Stockton City Council Special Budget Study Session - June 5, 2024

On June 5, 2024, the Stockton City Council held a special budget study session to review the proposed Fiscal Year (FY) 2024-25 Annual Budget, Fee Schedule, and the 2024-2029 Capital Improvement Plan. No formal action was taken; the session was informational only. The meeting began at 5:33 PM and adjourned at 7:36 PM.

Public Comments & Testimony

• Dan Richardson expressed support for the increased economic development budget but urged the city to focus on brick-and-mortar businesses and better regulate vendor trucks in parks, which he believes are under-taxed and harm local businesses.
• Katya Evanhoe criticized the council's priorities, citing the cutting of historical trees (Alder at Pacific), loss of tree canopy, inadequate sidewalk maintenance, unmarked crosswalks, misuse of Measure A and Measure W funds, underfunded animal services, minimal police presence on Pershing Avenue, incomplete bike lanes, and lack of affordable housing in developments. She questioned the high salary of the city manager ($300,000 base) and argued for more low-wage workers to improve department efficiency.

Discussion Items

• City Manager Harry Black introduced the budget as responsibly balanced, focusing on necessities and moving from post-bankruptcy recovery to renewal. Budget Officer Imelda Arroyo presented citywide expenditures of $956 million (up 4.8% from FY 2023-24), with utilities at 20%, police at 19%, insurance/benefits at 19%, and fire at 9%. Total revenues are $873 million, with expenditures exceeding revenues due to one-time capital expenses. The general fund expenditure budget is $328.3 million, with police at 54% ($177 million) and fire at 20% ($66 million). The long-range financial plan assumes renewal of Measure A and strong communities tax; pension trust will be drawn starting FY 2028-29.
• Economic Development Director Carrie Wright highlighted a $1.5 million capital outlay for the redevelopment fund, $2 million for MLB-mandated ballpark improvements, and fee adjustments for Pixie Woods, hall rentals, and street closure barricades.
• Community Services Director Kris Farro proposed three new positions (one for aquatics, two library assistants), expansion of library digital/multilingual collections, elimination of adult library overdue fines, and fee changes for aquatics, softball, and esports. The Victory Park Pool project requires additional funding.
• Public Works Director Chad Reed reported 181 active capital projects, including street resurfacing (20 centerline miles), homeless encampment cleanups (27 planned), and requested one new program manager position. Capital Improvement Plan totals $1.4 billion over five years.
• Municipal Utilities Director Dr. Mel Lytle covered water, wastewater, and stormwater projects. The Regional Wastewater Control Facility rebuild is 92% complete. Stormwater fund balance is $3.2 million and significantly underfunded; a rate study is expected in early 2025.
• Police Chief Stanley McFadden presented a $184 million budget (up from $168 million), with 356 sworn officers (goal 425). Hiring improved: 44 officers hired year-to-date vs 31 last year. Six new positions include animal service officers, dispatch supervisor, and IT specialist. The department handled 666,000 calls for service.
• Fire Chief Richard Edwards outlined a $84.5 million budget, with 13 fire stations and restoration of Truck 7 in July. Seven percent sworn vacancy, but an academy starting August 1 will fill 15 vacancies. Five new positions include IT for communications and staffing for Truck 7.
• Community Development Director Stephanie Ocasio requested one engineering technician. No fee changes. A nexus study for development impact fees is underway.
• Information Technology Officer Jamil Niazi focused on network infrastructure, cybersecurity, and a new ticketing system. One net new position.
• Human Resources Director Rosemary Rivas highlighted transition to bi-weekly payroll, recruitment/retention strategies, and increased health premiums. Budget reflects COLA increases.
• Deputy City Manager Jay Kapoor (Administrative Services) proposed four new positions (two procurement, one budget analyst, one admin analyst). Debt service totals $53 million, with the only general fund-backed debt being the assured guarantee settlement ($10.4 million). Fee changes include increases for cannabis businesses.
• Deputy City Manager Courtney Christy covered non-departmental (election expenses, opioid settlement fund) and charter offices (city attorney, auditor, clerk, manager). Four new grant-funded positions for environment and sustainability team.

Key Outcomes

• No votes or formal decisions were taken; the session was for information and discussion only.
• The public hearing on the FY 2024-25 budget and fee schedule, along with potential council action, is scheduled for June 18, 2024.
• Several department presentations noted positions and funding requests that will be considered at the June 18 hearing.