Stockton Deliverable 1: Preliminary Research (Report)

Preliminary Research
Global Urban Development Program
Stockton, California

Table
of
Contents
Introduction (Stockton City Report)
Political & Legal Analysis
Goals
Goals of City Government
Reinvent South Stockton Goals
RSSC’s relationship with the community
Government Structure
San Joaquin County
Recent Measures & News
Measure A + Marshall Plan
Bankruptcy
2014 Elections
Economic Analysis
Citywide Revenues FY 2014-15
Citywide Adopted Budget
Budget Overview
Bankruptcy
Measures A and B
General Fund
Revenues
Expenditures
Other City Funds
Police
Public Works
Community Services
Community Development
Economic Development
Municipal Utilities Department
Bankruptcy Fund
Capital Improvement Programs
Internal Service Funds
Income
Median value of housing
Pension Fund
CPI Inflation rates per year
Environmental Analysis
Climate
Geography
Air Quality
Hazards
Earthquake and Tornado
Flood
Fire Hazard
Freeze
Storm Events Database

Precipitation and Drought
Local Biodiversity
Water Management (distribution and waste)
Waste Management
Green in Practice
Soil Quality
Energy Resources
Energy Production by Technology in California
Renewable Energy Technical Potential in California
Technological Analysis
Energy usage
Access to Internet
Innovation potential
Irrigation infrastructure
Digital citizen/Smart city
Smart parking
Social & Cultural Analysis
Household Income
Trends in Income - City point of view
Poverty
Unemployment
Race
Religion
Homeownership
Median Home Value
Foreclosures
Conclusion
Crime
History of crime in Stockton
Crime categorization
Gangs in Stockton
Law enforcement and crime prevention
District 6
Community Voices
Survey Highlights
Areas for Growth
Urban Analysis
History
Mapping
Transportation
Roads
Bicycles
Public Transit
Land Use
SWOT Analysis
Strengths

Weaknesses
Opportunities
Threats
Case Studies
Revitalizing Over the Rhine, Cincinnati
Background
Strategy/Activities
Impact
Revitalizing East Lake Atlanta
Background
Strategy/Activities
Impact
Revitalizing Rancho Cordova
Background
Strategy/Activities
Impact
Revitalizing Medellin, Colombia
Background
Strategy/Activity
Impact
Questions to the City

Introduction (Stockton City Report)
US Team Members
Hometown
Marveliz Santos
Santiago, Dominican Republic
Fotios Spartinos
Agrinio,Greece
Bushra Bataineh
Amman, Jordan
Christina Zhou
Port Washington, NY
Hang Li
Hubei, China
Mark Soendjojo
Temple City, CA
Geena Chen
Bedford, MA
Natalie Gonzalez
Bailey, CO
Jazlyn Patricio-Archer
Las Vegas, NV
Hailey Lang
Stockton, CA
Slovenian Team Members
Hometown
Rok Perme
Ljubljana, Slovenia
Martin Valinger Sluga
Ljubljana, Slovenia
Matija Kuzman
Ljubljana, Slovenia
Črt Jaklič
Mirna Peč, Slovenia
Matjaž Dolenc
Nova Gorica, Slovenia
Andrej Slemenjak
Velenje, Slovenia
Lovro Kajapi
Rijeka, Croatia
Samantha Konec
Tolmin, Slovenia
Teodor Hribovšek
Kamnik, Slovenia
Mila Zečević
Novi Sad, Serbia
Žiga Hudournik
Velenje, Slovenia

