Folsom City Council Regular Meeting - April 9, 2024

The Folsom City Council held its regular meeting on April 9, 2024, addressing a range of topics including long-term financial liabilities, the city's five-year strategic plan, public hearings on affordable housing bonds, a potential special sales tax measure, and the repeal of a local trespass ordinance. The meeting also featured several proclamations and public comments.

Consent Calendar

• Approved the minutes of the March 12, 2024 Regular Meeting and March 26, 2024 Special and Regular Meetings.
• Resolution No. 11183: Approved an application for a $425,000 grant from the Budget Act of 2023 for the Johnny Cash Trail Art Experience – Cash's Pick No. 2 and appropriated funds.
• Resolution No. 11184: Authorized the City Manager to execute a Communications Site License Agreement with CCTM1 LLC at Lembi Park.
• Resolution No. 11185: Authorized an amendment to the contract with Dokken Engineering for grant application assistance for the Folsom Boulevard Bicycle and Pedestrian Overcrossing Project and appropriated funds.
• All consent calendar items were approved unanimously (5-0).

Public Comments & Testimony

• Business from the Floor: Diane Chigelski requested an on/off ramp at Oak Avenue Parkway and Highway 50 instead of a planned overpass. The Mayor noted the item was not on the agenda and directed her to speak with the Public Works Director.
• Public Hearing – Vintage at Folsom Bonds: Ravi Kelon, a neighbor, expressed concerns about the developer's accountability when using tax-exempt bonds, stating that with public funding the developer may no longer be beholden to the community. Ryan Patterson from Vintage Housing responded, explaining the federal tax-exempt bond program and affirming the company's long-term commitment and repayment obligation.
• Public Comment – Sales Tax Measure:
  • Ron Carter opposed a general tax increase but supported a 1% sales tax if specifically earmarked for law enforcement and public safety.
  • Robert Goss, co-chair of the Folsom Takes Action Committee, reported that the citizens' initiative to qualify a 1% special sales tax measure has collected over 7,100 signatures (about 90% of the goal) and expects to submit petitions by end of April. He noted community concerns about distrust and growth but also appreciation for Folsom's services.
  • Bruce Klein urged the Council to immediately direct staff to create an education campaign, obtain polling, and secure a consultant, warning that delays would jeopardize success.

Discussion Items

• Long-Term Liabilities Update – CalPERS and OPEB (Item 5): Chief Financial Officer Stacey Tamani presented an in-depth analysis of the city's pension and other post-employment benefits (OPEB) liabilities. The city's unfunded liability for CalPERS has increased due to market volatility and assumptions not being met; the city paid $19.7 million in fiscal year 2022-23, projected to rise to $21.5 million in the current year. The unfunded liability for the miscellaneous plan was $104 million (61% funded) and for safety plan $100 million (61.3% funded) as of June 30, 2022. For OPEB, the city has a $100 million accrued liability with a trust fund of only $9 million (9% funded). Councilmembers discussed options such as a 115 trust fund, additional discretionary payments, and the need for more realistic assumptions. No action was taken.

• Strategic Plan Implementation Update (Item 6): Communications Director Christine Brainerd reported progress on the five-year strategic plan adopted in April 2023, highlighting milestones in financial stability, public safety, community development, and organizational effectiveness. Councilmember Rohrbough engaged in a detailed discussion with City Manager Elaine Andersen about funding priorities, structural deficits, and the need to align resources with the strategic plan. The City Manager reiterated that a preliminary budget in May will reflect diminished services due to revenue constraints.

• Potential Special Sales Tax Ballot Measure (Item 13): City Manager Elaine Andersen presented options for a 1% special sales tax measure. A special tax would require 66.67% voter approval and could generate approximately $29 million annually. The citizens' initiative is nearing qualification. Councilmembers debated whether to place a competing measure. Mayor Kozlowski, Vice Mayor Aquino, and Councilmembers Rodriguez and Chalamcherla expressed support for the citizens' initiative and opposed a second measure to avoid voter confusion. Councilmember Rohrbough initially raised concerns about spending but later supported the citizens' effort. The Council voted 4-1 (Rohrbough dissenting) not to place a city-sponsored measure on the November 2024 ballot. A second motion passed 4-1 (Rohrbough dissenting) directing the City Manager to use existing communication tools to educate the public about the city's budget situation and to include a plan for additional resources (e.g., polling, consultants) as part of the upcoming budget process.

• Ordinance No. 1343 – Repealing Trespass Ordinance (Item 14): City Attorney Steve Wong introduced the ordinance to repeal Chapter 9.64 of the Folsom Municipal Code, which had required business owners to provide written, signed, and personally delivered notice before a misdemeanor trespass citation. State law provides a simpler standard. The Council approved the first reading unanimously (5-0).

Key Outcomes

• Consent Calendar: Approved 5-0.
• Resolution No. 11182 (Vintage at Folsom Bonds): Adopted 4-1 (Councilmember Rohrbough dissenting), approving the issuance of tax-exempt multifamily housing revenue bonds for the 136-unit affordable senior housing project. The city has no financial obligation.
• Sales Tax Measure Direction: The Council voted 4-1 not to place a city-sponsored sales tax measure on the November 2024 ballot. A second motion passed 4-1 directing the City Manager to develop an educational plan using existing resources and to return with a proposal for additional funding (e.g., polling) as part of the budget process. Councilmember Rohrbough voted against both motions, preferring that all spending be considered within the budget.
• Ordinance No. 1343: First reading approved 5-0; second reading and adoption will occur at a future meeting.
• The meeting was adjourned in memory of Financial Services Manager Terry Hemley, who passed away after 18 years of service.