As new neighborhoods continue to take shape south of Highway 50, the Folsom City Council has approved a new financing district that will help pay for roads, parks, and public services tied to upcoming housing in the area. On Tuesday, the council voted to establish a new Community Facilities District (CFD 20-1) that applies to 118 planned homes in the Russell Ranch development.
The new CFD applies to 118 multifamily, low-density units planned within the Russell Ranch project and will levy special taxes on the properties once developed. Council approved all associated resolutions and introduced the first reading of the ordinance that will formally authorize the collection of these taxes.
According to the city staff report, the Russell Ranch Phase 2 Village 5 project is part of the broader Folsom Plan Area and lies within the boundaries of CFD 19-1, which covers a large portion of new development south of Highway 50. CFD 20-1 will act as a supplemental overlay, generating additional funding specifically for local infrastructure, maintenance of public facilities, and municipal services in the immediate project area.
The 118 planned residential units will be subject to special taxes ranging from $1,280 to $1,500 annually, depending on the size of each unit. The rates are designed to escalate each year by 2%, a provision built into the district’s financial structure to keep pace with inflation and rising service costs.
While the area currently has no building permits or certificates of occupancy issued as of April 30, the city is preparing the financial groundwork for eventual occupancy. The total projected tax burden for developed residential properties in Village 5—including the base CFD 19-1 and new CFD 20-1 overlay—is expected to be approximately 1.8% of property value. That rate remains within the city’s adopted policy limit, which aims to keep the combined tax rate under 2% for new residential areas.
“This district will ensure that essential services and infrastructure continue to be funded as new homes are built,” the staff report noted. “It is consistent with the City’s goals to provide financial tools that align with the needs of growing neighborhoods while staying within established fiscal limits.”
As required under Proposition 218 and California law, a landowner election was held prior to formation. Since the property is currently held by a single owner, they were the sole voter and voted in favor of the district’s creation.
The CFD formation includes a provision to issue bonds in the future to finance major infrastructure work, if necessary, though no bonds have been authorized at this stage. The city will continue to monitor the timing of development and assess future funding needs accordingly.
The Russell Ranch project, developed by The New Home Company, is one of several large residential communities underway in the Folsom Plan Area. Village 5 is anticipated to include various housing types, parks, open space, and pedestrian connections to the broader neighborhood.
To review the complete staff report and supporting documents related to CFD 20-1, visit the official agenda packet HERE.
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