The city of Stockton is located in central California, with a population of about 300,000
people. When Stockton declared bankruptcy in 2012, it was the largest US city to do so at the
time. Stockton also suffered after the housing bubble collapsed with a significant number of
foreclosures and drop in home prices1. This project is intended to help the city find opportunities
in areas dealing with problems like drugs, crime, and poverty. Working with the city and other
stakeholders, we are focusing on the empty lots along Airport Way between 8th and 10th Streets.
Stockton started as a small Native American village called Pasasimas, which was
inhabited by the Yokuts people. The city became a prominent supply center after the discovery
of gold in northern California in 1848. A German immigrant named Captain Charles Weber
bought the land that would encompass the city from the Spanish in 1849, and named the city
after Commodore Robert F. Stockton. It was the first city in California to have an English name.
Due to the gold rush, the population of the city hailed from all different parts of the
world. In the late 1870s, there were a significant number of Asians living in the city, who came
as laborers for projects like the Transcontinental Railroad. Prior to agriculture becoming the
main driver of the Stockton economy, shipbuilding was the main industry up to World War II.
To this day, the port of Stockton is an essential part of the city, serving as a major shipping point
for many of Northern California’s agricultural and manufactured products. In the late 1990s and
early 2000s, Stockton went on a building binge, with additions to its downtown like the San
Joaquin RTD Downtown Transit Center, the Stockton Arena, and the refurbished Bob Hope
theater.
In terms of the population, the city is a majority-minority city, in that no particular race is
the majority. According to the 2010 Census, Latinos make up around 40% of the population,
Caucasians make up 37%, African-Americans make up 12%, and Asians make up around 22% of
the population2. Similarly, there are many ethnic festivals that take place in the city, reflecting
it’s cultural diversity. Stockton’s history and culture will be explored in-depth later in the report.
Our research goal for this deliverable is to use the information gained from the extensive
research done by everyone to help us pick our sites for development and shape our solutions. The
background knowledge gained from researching all the different aspects of the city, from the
economics to the politics of the city, will help us make informed decisions that are grounded in
the reality of Stockton, and not just theoretical ideas. Our drill-down on South Stockton in
particular will help us see why the issues that affect the area persist and how they can be solved
at the root, instead of just focusing on the symptoms.
1
http://money.cnn.com/2007/08/14/real_estate/California_cities_lead_foreclosure/index.htm
2
http://quickfacts.census.gov/qfd/states/06/0675000.html

Political & Legal Analysis
Goals
Goals of City Government
The City council met in April this year to discuss their strategic plan.3
● Strategic Targets
● Public Safety
● Fiscal Sustainability
● Organizational Development
● Economic Development
● Youth
● Infrastructure
● Public Relations/Image
Priority Goals
1. Improve police response times, customer service and follow-ups; hire additional officers
and increase diversity.
2. Implement the Marshall Plan and institutionalize it.
3. Retool public nuisance code enforcement issues.
4. Institutionalize modeling for financial forecasting.
5. Dedicate monetary resources for improved technology.
6. Develop and implement economic development plan to attract and retain businesses and
target areas of underserved populations.
7. Focus on downtown market rate housing project (ULI Study4).
8. Revise General Plan.
9. Develop an aggressive marketing and communication plan.
Reinvent South Stockton Goals
1. Crime
2. Education
3. Economic Development
4. Housing
5. Health care
These goals are used in the Promise Zone application that the coalition is putting together
in tandem with the city. Relevant metrics, such as number of workshops and number of youth
mentors will be collected to measure program success. The sub initiatives within each goal will
be funded by a variety of sources, including Measure A funds, grants, and private donations.
3
http://www.stocktongov.com/government/council/goals.html
4
http://www.stocktongov.com/government/council/goalsDwnRevit.html

RSSC’s relationship with the community
Insights from Jessica Praphath:
At her Community Medical Centers job, she sits on a bimonthly public health task force that
brings together representatives from nonprofits, foundations, and government organizations to
discuss plans for public health initiatives. Praphath believes in the mission of the taskforce
and sees a strong desire to enforce change, but she notes that a fundamental piece is
missing: a community representative. The same was true for the initial planning meetings
of Reinvent Stockton. When she looked around the table during those first meetings, all she
saw were dedicated people who went to good universities and, like her, returned to
Stockton to help improve it.
Praphath has since played a vital part in the Reinvent Stockton coalition’s expansion to south
Stockton community members. They helped write two assessment surveys, which mapped
Stockton’s “community strength index,” focusing on issues such as education, public safety,
housing, economic development, and health. And in July 2014, the coalition launched its first
community assessment survey, from which community members and volunteers collected more
than 800 surveys.
Praphath said when she first returned to Stockton with her UC Berkeley degree, some people
expected her to have all the answers. She made it clear that she was there to learn. “When I
meet community members, I let them do a lot of the talking,” she said. “This way, I am seen
not as someone who is trying to push knowledge or test out my education, but as someone with a
genuine interest in what they have to say.”
A year later, she has come to believe that community members are the ones with the
answers. They are the experts—the “think tanks” as she puts it.
Government Structure
City Council
● 4 year terms
● 1 mayor
● 6 councilmembers (must live in the district they represent)
● Responsibilities: establish city policies, ordinances, contracts, and agreements; approve
the City’s annual budget; appoint four positions: City Manager, City Attorney, City
Auditor, City Clerk
● Public meetings on Tuesday evenings at City Hall
● Special meetings and committee meetings open to the public
● Agenda of meetings are available online
County Government (Stockton holds the county seat of San Joaquin County)

