 86,777 Beginning Fund Balances 8,761,435 8,761,435 - 13,141,149 13,141,149 - Ending Fund Balances $ 9,692,482 $ 13,564,201 $ 3,871,719 $ 13,123,320 $ 13,210,097 $ 86,777 Special Revenue Funds
State Gas Tax Home Program

115
Final Budget Actual Variance Final Budget Actual Variance $ 5,298,652 $ 2,170,007 $ (3,128,645)
$ 22,854 $ 22,854
8,800 8,800

$ - 31,654 31,654 5,298,652 2,170,007 (3,128,645)
12,805 12,805
1,941 1,941
75,971 (75,971)
- 75,971 (75,971) 14,746 14,746 -
- (44,317) (44,317) 5,283,906 2,155,261 (3,128,645)
(10,026,261) (2,000,361) 8,025,900
- - - (10,026,261) (2,000,361) 8,025,900
- (44,317) (44,317) (4,742,355) 154,900 4,897,255
1,403,344 1,403,344 - 22,384,791 22,384,791 -
$ 1,403,344 $ 1,359,027 $ (44,317) $ 17,642,436 $ 22,539,691 $ 4,897,255 Neighborhood Stabilization Program Development Tax

City of Fairfield, California
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual (continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
116
Revenues: Final Budget Actual Variance Final Budget Actual Variance Taxes $ 23,423 $ 23,423
Property taxes
Special assessments levied $ 5,550,819 $ 5,547,744 $ (3,075) Developers' contributions
Intergovernmental $ 2,427,484 4,048,873 1,621,389 776,500 776,500 - Investment income 111,479 111,479 154,878 688,879 534,001 Net increase in fair value of investments 94,028 94,028 284,215 284,215 Miscellaneous 1,021,427 1,618,540 597,113 8,000 9,622 1,622 Total Revenues 3,448,911 5,896,343 2,447,432 6,490,197 7,306,960 816,763 Expenditures:

Current:

Administration 333,784 715,588 (381,804)
Police 622,423 1,012,225 (389,802)
Fire 726,488 945,914 (219,426)
Public works 712,028 350,474 361,554 7,762,691 7,489,171 273,520 Parks and recreation 605,695 527,401 78,294
Community development 9,245 (9,245)
Housing services 500,000 1,160,670 (660,670)
Capital Outlay 173,068 (173,068)
Debt Service:

Principal retirement
Interest
Fiscal fees
Total Expenditures 3,500,418 4,894,585 (1,394,167) 7,762,691 7,489,171 273,520 Excess (deficiency) of revenues
over (under) expenditures (51,507) 1,001,758 1,053,265 (1,272,494) (182,211) 1,090,283 Other Financing Sources (Uses):

Issuance of subscription-based IT arrangements 173,068 173,068 Transfers in 123,010 (123,010) 1,273,125 1,273,125 -
Transfers out (604,297) (247,164) 357,133 (5,286,640) (144,345) 5,142,295 Total other financing sources (uses) (481,287) (74,096) 407,191 (4,013,515) 1,128,780 5,142,295 Net change in fund balances (532,794) 927,662 1,460,456 (5,286,009) 946,569 6,232,578 Beginning Fund Balances 2,143,958 2,143,958 - 16,892,634 16,892,634 - Ending Fund Balances $ 1,611,164 $ 3,071,620 $ 1,460,456 $ 11,606,625 $ 17,839,203 $ 6,232,578 Special Programs Maintenance Districts
Special Revenue Funds

117
Section 8 Housing Assistance
Final Budget Actual Variance Final Budget Actual Variance Final Budget Actual Variance $ 1,017,489 $ 1,017,489
$ 836,621 $ 167,550 $ (669,071) $ 12,790,370 $ 11,559,542 $ (1,230,828) 21,932 21,932 23,731 508 (23,223) 9,896 9,896
449 449 4,035 4,035
14,000 12,224 (1,776) 204 204
836,621 189,931 (646,690) 12,828,101 11,572,274 (1,255,827) $ - 1,031,624 1,031,624

5,000 5,000

17,622 (17,622)
30,000 (30,000)
979,185 (979,185)
953,796 453,336 500,460 13,412,364 12,337,244 1,075,120 4,684 (4,684)
64,836 (64,836)
7,426 (7,426)
958,796 500,958 457,838 13,412,364 12,414,190 998,174 - 979,185 (979,185) (122,175) (311,027) (188,852) (584,263) (841,916) (257,653) - 52,439 52,439 4,684 4,684
193,683 (193,683) 673,156 600,000 (73,156)
(19,277) (19,277) -
193,683 - (193,683) 653,879 585,407 (68,472) - - -
71,508 (311,027) (382,535) 69,616 (256,509) (326,125) - 52,439 52,439 3,164,659 3,164,659 - 386,153 386,153 - 123,701 123,701 - $ 3,236,167 $ 2,853,632 $ (382,535) $ 455,769 $ 129,644 $ (326,125) $ 123,701 $ 176,140 $ 52,439 Block Grant Improvement Districts
Special Revenue Funds
Community Development

City of Fairfield, California
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual (continued) Non-Major Governmental Funds
For the Year Ended June 30, 2025
118
Revenues: Final Budget Actual Variance Final Budget Actual Variance Taxes
Property taxes $ 417,997 $ 498,115 $ 80,118
Special assessments levied
Developers' contributions
Intergovernmental
Investment income $ 106,934 $ 106,934
Net increase in fair value of investments 22,158 22,158 Miscellaneous
Total Revenues 417,997 498,115 80,118 $ - 129,092 129,092 Expenditures:

Current:

Administration
Police
Fire
Public works
Parks and recreation
Community development
Housing services
Capital Outlay
Debt Service:

Principal retirement 421,890 421,890 - 1,725,000 1,970,000 (245,000) Interest 1,250,362 1,009,186 241,176
Fiscal fees 94,910 90,572 4,338 24,129 22,287 1,842
Total Expenditures 516,800 512,462 4,338 2,999,491 3,001,473 (1,982) Excess (deficiency) of revenues
over (under) expenditures (98,803) (14,347) 84,456 (2,999,491) (2,872,381) 127,110 Other Financing Sources (Uses):

Issuance of subscription-based IT arrangements
Transfers in 3,000,005 3,000,005 -
Transfers out
Total other financing sources (uses) - - - 3,000,005 3,000,005 - Net change in fund balances (98,803) (14,347) 84,456 514 127,624 127,110 Beginning Fund Balances 1,112,349 1,112,349 - 1,409,902 1,409,902 - Ending Fund Balances $ 1,013,546 $ 1,098,002 $ 84,456 $ 1,410,416 $ 1,537,526 $ 127,110 General Obligation Bonds Pension Obligation Bonds
Debt Service Funds

119
Final Budget Actual Variance

$ 6,143,140 $ 6,236,894 $ 93,754
8,500 8,500
142,295 959,553 817,258
409,074 409,074
6,285,435 7,614,021 1,328,586
1,460,873 1,272,907 187,966
1,460,873 1,272,907 187,966
4,824,562 6,341,114 1,516,552

(13,313,871) (2,831,896) 10,481,975
(13,313,871) (2,831,896) 10,481,975
(8,489,309) 3,509,218 11,998,527
23,945,151 23,945,151 -
$ 15,455,842 $ 27,454,369 $ 11,998,527
Districts
Capital Project Fund
Assessment & Community Facilities

City of Fairfield, California
Internal Service Funds
120 Page 515 of 968
City of Fairfield, California
Internal Service Funds
121
Service Fund Descriptions
Central Services
To account for the printing, copying, and mail services provided to the various City departments; as well as accounting for public work maintenance supplies for the various City departments.

Vehicle Services/ Replacement
To account for automotive services performed for the various City departments as well as accounting for the City’s Vehicle Replacement Fund.

Information Technology
To account for the charges to the various departments for the use and maintenance of the main power supplies for various communication devices such as hand radios, phones, computers, and closed circuit video cameras throughout the City.

Intragovernmental Loan
To account for loans made to City funds or affiliated agencies.

Insurance
To account for all insurance activities of the City excluding OPEB.

Retiree Insurance (OPEB)
To account for the payment of Other Post-Employment Benefits including medical and dental premiums for retired executive management employees.

Public Facilities
To account for the operations of the cogeneration facilities, the major maintenance of the Civic Center complex, Parks, Fire Department Facilities and equipment.

Compensated Absences
To account for the funding and tracking of the liabilities for vacation, personal leave, and sick leave for the Governmental Activities of the City.

City of Fairfield, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
122
Vehicle
Central Services/ Information
Services Replacement Technology
Current Assets
Cash and investments $ 411,526 $ 14,756,827 $ 16,202,835 Receivables, net 3,396 239,579 101,170
Due from other funds
Inventory 82,384 733,166
Prepaid items 344,144
Total current assets 497,306 15,729,572 16,648,149
Noncurrent Assets
Advances to other funds
Land held for development
Capital Assets:

Nondepreciable 1,208,477
Depreciable/amortizable 24,175 30,822,185 20,751,362
Less: accumulated depreciation/amoritzation (10,157) (16,944,033) (11,268,060) Total Capital Assets 14,018 15,086,629 9,483,302
Total noncurrent assets 14,018 15,086,629 9,483,302
Total assets 511,324 30,816,201 26,131,451
Deferred Outflows of Resources:

Deferred outflow related to OPEB
Liabilities:

Current Liabilities
Accounts payable and other current liabilities 3,647 291,502 194,039 Claims and judgments payable - due within one year
Compensated absences - due within one year
Leases and subscriptions - due within one year 1,388,409 Total current liabilities 3,647 291,502 1,582,448
Noncurrent Liabilities
Net OPEB liability
Claims and judgments payable - due in more than one year Compensated absences - due in more than one year
Leases and subscriptions - due in more than one year 1,125,563 Total noncurrent liabilities - - 1,125,563
Total liabilities 3,647 291,502 2,708,011
Net Position:

Net investment in capital assets 14,018 15,086,629 6,969,330 Unrestricted 493,659 15,438,070 16,454,110
Total net position (deficit) $ 507,677 $ 30,524,699 $ 23,423,440 Assets:

123
Intra- Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
$ 31,647,719 $ 13,487,689 $ 330,156 $ 2,384,492 $ 11,518,984 $ 90,740,228 241,621 566,852 184,970 29,956 57,010 1,424,554
1,568,843 1,568,843
815,550
344,144
33,458,183 14,054,541 515,126 2,414,448 11,575,994 94,893,319 598,200 598,200
2,104,129 2,104,129

1,208,477
4,372,180 55,969,902
(3,891,430) (32,113,680)
- - - 480,750 - 25,064,699 2,702,329 - - 480,750 - 27,767,028 36,160,512 14,054,541 515,126 2,895,198 11,575,994 122,660,347 90,240 90,240
24,577 249,223 6,925 116,147 886,060
4,611,802 4,611,802
5,959,065 5,959,065
1,388,409
24,577 4,861,025 6,925 116,147 5,959,065 12,845,336
162,648 162,648
15,499,198 15,499,198
17,575,055 17,575,055
1,125,563
- 15,499,198 162,648 17,575,055 34,362,464
24,577 20,360,223 169,573 116,147 23,534,120 47,207,800 480,750 22,550,727
36,135,935 (6,305,682) 435,793 2,298,301 (11,958,126) 52,992,060 $ 36,135,935 $ (6,305,682) $ 435,793 $ 2,779,051 $ (11,958,126) $ 75,542,787

City of Fairfield, California
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
124
Vehicle
Central Services/ Information
Services Replacement Technology
Operating Revenues:

Charges for services $ 325,583 $ 14,375,785 $ 14,203,768 Insurance Recovery
Miscellaneous
Total operating revenues 325,583 14,375,785 14,203,768
Operating Expenses:

Material and supplies 144,956 2,492,958 2,059,032
Operating and maintenance 3,717 6,435,087 535,275
General and administrative 201,759 948,997 4,930,580
Insurance claims and premiums
Depreciation and amortization 3,741 2,506,855 3,726,964 Total operating expenses 354,173 12,383,897 11,251,851
Operating Income (loss) (28,590) 1,991,888 2,951,917
Nonoperating Revenues (Expenses):

Investment income 16,088 493,090 551,308
Net increase in fair value of investments 5,861 202,450 240,034 Interest expense (59,676)
Gain on disposition of capital assets 179,274
Total nonoperating revenues (expenses) 21,949 874,814 731,666 Income (loss) before transfers (6,641) 2,866,702 3,683,583 Transfers:

Transfers in
Transfers out (3,056) (89,910) (102,331)
Total transfers (3,056) (89,910) (102,331)
Change in net position (9,697) 2,776,792 3,581,252
Net Position (Deficit):

Beginning of year 517,374 27,747,907 19,842,188
End of year $ 507,677 $ 30,524,699 $ 23,423,440

125
Intra- Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
$ 8,300,542 $ 1,382,638 $ 6,505,536 $ 45,093,852
1,354,898 1,354,898
$ 588,388 588,388
588,388 9,655,440 $ - 1,382,638 6,505,536 47,037,138
1,415,128 6,112,074
1,315,614 1,292,576 3,614,824 13,197,093
58,813 1,942,751 12,433 68,887 8,164,220
10,985,919 148,841 11,134,760
291,739 6,529,299
1,374,427 12,928,670 161,274 2,999,443 3,683,711 45,137,446 (786,039) (3,273,230) (161,274) (1,616,805) 2,821,825 1,899,692 933,213 544,766 17,111 149,468 317,854 3,022,898
418,161 188,052 4,838 43,200 138,007 1,240,603
(59,676)
179,274
1,351,374 732,818 21,949 192,668 455,861 4,383,099
565,335 (2,540,412) (139,325) (1,424,137) 3,277,686 6,282,791 242,867 242,867
(2,111,071) (28,617) (343,233) (2,678,218)
(1,868,204) (28,617) - (343,233) - (2,435,351)
(1,302,869) (2,569,029) (139,325) (1,767,370) 3,277,686 3,847,440 37,438,804 (3,736,653) 575,118 4,546,421 (15,235,812) 71,695,347 $ 36,135,935 $ (6,305,682) $ 435,793 $ 2,779,051 $ (11,958,126) $ 75,542,787

City of Fairfield, California
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
126
Vehicle
Central Services/ Information
Services Replacement Technology
Cash Flows from Operating Activities:

Receipts from customers and outside parties
Receipts from interfund services provided $ 325,583 $ 14,375,785 $ 14,242,973 Payments to suppliers (160,842) (5,264,276) (3,032,556) Payments to employees (120,284) (3,640,111) (4,112,153) Payments for interfund services used (81,476) (901,918) (719,038) Net cash provided by (used for) operating activities (37,019) 4,569,480 6,379,226 Cash Flows from Noncapital Financing Activities:

Cash received from other funds
Cash paid to other funds (3,056) (89,910) (102,331)
Net cash provided by noncapital
financing activities (3,056) (89,910) (102,331)
Cash Flows from Capital and Related Financing Activities:

Proceeds from sales of capital assets 428,385
Principal paid- lease liabilities (76,472)
Interest paid- lease liabilities (3,572)
Principal paid- subscription liabilities (1,859,069)
Interest paid- subscription liabilities (56,104)
Acquisition and construction of capital assets (10,436) (2,140,588) (1,093,815) Net cash provided by capital and
related financing activities (10,436) (1,712,203) (3,089,032) Cash Flows from Investing Activities:

Investment income received 21,476 532,008 773,925
Net cash provided by investing activities 21,476 532,008 773,925 Net increase (decrease) in
cash and cash equivalents (29,035) 3,299,375 3,961,788
Cash and Cash Equivalents:

Beginning of year 440,561 11,457,452 12,241,047
End of year $ 411,526 $ 14,756,827 $ 16,202,835

127
Intra- Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
$ 11,526,689 $ 1,354,898 $ 12,881,587
8,300,542 $ 1,382,638 $ 6,505,536 45,133,057
(3,209,917) (9,796,217) $ (27,357) (2,429,075) (23,920,240) (1,626,187) (156,386) (2,602,559) (12,257,680)
(58,813) (267,596) (5,508) (59,551) (68,887) (2,162,787) 8,257,959 (2,034,560) (32,865) (1,262,374) 3,834,090 19,673,937 242,867 242,867
(2,111,071) (28,617) (343,233) (2,678,218)
(1,868,204) (28,617) - (343,233) - (2,435,351)
428,385
(76,472)
(3,572)
(1,859,069)
(56,104)
(18,715) (3,263,554)
- - - (18,715) - (4,830,386)
1,290,744 277,083 20,906 188,229 447,322 3,551,693
1,290,744 277,083 20,906 188,229 447,322 3,551,693
7,680,499 (1,786,094) (11,959) (1,436,093) 4,281,412 15,959,893 23,967,220 15,273,783 342,115 3,820,585 7,237,572 74,780,335 $ 31,647,719 $ 13,487,689 $ 330,156 $ 2,384,492 $ 11,518,984 $ 90,740,228

City of Fairfield, California
Combining Statement of Cash Flows (continued)
Internal Service Funds
For the Year Ended June 30, 2025
128
Vehicle
Central Services/ Information
Services Replacement Technology
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used for) Operating Activities:

Operating income (loss) $ (28,590) $ 1,991,888 $ 2,951,917 Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization expense 3,741 2,506,855 3,726,964 (Increase) decrease in receivables 39,205
(Increase) decrease in inventory (8,808) 29,263
(Increase) decrease in prepaid items (119,225)
(Increase) decrease in advances to other funds
(Increase) decrease in due from other funds
Increase (decrease) in accounts payable (3,362) 41,474 (219,635) Increase (decrease) in compensated absences
Increase in claims and judgments payable
Non-cash expense
Total adjustment (8,429) 2,577,592 3,427,309
Net cash provided by (used for) operating activities $ (37,019) $ 4,569,480 $ 6,379,226 Non-cash capital activities:

Increase in subscription liability for the acquisition of right to use assets $ 732,620

129
Intra- Retiree Total
governmental Insurance Public Compensated Internal Service Loan Insurance (OPEB) Facilities Absences Funds
$ (786,039) $ (3,273,230) $ (161,274) $ (1,616,805) $ 2,821,825 $ 1,899,692 291,739 6,529,299
168,717 6,833 214,755
20,455
6,930 (112,295)
3,544,174 3,544,174
5,825,284 5,825,284
(332,390) 205,953 (7,232) 62,692 (252,500)
1,012,265 1,012,265
864,000 864,000
128,808 128,808
9,043,998 1,238,670 128,409 354,431 1,012,265 17,774,245 $ 8,257,959 $ (2,034,560) $ (32,865) $ (1,262,374) $ 3,834,090 $ 19,673,937 $ 732,620

City of Fairfield, California
Custodial Funds
130 Page 525 of 968
City of Fairfield, California
Custodial Funds
131
Fund Descriptions
Other Deposits
To account for deposits received from outside parties that are held in a custodial capacity. Some of the large items include deposits for: encroachment permit bonds and deposits, restitution for crimes committed, and asset seizures.

Fairfield-Suisun Sewer District
To account for the activities of the Fairfield-Suisun Sewer District.

Solano Animal Control Authority
To account for monies for the operation of the Solano Animal Control Authority.

Green Valley Open Space Maintenance District
To account for maintenance district monies received from taxes levied on properties located in Solano County for acquisition of open space and maintenance in Green Valley which is overseen by Solano County.

Tri-City and County Regional Parks and Open Space Group To account for JPA monies contributed from Solano County and the cities of Benicia, Fairfield and Vallejo for the study and development of a coordinated system of recreation and open space between the three cities.

CFD Debt Service
To account for the financing and debt service of Community Facilities Districts, that have been determined to be debt with no City commitment (non-commitment debt). This fund accounts for the collection of assessments and servicing of this non-commitment debt.

Fairfield Housing and Community Development Corporation To account for the resources of a separate 501(c)(3) corporation that has been formed for the purposes of carrying out support for affordable housing and promoting community development initiatives.

City of Fairfield, California
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
132
Solano
Fairfield- Animal
Other Suisun Control
Deposits Sewer District Authority
Assets:

Cash and investments $ 2,192,256 $ 3,179,576 $ 15,776
Receivables, net 654,996 5,180,662 67,421
Restricted cash and investments
Total Assets 2,847,252 8,360,238 83,197
Liabilities:

Accounts payable 1,490,495 2,330,728
Interest payable
Total Liabilities 1,490,495 2,330,728 -
Deferred Inflows of Resources 47
Net Position:

Restricted for individuals,
organizations, and other
governments $ 1,356,710 $ 6,029,510 $ 83,197

133
Green
Valley Tri-City/County Fairfield Housing
Open Space Regional Parks CFD and Community
Maintenance & Open Space Debt Development
District Group Service Corporation Total
$ 1,007,933 $ 86,601 $ 5,269,620 $ 53,557 $ 11,805,319
6,910 5,529 49,030 395 5,964,943
23,158,402 23,158,402
1,014,843 92,130 28,477,052 53,952 40,928,664
312 11,423 3,832,958
1,205,669 1,205,669
312 11,423 1,205,669 - 5,038,627
47 $ 1,014,531 $ 80,707 $ 27,271,383 $ 53,952 $ 35,889,990

City of Fairfield, California
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2025
134
Solano
Fairfield- Animal
Other Suisun Control
Deposits Sewer District Authority
Additions:

Collection of other fees $ 5,076,605
Collection for other governments $ 28,412,138 $ 1,710,908 Contributions from members
Special assessments
Investment income 61,290
Net increase in fair value of investments 17,286 75
Bond proceeds and premium
Total Additions 5,155,181 28,412,138 1,710,983
Deductions:

Distribution of other fees 5,590,673
Distributions to other governments 27,039,131
Program and administrative expenses 28,758 754,598 1,688,458 Interest expense
Principal payment on bonds
Developer reimbursements
Total deductions 5,619,431 27,793,729 1,688,458

Change in Net Position (464,250) 618,409 22,525
Net Position - Beginning of Year 1,820,960 5,411,101 60,672 Net Position - End of the Year $ 1,356,710 $ 6,029,510 $ 83,197

135
Green
Valley Tri-City/County Fairfield Housing
Open Space Regional Parks CFD and Community
Maintenance & Open Space Debt Development
District Group Service Corporation Total
$ 5,076,605
30,123,046
$ 20,000 20,000
$ 116,748 $ 6,218,618 6,335,366
36,634 2,737 617,468 $ 2,030 720,159
14,678 1,133 74,393 782 108,347
40,991,878 40,991,878
168,060 23,870 47,902,357 $ 2,812.00 83,375,401
5,590,673
27,039,131
45,196 11,423 1,503,432 4,031,865
5,417,385 5,417,385
1,315,000 1,315,000
25,381,046 25,381,046
45,196 11,423 33,616,863 - 68,775,100
122,864 12,447 14,285,494 2,812 14,600,301
891,667 68,260 12,985,889 51,140 21,289,689
$ 1,014,531 $ 80,707 $ 27,271,383 $ 53,952 $ 35,889,990

City of Fairfield, California
People and Places in the City
136 Page 531 of 968
City of Fairfield, California
Statistical Section
137
Contents Pages
Financial Trends
138 - 151
Table 1 - Net Position by Component Table 5 - Changes in Fund Balances of Table 2 - Changes in Net Position Governmental Funds
Table 3 - Governmental Activities Tax Revenues Table 6 - Changes in Fund Balances of by Source General Fund
Table 4 - Fund Balances of Governmental Funds
Revenue Capacity
152 - 155
Table 7 - Assessed Value and Estimated Table 9 - Principal Property Taxpayers Actual Values of Taxable Property Table 10 - Property Tax Levies and Collections Table 8 - Property Tax Rates - Direct and
Overlapping Governments
Debt Capacity
156 - 163
Table 11 - Ratio of Outstanding City Debt by Type Table 14 - Legal Debt Margin Information Table 12 - Ratio of General Bonded Debt Table 15 - Utility and Golf Debt Pledged Outstanding Revenue Coverage
Table 13 - Direct and Overlapping
Governmental Activities Debt
Demographic and Economic Information
164 - 165
Table 16 - Demographic and Economic Statistics Table 17 - Principal Employers Operating Information / Debt Continuing Disclosures
166 - 168
Table 18 - Full-time Authorized City Government Table 20 - Capital Asset Statistics by Function Employees by Function
Table 19 - Operating Indicators by Function
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. They include:

These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities. They include:

These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs, as well as scheduled required by various debt covenants. They include:

This part of the City of Fairfield's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. In contrast to the Financial Section, the Statistical Section is not subject to independent audit.

