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City presents FY 2025–26 proposed budget showing $3.5M shortfall; council continues public hearing
Summary
Finance staff on June 10 presented a proposed fiscal year 2025–26 operating and capital budget that shows $120 million in revenues against $123.5 million in expenditures, leaving a $3.5 million projected shortfall. The council opened the public hearing and voted to continue it to a later meeting to allow more public review.
The city manager and finance staff presented the fiscal year 2025–26 proposed operating and capital budgets to the Folsom City Council on June 10 and asked the council to keep the public hearing open to allow more time for review and comment.
Key facts: the city manager and Finance Director Stacy Timani said the proposed budget projects roughly $120 million in total general fund revenues and $123.5 million in proposed expenditures, producing a $3.5 million shortfall for ongoing operations. The proposal relies in part on one-time use of the city's unassigned fund balance (emergency reserve), which the staff estimated would reduce the reserve to approximately 15% of expenditures by the end of the fiscal year—below the council's formal policy range of 17%–20%.
Why it matters: continuing deficits could force program cuts, service reductions or the exploration of new revenue sources. Staff noted that major cost drivers include increased salary, benefit and insurance costs (including CalPERS contributions) and operations…
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