Folsom Council agrees to cut 20 jobs in fiscal budget crisis

Facing a $3 million fiscal deficit, Folsom officials this week agreed to cut 20 city jobs. The Folsom City Council approved "Phase One" general fund cuts Sept. 23, including elimination of vacant positions and strategic reduction of others in the fire, police and finance/IT departments and the City Attorney's Office and library. The city also needs to "brown out" a fire engine to reduce overtime costs and will need to reassign fire trucks and the Apparatus Reassignment Plan. There are 20 total, mostly-vacant full-time positions eliminated across departments for a savings of $3.1 million, and ongoing full-year savings of $3.7 million, staff said. Folsom approved a $123 million 2025-26 fiscal budget last summer but had to dip into contingency funds for more than $3 million to cover the operational deficit. Additional cost-saving recommendations for Phase Two will be presented Oct. 14, authorities said. Beyond that, no other budget cuts are "out there," said City Manager Bryan Whitemyer. "Although this may appear to fill the current budget gap, the city is still facing challenging budget circumstances," said Whitemyer. "The city's quality of life infrastructure like trails, parks, playgrounds, sports fields, tennis courts and buildings need tens of millions of dollars to fund necessary capital improvements." Also, labor costs and other inflationary pressures continue to increase the cost of providing the most basic city services, he said. To address rising overtime expenditures while maintaining essential firefighting and emergency coverage throughout the city, the fire deptartment will implement a strategic reassignment of equipment, officials said. "This realignment allows the Department to eliminate one engine company while ensuring all six fire stations remain open and operational," staff said in the council report. The plan prioritizes suppression coverage in Folsom's highest-risk areas. The placement of Engine 38 at Station 35 preserves suppression capability in the city's highest fire risk area, which includes the Historic District and Central Business District, staff explained. Station 34, south of Highway 50, is the lowest fire risk zone in the city, with 100 percent of residential and commercial properties protected by automatic fire sprinklers, officials said. Relocating Truck 35 and AR35 to Station 34 ensures that specialty support is maintained in the zone with a lower suppression demand. Phase One discussions also included a significant subsidy for the Folsom Zoo, proposed changes to Information Technology Services, legal services and library services. With projected revenues of $736,500, the Zoo Sanctuary will require a subsidy of $1.8 million to support its operations this year, said Whitemyer. "The City should actively explore ways to hand the facility to the Friends of the Folsom Zoo Sanctuary or another interested non-profit," staff said in his report. Friends of the Zoo officials said Tuesday the nonprofit is already working on an economic transition study. "We've got to be careful about messing with the zoo," said Loretta Hettinger from the floor to applause. Whitemyer said some are concerned the city may be moving too quickly to balance the budget. However, the manager feels an operating budget deficit over multiple years is bad for stability and employee morale. "In the past year, the City has lost several highly skilled employees to other jurisdictions with more stable financial conditions, and continued fiscal instability increases the risk of additional workforce loss," said Whitemyer in his report. "This is a difficult but necessary decision," said Mayor Sarah Aquino. The second phase of cost-saving proposals scheduled for next month includes reorganizing city services in Community Development, Parks and Recreation, Public Works and Environmental Water Resources.