Optimistic outlook for City of Lodi's finances

Jun. 4—Although the City of Lodi's budget will decrease in the upcoming fiscal year, officials said the five-year forecast looks optimistic.

The Lodi City Council adopted the 2022-2023 financial plan and a projected $262.9 million budget by a 4-0 vote on Wednesday. It's a decrease of $52.8 million from last year's budget, related primarily to the city's American Rescue Plan Act allocation and one-time general fund surplus during the height of the COVID-19 pandemic, staff said.

"This is a good news budget," deputy city manager Andrew Keys said. "The city has done financially well. Over the years the city has taken some precautions in our budgeting related to the uncertainties of the pandemic. Those uncertainties never materialized and the city's revenues continue to grow. So we're in a good position at this point."

According to the draft budget document online at www.lodi.gov, staff is anticipating $69,115,000 in revenues during the upcoming fiscal year, but expenditures of $69,085,504.

While the city will just barely be breaking even, the next few fiscal years indicate revenues will grow steadily while expenditures will slightly increase.

For the 2023-2024 fiscal year, revenues are expected to be $71.2 million, and expenditures should be nearly $70.9 million.

By fiscal year 2026-2027, those numbers are anticipated to be nearly $77.4 million and more than $75.9 million, respectively.

Ending balances for the upcoming fiscal year project nearly $16 million in the city's general fund and nearly $37 million in the Lodi Electric Utility.

Parks, Recreation and Cultural Services will have $1.45 million in its fund by the end of the year, although Measure L will generate $9.1 million.

The measure is the half-cent sales tax that funds PRCS and the Lodi police and fire departments. Of this year's revenue, $3.98 million will be used for police, and $1.1 million for firefighters.

Another $1.27 million will be allocated to the parks department.

Lodi parks and recreation commissioner Mike Carouba read a statement from the commission thanking the council for one-time funding of $7.28 million approved earlier this year for park improvements and equipment replacement during the meeting.

The council approved the allocation in April, with the bulk to be spent on playground replacement or repairs, parking lot overlays, and Lodi Lake improvements, according to Tuesday's staff report.

The playground structures at Peterson, Legion and Katzakian parks, which were all installed between 1997 and 2001, will be renovated and upgraded. The Hale park tot lot, installed in 2006, will also be upgraded.

A new playground at English Oaks Commons will be installed, and all five projects will total $1.63 million.

The Salas Park parking lot will see overlay improvements to the tune of $1.3 million, and will include repaving and new overhead lights installed, while the southside renovation improvements at Lodi Lake will be funded with $2.4 million.

The renovation will restore damaged roads at the park, as well as trails and picnic areas. In addition, the paved parking lot will be reconstructed, and new underground utilities will be installed, along with new concrete paths, trash enclosures, playground equipment, turf and irrigation improvements.

While Carouba said the commission appreciated the funding, the city needs to start thinking whether it needs playgrounds and jungle gyms in every park moving forward.

He said the parks commission would like to start seeing a larger share of Measure L funding allocated to PRCS, as it costs about $775,000 annually to replace jungle gyms for each park as they wear out.

"We've done a bad job at putting pressure on you," Carouba said. "We're not the homeless, they have a constituency that's great, and they're tackling issues. And you've got people who love pets that are going to get a brand new building — that we need. But the people who use the recreation department are young families and they don't have time to come here and yell at you or argue there should be more money."

Carouba said the parks commission has historically kept silent when it comes to asking for funding form the council, and added that will not be the case in the future.

Councilman Doug Kuehne said Carouba's points were valid, and agreed the city must be mindful of future repairs and maintenance to the parks.

"We need to plan for our future, and we know what the future looks like as far as replacement of those things," Kuehne said. "You remind us well of our responsibility to be able to do that. I always appreciate you and thank you for the reality check."

Councilman Alan Nakanishi was absent from the meeting.