Folsom, Calif. – At its September 23 meeting, the Folsom City Council unanimously approved the first phase of cost-saving measures to address the city's $3 million General Fund shortfall for Fiscal Year 2025-26.
The meeting was part of a multi-stage budget process that aims to realign spending with revenues while preserving core services.
Eliminates positions
The adopted plan eliminates 20 positions, 15 of which are currently vacant, and restructures services within the Police, Fire, Finance, Library, Information Technology, and City Attorney's departments. Five currently filled positions will be eliminated, including two GIS roles, two IT positions, and a legal secretary. To bridge service gaps, the city plans to contract out select IT and GIS services.
To reduce overtime costs while maintaining emergency services, the Folsom Fire Department will realign its staffing and equipment. Resources will be shifted to prioritize suppression coverage in the city's highest-risk areas and to maintain advanced life support ambulance service citywide. One engine company will be eliminated, but all six fire stations will remain open and operational. The department will reassign equipment and personnel across stations, with coverage adjusted to match community risk levels.
Over $3 million in savings expected
These changes are expected to save $3.1 million in the current fiscal year and $3.7 million annually starting in Fiscal Year 2026-27.
The City Council also reviewed the Folsom City Zoo Sanctuary's $1.6 million annual subsidy and discussed exploring alternative management options due to the significant cost. Councilmembers acknowledged that sustaining this level of subsidy is not fiscally viable. A follow-up discussion is expected in the coming months.
Phase 2
The second phase of proposed reductions will be presented at the October 14 City Council meeting. That phase will focus on service reorganizations within Community Development, Parks and Recreation, Public Works, and Environmental and Water Resources. This phase is not expected to involve additional layoffs. Instead, staff will propose cost-saving strategies through staffing adjustments and the use of special revenue funds.
Public Invited: October 14th
The October 14 meeting begins at 6:30 p.m. in Council Chambers at Folsom City Hall, 50 Natoma Street. Residents are encouraged to attend, learn more, and provide input on city services and priorities.