These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. They include:

These schedules contain information to help the reader assess the government's most significant local revenue sources, property and sales taxes. They include:

City of Fairfield, California
Net Position by Component
(accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 1
138
Table 1
2016 2017 2018 2019
Governmental activities
Net investment in capital assets $ 323,606,096 $ 336,038,449 $ 360,630,992 $ 359,360,263 Restricted 160,077,675 156,192,967 148,645,577 154,910,949 Unrestricted (72,416,045) (53,391,259) (54,093,719) (50,809,831) Total governmental activities net position $ 411,267,726 $ 438,840,157 $ 455,182,850 $ 463,461,381 Business-type activities
Net investment in capital assets $ 87,956,953 $ 88,831,165 $ 86,660,214 $ 93,642,762 Restricted 20,183,680 21,830,966 22,923,098 24,014,320
Unrestricted 22,603,302 20,817,996 20,468,352 20,721,546 Total business-type activities net position $ 130,743,935 $ 131,480,127 $ 130,051,664 $ 138,378,628 Primary Government
Net investment in capital assets $ 411,563,049 $ 424,869,614 $ 447,291,206 $ 453,003,025 Restricted 180,261,355 178,023,933 171,568,675 178,925,269 Unrestricted (49,812,743) (32,573,263) (33,625,367) (30,088,285) Total primary government net position $ 542,011,661 $ 570,320,284 $ 585,234,514 $ 601,840,009 Source: City of Fairfield ACFR
71%
35%
-6%
Allocation of Net Position for Fiscal Year 2025
Capital Assets Restricted Other

139
2020 2021 2022 2023 2024 2025
$ 358,165,387 $ 366,592,521 $ 30,654,310 $ 356,404,912 $ 359,484,813 $ 365,711,524 158,195,251 169,140,810 170,045,974 174,941,255 192,177,208 197,308,177 (58,888,468) (64,667,857) (30,414,071) (42,157,641) (60,194,586) (62,595,178) $ 457,472,170 $ 471,065,474 $ 170,286,213 $ 489,188,526 $ 491,467,435 $ 500,424,523 $ 96,888,502 $ 102,238,253 $ 103,717,574 $ 109,683,417 $ 109,683,417 $ 114,560,857 25,682,136 27,055,244 28,583,286 33,506,838 33,506,838 35,939,848 20,356,963 22,656,747 24,387,130 26,695,407 26,695,407 21,058,365 $ 142,927,601 $ 151,950,244 $ 156,687,990 $ 169,885,662 $ 169,885,662 $ 171,559,070 $ 455,053,889 $ 468,830,774 $ 464,371,884 $ 459,628,405 $ 469,168,230 $ 480,272,381 183,877,387 196,196,054 198,629,260 206,250,295 225,684,046 233,248,025 (38,531,505) (42,011,110) (6,026,941) (17,963,935) (33,499,179) (41,536,813) $ 600,399,771 $ 623,015,718 $ 656,974,203 $ 647,914,765 $ 661,353,097 $ 671,983,593 360
380
400
420
440
460
480
500
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
412
425
447 453 455
469 464 460
469
480
Millions
Net Investment in Capital Assets

City of Fairfield, California
Changes in Net Position
(accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 2
140
2016 2017 2018 2019
Expenses
Governmental activities
Administration / Finance $ 8,705,876 $ 8,874,847 $ 11,123,403 $ 11,900,667 Police 36,088,243 38,768,415 43,433,870 45,359,400
Fire 16,180,164 17,813,313 20,977,657 23,299,548
Public works 32,278,130 29,144,358 41,671,584 42,510,868 Community development 12,520,002 13,244,813 13,611,124 14,714,798 Housing - - - -
Parks and recreation 6,268,850 6,681,502 7,379,270 8,356,798 Interest on long-term debt 2,326,068 1,687,043 1,938,861 1,902,206 Total governmental activities expenses 114,367,333 116,214,291 140,135,769 148,044,285 Business-type activities
Water Utility 31,351,507 31,508,356 33,716,744 34,267,635 North bay treatment plant 6,912,177 7,243,588 8,363,268 9,072,882 Transportation 12,177,417 11,851,331 12,421,497 13,185,265 Golf courses 5,100,140 4,762,749 4,807,394 5,112,961
Police training center 809,537 - - -
Total business-type activities expenses 56,350,778 55,366,024 59,308,903 61,638,743 Total primary government expenses $ 170,718,111 $ 171,580,315 $ 199,444,672 $ 209,683,028 Program Revenues
Governmental activities:

Charges for services:

Public works $ 324,159 $ 339,664 $ 200,110 $ 204,547
Parks and recreation 2,179,879 2,145,843 1,988,401 2,331,329 Other activities 2,124,259 2,572,188 2,626,035 4,159,175 Operating grants and contributions 18,767,680 19,264,298 17,960,671 16,794,639 Capital grants and contributions 49,602,173 29,224,595 42,448,472 25,903,360 Total governmental activities program revenues 72,998,150 53,546,588 65,223,689 49,393,050 Business-type activities:

Charges for services:

Water Utility 29,515,139 29,357,594 31,535,899 32,345,646 North bay treatment plant 8,556,271 10,216,274 8,262,242 11,112,017 Transportation 2,471,629 2,542,027 2,454,050 2,250,751
Golf courses 4,128,491 4,068,853 4,388,981 4,314,330
Operating grants and contributions 7,563,921 8,324,379 8,901,898 9,441,298 Capital grants and contributions 4,423,996 3,267,958 2,982,474 8,560,072 Total business-type activities program revenues 56,659,447 57,777,085 58,525,544 68,024,114 Total primary government program revenues $ 129,657,597 $ 111,323,673 $ 123,749,233 $ 117,417,164 Source: City of Fairfield

141
2020 2021 2022 2023 2024 2025
$ 14,703,518 $ 12,927,151 $ 14,392,640 $ 16,029,362 $ 14,745,374 $ 19,401,156 50,289,152 53,147,611 48,046,571 61,762,522 68,262,494 66,080,623 24,774,955 27,799,367 26,677,805 34,042,320 37,883,293 37,994,133 44,225,785 48,656,594 42,785,178 53,894,207 58,022,554 54,152,646 16,295,692 6,774,428 5,738,204 9,590,647 10,538,178 8,358,041 - 15,375,486 15,575,305 16,523,078 15,676,802 16,643,240 8,109,541 6,026,185 6,956,929 9,220,998 9,248,975 9,644,926 1,523,848 1,292,831 1,195,638 1,172,795 1,213,230 1,094,957 159,922,491 171,999,653 161,368,270 202,235,929 215,590,900 213,369,722 35,441,283 36,838,063 33,665,670 39,393,361 42,326,973 46,011,373 9,480,780 9,537,620 9,321,685 10,553,487 10,596,290 11,622,255 13,687,532 12,635,411 15,362,231 12,935,916 12,122,068 12,301,400 4,786,710 4,411,497 5,947,716 5,820,901 8,627,508 10,387,077 - - - - - -
63,396,305 63,422,591 64,297,302 68,703,665 73,672,839 80,322,105 $ 223,318,796 $ 235,422,244 $ 225,665,572 $ 270,939,594 $ 289,263,739 $ 293,691,827 $ 195,505 $ 242,963 $ 490,823 $ 7,317,026 $ 6,217,928 $ 6,986,524 1,175,693 307,141 1,129,383 1,458,748 1,751,409 1,878,623 1,203,256 4,188,114 4,758,746 4,101,764 4,427,877 7,101,043 18,289,154 26,288,851 28,908,570 24,267,196 27,846,719 27,373,839 24,418,466 41,959,476 26,947,824 26,816,214 36,521,847 31,125,662 45,282,074 72,986,545 62,235,346 63,960,948 76,765,780 74,465,691 35,230,082 37,246,220 37,313,663 36,817,083 35,926,589 37,561,861 10,427,655 12,097,768 9,968,690 11,803,191 12,291,729 11,939,809 1,648,109 494,090 866,972 591,615 448,689 379,458
4,184,787 6,377,792 6,290,695 6,224,425 8,375,276 10,153,273 9,024,408 10,996,083 11,434,255 10,031,849 11,256,430 11,416,980 3,382,582 7,724,142 4,506,789 5,291,777 11,407,381 4,600,614 63,897,623 74,936,095 70,381,064 70,759,940 79,706,094 76,051,995 $ 109,179,697 $ 147,922,640 $ 132,616,410 $ 134,720,888 $ 156,471,874 $ 150,517,686

City of Fairfield, California
Changes in Net Position (Continued)
(accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years

Table 2
142
Table 2
2016 2017 2018 2019
Net (expense)/revenue
Governmental activities $ (41,369,183) $ (62,667,703) $ (74,912,080) $ (98,651,235) Business-type activities 308,669 2,411,061 (783,359) 6,385,371 $ (41,060,514) $ (60,256,642) $ (75,695,439) $ (92,265,864) General Revenues / Other
Governmental activities
Taxes
Property taxes $ 28,358,047 $ 29,209,321 $ 31,333,350 $ 34,085,030 Sales and transaction taxes 41,837,970 39,688,255 41,211,801 43,059,220 Other taxes 13,625,678 14,119,010 15,113,195 15,071,640 Intergovernmental 45,144 234,269 246,085 242,683
Investment earnings 2,793,300 1,057,577 682,405 7,910,032 Net increase (decrease) in fair value of investments - - - - Miscellaneous 6,565,223 6,678,679 7,394,017 6,605,782
Gain on disposition of capital asset - - - -
Transfers (750,994) (495,159) (608,027) (422,979)
Total governmental activities 92,474,368 90,491,952 95,372,826 106,551,408 Business-type activities
Investment earnings 1,044,843 182,338 551,922 2,837,620 Net increase (decrease) in fair value of investments - - - - Miscellaneous 113,055 1,590,513 524,787 438,556
Gain on disposition of capital asset - - - -
Transfers 750,994 495,159 608,027 422,979
Total business-type activities 1,908,892 2,268,010 1,684,736 3,699,155 Total primary government $ 94,383,260 $ 92,759,962 $ 97,057,562 $ 110,250,563 Change in Net Position
Governmental activities $ 51,105,185 $ 27,824,249 $ 20,460,746 $ 7,900,173 Business-type activities 2,217,561 4,679,071 901,377 10,084,526 Total primary government $ 53,322,746 $ 32,503,320 $ 21,362,123 $ 17,984,699 Source: City of Fairfield
Total primary government net expense

35%
19%
23%
10%
13%
Use of Funds for FY 2025 Public safety
Utilities
Public works
Development/Recreation
Other

143
2020 2021 2022 2023 2024 2025
$ (114,640,417) $ (99,013,108) $ (99,132,924) $ (138,274,981) $ (138,825,120) $ (138,904,031) 501,318 11,513,504 6,083,762 2,056,275 6,033,255 (4,270,110) $ (114,139,099) $ (87,499,604) $ (93,049,162) $ (136,218,706) $ (132,791,865) $ (143,174,141) $ 35,310,874 $ 36,853,122 $ 36,348,069 $ 38,320,898 $ 40,744,987 $ 47,135,699 42,874,589 49,589,708 56,179,400 57,515,657 56,226,016 56,461,104 14,553,246 14,825,096 15,873,960 18,456,822 19,604,958 21,274,680 279,957 273,811 17,018,236 1,135,193 4,213,188 1,146,527 8,831,408 2,407,335 2,886,075 4,905,710 9,247,695 12,127,472 - - (9,998,218) (240,265) 4,370,575 4,538,837
6,646,359 8,118,282 9,681,503 6,283,381 5,991,833 4,506,038 - - - - 306,119 272,983
(76,244) 356,265 364,638 370,140 398,657 397,779
108,420,189 112,423,619 128,353,663 126,747,536 141,104,028 147,861,119 3,627,905 263,105 915,002 1,685,909 3,361,558 4,515,065 - - (3,878,019) (147,867) 1,972,733 1,639,560
369,792 946,058 1,981,639 76,075 190,344 186,672
- - - - 190 -
76,244 (356,265) (364,638) (370,140) (398,657) (397,779) 4,073,941 852,898 (1,346,016) 1,243,977 5,126,168 5,943,518 $ 112,494,130 $ 113,276,517 $ 127,007,647 $ 127,991,513 $ 146,230,196 $ 153,804,637 $ (6,220,228) $ 13,410,511 $ 29,220,739 $ (11,527,445) $ 2,278,908 $ 8,957,088 4,575,259 12,366,402 4,737,746 3,300,252 11,159,423 1,673,408 $ (1,644,969) $ 25,776,913 $ 33,958,485 $ (8,227,193) $ 13,438,331 $ 10,630,496 41%
25%
24%
10%
Source of Funds for FY 2025 Taxes
Charges for Services
Grants/Contributions
Other

City of Fairfield, California
Governmental Activities Tax Revenues by Source
(accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 3
144
Table 3
Fiscal Property Sales/Transaction Other
Year Taxes Taxes* Taxes** Total
2016 $ 28,358,047 $ 41,837,970 $ 13,625,678 $ 83,821,695 2017 29,209,321 39,688,255 14,119,010 83,016,586
2018 31,333,350 41,211,801 15,113,195 87,658,346
2019 34,085,030 43,059,220 15,071,640 92,215,890
2020 35,310,874 42,874,589 14,553,246 92,738,709
2021 36,853,122 49,589,708 14,825,096 101,267,926
2022 36,348,069 56,179,400 15,873,960 108,401,429
2023 38,320,898 57,515,657 18,456,822 114,293,377
2024 40,744,987 56,226,016 19,604,958 116,575,961
2025 47,135,699 56,461,104 21,274,680 124,871,483
Source: City of Fairfield
* In April, 2013, Measure P, a 1% transaction and use tax was enacted. In November 2016, the transaction and use tax was extended for an additonal 15 years to 2033. ** Other taxes consist of franchise tax, utility user tax, transient occupancy tax, business license tax, and other taxes.
$0
$50
$100
$150
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$28 $29 $31 $34 $35 $37 $36 $38 $41 $47
$42 $40 $41 $43 $43 $50 $56 $58 $56 $14 $14 $56 $15 $15 $15 $15 $16 $18 $20 $21 Millions
Property Taxes Sales/Transaction Taxes Other Taxes

City of Fairfield, California
People and Places in the City
145

City of Fairfield, California
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 4
146
able 4
2016 2017 2018 2019
General Fund
Nonspendable $ 53,801
Restricted 5,286,612
Committed 7,266,947
Assigned $ 4,418,223 $ 4,416,397 $ 4,415,269 6,278,715
Unassigned 20,876,012 21,228,639 23,125,111 28,822,295
Total general fund $ 25,294,235 $ 25,645,036 $ 27,540,380 $ 47,708,370 All other governmental funds
Nonspendable $ 335,375 $ 335,375 $ 335,375 $ 335,375
Restricted 139,523,737 140,413,466 132,634,714 138,404,751 Committed 10,222,340 11,174,449 11,020,383 12,064,326
Assigned 12,902,068 19,938,002 28,600,148 7,652,343
Unassigned
Total all other governmental funds $ 162,983,520 $ 171,861,292 $ 172,590,620 $ 158,456,795 Source: City of Fairfield
$0
$50
$100
$150
$200
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$163 $172 $173 $158 $160 $168 $170 $177
$192 $198
Millions
Other Governmental Funds Restricted Fund Balances

147
2020 2021 2022 2023 2024 2025
$ 22,000 $ 12,000 $ 895,654 $ 206,955 $ 144,536
5,435,139 6,841,794 $ 5,882,751 6,370,309 7,173,726 7,879,759 7,725,365 3,727,306 3,623,465 3,744,466 3,623,465 33,522,093 282,000 782,100
35,937,493 41,714,193 47,300,261 46,034,025 46,314,392 14,931,641 $ 49,119,997 $ 52,295,293 $ 56,806,477 $ 57,326,454 $ 57,318,538 $ 57,260,129 $ 335,375 $ 335,375 $ 335,375 $ 341,613 $ 341,965 $ 375,006 141,369,068 147,846,982 148,030,707 151,911,489 163,424,766 168,068,296 11,979,293 16,095,711 16,079,866 18,273,633 22,384,791 22,539,691 5,822,196 3,925,093 6,019,481 6,385,746 5,966,996 7,496,504 $ 159,505,932 $ 168,203,161 $ 170,465,429 $ 176,912,481 $ 192,118,518 $ 198,479,497 $0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$21 $21 $23
$29
$36
$42
$47 $46 $46
Millions
$15
General Fund Unassigned Fund Balance

City of Fairfield, California
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 5
148
2016 2017 2018 2019
Revenues
Taxes $ 86,914,959 $ 86,186,557 $ 90,354,326 $ 95,841,255 Development fees 10,577,539 6,523,669 4,942,419 7,481,437 Special assessments levied 4,973,363 5,441,183 5,995,658 6,813,858 Licenses, permits and fines 3,098,394 2,946,531 2,734,897 3,479,535 Developers' contribution 297,899 257,432 946,949 1,095,092 Intergovernmental 44,044,033 31,940,671 33,231,114 21,692,133 Charges for services 5,534,166 6,144,376 7,174,139 6,911,323 Investment income 1,583,153 437,782 1,067,308 5,200,842 Net increase (decrease) in fair value of investments
Miscellaneous 2,783,022 2,617,799 3,824,530 3,492,633
Total revenues 159,806,528 142,496,000 150,271,340 152,008,108 Expenditures
Administration / Finance 4,006,001 5,246,013 4,780,076 5,418,985 Police 35,896,094 37,583,206 38,940,548 41,873,962
Fire 16,287,240 17,560,739 18,911,666 21,580,359
Public works 13,544,353 14,042,213 15,626,230 17,290,319 Parks and recreation 5,567,133 6,053,818 6,092,792 7,868,406 Community development 12,608,989 13,451,185 12,996,451 13,892,385 Housing services
Non-departmental 4,801,029 3,817,702 5,049,006 15,298,522 Capital outlay 41,253,983 30,175,326 40,612,587 18,610,215 Debt service:

Principal 1,906,890 1,686,890 1,721,890 2,051,890
Interest 1,717,155 1,941,846 1,906,025 1,570,807
Fiscal agent fees 18,289 20,438 21,125 21,429
Issuance costs 228,304 268,614
Total expenditures 137,835,460 131,579,376 146,658,396 145,745,893 Excess (deficiency) of revenues
over (under) expenditures 21,971,068 10,916,624 3,612,944 6,262,215 Other financing sources (uses)
Issuance of refunding 21,835,000 15,325,000
Payment to refunded bond escrow (21,174,417) (15,041,320) Bond discount (426,301)
Issuance of leases
Issuance of subscription-based IT arrangements
Transfers in 14,894,347 16,865,682 22,025,622 35,540,495 Transfers out (21,785,897) (18,553,733) (21,184,374) (36,052,225) Total other financing sources (uses) (6,657,268) (1,688,051) 841,248 (228,050) Net change in fund balances $ 15,313,800 $ 9,228,573 $ 4,454,192 $ 6,034,165 Debt service as a percentage of
noncapital expenditures 3.56% 3.40% 3.27% 2.64%
Source: City of Fairfield

City of Fairfield, California
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 5
149
2020 2021 2022 2023 2024 2025
$ 95,416,626 $ 109,700,418 $ 113,026,766 $ 118,616,018 $ 122,726,001 $ 128,082,403 4,647,913 14,321,328 7,251,588 9,578,498 8,808,955 4,152,861 7,481,060 7,949,569 9,009,670 9,508,692 11,179,835 11,784,638 2,920,083 4,078,924 3,934,657 3,620,409 3,864,615 3,549,162 51,094 441,725 2,365,429 115,857 13,000 8,500
21,225,584 25,610,759 41,689,580 29,073,303 38,477,848 37,226,213 6,171,143 6,310,413 7,859,790 6,645,281 5,713,622 8,425,429 6,189,959 1,938,770 2,057,367 3,413,730 6,836,077 8,636,022 (7,764,527) (13,782) 3,264,672 3,298,234
2,159,173 3,231,021 5,155,918 6,700,703 4,637,575 5,614,596 146,262,635 173,582,927 184,586,238 187,258,709 205,522,200 210,778,058 6,990,490 5,565,649 6,511,212 8,997,541 10,576,865 9,240,123 44,612,479 48,131,554 50,204,273 55,346,593 59,067,991 60,772,427 21,787,988 24,990,675 27,190,361 30,393,704 32,350,329 34,587,293 17,726,511 19,469,714 20,521,893 24,154,521 26,933,300 27,233,028 6,734,063 5,126,947 6,575,058 7,762,701 7,749,392 8,036,898 14,968,531 5,467,073 5,601,354 6,472,062 7,033,565 7,010,246 15,376,628 16,104,074 16,315,948 15,069,686 16,369,804
8,737,622 9,882,129 9,111,044 5,249,441 1,382,593 8,022,382 18,997,645 23,819,066 18,590,497 23,386,436 31,591,183 31,852,814 2,106,890 2,146,890 2,335,991 2,802,245 3,330,357 3,453,738 1,296,692 1,250,362 1,200,469 1,178,088 1,135,284 1,041,362 18,863 18,406 17,874 50,281 105,477 112,859

143,977,774 161,245,093 163,964,100 182,109,561 196,326,022 207,732,974 2,284,861 12,337,834 20,622,138 5,149,148 9,196,178 3,045,084

1,248,741 7,156,885
200,309 425,434 424,356
11,180,012 14,219,021 31,438,580 15,920,213 12,416,870 16,095,970 (11,004,109) (14,820,235) (46,536,007) (14,302,641) (13,997,247) (13,262,840) 175,903 (601,214) (13,848,686) 1,817,881 6,001,942 3,257,486 $ 2,460,764 $ 11,736,620 $ 6,773,452 $ 6,967,029 $ 15,198,120 $ 6,302,570

2.53% 2.38% 2.32% 2.31% 2.60% 2.45%

City of Fairfield, California
Changes in Fund Balances of General Fund
(modified accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 6
150
2016 2017 2018 2019
Revenues
Taxes $ 83,549,929 $ 82,907,862 $ 87,533,691 $ 92,089,879 Licenses, permits and fines 3,098,394 2,946,531 2,734,897 3,479,535 Intergovernmental 541,554 457,231 459,490 467,962
Charges for services 5,534,166 6,144,376 7,174,139 6,911,323 Investment income 352,476 97,577 222,858 2,009,675
Net increase (decrease) in fair value of investments
Miscellaneous 1,827,202 1,790,673 2,461,853 2,539,420
Total revenues 94,903,721 94,344,250 100,586,928 107,497,794 Expenditures
Administration / Finance 3,800,333 5,046,385 4,561,503 5,054,525 Police 34,828,205 36,606,605 38,083,461 41,411,882
Fire 16,091,862 17,190,449 18,225,615 20,741,762
Public works 9,380,745 9,758,856 10,717,240 11,878,134
Parks and recreation 4,908,617 5,366,916 5,240,660 5,893,668 Community development 2,619,544 2,937,136 2,739,788 3,422,777 Non-departmental* 4,801,029 3,817,702 5,049,006 15,298,522 Capital outlay
Debt Service:

Principal Retirement
Interest
Total expenditures* 76,430,335 80,724,049 84,617,273 103,701,270 Excess (deficiency) of revenues
over (under) expenditures 18,473,386 13,620,201 15,969,655 3,796,524 Other financing sources (uses)
Issuance of Leases
Issuance of Subscription-based IT arrangements
Transfers in 170,632 323,857 255,780 22,257,998
Transfers out (15,249,052) (13,593,257) (14,330,091) (5,886,532) Total other financing sources (uses) (15,078,420) (13,269,400) (14,074,311) 16,371,466 Net change in fund balances $ 3,394,966 $ 350,801 $ 1,895,344 $ 20,167,990 Source: City of Fairfield
*Includes one-time payment of $10,000,000, $3,000,000 & $4,000,000 towards the Safety Plan's unfunded liability in FY19, FY20 & FY21, respectively.
$0
$50
$100
$150
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$95 $94 $101 $107 $106 $116 $122 $130 $134 $146
Millions
Total General Fund Revenues

