Stockton City Council
June 5, 2024

FY 2024-25PROPOSED BUDGETJune 5 & 6, 2024 Study Session AGENDABudget Overview General FundDepartment PresentationsClosing Budget Overview
Budget Development•Council goal setting – February 2024•Long-Range Financial Plan Updates •Long-term solvency •Department Funding Requests•Prioritizing position and service demands within available resources

Issues and Influences•Uncertainty in the economy•General Fund Revenues / Recession Cycles•Inflation & increases in the cost of providing the same level of service•Retention and Recruitment•Competitive labor market•Labor Negotiations•Funding needs exceed funding capacity•Plan for future CalPERS cost increases Citywide ExpendituresTotal = $956 million [Page B-14]
Utilities20%
Police19% Insurance and Benefits - Internal Service Funds19%Fire9%Public Works8%Administration6%Community Services4%Economic Development4%Community Development2%Capital Projects Funds3%Non-Departmental4%Debt Service Funds2% Citywide Expenditures[Page B-8]FY 2023-24 FY 2024-25Department Budget Budget ChangeUtilities 204,765,409$ 194,163,014$ (10,602,395)$ Police 168,002,953 186,308,925 18,305,972 Insurance and Benefits 158,404,763 183,403,854 24,999,091 Public Works 67,954,465 76,893,790 8,939,325 Fire 76,083,743 86,144,140 10,060,397 Administration 43,604,770 52,919,382 9,314,612 Capital Projects Funds 54,518,890 25,482,395 (29,036,495) Community Services 43,762,383 36,713,090 (7,049,293) Economic Development 33,482,968 38,694,208 5,211,240 Non-Departmental 30,313,141 34,521,621 4,208,480 Debt Service Funds 18,566,331 19,787,511 1,221,180 Community Development 12,705,158 20,644,274 7,939,116 912,164,974$ 955,676,204$ 43,511,230$ Citywide RevenuesTotal = $873 million [Page B-16]
Utilities20%
Insurance and Benefits - Internal Service Fund21%Public Works6%Community Services3%Fire3%Administration2% Community Development2%Economic Development2%Police2%Non-Department35%Capital Projects Funds1%Debt Service Funds1% Budget Highlights•Expanded Services•Other new adds on page A-5•New Positions Citywide Positions Summary[Page B-5]•12 positions added and 60 police positions reprogrammed towards recruitment and retention during FY 2023-24•31 new proposed positions3 Fire Captains1 OVP Admin Aide I2 Fire Fighter Engineers2 ASD Procurement Specialist1 PW Program Manager III1 ASD Senior Budget Analyst1 CSD Recreation Assistant – Aquatics1 ASD Admin Analyst I2 CSD Circulation Assistant II1 IT SR GIS Analyst1 CDD Engineering Technician I1 IT Systems Analyst I2 MUD Senior Electrical Technicians1 IT Technology Support Specialist II2 MUD Plant Maintenance Workers1 Police Mail Courier1 MUD Public Works Inspector2 Police Animal Services Officer1 MUD Water Systems Operator1 Police Telecommunicator1 MUD Water Systems Supervisor1 Police Admin Aide II1 MUD Junior Engineer Authorized Full-time Positions

Salary and Benefit AssumptionsFY 2024-25 budget includes COLAs as follows:•Fire Mgmt 4% Base pay (2% COLA/2% Market Adj)•Fire 4% Base pay (2% COLA/2% Market Adj) •Police Mgmt 4% Base pay (2% COLA/2% Market Adj) •Police 4% Base pay (2% COLA/2% Market Adj)•SCEA, Mid- Mgmt, Water Sups, Unrep 3%•Operations and Maintenance 8% Effective 5/1/24; 0% in FY 2024-25•Trades and Maintenance 8% Effective 5/1/24; 0% in FY 2024-25•General Fund Vacancy Savings 6.3% for PD and 4.3% for everyone else or $11.2 million•FY 2024-25 CalPERS cost increase•Safety Rates increased to 84.96%•Misc. Rates increased to 28.45% Five-Year Capital Plan by Category - $1.4 Billion
GENERAL GOVERNMENT$398.7 27%
TRANSPORTATION$779.1 54%
UTILITIES$281.4 19%Five-year 2024-29 CIP Projects by categoryTotaling $1.4 billion(dollars in millions)

