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
CITY OF FAIRFIELD
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 self
sufficient 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