151
2020 2021 2022 2023 2024 2025
$ 92,835,821 $ 101,459,155 $ 108,714,444 $ 113,889,872 $ 116,134,532 $ 124,373,369 2,920,083 4,078,924 3,934,657 3,620,409 3,864,615 3,549,162 605,418 573,360 696,958 544,711 1,225,062 1,340,937
6,171,143 6,310,413 7,859,790 6,645,281 5,713,622 8,425,429 2,328,286 1,348,034 827,087 1,507,985 2,852,432 3,483,487 (3,658,668) (111,765) 1,440,376 1,263,813
1,483,304 1,758,025 3,734,139 4,045,243 2,612,957 3,492,430 106,344,055 115,527,911 122,108,407 130,141,736 133,843,596 145,928,627 6,329,656 5,216,172 6,126,829 8,069,528 9,352,763 8,524,535 44,173,273 47,189,271 49,350,555 54,672,405 54,778,631 59,760,202 21,575,867 24,600,363 26,774,174 29,299,880 31,207,998 33,641,379 11,878,627 13,262,014 14,608,124 17,250,475 19,016,224 19,338,920 6,121,707 4,719,771 5,861,144 7,224,619 7,210,383 7,477,556 3,314,942 4,108,255 4,780,518 5,441,017 5,974,141 6,021,816 8,737,622 9,882,129 9,111,044 5,249,441 1,382,593 8,022,382 211,309 7,582,319 272,604
90,519 433,397 915,099 968,621
2,554 19,194 41,774 18,278
102,131,694 108,977,975 116,705,461 127,871,265 137,461,925 144,046,293 4,212,361 6,549,936 5,402,946 2,270,471 (3,618,329) 1,882,334 618,455 7,156,885
200,309 425,434 246,604
811,291 1,248,863 18,634,072 1,887,753 2,383,200 2,655,000 (3,612,025) (4,623,503) (20,144,289) (3,838,556) (6,355,107) (4,842,347) (2,800,734) (3,374,640) (891,762) (1,750,494) 3,610,412 (1,940,743) $ 1,411,627 $ 3,175,296 $ 4,511,184 $ 519,977 $ (7,917) $ (58,409) $0
$50
$100
$150
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$76 $81 $85
$104 $102 $109* $117* $128* $137 $144
Millions
Total General Fund Expenditures

City of Fairfield, California
Assessed Value and Estimated Actual Value of Taxable Property (accrual basis of accounting)
By Fiscal Year - Last Ten Fiscal Years
Table 7
152
Table 7
Less: Total Taxable Direct
Tax Exempt Tax
Real Property Rate
2016 $ 9,051,091,056 $ 3,337,346,549 $ 539,773,774 $ 604,822,232 $ 12,323,389,147 0.0047000 2017 9,735,211,041 3,537,335,144 558,828,437 569,234,030 13,262,140,592 0.0045000 2018 10,423,395,576 3,708,864,371 565,508,865 550,237,826 14,147,530,986 0.0045000 2019 11,098,766,161 3,916,582,215 621,450,392 633,312,031 15,003,486,737 0.0045000 2020 11,678,069,722 4,152,769,066 603,016,099 455,411,064 15,978,443,823 0.0030000 2021 12,261,971,994 4,215,852,029 585,390,783 916,252,848 16,146,961,958 0.0023000 2022 13,061,441,890 4,383,202,165 676,451,826 347,579,642 17,773,516,239 0.0023000 2023 13,120,057,536 4,388,033,371 655,187,297 618,341,618 17,544,936,586 0.0022000 2024 13,948,263,965 4,479,236,766 664,529,480 817,728,728 18,274,301,483 0.0023000 2025 14,735,979,300 4,725,957,883 969,462,410 867,120,663 19,564,278,930 0.0023000 Source: Solano County Assessor Office (HDL Report) and the City of Fairfield Residential Property
Commercial
Property
Unsecured
Property
Fiscal
Year
Assessed
Value
$8
$10
$12
$14
$16
$18
$20
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$12 $13 $14 $15 $16 $16 $18 $18 $18 $20
Billions
Property Assessed Values

City of Fairfield, California
Property Tax Rates -
Direct And Overlapping Governments
By Fiscal Year - Last Ten Fiscal Years
Table 8
153
Total School Special Total Direct &
Fiscal City Debt County Debt District Debt Overlapping
Year Rate Rate Rate Rate Rates
2016 0.00450 1.00000 0.07677 0.02000 1.10127
2017 0.00450 1.00000 0.13800 0.02000 1.16250
2018 0.00450 1.00000 0.12026 0.02000 1.14476
2019 0.00450 1.00000 0.15266 0.02000 1.17716
2020 0.00300 1.00000 0.09469 0.02000 1.11769
2021 0.00230 1.00000 0.10138 0.02000 1.12368
2022 0.00230 1.00000 0.11154 0.02000 1.13384
2023 0.00220 1.00000 0.10566 0.02000 1.12786
2024 0.00230 1.00000 0.09711 0.02000 1.11941
2025 0.00230 1.00000 0.11022 0.02000 1.13252
Source: Solano County Auditor-Controller's Office
Overlapping Rates

1.08%

1.10%

1.12%

1.14%

1.16%

1.18%

1.20%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

1.10%

1.16%

1.14%

1.18%

1.12% 1.12%

1.13% 1.13%

1.12%

1.13%
Property Tax Rates

City of Fairfield, California
Principal Property Taxpayers
Current Year and Nine Years Ago
Table 9
154
Table 11
% %
Total Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Anheuser Busch Inc $ 346,262,424 1 1.77% 262,281,981 $ 1 2.24% Solano Town Center Owner LLC 202,293,398 2 1.03%
Nova at Green Valley LP 150,295,120 3 0.77%
CSCDA Comm Improvement Authority 143,001,600 4 0.73%
Reep- Industries Standford Court Calif 142,534,800 5 0.73% Northbay Healthcare Group 116,666,506 6 0.60%
Gateway 80 Owner LP 111,551,895 7 0.57%
California Comm Housing Authority 93,228,200 8 0.48% 67,715,178 4 0.58% Tal Green Valley 92,310,000 9 0.47%
Meyer Cookware Industries Inc 91,710,866 10 0.47% 80,780,589 3 0.69% Star-West Solano LLC 177,391,956 2 1.51%
N A Rolling Oaks-88 LP 54,431,476 5 0.46%
CVICH Fairfield 1 LLC 50,746,724 6 0.43%
Jelly Belly Candy Company 49,863,507 7 0.43%
NV NBHW LP 48,387,595 8 0.41%
US Real Estate Limited Partnership 45,435,725 9 0.39%
Amcor Pet Packaging USA Inc 45,236,310 10 0.39%
Total Taxpayers Assessed Value 1,489,854,809 7.62% 882,271,041 7.53% Total City Assessed Value $ 19,564,278,930 100.00% 11,711,917,345 $ 100.00% Source: Solano County Assessor Office (HDL Report)
2025 2016
$0
$100
$200
$300
$400 $346
$202
$150 $143 $143
$117 $112 $93 $92 $92
Millions
Top Ten Property Taxpayers in 2025

City of Fairfield, California
Property Tax Levies and Collections
By Fiscal Year - Last Ten Fiscal Years
Table 10
155
Table
Collections
Ended Levy for Subsequent
December 31 Fiscal Year Amount % of Levy Years Amount % of Levy 2016 $ 28,358,047 $ 28,358,047 100% - $ 26,567,981 100% 2017 29,209,321 29,209,321 100% - 28,358,047 100%
2018 31,333,350 31,333,350 100% - 29,209,321 100%
2019 34,085,030 34,085,030 100% - 31,333,350 100%
2020 35,310,874 35,310,874 100% - 34,085,030 100%
2021 36,853,122 36,853,122 100% - 35,310,874 100%
2022 36,348,069 36,348,069 100% - 36,348,069 100%
2023 38,320,898 38,320,898 100% - 38,320,898 100%
2024 40,744,987 40,744,987 100% - 40,744,987 100%
2025 47,135,699 47,135,699 100% - 47,135,699 100%
Source: Solano County Auditor Controller's Office
Amount Collected Total Collections to Date
In addition to the City's property tax levies for voter-approved debt, Solano County levies property taxes limited to $1 per $100 of assessed valuation for county, city, school and special district operating expenses. This additional property tax levy is distributed to the different governmental agencies under the State mandated alternate method of apportioning taxes (commonly referred to as the "Teeter Plan") whereby all local agencies, including cities, receive from the county 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of the taxes levied.

This method was placed in effect by Solano County in the 1965-66 tax year and remains in effect unless the County Board of Supervisors orders its discontinuance.
12 $-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$27 $28 $29 $31
$34 $35 $36 $38 $41
$47
Millions
Property Tax Levies and Collections

City of Fairfield, California
Ratios of Outstanding City Debt by Type
By Fiscal Year - Last Ten Fiscal Years
Table 11
156
Table 13
General Pension Long Term Utility- Recreational Long Term Total Percentage Fiscal Obligation Obligation Notes Water Revenue Notes Primary of Personal Per Year Bonds Bonds* Payable Leases Subscriptions Bonds* Bonds* Payable Leases Subscriptions Government Income Capita 2016 $ 8,596,798 $ 34,393,699 $ 1,720,288 $ 109,373,969 $ 5,345,045 $ 2,695,000 $ 162,124,799 2.98% 1,322 2017 8,174,908 33,157,119 1,458,454 112,421,409 4,366,157 159,578,047 2.67% 1,253 2018 7,753,018 31,871,329 1,193,251 110,036,098 3,345,834 154,199,530 2.37% 1,188 2019 7,331,128 32,265,539 924,623 107,712,533 2,284,074 150,517,897 2.09% 1,093 2020 6,909,238 30,605,170 652,539 105,333,179 1,854,193 145,354,319 1.84% 951 2021 6,487,348 28,904,801 376,889 102,279,004 1,408,774 139,456,816 1.65% 885 2022 6,065,458 27,144,432 119,155 $ 1,933,883 99,099,101 952,996 135,315,025 1.39% 815 2023 5,643,568 25,329,063 1,583,020 $ 3,231,930 95,787,051 481,679 $ 57,928 132,114,239 1.69% 1,105 2024 5,221,678 23,448,694 7,757,576 4,089,024 92,287,314 $ 203,053 29,254 133,036,593 1.90% 1,106 2025 4,799,788 21,503,325 2,980,893 5,964,692 88,633,602 125,940 410,448 124,418,688 1.60% 1,031 Source: City of Fairfield
* Outstanding debt amounts include unamortized bond discounts and premiums.

See Note 8 of the financial statements for more information on debt.

Governmental Activities Business-type Activities
4%
17%
8%
71%
City Debt Outstanding for Fiscal Year 2025
General Obligation Pension Other Utility

City of Fairfield, California
Ratios of General Bonded Debt Outstanding
By Fiscal Year - Last Ten Fiscal Years
Table 12
157
Table 14
Percentage of
Estimated
General Pension Less: Amounts Total Actual Taxable
Fiscal Obligation Obligation Available in Debt Net Bonded Value of Per Year Bonds Bonds Total Service Fund Debt Property Capita 2016 $ 8,596,798 $ 34,393,699 $ 42,990,497 $ 6,834,676 $ 36,155,821 0.29% 321 2017 8,174,908 33,157,119 41,332,027 719,195 40,612,832 0.31% 356 2018 7,753,018 31,871,329 39,624,347 910,820 38,713,527 0.27% 333 2019 7,331,128 32,265,539 39,596,667 901,478 38,695,189 0.26% 330 2020 6,909,238 30,605,170 37,514,408 1,230,337 36,284,071 0.23% 310 2021 6,487,348 28,904,801 35,392,149 1,176,132 34,216,017 0.21% 290 2022 6,065,458 27,144,432 33,209,890 1,138,281 32,071,609 0.18% 267 2023 5,643,568 25,329,063 30,972,631 1,087,433 29,885,198 0.17% 250 2024 5,221,678 23,448,694 28,670,372 1,028,250 27,642,122 0.15% 230 2025 4,799,788 21,503,325 26,303,113 1,019,984 25,283,129 0.13% 209 Source: City of Fairfield
General Bonded Debt Outstanding
$0
$100
$200
$300
$400
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$321 $356 $333 $330 $310 $290 $267 $250 $230 $209
Per Capita General Bonded Debt

City of Fairfield, California
Direct and Overlapping Governmental Activities Debt
June 30, 2025
Table 13
158
Share of
% Outstanding Overlapping
2024/25 Total Assessed Valuation: $ 19,546,355,602 Applicable (1) Debt 6/30/25 Debt Direct and Overlapping Tax and Assessment Debt
Solano County Community College District 27.159% $ 351,752,581 $ 95,532,483 Fairfield-Suisun Unified School District 77.343% 283,256,931 219,079,408 Fairfield-Suisun Unified School District Community Facilities District #5 85.401% 3,103,919 2,650,778 Fairfield-Suisun Unified School District Community Facilities District #6 100% 219,259 219,259 Travis Unified School District 40% 21,000,000 8,441,160 City of Fairfield Zone of Benefit Obligations 100% 4,799,788 4,799,788 City of Fairfield Community Facilities District No. 3 100% 9,695,000 9,695,000 City of Fairfield Community Facilities District No. 2007-1 100% 13,440,000 13,440,000 City of Fairfield Community Facilities District No. 2016-1 I.A. A 100% 3,555,000 3,555,000 City of Fairfield Community Facilities District No. 2016-1 I.A. B 100% 22,315,000 22,315,000 City of Fairfield Community Facilities District No. 2016-1 I.A. C 100% 22,615,000 22,615,000 City of Fairfield Community Facilities District No. 2019-1 I.A. 1 100% 26,800,000 26,800,000 City of Fairfield Community Facilities District No. 2023-1 I.A. 1 100% 36,500,000 36,500,000 California Municipal Finance Authority
Community Facilities Department No. 2021-16 Fairfield Monte Verde 100% 5,665,000 5,665,000 California Statewide Communities Development Authority 1915 Act Bonds 100% 7,755,695 7,755,695 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: $ 812,473,173 $ 479,063,571 Direct and Overlapping General Fund Debt (2)
Solano County General Fund Obligations 26.445% $ 62,105,000 $ 16,423,667 Travis Unified School District General Fund Obligations 40.196% 22,218,217 8,930,835 Fairfield-Suisun Unified School District Certificates of Participation 77.343% 5,386,156 4,165,815 City of Fairfield Pension Obligations 100% 21,725,000 21,725,000 City of Fairfield Leases 100% 2,980,893 2,980,893
City of Fairfield Subscriptions 100% 5,964,692 5,964,692 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT: 120,379,958 60,190,902 Overlapping Tax Increment Debt (Successor Agencies) 100% $ 6,095,000 $ 6,095,000 Total Direct Debt 35,470,373
Total Overlapping Debt: 509,879,100
Combined Total Debt (3) $ 938,948,131 $ 545,349,473
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) The Government Accounting Standards Board has mandated the inclusion of leases and subscriptions in direct debt for financial reporting purposes.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Sources: California Municipal Statistics, Inc. and City of Fairfield 45%
36%
0% 19%
Total Debt
Solano County School Districts
Successor Agency City of Fairfield
22%
45% 1%
32%
Share of Overlapping Debt
Solano County School Districts
Successor Agency City of Fairfield Page 553 of 968
City of Fairfield, California
People and Places in the City
159 Page 554 of 968
City of Fairfield, California
Legal Debt Margin Information
By Fiscal Year - Last Ten Fiscal Years
Table 14
160
Table 16
2016 2017 2018 2019
Net Assessed Value $ 12,323,389,147 $ 13,262,140,592 $ 14,147,530,986 $ 15,003,486,737 Debt Limit Percentage 15% 15% 15% 15%
Debt Limit 1,848,508,372 1,989,321,089 2,122,129,648 2,250,523,011 Net Amount of Bonded Debt
Applicable to Debt Limit
General Bonded Debt* 42,990,497 41,332,027 39,624,347 39,596,667 Legal Debt Margin $ 1,805,517,875 $ 1,947,989,062 $ 2,082,505,301 $ 2,210,926,344 Source: Solano County Auditor Controller's Office and the City of Fairfield * The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. This includes the City's General and Pension Obligation bonds. $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$1.8 $2.0 $2.1 $2.3 $2.4 $2.4
$2.7 $2.6 $2.7
$2.9
Billions
Debt Limit

161
Table 16
2020 2021 2022 2023 2024 2025
$ 15,978,443,823 $ 16,146,961,958 $ 17,773,516,239 $ 17,544,936,586 $ 18,274,301,483 $ 19,564,278,930 15% 15% 15% 15% 15% 15%
2,396,766,573 2,422,044,294 2,666,027,436 2,631,740,488 2,741,145,222 2,934,641,840 37,514,408 35,392,149 33,209,890 30,972,631 28,670,372 26,303,113 $ 2,359,252,165 $ 2,386,652,145 $ 2,632,817,546 $ 2,600,767,857 $ 2,712,474,850 $ 2,908,338,727 $0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
$43 $41 $40 $40 $38 $35 $33 $31 $29 $26
Millions
General Bonded Debt

City of Fairfield, California
Utility and Golf Debt Pledged Revenue Coverage
By Fiscal Year - Last Ten Fiscal Years
Table 15
162

Net Available Revenues Debt Service
Fiscal
Year
including water
connection fee
excluding water
connection fee Principal Interest
including water
connection fee
excluding water
connection fee
2016 $ 13,010,658 $ 10,239,483 $ 3,110,000 $ 2,355,417 238% 187% 2017 10,756,713 7,774,738 3,145,000 2,323,751 197% 142% 2018 10,902,160 8,798,176 5,360,000 1,827,947 152% 122% 2019 13,148,944 10,165,038 5,455,000 1,734,456 183% 141% 2020 13,608,970 11,840,567 5,675,000 1,516,256 189% 165% 2021 17,282,104 10,890,351 3,793,669 3,950,588 223% 141% 2022 17,481,795 14,249,506 3,663,880 4,083,576 226% 184% 2023 13,885,224 9,263,907 3,548,915 4,195,291 179% 120% 2024 12,259,420 8,666,916 3,163,944 4,675,312 156% 111% 2025 9,136,631 7,247,164 3,015,599 4,822,707 117% 92%
Note: Net Available Revenues for Water Utility includes Operating Revenues, Nonoperating Revenues less expenses (excluding depreciation and interest expense).

Source: City of Fairfield
Coverage
Utility-Water Revenue Bonds

0%
50%
100%
150%
200%
250%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
238%
197%
152%
183% 189%
223% 226%
179%
156%
117%
Water Revenue Bonds Coverage Ratios - All Fees

City of Fairfield, California
Utility and Golf Debt Pledged Revenue Coverage
By Fiscal Year - Last Ten Fiscal Years
Table 15
163
Table 17 – Golf
Recreational Revenue (Golf) Bonds
Net Debt Service
Fiscal
Year
Available
Revenues Principal Interest Coverage
2016 $ 1,479,799 $ 910,000 $ 214,100 132%
2017 1,065,552 945,000 177,000 95%
2018 1,196,996 985,000 138,400 107%
2019 1,355,931 1,025,000 98,200 121%
2020 707,798 415,000 69,400 146%
2021 1,334,899 430,000 54,381 276%
2022 772,899 440,000 40,513 161%
2023 891,300 455,000 25,400 186%
2024 251,234 465,000 8,719 53%
Note: Net Available Revenues for Golf includes all Operating Revenues, Nonoperating Revenues, Transfers In, Advances less Operating Expenses and Nonoperating expense (excluding depreciation and interest expense).

Note: These bonds were paid off in FY 2024, therefore, only 9 years are shown.

Source: City of Fairfield
0%
50%
100%
150%
200%
250%
300%
2016 2017 2018 2019 2020 2021 2022 2023 2024
132%
95% 107%
121%
146%
276%
161%
186%
53%
Golf Bonds Coverage Ratios

City of Fairfield, California
Demographic and Economic Statistics
By Fiscal Year - Last Ten Fiscal Years
Table 16
164
Table 18
Per
Capita
Fiscal Personal Personal Median School Unemployment
Year Population Income Income Age Enrollment Rate
2016 112,637 $ 4,738,976,501 $ 42,073 34.0 26,913 5.3%
2017 114,157 5,080,443,128 44,504 34.0 26,941 5.0%
2018 116,156 5,360,715,556 46,151 34.0 26,526 4.2%
2019 117,149 5,753,890,284 49,116 34.8 26,866 3.9%
2020 116,981 6,043,706,384 51,664 34.8 26,784 13.6%
2021 118,005 6,313,857,525 53,505 34.8 26,138 7.8%
2022 119,897 7,036,515,136 58,688 35.0 25,918 4.0%
2023 119,526 7,822,737,648 65,448 35.3 25,781 4.7%
2024 120,339 7,012,514,547 58,273 35.8 25,756 5.1%
2025 120,720 7,788,130,080 64,514 36.8 25,846 5.6%
Source:

City of Fairfield `
Fairfield-Suisun and Travis Unified School Districts
California Department of Finance
U.S. Dept. of Commerce Bureau of Economic Analysis
0%
5%
10%
15%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
5% 5% 4% 4%
14%
8%
4% 5% 5% 6%
Unemployment Rate

City of Fairfield, California
Principal Employers
Current Year and Nine Years Ago
Table 17
165
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment Travis Air Force Base 13,414 1 25% 13,414 1 27%
County of Solano 2,633 2 5% 2,518 3 5%
Fairfield-Suisun Unified School District 2,213 3 4% 2,707 2 5% North Bay Medical Center 1,969 4 4% 1,982 4 4%
Solano Community College 750 5 1% 867 5 2%
Partnership Health 561 6 1% 435 9 1%
City of Fairfield 553 7 1% 535 6 1%
Jelly Belly Candy Company 489 8 1% 461 8 1%
Sutter Regional Medical Foundation 475 9 1% 475 7 1%
Westamerica Bancorporation 418 10 1% 418 10 1%
Source: City of Fairfield
2025 2016
19

City of Fairfield, California
Full-time Authorized City Government Employees by Function By Fiscal Year - Last Ten Fiscal Years
As of June 30
Table 18
166
Table 20
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
Administration / Finance 52 52 54 58 64 64 73 75 73 72
Community development 21 21 21 23 24 27 27 27 27 27
Parks and recreation 21 22 22 22 23 24 26 26 25 25
Fire 65 71 71 69 69 73 79 79 79 78
Housing services 10 10 10 9 7 10 11 11 11 11
Police 192 192 194 191 198 198 202 202 197 188
Public works 95 95 102 112 113 116 117 118 118 112
Transportation 10 10 7 7 6 6 8 7 7 6
Water utility 68 68 67 67 67 67 67 68 70 80
Total 534 541 548 558 571 585 610 613 607 599
Source: City of Fairfield
400
450
500
550
600
650
700
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
534 541 548 558 571 585
610 613 607 599
Total Authorized Full-Time Employees

City of Fairfield, California
Operating Indicators by Function
By Fiscal Year – Last Ten Fiscal Years
As of June 30
Table 19
167
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police
Physical arrests 5,022 4,621 4,775 4,620 3,604 3,578 3,701 3,525 3,708 3,698 Parking citations 1,736 1,831 2,098 1,620 2,918 2,340 1,419 790 1,451 1,296 Fire
Number of emergency calls 12,493 12,582 12,735 13,459 14,020 14,133 15,773 16,126 16,654 17,291 Inspections 173 64 694 912 1,588 1,111 1,718 1,556 1,611 1,292 Public works:

Street resurfacing (miles) 34 35 25 30 8 33 25 6 - 3
Parks and recreation
Number of recreation classes 87 123 135 144 177 35 90 113 153 173 Number of facility rentals 8 8 8 8 8 7 7 7 7 7
Community development
Number of businesses 3,234 3,054 3,865 4,439 5,009 4,803 5,930 6,700 7,301 7,491 New commercial square footage 560,540 1,019,667 15,466 19,982 11,678 750,705 779,752 411,405 784,365 Water
New connections 362 484 277 323 130 391 377 405 378 180 Average daily consumption (millions gallons) 14 14 15 15 16 17 16 15 15 15 Transportation
Total miles covered by bus system 1,811,452 1,869,950 1,877,780 1,943,461 1,725,451 1,322,050 1,430,711 571,103 345,664 316,883 Total passengers 1,027,427 992,616 963,958 883,122 678,475 304,107 355,878 261,608 184,144 181,586 Golf courses
100,506 97,473 101,504 102,002 94,983 141,848 132,768 121,996 121,482 121,036 Sources: Various City Departments
Golf rounds played

City of Fairfield, California
Capital Asset Statistics by Function
By Fiscal Year – Last Ten Fiscal Years
As of June 30
Table 20
168
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol cars 127 130 99 102 103 101 113 113 106 116
Fire
Fire stations 5 5 5 5 5 5 5 5 5 5
Public works
Streets (miles) 298 298 300 301 303 306 309 311 314 317 Streetlights 9,412 9,412 9,493 9,508 9,620 9,841 9,967 9,995 10,077 10,134 Traffic signals 101 101 104 104 105 107 107 107 107 110 Parks and recreation
Parks acreage 281 281 281 281 281 281 281 281 281 281
Parks 24 24 24 24 24 27 27 27 27 27
Golf courses 2 2 2 2 2 2 2 2 2 2
Tennis courts 8 8 8 8 8 10 5 5 5 5
Community centers 5 5 5 5 5 5 5 5 5 5
Water
Water mains (miles) 368 377 413 426 429 435 439 438 441 467 Fire hydrants 3,176 3,134 3,266 3,331 3,362 3,399 3,450 3,455 3,482 3,499 Maximum daily capacity 57 57 57 57 57 57 57 57 57 57
(millions of gallons)
Transportation
48 48 48 48 48 48 42 27 26 22
Sources: Various City Departments.

