First public meeting, discussion set for Oct. 21 at City Hall
FOLSOM – The City of Folsom will soon begin a detailed evaluation of its water and sewer rates, a process designed to balance long-term operational needs with fairness for customers. The first public discussion will take place Tuesday, October 21, at the city’s Utility Commission meeting, scheduled for 6:30 p.m. inside the Council Chambers at City Hall, 50 Natoma Street.
City officials describe the upcoming rate study as an essential step to ensure the sustainability of Folsom’s water and wastewater services, which must operate under strict legal requirements. By state law, municipalities cannot charge more than is necessary to cover the actual cost of delivering these services, including expenses tied to operations, maintenance, and capital improvement projects.
The study will develop both five-year and ten-year financial models to help the city forecast future needs. A consultant team will lead the effort, examining system costs through a cost-of-service analysis that looks closely at how expenses are distributed across different customer groups, such as residential and non-residential users. The analysis will also explore the balance between fixed charges and usage-based fees.
Folsom last completed a water and wastewater rate study in 2019. Since then, the Environmental and Water Resources Department has continued to track revenues and program costs on an annual basis. Officials say an updated study is needed to validate whether current rates accurately reflect the true cost of service as the city continues to grow and infrastructure demands evolve.
“The goal is to make sure the city is not over-collecting from ratepayers, while also protecting our ability to maintain high-quality water and wastewater services,” city staff noted in project materials. “Keeping our financial models current ensures the system remains reliable for residents and businesses alike.”
Recommendations from the consultant team are expected to be delivered to the Folsom City Council in summer 2026. At that time, councilmembers will consider the proposed changes and decide whether to implement adjustments to the city’s rate structure.
Public involvement is expected to play a key role throughout the process. In addition to the October 21 meeting, the city plans a series of outreach efforts that will include a weekend workshop, multiple presentations to the Utility Commission, and at least three presentations to the City Council. Updates will also be posted online, where residents can access meeting recordings, frequently asked questions, and, by next year, a rate calculator to help households estimate how proposed changes might affect their bills.
The process began with a project kick-off meeting in July 2025, where city staff and consultants outlined objectives and established a schedule. Officials emphasize that transparency and community engagement will be emphasized at each stage as data is collected and analyzed.
The city is encouraging residents to stay informed and participate as opportunities arise. More information, including updates and educational materials about the rate study process, is available at www.folsom.ca.us/ratestudy.
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