Folsom council forms overlay community facilities district for Russell Ranch 2; ballot returns unanimous approval

The Folsom City Council on June 24 took final steps to form Community Facilities District (CFD) No. 21, Russell Ranch 2 — an overlay district within the existing CFD 20 boundaries — and authorized levying a new special tax for a single parcel in the Russell Ranch development.

Stacy Timani, the city’s chief financial officer, told the council CFD 21 covers a single parcel in Phase 2, Village 5 of Russell Ranch and is intended to help fund a portion of backbone subdivision infrastructure previously funded by CFD 20. The new overlay district encompasses approximately 118 multifamily or low-density units within the original CFD boundary along White Rock Road and Empire Ranch Road.

Maximum special tax rates will vary by unit size and are estimated to range from about $1,300 to $1,500 per unit; maximum rates will escalate annually at 2%. Staff said the overlay’s bonded indebtedness limit is $3,500,000. The estimated effect on developed residential property within Village 5 would be an increase from approximately 1.6% to about 1.8% of the assessed valuation, which staff said is in compliance with the city’s policy.

The council held the public hearing required for formation; no written protests were lodged and no members of the public spoke at the hearing. Because the district includes a single landowner parcel, that landowner cast the weighted special-ballot vote. The clerk reported the canvass: 13 votes in favor and 0 opposed; the clerk declared the measure approved with 100% of returned weighted ballots in favor.

Following the canvass, the council adopted the required resolutions to form CFD No. 21, to authorize the levy of special taxes and to deem necessary the incurrence of bonded indebtedness (Resolution Nos. 11,408; 11,409; 11,410; 11,411) and introduced Ordinance No. 13,52 (first reading) to levy the special taxes. Council members voted unanimously on the motions called for each resolution and the ordinance introduction.

Council members briefly asked staff to confirm that only the current landowner was voting and to verify existing encumbrances (staff said the parcel is also included in CFD 18 and that the total projected tax rate for developed property will be approximately 1.8%). The staff presentation noted no building permits, certificates of occupancy or billing had been issued on the parcel as of April 30, 2025.

The actions taken allow the city to proceed with formation of CFD No. 21 and to levy the overlay special tax once the controlling ordinance is finalized; staff said there are no maintenance-service special tax components for the overlay and the special tax authority can be levied through fiscal year 2064–65 (referred to in staff slides as fiscal year 60 465).