Note: No capital asset indicators are available for the General Government function.

Number of buses

Federal Expenditures
Federal Grantor/Pass-Through Grantor/ CFDA Grantor's to Program Title Number Number Expenditures Subrecipients
U.S. Department of Defense
Passed through the Office of Local Defense Community Cooperation: Community Economic Adjustment Assistance for Responding to Threats to the Resilience of a Military Installation 12.003 MIR1973-24-02 441,966 Total U.S. Department of Defense 441,966 -
U.S. Department of Housing and Urban Development
Direct Programs:

CDBG-Entitlement Grants Cluster:

Community Development Block Grant/Entitlement Grants 14.218 B24MC060027 113,082 19,132 Community Development Block Grant/Entitlement Grants 14.218 B23MC060027 33,506 14,374 Community Development Block Grant/Entitlement Grants 14.218 Program Income 258,399 54,134 COVID-19 Community Development Block Grant 14.218 B20MW060027 - - Subtotal CDBG-Entitlement Grants Cluster 404,987 87,640 Passed through the California Department of Housing and Community Development:

Home Investment Partnerships Program 14.239 Program Income 23,467 Subtotal HOME Investment Partnerships Program 23,467 -
Housing Voucher Cluster:

Section 8 Housing Choice Vouchers 14.871 N/A 11,559,542 Subtotal Housing Voucher Cluster - 11,559,542
Total U.S. Department of Housing and Urban Development 87,640 11,987,996 U.S. Department of Justice
Direct Programs:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-DJ-BX-0341 3,859 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-22-GG-02136-JAGX 17,666 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-24-GG-05245-JAGX 35,239 Total U.S. Department of Justice 56,764 -
U.S. Department of Transportation
Direct Programs:

Federal Transit Cluster:

Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 CA-2025-283-00 215,832 Federal Transit Capital Investment Grants 20.500 CA-2024-180-00 59,498 Federal Transit Formula Grant 20.507 CA-2022-188-00 1,210,487 Federal Transit Formula Grant 20.507 CA-2024-059-00 1,234,919 Federal Transit Formula Grant 20.507 CA-2025-155-01 1,200,412 Federal Transit Formula Grant 20.507 CA-2026-??? 875,221 Subtotal Federal Transit Cluster 4,796,369 -
Passed through the California Department of Transportation:

Highway Planning and Construction Cluster:

Highway Planning and Construction 20.205 STPCML-5132 (049) 553,745 Highway Planning and Construction 20.205 HSIPL-5132 (52) 185,373 Highway Planning and Construction 20.205 HSIPL-5132 (55) 616,599 Subtotal Highway Planning and Construction Cluster 1,355,717 - Passed through the California Office of Traffic Safety:

Highway Safety Cluster:

State and Community Highway Safety 20.600 PT24068 72,074 State and Community Highway Safety 20.600 PT25159 202,979 Subtotal Highway Safety Cluster 275,053 -
Total U.S. Department of Transportation 6,427,139 -
U.S. Department of the Treasury
Passed through from Solano County:

Coronavirus State and Local Fiscal Recovery Funds 21.027 SLFRP1180 800,000 Total U.S. Department of Treasury 800,000 -
U.S. Department of Homeland Security
Direct Programs:

Staffing for Adequate Fire & Emergency Response 97.083 EMW-2020-FF-00816 807,174 Subtotal Staffing for Adequate Fire & Emergency Response 807,174 - Passed through the Solano County Emergency Food and Shelter Program Local Board:

Emergency Food and Shelter National Board Program 97.024 41-0902-00 13,920 Subtotal Emergency Food and Shelter National Board Program 13,920 - Total U.S. Department of Homeland Security 821,094 -
Total Federal Expenditures $ 20,534,959 $ 87,640
City of Fairfield, California
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2025
Printed on 12/12/2025 at 8:22 AM
Draft 12-12-2025

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
December 16, 2025
To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (the “City”) for the year ended June 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 1, 2025. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City implemented the following accounting standards:

New Accounting Standards
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Implementation of this Statement had a moderate effect on the financial statements.

GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures.

The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. Implementation of this Statement did not have a material effect on the financial statements.

No other new accounting policies were adopted and the application of existing policies was not changed during 2025.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of the investment fair market value is based on information provided by the State of California for its investment in the Local Agency Investment Fund, Negotiable CDs, and by the Medium-Term Notes, Supranationals, CAPM, the trustee for the City’s investments in U.S.

Treasuries and U.S. Government Agencies. We evaluated the key factors and assumptions used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups.

We evaluated the key factors and assumptions used to develop the depreciation and amortization on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net pension liability is based on the actuarial valuation on total pension liability and based on audited financial statements on fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of the net other postemployment benefits (“OPEB”) liability is based on the actuarial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole.  Management’s estimate of compensated absences is based on the City’s adopted methodology, consistent with the provisions of GASB 101. We evaluated the key factors and assumptions used to estimate the compensated absences determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure(s) affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 9 – Leases
 Note 14 – Retirement Plans
 Note 17 – Commitment and Contingent Liabilities
 Note 22 – Subsequent Event
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 16, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Financial Statement Disclosures
The City’s disclosure of the defined benefit pension plans, net pension liability and related deferred inflows of resources and deferred outflows of resources in Note 14 to the financial statements. The valuation of the net pension liability and related deferred outflows/inflows of resources are sensitive to the underlying actuarial assumptions used, including, but not limited to, the investment rate of return and discount rate. As disclosed in Note 14, a 1% increase or decrease in the discount rate has a material effect on the City’s net pension liability.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis (“MD&A”), the Schedules of Changes in the Net Pension Liability and Related Ratios, and the Schedules of Contributions - Pensions, Schedule of Changes in the Net OPEB Liability and Related Ratios, and Schedule of Contributions – Net OPEB Liability, and Budgetary Comparison Schedules, which are Required Supplementary Information (“RSI”) that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on combining statements and individual fund statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Restriction on Use
This information is intended solely for the information and use of the Honorable Mayor and Members of the City Council and management of the City of Fairfield and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Santa Ana, California

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 16, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

To the Honorable Mayor and the Members of the City Council of the City of Fairfield
Fairfield, California

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
December 16, 2025

Table of Contents
A Message to Our Readers ............................................................................... 1 City Council and Elected Officials ..................................................................... .2 Management Leadership Team ........................................................................ 2 City and Government Profile ......................................................................... 3-4 City and Demographic Information .................................................................. 5 Major Employers and Trends ........................................................................... .5 Economic Summary ....................................................................................... 6-7 Government-Wide Financial Analysis ......................................................... 8-10 Summary Entity Financial Statements ............................................................ 11 Financial Overview & Long-Term Outlook for the City's General Fund ..... 12-13 Major Revenue Resources ............................................................................... 14 Financial Overview & Long-Term Outlook for the City's Other Funds ...... .15-17 Cash and Investments ............................................................................... 18-19 Long-Term City Bonded Debt and Obligations ............................................... 20 Capita I Assets .................................................................................................. 21 Capital Improvement Plan .............................................................................. 22 For additional details regarding information contained in this PAFR, you can review the City's most current ACFR and the operating budget and Capital Improvement Plan at:
httRs://www. fa i rfield .ca .gilldgovern ment/citv.-de Ra rtments/fi na nce/fi na ncia I-re RO rts

Financial Overview & Long-Term Outlook
for the City's Other Funds
Financial Long Term Outlook - Other Funds
Water Funds
The City has not implemented a water rate
increase since 2021, resulting in a second
consecutive year of operating deficits in
the Water Utility Fund. In FY 2025,
operating expenses exceeded revenues by
$4.25 million, and the fund continued to
rely on reserves to maintain service levels.

The Water Master Plan was adopted earlier
this year and approved by City Council in
which the new rates are scheduled to take a;;..._.-
effect on January 1, 2026. The proposed rate structure is designed to restore financial sustainability while supporting critical infrastructure investments. Capital needs, such as reservoir mixing improvements, high-lift pump upgrades, and GIS integration-are being addressed through reserve funding in the interim.

The City has also launched a robust public outreach campaign to ensure transparency and community engagement throughout the Prop 218 process.

Looking ahead, the City remains committed to balancing affordability with long-term water system reliability, especially in light of inflationary pressures, regulatory mandates, and climate-related risks. 15 Golf Funds
In January 2024, the City transitioned golf course
operations to a new operator. Although the transition
incurred substantial one-time costs primarily related
to contractual changes, staffing, and operational
setup, the golf course enterprise funds remain selfsufficient and continue to operate without support from the General Fund. Looking ahead, the golf
courses face several deferred capital improvement
needs, including maintenance of aging infrastructure,
equipment replacement, and facility upgrades. These
capital expenditures will be addressed incrementally
as revenues allow and as part of long-term planning
efforts to ensure the course remains financially stable and competitive as a recreational asset for the
community.

City of Fairfield
Fairfield, California
Independent Accountant’s Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ended June 30, 2025

4660 La Jolla Village Drive, Suite 100
San Diego, California 92122
INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Fairfield
Fairfield, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Fairfield, California (the “City”) for the year ended June 30, 2025. The City’s management is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreedupon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2025, and compared the limit and annual calculation factors that were adopted by resolution of the City Council. We also compared that the population and inflation options included in the aforementioned worksheets were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

To the Honorable Mayor and Members of City Council
of the City of Fairfield
Fairfield, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than those specified parties. However, this report is a matter of public record and its distribution is not limited.

San Diego, California
August 21, 2025

City of Fairfield
Appropriations Limit Schedule
For the Year Ended June 30, 2025
See accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit from FY 2023-2024 310,476,000 $ B. Adjustment Factors:
1) Growth in City Population 1.0032 State Department of Finance 2) California per Capita Personal Income Growth 1.0362 State Department of Finance 3) Adjustment Factor 1.0395 B1*B2
C. Annual Adjustment Increase 12,264,000 A * (B3 - 1)
D. Other Adjustments:
1) Loss reponsibility (-) – N/A
2) Transfer to private (-) – N/A
3) Transfer to fees (-) – N/A
4) Assumed responsibility (-) – N/A
E. Total Adjustments 12,264,000 (C+D)
F. Appropriations Limit FY 2024-2025 322,740,000 $ (A+E) Prior Year appropriations
limit adopted by the City

City of Fairfield
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2025
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIII-B, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the County where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2025, represents the annual percentage change in population for the County of Solano.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2025, represents the percentage change in California per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ended June 30, 2025.

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
ORDINANCE 2012-20 (MEASURE P TRANSACTIONS AND USE TAX)
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
Fairfield, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (the “City”) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 16, 2025.

In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 2012-20 approved by the City Council on November 6, 2012, insofar as they relate to the collection, management and expenditure of Measure P sales taxes in the City’s general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above-referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.

This report is intended solely for the information and use of the City Council, Audit Committee and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
December 16, 2025

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
ORDINANCE 1994-08 AND 2002-27 (UTILITY USERS TAX)
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
Fairfield, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California, (the “City”) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 16, 2025.

In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of Ordinance 1994-08 approved by the City Council on May 17, 1994, and Ordinance 2002-27 approved by the City Council on November 5, 2002, insofar as they relate to the collection of utility users taxes in the City’s general fund. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above-referenced terms, provisions, or conditions of the Ordinance, insofar as they relate to accounting matters.

This report is intended solely for the information and use of the City Council, Audit Committee and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
December 16, 2025

City of Fairfield, California
TransportaƟon Enterprise and
Capital Projects Funds
Annual Financial Report
With Independent Auditor’s Reports on the Financial Statements and on Compliance Thereon
For the Years Ended June 30, 2025 and 2024

City of Fairfield, California
Transportation Enterprise Fund & Capital Projects Fund
Annual Financial Report
For the Years Ended June 30, 2025 and 2024
Table of Contents
i
PAGE
Table of Contents i
City Council and Elected Officials ii
Management Leadership Team ii
Independent Auditor’s Report 1
Basic Financial Statements:

Transportation Enterprise Fund:

Statements of Net Position 5
Statements of Revenues, Expenses and Changes in Net Position 6 Statements of Cash Flows 7
Transportation Capital Projects Fund:

Balance Sheets 8
Statements of Revenues, Expenditures and Changes in Fund Balance 9 Notes to the Financial Statements 10
Required Supplementary Schedule (unaudited):

Transportation Enterprise Fund:

Schedule of the Transportation Enterprise Fund’s Proportionate Share of the City’s Miscellaneous Plan Net Pension Liability 23 Transportation Enterprise Fund:

Schedule of the Contributions 24
Supplementary Schedule (unaudited):

Transportation Enterprise Fund:

Schedules of Operating Expenses by Function 25
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on Audit of Financial Statement Performed in Accordance with Government Auditing Standards, the Transportation Development Act, California Government Code 8879.55, and Senate Bill 88 (2007) 28

Pam Bertani
Vice-Mayor
District 4
Manveer Sandhu
Councilmember
District 6
Scott Tonnesen
Councilmember
District 2
Catherine Moy
Mayor
Doug Carr
Councilmember
District 3
K. Patrice Williams
Councilmember
District 1
Doriss Panduro
Councilmember
District 5
Karen L. Rees
City Clerk
Arvinda Krishnan
City Treasurer
City Council and Elected Officials
David Gassaway
City Manager
John Sturdee
Fire Chief
Naveed Ashraf
Director of Information Technology
Dave Zellers
Director of Community & Economic
Development
LaTanna Jones
Director of Housing
Kristina Kaunzinger
Director of Parks & Recreation
David Lim
City Attorney
Sanjay Mishra
Director of Public Works
John Furtado
Director of Finance
Dan Marshall
Police Chief
Farbod Pirouzmand
Assistant City Manager/
Director of Human
Resources
Management Leadership Team
ii

iii Page 605 of 968
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Fairfield, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program (TDA Program)’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund and do not purport to, and do not, present fairly the financial position of the City as a whole, as of June 30, 2025 and 2024, the changes in its financial position, or, where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 1

To the City Council
City of Fairfield, California

2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Program’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audits.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the schedule of the Transportation Enterprise Fund’s proportionate share of the City’s net pension liability and schedule of contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the management’s discussion and analysis that the accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by the missing information.

To the City Council
City of Fairfield, California

3 Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Prior Year Financial Statements
The financial statements of the TDA Program as of and for the year ended June 30, 2024, were audited by other auditors, whose report, dated December 12, 2024, expressed unmodified opinions on those statements. We were not engaged to audit, review, or perform any procedures on the financial statements of the TDA Program for the year ended June 30, 2024, and, accordingly, we do not express an opinion or provide any assurance on them. The comparative information presented for the year ended June 30, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2025, on our consideration of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Santa Ana, California
December 16, 2025

4

City of Fairfield
Transportation Enterprise Fund
Statements of Net Position
June 30, 2025 and 2024
The notes to the financial statements are an integral part of these statements 5 2025 2024
Assets:

Current Assets
Cash and cash equivalents (Note 1) $ 204,037 $ -
Accounts receivable:

California Department of Transportation - 647,832
Metropolitan Transportation Commission 1,353,797 7,323,346 Federal Transit Administration 2,385,150 2,315,458
Interest and other receivables 74,983 47,277
Total current assets 4,017,967 10,333,913
Noncurrent Assets
Capital assets (Notes 1 and 2):

Construction in progress 1,456,824 -
Buildings and improvements 5,413,858 5,413,858
Equipment 25,288,568 26,768,970
Subscription software 517,245 89,649
Less: accumulated depreciation and amortization (22,774,078) (24,498,251) Total capital assets 9,902,417 7,774,226
Total noncurrent assets 9,902,417 7,774,226
Total assets 13,920,384 18,108,139
Deferred Outflows of Resources:

Deferred outflows related to pensions (Notes 1 and 8) 522,355 758,167 Total deferred outflow of resources 522,355 758,167
Liabilities:

Current Liabilities
Accounts payable and other current liabilities 1,033,094 1,417,157 Due to the City of Fairfield (Note 3) 1,124,382 6,304,012 Unearned revenue (Note 4) 75,483 -
Due to Metropolitan Transportation Commission (Note 3) 2,471,979 2,485,926 Compensated absences (Note 5) 6,815 6,341
Subscriptions - due within one year (Notes 5 and 6) 94,133 29,254 Total current liabilities 4,805,886 10,242,690
Noncurrent Liabilities
Compensated absences (Note 5) 129,492 120,477
Net pension liability (Notes 5 and 8) 2,630,141 3,000,009 Subscriptions - due in more than one year (Notes 5 and 6) 316,315 - Total noncurrent liabilities 3,075,948 3,120,486
Total liabilities 7,881,834 13,363,176
Deferred Inflows of Resources:

Deferred inflows related to pensions (Notes 1 and 8) 376,843 339,084 Total deferred inflow of resources 376,843 339,084
Net Position:

Net investment in capital assets 9,491,969 7,744,972
Unrestricted (3,307,907) (2,580,926)
Total net position (deficit) $ 6,184,062 $ 5,164,046

City of Fairfield
Transportation Enterprise Fund
Statements of Revenues, Expenses, and Changes in Net Position For the Years Ended June 30, 2025 and 2024
The notes to the financial statements are an integral part of these statements 6 2025 2024
Operating Revenues:

Charges for services 321,170 $ 397,710 $
Miscellaneous 58,288 50,979
Total operating revenues 448,689 379,458
Operating Expenses:

Operations 8,240,679 6,334,620
Vehicle maintenance 630,751 2,223,606
General and administrative 2,022,863 2,080,101
Depreciation and amortization 688,237 563,456
Total operating expenses 11,201,783 11,582,530
Operating income (loss) (11,203,072) (10,753,094)
Nonoperating Revenues (Expenses):

Investment income 31,031 -
Net increase in fair value of investments 5,101 -
Interest expense (1,172) -
Local Transportation Funds 7,660,681 7,030,879
State Transit Assistance Funds 170,416 328,636
Federal Transit Administration 3,585,883 3,658,810
Gain (loss) on disposition of capital assets (Note 2) (33,369) 190 Other revenue (expense) (685,501) (919,113)
Total nonoperating revenues (expenses) 10,098,230 10,734,242 Income (loss) before capital contributions (654,864) (468,830) Capital Contributions:

Local Transportation Funds 1,518,469 1,816,068
State Transit Assistance Funds - 29,107
California Department of Transportation Funds 5,705 1,469,827 Federal Transit Administration - 2,980,507
Total contributions 6,295,509 1,524,174
Transfers Out:

Transfers out for City's pension obligation debt service (35,328) (35,863) Total transfers out (35,863) (35,328)
Change in net position 5,604,782 1,020,016
Net Position (Deficit):

Beginning of year 5,164,046 (440,736)
End of year $ 5,164,046 6,184,062 $

City of Fairfield
Transportation Enterprise Fund
Statements of Cash Flows
For the Years Ended June 30, 2025 and 2024
The notes to the financial statements are an integral part of these statements 7 2025 2024
Cash Flows from Operating Activities:

Receipts from customers and users 367,034 $ 604,461 $
Payments to suppliers (6,791,361) (5,000,147)
Payments to employees (942,616) (1,095,198)
Payments for interfund services used (3,688,027) (3,522,000) Net cash provided by (used for) operating activities (9,012,884) (11,054,970) Cash Flows from Noncapital Financing Activities:

Grants 4,647,828 16,652,155
Proceeds from interfund loan 1,124,382 6,304,012
Repayment of interfund loan (6,304,012) (74,404)
Cash paid to other funds (35,328) (35,863)
Net cash provided by (used for) noncapital
financing activities 10,841,573 11,437,197
Cash Flows from Capital and Related
Financing Activities:

Proceeds from sale of capital assets 4,400 190
Purchases of capital assets (2,320,184) (5,802,264)
Capital contributions 2,242,296 4,000,066
Cash paid for subscription liabilities-principal portion (136,051) (28,674) Cash paid for subscription liabilities-interest portion - (1,172) Net cash provided by (used for) capital and
related financing activities (1,831,854) (209,539)
Cash Flows from Investing Activities:

Investment income paid 31,349 -
Net cash provided by (used for) investing activities - 31,349 Net increase (decrease) in cash and cash equivalents (3,165) 204,037 Cash and Cash Equivalents:

Beginning of year 3,165 -
End of year $ - 204,037 $
Reconciliation of Operating Income (Loss) to net
Cash Provided by Operating Activities:

Operating income (loss) (11,203,072) $ (10,753,094) $
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation and amortization expense 688,237 563,456
Pension expense 195,299 417,049
(Increase) decrease in accounts receivable (12,424) 155,772 (Increase) in deferred outflows related to pensions (291,596) (261,104) Increase (decrease) in accounts payable (440,903) 908,400 Increase (decrease) in compensated absences 9,489 (43,363) Total adjustments 148,102 1,740,210
Net cash provided by (used for) operating activities $ (9,012,884) (11,054,970) $

City of Fairfield
Transportation Capital Projects Fund
Balance Sheets
June 30, 2025 and 2024
The notes to the financial statements are an integral part of these statements 8 2025 2024
Assets:

Accounts receivable 1,210,487 $ - $
Total assets $ - 1,210,487 $
Liabilities and Fund Balance:

Liabilities:

Due to the City of Fairfield (Note 3) 1,210,487 $ - $
Total liabilities 1,210,487 -
Fund Balance:

Unassigned - -
Total liabilities and fund balance $ - 1,210,487 $

City of Fairfield
Transportation Capital Projects Fund
Statements of Revenues, Expenditures, and Changes in Fund Balance For the Years Ended June 30, 2025 and 2024
The notes to the financial statements are an integral part of these statements 9 2025 2024
Revenues:

Federal Transit Administration 1,210,487 $ - $
Total revenues - 1,210,487
Expenditures:

Capital outlay 1,210,487 -
Total expenditures - 1,210,487
Net change in fund balance
Fund Balance:

Beginning of year - -
End of year $ - - $

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
10 Note 1 Summary of Significant Accounting Policies ............................................................................ 11 Note 2 Capital Assets ................................................................................................................... 15 Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield ..................................... 16 Note 4 Unearned Revenue ............................................................................................................ 16 Note 5 Long Term Obligations ........................................................................................................ 16 Note 6 Subscription-based Information Technology Agreements (SBITAs) ............................................... 17 Note 7 Fare Revenue Ratio ............................................................................................................ 17 Note 8 Pension Plan..................................................................................................................... 22 Note 9 Contingent Liabilities .......................................................................................................... 23 Note 10 Risk Management .............................................................................................................. 23

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
11 Note 1 Summary of Significant Accounting Policies
A. Organization and Reporting Entity
Transportation Enterprise Fund - This fund is used to account for the operations and management of the City of Fairfield’s (City) transit operations, which are primarily supported by TDA and FTA funding.

The Transportation Enterprise Fund has provided transit services in the City since August 1975, when the demand responsive Dial-A-Ride Transit (DART) service was initiated with a fleet of small vans. Fixed route service was initiated in 1980 and consolidated with Suisun City’s transit system from 1989 to 2022, operating as Fairfield and Suisun Transit (FAST). Suisun City chose to implement their own microtransit service beginning in 2023. Today, the City’s transit system only services the City of Fairfield and is still known as FAST.

FAST is responsible for operating the following programs:
• Five general public fixed routes (“FAST”)
• Two on-demand microtransit zones (“FAST Connect”)
• Americans with Disabilities Act (ADA) paratransit service for residents living within Fairfield City limits (“FAST Connect ADA”)
• Local Reduced Fare Taxi Program for residents 60 years and older living within Fairfield City limits • FAST participates in an Intercity Taxi Program for ADA-certified residents of Solano County that is administered by the Solano Transportation Authority
FAST also operated an intercity Solano Express routes under a contract with the Solano Transportation Authority (STA), originally implemented in July 2018. The Blue Line provided service between Sacramento and the Pleasant Hill BART station. In September 2021, the STA Board moved to a single operator for all Solano Express lines, and Solano County Transit (SolTrans) was decided as the sole operator. FAST ceased operating the Blue Line in August 2022 during FY 2022-2023.

