1. Stockton is the Place…

2. … the place to Live!

3. … the place to Work! WorkNet Kress Building Law Offices New Medical Offices March Lane Eagle Roofing Golden State Lumber LFB Engineering Buntain Construction UOP Dental Hygiene

4. … the place to Eat!

5. … the place to Play!

6. It takes vision, money, policy, and planning to run the Place. Stockton is the Place… the place to Live, the place to Work, the place to Eat, and the place to Play.

7. Financial Overview 2005-06 Budget

8. 2005-06 Revenue by All Funds Total Revenue: $364M

9. 2005-06 General Fund Revenue Total GF Revenue/Trans In: $178M

10. 2005-06 Expenditure by All Funds Total Expenditure: $366M

11. 2005-06 General Fund Operating Expenditures & Transfers Total GF Exp/Op Transfers: $178M

12. General Fund Balance Projection (in millions)

13. Major Budget Issues

14. Summary of State Takeaways Starting in FY Through FY 2004-052005-06 General Fund ERAF Shift1991-92$78,366,000$8,600,000 SB90 Mandated Costs2000-01$4,330,000$230,000 Property Tax Shift (Prop 1A)2004-05$2,700,000 Booking Fee Reimbursement2005-06 $982,000 $85,396,000$12,512,000 Non General Fund Public Library Foundation2002-03$304,000$33,400 RDA Tax Increment2002-03$400,000$230,000 Proposition 42 (Transportation)*2002-03$2,320,400$1,146,000 $3,024,400$1,409,400 *May Revise Total $88,420,400$13,921,400

15. Governor’s May Revise Proposal to fully fund Proposition 42 Transportation Funds –Includes local street and road maintenance projects –If approved in State’s final budget Reinstates $1,146,000 of funding to City Proposal to repay ½ of VLF Gap Loan borrowed in June 2003 –No details available on form or timing of payment –No direct affect to City Proposal to fully fund Proposition 42 Transportation Funds –Includes local street and road maintenance projects –If approved in State’s final budget Reinstates $1,146,000 of funding to City Proposal to repay ½ of VLF Gap Loan borrowed in June 2003 –No details available on form or timing of payment –No direct affect to City

16. The City Budget: based on expected City General Fund revenue including current State cuts The General Fund is in structural balance Departments met their targets The City Budget: based on expected City General Fund revenue including current State cuts The General Fund is in structural balance Departments met their targets City General Fund Budget

17. Employee Services –PERS Miscellaneous Rate Increase 24.3% –PERS Safety Rate Increase 3.6% –Workers’ Compensation Safety and clerical rates decreased Manual and non-manual rates increased –Health/Dental/Vision increased 7% Vacancies Deleted: 8 Safety Positions Added (Measure W): 43 Employee Services –PERS Miscellaneous Rate Increase 24.3% –PERS Safety Rate Increase 3.6% –Workers’ Compensation Safety and clerical rates decreased Manual and non-manual rates increased –Health/Dental/Vision increased 7% Vacancies Deleted: 8 Safety Positions Added (Measure W): 43 Major Factors Impacting All Budgets

18. Addition of Safe Neighborhood Measure W Fund –Projected Revenue: $9.2 Million –Increase Police and Fire Protections Services –Prevent/ Reduce Gang and Drug Related Crime –Expand Community Policing Addition of Safe Neighborhood Measure W Fund –Projected Revenue: $9.2 Million –Increase Police and Fire Protections Services –Prevent/ Reduce Gang and Drug Related Crime –Expand Community Policing Special Revenue Funds

19. Capital Improvement Program 2005-10 Budget

20. CIP 1 Year Plan by Project Type Dollars in Millions

21. CIP 1 Year Plan by Funding Source Dollars in Millions

22. Economic Development

23. New Retail Power Center “Park West Place” in Spanos West at I-5 and Eight Mile Road 1.2 million square feet of shopping & dining! 1500+ new jobs & over $3 million in sales tax revenue each year.