GENERAL GOVERNMENTTRANSPORTATION

UTILITIES
General Fund
General Fund ExpendituresTotal = $ 328.3 Million[Page C-1] Police54%Fire20%
Administration8%Public Works7%Community Services2%Economic Development3%Capital Improvements2%Debt Service3%Other Programs1% General Fund RevenuesTotal = $ 320.5 Million [Page C-2] Sales Tax39%Property Taxes24%
Utility Users Tax14%Program Revenues6%Franchise Tax6%Business License Tax6%Interfund Reimbursements3%Other Taxes1%Investment Proceeds1% General Fund Balance[Page C-3]FY 2023-24 FY 2024-25 %Projected Proposed Variance VarianceBeginning Available Balance $61,447,389 $73,666,688Projected Total Revenues 320,261,614 320,483,471 221,857 0.1%Projected ExpendituresEmployee Services 183,867,624 217,308,936 33,441,312 18.2%Other Services 52,739,978 68,110,418 15,370,440 29.1%Materials & Supplies 6,586,645 8,037,185 1,450,540 22.0%Other Expenses 2,933,777 5,203,097 2,269,320 77.4%Capital Outlay 399,049 1,606,600 1,207,551 302.6%Loan Repayments 9,061,425 8,887,050 (174,375) -1.9%255,588,498 309,153,286 53,564,788 21.0%Transfer Out (18,169,666) (19,126,535) (956,869) 5.3%Fund Balance Restrictions (34,284,152) - Net Annual Activity 12,219,299 (7,796,349) Estimated Ending Balance $73,666,688 $65,870,339 Long-Range Financial Plan with FY 2024-25 Proposed Budget[Page C-10]

Department Presentations
Economic DevelopmentCarrie Wright-Director of Economic Development

Department Description•Economic Development & Real Property•Events and Parking•Housing & Homelessness Programs•Business Operations & Successor Agency Key Considerations•Strengthen Local Business Climate•Transform Downtown •Activate Public Spaces•Updated Technology•Delivery of Housing and Homelessness Projects

Position Summary[Section O]

Financial SummaryDollars in thousands [Section I]

General FundDollars in thousands [Section I]

FY 2024-25 Budget/PlansBUSINESS DEVELOPMENT & PROPERTY MANAGEMENT•Facilitate connections between small businesses and available resources•Continue to attract investment – Retail Strategies•Implement SBA Earmark Grant – Arena Parking Garage Space

FY 2024-25 Budget/PlansBUSINESS DEVELOPMENT & PROPERTY MANAGEMENT•Redevelopment fund•Staff augmentation through consulting services for Real Property activities•Continue environmental work – Water Board•South-Pointe Project

FY 2024-25 Budget/PlansEVENTS & PARKING•Banner Island Upgrades – MLB requirements•Continue activation of Entertainment Venues•Parking Garage Security System and Cameras•Continue investing/improvements of parking facilities•On-Street Parking Fees

FY 2024-25 Budget/PlansEVENTS & PARKING•Civic Auditorium’s 100th, Pixie Wood’s 70th •New Technology for Special Events•Right-Sizing Special Events Team

FY 2024-25 Budget/PlansHOUSING & HOMELESSNESS•Continue to Improve Upon Policies and Procedures in Administration of HUD dollars•Development of Five-Year Consolidated Plan•Deliver Affordable Housing Projects•Single Family Rehab Program

FY 2024-25 Budget/PlansHOUSING & HOMELESSNESS•Continue Administration of HHAP Funds –Five Rounds•Project Pathways•Navigation Center

Fee Changes
Current ProposedAdmission - School Field Trip, per Person (3-ride tickets) $6 $7Admission - School Field Trip, per Person (No ride tickets) $3 $4Rental - Birthday Party Room (1.5 hours) $50 $100DescriptionAdmission - Season Pass Family Add-on (Max. of 2 add-ons per membership)DescriptionDeposit for all hallsBalcony RentalKitchen RentalDescriptionEvent Street Barriers - Street Closures (special events) CHANGESDescriptionPixie WoodsNew Fees$180Downtown Parking DistrictNew Fees$440$10Stockton Memorial Civic Auditorium New Fees$1,400$1,000 Community ServicesKris Farro-Director of Community Services

Department Description•Stockton - San Joaquin County Public Libraries–16 branches (8 City, 8 County)–1 Bookmobile •Recreation•4 Community Centers & 1 Senior Center•6 Pools•Mobile Recreation & Library•Teen Programs•Youth & Adult Sports•Neighborhood Events•Contract Facilities

Key Considerations
Expand youth & teen enrichment programs
Enhance aquatics programs
Increase multilingual access
Meet patron demand for digital library & seasonal camps Conduct a Community Interest Assessment – Strong Communities Complete installation of Public Art –Victory Park
Solicit funding sources for Van Buskirk Golf Reuse
Improve public safety and security at all facilities
Position Summary [Section O]

Financial Summary [Section G] Dollars in Thousands

Library Fund[Section G] Dollars in Thousands

FY 2024-25 Budget/Plans: Library
Expand multilingual & digital access
Develop a new library website
Develop design plan - Chavez Central Library
Eliminate overdue fees
Meet patron demand –Escalon, Lathrop
Renovate Angelou, Manteca and Linden
Increase security hours – County branches
Recreation Fund[Section G] Dollars in Thousands

FY 2024-25 Budget/Plans: Recreation
Grow social media and marketing efforts
Increase multilingual access
Continue CalFresh programming
Improve safety systems – Oak Park Senior Center
Continue Expanded Stockton Arts Commission Grants
Partner with Table Community Foundation-Outdoor Equity Program Grant Provide free swim lessons through Brian M Stocker Grant FY 2024-25 Budget/Plans: Capital Projects
- General Fund
- Measure M
Oak Park Senior Center Restroom / ADA Upgrade -$150,000 Maya Angelou Library Emergency Exit -$119,000
Victory Park Pool - $2,500,000
Strong Communities Fund[Section G] Dollars in Thousands

Strong Communities FundFocus:To preserve & expand existing library and recreation programs, re-open & upgrade facilities, services and collections, & extend services to under-served areas.

