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City Council - Special

February 26, 2025 ·4:00 PM Final

Carnegie Forum 305 W. Pine Street

Official record ↗

Agenda — 9 items

  1. A. Call to Order / Roll Call
  2. B. Regular Calendar
  3. 2 The Special City Council meeting of February 26, 2025, was called to order by Mayor Bregman at 4:05 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
  4. B.1 Study Session on the City Long-Range Financial Forecast (CM) 25-087
  5. C. Adjournment
  6. 5 ----------------------------------------------------------------------------------------------------------------------------------------------------- All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at least 24 hours prior to the meeting date. Language interpreter requests must be received at least 24 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333-6702. Solicitudes de interpretación de idiomas deben ser recibidas por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702. ----------------------------------------------------------------------------------------------------------------------------------------------------- Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link. Members of the public may view and listen to the open session of this meeting at www.facebook.com/CityofLodi/. -----------------------------------------------------------------------------------------------------------------------------------------------------
  7. 5 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 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, 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 huge burden to the General Fund expenses and CalPERS liability, the citizens paying the operating costs of the Access Center, and the potential purchase of the peaker plant raising electrical 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 if PERS stabilization is not needed, then freeze that account and the money that was being paid into it can be used in the General Fund. Mr. Amador, a member of the public, spoke regarding returning to the basics, such as the Police Department and the Fire Department to protect the public, water, wastewater, and the need to cut extra services that should not have been added. 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. Mr. 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 Lodi has not kept pace in the growth of jobs and median household income 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.
  8. 7 There being no further business to come before the City Council, the meeting was adjourned at 6:26 p.m.
  9. 8 ATTEST: Olivia Nashed City Clerk