24. Proposed Retail Power Centers Weston Ranch (Winter 2006)  Approximately 60 acres of new retail at French Camp Rd. and I-5 Origone Ranch (Winter 2007)  Approximately 50 acres of new retail at Hammer Ln. and Hwy 99 Cannery Park (Summer 2007)  Approximately 50 acres of new retail at Eight Mile Rd. and Hwy 99 Weston Ranch (Winter 2006)  Approximately 60 acres of new retail at French Camp Rd. and I-5 Origone Ranch (Winter 2007)  Approximately 50 acres of new retail at Hammer Ln. and Hwy 99 Cannery Park (Summer 2007)  Approximately 50 acres of new retail at Eight Mile Rd. and Hwy 99

25. Housing and Redevelopment

26. 2005-06 Housing Highlights Neighborhood Improvements Airport Way Neighborhood CenterAirport Way Neighborhood Center Gleason Park Street ImprovementsGleason Park Street Improvements Taft NeighborhoodTaft Neighborhood Van Buskirk Community CenterVan Buskirk Community Center Affording Housing Projects Gleason Park Master PlanGleason Park Master Plan Dorado CourtsDorado Courts Windstone CottagesWindstone Cottages Downpayment Assistance Program Increase assistance to $60,000 per householdIncrease assistance to $60,000 per household

27. 2005-06 Redevelopment Highlights Commercial/Entertainment Stockton Events CenterStockton Events Center Pedestrian BridgePedestrian Bridge Downtown MarinaDowntown Marina Office/Retail Expansion Hotel Stockton retail improvementsHotel Stockton retail improvements South Shore Office DevelopmentSouth Shore Office DevelopmentHousing Waterfront WestWaterfront West Gleason ParkGleason Park

28. Capital Projects - Parking Stockton Events Center Parking StructureStockton Events Center Parking Structure –To be completed in November 2005 Ed Coy Parking StructureEd Coy Parking Structure –To be completed in December 2005

29. Police Department

30. Attacking the Crime Rate Since 1993 –Crime Rate Down 26% In 2004 –Crime Down 1% –Arrests up 11%

31. Police Officer Hiring For Measure W 8 officers hired spring 2005 6 more officers this summer 14 spaces reserved in academy for September

32. Security Cameras Expanded to 32 Cameras in the Downtown Area

33. Parks & Recreation

34. HighlightsHighlights New Programs Teen Center Expanded Youth Activities Arts Commission Workshops Golf Course Operations Capital Improvements –New restroom at Van Buskirk –Lighting at Swenson driving range Evaluate Golf Course Maintenance Options Hiring Golf Manager and Golf Pros

35. CIP PROJECTS Ronald McNair High School Park and Gym Airport Way Neighborhood Service Center Parks: –Oakmore, Montego, Spanos Park West and Gleason Ice rink at Weber Point Stribley Center Expansion Detention Basin Soccer Complex Panella Park Center Ronald McNair High School Park and Gym Airport Way Neighborhood Service Center Parks: –Oakmore, Montego, Spanos Park West and Gleason Ice rink at Weber Point Stribley Center Expansion Detention Basin Soccer Complex Panella Park Center

36. Development Services

37. Activity Growth Building Permits Issued by Fiscal Year

38. 1,200 inspections per day 3 Supervising Inspectors 11 Combination Inspectors 5 Contract Inspectors 20 Stops Per Inspector Building Inspections

39. Public Works Department

40. Major Capital Improvement Projects 8 Mile & I-5 Interchange Trinity-Aksland Bridge Hammer/State Route 99 Interchange & Widening March Lane Extension El Dorado / March Lane Intersection and Widening 8 Mile & I-5 Interchange Trinity-Aksland Bridge Hammer/State Route 99 Interchange & Widening March Lane Extension El Dorado / March Lane Intersection and Widening

41. Major Capital Improvement Projects (cont.) Airport Way Beautification Arch Rd/State Route 99 Interchange Arch-Sperry Extension Wastewater Collection System 9 Airport Way Beautification Arch Rd/State Route 99 Interchange Arch-Sperry Extension Wastewater Collection System 9