Strong Communities Fund: 16 Year Experiment Plan
Program Delivery-25 restored positions-Part time staff hours-Expanded operating hours -Northeast Library & Community Center-Fair Oaks Library-Programming & Materials-City Events Capital Projects – In Progress or Complete-Troke Library Remodel-Soccer Complexes (McNair, Stockton)-Northeast Library & Community Center -Aquatics RenovationsVictory, McKinley, Oak Park-Chavez Central Library-Bookmobile Replacement New Funding Requests-Community Interest Assessment-Expand digital & multilingual library collection-Refresh Maya Angelou Library -New Library Website-Enhance patron access to online training-Enhance Aquatics programming-Continue enhanced teen programming-Expand Mobile Library & Recreation Programs-Expand Seasonal Camps including Youth Theater Camp FY 2024-25 Budget/Plans: Capital Projects
Supplement Victory Park Pool funding - $2.5 million

Fee Changes
Library – eliminate overdue materials fees
Aquatics – establish fees for entry and swim lessons
Sports – consolidate softball league and admission fees Esports – set annual change based on Consumer Price Index Public WorksChad Reed-Director of Public Works

Department Description•Operations & Maintenance •Parks•Street Trees•City Facilities•Street & Transportation System Maintenance•Fleet Services•Maintenance Assessment Districts •Engineering•Traffic•Capital Projects•Development Review•Waste & Recycling•Fiscal & Compliance•Administration Key Considerations• Implementation of new state regulations for organics & limited market for recyclables• Transportation infrastructure maintained with SB1 funds• Increased construction & maintenance costs• Extensive Capital Improvement Program delivery• Deferred maintenance backlog• Aging infrastructure Position Summary[Page O-7 to O-9]FY 2023-24 FY 2024-25Adopted Proposed VarianceGeneral Fund 58 59 1 Special Revenue Funds 85 85 - SJAFCA 1 1 - Fleet - ISF 27 27 - Total 171 172 1 Financial SummaryDollars in thousands [Section F]GeneralMeasure KWaste & Maint.Capital Prj.FleetFund Gas Tax Maint. Recycling Districts Admin. Services Total18,307$ 15,125$ 10,459$ 20,814$ -$ 21,127$ Revenues 27$ 17,090 8,238 3,934 4,625 4,900 17,690 56,504$ Expenditures 23,981 9,060 5,682 4,060 6,334 4,900 14,457 68,474 TransfersTransfer in - - - - - - - - Transfer out - (6,800) (1,612) - (8) - - (8,420) - (6,800) (1,612) - (8) - - (8,420) Net Annual Activity (23,954)$ 1,230 944 (126) (1,717) - 3,233 (20,390)$ 19,537$ 16,068$ 10,333$ 19,097$ -$ 24,360$ Beginning Available BalanceEnding Available Balance General FundDollars in thousands [SectionF]FY 2023-24 FY 2024-25 %Projected Proposed VarianceEmployee Services 7,439$ 8,161$ 9.7%Other Services 10,030 13,590 35.5%Materials and Supplies 1,024 2,129 107.9%Other Expenses 91 101 11.0%Total 18,584$ 23,981$ 29.0% FY 2024-25 Budget/PlansProposed work for Fiscal Year 2024-25•Replace sidewalksat 150 locaƟons •40 wheelchair ramp installations •Resurfacing of 20 centerline miles of streets •Crack seal 45 centerline miles of streets •Replace 60 traffic signal detector loops•Re-stripe 30 intersections and re-stripe 6 centerline miles of streets FY 2024-25 Budget/PlansProposed work for Fiscal Year 2024-25•Perform 27 large-scale homeless encampment cleanups in partnership with PD •Increase awareness of volunteer opportunities via the Clean City Initiative•Enhance outreach efforts on available free and low-cost recycling and disposal options for residential, commercial, and multifamily customers•Increase contracted services to enhance homelessness cleanup efforts FY 2024-25 Projects in ConstructionAirport Way over Mormon Slough Bridge Fire RepairChannel Street Improvements – Aurora to StanislausCalifornia Street Road DietAnimal Shelter RenovationColumbus Park RenovationsMcKinley Park RenovationsDigital Camera UpgradesFiber Optic Master Plan Construction Phase 1Safe Routes To School Safety and ConnectivityVictory Park RenovationFong Park Phase II ConstructionSystemic Pedestrian SafetyGreater Downtown Bike and Ped ConnectivityAlpine-Pershing-Mendocino Bike-Ped Connectivity FY 2024-25 Projects in ConstructionMiracle Mile Parking Lot Resurfacing Lots A and CWeber Point Events Center Shade Structure RehabGrupe Park Parking Lot ResurfacingOak Park Senior Center Parking Lot ResurfacingCitywide Sidewalk RepairLED Street Light Conversion Phase 6Local Street Resurfacing Program Projects(Pavement Repairs, Slurry Seal, and Crack Sealing)Arch Airport Road Traffic Signal Synchronization andSignal PrioritizationMiracle Mile Rectangular Rapid Flashing BeaconImprovementsNeighborhood Traffic Management Program(NTMP) FY 2024-25 Projects in DesignNeighborhood Traffic Management Program(NTMP)South Stockton Pedestrian HAWKS ImprovementsAlpine/Alvarado Street Traffic SignalNorth Pershing Avenue Safety EnhancementsLeft Turn Pockets at Harding/Pacific andHarding/LincolnFY23-24 Street Resurfacing on Fed-Aid StreetsLocal Street Resurfacing Program FY 24-25Sidewalk, Curb, and Gutter Repairs Program FY 23-24ADA Curb Ramp InstallationDr. Martin Luther King Jr. Blvd UnderpassReconstructionEnhanced Pedestrian Safety on Madison FY 2024-25 Projects in PlanningMiracle Mile Improvement ProjectPedestrian Crossing UpgradesPublic Safety ImprovementsRevitalization ImprovementsEight Mile Road Precise Road PlanMariposa Road Precise Road PlanSafe Streets for All -Vision Zero PlanLower Sacramento Road WideningPacific Avenue Precise Road PlanCesar Chavez Library RemodelMain and Market Street precise RoadPlan Capital Improvement PlanChad Reed-Mel Lytle

