Folsom City Council Meeting: Budget Adoption and Folsom Dam Raise Presentation - May 23, 2023

The Folsom City Council met on Tuesday, May 23, 2023, at 6:30 PM in the City Council Chambers, 50 Natoma Street, Folsom, CA. The meeting included a presentation on the Folsom Dam Raise Project, a financial report for the third quarter of FY 2022-23, a public hearing on the FY 2023-24 budget, and the appointment of a new Parks and Recreation Commission member. The council adopted the budget with an amendment to fund an economic development consultant, and appointed Elena Wagner to the Parks and Recreation Commission.

Consent Calendar

• Approved the consent calendar, including minutes from May 9, 2023, and resolutions for construction contracts (McGuire and Hester for Ashland Water Rehabilitation Project 1) and construction management services (West Yost & Associates, Inc.), and agreements for the Seniors Helping Seniors Home Repair Program. All items were approved unanimously by roll call vote.

Public Comments & Testimony

• Alexis Goddard (Bungalows resident) expressed disappointment that the proposed 24-hour King's Card Room did not notify the neighborhood, and noted the open house comment cards only offered positive or neutral options, indicating a lack of genuine interest in community concerns.
• Kevin Goddard (Bungalows homeowner) opposed the proposed card room at the Folsom Outlets location, citing concerns about attracting individuals from outside Folsom, potential safety issues, and an apparent conflict with Folsom Municipal Code regarding license transfer. He mentioned the Lake Bowl Card Room's prior non-compliance with COVID-19 guidelines.
• Judy Ho (Leadership Folsom graduate) thanked the council for their service, and invited them to the 'Heartbeat of Folsom' public art unveiling on June 2nd at the Palladio.
• Jolene Slosberg (Bungalows homeowner) opposed the proposed card room, citing statistics on incidents at other card rooms (e.g., Sacramento's Capitol Casino), concerns about noise, and the light rail schedule. She urged the council to prioritize people and community.
• Michael Harris shared historical reflections on Memorial Day and Juneteenth, and highlighted the historical significance of Leidesdorff Plaza.
• John Ashworth (Bungalows resident, real estate appraiser) opposed the proposed card room, citing incompatibility with the quiet residential neighborhood, 24/7 operations, potential negative impact on home values, and noted that all other regional card rooms are buffered from residential areas by major roads.

Scheduled Presentations

• Folsom Dam Raise Project (Presentation by Gerald 'Jerry' Slattery, U.S. Army Corps of Engineers):
  • The project, a joint effort with the California Department of Water Resources, aims to increase flood capacity of Folsom Dam. It includes adding top seals to gates, raising 5.1 miles of earthen structures (wing dams and dikes), and modernizing temperature control shutters. Construction runs from 2023 to 2027, with a target completion of July 2027)Skip. The project is estimated at just under $500 million and is fully funded through the Bipartisan Budget Act of 2018. An ecosystem element (temperature control shutters) is a $63 million project, design complete by 2025, construction 2025-2028. The project will add 42,000 acre-feet of flood control storage. Discussion included: haul routes, construction scheduling (only one gate out of service in winter, three in summer), and source of fill material from Mormon Island Auxiliary Dam spoil.
• City Manager's FY 2022-23 Third Quarter Financial Report (presented by Stacy Tamani, CFO):
  • General fund revenues projected at $107.2 million vs. budget of $104 million; expenditures projected at $109.6 million vs. budget of $104 million. A $595,000 deficit reduces unassigned fund balance to $22.7 million (20.68% of expenditures). Property tax and sales tax expected to come in ~2% over budget. Fire overtime is a primary driver of expenditure overruns. Economic data: home sales in the third quarter of FY 2022-23 decreased by 170 (26.94%) compared to the same quarter the prior year; median sales price decreased 2.69%.

Public Hearing: FY 2023-24 Budget Adoption

• Staff presented responses to council questions, covering revenue breakdowns (e.g., property tax, sales tax, TOT), fund balance history, salary/benefit increases, staffing comparisons, and library late fines.
• Council discussion included:
  • Councilmember Rohrbough raised concerns about police and fire staffing, comparing officers and firefighters per 1,000 residents, and noted resident concerns about crime and homelessness. Mayor Rodriguez countered with data from a point-in-time count showing homelessness in Folsom is about 20, and praised the police's community crime suppression unit.
  • Mayor Rodriguez proposed an economic development consultant position, originally $150,000, later amended to $100,000.
  • Vice Mayor Chalamcherla suggested volunteer coordinator, but no consensus was reached.
  • Councilmember Aquino noted concerns about redirecting funds from risk management and IT capital.
• Public speakers in the hearing: Phil Scott (supported increased revenue), Evangeline Scott (supported more police officers and change in EAP program). Bob Holderness did not speak.
• Councilmember Kozlowski made a substitute motion to approve the budget with an amendment to add $100,000 for an economic development consultant, taking $50,000 from the risk management transfer and $50,000 from the IT capital fund transfer, with a condition that the council would discuss parameters for the position. This motion was seconded by Councilmember Rohrbough.

The substitute motion passed by roll call vote: Councilmember Kozlowski (yes), Rohrbough (yes), Aquino (yes with reservations), Chalamcherla (yes), Rodriguez (yes).

Joint Meeting Items

• Approved the joint consent calendar, including minutes from March 14, 2023, and monthly investment reports for March 2023. The joint meeting was then adjourned.

Council Requests for Future Agenda Items

• Councilmember Aquino requested a future discussion on the council's vision for the Community Development Department, but no consensus was reached to place it on the agenda.

City Manager Reports & Council Comments

• City Manager thanked police for National Police Week, announced library reopening on May 26th, Community Service Day on September 16th, summer concerts starting June 9th, and recognized public works employees who received awards.
• Councilmembers congratulated graduates, recognized achievements, and reminded the public about safety near the American River during Memorial Day weekend.
• The council adjourned in memory of Dennis Batchelder at approximately 9:40 PM.

Key Outcomes

• Budget Adoption: Resolution No. 11040 was adopted, approving the FY 2023-24 operating and capital budgets, with an amendment funding an economic development consultant at $100,000 (funded by reducing the risk management transfer by $50,000 and the IT capital fund transfer by $50,000). The council will discuss the parameters for this position at a future meeting.
• Parks and Recreation Commission Appointment: Elena Wagner was appointed to fill the at-large vacancy, serving until December 2024 (by roll call vote of 3-2: Aquino, Kozlowski, Rodriguez voted for Wagner; Rohrbough and Chalamcherla voted for Solomon Kiss).