Transportation Capital Projects Fund - This fund is used to account for transportation capital projects, which allocate TDA, FTA, and State and Regional funding towards capital improvement projects.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Basis of Accounting - The Transportation Enterprise Fund, a proprietary fund, is accounted for using the full accrual basis of accounting. Under this method of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

The Transportation Capital Projects Fund is accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available to finance expenditures of the current period and expenditures are generally recognized when the related fund liabilities are incurred. Revenues are considered to be available if they are received within 90 days after year-end, except for grants, which is one year. Revenue from grants are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Annual Financial Statements - The financial statements of the Transportation Enterprise Fund are intended to reflect only the financial position of the transit operations, results of its operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (GAAP). The financial statements of

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
12 Note 1 Summary of Significant Accounting Policies (continued) The Transportation Capital Projects fund are intended to reflect only the financial position and results of construction projects. Both financial statements are not intended to represent the financial position of the City as a whole. The City applies all applicable GASB pronouncements to these financial statements. In addition to the Transportation Development Act (TDA), the City participates in a number of federally assisted grant programs through the Federal Transit Administration (FTA). These federally assisted programs are subject to the reporting requirements under the Single Audit Act in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and a separate report is prepared.

Net Position - The net position of the Transportation Enterprise Fund consists of the net capital assets it currently uses for day-to-day operations of the transit system. All restricted funding from other agencies are applied first, before the City’s local funding source is utilized.

Statement of Cash Flows - For purposes of the cash flow statement, the City considers all pooled cash and investments of the Transportation Enterprise Fund as cash and cash equivalents.

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents - The cash is held by the City as part of its pooled cash and investments. The pooled funds are invested in accordance with the City's investment policy established pursuant to state law. All monies not required for immediate expenses are invested or deposited to earn maximum yield consistent with safety and liquidity. Interest income is allocated to the fund based on its proportionate share of the pool. Refer to the City's Annual Comprehensive Financial Report for disclosures of cash and investments and related risk categorization.

Capital Assets - Capital assets capitalized in the Transportation Enterprise Fund are valued at historical cost (except for right-to-use subscription assets, the measurement of which is discussed in Note 7). Depreciation is computed using the straight line method over the estimated useful lives of thirty years for buildings, ten years for building improvements and five to twelve years for equipment.

Deferred Outflows/Inflows of Resources - In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Amounts reported as deferred outflows of resources and deferred inflows of resources are related to the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Pension Plan and will be recognized in pension expense in future periods.

Long Term Obligations Compensated Absences - The City provides employees with vacation, sick, compensatory time-off and personal leave benefits. A liability for compensated absences is recognized when the leave is earned, and it is more likely than not that the leave will be used or otherwise paid or settled. The liability is measured using employee's pay rate as of the date of the financial statement, including certain salary-related payment directly associated with the leave.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
13 Note 1 Summary of Significant Accounting Policies (continued) Pensions - For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, information about the fiduciary net position of the City of Fairfield’s California Public Employees Retirement System (CalPERS) Miscellaneous Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Refer to the City's Annual Comprehensive Financial Report Note 14 and Note 6 of this report for additional disclosures of pension plans.

Subscription-Based Information Technology Arrangements (SBITAs) - The City determines if an arrangement is a Subscription-Based Information Technology Arrangement (SBITA) at inception.

Right-to-use subscription assets are recognized at the commencement date and represent the City’s right to use the underlying subscription IT asset for the subscription term. Right-to-use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at or before the commencement date of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription IT asset into service. Right-to-use subscription IT assets are amortized in a systematic and rational manner over the shorter of the subscription term or useful life of the underlying asset. City policy has set the capitalization threshold for reporting right-to use subscription IT assets at $50,000.

Subscription Liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on an incremental borrowing rate determined by the City.

The City recognizes payments for short-term Subscription-Based Information Technology Arrangements with a subscription term of 12 months or less as expenses as incurred, and these arrangements are not included as subscription liabilities or right-to-use subscription assets on the statements of net position.

Implementation of New GASB Pronouncements – In fiscal year 2024-2025, the City implemented the following new accounting standards in order to conform to the following Governmental Accounting Standards Board (GASB) Statements:

GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The Statement did not have a material effect on the financial statements.

GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The Statement did not have a material effect on the financial statements.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
14 Note 1 Summary of Significant Accounting Policies (continued) Transportation Development Act (TDA) - The State of California established the TDA to provide funds for public transportation. The TDA created Local Transportation Funds (LTF) around the State for the transportation purposes specified in the Act for various transportation agencies. Revenues of the LTF are derived from a 1/4 of one percent sales tax collected in each county, including Solano County. The City's LTF is administered by Solano County in collaboration with the Metropolitan Transportation Commission (MTC). The City has obtained funds from the LTF for transit operations and capital needs. The TDA projects are administered by the City. Articles of the TDA under which the City operates are:
1) Article 4 - funds operation and capital outlays for the public transportation systems in California. 2) Article 8 - funds service provided to elderly and handicapped persons under a contract between the City and MV Transportation.
3) State Transit Assistance Funds – Beginning in 1980, these funds were derived from a statewide sales tax on diesel fuel and the revenue-based funds can be used for the operations and capital needs.

Federal Transit Administration (FTA) - The FTA has awarded operating, capital and planning grants to the City under various sections of the Urban Mass Transportation Act of 1964 and the amended Federal Transit Act of 1993. Sections of the FTA under which the City received funds are:
1) Section 5307 - Federal funds for operating and capital support of public transportation system. 2) Section 5339 - Federal funds to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities.
3) Other competitive grant programs offered by FTA
State and Regional Funding - Below are the other funding sources received to support the operations and capital needs of the public transportation system:
1) The Low Carbon Transit Operations Program (LCTOP) is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 by Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emission and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other costs to operate those services or facilities, with each project reducing greenhouse gas emissions. For agencies whose service area includes disadvantaged communities, at least 50 percent of the total moneys received shall be expended on projects that will benefit disadvantaged communities. Senate Bill 862 continuously appropriates five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for LCTOP, beginning in 2015-16. 2) State Transportation Assistance - State of Good Repair (STA - SGR) - The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), signed by the Governor on April 28, 2017, includes a program that will provide additional revenues for transit infrastructure repair and service improvements. This investment in public transit will be referred to as the State of Good Repair program.

This program provides funding of approximately $105 million annually to the State Transit Assistance (STA) Account. These funds are to be made available for eligible transit maintenance, rehabilitation and capital projects.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
15 Note 2 Capital Assets
Capital assets for the Transportation Enterprise Fund are as follows for the years ended June 30, 2025 and 2024:

Balance Balance
July 1, 2024 Additions Deletions June 30, 2025
Nondepreciable capital assets:

Work in progress 1,456,824 $ 1,456,824 $
Total nondepreciable capital assets - $ 1,456,824 - $ 1,456,824 Assets being depreciated/amortized:

Building and improvements 5,413,858 5,413,858
Communication equipment 1,817,745 232,968 2,050,713
Transportation equipment 24,932,422 657,660 (2,371,030) 23,219,052 Office equipment 18,803 18,803
Subscription software 89,649 517,245 (89,649) 517,245
Total assets being depreciated/amortized 32,272,477 1,407,873 (2,460,679) 31,219,671 Accumulated depreciation/amortization:

Building and improvements (4,508,774) (114,289) (4,623,063) Communication equipment (1,803,839) (11,671) (1,815,510) Transportation equipment (18,111,318) (493,028) 2,339,656 (16,264,690) Office equipment (16,116) (2,687) (18,803)
Subscription software (58,204) (66,562) 72,754 (52,012) Total accumulated depreciation/amortizaton (24,498,251) (688,237) 2,412,410 (22,774,078) Total depreciable/amortizable capital assets, net 7,774,226 719,636 (48,269) 8,445,593 Total net capital assets 7,774,226 $ 2,176,460 $ (48,269) $ 9,902,417 $ Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Assets being depreciated/amortized:

Building and improvements 5,413,858 $ 5,413,858 $
Communication equipment 1,817,745 1,817,745
Transportation equipment 18,636,913 6,295,509 $ 24,932,422 Office equipment 18,803 18,803
Subscription software 89,649 89,649
Total assets being depreciated/amortized 25,976,968 6,295,509 - $ 32,272,477 Accumulated depreciation/amortization:

Building and improvements (4,378,399) (130,375) (4,508,774) Communication equipment (1,801,421) (2,418) (1,803,839) Transportation equipment (17,712,443) (398,875) (18,111,318) Office equipment (13,430) (2,686) (16,116)
Subscription software (29,102) (29,102) (58,204)
Total accumulated depreciation/amortizaton (23,934,795) (563,456) - (24,498,251) Total depreciable/amortizable capital assets, net 2,042,173 5,732,053 - 7,774,226 Total net capital assets 2,042,173 $ 5,732,053 $ - $ 7,774,226 $

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
16 Balance Incurred or Satisfied or Balance Due within More than 7/1/2024 Issued Matured 6/30/2025 One Year One Year
Compensated absences* 126,818 $ 9,489 $ 136,307 $ 6,815 $ 129,492 $ Net pension liability 3,000,009 276,893 646,761 $ 2,630,141 2,630,141 Subscriptions 29,254 517,245 136,051 410,448 94,133 316,315 Total long term obligations 3,156,081 $ 803,627 $ 782,812 $ 3,176,896 $ 100,948 $ 3,075,948 $ Balance Incurred or Satisfied or Balance Due within More than 7/1/2023 Issued Matured 6/30/2024 One Year One Year
Compensated absences* 170,181 $ (43,363) $ 126,818 $ 6,341 $ 120,477 $ Net pension liability 3,479,127 443,610 922,728 $ 3,000,009 3,000,009 Subscriptions 57,928 28,674 29,254 29,254 0
Total long term obligations 3,707,236 $ 400,247 $ 951,402 $ 3,156,081 $ 35,595 $ 3,120,486 $ * The change in the compensated absences liability is presented as a net change.

Note 3 Due to Metropolitan Transportation Commission (MTC) / City of Fairfield The Transportation Enterprise Fund reflects a payable back to MTC as of June 30, 2025 and 2024, in the amount of $2,471,979 and $2,485,926, respectively, to be deposited into the City’s LTF account. This money will be available for future transit operations and capital projects.

The Transportation Enterprise Fund reflects a payable back to the City as of June 30, 2025 and 2024, in the amount of $1,124,382 and $6,304,012, respectively. This is a short-term advance for financial statement purposes due to pending grant receipts, where a one-day, non-interest bearing borrowing from the City of is recorded as of June 30th and repaid the following day. The Transportation Capital Projects Fund reflects a payable back to the City as of June 30, 2025, in the amount of $1,210,487. All capital project expenditures are funded by the City and the City will be reimbursed by the LTF accounts.

Note 4 Unearned Revenue
The City received various funding for certain capital projects which are eligible but have yet to be completed at the end of the fiscal year. Funding includes Low Carbon Transit Operations Program and the State of Transportation – State of Good Repair. As of June 30, 2025, there was unearned revenue of $75,483 for the Transportation Enterprise Fund and as of June 30, 2024, the unearned revenues for the Transportation Enterprise Fund were $0, which was used to fund various equipment and projects, as noted below. 2025 2024
Beginning balance - $ 400,478 $
Additions:

LCTOP 52,700 1,100,094
STA-SGR 20,948 42,664
Interest earned 1,835 19,936
Total additions 75,483 1,162,694
Reductions:

Bus and bus equipment (29,107)
Electric infrastructure (1,534,065)
Total reductions - (1,563,172)
Ending balance 75,483 $ - $
Transportation Enterprise Fund
Note 5 Long Term Obligations
The following is a summary of the long-term obligation transactions of the Transportation Enterprise Fund for the years ended June 30, 2025 and 2024:

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
17 Note 6 Subscription-based Information Technology Agreements (SBITAs) As of year-end June 30, 2025, the City had entered into a subscription for the use of Swiftly software, with a term of five years. As of June 30, 2025 and 2024, the value of the subscription liability outstanding are $410,448 and $29,254, respectively. The City is required to make annual fixed payments, and this subscription has an interest rate of 2.5110%. The right-to-use subscription asset is recognized as a capital asset (see Note 2), and the value of the right-to-use subscription asset as of June 30, 2025 and 2024 are $517,245 and $89,649, with accumulated amortization of $52,012 and $58,204, respectively.

The future principal and interest subscription payments as of June 30, 2025, were as follows:

Fiscal Year Ending Principal Interest Total
2026 94,133 $ 10,306 $ 104,439 $
2027 99,629 7,943 107,572
2028 105,358 5,441 110,799
2029 111,328 2,795 114,123
Totals 410,448 $ 26,485 $ 436,933 $
Note 7 Fare Revenue Ratio
Under the Transportation Development Act, the Transportation Enterprise Fund is required to maintain a ratio of fare revenue to operating expense of at least 20% for the fixed route service and specialized services combined.

The specialized service includes Local Special Fare Assistance, which consists of TDA collected from other local governmental agencies to run the Solano County inter-city taxi program and is included for the purpose of calculating the fare revenue ratio. Due to the impact on fares from the Covid-19 pandemic, the 20% fare revenue ratio requirement was waived for FY 24-25 and FY 23-24 (by Assembly Bill No 125). The calculation of the fare revenue for the fiscal years ended June 30, 2025 and 2024 is as follows:

Fixed Specialized
Route Service Total
Operating income
Passenger fares 232,105 $ 89,065 $ 321,170 $
Miscellaneous 58,288 - 58,288
Total operating income 290,393 $ 89,065 $ 379,458 $
Operating expenses 7,375,254 $ 4,207,276 $ 11,582,530 $ Less: Depreciation/amortization (522,014) (166,223) (688,237) Adjusted operating expenses 6,853,240 $ 4,041,053 $ 10,894,293 $ Fare revenue ratio 4.24% 2.20% 3.48%
Fixed Specialized
Route Service Total
Operating income
Passenger fares 289,957 $ 107,753 $ 397,710 $
Miscellaneous 44,158 6,821 50,979
Total operating income 334,115 $ 114,574 $ 448,689 $
Operating expenses $7,615,155 $3,586,628 11,201,783 $
Less: Depreciation/amortization (491,386) (72,070) (563,456) Adjusted operating expenses 7,123,769 $ 3,514,558 $ 10,638,327 $ Fare revenue ratio 4.69% 3.26% 4.22%
2025
2024

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
18 Note 8 Pension Plan
A. General Information about the Pension Plan
The Transportation Enterprise Fund participates in the City’s Miscellaneous Pension Plan by sharing the costs related to the pension plan with the City for eligible employees. All plan information described below pertains to the overall plan for the City.

Plan Description – The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple-employer system that acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees of the Transportation Enterprise Fund are eligible to participate in the City’s Miscellaneous Plan. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided - CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Classic miscellaneous members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Classic Plan Tier II PEPRA
Hire Date Prior to 8/26/2012 On or After 8/26/2012 On or After 1/1/2013 Formula 2.7% @ 55 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 52-67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 10.50% 10.50% 7.75% Required employer contribution rates 9.280% 9.280% 11.780% Miscellaneous
Contributions - Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the City’s Miscellaneous Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees.

For the year ended June 30, 2025 and 2024, the Transportation Enterprise Fund’s proportionate share of the City’s contribution to the City’s Miscellaneous Plan was $291,596 and $261,104, respectively.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
19 Note 8 Pension Plan (continued)
B. Net Pension Liability
As of June 30, 2025 and 2024, the Transportation Enterprise Fund reported a liability of $2,630,141 and $3,000,009, respectively, for its proportionate share of the City's net pension liability. The June 30, 2025 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2024 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024. The Transportation Enterprise Fund’s proportion of the City's net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2024 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.

The June 30, 2024 net pension liability of the City’s Miscellaneous Plan was measured as of June 30, 2023 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023. The Transportation Enterprise Fund’s proportion of the City's June 30, 2023 net pension liability was based on the Transportation Enterprise Fund’s fiscal year 2023 actual contributions to the City's pension plan relative to the total contribution of the City’s Miscellaneous Plan.

At June 30, 2025 and 2024, the Transportation Enterprise Fund’s proportion of the City’s Miscellaneous Plan was 1.95% and 2.24% respectively.

Actuarial Assumptions - The total pension liability in the June 30, 2023 and 2022 Miscellaneous Plan actuarial valuations were determined using the following actuarial assumptions:
2025 2024
Valuation Date June 30, 2023 June 30, 2022
Measurement Date June 30, 2024 June 30, 2023
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Method Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Payroll Growth 2.80% 2.80%
Projected Salary Increase Varies by entry age and service Varies by entry age and service Mortality (2) Derived using CalPERS’ Derived using CalPERS’ Membership Data for all Funds Membership Data for all Funds (1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study from November 2021 that can be found on the CalPERS website.

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
20 Note 8 Pension Plan (continued)
Discount Rate – As of June 30, 2025 and 2024, the discount rates used to measure the total pension liability were both 6.90% for the City’s Miscellaneous Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

The expected real rates of return by asset class are as followed:

Asset Class
Asummed asset
allocation
Real Return
(1) (2)
Asummed asset
allocation
Real Return
(1) (2)
Global Equity - Cap-weighted 30.0% 4.54% 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84% 12.0% 3.84% Private Equity 13.0% 7.28% 13.0% 7.28%
Treasury 5.0% 0.27% 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50% 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56% 10.0% 1.56%
High Yield 5.0% 2.27% 5.0% 2.27%
Emerging Market Debt 5.0% 2.48% 5.0% 2.48%
Private Debt 5.0% 3.57% 5.0% 3.57%
Real Assets 15.0% 3.21% 15.0% 3.21%
Leverage -5.0% -0.59% -5.0% -0.59%
Total 100% 100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management Study. 2025 2024

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
21 Note 8 Pension Plan (continued)
Sensitivity of the Transportation Enterprise Fund’s proportionate share of the City’s Net Pension Liability to Changes in the Discount Rate - As of June 30, 2025 and 2024, the following presents the net pension liability of the Transportation Enterprise Fund’s proportionate share of the City of Fairfield’s net pension liability as of the measurement date, calculated using the discount rates of 6.90% for both years, as well as what the Transportation Enterprise Fund’s proportionate share of the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

2025 2024
1% Decrease 5.90% 5.90%
Net Pension Liability 3,711,293 $ 4,189,466 $
Current Discount Rate 6.90% 6.90%
Net Pension Liability 2,630,141 $ 3,000,009 $
1% Increase 7.90% 7.90%
Net Pension Liability 1,735,385 $ 2,015,354 $
Pension Plan Fiduciary Net Position- Detailed information about the City’s collective pension plans’ fiduciary net position is available in the separately issued CalPERS financial report.

C. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the years ended June 30, 2025 and 2024, the Transportation Enterprise Fund recognized pension expense of $195,299 and $417,049, respectively. At June 30, 2025 and 2024, the Transportation Enterprise Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date 291,596 $ 261,104 $ Differences between actual and expected experience 148,664 106,105 Changes in assumption 86,574
Change in proportion (376,843) $ 19,798 (339,084) $
Net differences between projected and actual earning on plan investments 82,095 284,586
Total $ (376,843) 522,355 $ 758,167 $ (339,084) $
2025 2024
The amount of $291,596 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. The amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal
Year Ended
2026 (184,487) $
2027 93,078
2028 (24,025)
2029 (30,650)
Total (146,084) $

City of Fairfield
Transportation Enterprise and Capital Projects Funds
Notes to the Financial Statements
For the Years Ended June 30, 2025 and 2024
22 Note 9 Contingent Liabilities
Federal and State grant funds were received by the City to be expended for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to a request for reimbursement for expenditures disallowed under the terms of the grants. The amount, if any, of expenditures that may be disallowed by the granting agencies related to this program cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Note 10 Risk Management
The City is exposed to various risk of torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees and natural disasters. The City is partially self-insured for workers’ compensation insurance with $750,000 retention per occurrence and general liability coverage with $750,000 retention per occurrence and is a member of joint power authorities for the coverage above and beyond the retention levels (see below). The City is completely self-insured for unemployment insurance, short-term disability insurance, other postemployment benefits (OPEB) and dental insurance coverage programs. All funds participate in the City’s risk management program.

For worker’s compensation, the City purchases excess insurance coverage (above and beyond the retention limit of $750,000) from a governmental joint powers authority up to statutory limits per occurrence. This joint power authority is Prism formally known as the California State Association of Counties Excess Insurance Authority, a risk sharing pool of California public agencies, dedicated to controlling losses and providing effective risk management.

For general liability, the City is a member of the California Joint Powers Risk Management Authority (CJPRMA), a joint exercise of powers agency which provides the City with additional $40,000,000 liability coverage over and above the self-insured retention of $750,000. A property insurance policy is purchased by the member entities of CJPRMA. The deductible amount is $250,000. The CJPRMA is a legal entity separate and distinct from its member entities, as permitted by the California Government Code. Please refer to the City’s Annual Comprehensive Financial Report for additional information regarding the City’s self-insured program.

City of Fairfield
Transportation Enterprise Fund Required Supplementary Information Schedule of the Transportation Enterprise Fund’s Proportionate Share Of the City’ Miscellaneous Plan Net Pension Liability
23 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Transportation Enterprise Fund's proportion to the City's net pension liability 2.62% 2.61% 2.76% 2.87% 3.26% 3.14% 2.89% 2.74% 2.24% 1.95% Transportation Enterprise Fund's proportion share of the City's net pension liability 1,737,605 $ 2,061,010 $ 2,394,419 $ 2,434,218 $ 2,657,008 $ 2,892,942 $ 1,873,582 $ 3,479,127 $ 3,000,009 $ 2,630,141 $ Covered payroll (from prior year) 642,096 650,352 661,510 716,042 790,193 953,437 963,306 927,181 960,935 808,914 Transportation Enterprise Fund's proportion share of the City's net pension liability as a percentage of covered payroll - employee payroll 270.61% 316.91% 361.96% 339.95% 336.25% 303.42% 194.50% 375.24% 312.20% 325.14%Miscellaneous Plan fiduciary net position as a percentage of the total pension liability 75.96% 72.24% 71.05% 71.81% 71.32% 70.27% 80.81% 68.19% 67.82% 69.14%Measurement date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024Change of Assumptions - Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

Last Ten Years

City of Fairfield
Transportation Enterprise Fund Required Supplementary Information Schedule of Contributions 24 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Actuarially determined contributions 128,994 $ 145,721 $ 173,526 $ 213,754 $ 295,595 $ 310,676 $ 322,073 $ 345,686 $ 261,104 $ 291,596 $ Contributions in relation to the actuarially determined contributions (128,994) (145,721) (173,526) (213,754) (295,595) (310,676) (322,073) (345,686) (261,104) (291,596)Contributions deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll (from current year) 650,352 $ 661,510 $ 716,042 $ 790,193 $ 953,437 $ 963,306 $ 927,181 $ 960,935 $ 808,914 $ 740,269 $ Contributions as a percentage of covered payroll 19.83% 22.03% 24.23% 27.05% 31.00% 32.25% 34.74% 35.97% 32.28% 39.39% Last Ten Years

City of Fairfield
Transportation Enterprise Fund
Schedules of Operating Expenses by Function
For the Years Ended June 30, 2025 and 2024
25 2025 2024
Operations:

Services $ 2,819,831 $ 1,329,001
Electricity, fuels and lubricants 512,612 556,041
Casualty and liability costs 462,462 365,195
Utilities 245,939 233,513
Purchased transportation 4,166,164 3,834,219
Materials and supplies 1,472 6,012
Miscellaneous 32,199 10,639
Total operations 8,240,679 6,334,620
Vehicle maintenance:

Services 630,751 2,223,606
Total vehicle maintenance 630,751 2,223,606
General and administration:

Salaries 537,063 495,678
Fringe benefits 318,746 450,406
Services 1,160,506 1,128,714
Materials and supplies 4,027 2,892
Miscellaneous 2,521 2,411
Total general and administration 2,022,863 2,080,101
Transfers out:

Transfers out 35,328 35,863
Total transfers out 35,328 35,863
Depreciation and amortization 688,237 563,456
Total operating expenses $ 11,617,858 $ 11,237,646

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, THE TRANSPORTATION DEVELOPMENT ACT, CALIFORNIA GOVERNMENT CODE §8879.55,
STATE SENATE BILL 88 (2007)
Independent Auditor’s Report
To the Board of Directors
of the City of Fairfield
Fairfield, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Transportation Capital Projects Fund and the Transportation Enterprise Fund of the City of Fairfield, California (the City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s Transportation Development Act Article 4 and 8 Program’s (TDA Program) basic financial statements and have issued our report thereon dated December 16, 2025. Our report includes an emphasis of matter paragraph noting that the financial statements present only the Transportation Capital Projects Fund and the Transportation Enterprise Fund and do not purport to and do not present fairly the financial position of the City as of June 30, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
26

To the Board of Directors
of the City of Fairfield
Fairfield, California
27 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable provisions of §6666 and §6667 of Title 21, Chapter 3, Subchapters 2 of the California Code of Regulations, California Government Code §8879.55 (Public Transportation Modernization, Improvement, and Service Enhancement Account), and California State Senate Bill 88 (2007) et seq., noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or §6666 and §6667 of Title 21 of the California Code of Regulations, California Government Code §8879.50 and California State Senate Bill 88(2007), et seq.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
December 16, 2025

TDA Programs
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
28 A. Current Year Findings
No current year findings were reported.

