Folsom City Council Special and Regular Meeting - July 12, 2022

The Folsom City Council held a special meeting at 5:45 PM and a regular meeting at 6:30 PM on July 12, 2022, at City Hall. The special meeting had no final action; the regular meeting included public comments, a presentation on the winter shelter, consent calendar items, public hearings, and a major discussion on a potential sales tax measure. The meeting concluded at 8:13 PM.

Consent Calendar

• Approved items 2 through 7 (approval of June 28 minutes, appointments, resolutions on appropriations limit, HVAC contract rescission, and fire inspection acknowledgment) with the exception of item 3, which was pulled for discussion.
• Item 3 (Appointment of Representative to SCGA Governing Board) was approved after a brief discussion where Councilmember Chalamcherla requested periodic updates on water issues. The appointee, Marcus Yasutake, will provide updates twice a year.
• Joint meeting consent items 9 and 10 (approval of previous joint meeting minutes) were approved.

Public Comments & Testimony

• Duriya Sayed (CDI outreach analyst) provided an update on the California Department of Insurance's wildfire resilience framework and services, including the Safer from Wildfire program and consumer assistance hotline.
• Loretta Hettinger spoke on development patterns in Folsom, warning about potential decay of the central core and post-war subdivisions. She urged the council to focus on existing development and preventive measures, citing past successes with the historic district.
• During the public hearing on item 8 (landscaping districts), no one spoke.
• During the public hearing on item 11 (CFD bonds), no one spoke.
• During the public hearing on item 12 (sales tax measure), Loretta Hettinger spoke again, urging the council to create a concrete, enforceable spending plan to build voter trust, referencing the failed 2018 measure.

Discussion Items

• Item 8: Landscaping and Lighting District Assessments – Staff presented the final engineer's report for fiscal year 2022-2023 for 30 districts, with modifications due to a new landscape maintenance contract. Two districts had CPI increases. Notable projects include signage renovation, entry landscaping, and controller upgrades. The council approved Resolution 10887 unanimously.
• Item 11: Community Facilities District No. 23 (Folsom Ranch) Improvement Area No. 3 Special Tax Revenue Bonds – Staff proposed issuing up to $12 million in bonds for infrastructure in the Toll Brothers active adult community. The property has an appraised value of $110 million, with a value-to-lien ratio of 8.2:1. The council approved both city and financing authority resolutions unanimously.
• Item 12: General Municipal Election – November 8, 2022 – Sales Tax Measure – The council considered two options: a half-cent (0.5%) or full-cent (1%) transactions and use tax. The city manager and city attorney presented background, including a $11 million or $22 million annual revenue estimate. Councilmembers expressed differing views:
  • Councilmember Kozlowski supported the half-cent measure, arguing it is necessary to avoid a financial cliff and noting that 40% would be paid by non-residents. He favored moving forward despite the short timeline.
  • Councilmember Aquino opposed any measure in 2022, stating the city has not made a compelling case, lacks a vision, and does not have a funded campaign. She suggested waiting until the 2024 presidential election.
  • Councilmember Rodriguez opposed, citing insufficient economic development efforts and lack of strategic planning to optimize existing resources.
  • Councilmember Chalamcherla opposed, arguing the city has not exhausted cost-saving measures (e.g., procurement efficiencies, aquatic center revenue) and should pause before raising taxes.
  • Mayor Howell supported the half-cent, emphasizing the need to avoid service cuts and noting that trimming alone cannot close the gap.
• A motion for Resolution 10889 (half-cent) was made and seconded but failed 2-3 (Aquino no, Chalamcherla no, Kozlowski yes, Rodriguez no, Howell yes). No motion was made on the full-cent option. Discussion ensued about forming a citizens committee and revisiting the measure for the 2024 election.

Key Outcomes

• Consent calendar items 2-7 approved (except item 3 which was later approved).
• Item 3 (SCGA appointment) approved unanimously after discussion.
• Resolution 10887 (landscaping districts) approved unanimously.
• Joint meeting items 9-10 approved unanimously.
• Resolutions 10884 and 009-FRFA (CFD bonds) approved unanimously.
• Sales tax measure (Resolution 10889/10890) failed to pass; no tax measure will appear on the November 8, 2022 ballot.
• The council will consider forming a citizens committee and revisit a sales tax measure for the 2024 election.
• Council comments included requests for future agenda items: presentation on Bidwell Suites (affordable housing), update on major public works projects (East Bidwell/Iron Point interchange), and a discussion on rescinding the COVID-19 state of emergency.
• Adjournment at 8:13 PM.