Council approves up to $12 million in special-tax bonds for Folsom Ranch Improvement Area 7

The Folsom City Council on March 25 approved two resolutions authorizing the form and issuance of special‑tax revenue bonds for Community Facilities District No. 23, Improvement Area 7, allowing the Folsom Ranch financing authority to move forward with a bond sale not to exceed $12 million.

Stacy Timani, Chief Financial Officer, told the council the improvement area (CFD 23, Improvement Area 7) was approved in December 2021 and covers infrastructure improvements including transportation, water and recycled water systems, drainage, wastewater, parks and open space, subdivision roadways and street lighting. Timani said staff proposed issuing Series 2025 bonds in an amount not to exceed $12,000,000; bond proceeds will finance construction and acquisition of public facilities, fund a debt service reserve account and pay certain costs of issuance.

Timani provided financial metrics the city uses to vet CFD bond issues: the aggregate assessed (appraised) value of property within the improvement area is about $92,000,000, producing a value-to-lien ratio of 8.1:1. Per the city’s CFD policy, the projected tax burden for developed residential parcels in the improvement area is approximately 1.7% (of assessed value), which staff said complies with local policy. Timani said the council’s action approves the form of required documents and authorizes city and financing authority officers to execute closing documents as needed.

No members of the public requested to speak on the matter. The council moved, seconded and approved City Council Resolution No. 11344 and Folsom Ranch Financing Authority Resolution No. 14 (FRFA) in roll-call votes; all members voting recorded “yes.”

The staff memo said bond proceeds will pay for public infrastructure and related issuance costs; the action authorizes staff to proceed with preparation for bond issuance but does not itself represent the final bond sale.