Agenda Item No: L.1
AGENDA REPORT
DATE: June 16, 2026
TO: Acting Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolutions 2026-114 through 2026-118 and Housing Authority Resolution 2026 - 03 FN Mid-Cycle Update for Fiscal Year 2025-26 and 2026-27
Joint Public Hearing for the City Council of the City of Fairfield and Housing Authority Adopting Resolutions 2026-114 through 2026-118, Housing Authority Resolution 2026 -03 Approving the Mid-Cycle Update to the Fiscal Year 2025-26 and 2026-27 Budget and Financial Plan
Funding Source: Various
Contact: John Furtado, (707) 428-7629
RECOMMENDED ACTION
Hold public hearing and adopt resolutions.
STATEMENT OF ISSUE
The attached resolutions are comprised of the fiscal year (FY) 2025-26 and FY 2026-27 Mid-Cycle Budget Update. The Mid-Cycle Budget Updates for the aforementioned fiscal years are available as a written document and on the City’s website.
DISCUSSION
The proposed resolutions will do the following:
Budget Adoption – approves the budgets for the City and Housing Authority.
Includes approval of the fee amendments that are adjusted annually effective July 1, by the percent change in the Consumer Price Ind ex. Includes city manager’s authority to utilize designated reserve for Landscaping and Lighting Maintenance District ( LLMD) refunds.
General Obligation Debt Rate – approves General Obligation Bond property tax rates for the costs of the North Bay Aqueduct.
Proposition 4 Appropriations Limit – approves the FY 2026 -27 Proposition 4 appropriations limit as required by State law. Fairfield continues to be under this State - defined limit.
Assembly Bill (AB) 1600 Update – an annual findings resolution required by State law on the status of AB 1600 fees that have been deposited with the City (the resolution itself does not change AB 1600 fees).
Vehicle Replacement Fund Purchases – approves the vehicle and equipment purchases for FY 2026-27.
Continued Discussion around Relief Staffing
The Fire Department’s overtime continues to add pressure to the general fund deficit with FY 2025-26 estimated to exceed budget by over $1M for the sixth straight year. The primary driver is the combination of increased occupational injuries and the need to maintain minimum staffing levels. This combination negatively impacts our personnel and our budget through the mandatory overtime required to fill vacancies. To reduce mandated overtime and decrease the associated burden on the Fire Department’s staff and budget, the City is recommending the addition of nine relief staffing firefighters. Although there will be one-time costs of approximately $1.3M in year one, this model is expected to generate direct cost savings of approxi mately $100,000 annually. There are expected secondary impacts of reduced injuries, increased health and well-being of staff, and potentially reduced costs as a result of decreased injuries.
What is Being Requested?
Nine additional firefighter/paramedic positions which equate to three per shift The additional three will not become part of minimum staffing Referred to as over hires, additional staffing is intended to cover up to three vacancies per day without requiring overtime to backfill
Key Operational Impacts:
1) Relieve Unsustainable Overtime and Reduce Costs
Current staffing relies heavily on mandatory overtime to meet minimum daily staffing.
Adding nine firefighters will significantly reduce overtime, creating a more sustainable staffing model.
2) Improve Firefighter Health, Safety, and Retention
Firefighters working 48-hour shifts are frequently held over, contributing to fatigue, burnout, and injury. Increased staffing will reduce injury-on-duty hours, improve recovery time (mental & physical), and help prevent further medical retirements.
3) Improve Community Safety and Response Times
Well-rested, fully staffed crews respond faster and operate more effectively.
Injury on Duty (IOD) & Vacancy Stats
4.5 – average number of vacancies per day 2025 and 2026 year to date (YTD) Sharp and sustained increase in IODs beginning in 2021 o 2021 – 7th company deployed and minimum staffing jumped to 21
As workload has increased, so has the toll on personnel. IOD hours have grown tenfold—from an average of fewer than 1,000 hours annually prior to 2020, to an average of nearly 10,000 hours per year over the past five years. In 2023 alone, the Fire Department recorded 12,895 injury hours, the equivalent of 4.4 full-time firefighters lost for the year. Each absence tri ggers backfill overtime, fueling a self-perpetuating cycle of fatigue, increased injury risk, and higher costs.
2018 2019 2020 2021 2022 2023 2024 2025
IOD
Hours 943 458 3,517 10,466 10,169 12,895 9,059 6,701
FINANCIAL IMPACT
Fiscal impacts are discussed comprehensively in the published budget document.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
Public notice was published in the Daily Republic on May 31, 2026, and June 7, 2026.
ALTERNATIVE ACTION
The following alternative actions are possible:
Budget – Revise resolutions. State law does not require a specific form of budget, but it is fiscally prudent to authorize a spending plan for each fiscal year. General Obligation Debt Rate – Do not approve property tax rates. This would shift $435,671 of costs to the General Fund.
Proposition 4 Appropriations Limit – State law requires the adoption of this limit with the annual budget. The limit factors are defined by the State. AB 1600 Update – State law requires that annual findings be adopted, which the City does at the time of budget adoption.
Vehicle Replacement Fund Purchases – Do not approve vehicle and equipment purchases for FY 2026-27. This would cause increased delays in the purchase of necessary vehicles and equipment.
COORDINATED WITH
N/A
STAFF CONTACT
John Furtado, Director of Finance
(707) 428-7629
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution Approving City of Fairfield Budget Attachment 3: Proposed Resolution Approving Housing Authority Budget Attachment 4: Proposed Resolution Approving General Obligation Bond Property Taxes Attachment 5: Proposed Resolution Establishing Prop 4 Appropriation Limit Attachment 6: Exhibit A – Prop 4 Appropriation Limit
Attachment 7: Proposed Resolution Making Annual AB 1600 Impact Fee Findings Attachment 8: Proposed Resolution Approving Vehicle and Equipment Purchases for FY 2026-27 Attachment 9: Exhibit B – Vehicle and Equipment Purchases