City outlines funding gaps, long-term strategy and potential Prop. 218 actions for affected neighborhoods
Folsom City Council on Tuesday approved the city’s annual landscaping and lighting district engineer’s report, as staff detailed mounting deficits in several neighborhoods and outlined a multi-year plan to address underfunded maintenance obligations through property owner outreach and future Proposition 218 proceedings.
The resolution authorizes continued collection of assessments within Folsom’s 30 landscaping and lighting districts for fiscal year 2026–27, but staff made clear that several districts — particularly those formed before 1996 — are struggling to keep pace with rising maintenance expenses.
Landscaping and lighting districts were established when developments were approved to fund neighborhood amenities such as landscaped entries, irrigation systems, lighting, trails, open space corridors and monument signage. Property owners within each district pay assessments dedicated solely to maintaining those improvements.
However, 14 of Folsom’s 30 districts were formed prior to the passage of Proposition 218 and lack built-in annual inflation adjustments. Without escalation mechanisms, assessments in those districts have remained largely static for decades even as labor, utilities and material costs have steadily climbed.
Staff illustrated the inflationary gap by noting that $1 in 1990 now requires approximately $2.76 to purchase the same level of service.
“That’s the math working against some of these districts,” staff explained during the presentation.
As a result, several districts have drawn down reserves to preserve landscaping and lighting standards. Those balances are now depleted or rapidly shrinking.
Briggs Ranch currently shows a negative fund balance of roughly $276,800 as of December 2025. Broadstone Units 1 and 2 combined carry a deficit exceeding $800,000. Hanford Cross also reflects a negative position, and other districts are projected to fall into deficit within five years if assessment levels remain unchanged.
City staff has identified Briggs Ranch, Hanford Cross and Broadstone Units 1 and 2 as priority districts for Proposition 218 outreach in fiscal year 2026–27. Cobble Ridge II and Reflections II are expected to require similar proceedings in subsequent years.
Under Proposition 218, property owners must approve any assessment increases through a mailed ballot process before the city can adjust rates.
To improve transparency, staff announced that future engineer’s reports will include amortization schedules for each underfunded district. Those schedules will clearly show accumulated deficits, projected shortfall growth and potential repayment timelines.
In Briggs Ranch, for example, the existing deficit equates to approximately $420 per single-family equivalent unit if divided evenly today. If repaid over 15 years, that debt component alone would amount to roughly $28 per year per household — separate from any new assessment required to align revenues with actual maintenance costs.
Mayor Justin Raithel, who resides in Briggs Ranch, commended staff for proactively notifying residents.
“I thought the letter was well done,” Raithel said. “It’s good to get ahead of this conversation.”
Staff also noted that additional districts remain solvent today but are forecasted to enter deficit positions within five years if assessments remain flat.
In addition to adopting the annual engineer’s report, the city has revamped its landscaping and lighting district webpages to provide easier public access to budgets, financial documents and explanatory materials. Officials also encouraged residents to apply for open seats on the Landscaping and Lighting District Advisory Committee, which reviews district budgets and provides input before council consideration.
While no assessment increases were approved Tuesday, the discussion made clear that several neighborhoods will likely face decisions in the coming year about whether to raise assessments or accept reductions in service standards.
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