Five Year Plan•Includes over $1.4 B in projects:•$779.1M - Transportation projects•$398.7M - Facilities, Police, Fire, Library & other Citywide projects •$281.4M - Municipal Utility projects•Funding sources identified for first year projects•Unfunded projects•$538.6M Capital Improvement Plan Process•Assess capital needs •Plan projects list•Identify Funding Sources•General Fund•Transportation•State, Federal & Local Grants•Utilities•Review & recommend•Adopt Plan FY 2024-25 CIP by CategoryPlanned $58.1 million
GENERAL GOVERNMENT$7.2 13%
TRANSPORTATION$15.3 26%
UTILITIES$35.5 61%FY 2024-25 CIP PROJECTS BY CATEGORYTOTALING $58.1 MILLION(DOLLARS IN MILLIONS) FY 2024-25 CIP by SourcePlanned $58.1 million
CITY FUNDS$5.7 10%MEASURE K$1.6 3%PUBLIC FACILITIES FEES$1.6 3%STATE AND FEDERAL GRANTS$5.6 9%UTILITIES$35.5 61% GAS TAX AND TRANSPORTATION$8.0 14%CIP FUNDING FOR FY 2024-25 TOTALING $58.1 MILLION(DOLLARS IN MILLIONS) Key Considerations• Limited General Fund resources• Funding from external grants & resources• Transportation improvements funded primarily by cyclical & competitive grants• Competition for qualified contractors• Increasing regulatory complexity & contracting requirements• Significant accrual of deferred maintenance FY 2024-25 Budget/PlansTransportation ProjectsSRTS Sidewalk Gap ClosureMLK Underpass ReconstructionAccessible Pedestrian Signals (APS)ProgramCitywide Traffic Safety ProgramWest Lane @ UPRR Queue CutterMain and Market Complete Streets Phase1- ATP Cycle 6Alpine Pershing Mendocino Bicycle-Pedestrian Connectivity – ATP Cycle 6Downtown Stockton Weber Avenue Bikeand Ped Connectivity – ATP Cycle 6 FY 2024-25 Budget/PlansTransportation Projects (continued)Wilson Way Safety Lighting at the BNSF Underpass- HSIP Cycle 11El Dorado Street Pedestrian and Bicycle SafetyConnectivity - HSIP Cycle 11Hammer Lane Traffic Safety Improvements - HSIPCycle 11Systemic Pedestrian Safety Enhancements - HSIPCycle 11Bridge Rehabilitation and Replacement Program –Phase 7LED Street Lights Conversion – Phase 6Neighborhood Traffic Calming ProgramCity Street Restriping ProjectStreets Resurfacing on Federal-Aid Streets ProgramTraffic Signal Control Program FY 2024-25 Budget/PlansTransportation Projects (continued)Traffic Signal Modification ProgramAirport Way over Mormon Slough FireDamage RepairLocal Street Resurfacing ProgramSidewalk, Curb, and Gutter RepairProgramStreet Furniture PaintingStreet Light Pole ReplacementAirport Way Sewer Trunk RehabilitationLincoln Road Sanitary Sewer TrunkRehabilitation FY 2024-25 Budget/PlansGeneral Fund Projects Dollars in thousands•$100 ADA Compliance Program•$200 Community Center Security Cameras•$150 Oak Park Senior Center Restrooms and ADA Upgrades•$1,100 Roof Replacement and Construction Program•$895 New City Hall Renovations and Relocation•$300 Center Street Weir Repair•$119 Maya Angelou Emergency Exit•$375 Exeloo Installations at City Parks FY 2024-25 Budget/PlansStrong Communities/Measure M FundDollars in millions•$2.5 Aquatic Facilities Renovation at Victory Park FY 2024-25 Budget/PlansWaterDollars in millions$5.0 DWTP Recharge Basins$4.5 Advanced Metering Infrustructure$1.0 Water Well SSS#10$1.0 Northeast Reservoir and Associated Pump Station$1.0 Eight Mile Rd Water Line Reimbursement$0.68 S. Stockton Groundwater Well Rehabilitation at Well SSS8 FY 2024-25 Budget/PlansWastewaterDollars in millions$6.0 Westside Interceptor Parallel Force Main$2.3 Sanitary Sewer Large Diameter Lines Replacement AMMP $2.1 Lincoln Road Sanitary Sewer Line Rehab $2.1 South Tuxedo Avenue Sewer Trunk Rehabilitation $1.2 Pershing Ave Sewer Trunk Rehabilitation $1 Scibner Street Area Backyard Sewers FY 2024-25 Budget/PlansStormwaterDollars in millions$0.25 Storm Drain System Emergency$0.25 Storm Pump Station Transfer Switch$0.1 Rose Street Assessment and Repair Municipal UtilitiesMel Lytle-Director of Municipal Utilities

