By Sara Beth Williams–
The proposed plan to annex a five-and-a-half-acre section of unincorporated Sacramento County on the southern border of Citrus Heights won’t be moving forward anytime soon, city officials said this week.
In a statement Wednesday, the city said it had originally initiated discussions with the potentially impacted property owners in August 2025 by sending a letter. Following the letter, city staff met with property owners as well as the Local Agency Formation Commission, or LAFCO, in November to further discuss possible annexation, answer questions, and discuss concerns.
The city proposed to the council during an Aug. 13, 2025 City Council meeting the potential annexation of the section of commercial and residential areas located at the corner of Madison Avenue and Fair Oaks Boulevard that is just outside Citrus Heights in Fair Oaks, an unincorporated part of Sacramento County.
Following the presentation, the City Council gave city staff the green light to proceed with an annexation work plan.
“After the November meeting [with property owners], staff had numerous follow-up conversations providing additional information to property owners based on discussions in November and follow-up questions,” the city said in an email.
In order for an annexation to take place, all property owners and residents in the impacted unincorporated area must vote in favor of being annexed into Citrus Heights.
During an initial annexation study in 2022 where the city spent months looking into whether annexing several sections of the city would be financially feasible, the city found annexing would result in negative financial impacts to the city.
In a staff report at the time, the city said annexing the small section at Fair Oaks Boulevard and Madison Avenue was originally found to result in negative financial impact due to the required service upgrades needed for the signals at the intersection.
Since the original study from 2022, Sacramento County has approved a major modernization plan for Madison Avenue, which includes upgrading signal infrastructure and repaving sections of the main thoroughfare, including a section located in Citrus Heights between San Juan Avenue and Fair Oaks Boulevard.
A new cost estimate completed in 2025 suggested that the city could see a neutral or positive financial impact if the portion of unincorporated Sacramento County was annexed following completed upgrades to the corner.
“The owners had various levels of interest, however, the majority ownership indicated they are not interested in annexation,” the city said. “Without the majority owner being interested in annexation, further pursuit of annexing this area is not viable at this time.” ‘
At least two City Council members expressed interest in seeking annexation of both the corner of Fair Oaks Boulevard and Madison Avenue, as well as other portions on the city’s western border, during an annual strategic planning meeting held in mid-March. However, throughout discussions of multiple priorities, the majority of city staff and council members have
