Folsom’s newly adopted $308 million operating budget officially takes effect Tuesday, July 1, launching the city’s financial plan for the 2026-27 fiscal year and funding everything from public safety and parks to major infrastructure improvements throughout the community.
The budget, approved by the Folsom City Council during its June 9 meeting (see Folsom Times June 10 city council story), is designed to maintain essential city services while continuing strategic investments in roads, utilities, parks and other long-term community priorities despite ongoing financial pressures from rising operational costs and aging infrastructure.
City officials said the spending plan reflects a balanced approach that preserves core services while keeping city reserve levels above established policy requirements.
While revenues are expected to increase modestly during the coming fiscal year, officials noted that rising costs continue to challenge the city’s long-term financial outlook. Sales tax, one of Folsom’s primary revenue sources, is projected to remain flat at approximately $28 million, while property tax revenue is expected to increase about 3 percent to an estimated $49 million.
“Every budget requires thoughtful choices, particularly in a constrained fiscal environment,” City Manager Bryan Whitemyer said. “This budget balances today’s operational needs with tomorrow’s infrastructure priorities by focusing on core services, maintaining healthy reserves, and investing strategically in core infrastructure projects.”
The adopted budget includes funding for a wide range of projects across the city, including continued planning and design for the Empire Ranch Road Interchange, roadway maintenance through pavement rehabilitation, crack sealing and slurry seal treatments, and improvements within the Central Business District.
Additional projects funded in the budget include Riley Street sidewalk improvements, bridge preventive maintenance, traffic flow and safety improvements, development of Benevento Family Park and Jackrabbit Hill Park, construction of Folsom Plan Area Neighborhood Park No. 2, Southeast Connector Class I Trail construction and trail renovations, sewer rehabilitation in the Historic District and surrounding neighborhoods, water and wastewater infrastructure rehabilitation projects, and continued upgrades to the city’s water treatment plant.
“The adopted budget reflects the City Council’s commitment to delivering the services residents rely on while planning responsibly for Folsom’s future,” Mayor Justin Raithel said. “We’re making strategic investments that strengthen our infrastructure, support our neighborhoods, and protect our community’s long-term financial health.”
The budget serves as the city’s spending plan for the services residents use every day, including police and fire protection, parks and recreation, street maintenance, water and sewer operations, community facilities, solid waste services, permitting and other municipal operations.
Although the budget is balanced, city officials acknowledged that many public facilities and infrastructure systems continue to age and will require significant investment in the years ahead. While the current spending plan funds important maintenance and capital improvement projects, officials said many long-term infrastructure needs remain unfunded and will require continued planning, prioritization and future investment.
The city will continue monitoring its financial performance throughout the fiscal year. Staff is expected to present a fiscal year 2025-26 closeout update along with a first-quarter 2026-27 budget update this fall, followed by a comprehensive mid-year budget review in February to evaluate revenues, expenditures, capital projects and any necessary budget adjustments.
Additional information about the City’s fiscal year 2026-27 budget is available at folsom.ca.us/budget.
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