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Council approves intent resolutions to form overlay Community Facilities District for Russell Ranch phase
Summary
The Folsom City Council voted May 13 to proceed with forming Community Facilities District 20‑1 (Russell Ranch 2), a small overlay CFD covering one parcel in Russell Ranch intended to fund a portion of subdivision infrastructure.
The Folsom City Council on May 13 approved resolutions to initiate formation of Community Facilities District (CFD) 20‑1, Russell Ranch 2, an overlay district to levy special taxes within a portion of the existing CFD 20 Russell Ranch area.
Stacy Timani, the city’s chief financial officer, explained the overlay was requested by Lennar Homes to finance a portion of subdivision infrastructure for Phase 2 Village 5 of Russell Ranch. The overlay includes one parcel with 118 multifamily low‑density residential units and no certificates of occupancy or building permits as of April 30, 2025.
Timani said the overlay’s maximum special tax rates will be based on building size and range roughly from $1,300 to $1,500 per unit, with annual increases capped at 2%. The city estimates the associated bonded indebtedness for the overlay at $3.5 million and said the overlay would remain authorized to levy special taxes through fiscal year 2064‑65. Staff said the overlay keeps total projected special tax rates for Village 5 near 1.8% when combined with the underlying CFD amount, consistent with city policy.
Council approved two separate resolutions: one appointing consultants, approving the boundary map and declaring intent to form CFD 20‑1 Russell Ranch 2; the other declaring the necessity to incur bonded indebtedness and calling for a public hearing on bond issuance. The public hearing on bonded indebtedness is scheduled for June 24, 2025.
Council discussion touched on concerns about differing tax rates among neighbors when overlays are applied; staff said this overlay applies only to the parcel that does not yet have building permits and was designed to avoid intra‑neighborhood tax rate disparities. No members of the public requested to speak on the item.
Ending: The council’s action sets a formal process toward forming the overlay CFD and calls a public hearing for June 24 on proposed bond financing; the council will consider protests and legal requirements before any bonds are issued.
