Stockton City Council Special Budget Study Session - June 2, 2026

The Stockton City Council held a special budget study session on June 2, 2026, from 9:01 AM to 3:12 PM, to review the proposed Fiscal Year (FY) 2026-27 Annual Budget, Fee Schedule, and the 2026-2031 Capital Improvement Plan. The proposed total city budget exceeds $1.05 billion, with a General Fund of $344 million, reflecting a 5% increase from the current year. The budget is structurally balanced but relies on planned use of reserves to address upcoming labor contracts and market-based salary adjustments for critical positions. No formal votes were taken; the budget adoption is scheduled for the June 9, 2026 council meeting.

Public Comments & Testimony

• Leslie Hearon urged full funding and a competitive contract for the Police Department, praising officers' bravery and the need to retain them.
• Antonia Fields expressed support for the Police Department, asking for a good budget to match their community service.
• Zoyla Moreno requested budget allocations for neglected Weston Ranch (District 6), a fair pay raise for police, and inclusion of funding for the annual July 4th Parade and Festival in the city budget rather than relying on council discretionary funds.

Discussion Items

• City Manager & CFO Presentation: City Manager Johnny Ford introduced the budget. CFO Gilbert Garcia presented a balanced $344 million General Fund, noting a structurally balanced budget but planned use of reserves for labor contracts. Sales tax growth has slowed to 1-2%. The budget adds a net of three positions (fire, MUD, city attorney) beyond 18 mid-year additions (mostly grant-funded). Capital Improvement Plan totals $1.58 billion over five years, with only $85.4 million funded in FY 26-27.
• Public Works (Peni Basalusalu): Focus on homeless encampment cleanups, deferred maintenance (e.g., traffic calming backlog), and street light repairs. $2 million previously allocated repaired 195 street lights and replaced 47,000 linear feet of stolen wire. A citywide street light assessment is underway, due in November. The department has four vacancies.
• Municipal Utilities (Jeff Marasovich): Presented $56 million in CIP for water, wastewater, and stormwater. Key projects include groundwater recharge, reservoir improvements, and sewer rehabilitation. Four new positions requested. Stormwater fund is low pending a Prop 218 vote on June 9. The department has 18 vacancies.
• Fire Department (Chief Bryan Carr): Proposed operating budget of $101.5 million, net cost to General Fund $75.9 million (3.4% increase). Staffing is 278 total (216 sworn, 62 civilian). 21 sworn vacancies; 29 sworn members eligible to retire. Recruitment focuses locally; a full-time recruiter was discussed but not requested. Fire station deferred maintenance ($500,000) included in CIP. Chief highlighted employee wellness (cancer, cardiac, suicide risks) and plans for new stations and dispatch center.
• Police Department (Chief Stanley McFadden): Proposed budget $188 million, with 76% for wages/benefits. Sworn staffing at 361, with 42 hires and 50 separations year-to-date. 65 candidates in backgrounds. 20 police aides (authorized 30). External revenues total $20.1 million. Crime reductions: homicides down 33%, violent crime down 10%, traffic fatalities down 47%. Budget requests focus on officer safety equipment, mandatory training, and evidence system replacement.
• Community Services (Audrey Jones-Taylor): Budget increase of 0.72%. Priorities include expanding youth programs (25% participation increase), literacy (20% increase), and extending aquatics through October. One new position (bookmobile driver) funded partly by county. Fee changes for youth sports camps. McKinley Community Center operations discussed with potential police partnership.
• Community Development (Stephanie Ocasio): Self-funded via fees; revenues projected to decrease 20% due to normalization of construction valuation. No new positions. Focus on streamlining permits using AI and technology (e.g., Sella system). Nexus study for public facility fees expected winter 2026.
• Economic Development (Christine Tien, Ricardo Noguera): New director Ricardo Noguera presented short-, mid-, and long-term strategies: attract three large revenue generators within 12 months, establish an Enhanced Infrastructure Financing District (EIFD) for downtown, target medical device and aerospace industries, and create an 18-hour downtown economy. A comprehensive economic development plan will be presented to council within 60 days.
• Non-departmental & Charter Offices (Will Crew, Johnny Ford): Includes legislative advocacy, elections, communications. City clerk office needs additional support. Office of Violence Prevention (OVP) two positions not filled due to grant timing; now funded by grants.
• OPTIC (Communications): Councilmembers Vice Mayor Lee, Padilla, and Enriquez criticized OPTIC for lack of measurable results and poor storytelling, despite engagement metrics claimed (400% engagement increase, 1100% follower increase). Vice Mayor Lee stated he would vote against the OPTIC budget without a clear work plan. City manager committed to presenting a plan within 60 days.
• Information Technology (Mike Migliori): Budget supports cybersecurity, GIS improvements, and new trunking radio system. 48 full-time positions (down from 54). Focus on Ask Stockton app improvements (district sorting, real-time tracking).
• Human Resources (Alecia Figieroa): 457 new employees onboarded in current year. Seven positions reduced (payroll moved, DEI moved). Priorities include managing rising benefit costs, improving hiring efficiency, and succession planning.
• Administrative Services (Gilbert Garcia): Succession planning within department; key division managers filled. Reorganization to create supervisory budget analyst series.

Key Outcomes

• Council received the proposed FY 2026-27 budget, fee schedule, and CIP for review. No formal action taken; adoption set for June 9, 2026.
• Council directed staff to enhance the Ask Stockton app with district sorting and real-time tracking.
• Council requested an economic development plan within 60 days from the new director.
• Council expressed strong dissatisfaction with OPTIC performance; city manager will return with a work plan within 60 days.
• Council committed to providing additional support for the city clerk's office.
• Council noted the need for a dedicated HR liaison for police department to expedite hiring.
• Council emphasized continued focus on grants to leverage external funding, with a target of 10% of the total budget for disinvested communities.