Fairfield council weighs refunds, service cuts after court ruling on assessment districts

Fairfield’s City Council spent the bulk of its April 21 meeting grappling with the fallout from a Court of Appeal decision and a related stipulated judgment that ordered refunds for a Rolling Hills landscape and lighting maintenance district (LLMD No. 7) and constrained future assessments.

City Attorney David Lim told the council the Thacker ruling was legally narrow — it applied directly only to LLMD No. 7 — but that five other districts formed before Proposition 218 took effect in 1996 (LLMD Nos. 3, 6, 8, 12 and 13) share similar factual histories and are at high risk of facing successful legal challenges if the city continues to levy amounts that exceed 1996 levels without a voter authorization. “The Thacker ruling in the court of appeal is a narrow decision legally,” Lim said, but added that, “in my opinion, if we were to face a challenge from any individual in those five LLMDs, we would probably have the same result.”

Lim and Public Works staff outlined the tradeoffs and fiscal impacts. Staff reported district balances are low and much assessment revenue has already been spent on landscaping and lighting services; refunds of amounts already expended would therefore likely require general‑fund dollars.…