B. Prior Year Findings
Finding 2024-001 Systems Access Reviews
Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria:

Management is responsible for establishing a system of internal controls to prevent individuals having inappropriate access to systems or records within their accounting system. This includes having controls in place to review the systems access granted to individuals to ensure that those individuals are only granted the access they require for their position and assigned responsibilities, removing access when those individuals no longer require it, and reviewing the assigned access for conflicts with segregation of duties.

Condition:

There was no documentation of the review of user access in Tyler to verify the appropriateness of permissions based on their role and job duties. We corroborated with City employees that a review was performed, but there was no documentation of the review and the results of the review.

Cause:

The City’s procedures do not include documenting the results of its periodic review of user access in Tyler.

Effect:

By not reviewing the user access in Tyler, there is an increased risk of individuals having inappropriate access and conflicting segregation of duties which increases the risk of fraud or error occurring within the accounting system and not being identified by management.

Recommendation:

We recommend that management formally document their periodic review of users and their access granted in Tyler to ensure that their current assigned access in appropriate for their position and responsibilities.

Views of Responsible Officials:

The City hired an expert to review all permissions and build a robust workflow model, this review and implementation was completed in November 2024, and while the city has consistently been reviewing permissions in the past there were too many changes made over the course of the first year of implementation to formally document. When the City conducts future periodic reviews, the process will be documented to reflect the outcome of the review.

Status:

Corrective action has been implemented.

Agenda Item No: L.2

AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-10 CD North Texas Street Revitalization Program Approving and Authorizing the Funding and Adoption of the North Texas Street Revitalization Program
Funding Source: $400,000; Intragovernmental Loan Fund
Contact: Dave Zellers, (707) 428-7436

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The City seeks to launch the North Texas Street Revitalization Program (Program), a new grant program designed to support commercial property owners and business owners within the North Texas Street District. The Program will provide financial reimbursement for eligible improvements made to exterior signage, lighting, landscaping, and parking lot conditions to enhance the appearance, safety, and economic vitality of this key commercial corridor. Adoption of the Program is necessary to begin implementation.

DISCUSSION
At the direction of the council during its 2025 Retreat, $400,000 was allocated for use to enhance the North Texas Street business corridor. Two uses for the funds were identified: a pilot project for clean-up services and a grant program for property improvements. The Program, based upon the same principles as the successful downtown façade grant program, is designed to encourage private investment that enhances the visibility, aesthetics, and economic environment of the North Texas Street District. The types of improvements to be funded were identified by direction as being those with the most impact to safety and making tangible improvements to the physical condition of the corridor.

The Program provides reimbursement grants of 50-70% of eligible project costs, with maximum awards ranging from $25,000 to $30,000 depending on applicant type. Eligible improvements include exterior lighting, landscaping, signage, and parking lot repairs. Eligible applicants include commercial property owners and tenants located within the North Texas Street Business Improvement District, subject to program requirements and verification of good standing with applicable City departments.

Applications will be prioritized based on alignment with program goals, including improving exterior aesthetics, enhancing the overall streetscape, and strengthening the district’s business climate. Small independent businesses such as restaurants, retail shops, tasting rooms, incubator spaces, and entertainment venues will receive priority consideration.

The Program will be administered by the Community Development Department’s Economic Development Division. The Program steps include application submittal, staff review, permit approvals, inspection, and reimbursement upon project completion and execution of an improvement deed to ensure upkeep of improvements for a minimum of five years. Approval of proposed resolution will authorize the allocation of funds and formalize the Program, enabling staff to finalize the application and promote the upcoming opportunity to the potential applicants.

Should council approve this allocation, applications for the Program will begin in March 2026.

FINANCIAL IMPACT
Council previously directed use of $400,000 for North Texas from the Intragovernmental Loan Fund (55160199-8411-10603), which was created when a public works project was canceled. The $400,000 will be allocated to the North Texas Street Revitalization Program with $372,274 allocated for grants and the remaining $27,274 allocated for a pilot cleaning program to support six months of portering and maintenance services within the corridor.

No additional General Fund impact is anticipated.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Staff worked closely with the North Texas Street Business Association to engage their members and incorporate their feedback during the development of the proposed Program and on the length of time for the portering pilot program.

ALTERNATIVE ACTION
The council may choose to modify the proposed Program or funding allocation or not approve the Program.

COORDINATED WITH
North Texas Street Business Association and City Attorney’s Office

STAFF CONTACT
Shifra de Benedictis-Kessner, Economic Development Manager (707) 428-7649
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A - North Texas Street Revitalization Program Guidelines

CITY OF FAIRFIELD
RESOLUTION NO. 2026-10

APPROVING AND AUTHORIZING THE FUNDING AND ADOPTION OF THE NORTH TEXAS STREET

REVITALIZATION PROGRAM
WHEREAS, during the City Council Retreat of January 2025, council instructed staff to create an improvement program to meet the needs of the businesses and properties located within the North Texas Street District; and
WHEREAS, with the success of the Downtown’s Revitalization & Enhancement Assistance Program (REAP), staff created a similarly structured program based on input from the North Texas Street Business Association and its members; and
WHEREAS, staff created the North Texas Street Revitalization Program for the purpose of encouraging property and business owners of commercial property to enhance and revitalize the appearance and safety of properties through improvements to exterior lighting, signage, landscaping and parking lots within the North Texas Street District.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby approves the North Texas Street Revitalization Program in the form and content presented and attached hereto as Exhibit A.

Section 2. The council hereby approves funding in the amount of $372,274 for the North Texas Street Revitalization Program property improvement grants.

Section 3. The council authorizes the city manager, or their designee, to implement the review process incorporated in Exhibit A, and is further authorized to revise the Program, and application requirements described by Exhibit A with advice and counsel of the city attorney.

Section 4. The city manager is hereby authorized to take all actions as may be required to implement this resolution and the Program, including but not limited to, disbursement of Program funding, execution of Improvements Deeds, and the execution of Certificates of Acceptance.

RES. NO. 2026-10

PASSED AND ADOPTED this 20th day of January 2026, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________ _________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

EXHIBIT A

Introduction
The North Texas Street Revitalization Program (the “Program”) is intended to encourage business owners and/or commercial property owners to enhance the visibility, appearance, community pride, and economic setting of their properties and/or businesses located in the City of Fairfield’s North Texas Street District. The Program provides grants to make improvements to the appearance and visibility of privately owned properties in the following ways:
• Exterior signage
• Landscaping improvements
• Exterior lighting improvements
• Parking lot repairs and improvements
Program Goals:

1. Facilitate investment by business owners and/or commercial property owners to improve, update and enhance their exterior lighting, signage, and landscaping.

2. Enhance the appearance of the overall streetscape in the North Texas Street District.

3. Revitalize the business climate and strengthen economic vitality in the North Texas Street District.

Grant Amounts:

The grants and reimbursement amounts will be structured in one of four ways:

Applicant Type Project
location
Grant Amount Example

1.Business with less
than $500,000
annual revenue
Property where
their business
operates
70% reimbursement,
up to $30,000 grant
Total project cost of $40,000. Total
grant of $28,000. Cost to business
after reimbursement of $12,000

2.Business owner
that owns their own
building
Property where
ONLY their
business
operates
65% reimbursement,
up to $30,000 grant
Total Project cost of $40,000. Total
grant of $26,000. Cost to business
after reimbursement of $14,000

3.Property Owner of
a large shopping
center
Large Shopping
Center
property that
they own
50% reimbursement,
up to $30,000 grant
Total project cost of $60,000. Total
grant of $30,000. Cost to property
owner after reimbursement of
$30,000

4.All other eligible
commercial property
or business owners
50% reimbursement,
up to $25,000 grant
Total project cost of $50,000. Total
grant of $25,000. Cost to applicant
after reimbursement of $25,000

Applicants must provide documentation of the Applicant Type they are applying under:

1. A business with less than $500,000 annual revenue must provide the reported gross receipts for the prior two calendar years, as submitted to both the Internal Revenue Service and the City of Fairfield Business License Tax.

2. A business that owns and operates out of its own freestanding property must provide their current City of Fairfield business license and property title with matching/correlating address and ownership information.

3. A property owner of a large shopping center must provide County documents with the recorded property size or parcel dimensions reporting their parcel to be over five acres in total shared size.

4. All other eligible applicants may apply for the lesser amount of $25,000 or 50% of the total improvements approved.

Prioritization of funding:
• Applications from small independent businesses, including but not limited to, restaurants, wine and beer tasting rooms, bars, live entertainment, incubator spaces, and retail will be given preference.
• Applications will be reviewed and funding prioritized based on the proposed project’s relative impact and fulfillment of the program goals, according to the following:

Program Goals

1. Facilitate investment by business owners and/or commercial property owners to improve, update and enhance their exterior lighting, signage, and landscaping that will enhance the overall appearance of the North Texas Street District.

2. Enhance the appearance of the streetscape and create a more attractive commercial environment in the North Texas Street District.

3. Revitalize and reenergize the business climate and strengthen economic vitality in the North Texas Street District.

1. The Community Development Department’s Economic Development Division shall administer the Program. The Director of Community & Economic Development, or designee, will make the determination as to a participant’s Program eligibility based on qualifying and eligibility measures as outlined in these guidelines.

Eligibility Requirements

1. Applicant Eligibility
• Property owners and/or tenants of commercial buildings within the North Texas District. • Submittal of a complete Program application. Any applicant with a submitted application deemed incomplete will have 30 days after City notification to provide any missing information and documentation requested by the city in order to remain under consideration for participation in the program and continue along the application review process. Should any application remain incomplete for a period of 30 days or more after City notification, that incomplete application will be removed from the queue for consideration and the application review process will be terminated for that application.

To be reconsidered for participation in the program, the applicant must reapply and submit a completely new application that will be considered as submitted for review on the date of the new complete submission and not by the submission date of the old incomplete application.
• All tenants must provide to the City written consent from the property owner where the proposed improvements are to occur.
• Applicants must have a current Business License to conduct business at the address where improvements are to occur and must NOT be delinquent or past due on any North Texas Street Business Improvement District fees, where applicable, for the term of the Improvement Easement.
• Applicants must be in good standing with all City of Fairfield divisions and departments e.g., Planning, Building, Public Works, Police, Code Enforcement, etc. • Property owners and tenants of legal non-conforming uses are NOT eligible for program funds.
• Applicant, property owners (if different entities), and the property itself may NOT be in arears, or have been in collection action in the previous 36 months, on any local, state, and/or federal taxes; this includes City of Fairfield Business License Tax and Transient Occupancy Tax.

2. Property Eligibility
• The property must have an address within the North Texas Street Business Improvement District (see attached map designating area of eligibility). • Projects funded by this program are intended to be not less than $5,000 in total approved improvements.

3. Excluded Expenses:

• Any building used exclusively for residential or industrial occupancy. • The use of materials and fixtures that are unreasonably opulent e.g. gold plating, as determined by the Economic Development Division Manager, or their designee. • Plants, trees, and/or landscape materials that are not likely to survive in Fairfield’s climate or may create health & safety issues for pedestrian or vehicle traffic.

C. Eligible Improvements & Expenses:

1. Exterior lighting Improvements: Parking lot lighting, building lighting and decorative lighting that enhances the look and visibility of the building, parking lot, and property.

2. Landscaping improvements: Replacement or addition of ground cover (not to be primary landscape material), including but not limited grass, bark, and rock. Replacement or addition of trees, hedges, bushes and other plants and materials. Replacement or additional irrigation needed to serve new or existing landscaping.

3. Signage: Eligible signage improvements must be non-temporary building sign cabinets, blade signs, pylon signs, monument signs, or fascia elements that are integrated into building facades.

B. Eligible Soft Costs
The reimbursable “soft costs” of approved improvement projects include:

1. Architectural design review, plan check, boundary survey.

2. Architectural and/or consultant services to the property or business tenant; e.g. preparation of bids, preparation and filing of plans, construction monitoring, progress payments, lien releases, or change orders.

3. Costs of current title report for the property.

4. Such other costs, and fees approved by the Economic Development Division Manager, or their designee, which are consistent with the objectives of the Program.

All property improvements made under this Program must be consistent with the City’s Zoning Ordinance and General Plan. As with any other project, the property improvements under this program must also adhere to all applicable building codes, sign ordinances, and development/design standards for the City of Fairfield. Any code violations must be corrected before funding is released. Should any code violations occur related to any improvements made using funding from this Program and remain uncured for a period of time as outlined in a code enforcement citation, the participant may be required to reimburse the City for any unamortized funding over a 5-year period from the date funding is released.

Program Steps:

1. Submission of a complete application by the applicant; and

2. Review and approval of the application by Economic Development staff; and

3. Property owner has signed the Improvement Deed; and

4. Submission and approval of any applicable permits for improvements; and

5. Completion of the approved improvements; and

6. Proof of paid invoices provided to the Economic Development staff; and

7. Reimbursement payment made payable to the applicant.

Program Requirements
A. Funding Allocations & Availability
Any and all funding assistance is subject to availability of Program funds. All approved payments made by the City under the terms of the Program shall represent payments or reimbursements of a portion of the actual costs incurred by the applicant. The City Manager, or his or her designee, may consider approving any Program deviations found to be in the best interest of the City of Fairfield including, but not limited to, Program funding limits, boundary limits, improvement eligibility, grant award amounts, and applications accepted outside of any application period. These guidelines and financial terms are in effect until the Program funds are expended, unless additional funding is approved, or the Program is terminated.

C. Bids, Selection of Contractor, Improvement Easement

1. Written evidence of no less than two (2) bids (including soft costs, if applicable) are to be submitted to the Economic Development Division Manager, or their designee, for review.

2. Participants must select the lowest and best qualified bidder who meets the job requirements and is responsive to the written bid proposal, and inform the Economic Development Division Manager, or their designee, of their decision. (Because unforeseen contingencies commonly occur during rehabilitation, 10% should be added to the bid to provide for such if not already included.)

3. Participants must submit proof to the Economic Development Division Manager, or their designee, that the selected contractor (and his or her subcontractors) has the following:
• A State of California Contractor's License.
• A City of Fairfield Business License.

4. Improvement Assistance: Recordation of an Improvement Easement.

In order to receive funding assistance for property improvements, the property owner of the participating building must grant the City of Fairfield an Improvement Easement over the property improvements for a period of five years. Said Improvement Easement shall be recorded and shall include the following provisions:
• The Improvement Easement shall cover improvements of the property, including all improvements/installations funded by this Program.
• The building owner may request the City terminate and release the Improvement Easement at any time, subject to payment of an early termination and release fee in an amount equal to the value of all funding assistance received for the improvements for which the Improvement Easement was granted. Said value shall be discounted by 20% for each anniversary year subsequent to the completion of the improvements, the disbursement of funds by the City, and recordation of the Improvement Easement. • The building owner shall be obligated to maintain the building in accordance with the maintenance provisions of the Improvement Easement.

The Economic Development Division Manager or their designee may waive the requirement to provide the City an Improvement Easement for any applicant if, their sole discretion, they make the following findings:
1) the amount of funding assistance sought by the applicant is nominal; and 2) the improvements to be funded represent only a small percentage of the building’s footprint.

If the Economic Development Division Manager or their designee make such findings, the applicant shall solely enter into a Property Maintenance Agreement.

5. Inspection, Release of Funding
• Progress inspections by City staff may be conducted to ensure that the improvements are being constructed in accordance with the approved plans and the City's Codes. • A final inspection by City staff shall be conducted to determine that the improvements have been completed in accordance with the plans, and with the City's Codes. • Upon completion of the proposed improvements, the City will reimburse applicant for project related invoices (direct expenses) for up to the maximum amount allowed under these guidelines. Applicants shall be responsible for any and all costs, including soft costs in excess of the funding assistance received or the maximum amount allowed as stated above.

Agenda Item No: L.3

AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-11 PR Naming Rights
Declaring Application Period is Open for Solicitation of Naming Rights for Two City-Owned Facilities - the Fairfield Center for Creative Arts and the Golf Range at Paradise Valley Golf Course Funding Source: N/A
Contact: Kristina Kaunzinger, (707) 428-7470

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
City staff are seeking City Council declaration to open application to solicit naming rights for the Fairfield Center for Creative Arts and golf range at the Paradise Valley Golf Course.

DISCUSSION
On October 1, 2019, the council established the Policy for Naming City Facilities, Donations, Sponsorships, and Capital Campaigns by minute action, and amended said policy on July 15, 2025.

The policy process allows facilities to be named at any time the council declares by resolution an application period is open. Applications are available through and submitted to the City Manager’s Office. City Manager’s Office conducts a preliminary review for completeness and consistency with the policy. The applications are then given to the City Council Honors Committee for its review. If Honors Committee recommends moving the application(s) to the council, staff will prepare a report for council approval.

Staff is requesting to employ the Naming Policy to help offset capital investment projects for two city-owned facilities – the Fairfield Center for Creative Arts and the Golf Range Training facility at Paradise Valley golf course.

The Fairfield Center for Creative Arts (the Center) has been identified as an economic driver within the overall Heart of Fairfield strategic plan for activating Fairfield’s downtown. As is the case with most city-owned facilities, the Center has significant deferred maintenance needs. In addition, the city is revising the operation contract of the Center requiring additional uses of the facility and augmentation of the diversity of entertainment. To rejuvenate the Center, capital investment through naming sponsorship is a sensible step.

In addition, the City has been operating in a financial deficit, limiting investment in the Center.

Therefore, staff are recommending employing the Policy for Naming City Facilities to raise funds to offset improvements. As per Policy, Section C.5. Private enterprise may be considered when used as a capital campaign, this would be the case with this request – funds raised will be used to make improvements to the Center.

Over the past 12 months, staff have been meeting with Touchstone/Kemper management to develop strategies for increasing revenue streams at both city-owned golf courses. On July 1, 2025, a special meeting was held with the Golf Advisory Board (GAB) to review capital improvement projects with specific attention to improvements that would have a direct return on investment. One of the projects that has been approved by GAB is to install Toptracer at Paradise Golf Course. Toptracer is a ball-tracking system at driving ranges that uses cameras to measure a golf shot's flight and distance. It shows metrics like distance, speed, and launch angle on a screen. Users can view their data in real-time for practice or play games like virtual golf or closest-to-the-pin from their bay – similar to “play” offered at Top Golf.

The golf course has significant deferred maintenance needs, and the golf fund has limited resources for capital improvements. One strategy is to employ the city’s Policy for Naming City Facilities to offset the cost of the initial investment in the technology and range improvement, and to augment the training facility with other amenities such as installing permanent structure to cover the bays. Through this initial investment, it is projected to generate on-going additional revenue, thereby creating a new funding source for addressing other capital improvement projects and deferred maintenance.

FINANCIAL IMPACT
Minimal cost is associated with publicity, advertisement, and solicitation of application for naming the two facilities. Revenue generation to be determined.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
At the November 13, 2025, GAB meeting, the Board unanimously recommended to seek council approval to open Naming Right application process to offset costs associate with Toptracer and other upgrade to the range/training center at Paradise Valley golf course.

ALTERNATIVE ACTION
Staff will proceed with any alternative action as directed by council.

COORDINATED WITH
N/A

STAFF CONTACT
Kristina Kaunzinger, Director of Parks & Recreation
(707) 428-7470
[email protected]

ATTACHMENTS
Attachment 2: Policy for Naming City Facilities

CITY OF FAIRFIELD
RESOLUTION NO. 2026-11

DECLARING APPLICATION PERIOD IS OPEN FOR SOLICITATION OF NAMING RIGHTS FOR TWO

CITY-OWNED FACILITIES - THE FAIRFIELD CENTER FOR CREATIVE ARTS AND THE GOLF RANGE

AT PARADISE VALLEY GOLF COURSE
WHEREAS, on October 1, 2019, the City Council established the Policy for Naming City Facilities, Donations, Sponsorships, and Capital Campaigns by minute action, and amended said policy on July 15, 2025; and
WHEREAS, the policy process allows facilities to be named at any time the council declares by resolution an application period is open; and
WHEREAS, City staff is requesting to employ the Naming Policy to help offset capital investment projects for two city-owned facilities – the Fairfield Center for Creative Arts and the Golf Range Training facility at Paradise Valley golf course; and
WHEREAS, as per Policy, Section C.5. Private enterprise may be considered when used as a capital campaign.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is hereby authorized to do all things necessary to implement this resolution.

PASSED AND ADOPTED this 20th day of January 2026, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________ _________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

Adopted on July 15, 2025
City of Fairfield

POLICY FOR NAMING CITY FACILITIES, DONATIONS, SPONSORSHIPS, AND CAPITAL

CAMPAIGNS

POLICY PURPOSE
This Policy establishes the process and criteria for the consideration of requests for naming of City facilities, the process and criteria for the consideration and acceptance of donations, the process and criteria associated with sponsorships, and the establishment of capital campaigns.

POLICY STATEMENT – NAMING OF CITY FACILITIES
It is the policy of the City to provide a process for consideration of the naming of City facilities. As used in this policy and for the purposes of naming, “facility” or “facilities” shall include all City-owned infrastructure such as streets, parks, buildings, or portions of those facilities.

New facilities, additions to existing facilities, or facilities that have been or are to be restored/repaired substantially are eligible for naming.

The City shall review naming rights on all its facilities every ten (10) years.

The type, design, size, font, wording, placement, and other similar components of plaques, monuments, signs, etc. installed or placed at City facilities shall be approved by the City Manager (or designee) and align with the City’s style guide.

Pursuant to Government Code §34092, whenever the name of any street, park, or place is adopted or established by City authority, the City Clerk shall promptly forward a copy of the resolution, order, or other instrument providing for such new name or change of name or house number to the Solano County Board of Supervisors.

Naming Process
The process for naming a public facility will be as follows:

A. Timing of Naming. Facilities may be named at any time that the City Council declares by resolution an application period is open; these periods may be aligned to a capital campaign, the receipt of a donation, the City receiving correspondence of a pending donation, or at any other time at the discretion of the City Council. For specific projects, the Council may approve a prescribed donation amount required for a naming to be approved.

B. Application Submittal. A naming application shall be submitted to the City Manager’s Office. The City Manager’s Office may prescribe the form and necessary components of the application, which may change over time or to best match each particular request.

C. Application Review. The City Manager’s Office shall review the application and determine if it is complete and consistent with this Policy. Applications determined by the City Manager’s Office to be incomplete, without sufficient support, without sufficient justification, or that are otherwise inconsistent with this Policy will be returned to the applicant together with a written explanation for the return. An applicant may submit a new application with each naming application period.

D. Review by City Council. If an application is determined to be complete and consistent with the City Council’s stated goals for a facility naming, the application materials will be given to the City Council Honors Committee for its review. Should the Honors Committee decide the application has its recommendation for City Council approval, staff will prepare a report and City Council will give final approval for City facility naming. All naming decisions shall be at the sole discretion of City Council.

Naming Criteria
Priorities in order of importance to be considered in naming City Facilities shall be as follows:

Adopted on July 15, 2025
A. Historic Names. Names of historic events, groups, organizations, or persons at the local, regional, national, or global level of major significance with special consideration given to Fairfield’s own history.

B. Places and Feature Names.

1. Recognizable area of neighborhood, e.g. “Rolling Hills.” Names that aid in locating a facility are acceptable. If the facility is located on a park or school site the facility need not share the name of the park or school site.

2. Assumed Names. Assumed names should be used only if the area has been known by that assumed name for an extended period of time, e.g. the “Cordelia” area.

3. Theme Names. If a facility is located in an area with a specific theme, due consideration should be given to that theme.

4. Natural Phenomena. Natural phenomena, such as rivers, creeks, and terrain.

5. Horticultural Features. Horticultural features characteristics of a particular area.

6. Combination of the above.

C. Individuals, Groups, or Organizations. The following criteria will be used in evaluating the use of names of persons (whether living or deceased), groups, and organizations.