Department DescriptionWater Utility•Treat & deliver water to approximately half of the Stockton communityWastewater Utility•Collect & treat wastewater for the entire Stockton area•1,454 miles of pipelines•27 pump stationsStormwater Utility•Collect & discharge surface runoff•Provide flood control with local basins•600 miles of pipelines •77 pump stations

Key Consideration•Regional Wastewater Control Facility (RWCF) Modifications Project•Wastewater & Stormwater Rate Study•Initiate Water Resources Projects

PositionSummary[Section O]

FinancialSummary
[Section J] Dollar in thousands
Water Fund[Section J] Dollar in thousands

FY 2024-25 Budget Plans•Implement 3.5% Water rate increase (year 4 of 5)•Continue maintenance at Delta Water Treatment Plant and reservoirs•Increase in chemical treatment and energy cost•Re-budgeting for fleet assets due to supply chain issue•New CIP appropriation of $14.3M

Wastewater Fund[Section J] Dollar in thousands

FY 2024-25 Budget Plans•Completion of construction of RWCF Modifications Project•Wastewater Rate Study•Increase in chemical treatment and energy cost•Re-budgeting for fleet replacements due to supply chain issue•New CIP appropriation of $20.6M

Stormwater Fund[Section J] Dollar in thousands

FY 2024-25 Budget Plans•Stormwater Rate Study•Continue Regulatory Compliance and Planning•CPI 3% increase in the assessments for Consolidated Storm Drain districts and Industrial Storm Basins•New CIP appropriation of only $600K, due to lack of funding

Fee Changes•Water rate increase 3.5% (per 2020 Water Rate Study)•Delta Water Surface Water Connection Fee increase (per 2009 DWSP Report)•New Water progressive enforcement fees Backflow testing•Miscellaneous Water fee adjustments with updated salary rates and labor time

Police DepartmentStanley McFadden-Chief of Police

Department DescriptionCitywide general law enforcement servicesChief’s Office, Operations, Logistics, & Administration Bureaus Key Considerations•2024-2026 Strategic Plan •Supports City goals of public safety, economic growth, and thriving/healthy neighborhoods

Position Summary[Section O]

Financial Summary[Section D] Dollars in thousands

General FundDollars in thousands [Section D]

FY 2024-25 Budget/Plans•Additional funding for:•Five new full-time positions:•Police Telecommunications Supervisor•Animal Services Officers•Administrative Aide II, ASL Outreach•Mail Courier•Animal Shelter veterinarian contract services, janitorial cleaning services, onsite security, and medical supplies for animal care•Neighborhood Services case management software•Recruiting Team advertising and promotional items•Salary adjustments and retention incentives for Police Telecommunicators, Code Enforcement Officers, and Animal Services Assistants FY 2024-25 Budget/PlansAsset Seizure •Expenditures focus on SWAT equipment & suppliesState COPS •2 Community Service Officers•One-time equipment/supplies/services/software purchases for special teams •Ongoing supplies for community crime prevention and National Night Out

