Council starts process to raise Folsom TBID from 4% to 8%, promising oversight and public input
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Summary
TEDCorp and Choose Folsom asked the council to begin a process to increase the Tourism Business Improvement District from 4% to 8%, estimating roughly $1.1–$1.2 million annually for destination assets; council approved the resolution of intent and debated transparency, short‑term rentals and possible future bonding.
The City Council voted Nov. 12 to begin the formal process to increase the Folsom Tourism Business Improvement District (TBID) assessment from 4% to 8%, an action that starts a mail and notice process to hoteliers and opens a 45‑day public comment period.
Eileen Reynolds, chair of the Tourism and Economic Development Corporation (TEDCorp), and Sally Buchanan of Choose Folsom described the TBID as a business‑led, self‑assessed funding mechanism aimed at driving room nights and tourism spending. Buchanan said the additional 4% would be earmarked for capital projects and facilities that increase overnight stays — examples discussed included conference space, indoor sports venues and destination amenities — and that a stakeholder task force would guide prioritization.
"With that increase, we plan to dedicate the new 4% and keep it separate so it is just used for building new destination asset infrastructure or making improvements to current" Buchanan said, adding staff would form a committee including hotels, city representatives and parks/planners.
John Lambeth, a TBID consultant with Civitas, said the council would later need to approve any specific capital project or bonding. He added that, unlike a tax increase, a TBID does not require voter approval but does require council oversight and support from the hoteliers. The consultants estimated the additional 4% would generate approximately $1.1–$1.2 million per year; presenters and the consultant said TEDCorp and the TBID are subject to public‑meetings transparency (Brown Act) and annual reporting.
Several council members, including Barbara Leary, pressed for transparency about how the new money would interact with existing city support for tourism and how the city and community would retain oversight. Some speakers urged including short‑term rentals (Airbnb/VRBO) in future modifications; staff and consultants said that option is possible but would require additional stakeholder work and ordinance changes when the council returns with any bonding or project proposals.
The council adopted the resolution of intent (11506) to begin the process by mail to hoteliers and scheduling the required public meeting and hearing. The decision starts the 45‑day notice and protest period; final adoption would follow public meetings and any protest results.