1. General Criteria. Names of groups, organizations, or persons, having a longstanding affiliation with the City of not less than ten (10) or more years of significant community service, involvement, investment, or contributions beyond the ordinary interest level where efforts have:
a. Enhanced the quality of life and well-being of City residents; b. Contributed to the preservation of the City’s history or culture; c. Made exemplary or meritorious contributions to the City or its residents; and/or d. Contributed to the acquisition, development, or conveyance of land, buildings, structures, or other amenities to the City or community.

2. Groups or Organizations. Facilities may be named after groups or organizations pursuant to the General Criteria.

3. Deceased Persons. To be considered for a naming opportunity, the individual must have been deceased for at least twenty-four (24) months. Such individuals may include:
a. Historic persons.
b. National and/or local heroes. Those who have given outstanding service to humankind or who have worked over and above any ordinary interest level. A resident of Fairfield who has attained local, state, national, or global recognition for work in parks and recreation, public safety, public health, or other public service endeavor, as appropriate to the facility, would be highly acceptable.
c. City facilities may be named for former employees, former City Council members, or former City Council appointees to City Boards or Commissions. d. Only one facility may be named in honor of an individual. City Council has the discretion to grant an exception to this clause.

4. Living Persons. Facilities will not be named after living persons unless associated with a capital campaign or allowed by City Council when accepting naming rights applications. City Council has the discretion to grant an exception to this clause.

5. Private Enterprise. Facilities will not be named after a private enterprise unless associated with a capital campaign or allowed by City Council when accepting naming rights applications.

In addition, the following names should be avoided:
- Cumbersome, corrupted or modified names, profane, discriminatory or derogatory names relating to age, race, religion, creed, national origin, sex, color, marital status, disability, sexual orientation, political affiliation, or similar categories.
- Names that cause confusion due to duplication or that sound too similar to existing named locations within the City or surrounding areas.
- Names of businesses whose business is substantially derived from the sale of tobacco, firearms, pornography, products or services illegal in the state of California, or other products and services considered unsuitable or inappropriate.

Adopted on July 15, 2025
- The re-use of former facility names other than for a reconstruction of the same facility in the same location.
- Names that would result in the overt commercialization of City facilities unless in conjunction with a substantial subsidy of construction and/or improvement costs. - Names that are overly recognized, either within the City or region.

Naming Costs
All costs of plaques, monuments, signs and the like resulting from naming will be borne by the individual, group, or organization requesting the name. The City may require a deposit of funds if the object being named will need sustained and/or significant maintenance during its useful lifespan.

POLICY STATEMENT – DONATIONS
It is the policy of the City to provide a process of consideration of donations. As used in this policy, “donations” refer to certain tangible objects such as benches, trees, cars, or artwork and/or the financial means for the city to acquire, maintain, restore, and/or renovate such objects as well as the maintenance, restoration, and/or renovation of City facilities. There is no expectation of an equal exchange of recognition or benefits commensurate with the value of the donation and there are no naming opportunities associated with the donation, although the City as its sole discretion may wish to recognize the donor or donor’s honoree at a City Council meeting and/or with a commemorative plaque at the location of the donation.

Donation Process
A. Application. A donation application shall be submitted to the City Manager’s Office. The City Manager’s Office may prescribe the form and necessary components of the application, which may change over time or to best match each particular request.

B. Review of Application. The City Manager’s Office shall review the application and determine if it is complete and consistent with this Policy. The City Manager’s Office will coordinate such review with or through another city department or departments benefitting from the donation. The City Manager’s Office will return applications determined to be incomplete or inconsistent with this Policy together with written explanation. The applicant may resubmit the application at any time up to a total of two times with new or additional information or correct the insufficiencies.

C. Acceptance of Donations. The City Manager’s Office may accept the donation if it is determined to be in compliance with this Policy and as long as the donation also complies with other applicable city or state laws governing gifts and donations. At the City Manager’s discretion, staff may present a recommendation about a particular donation to the City Council to make the final determination to accept or reject a donation. The City reserves the right to reject any offer of donation, if, upon review, acceptance of the donation is determined not to be in the best interest of the City.

Donation Acceptance Criteria
Appropriate City staff will review the acceptability of any donation and determine if the benefits to be derived warrant acceptance of the donation. Criteria for evaluation may include but are no limited to:
- The desirability or need for the donation.
- An analysis of any visual, functional, or land use impact of the donation. - An analysis of the make, model, or proposed use and/or location of the donation. - Consideration of any immediate or initial expenditure required of the City in order to accept the donation.
- The potential and extent of the City’s obligation to maintain the property or item donated, and the City’s available resources to do so now and in the future. - Whether the donation includes sufficient funding for installation and/or maintenance. - The community benefit derived from the donation.

Donations will not be accepted from:
- Companies that substantially derived from the sale of tobacco, firearms, pornography, products or services illegal in the state of California, or other products and services considered unsuitable or inappropriate.

Adopted on July 15, 2025
- Companies that substantially derive their income from the sale of alcohol and/or legal cannabis products when the donation is primarily for programs, events, or similar settings or occasions where the target audience is youth.
- Any entity that will create a conflict of interest with the City. - Any entity that is involved in a lawsuit/litigation with the City or an instrumentality thereof. - Any entity that is engaged in any state of negotiation with the City which might otherwise conflict with the donation process.

Following the Acceptance of Donations
Upon acceptance of donations, the City will assume ownership, control, and maintenance of any donation unless otherwise specified in a written agreement between the City and the donor. The City shall not be obligated to retain, repair, or replace any donated object that is damaged or destroyed for any reason, such as by vandalism, theft, the effects of weather or time, or, in the case of live plants, if they die. The City reserves the right to remove and/or relocate any donated object at any time. However, if a donated object(s) needs to be removed and is in acceptable condition, the City will make a reasonable attempt to relocate the object(s), if a need for such object(s) exists at another City facility or, if no City facility is appropriate, the City will make a reasonable attempt to return it. When acknowledging donations, the acknowledgement language and signage shall conform to the relevant portions of the Naming of City Facilities section of this Policy. Additionally, plaques, benches, trees, and other donated objects are not intended to be a place of worship or an official gathering place.

POLICY STATEMENT – SPONSORSHIPS
It is the policy of the City to provide a process for sponsorships. As used in this Policy, “sponsorships” are the financial, service, or in-kind contributions that will increase the City’s ability to deliver services, programs, scholarships, special events, other similar non-tangible elements, equipment, and/or infrastructure that further enhance, promote, and/or support the goals of the City.

The City may offer sponsorship opportunities from time-to-time and may offer a mutually agreeable exchange of benefits with exception that no Naming Rights of Facilities or tangible items covered by capital campaigns may result from sponsorships. With the approval of City Council, sponsorships may result in a named scholarship or program that is designed to last five or more years. For named scholarships or programs lasting fewer than five years, the process below may be followed without City Council approval.

Sponsorship Process
With the approval of the City Manager, City staff may enter into customized, written sponsorship agreements with willing sponsors and provide sponsors with a level of benefit that is commensurate with their contribution. Types of sponsor benefits may include but are not limited to:
- Publicity including the display of a sponsor’s logo through City publications, the website, newsletters, flyers, brochures, and/or media releases.
- Marketing opportunities at the special events or program sites. - Tangible benefits such as event admission or commemorative items such as plaques, a framed picture, or program or event shirts.
- Acknowledgement on printed materials such as event programs or recreation catalogues. - Signage including the possibility of the inclusion of an individual’s name of company name and logo on a fixed site for the period of time detailed in the sponsorship agreement. The following limitations apply to signage.
o Allowed signage and recognition displays details, including type, location, size, design, content and duration of display is at the sole discretion of the City and will be a component of the sponsorship agreement.
o Words or characters likely to interfere with or mislead pedestrian and/or vehicular traffic, i.e. “stop,” “drive,” and “danger” are prohibited.
o Reference or depiction of any obscene act, gesture, or word is prohibited. o Depictions of the use of drugs, tobacco, alcohol, and/or firearms are prohibited. o Decision for signage placement will be performed with input from the relevant program/facility manager.

Sponsorship Criteria

Adopted on July 15, 2025
- The City reserves the right to reject or terminate sponsorship agreements if, upon review, acceptance or continuance of the sponsorship is determined not to be in the best interest of the City or if the sponsor violates any terms of the agreement. - Sponsorship agreements will be for a defined period of time. - The City shall not be obligated to continue a program, event, or scholarship beyond the parameters of any written agreement.
- Recognition of a sponsor shall not suggest in any way the endorsement of the sponsor’s goods or services.
- Sponsorships shall not be made conditional based on the City’s performance or actions or the performance of an event, program, etc.
- Individual sponsors will not limit the City’s ability to seek other sponsors unless mutually agreed upon by the City and the sponsor.
- Sponsors are prohibited from unauthorized use of the City’s name or brand. - Sponsorships will not be accepted from:
o Companies that substantially derived from the sale of tobacco, firearms, pornography, products or services illegal in the state of California, or other products and services considered unsuitable or inappropriate.
o Companies that substantially derive their income from the sale of alcohol and/or legal cannabis products when the sponsorship is primarily for programs, events, or similar settings or occasions where the target audience is youth. o Any entity that will create a conflict of interest with the City. o Any entity that is involved in a lawsuit/litigation with the City or an instrumentality thereof. o Any entity that is engaged in any state of negotiation with the City which might otherwise conflict with the donation process.
o Any religious and/or political organization.

POLICY STATEMENT – CAPITAL CAMPAIGNS
It is the policy of the City to provide a process for capital campaigns.

The City may conduct capital campaigns from time-to-time to raise funds for City facilities as defined in the Naming portion of this Policy or for tangible objects with City facilities such as furniture, fixtures, appliances, scoreboards, playground equipment, and the like.

Capital campaigns or portions of capital campaigns that will result in the naming of newly constructed, renovated, or to be renovated/repaired facilities as defined in the Naming portion of this Policy, portions of facilities newly constructed, renovated, or to be renovated such as definable spaces, rooms, and/or wings of a structure shall follow the Naming portion of this Policy at the conclusion of the capital campaign.

Capital campaigns or portions of capital campaigns that will result in the acquisition of tangible objects for City facilities will be designed and managed at staff level in accordance with all other State laws and City policies. Contributions may be accepted in accordance with all other components of this Policy including, but not limited to, limitations of allowed contributors and recognition of contributors.

The City reserves the right to reject or return funds offered during capital campaigns if, upon review, acceptance of the contribution is determined not to be in the best interest of the City.

Agenda Item No: L.4

AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-12 HR Authorizing and Adopting Changes to City Manager’s Compensation and Benefits
Authorizing Changes to the Terms and Conditions of City Manager’s Compensation & Benefits to Maintain Alignment with Series 100 Executive Management-Represented Classifications Funding Source: $9,252; General Fund
Contact: Farbod Pirouzmand (707) 428-7397

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The city manager’s employment agreement includes provisions related to the terms and conditions of compensation and benefits to align with similar benefits received by Series 100 Executive Management-Represented classifications. City council adopted changes to Series 100 compensation and benefits on December 16, 2025. This action is necessary, due to the provisions of the city manager’s employment contract, to ensure continued alignment with Series 100 Executive Management-Represented classifications.

DISCUSSION
On December 16, 2025, city council adopted Resolution No. 2025-260 to approve changes to the Series 100 Executive Management employees’ compensation package. According to the terms outlined in the city manager’s employment contract, his compensation and benefits are to be adjusted in accordance with those received by Series 100 Executive Management employees.

Adjustments to the city manager’s compensation package based on what Series 100 employees receive are described in the following table:

Benefit Summary of Change
Constructive Receipt Committed to adhere to the outcomes of the upcoming meet and confer process with bargaining units regarding leave cash-out practices and compliance with federal Internal Revenue Service (IRS) rules Off-Salary
Schedule Pay
Issued a one-time 3% cash payment in-lieu of cost-of-living adjustment in alignment with other bargaining units
Personal Leave Reduced annual accrual by 22.42 hours in exchange for a 1.08% adjustment to base wage; established a maximum accrual limit of 300 hours where none existed previously
Sick Leave Established a 500 hour maximum accrual limit where none existed previously and allows for a Health Reimbursement Arrangement for hours over the limit; eliminated payoff upon resignation or termination The costs for the changes represent fair trade-offs by executive management staff, including the city manager. Specifically, prior year cost of living adjustments (COLA) were not accepted by executive leadership and the one-time cash payment is in lieu of those forgone adjustments. The one-time nature of the payment provides additional compensation that does not increase future liabilities. Additionally, the forfeiture of personal leave hours supplements the base wage adjustment and put in place a leave balance accrual cap that reduces long-term liabilities. This approach maintains alignment with other bargaining unit negotiated agreements without creating a significant impact on the General Fund.

The compensation and benefit adjustments were discussed by city council in a closed session meeting on December 17, 2025, for the city manager’s performance evaluation. Council direction to proceed with this compensation package was authorized based on a positive performance evaluation.

FINANCIAL IMPACT
The cost for the one-time cash payment is $9,252 in the first year. Ongoing cost estimates for the

1.08% adjustment to base wage in exchange for a reduction in personal leave hours are estimated to cost $1,128 annually. The funding source is primarily General Fund with approximately 30% reimbursed across various funds for indirect support through the cost allocation plan.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the changes to the terms and conditions of the City Manager’s Compensation and Benefits to maintain alignment with Series 100 Executive Management-Represented classifications and direct staff to amend different terms than stated above.

COORDINATED WITH
City Manager’s Office and Finance Department

STAFF CONTACT
Farbod Pirouzmand, Assistant City Manager/Director of Human Resources (707) 428-7397
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: City Manager’s Contract and City Council Resolution 2022-338

CITY OF FAIRFIELD
RESOLUTION NO. 2026-12
AUTHORIZING CHANGES TO THE TERMS AND CONDITIONS OF CITY MANAGER’S COMPENSATION & BENEFITS TO MAINTAIN ALIGNMENT WITH SERIES 100 EXECUTIVE

MANAGEMENT-REPRESENTED CLASSIFICATIONS
WHEREAS, the city council approved an employment contract with David Gassaway as the City Manager with Resolution 2022-338; and
WHEREAS, the city manager’s contract contains provisions that state the city manager shall receive compensation and benefit adjustments provided to other Series 100 Executive Management employees; and
WHEREAS, the city council approved Resolution 2025-260 for compensation and benefit adjustments for Series 100 Executive Management employees; and WHEREAS, the city manager’s contract states changes to his salary shall not require an amendment to his contract to be effective and such salary increase shall be set forth in a salary resolution approved by the City Council.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The council hereby approves the following changes to the city manager’s compensation:

Benefit Summary of Change
Constructive Receipt Committed to adhere to the outcomes of the upcoming meet and confer process with bargaining units regarding leave cash-out practices and compliance with federal Internal Revenue Service (IRS) rules Off-Salary
Schedule Pay
Issued a one-time 3% cash payment in-lieu of cost of living adjustment in alignment with other bargaining units
Personal Leave Reduced annual accrual by 22.42 hours in exchange for a 1.08% adjustment to base wage; established a maximum accrual limit of 300 hours where none existed previously
Sick Leave Established a 500 hour maximum accrual limit where none existed previously and allows for a Health Reimbursement Arrangement for hours over the limit; eliminated payoff upon resignation or termination Section 2. The council hereby approves any other applicable compensation and benefit changes for the city manager pursuant to Resolution 2025-260.

RES. NO. 2026-12

Section 3. The city manager is hereby authorized and directed to do all things necessary to implement this resolution.

PASSED AND ADOPTED this 20th day of January 2026, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________ _________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

CITY OF FAIRFIELD
RESOLUTION NO. 2022- 338

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING THE CITY

MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF FAIRFIELD AND DAVID

GASSAWAY AND AMENDING THE SALARY SCHEDULE
WHEREAS, the City Council desires to appoint David Gassaway as city manager; and WHEREAS, David Gassaway desires to accept the appointment as city manager; and WHEREAS, the City and David Gassaway desire to enter into an employment agreement that sets forth the rights and obligations of the parties.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The City Council hereby appoints David Gassaway as city manager, effective December 30, 2022.

Section 2. The council approves the City Manager Employment Agreement between the City of Fairfield and David Gassaway attached to and incorporated into this resolution by reference and amends the salary schedule with the approved salary for the city manager of $285, 000.

Section 3. The city attorney and the human resources director are authorized to do all things necessary to implement this contract.

PASSED AND ADOPTED this 20th day of December, 2022, by the following vote:

AYES: COUNCILMEMBERS:

PYone—
ABSENT:

RICE / BERTANI / MOY / PANDURO / TIMM / TONNESEN / VACCARO NOES: COUNCILMEMBERS:

COUNCILMEMBERS: Non ,
ABSTAIN: COUNCILMEMBERS: Nn
i
MAYOR, V ; C
ATTEST:

Z a- -

CITY CLERK

CITY MANAGER EMPLOYMENT AGREEMENT

1. Employment:

This City Manager Employment Agreement ( Agreement) is entered into by and between the CITY OF FAIRFIELD ( City) and DAVID GASSAWAY ( Manager) collectively " Parties"). Under this Agreement, the City offers, and Manager accepts, employment as City Manager of the City.

2. Duties:

Manager shall perform those duties and have those responsibilities that are commonly assigned to a city manager of a city in California, and as may be further set forth in the City' s Charter or Municipal Code. Manager shall perform such other legally permissible and proper duties and functions consistent with the office of City Manager, as the City Council shall from time to time assign.

3. Devotion to City Business:

Manager' s position is full-time. Manager shall not engage in any business, educational, professional, charitable, or other activities that would conflict or materially interfere with performance of his/ her City Manager duties, except as may be specifically authorized by the City Council.

4. Term:

Manager' s employment will commence December 30, 2022, and shall continue until December 30, 2027, or the date of earlier termination in accordance with provisions in this Agreement. On June 30, 2027, and on each succeeding June 30th while this Agreement is in effect, this Agreement shall be automatically extended for one ( 1) additional year unless prior to that date the City Council notifies Manager of its intent not to extend the Agreement for one additional year. City' s election not to extend this Agreement shall not entitle Manager to Severance pursuant to Section 6 of this Agreement.

5. City Council Commitments:

A. Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consultants solely through the Manager or the Manager' s designee, and neither the City Council nor any member thereof shall give direction to any subordinate of the Manager, either publicly or privately.

B. No member of the City Council will order the appointment or removal of any person to any office or employment under the supervision and control of the Manager.

C. Neither the City Council nor any of its members shall interfere with the execution of the powers and duties of the Manager, as specified in the Municipal Code, this Agreement, or any other lawfully adopted and authorized document.

D. At the Manager' s sole discretion, the City Council should participate in an annual strategic planning meeting that utilizes a professional facilitator from outside the City organization. The City shall pay the cost of the professional facilitator in an amount not to exceed $ 10, 000, unless a greater amount is agreed to by the Parties.

The strategic planning meeting shall be at a time and place mutually agreed to by the Parties.

6. Termination of Employment and this Agreement; General Release; Severance:

A. The City may terminate the Manager at any time by following the process defined in Chapter 2, Article II, Section 2. 7 (" Section 2. 7") of the Fairfield Municipal Code. The resolution required under Section 2. 7 shall state if the termination is with or without cause. If City terminates Manager without Cause, as determined by the affirmative votes of a majority of the members of the City Council at a Regular Meeting of the City Council, and if Manager signs, delivers to the City Council, and does not revoke, the General Release Agreement (" Release Agreement") in the form attached hereto as Exhibit A, City shall pay Manager a lump sum benefit equal to six ( 6) months of his/ her then Base Salary, and shall provide six ( 6) months of health ( medical, dental, and vision) benefits continuing under the benefit plans in which Manager and his/ her 2

dependents are then enrolled ( the cash payment and continuing benefits, collectively Severance")
B. If City terminates this Agreement ( thereby terminating Manager' s employment) with Cause, as determined by the affirmative votes of a majority of the members of the City Council at a Regular Meeting of the City Council, Manager shall not be entitled to any additional compensation or payment, including Severance, but shall be entitled only to accrued Base Salary and vacation pay, and any other accrued and unused benefit allowances according to their terms ("Accrued Salary and Benefits").

As used in this Agreement, Cause shall only mean any of the following:

1. Conviction of, or plea of guilty or nolo contendre to, any felony crime or misdemeanor crime of moral turpitude,

2. Proven failure of the Manager to observe or perform any of his duties and obligations, if that failure continues for a period of thirty 30) business days from the date of his receipt of notice from the City Council specifying the acts or omissions deemed to amount to that failure:

3. Conviction of any crime involving an " abuse of office or position," as that term is defined in Government Code Section 53243.4;

4. Repeated failure to carry out a directive or directives of the City Council made by the City Council as a body at a Brown Act - compliant meeting; and

5. Any grossly negligent action or inaction by Manager that materially and adversely: ( a) impedes or disrupts the operations of City or its organizational units, ( b) is detrimental to employees or public safety; or ( c) violates City' s properly -established rules or procedures.

6. Conviction of an infraction or traffic offense, entry of a civil judgment, or any administrative finding against Manager shall not constitute " Cause"
3

C. In no event may Manager be terminated within ninety ( 90) days before or after any municipal election for the selection or recall of one or more of the members of the City Council.

D. If, during the Term Manager dies, Manager's estate shall receive Accrued Salary and Benefits, but shall not be entitled to any additional compensation or payment, including Severance.

E. In the event Manager is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, or mental incapacity for a period of three consecutive months beyond any provided sick leave, the City may terminate Manager's employment and this Agreement. Manager is entitled to receive any disability benefits provided to Series 100 employees as eligible.

F. Manager may resign from his employment at any time, upon giving fortyfive ( 45) days written notice to the City Council.

7. Compensation and Annual Evaluation:

A. Manager' s initial annual Base Salary shall be Two Hundred Twenty -Five Thousand Dollars and zero cents. ($ 285,000. 00). Said amount shall be payable in monthly or bi-weekly installments at the same time and in the same manner as other employees of the City are paid. Increases in Manager' s Base Salary may be effective at any time in the sole discretion of the City Council.

B. City, by the City Council, and Manager may set mutually -agreed -upon objectives for each year under this Agreement. The City Council shall evaluate Manager's performance at least once a year during the months of November or December ("Annual Evaluation"). At the discretion of the Manager, the Parties agree to use a professional facilitator to assist in the conduct of the annual performance evaluation. The City shall pay the cost of the professional facilitator in an amount not to exceed $ 10, 000, or greater by mutual agreement, and the Manager shall procure the professional facilitator. Following the completion of the Annual Evaluation, the City Council may, in its sole discretion, grant Manager a Performance Bonus in any amount up to 5% of Manager' s Annual Base Salary, as described in Section 7.A herein. 4

C. Whenever a cost of living adjustment or other non -merit based salary increase is provided to other Series 100 Executive Management employees, the City shall grant a similar cost of living adjustment to the City Manager's Base Salary.

D. Manager's Base Salary increases approved by the City Council from time to time pursuant to this Agreement shall not require an amendment to this Agreement to be effective. Such salary increase shall be set forth in a salary resolution approved by the City Council.

E. If the City reduces the Base Salary or any other financial benefit of the Manager in a percentage that is greater than the average reduction of all Series 100 Executive Managers, such action shall constitute a termination of this Agreement without Cause under Section 6.A. of this Agreement, and Manager shall be entitled to Severance.

8. Deferred Compensation:

As part of Manager' s annual compensation, City agrees to provide Manager the same deferred compensation and fringe benefits provided to other Series 100 Executive Management employees.

9. Pension:

City agrees to continue enrollment of Manager as a member of the California Public Employees Retirement System ( PERS) in the PERS plan selected by City in its sole discretion as a Classic Member as that term is defined by the City' s agreement with PERS.

10. Health and Medical Benefits Insurance:

City shall provide Manager with the same health plans ( medical, dental, and vision) which are provided to other Series 100 Executive Management employees, and shall pay that portion of the employee and dependent rate or premium as is determined by the City Council for all Series 100 Executive Management employees. 5

11. Life Insurance:

The City agrees to continue providing Manager term life insurance policy in the face amount provided to Manager in his role as Assistant City Manager by the standard carrier selected by the City. Manager shall designate the beneficiaries of the policy.

Manager shall also be entitled to participate in any group life or disability insurance programs approved by the City Council for all employees.

12. Physical Examination:

Each calendar year, City may request Manager undertake an executive physical examination, performed by a qualified physician or medical facility of Manager's choice, with all expenses paid for by City.

13. Car Allowance:

Manager's duties require him to be available and to respond to the demands of City business at all times and outside of regular business hours, including weekends.