FY 2024-25 Budget/PlansPolice Grants •Community Corrections Partnership Task Force•Office of Traffic Safety DUI/distracted driving•Byrne Memorial Justice Assistance Grant•California for All Animals Grant

Fee Changes •Increase state gun permit fee•Increase/Decrease Investigative permit fees based on 2021 fee study•Addition of Tobacco Retail License violations per ordinance 2023-06-20-1502•Addition of Animal Abandonment Fines and Penalties per ordinance 2023-07-11-1502

Fire DepartmentRichard Edwards-Fire Chief

Department Description•Fire protection & emergency services•Emergency medical services•Fire dispatch •Fire prevention•Thirteen fire stations•Thirteen engines & four ladder trucks in service•Daily staffing levels:•3 personnel on fire engines •4 personnel on ladder trucks •2 Battalion Chiefs•1 Chief’s Operator Key Considerations•Fire suppression & emergency services •Emergency communications•Dispatch contracts•Alternative Funding Sources

Key Considerations•Personnel recruitment & retention •Technology enhancements •Citywide Emergency Operations

Position Summary[Section O]FY 2023-24 FY 2024-25Adopted Proposed VarianceGeneral Fund 192 198 6 Development Services 18 18 - Measure W 27 27 - SAFER Grant 9 16 7 Total 246 259 13 Financial SummaryDollars in thousands [Section E]

General Fund
Dollars in thousands [Section E]
FY 2023-24 FY 2024-25
Projected Proposed Variance
Employee Services 43,373$ 48,607$ 12.1%
Other Services 10,930 12,628 15.5%
Materials and Supplies 2,010 1,718 -14.5%
Other Expenses 2,691 2,773 3.0%
Capital Outlay 399 107 -73.3%
Total 59,404$ 65,832$ 10.8%
Emergency Dispatch Summary
Dollars in thousands [Section E]

FY 2024-25 Budget/Plans
• Thirteen fire stations
• Fire apparatus & firefighter gear and special
firefighting equipment
• Citywide emergency & special operations
• Firefighter recruitment and training
• Technology enhancements
• Emergency Communications

Fee Changes

Community DevelopmentStephanie Ocasio-Director of Community Development

Department Description•Plan for City’s growth and needs•Review & process development applications•Building, emergency, and life safety inspections•Development engineering services•Floodplain management coordination•Assist in economic development •Administer Public Facilities Fees Program•Support Boards and Commissions•Develop policy and initiatives Key ConsiderationsStaff Augmentation to Support Service Delivery•Building plan check•Building inspection•Planning & Engineering application review•Front counter support•Accela permitting system supportDevelopment Code updatePublic Facility Fee (PFF) nexus studyOngoing customer-focused technology & process improvements

Position Summary[Page O-12]FY 2023-24 FY 2024-25Adopted Proposed VarianceTotal Positions 50 51 1 Financial SummaryDollars in thousands [Section H]

FY 2024-25 Budget/Plans•Development activity is subject to economic fluctuations; CDD has built its fund balance to maintain services during economic downturns •Projected 2% revenue decrease from current FY23-24 budget •Existing multi-year process improvements, staff augmentation, and expanded data capabilities are planned to continue; no new major efforts are being requested

Fee Changes No fee changes are requested

Information TechnologyJamil Niazi-Director of Information of Technology

Department Description•Customer Service / Support Desk•Enterprise Applications•Enterprise Project Management Office•Infrastructure & Cybersecurity•IT Finance & Budget Office•Enterprise Resource Planning (ERP) Key Considerations•Continue Public Safety Radio Infrastructure Upgrade•Expand Network Infrastructure / New City Hall•Continue ERP Project Implementation •Cybersecurity Hardening•Geographic Information System (GIS)•IT Student Program

Position Summary[Section O]FY 2023-24 FY 2024-25Adopted Proposed VarianceTechnology 51 52 1 Communications 1 1 - Total 52 53 1

Financial SummaryDollars in thousands [Section N]Technology Communications TotalBeginning Available Balance 26,994$ 6,334$ 33,329$ Revenues 16,136 3,052 19,189 Expenditures 18,908 3,581 22,490 Transfer Out (4,100) - (4,100) Net Annual Activity (6,872) (529) (7,401) Ending Available Balance 20,122$ 5,805$ 25,928$ FY 2024-25 Budget/PlansTechnology•ERP development & implementation•Bi-weekly payroll & phase IV planning•Network & infrastructure improvements•Cybersecurity hardening•New IT Service Desk Ticketing System•Technical partnership and support for strategic technology projects for client departments•Equipment lifecycle replacement

FY 2024-25 Budget/PlansCommunications•Final public safety tower site planning and build out in progress•Replacement of portable/mobile radios and mobile data computers as part of the standard replacement lifecycle

