Draft budget provides for 11 of 71 requested positions; proposes use of unassigned funds for renovation of Castle Park
Folsom City Council has its share of homework to do in the weeks ahead, and much of it will be in the subject of math. Tuesday night, Council Members received the first draft of the proposed Fiscal Year 2024-2025 budget presented by City Manager Elaine Andersen and City Finance Director Stacey Tamagni.
Tuesday’s presentation of the budget was just that, with no immediate action requested as it was the first opportunity for council, as well as members of the community to see what lies ahead when it comes to the City of Folsom balancing its financial challenges in the year to come, as well as the years that follow where a budget shortfall is on the horizon. As Andersen put it, the results of the proposed budget are, “not catastrophic, but not ideal,” in the multi-page product that she and city staff have focused on closely for the last several months in an effort to balance the scales between needs and the resources to provide those needs.
“I know having the job that I have right now, I’ve had great insight into the development of this,” said Mayor Mike Kozlowski as council engaged in some initial discussion about the presentation they will further review in detail. “I want to also thank all of the staff for pitching in on this. I know that it’s a challenge to get our heads wrapped around the real needs and to come up with an operating strategy that matches up with the budget that is more challenging.”
While Tuesday’s presentation sent council members home with a thick book packed with pages that breakdown the proposed budget department by department, Andersen noted some of the significant items within the draft during Tuesday’s presentation. Following the release of the budget, council members have several weeks to review the data and deliberate over options in the budget as part of the approval process and must approve it by June 30, or it will go forth as drafted and presented.
To see Tuesday’s entire presentation of the proposed FISCAL YEAR 2024-2025, including all pages and slides CLICK HERE.
To see the entire proposed 2024-2025 operating budget including all departments CLICK HERE
The total proposed budget presented Tuesday came in at a total of $247,216,308. Last years adopted budget, in comparison was $246,270,937. The general fund portion of the overall budget present is proposed at $117,069,047, in 2023-2024 that figure was at $108,560, 133. During the initial presentation, Andersen noted that Folsom’s annual budget still continues to grow, however at a slower rate.
Additionally, it is being proposed that the city utilize $1,737,599.00 from its unassigned fund balance for two key needs in the city. The first of those needs being suggested for unassigned fund balance use include the restoration and replacement of Kids Play Park, also known as Castle Park where deterioration of the longtime unique play structure and other features have reached a point where Folsom Parks and Recreation have considered permanent closure of the park for safety concerns. According to city staff, the estimated cost to renovate the park will require $1,100,000 from the city’s reserve funds as suggested.
Additional items proposed for funding out of the reserves and not the forthcoming budget include $497,599 for the replacement of kitchen equipment, tables and chairs at the Folsom Community Center in which staff reports are aged and pose safety concerns to staff and renters. A proposed $80,000 is side marked for the unassigned fund balance draw to replace malfunctioning doors and the lighting control system in the Folsom Public Library. An additional $60,000 is proposed to be used to replace the city’s primary data storage system, in which city staff report has reached the end of its life.
When it came to the heart of the proposed budget Tuesday night, major proposals within it surround public safety. The proposed draft included the funding of the previously requested Homeless Outreach Team (HOT Team) for the Folsom Police Department. The team would consist of six positions to the department, including one Sergeant, one Corporal and a total of four officers dedicated to focusing on the city’s growing homeless issues. This additional, as proposed, would also shift encampment responsibilities from City Code Enforcement to the Police Department, as requested by Folsom Police Chief Rick Hillman.
An additional public safety addition in the budgets major proposals into a Division Chief for the Folsom Fire Department, a position that was eliminated in 2008. The position is deemed essential barring the growth and footprint of the department as well as the need for training leadership.
Major proposal surrounding parks include funding for Folsom’s 140 acres of new parks, 30 miles of trails and trail bridges that are planned for south of highway 50 as well work needs related to supporting renovation needs of the city’s existing parks and facilities. In alignment with this, the proposal calls for an additional Park Planner II position as well as an additional maintenance worker for the Parks and Recreation Department, primarily for the Folsom Plan Area south of Highway 50.
