Folsom adopts $266 million budget

Folsom adopted a $266 million fiscal budget last week before the July 1 deadline. The Folsom City Council adopted the 2025-26 operating fiscal budget at the regular June 24 meeting. The package includes a general fund with projected revenues of just under $120 million and expenditures of $123 million, said Folsom Communications Officer Chris Shepherd. A projected $3 million shortfall in the General Fund will be covered using the city's unassigned fund balance, often referred to as rainy day reserves, he said. The adopted budget reflects Folsom's continued commitment to maintaining essential services in a constrained fiscal environment, said Shepherd. While overall tax revenues are expected to increase modestly, rising operational costs and infrastructure needs continue to place pressure on city finances, staff said in the report. Sales tax, one of the city's core revenue sources, is expected to remain flat at $27.9 million. No new General Fund programs are funded in this budget. "As the cost of delivering services continues to outpace revenue growth, the city must make difficult choices to live within its means," Shepherd said. "These reductions are likely to affect the level of service the city can provide in the future." "The proposed budget focuses on maintaining essential core services and addressing urgent capital needs such as roof replacements at city facilities," said Mayor Sarah Aquino. "The City Council is committed to making fiscally responsible decisions to ensure the long-term health of our community and its infrastructure as we face challenges in our financial future." "The city must continue to reduce expenditures to live within its means, which will affect future services," said City Manager Bryan Whitemyer. "We will work closely with the community and City Council through a new budget review process that promotes transparency and accountability." New budget review process The city is implementing a new multi-stage budget review process: · July-September 2025: Departments will submit cost-cutting proposals for fall review. · Fall 2025: Community workshops and engagement opportunities will be held. · September or October 2025: The City Council will review the budget alongside final FY 2024-25 fund balances and community feedback. · February or March 2026: A Mid-Year Budget Review will be presented with adjustments and potential FY 2026-27 cost-saving measures. Highlights of the FY 2025-26 budget · Library HVAC and roof replacement. · City Hall low slope roof replacement. · Fleet small vehicle repair shop roof replacement. · Fire Department electrocardiogram monitor purchase. · Development of the 2025 Urban Water Management Plan and Water Master Plan. · Water Treatment Plant HVAC upgrades and roof replacement.