Folsom council approves Phase 2 reorganization to cut $3.9M from general‑fund gap; shifts staff and funding among departments
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Summary
The council approved a reorganization spanning Community Development, Parks & Recreation, Public Works and a new Utilities department as part of Phase 2 cost‑savings; staff projected $3.9 million in savings in 2025‑26 and $5.6 million in a full year.
Folsom's City Council on Oct. 14 approved a multi‑department reorganization and funding changes intended to reduce the city's projected general‑fund shortfall, shifting some staffing costs to special‑revenue and enterprise funds and reorganizing service delivery across Community Development, Parks & Recreation, Public Works and a newly formed Utilities department.
City manager and department leaders told council the Phase 2 package follows an earlier round of workforce reductions and reorganizations adopted in September. Community Development Director Pam Johns said the proposals are the result of weeks of cross‑department collaboration to protect core services while reducing general‑fund costs.
"What we have in front of you this evening is what we believe, as directors ... will reduce costs while preserving the integrity of the services that we're providing," Johns said. The council approved the plan after a public comment period that featured volunteers and nonprofit representatives urging continued investment in parks, trails and youth sports.
Key elements of Phase 2 include: reallocating development‑service and project‑delivery staff between Community Development and Public Works; promoting and reorganizing engineering functions under the Public Works director; forming a Utilities department that consolidates enterprise divisions (water, wastewater, solid waste and fleet); increasing use of qualifying special‑revenue and enterprise funds to pay for eligible staff time (including the Housing Fund and the Tree Fund); and adding two net new full‑time equivalent positions while reducing total city staffing from 513.5 to 495.5 through the combined Phase 1 and Phase 2 measures.
Finance staff estimated that the reorganization and associated funding shifts will yield roughly $2.3 million in recurring annual salary and benefit savings once fully implemented (fiscal year 2026‑27), and approximately $1.1 million in savings for the portion of 2025‑26 that remains. City materials show Phase 1 plus Phase 2 measures together reduce staffing by a net 18 positions from the earlier baseline and would lower the city's projected use of reserves.
Public speakers — including representatives of Friends of Folsom Parkways, Folsom Athletic Association and volunteers from Community Service Day — urged council to preserve parks, trails and recreation services. Bruce Klein of Friends of Folsom Parkways noted local volunteer fuel‑mitigation and trail projects and offered to partner with the city. "Let's not forget that we have millions upon millions of deferred maintenance in parks and on our trails," Klein said. Rich Francis, president of the Folsom Athletic Association, urged the council to maintain sports fields for youth programs, saying they deliver broad community benefits.
Council discussion emphasized monitoring service delivery changes after implementation. Councilmember Raffel asked for midyear reports tracking the effect of staffing changes on service outcomes and project delivery; staff agreed to provide updates at the February midyear budget review.
The council adopted the Phase 2 resolution 5–0. Staff said many changes will be phased in, with some elements (for example, fee‑funded staffing allocations) taking effect as soon as fund rules and job actions are completed, and others requiring posting, recruitment or vacancy management.
Votes at a glance: Resolution approving Phase 2 reorganizations and funding reallocations (Res. No. 11482) — Passed 5–0 (Leary: yes; Raffel: yes; Rorba: yes; Kozlowski: yes; Aquino: yes).
