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Frequently Asked Question: Cost-Cutting Measures Amid Financial Challenges

Post Date:05/24/2024 7:11 a.m.

The City of Folsom is committed to informing our community about the city's financial challenges and answering community questions about the budget. 

Question: Why can't the city explore avenues to reduce expenses or enhance efficiency?

Answer: Since the Great Recession, the city has been taking steps to cut costs. 

As a service organization, the city's biggest expense is employee costs. In fact, the city has about 38% fewer employees per capita than in 2008.

Cost-cutting measures that have been implemented include:

·       Reduced staffing levels.

·       Hiring part-time or contract employees.

·       Increased employee contributions toward retirement (employees pay their entire share).

·       Eliminated retiree health benefits for new employees.

·       Increased employee contributions to health benefits.

·       Restructured education incentive pay for cost savings.

·       Extended the number of steps in pay ranges to have smaller annual pay increases.

·       Eliminated longevity pay for new employees.

·       Capped accrued leave balances and cash-out amounts.

See answers to other frequently asked questions.
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