The problem isn't the street light lighting your fence. It is the color of the light and the light that is not hitting your fence that is the issue. Both can be addressed to a large degree.
When I moved into my home I had a halogen flood lamp with a motion sensor. I have since replaced it with a series of downward facing small LEDs that put out just the light I need and where I need it. I'm still playing around with it but it is not obtrusive to my neighbors and looks much better. Bonus they are solar powered.
Personally I don't think the city should be responsible for lighting your fence. It's your fence, you can light it and do it in a way that isn't overly intrusive.
