Council approves preliminary engineer's report for all 30 landscape and lighting districts; Natoma Station deficits and Prop 218 outreach highlighted

The Folsom City Council voted unanimously June 10 to adopt Resolution No. 11399, approving the preliminary engineer's report that consolidates all 30 landscape and lighting (L&L) districts and sets the schedule for required Prop 218 proceedings.

The action follows a staff presentation showing several districts have run persistent operating deficits and dwindling account balances, and includes staff's recommendation that the engineer of record include a table in the final report that lists each district's assessment revenue, total expenses and fund balance as of April 30, 2025.

Why it matters: the L&L districts fund neighborhood landscaping, lighting, monumentation and other common-area amenities. Several districts' static assessments—many set before Proposition 218 (1996)—have not kept pace with rising costs, pushing some to consider either higher assessments through a property-owner vote or reduced services. The council's approval starts the formal process that can lead to ballots, further outreach and, if voters reject new assessments, service reductions in affected districts.

Staff presentation and findings Jamieson Larson, senior management analyst for the Parks and Recreation Department, told the council the engineer's report covers all 30 L&L districts and recommends the council approve the preliminary report and direct the engineer to include a revenue/expense table in the final report. "Our recommendations are that the council adopt Resolution 11399," Larson said during the presentation.

Larson presented per-district detail, including current negative account balances and example payback scenarios spread over 10 years for illustration. Examples in the presentation included: - Briggs Ranch: negative account balance about $218,000; roughly $332 per single-family-equivalent (SFE) unit; a 10-year amortization would require about $33 per SFE per year in addition to regular assessments. - Hannaford Cross: negative balance about $51,000; roughly $499 per unit; about $49 per unit per year over 10 years. - Cobble Ridge/Reflections (Cobble Ridge 2): negative balance about $90,000; about $231 per unit; roughly $23 per unit per year over 10 years. - Broadstone (combined overlay districts): combined negative balance about $597,000; about $236 per unit; about $24 per unit per year over 10 years. - Natoma Station: negative balance about $729,000; projected operational deficit for the coming fiscal year reduced by proposed spending cuts; representative per-unit payback was presented as about $391 per unit (about $33 per year over 10 years) under the sample amortization.

Larson said staff prioritized Briggs Ranch, Broadstone and Natoma Station for outreach in the coming fiscal year, with Hannaford Cross and Cobble Ridge/Reflections scheduled for fiscal year 2026–27. He also described the Prop 218 process steps: initiation and ordering the engineer's report, approval of the preliminary report and ordering balloting, a 45-day waiting period, and then tabulation and public hearing to declare results.

Council discussion and direction The city manager and other staff told the council they recognized past shortfalls in communications and that the city must improve outreach so property owners understand how assessments, deficits and the Prop 218 process interact. The city attorney confirmed staff were following legal requirements for Prop 218 and the L&L Act of 1972.

Councilmembers asked for clarity about whether continuing the current level of service during outreach would increase districts' deficits and whether that risk was acceptable. City staff said their recommendation was to continue base-level services for districts undergoing outreach while they complete balloting, but that Natoma Station's budget reflected deeper required cuts unless the district's voters approve a new assessment. Staff later said the council could direct staff to continue Natoma Station's current level of service during the outreach period if the council wished.

Public comment and neighborhood advocacy Multiple residents from Natoma Station and other districts addressed the council during the item. Michael Aemet (identified in the public record as a Natoma Station resident) said he initially voted "no" in the district ballot but had changed his mind after seeing the district's finances and urged the council to continue services while a new ballot proceeds. Kevin Goddard, another Natoma Station resident active in outreach, urged continued maintenance and promised resident-led outreach to turn no votes into yes votes. Several other speakers asked the council to keep services in place for the coming fiscal year while outreach proceeds.

Formal action The council voted to adopt Resolution No. 11399, approving the preliminary engineer's report and directing the engineer to include a table reflecting revenues, expenses and account balances in the final engineer's report. The council also directed staff to continue outreach and to return on June 24 with a resolution to initiate Prop 218 proceedings for Natoma Station; staff said a public hearing to tabulate ballots is planned for July 8, 2025. The motion carried unanimously (Raffel, Rohrbach, Kozlowski, Leary and Aquino voting yes).

What happens next Staff will perform district-specific outreach (in-person "roadshow" presentations, targeted social media, and updated district web pages) and return to council with the final engineer's report, the recommended amortization and any proposed assessment rates. If a district's ballot fails, staff said the council would need to consider service reductions in that district consistent with the budget adopted for fiscal year 2025–26.

Timeline notes from the presentation and staff answers to council questions: the Prop 218 process requires a legally required 45-day period between ordering balloting and the tabulation hearing; a successful ballot typically results in assessments appearing on property tax rolls the next fiscal year (staff estimated revenue flow toward the end of fiscal year 2026–27 for a timely successful ballot).

Ending Councilmembers repeatedly urged improved public outreach and clearer district fact sheets. Staff committed to building a dedicated L&L district web portal with the engineer's data and outreach materials for each district and to present a final engineer's report with the revenue/expense table requested by the council.