What is this project all about?
The City of Folsom provides essential public services and facilities that maintain and protect our community's high quality of life. City employees provide the services that residents tell us they value most, including:
- rapid response in 911 emergencies
- quality parks, trails, and open spaces
- safe streets and roads
- engaging recreation venues and programs
- abundant arts and cultural opportunities
- needed social services, and more.
The city makes every effort to use resources wisely. The city is committed to providing these services to our community in a fiscally responsible manner.
The city is in a solid financial condition as we emerge from the worst of the COVID-19 pandemic. In recent years, we have taken active steps to improve efficiency and service delivery in a fiscally sound manner to maintain a balanced budget. Our goal is to continue to earn and keep your trust as we provide vital programs and services to the Folsom community.
As with so many cities across California and the nation, the COVID-19 pandemic significantly impacted our city budget. We lost over $20 million during the pandemic that has not been replaced. To respond and meet the moment, we tightened our belts at City Hall and made needed cuts to ensure the continuity of the most critical services and programs valued by our community.
Current status: The City is not facing an immediate financial problem today. However, as we plan for the future, our two-to-three-year projections tell a different story. Without additional revenue, it will be difficult to maintain Folsom's high quality of life and meet the ever-growing demands for city programs and services into the future.
Accordingly, we are now considering options to address city needs responsibly. We are engaging with our community to ensure residents have their say in important decisions.
What are the city’s greatest and most urgent needs?
- Public safety: Provide 911 emergency medical and firefighter response, crime prevention, and neighborhood police patrols.
- Wildfire protection: Implement wildfire prevention strategies and provide fire protection services.
- Disaster preparedness: Work to mitigate, prevent, and prepare for potential disasters and emergency situations.
- Parks & trails: Maintain existing city parks and trails. Build new high-quality parks where planned.
- Street repairs: Repair potholes and improve city streets/roads, sidewalks, drainage, and street medians.
- City facilities: Provide and maintain city amenities, including the library, sports complex, aquatics center, and the Folsom City Zoo Sanctuary.
- City programs: Provide a wide array of recreation programs serving youth and adults.
What is the city doing to manage its finances responsibly?
The city focuses its resources on providing direct services to Folsom. During the worst time of the COVID-19 pandemic, the city did not reduce service levels. Rather, we utilized existing cash reserves to fund ongoing operations to meet community needs. The city also reduced expenses by deferring millions of dollars of capital improvements and maintenance and reducing staffing levels.
Why does the city need more funding?
The General Fund of the city's budget provides funding for services, programs, and facilities. Due to rising costs and slowing revenue growth, our revenue has fallen short of our expenses. Additional funding is vital to maintaining city services. Deferred maintenance is also a challenge, which will become more expensive the longer it is delayed.
How has the city involved the community in this effort?
To help protect vital city services and Folsom's quality of life, city leaders have been evaluating all possible options for generating additional revenue to address identified needs.
No decisions have been made yet – and none are expected until at least summer 2022. The city is currently engaging in a listening initiative and community conversation to inform future decisions to address our challenges.
What possible solutions have been identified?
City leaders continue to evaluate possible funding options for generating additional revenue with the least impact possible on Folsom residents. No decisions have been made yet – city leaders are assessing multiple options that would help raise revenue to close the projected funding gap and protect Folsom residents' quality of life. Options being discussed include placing a possible revenue measure on the November 2022 City of Folsom ballot.
This possible revenue measure would mean a modest increase to Folsom's city sales tax, a step that would require local voter support to go into effect. This particular option would ensure that visitors pay their fair share for the use of Folsom services while not impacting certain essential purchases like groceries, prescription medications, and medical appointments. Local governments rely on sales tax revenue to fund essential local public services. Sales tax revenues would go to the general fund and give city leaders the ability to fund important community services and upgrade or rebuild facilities that support these programs.
What would funds raised by a possible measure go towards?
Funds generated by the proposal now being considered would go directly into the city's General Fund to help fund essential services, including public safety, wildfire protection, disaster preparedness, parks & trails, street repairs, city facilities, and city programs.
If no decisions have been made yet, when will that happen?
Again, no decisions have been made yet. If the City Council decides to place any revenue measure on the November 2022 ballot, the measure will need to be filed with the County Registrar of Voters by August 1, 2022.