City shall pay Manager Five Hundred Dollars ($ 500.00) monthly in compensation for the use and maintenance of his personal vehicle on City business.

14. Equipment:

A. City shall provide Manager a cellular telephone for his use in conducting City business; provided, however, that it is expressly understood that the equipment may be subject to incidental personal use by Manager so long as it does not interfere with the equipment' s primary business use.

B. City shall provide Manager a laptop computer for his use in conducting City business; provided, however, that it is expressly understood that the equipment may be subject to incidental personal use by Manager so long as it does not interfere with the equipment' s primary business use.

15. Business and Professional Expenses and Development:

A. City recognizes that Manager may incur expenses of a non -personal, job - related nature that are reasonably necessary to Manager's service to City. City agrees to either pay such expenses in advance or to reimburse the expenses, so long as the expenses are incurred and submitted according to City' s normal expense reimbursement procedures or such other procedure as may be designated by the City Council. To be eligible for reimbursement, all expenses must be supported by documentation meeting City' s normal requirements and must be submitted within time limits established by City.

B. City agrees to pay the professional dues and subscriptions on behalf of Manager which are necessary for Manager' s continuation or full participation in international, national, regional, state, or local associations and organizations necessary and desirable for Manager' s continued professional participation, growth and advancement, or for the good of the City, in an amount up to Five Thousand Dollars 5, 000. 00) per year.

C. City agrees to pay Manager' s travel and subsistence expenses for official travel, meetings, and occasions reasonably necessary to continue Manager' s professional development, and for Manager' s reasonable participation in necessary official and other functions for the City, including, but not limited to, national, regional, state, and local conferences, governmental groups and committees on which Manager serves as a member, and business related trips. Notwithstanding the above, the number of conferences or meetings City will pay for each year, and attendance at outof-state conferences and meetings, shall be at the discretion of the City Council as set forth in the City' s budget.

D. Annually, Manager shall participate in continuing education that includes but is not limited to organizational management. Such continuing education should come from courses offered from groups such as, but not limited to: the International City Management Association (" ICMA"), The Harvard Kennedy School Senior Executives in Local Government, and other accredited educational institutions. Training and development costs shall be paid for by the City.
7

16. Vacation and Sick Leave:

Manager shall accrue vacation, personal, and sick leave at the rate provided to him under his role as Assistant City Manager and provide Manager all vacation leave benefits provided to Series 100 Executive Management employees.

17. Abuse of Office or Position:

If Manager is convicted of a crime involving an abuse of his office or position, all of the following shall apply: ( a) if Manager is provided with administrative leave pay pending an investigation, Manager shall be required to fully reimburse City such amounts paid; ( b) if City pays for the criminal legal defense of Manager (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), Manager shall be required to fully reimburse City such amounts paid; and ( c) if this Agreement is terminated, any Severance Pay and Severance Benefits related to the termination that Manager may receive from City shall be fully reimbursed to City or shall be void if not yet paid to Manager. For purposes of this Section, abuse of office or position means either: ( d) an abuse of public authority, including waste, fraud, and violation of the law under color of authority; or ( e) a crime against public justice.

18. Enforcement of this Agreement:

The prevailing party in any action brought to enforce this Agreement or to resolve any dispute or controversy arising under its terms and conditions, shall be entitled to payment of his/ her/its reasonable attorneys' fees and costs.

19. Communications Upon Manager' s Separation:

In the event the City terminates the Manager without cause, or if Manager resigns and terminates this Agreement, the City and the Manager agree that no member of the City Council, the City Management staff, nor the Manager, shall make any written, oral or electronic statement to any member of the public, the press, or any city employee concerning the Manager's termination except in the form of a joint press release or statement, the content of which is mutually agreeable to the City and the Manager, or as otherwise allowed by law. The joint press release or statement shall not 0

contain any text or information that is disparaging to either party. Either party may verbally repeat the substance of the joint press release or statement in response to any inquiry. Information which is subject to disclosure under the Public Records Act may be repeated by either Party.

20. Indemnification:

Consistent with the California Government Code, City shall defend, hold harmless, and indemnify Manager using legal counsel of City' s choosing, against expense or legal liability for acts or omissions by Manager occurring within the course and scope of Manager' s employment under this Agreement. Legal representation, provided by City for City Manager, shall extend until a final determination of the issues including any and all losses, damages, judgments, interest, settlements, fines, court costs, and the reasonable costs and expenses of legal proceedings, including appeals, and including attorneys' fees, and expert witness fees and all other trial and appellate costs, and other liabilities incurred, imposed upon, or suffered by Manager in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened. In the event there is a conflict of interest between City and Manager such that independent counsel is required for Manager, Manager may engage his/ her own legal counsel, in which event City shall indemnify Manager, including direct payment of all such reasonable costs related thereto.

21. Notices:

Any notices to be given hereunder by either party to the other in writing may be effected either by personal delivery, mail, or email. Mailed notices shall be addressed to the parties as set forth below, but each party may change his/ her/its address by written notice given in accordance with this Section. Notices delivered personally or by email will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated and received as of three ( 3) calendar days following the date of mailing. 9

CITY. City of Fairfield
Attention: Mayor
1000 Webster Street
Fairfield, CA 94533
MANAGER: David Gassaway
Address listed on file with Human Resources]

22. Conflict With City Charter or Municipal Code:

The City personnel ordinances, resolutions, rules and policies shall apply to Manager in the same manner as applied to other management employees, provided, however, in the event of a conflict between the provisions of this Agreement and the California Government Code or the Fairfield Municipal Code, the California Government Code or the Municipal Code shall prevail over this Agreement. Notwithstanding the foregoing, any change made to the Municipal Code, or if a City Charter is adopted that fundamentally changes the City' s form of government from the Council/ Manager Form of Government, as that term is defined in California Government Code section 34851 to 34859, to any other form of local government as allowed under the laws and rules established by the State of California, shall constitute termination of this Agreement and Manager shall be subject to severance under Section 6.A.

23. Entire Agreement:

This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or in writing, between the parties with respect to the employment of Manager by City, and contains all of the covenants and agreements between the parties with respect to that employment. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by either party, or by anyone acting on behalf of either party, which are not embodied herein, and that no other employment 10

agreement, statement, or promise not contained in this Agreement shall be valid or binding upon either party.

24. Modifications:

Any modifications to this Agreement shall be effective only if in writing and signed by both of the parties hereto.

25. Effect of Waiver:

The failure of either party to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

26. Partial Invalidity:

If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. more)
11

27. Governinq Law:

This Agreement shall be governed by and construed in accordance with the laws of the State of California.

This Agreement is entered into this 4,VA day of December, 2022.

CITY OF FAIRFIELD
By:

Actin
hL
Mayor Rick Vaccaro
Attest:

City Clerk , 9epu+
12 David Gassaway,
Approved as to Form:

City Attorney

GENERAL RELEASE AGREEMENT
This General Release Agreement (" Release Agreement") is entered into by and between (" Manager") and CITY OF
City"), in light of the following facts:

A. Manager's employment with City concluded on
B. Certain disputes have arisen between City and Manager.

C. City and Manager each deny any liability whatsoever to the other.

D. City and Manager wish to fully and finally resolve any and all disputes they may have with each other.

E. Manager is hereby informed that he/ she has twenty- one ( 21) days from receipt of this Agreement to consider it. City hereby advises Manager to consult with his/ her legal counsel before signing this Agreement.

F. Manager acknowledges that for a period of seven ( 7) days following the signing of this Agreement (" Revocation Period"), he/ she may revoke the Agreement.

This Agreement shall not become effective or enforceable until the day the Revocation Period has expired.

G. Manager acknowledges that the Salary Payment referenced in paragraph 1 of this Agreement represents all compensation, including salary, accrued benefit balances and reimbursed expenses, due and payable to him/ her through the date of employment termination. Manager also acknowledges that City has made this Salary Payment without regard to whether he/ she signs this Agreement. The Salary Payment does not constitute consideration for this Agreement.

1. Receipt of Salary Payment. Manager hereby acknowledges receipt of a check or checks for all compensation owing to him/ her, including salary, accrued benefit balances and reimbursed expenses ("Salary Payment") from City.

2. Severance. Within five ( 5) days following Manager's signing, delivering to the City, and not revoking this Agreement, City shall pay Manager the gross amount provided for in Section 6.A. of the attached Employment Agreement, less applicable deductions, and shall provide the months of medical benefits as provided in that same Section 6.A. Manager acknowledges that the Severance is in excess of all amounts due and owing him as a result of his employment by City.

EXHIBIT A — Page 1

3. General Release. In consideration of the Severance to be paid and provided to Manager, and other good and valuable consideration, Manager hereby releases and discharges City and its past and present City Council Members, employees, representatives and agents, from all rights, claims, causes of action, and damages, both known and unknown, in law or in equity, concerning and/ or arising out of his/ her employment by City which he/ she now has, or ever had, including but not limited to any rights, claims, causes of action or damages arising under Title VII of the Civil Rights Act of 1964, the Vocational Rehabilitation Act of 1973, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefits Protection Act, the Family and Medical Leave Act of 1993, the Domestic Partners Act of 2003, the California Labor Code, the Private Attorneys General Act of 2004, the California Moore -Brown -Roberti Family Rights Act, the California Unruh Civil Rights Act, the California Fair Employment and Housing Act, any other federal, state, or local employment practice legislation, or any federal or state common law, including wrongful discharge, breach of express or implied contract, or breach of public policy.

Manager hereby waives and relinquishes all rights and benefits afforded by Section 1542 of the Civil Code of California. Manager understands and acknowledges the significance and consequences of this specific waiver of Section 1542. Section 1542 of the Civil Code of California states as follows:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."
Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release and discharge of City and its past and present City Council Members, employees, representatives and agents, Manager expressly acknowledges that this General Release is intended to include in its effect, without limitation, all claims which he/ she does not know or suspect to exist in his/ her favor.

Manager further acknowledges that he/ she has read this General Release and that he/ she understands that this is a general release, and that he/ she intends to be legally bound by the same.

EXHIBIT A — Page 2

4. Fees and Costs. Manager and City agree that in the event of litigation relating to this Release Agreement, the prevailing party shall be entitled to recover his/ her/its reasonable attorneys' fees and costs.

Dated , 20 CITY OF
Dated: , 20
APPROVED AS TO FORM:

By:

Date:

ATTEST:

By:

City Clerk
Date:
23 MANAGER
EXHIBIT A — Page 3

Agenda Item No: M.1

AGENDA REPORT
DATE: January 20, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-13 and Ordinance 2026-01 CD Housing Element Compliance Resolution 2026-13 Approving Addendum (ER2025-0026) to the City of Fairfield General Plan Update And Climate Action Plan Environmental Impact Report (SCH 2021080289), and Approving General Plan Amendments (GPA2025-0003) for the Following Assessor’s Parcel Numbers (APN):
(1) APN: 0027-370-280 at Westamerica Drive and Suisun Valley Road From High Density Residential to Community Commercial; (2) APN: 0027-370-300 at Mangels Boulevard and Suisun Valley Road From High Density Residential to Community Commercial; (3) APN: 0038-221-010 at East Tabor Avenue and Railroad Avenue, from High Density Residential to Very High Density Residential; (4) APN: 0034-050-320 at Heath Drive and Peach Tree Drive from High Density Residential to Very High Density Residential; (5) APN: 0037-010-120 (1351 East Tabor Avenue) from High Density Residential to Very High Density Residential; and Ordinance 2026-01 Amending Chapter 25, Article I, Section 25.12.3 of the Fairfield Municipal Code (Also Known as Zoning Map Adopted) to Rezone (ZC2025-0006) to the Following Seven Parcels: (1) 3066 Travis Boulevard (APN: 0152-280-140) from Community Commercial District to Mixed Commercial District; (2) APN: 0027-370-280 at Westamerica Drive and Suisun Valley Road From Office Commercial District to Mixed Commercial District; (3) APN: 0027-370-300 at Mangels Boulevard and Suisun Valley Road, from Office Commercial District to Mixed Commercial District; (4) APN: 0027-360-070 at Campus Lane and Suisun Valley Road from Industrial Business Park District to Residential Very High Density District; (5) APN: 0038-221-010 At East Tabor Avenue And Railroad Avenue From Residential High Density District to Residential Very High Density District; (6) APN: 0034-050-320 at Heath Drive and Peach Tree Drive, from Residential High Density District to Residential Very High Density District; (7) 1351 East Tabor Avenue (APN: 0037- 010-120) from Residential High Density District to Residential Very High Density District; And Amending Various Sections of Chapter 25, Article I, Also Known as The Zoning Ordinance, to Implement the 2023-2031 Housing Element
Funding Source: N/A
Contact: Vicrim Chima, (707) 428-7446

RECOMMENDED ACTION
Hold public hearing; adopt resolution; waive full reading, read by title only and introduce ordinance for first reading.

STATEMENT OF ISSUE
Conduct a public hearing requested by the City for zoning text and map amendments and associated General Plan amendments to implement the 2023–2031 Housing Element. The project includes rezoning seven sites and making associated General Plan amendments for five of these sites to maintain zoning and general plan designation consistency. The changes to the zoning ordinance are the result of state-adopted legislation aimed at addressing a statewide housing shortfall.

The recommended action before the Council is the implementation of the general plan amendments, zoning map and text amendments to ensure compliance with standards dictated by state law. This action does not impact projects that have already been approved by the City.

DISCUSSION
Housing Element 2023-2031 Implementation
Every eight years, California jurisdictions are required by State law to update their General Plan Housing Element, which addresses a range of housing-related topics, including an assessment of the City’s ability to accommodate its assigned share of regional housing need allocation (RHNA).

As part of this process, jurisdictions must demonstrate to the California Department of Housing and Community Development (HCD) that they have adequate development capacity to accommodate a specific number of residential units citywide at all income levels. These income levels include extremely low, very low, low, moderate, and above moderate. The required number of units for each income category is determined using a standardized method developed by the Association of Bay Area Governments (ABAG) and assigned to local jurisdictions.

On February 7, 2023, the City adopted its 2023–2031 General Plan Housing Element. While the existing zoning and General Plan designations meet HCD standards for moderate and abovemoderate income levels, additional zoning and land use changes are needed to provide sufficient capacity for low, very low, and extremely low-income housing. On December 16, 2025, the City received correspondence from HCD reminding jurisdictions of the statutory requirement to implement Housing Element programs, including required rezoning actions, within three years of Housing Element adoption (see Attachment 7).

HCD also requires local jurisdictions to remove regulatory barriers and streamline the state environmental review process to help facilitate the construction of residential development across a range of income levels and housing types. Consistent with these requirements, a comprehensive set of zoning text amendments are proposed to implement the 2023–2031 Housing Element Housing Action Plan. These amendments align zoning densities with General Plan land use designations; reduce minimum lot sizes and establish objective standards to support small-lot and infill development; and provide ministerial and by-right approval pathways for qualifying housing projects in accordance with State law. Additional changes expand

opportunities for affordable, efficiency, farmworker, supportive, emergency, and special-needs housing; and remove parking and other regulatory constraints for residential care and similar facilities.

The following actions are required to fulfill the commitments outlined in the 2023–2031 Housing Element:
 Zoning map amendment. As required by State law, the project includes a Zoning Map amendment for seven parcels. The proposed Mixed Commercial (CM) and Residential Very High Density (RVH) zoning designations allow sites to meet the criteria required to accommodate Fairfield’s lower-income regional housing needs. These required rezone sites were identified due to their potential for redevelopment over the next eight years and advance fair housing opportunities throughout the city.  General plan land use amendment. The project includes a General Plan Land Use Plan amendment to redesignate five parcels for consistency with the rezoning changes.  Zoning ordinance amendments. The zoning text amendments are consistent with the Housing Element actions and are intended to implement rezoning actions, support the production of housing at all income levels, protect existing residents from displacement, and expand opportunities for a variety of residential uses. The amendments align zoning densities with General Plan land use designations, reduce minimum lot sizes, establish objective standards to facilitate small-lot and infill development, and provide ministerial and by-right approval pathways for qualifying housing projects in compliance with State law. Additional changes expand opportunities for affordable, efficiency, farmworker, supportive, emergency, and special-needs housing, and remove parking and other regulatory constraints for residential care and similar facilities.

A more detailed and comprehensive analysis of the City’s RHNA obligations, the seven rezoning sites, and the proposed zoning text amendments can be found in the attached Planning Commission staff reports from November 12, 2025 (Attachment 8), and December 10, 2025 (Attachment 9) hearings.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Public engagement has been an ongoing component of the City’s Housing Element efforts.

During preparation of the 2023–2031 Housing Element, the City conducted extensive outreach, utilizing a variety of engagement strategies including a project website and e-blasts, stakeholder interviews, focus groups, online surveys, and community workshops. Multiple public comment periods were held in 2022 and 2023, including hearings before the commission and council, and all comments received were addressed in the adopted Housing Element.

The commission initially reviewed the proposed General Plan Amendments and Zoning Ordinance and Map changes at its November 12, 2025, hearing. During the discussion, Commissioners raised questions regarding supportive housing, specifically whether state law requires supportive housing to be permitted in all residential and mixed-use zones, and which projects qualify for the streamlined permitting processes. To allow staff time to address these questions, the hearing was continued to a date certain, December 10, 2025. The Public Hearing Notice for the November 12, 2025, meeting was published in the Daily Republic on Wednesday, October 22, 2025, and notices were sent to 496 property owners within a 500-foot radius of the seven subject sites.

At the continued December 10, 2025, Planning Commission meeting staff, the project consultant, and legal counsel, reviewed the states legislation, and developed and presented a series of updates that meet the state criteria, particularly as it relates to transitional and supportive housing, while retaining as much local authority as possible to regulate specific types of uses in zoning districts where housing is already allowed. The Planning Commission unanimously approved resolution PC2025-09 recommending that the City Council adopt the proposed actions.

The City Council item, originally scheduled for December 16, 2025, was also continued to January 20, 2026, to accommodate the Planning Commission hearing continuation. The Public Hearing Notice for the City Council meeting was published in the Daily Republic on Wednesday, November 12, 2025, with the same 496 property owners notified.

ALTERNATIVE ACTION
The council may choose to deny any or all of the requests and not adopt the resolution or ordinance. The council could also direct staff to make changes to the proposed actions. In any of these instances, the 2023-2031 Housing Element implementation, as proposed, would not proceed. There is a February 7, 2026, deadline for adopting the required rezones to comply with state law. If an alternative action is chosen by the council, the city will likely miss the state mandated deadline to complete these changes.

Jurisdictions that do not comply with these mandates are also at risk of invalidation of the General Plan, loss of eligibility for state funding, not only related to housing, but for the services and infrastructure that accompany housing development, referral to the California Office of the Attorney General, court-imposed financial penalties, and the possible loss of local land use authority to a court-appointed agent.

STAFF CONTACT
Vicrim Chima, Senior Planner
(707) 428-7446
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A - General Plan EIR Addendum and Statutory Exemption Attachment 4: Exhibit B - General Plan Amendments
Attachment 5: Proposed Ordinance
Attachment 6: Exhibit A - Zoning Map Amendments
Attachment 7: HCD Letter of Inquiry, date December 16, 2025 Attachment 8: Planning Commission November 12 Staff Report Attachment 9: Planning Commission December 10 Staff Report Attachment 10: Planning Commission Resolution PC2025-09

CITY OF FAIRFIELD
RESOLUTION NO. 2026-13
APPROVING ADDENDUM (ER2025-0026) TO THE CITY OF FAIRFIELD GENERAL PLAN UPDATE AND CLIMATE ACTION PLAN ENVIRONMENTAL IMPACT REPORT (SCH 2021080289), AND APPROVING A GENERAL PLAN AMENDMENT (GPA2025-0003) FOR THE FOLLOWING ASSESSOR’S PARCEL NUMBERS (APN): (1) APN: 0027-370-280 AT WESTAMERICA DRIVE AND SUISUN VALLEY ROAD FROM HIGH DENSITY RESIDENTIAL TO COMMUNITY COMMERCIAL; (2) APN: 0027-370-300 AT MANGELS BOULEVARD AND SUISUN VALLEY ROAD FROM HIGH DENSITY RESIDENTIAL TO COMMUNITY COMMERCIAL; (3) APN: 0038-221-010 AT EAST TABOR

AVENUE AND RAILROAD AVENUE, FROM HIGH DENSITY RESIDENTIAL TO VERY HIGH DENSITY RESIDENTIAL; (4) APN: 0034-050-320 AT HEATH DRIVE AND PEACH TREE DRIVE FROM HIGH DENSITY RESIDENTIAL TO VERY HIGH DENSITY RESIDENTIAL; (5) APN: 0037-010-120 (1351

EAST TABOR AVENUE) FROM HIGH DENSITY RESIDENTIAL TO VERY HIGH DENSITY

RESIDENTIAL
WHEREAS, On February 7, 2023, the 2023-2031 General Plan Housing Element was adopted by the City Council; and
WHEREAS, On April 10, 2023, the California Department of Housing and Community Development (HCD) sent the City a letter indicating that the 2023-2031 Housing Element was in substantial compliance and met statutory requirements; and WHEREAS, The implementation of the 2023-2031 Housing Element requires amendments to the Fairfield Municipal Code (FMC), Zoning Map, and General Plan Land Use Designation Map; and WHEREAS, The candidate sites identified to be rezoned to accommodate shortfall housing need will meet the requirements of Government Code §65583.2, including but not limited to a minimum density of 20 units per acre and zoned to allow ownership and rental housing by right in which at least 20 percent of the units are affordable to lower income households; and WHEREAS, the Planning Commission approved Resolution PC2025-09 recommending the proposed General Plan Land Use Designation Map Amendments to council; and WHEREAS, the council has reviewed the proposed revisions to the General Plan Land Use Designation Map and finds these revisions are consistent with the General Plan, as it is an implementation measure of the 2023-2031 Housing Element and is therefore directly consistent with the General Plan; and
WHEREAS, An Initial Study/Addendum to the Final Environmental Impact Report (EIR) (ER2025- 0026) for the project has been prepared pursuant to the CEQA, which found that potential impacts from implementation of the General Plan Amendment were previously analyzed and mitigated by the General Plan EIR (SCH No. 2021080289). No subsequent environmental review

RES. NO. 2026-13

is required in accordance with Public Resources Code Section 21166 and State CEQA Guidelines Section 15162.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The EIR Addendum, as contained in Exhibit A, is hereby adopted.

Section 2. The General Plan Amendment, as contained in Exhibit B, is hereby adopted.

PASSED AND ADOPTED this 20th day of January 2026, by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________ _________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

Addendum to the City of Fairfield General Plan
Update and Climate Action Plan EIR for Housing
Element Sites Rezoning and Ordinance
Amendments and General Plan Amendments
Project
NOVEMBER 2025
Prepared for the City of Fairfield
Prepared by

EXIHIBIT A

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Table of Contents
1 Introduction ................................................................................................................1-1

1.1 Findings......................................................................................................................... 1-2 2 Project Description ......................................................................................................2-1

2.1 Project Title .................................................................................................................. 2-1

2.2 Lead Agency Name and Address.................................................................................. 2-1

2.3 Contact Person and Phone Number............................................................................. 2-1

2.4 Project Location............................................................................................................ 2-1

2.5 Project Background ...................................................................................................... 2-5

2.6 Project Description..................................................................................................... 2-11

2.7 Required Approvals.................................................................................................... 2-13

2.8 Other Public Agency Whose Approval is Required..................................................... 2-13 3 Environmental Analysis ...............................................................................................3-1

3.1 Aesthetics and Visual Resources.................................................................................. 3-4

3.2 Agriculture and Soil Resources..................................................................................... 3-8

3.3 Air Quality................................................................................................................... 3-11

3.4 Biological Resources................................................................................................... 3-18

3.5 Cultural and Tribal Resources..................................................................................... 3-24

3.6 Energy, Climate Change, and Greenhouse Gas Emissions ......................................... 3-30

3.7 Geology and Soils ....................................................................................................... 3-34

3.8 Hazards and Hazardous Materials.............................................................................. 3-39

3.9 Hydrology and Water Resources................................................................................ 3-46

3.10 Land Use and Planning ............................................................................................... 3-51

3.11 Mineral Resources...................................................................................................... 3-53

3.12 Noise........................................................................................................................... 3-55

3.13 Population and Housing ............................................................................................. 3-58

3.14 Public Services and Recreation................................................................................... 3-60

3.15 Transportation............................................................................................................ 3-64

3.16 Utilities and Service Systems...................................................................................... 3-68

3.17 Wildland Fires............................................................................................................. 3-73