FOLSOM, Calif. — A citizens’ effort to place an increased sales tax measure before Folsom residents formally qualified Friday for the November election.
Folsom Takes Action (FTA), a citizen-led group working to increase the city’s current sales tax from 7.75% to 8.75%, collected an estimated 5,796 valid signatures to qualify the initiative for the November 2024 ballot, according to Sacramento County. The initiative needed 5,071 to qualify based on the number of votes last cast for governor.
Folsom City Council approved a resolution placing the measure on the ballot at council meeting on May 28.
An estimated 40% of city sales tax revenue is generated by non-Folsom residents, according to a presentation to city council by City Manager Elaine Andersen in October 2023.
Andersen said if nothing changes in sales tax revenue, the city predicts a $1.1 million funding gap by 2025, a $3.5 million gap by 2027 and a $4.6 million gap by 2029. The funding deficits are primarily caused by people turning to online sales for their purchases, and the trend began before the pandemic, she said.
FTA estimates the tax would raise $29 million annually for the city.
The increased sales-tax measure, if successful, would allocate money in the following ways, according to a title and summary of the proposed ballot measure:
- 20% would go toward police and crime reduction.
- 20% would go toward fire, rescue and emergency medical services.
- 15% would go toward parks, recreation facilities and trails.
- 15% would go toward traffic mitigation and environmental water quality.
- 15% would go toward community enhancement and economic development.
- 15% would go toward major capital improvement projects.
All funds generated by the tax would remain in Folsom, and their uses would be subject to review by a citizens’ oversight committee, the FTA said. Funds generated by it could not be used to enhance pensions or retirement benefits for city employees.
The citizens’ measure proposes a nine-member oversight committee including representatives:
- From the city finance department.
- From the police department.
- From the fire department.
- From a recreational sports organization within the city.
- From a parks and trail organization within the city.
- Focused on streets and environmental stormwater.
- From a business community organization within the city.
The final two spots would be filled by at-large members who must be Folsom residents.
In 2018, the city placed a 0.5% general sales tax measure on the ballot, but it did not pass, ABC10 previously reported. In July 2022, a local sales tax measure was presented by city staff to city council, but the council declined to place the measure on the ballot.
