LODI CITY COUNCIL
SPECIAL MEETING
CARNEGIE FORUM
305 W. PINE STREET
WEDNESDAY, FEBRUARY 26, 2025 ‑ 4:00 P.M.
A. Call to Order / Roll Call
The Special City Council meeting of February 26, 2025, was called to order by Mayor Bregman at 4:02 p.m.
Present: Council Member Craig-Hensley, Council Member Hothi, Council Member Nakanishi, Mayor Pro Tempore Yepez, and Mayor Bregman
Absent: None
Also Present: City Manager Carney, City Attorney Lucchesi, and City Clerk Nashed
B. Regular Calendar
B.1 Study Session on the City Long‑Range Financial Forecast (CM)
Attachments: Attachment ‑ PowerPoint Presentation
City Manager Carney provided a brief introduction. Bob Leland, of Baker Tilly Advisory Group, provided a PowerPoint presentation regarding the City's long‑range financial forecast. Specific topics of discussion included the firm's and consultant's extensive forecasting experience; background; historical perspective: budget vs. actual; looking ahead: forecasting model process; City's five‑year forecast in FY 25 budget; revised baseline forecast: major assumptions; revised baseline forecast; General Fund revenue forecast comparisons; General Fund expenditure forecast comparisons; comparison of City's five‑year forecast to revised baseline forecast; forecast risks and uncertainties; key economic variables: recessions, pensions, and housing; potential budget changes: peaker plant purchase and rent, labor market adjustments, additional support staff positions, and Access Center Emergency Shelter; lack of sufficient resources to fund all desired budget augmentations: new revenue options (reimpose business license tax, increase transient occupancy tax (TOT), or impose added local sales tax rate); and next steps regarding revenues.
City Manager Carney clarified items discussed in the PowerPoint presentation, including the peaker plant, salary surveys, collective bargaining, and potential added positions.
Mayor Bregman spoke regarding the ability to attain a healthy budget with no deficit.
In response to Council Member Nakanishi, Mr. Leland provided information regarding recessions and the model not containing an assumption for the addition of police officers to accompany housing growth.
City Manager Carney provided additional information regarding planning for financing of additional services associated with future annexation and growth, including community facilities districts.
In response to Council Member Hothi, City Manager Carney stated the hydrogen hub and the police training facility near Flag City are not built into the model as revenue generating sources.
City Manager Carney stated that one of the goals is to bring the forecasting tool in‑house for use by the budgeting staff.
In response to Council Member Craig‑Hensley, Mr. Leland provided information regarding what factors into non‑personnel costs and tax estimates for new housing.
Council Member Craig‑Hensley spoke regarding projects, such as the added infrastructure associated with new development and the proposed sports facility, not being included in this model. She spoke further regarding community input on the potential sales tax increase and Council's need to make decisions to build the fiscal base to grow the City in a managed way.
Mayor Pro Tempore Yepez requested a live demonstration which excluded Access Center expenses and included an increase in the TOT and business license tax.
In response to Mayor Bregman, Mr. Leland clarified that the Access Center was included as part of the augmented services.
Mr. Leland provided a live demonstration which included Mayor Pro Tempore Yepez's criteria.
In response to Council Member Craig‑Hensley, Mr. Leland confirmed that the quarter‑cent sales tax is equivalent to the TOT and business license tax combined.
In response to Mayor Bregman, Mr. Leland provided information regarding sales tax for online sales and projected sales tax being based on HdL data.
City Manager Carney and Mr. Leland provided information regarding the inclusion of recessions in the forecasting model.
In response to Mayor Bregman, Public Works Director Charlie Swimley provided information regarding the ownership of the land at White Slough Water Pollution Control Facility.
Denise Wiman, a retired City employee, stated she was speaking regarding concerns from current City employees about the addition of executive management positions which will add a burden to the General Fund expenses and CalPERS liability, Lodi citizens paying the operating costs of the Access Center, and the potential purchase of the peaker plant raising electric rates.
Gary Wiman, a retired City employee, spoke regarding selling the Access Center to the Salvation Army for a dollar, saving the City $2.4 million in yearly operation costs; reduction of the General Fund Stabilization Reserve account by 1%, to save $800,000; and freezing the PERS stabilization account and using the money currently being paid into for the General Fund.
Antonio Amador, a member of the public, spoke regarding returning to the basics, such as police, fire, water, and wastewater; and the need to cut extra services.
Mr. Andrews, a member of the public, spoke regarding the need to sell the Access Center for a dollar to avoid the ongoing expenses of operation and maintenance, to promote and maintain businesses in Lodi, to repair City streets, and for the City officials to spend citizens' tax money efficiently.
John Kelly, a member of the public, requested information regarding operation expenses increasing 50% in the five‑year projection.
City Manager Carney stated he would be happy to meet with Mr. Kelly following the meeting.
JP Doucette, President of the Lodi Chamber of Commerce, stated that the growth of jobs and median household income has not kept pace with what is needed to support the level and quality of services and facilities that residents desire; that the City needs to understand the cost to get to the next level of service, such as entertainment and sporting venues, to improve the quality of life for residents and attract visitors to contribute to the local economy; and that there needs to be an understanding of what has constrained the City from achieving the broad‑based growth needed for a balanced budget.
Stephanie Kelly, a member of the public, spoke regarding the homeless situation.
Mayor Bregman spoke regarding the Point in Time count and the homeless situation in Lodi.
An unidentified member of the public, spoke in favor of not raising taxes, living within our means, and the homeless situation.
Mike Carouba, Economic Development Ad Hoc-Committee member, spoke regarding the need for economic and industrial growth, the poor state of the City’s infrastructure, delinquent maintenance in the City's departments, and the need to invest in bringing new businesses to Lodi.
Council Member Craig‑Hensley spoke regarding receiving outside input from the public regarding budgeting, the need for community support, and the need for the current Council to address this budget issue.
Mayor Bregman concurred with Mr. Carouba's point in regard to investing in the community and spoke regarding a more optimistic sales tax forecast and investigating additional options for the Access Center.
C. Adjournment
There being no further business to come before the City Council, the meeting was adjourned at 6:26 p.m.
ATTEST:
Olivia Nashed
City Clerk