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.