42. LibraryLibrary

43. 2005-2006 Highlights Sunday hours at Chavez Central Library Replace Bookmobile Award $100,000 in Homework Center Grants Construct Weston Ranch joint-use library –Cooperative agreement with Manteca Unified School District Sunday hours at Chavez Central Library Replace Bookmobile Award $100,000 in Homework Center Grants Construct Weston Ranch joint-use library –Cooperative agreement with Manteca Unified School District

44. Fire Department

45. New Fire Station Company 13 → Directed by Council in July 2004 to open by March of 2005 → Opens March 29, 2005 at 8:00 a.m. → First emergency response at 8:19 a.m. → Engine staffed with 4 firefighters per day (2 Paramedics) → Measure W funded personnel, engine and equipment → Response times in Northeast Stockton greatly improved Company 13 → Directed by Council in July 2004 to open by March of 2005 → Opens March 29, 2005 at 8:00 a.m. → First emergency response at 8:19 a.m. → Engine staffed with 4 firefighters per day (2 Paramedics) → Measure W funded personnel, engine and equipment → Response times in Northeast Stockton greatly improved

46. Municipal Utilities

47. Operations Summary OMI-Thames Contract OMI Contract in 2 nd Year Savings During FY04/05: $1.99 Million Est. Savings For FY05/06: $2.02 MillionWater New Urban Water Management Plan Arsenic ComplianceWastewater NPDES Permit Compliance Sanitary Sewer Overflow ProgramStormwater NPDES Permit Compliance Water quality monitoring Community Outreach & Education OMI-Thames Contract OMI Contract in 2 nd Year Savings During FY04/05: $1.99 Million Est. Savings For FY05/06: $2.02 MillionWater New Urban Water Management Plan Arsenic ComplianceWastewater NPDES Permit Compliance Sanitary Sewer Overflow ProgramStormwater NPDES Permit Compliance Water quality monitoring Community Outreach & Education

48. Water Projects Delta Water Supply Project “Water for Stockton’s Future” EIR Certification Summer 2005 Water Rights PermitFall 2005 Design/Build ContractSummer 2006 Begin ConstructionFall 2006 Construction CompleteFall 2009 Delta Water Supply Project “Water for Stockton’s Future” EIR Certification Summer 2005 Water Rights PermitFall 2005 Design/Build ContractSummer 2006 Begin ConstructionFall 2006 Construction CompleteFall 2009

49. Major Revenue Adjustments 2005-06

50. Fee Types General City Fees –Cost recovery for City services Public Facility Fees –Fund capital improvements for City’s infrastructure General City Fees –Cost recovery for City services Public Facility Fees –Fund capital improvements for City’s infrastructure

51. Overall Fee Schedule Changes In general, fees increase by a 3.7% CPI Certain fees adjusted for full cost recovery Some fees added to achieve full cost recovery Public Facilities Fees adjusted based upon analysis of facility needs Rounding Policy In general, fees increase by a 3.7% CPI Certain fees adjusted for full cost recovery Some fees added to achieve full cost recovery Public Facilities Fees adjusted based upon analysis of facility needs Rounding Policy

52. General City Fees - Examples Central Parking District –Fees Updated for New Parking –5% Increase for Existing Facilities Central Parking District Lot L: from $35 to $37/mo City-Wide –Reproduction and Copy Costs from $0.10 per page to $1.00 for the first page and $0.25 each additional page. Central Parking District –Fees Updated for New Parking –5% Increase for Existing Facilities Central Parking District Lot L: from $35 to $37/mo City-Wide –Reproduction and Copy Costs from $0.10 per page to $1.00 for the first page and $0.25 each additional page.

53. General City Fees - Examples Development Services Fees Planning –Added to Coincide with Requirements of Development Code Review of Secondary Dwelling Unit Plan: New fee, proposed amount is $745. –Magnolia Historic and Midtown Districts Same 50% Permit Fee Reduction as in Enterprise Zone Variance/Commission Waiver fee from $2,306 to $1,195.50. Development Services Fees Planning –Added to Coincide with Requirements of Development Code Review of Secondary Dwelling Unit Plan: New fee, proposed amount is $745. –Magnolia Historic and Midtown Districts Same 50% Permit Fee Reduction as in Enterprise Zone Variance/Commission Waiver fee from $2,306 to $1,195.50.