Another item amongst the major proposals include the city’s conversion to a Bluebeam plan check program and cloud based software to improve service and efficiency to the city’s Community Development Department customers that are often backlogged.
With the highlighted major proposals Tuesday night, came the somewhat gloomy side of the budget proposal that pointed out what the city “cannot” do in the budget ahead. Among those items pointed out in the explanation of “what not fully funded,” looked like was a future decline in park maintenance, a proposed $930,000 need for requested police vehicles being capped at $500,000 and being unable to fund additional firefighters ahead once Folsom’s Fire Station 34 opens, which will force an increase in overtime costs.
“This is just a sampling. There are hundreds of examples, “Andersen noted in her detailed presentation.
While it was noted that all departments will still have a bigger budget ahead than last year as proposed, rising costs abroad will still come up short when it comes to department needs, especially staffing. Prior to Tuesday, Andersen reported that there were requests for 71 positions and over $38.7 million worth of asks for the General Fund. The proposed budget comes in with 11 positions, 8 of which are funded in the budget itself and $3.4 million in requests being funded.
It was noted that the city has at least $20 million annually of unfunded or underfunded needs citywide, much of which can be attributed to the combination of flattening sales tax revenues, service level growth needs south of Highway go and the decline in the city’s unassigned fun balance, otherwise known as a “rainy day” fund.
“Cities that have additional revenue sources are able to do a lot more than we are able to do right now, not to say that we don’t have to be careful with what we spend money on and not to say that we don’t need to seek revenue sources other than what we talked about, but we have a means to get ourselves back on course,” added Kozlowski, who then compared the analysis showing Folsom’s rise in needs compared to its available funds to that of sailing.
“If you’re sailing and the wind keeps picking up it makes you go faster in the wrong direction, unless you change course.”
When it’s all broken down, the proposed general fund of the 2024-2025 budget currently will allocate the following percentages of the General Fund Appropriations. Public safety will eat up over half the appropriations with Fire at 26% and police at 25%; Culture and Recreation has 17% allotted; General Government funds take up 11%; Public Works 8% and Community Development 6%.
On the revenue side of the proposed budget, proposed revenue for the 2024-2025 budget is $115,331, 448. In the previous fiscal year budget that figure was $180,560,133. The components making up the proposed figure include property tax revenue of $44,658,430, which is up by more than $4,000,000 this year. Sales tax revenue is flat at $29,075. Transient occupancy tax is 2,500,00; Charges for services $13,994,978; Licenses, permits and VLF $14,418,031 and all other revenue streams at $4,577,087.
“The largest part of the challenge that we are facing is that while we do get some additional revenue each year, but it’s nowhere near enough to keep up with the demands of maintaining everything that we own,” Kozlowski added as they wrapped up the agenda item for the evening. “The fact that we were able to add officers to the police department this year and a training chief for fire and do and some other small projects… those are all great, but the list behind them is absolutely a mile long of things that everybody would like to be able to do. The Folsom that we expect and the Folsom we can afford are two radically different things right now, so I would just take that into account as talk though some items in this budget and as we look forward to an election ahead. Cities that have that additional revenue source, (i.e. special tax measures etc.) are able to do a lot more than we are right now.”
To see the entire proposed 2024-2025 operating budget including all departments CLICK HERE
To see Tuesday’s entire presentation of the proposed FISCAL YEAR 2024-2025, including all pages and slides CLICK HERE.
Council officially puts citizen led tax measure on November ballot
As Kozlowski reference special tax measures in other neighboring cities that are making a difference, such may be in the cards for Folsom ahead after additional business handled by Council Tuesday related to revenue but aside from any budget talks. Later in the evening, as required by law, a procedural resolution was passed to formally place the citizen-led Folsom Residents Public Safety and Quality of Life measure on the November 2024 ballot to allow Folsom voters to decide on a special sales tax that would fund: Police and crime reduction; Fire, rescue, and emergency medical services;Parks, recreation facilities, and trails; Traffic mitigation and environmental water quality;Community enhancement and economic development and Major capital improvement projects. The proposed 1% increase will be determined by Folsom voters in November.
