Folsom City Council Meeting: March 24, 2026 – Budget, ADUs, and Council Compensation

The Folsom City Council met on March 24, 2026, to discuss a range of items including a presentation on Assembly Bill 1572 regarding non-functional turf, a public hearing on updates to the Accessory Dwelling Unit (ADU) ordinance, a new business item to partner with change.org for community engagement, a proposed increase in city council salaries, and several financial and infrastructure updates. The meeting also included public comments on light rail noise, city manager compensation, and a balanced budget report.

Consent Calendar

• Items 2 through 6 were approved unanimously.
• Item 7: Resolution authorizing an amendment to the city manager's employment agreement (step increase). The council voted 4-0-1 (Councilmember Leary abstained) to approve the increase, citing the city manager's successful performance evaluation and the need to remain competitive in the region.

Public Comments & Testimony

• Lily Nichols (resident) expressed concerns about the new light rail expansion's bell noise, which she said is intrusive throughout the neighborhood, including at the cemetery and river trail. She requested mitigation similar to what was done in Sacramento. Vice Mayor Borba, the SAC RT representative, took her contact information.
• Bill Turner (resident) spoke against the city manager's salary increase, arguing that given the city's budget crisis and a fire engine being closed, it was not the time for raises. He also questioned the transparency of the compensation package.
• Jag Najendra (resident) strongly opposed the proposed city council salary increase, stating that the timing was poor given the city's structural deficit and that public service should be about sacrifice, not financial gain. He urged the council to defer the increase until the city achieves fiscal stability.
• Rosario Rodriguez (former Boston City Council member, now Folsom resident) spoke in favor of the council salary increase, providing perspective on the full-time demands of the role and noting that the current compensation ($600/month) equates to roughly $3.94 per hour, well below minimum wage. She argued that the increase to $1,900/month would make service more accessible.
• Alicia Campson (resident) acknowledged the council's hard work but said the timing of the salary increase was not appropriate given the city's financial health.
• Miranda Pond (resident) commented on the ADU ordinance, sharing her experience as a resident of a historic district ADU and raising concerns about privacy and staircase design. She also noted a specific case of a commercial conversion at 505½ Coloma Street.
• Max Hofstadt (resident and Cal Poly student) spoke during the general plan annual report, advocating for more walkable, mixed-use development near light rail stations and historic Folsom to retain younger residents. He supported the Glenn Light Rail Station policy H15.
• Public comment on item 7 (city manager contract) was also made by Bill Turner, who reiterated his concerns about budget priorities.

Discussion Items

• AB 1572 – Non-Functional Turf: Utilities Director Marcus Yasutaki presented the state law prohibiting potable water irrigation of non-functional turf on public, commercial, HOA, and institutional properties by 2027-2031. The city is required to update ordinances and communicate the requirements. Councilmembers expressed frustration with the state's unfunded mandate and the burden on local government. Councilmember Kosowski requested data on the amount of city-owned non-functional turf. The item was informational; no action taken.
• ADU Ordinance Update (Item 8): Planning staff presented the first reading of Ordinance 1361 to update the city's ADU regulations to comply with state law. Key changes include allowing up to four ADUs per single-family property, modifying design standards, and adding a carriage house style in the historic district. After public comment, the council debated the proposed requirement for staircases to be enclosed. Councilmember Kozlowski argued it was an overly burdensome objective standard. The council voted to modify the language from "enclosed" to "screened" and approved the first reading unanimously (5-0).
• Independent Auditor's Report (Item 9): Matesh from Badawian Associates presented the city's annual comprehensive financial report for FY 2024-25, issuing an unmodified (clean) opinion. The audit identified two significant deficiencies (year-end closing procedures and completeness of accrued liabilities) but no material weaknesses. The council received and filed the report.
• Change.org Partnership (Item 10): The city manager and mayor discussed a proposed partnership with change.org to conduct a community survey and civic dialogue process at no direct cost to the city. The program would involve idea generation and a representative deliberation panel. Councilmember Aquino raised concerns about the lack of completed projects in other cities, the potential for data mining, and the value of the endorsement. Councilmember Kozlowski noted the risk of the city's name being used in marketing. The council decided to defer action, requesting staff to obtain a completed report from another city and to negotiate a clause preventing the city's name from being used in marketing without prior approval.
• City Council Salary Ordinance (Item 11): Mayor Rethal introduced Ordinance 1366 to increase council salaries from $600/month to $1,900/month, as allowed by state law. The item generated significant public comment. Councilmembers debated the merits: Vice Mayor Borba and Councilmember Kozlowski supported the increase, arguing it would attract a broader range of candidates and compensate for the role's demands. Councilmembers Leary and Aquino opposed, citing the city's budget challenges and the need to prioritize public safety. The council voted 3-2 to approve the first reading (Zorba, Kozlowski, Rethal in favor; Leary, Aquino opposed). Councilmember Kozlowski stated he would decline the personal increase if the ordinance passes. The ordinance will take effect after the next election cycle.
• ITS Master Plan Implementation (Item 12): Public Works presented a resolution to authorize the city manager to execute a grant agreement with Caltrans for a $5.716 million project to upgrade traffic signals, fiber optics, and CCTV cameras. The city's match is covered by toll credits, saving $650,000. The council approved unanimously.
• Landscape and Lighting Districts (Item 13): Derek Prez presented the preliminary engineer's report for FY 2026-27, highlighting the financial challenges of underfunded districts. Four districts (Briggs Ranch, Hannaford Cross, Broadstone 1&2/4, Cobble Ridge 2/Reflections 2) are in deficit and will undergo Prop 218 ballot processes over the next two fiscal years. The council approved the report unanimously.
• General Plan and Housing Element Annual Report (Item 14): Planning Manager Desmond Parrington presented the 2025 annual progress report, noting the city's progress on housing production (2,895 units built, including 1,000+ affordable units since 2003) and the need to maintain a surplus of sites to avoid a "no-net-loss" situation. The council received and filed the report.

Key Outcomes

• ADU Ordinance: Approved first reading with modification to staircase language ("screened" instead of "enclosed"). Second reading scheduled for April 14, 2026.
• City Manager Salary Increase: Approved 4-0-1 (Councilmember Leary abstained). The city manager's salary moves from Step 5 to Step 6, with COLA previously approved.
• City Council Salary Increase: Approved first reading 3-2. Effective after the November 2026 election. Second reading scheduled for April 14, 2026.
• ITS Project: Resolution 11579 (or 11578) approved, authorizing the city manager to execute the Caltrans agreement.
• Landscape and Lighting Districts: Resolution 11580 approved, setting the preliminary engineer's report and public hearing for April 14, 2026.
• Change.org Partnership: Deferred; staff will gather more information and return with a proposed agreement.
• General Plan Report: Received and filed; will be submitted to the state by April 1, 2026.
• City Council Comments: Noted the loss of ~$300,000 in cable franchise fees; outreach to San Juan district realtors regarding school district impact on home sales.