54. General City Fees - Examples Development Services Development Review –Encroachment Permits from $236 to $320 Development Services Building –Capital Preservation Fee (new) 0.001 of valuation –Magnolia Historic Districts (new) Same 50% Permit and Plan Check Fee Reductions as in Enterprise Zone Development Services Development Review –Encroachment Permits from $236 to $320 Development Services Building –Capital Preservation Fee (new) 0.001 of valuation –Magnolia Historic Districts (new) Same 50% Permit and Plan Check Fee Reductions as in Enterprise Zone

55. Parks and Recreation Golf –Annual Pass for Super Seniors (new) $340 at Van Buskirk General Fees –Sale of mulch and firewood (new) Mulch $15/cu. Yd.; Firewood $75 to $150 per cord Boat Launching –Rates increases and reorganization Weekend Boat Launching w/trailer from $7.50 to $12 Parks and Recreation Golf –Annual Pass for Super Seniors (new) $340 at Van Buskirk General Fees –Sale of mulch and firewood (new) Mulch $15/cu. Yd.; Firewood $75 to $150 per cord Boat Launching –Rates increases and reorganization Weekend Boat Launching w/trailer from $7.50 to $12 General City Fees - Examples

56. Police Department Parking Bail Schedule –Incorporated into Fee Schedule Rental Inspection Program –Self Certification Fee $100 to $160 (depending on number of units; paid once every four years) Police Department Parking Bail Schedule –Incorporated into Fee Schedule Rental Inspection Program –Self Certification Fee $100 to $160 (depending on number of units; paid once every four years)

57. General City Fees - Examples Municipal Utilities Stormwater Quality Inspection (new) –Actual cost Water Schedule –Increases Field Charge (from $20 to $25) Damaged Lock or Device (from $20 to $25) Meter Removal (from $40 to $60) Extension Fee (from $20 to $25) Deposit (from $60 to $75) Municipal Utilities Stormwater Quality Inspection (new) –Actual cost Water Schedule –Increases Field Charge (from $20 to $25) Damaged Lock or Device (from $20 to $25) Meter Removal (from $40 to $60) Extension Fee (from $20 to $25) Deposit (from $60 to $75)

58. Public Facilities Fees Incorporated in Fee Schedule Fee increases based on nexus study Incorporated in Fee Schedule Fee increases based on nexus study

59. Applicable Impact Fees  City Office Space  Fire Stations  Libraries  Police Stations  Community Recreation Centers  Street Improvements  Parkland  City Office Space  Fire Stations  Libraries  Police Stations  Community Recreation Centers  Street Improvements  Parkland

60. Public Facilities Fees – Amended Proposal All Fee Types Except Street Improvements Increase Based on Nexus Update in All Land Use Categories Street Improvement Fees Increase by 25% in Non-Residential Land Use Categories Only All Fee Types Except Street Improvements Increase Based on Nexus Update in All Land Use Categories Street Improvement Fees Increase by 25% in Non-Residential Land Use Categories Only

61. Summary of Proposed Fee Increases (Residential)

62. Public Facilities Fees – Amended Proposal (Non-Residential)

63. Regional Comparison

64. 2005-06 Budget Schedule Capital Improvement Program Distributed March 31, 2005 Proposed Budget and Fee Schedule Distributed April 29, 2005 Study Sessions May 10, 11, and 12, 2005 Public Hearing May 24, 2005 Final Adoption June 7, 2005

65. Review of Recent Accomplishments Bob Hope Theatre Stockton Hotel Teen Center Ball Park New Housing Anticipated for 2005-06 Events Center New Retail I-5 / Arch Road Completion New commercial use of Stockton Hotel Progress on Delta Water Supply Increased Sales Tax Revenues Remodel of Cesar Chavez Library Fire Station 13 opened More Parking Added Police District Sunday Hours at Chavez Library More Security Cameras Updated General Plan

66. Stockton is the Place…