Folsom City Council Meeting – February 24, 2026

The Folsom City Council held its regular meeting on February 24, 2026, at 6:45 PM. The agenda included a presentation from the Folsom Tourism Bureau, a consent calendar with pulled item, a public hearing on the Tourism Business Improvement District (TBID) assessment rate, resolutions for landscaping and lighting district reports, minor municipal code amendments, and an informational presentation on water and sewer rate studies. Council took action on several items, including continuing the TBID public hearing to allow further negotiation with hoteliers.

Presentation: Folsom Tourism Bureau Annual Report

• The Tourism Bureau presented the FY 2024‑2025 annual report for the Folsom Tourism Business Improvement District (TBID). Key statistics: visitors spent over $38 million on accommodations in 2024 (a 1.7% increase from 2023); hotel/motel/short‑term rental visitors contributed $92 million in spending (4.1% increase). Direct travel industry employment reached 900+ in accommodations/food services. Marketing efforts drove a 63% increase in online booking sessions and 700+ room nights. No council action was taken.

Consent Calendar

• Approved (unanimously): The remainder of the consent calendar, including items 9 and 10. Item 8 was pulled for separate discussion.
• Item 8 – Resolution 11558 (Youth Recreation Scholarships): Adopted 5‑0. The resolution amends eligibility to allow adults and seniors (up to 25% of scholarships) while keeping youth as the priority (75%). Staff explained that unused scholarship funds would provide capacity for this expansion. Several councilmembers expressed support but requested careful monitoring to ensure youth are not displaced.

Public Comments & Testimony

• Michael Harris spoke during Business from the Floor, celebrating Black History Month (100th anniversary of Negro History Week, 50th anniversary of presidential recognition) and noting the 60th anniversary of Leidesdorff Plaza. He urged the city to preserve local African American history.
• No public speakers for the TBID public hearing.

Discussion Items

• Item 11 – TBID Assessment Rate Increase (Continued Public Hearing): The council considered Resolution 11539 to raise the TBID assessment from 4% to 8%. Letters from five hotel owners were received that evening, stating they remained opposed to a doubling but were open to a phased increase (4%→6% in years 1‑2, then 2% more) with clearer governance and hotel oversight, and requested a 60‑90 day collaborative period. City staff and attorney advised that continuing the public hearing would allow those conditions to be explored and potentially withdraw protests. Councilmember Aquino opposed continuing, arguing the process should follow the established timeline; other members favored the continuance to allow negotiation and preserve the possibility of a TOT ballot measure. A motion to continue the public hearing for 60 days (to the second meeting in April) passed 4‑1, with Aquino dissenting.
• Item 12 – Resolution 11556 (L&L Engineers Reports): Unanimously adopted (5‑0). The resolution directs preparation of engineers’ reports for all 30 landscaping and lighting districts for FY 2026‑2027, a required first step in the annual assessment process. Discussion included potential future increases in districts with fixed assessments and the need to include revenue/expense data in the reports.
• Item 13 – Ordinance 1362 (Minor Code Cleanups): Introduced and read the first time; passed 5‑0. The ordinance removes outdated references (e.g., hitching animals to parking meters, bicycle licenses, anti‑cruising provisions) and makes substantive changes: allows up to six hens (formerly two) with setback requirements; adds a waiver for city project permitting fees; updates contract contingency limits (minimum 10%); repeals the substance abuse commission. Councilmember Aquino suggested eliminating the chicken limit entirely but did not offer a substitute motion; the ordinance passed as staff recommended.
• Item 14 – Water and Sewer Rate Study (Informational Presentation): HF&H Consultants presented a comprehensive five‑year rate study. Key proposals: for wastewater, a 5% revenue increase in FY 26‑27 followed by 4% annual increases; for water, a 12% increase in FY 26‑27 followed by 9%, 3%, 2%, and 1% in subsequent years. Two options for water tier structures were discussed: (1) three customer classes (single‑family/condo, non‑residential, irrigation) with separate two‑tier rates, or (2) one combined class with a single two‑tier rate based on system average (24 HCF). Councilmembers raised concerns over the steep tier differentials, the justification for multiple classes, and the reserve fund drawdown. Opinions on the low‑income assistance program were generally supportive, but further analysis was requested. No action was taken; staff will refine the proposal based on council feedback and return at a later date.

Key Outcomes

• TBID Public Hearing Continued (4‑1) to allow 60 days for hoteliers and the city to negotiate a phased increase with governance safeguards.
• Resolution 11558 (Youth Recreation Scholarships) Adopted 5‑0.
• Resolution 11556 (L&L Reports) Adopted 5‑0.
• Ordinance 1362 (Code Cleanups) First Reading Approved 5‑0; second reading scheduled for March 10, 2026.
• Water/Sewer Rate Study: Informational only; council directed staff to provide additional historical reserve data, explore capital funding alternatives, and revisit tier structure justifications before proposing formal rates.