Budget maintains core services and funds key infrastructure projects
Folsom, Calif. – At its June 9 meeting, the Folsom City Council adopted a $308 million citywide operating budget for the 2026-27 fiscal year, which begins July 1.
The adopted budget reflects the city's commitment to maintaining essential services in a constrained fiscal environment while strategically investing in critical infrastructure and long-term community priorities.
Property Tax increase
While revenues are projected to increase modestly, rising operational costs and infrastructure needs continue to place pressure on city finances. Sales tax, one of the city's primary revenue sources, is expected to remain flat at $28 million. Property tax is projected to increase by approximately 3% to an estimated $49 million in FY 2026-27.
"Every budget requires thoughtful choices, particularly in a constrained fiscal environment," said City Manager Bryan Whitemyer. "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 FY 2026-27 budget funds a range of citywide projects and initiatives, including:
- Empire Ranch Road Interchange planning and design.
- Roadway maintenance, including pavement rehabilitation, crack sealing, and slurry seal treatments.
- Central Business District revitalization improvements.
- Riley Street sidewalk improvements.
- Bridge preventive maintenance projects.
- Traffic flow and safety improvements.
- Benevento Family Park and Jackrabbit Hill Park development.
- Folsom Plan Area Neighborhood Park #2 development.
- Southeast Connector Class I Trail construction and trail renovations.
- Sewer rehabilitation in the Historic District and surrounding areas.
- Water and wastewater infrastructure rehabilitation projects.
- Water treatment plant rehabilitation and technology upgrades.
"The adopted budget reflects the City Council's commitment to delivering the services residents rely on while planning responsibly for Folsom's future," said Mayor Justin Raithel. "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 services residents rely on every day, including public safety, parks and recreation, street maintenance, water and sewer service, community facilities, waste service, permitting, and other core city operations.
Although the budget is balanced, many of the city's public assets are aging and will require significant investment in the years ahead. While the budget funds important capital projects and ongoing maintenance, many long-term infrastructure needs remain unfunded and will require continued planning, prioritization, and investment.
The budget maintains city operations while keeping reserves above the city's policy requirements. The city will continue to review the budget throughout the year. The FY 2025-26 close-out update and FY 2026-27 first-quarter update are expected to be presented to the City Council in the fall. A mid-year budget review will follow in February, providing another opportunity to evaluate revenues, expenditures, capital needs, and any necessary budget adjustments.