Human ResourcesRosemary Rivas-Director of Human Resources

Department Description•Workforce Planning•Benefits Administration•Onboarding & Staff Development•Labor & Employee Relations•Risk Services Key Considerations•Bi-Weekly payroll implementation•Recruitment & Retention•Risk/Loss Mitigation•2025 Safety Negotiations Preparation•General liability, healthcare premiums, and retirement expenses continue to increase Position Summary[Page O-22]FY 2023-24 FY 2024-25Adopted Proposed VarianceGeneral Fund 19 19 - Benefit ISF 12 12 - Total 31 31 - Financial SummaryDollars in thousands [Sections K & N]General RiskFund Management Benefits TotalBeginning Available Balance58,297$ 110,286$ Revenues-$ 34,798 148,390 183,188$ Expenditures3,131 36,266 147,138 186,535 Net Annual Activity(3,131)$ (1,468) 1,252 (3,347)$ Ending Available Balance56,829$ 111,538$ General FundDollars in thousands [Section K]FY 2023-24 FY 2024-25 %Projected Proposed VarianceEmployee Services 1,393$ 1,742$ 25.1%Other Services 579 908 56.8%Materials and Supplies 25 39 56.0%Other Expenses 309 442 43.0%Total 2,306$ 3,131$ 35.8% FY 2024-25 Budget/Plans•Citywide Training & Professional Development•NeoGov Software System Expansion•Risk Mitigation Information System (RMIS) Implementation AdministrativeServicesJay Kapoor-Deputy City Manager /Interim Chief Financial Officer

Department Description•Accounting & Financial Reporting•Debt & Treasury•Investments•Budget•Payroll•Cashiering/Accounts Receivable•Contracts/Purchasing •Inventory Internal Services:External Services:•Utility billing•Business licenses•3 Sales Tax Measure Citizen Committees•Vendors assistance•Bid Opportunities Key ConsiderationsCitywide fiscal sustainability•Long-Range Financial Plan (L-RFP)•Enterprise Resource Planning (ERP) •Timely reporting•Maximize City collections & cash flow•Improve processes•Cultivate employees & other resources•Special Funds reporting & administration Position Summary[Section O]FY 2023-24 FY 2024-25Adopted Proposed VarianceGeneral Fund 85 89 4 Internal Service Funds 2 2 - Total 87 91 4 Financial Summary[Section K] Dollars in ThousandsGeneralFund Reprographics TotalBeginning Available Balance 1,444$ Revenues 151$ 360 511$ Expenditures 10,667 475 11,142 Transfer out - (1,300) (1,300) Net Annual Activity (10,516)$ (1,415) (11,931)$ Ending Available Balance 29$ FY 2023-24 FY 2024-25 %Projected Proposed VarianceEmployee Services 4,788$ 5,975$ 24.8%Other Services 3,824 3,974 3.9%Materials and Supplies 88 115 30.3%Other Expenses 593 602 1.5%Total 9,293$ 10,667$ 14.8% [Section K] Dollars in ThousandsGeneral Fund
•Timely financial analysis & recommendations •Maintain Long-Range Financial Plan (L-RFP)•ERP Phase 4 Utility Billing planning•Invest in employees & other resources•Provide grants, procurement, preparing for audits & financial management training to all city departments•Workforce Retention and Staffing•Resolution of audit findings•Review and revise policies and procedures to maintain and enhance effective controls•Collaborate with City Departments to create post- COVID grant funds program FY 2024-25 Budget/Plans

Fee ChangesCannabis Businesses – Adjusted for Current Salaries & Benefits•Business Application for Permit to Operate –Increase of $1,076 (to $4,646)•Initial Business Permit to Operate–Increase of $2,606 (to $22,776)•Permit to Operate – Renewal–Increase of $706 (to $20,876)•Appeal Fee – Denial of Permit–Increase of $61 (to $155) DebtJay Kapoor-Deputy City Manager /Interim Chief Financial Officer

City Debt Internal Enterprise RestrictedService Service Parking Successor AssessmentFund Funds & Utilities Agency Districts Total(Page L-6) (Page N-4) (Pages I-35 & L-9, L-10) (Page L-8) (Page L-6)Annual Debt ServiceBonds -$ -$ 23,308$ 7,431$ 8,146$ 38,885$ Loans - - 1,603 - - 1,603 Leases - 446 777 - - 1,223 Settlements 10,378 - - - - 10,378 Debt Administration2 - 10 8 1,013 1,033 10,381 446 25,699 7,439 9,159 53,123 Funding SourcesGeneral Fund 8,887 - - - - 8,887 Utilities - - 23,232 - - 23,232 Successor Agency - - - 7,439 - 7,439 Other 1,701 488 2,467 - 9,159 13,815 10,588 488 25,699 7,439 9,159 53,372 Net Annual Activity208$ 42$ -$ -$ -$ 249$ Financial Summary Dollars in Thousands
Major Debt Obligations•Assured Guaranty•Special Fund, Lease Ask, Supplemental, and Contingent•Successor Agency•2016 Revenue Bonds•Parking Authority•2020 Parking Bonds & SEB Internal Lease•Enterprise Funds•Water•Wastewater•Land-Based Districts•Wastewater FY 2024-25 Budget/Plans•Debt planned for Cannery Park, Series 2024 •Possible refunding of 2014 Wastewater bonds

Non-DepartmentalCourtney Christy -Deputy City Manager

Department Description•Provides funding for functions with a citywide impact not related to a single department•Examples include:–Legislative advocacy–Public, Educational & Governmental Support fee–Election expenses–Labor & litigation–General Fund Debt Service & Program Support Financial Summary[Section K] Dollars in ThousandsGeneral FundSpecial Revenue 260*TotalBeginning Available Balance 4,146$ 4,146$ Revenues -$ 1,715 1,715 Expenditures 3,458 3,050 6,508 Transfer Out (28,014) - (28,014) Net Annual Activity (31,471)$ (1,335) (32,807)$ Ending Available Balance 2,811$ *Fund balance not displayed as fund is shared by more than one department/program.

General Fund[Section K] Dollars in ThousandsFY 2023-24 FY 2024-25 %Projected Proposed VarianceEmployee Services 157$ (147)$ -193.6%Other Services 3,145 3,851 22.5%Materials and Supplies 15 18 20.0%Other Expenses (2,274) (265) -88.4%Capital Outlay - - 0.0%Transfers 27,231 28,014 2.9%Total 28,274$ 31,471$ 11.3% •Support the November 2024 Election •Support recruitment & retention efforts, along with staff augmentation services •Provides grant writing & administration support •Analyze and improve the manner and frequency with which the City communicates with the community•Continue to support activities related to the Economic Development Strategic Action Plan FY 2024-25 Budget/Plans
Charter OfficesCourtney Christy -Deputy City Manager

City Council•Council is the policy-setting body for the City•Initiates, studies & holds public meetings on issues affecting the citizens of Stockton•Hires & supervises the four Charter Officers: –City Attorney –City Auditor –City Clerk –City Manager Office of the City Attorney•Provides legal services & advice to the City Council, officials, boards, commissions, & City departments•Defends the City in lawsuits•Prepares legal opinions, ordinances & resolutions•Reviews & approves contracts, bonds, etc.•Prosecutes violations of the Stockton Municipal Code Office of the City Auditor
•Provides the City Council, management & employees with objective analyses, appraisals, & recommendations for improvements•Conducts performance audits:–Internal controls–Compliance with laws & policies–Accomplishment of goals & objectives–Reviews & consults audits performed by external financial auditors or other third parties Office of the City Clerk•Administers municipal elections•Ensures compliance with open meetings, campaign conflict of interest filing requirements•Administers City Records Management System•Management of Boards & Commissions•Produces & preserves records for City Council & other City meetings•Promotes Civic Engagement Office of the City Manager•General oversight of City operations under the policy direction of the City Council•Provides direction & administration of City departments•Office of Performance & Data Analytics•Community & Media Relations•Office of Violence Prevention•Environment & Sustainability Division •Legislative Advocacy

Key Considerations•Prioritize Council strategic goals focusing on:–workforce & youth programming–crime reduction, homelessness & housing–public health–wellbeing & resiliency–economic growth•Commitment to the Long-Range Financial Plan (L-RFP)•Data-driven Strategic Planning supported by the Open Data platform•Commitment to customer service to the Stockton community through accountable, innovative, efficient, and effective management of resources Position Summary[Section O]FY 2023-24 FY 2024-25Adopted Proposed VarianceCharter OfficesCity Council 10 10 - City Attorney 12 12 - City Clerk 8 8 - City Manager 18 19 1 OVP 14 15 1 Grants* 3 7 4 Total 65 71 6 Financial Summary[Section K] Dollars in ThousandsFY 2023-24 FY 2024-25Adopted Proposed VarianceCharter OfficesCity Council 1,038$ 1,127$ 8.6%City Attorney 1,439 1,606 11.6%City Clerk 1,166 1,352 16.0%City Auditor 513 531 3.5%City Manager 5,395 6,139 13.8%Total 9,551$ 10,757$ 12.6% •Continue expanding Youth Service, Environment & Sustainability, and Equity & Inclusion Programs•Maintain Long-Range Financial Plan (L-RFP)•Continue improving data dashboards, enhancing delivery of internal services and external/end user experience, supporting transparent governance•Expand efforts related to Diversity, Equity & Inclusion•Prepare for the November 2024 General Election, potential ballot measures, and Charter amendments•Facilitate relocation of Council Chambers to the New City Hall location FY 2024-25 Budget/Plans

Next Steps•Budget Public Hearing on June 18th •FY 2024-25 Annual Budget•2024-2029 Capital Improvement Plan•FY 2024-25 Fee Schedule•FY 2024-25 Successor Agency Budget•FY 2024-25 Parking Authority Budget QUESTIONS?