San Joaquin County
San Joaquin County is a general law county, it was incorporated on February 18, 1850 and
covers an area of 1,426 sq miles. As of the 2010 census, the population was 685,306. The county
encompasses seven cities, of which Stockton is the county seat.
County Powers:
● The collection of taxes
● A public airport
● Voting services
● Work and training programs
● Food programs
● Shelter and housing services
● Public safety
● Legal services and jails
● Roads and road maintenance
● Regional and neighborhood parks
● Health services
● Business and economic development
● Agricultural education and monitoring
● Library services
● A zoo
● A historical museum to keep track of county history
Some of these powers are not applicable to Stockton. Within city boundaries, cities have
responsibility for such services as police and fire, animal control, parks, public works, water,
wastewater, solid waste, and library. Since Stockton is a charter city and thus enjoys wider
autonomy, it is not bound by California state law on how to conduct city elections, the form of
government, public contracts. Zoning ordinances are also not required to be consistent with the
county’s general plan unless the city has adopted a consistency requirement by charter or
ordinance.5
The county’s governing body is the Board of Supervisors, composed of 5 supervisors,
representing five districts. District 1 covers North Stockton, district 2 South Stockton, while
some western outskirts of Stockton fall under District 3, which also encompasses the cities of
Lathrop and Manteca.6
The supervisors are elected and serve a three-year term. The term of District 2 supervisor will
end on December 2014, whereas representatives of District 1 and 3 will end their terms on
December 2016.7
5
http://www.cacities.org/Resources-Documents/Resources-Section/Charter-
Cities/Chart_General_Law_v-_Charter_Cities-07-26-11
6
District map:http://www.sjgov.org/uploadedFiles/SJC/Departments/board/AlldistrictNew100dpi.pdf
7
http://www.sjgov.org/

Boards and Commissions
● Volunteer-based, application-based, encouraged for greater civic participation and for
citizens to learn how local government works.
● On Board Vacancies site, some boards with most vacancies are:
○ Building and Housing Board of Appeals (7) → currently has no members
● San Joaquin County Commission on Aging (10)
● San Joaquin County Mosquito and Vector Control District (7)
● Arts Commission (10) and Parks and Recreation (8) but only because term is ending soon
in January.
● NO VACANCIES:
○ Central Parking District Advisory Board
○ Civil Service Commission
○ Climate Action Plan Advisory Committee
○ Cultural Heritage Board
○ Equal Employment Commission
○ Handicapped Access Board of Appeals
○ Port Commission
○ San Joaquin Regional Transit District Board
○ Successor Agency Oversight Board
Public Private Partnerships
Public private partnerships are much less common in the United States compared to Europe or
Canada, where they are used to fund many different projects, from expressways to hospitals and
community centers. In the United States they are mostly restricted to transportation.
There are several major factors that determine whether public private partnerships will be used.
Several constraints prevent wider use in the United States, such as institutional inertia, financial
and tax policy issues and financial restrictions. The best candidate projects for financing by
public private partnerships tend to be those that have high demand, few substitutes and broad
support. This includes the general public, stakeholders and decision-makers in the public sector,
as well as in the private sector. Informed public officials are also crucial to the success of these
types of partnerships; in California in general, awareness tends to be low. Risks need to be
allocated appropriately between public and private and good oversight is critical for a project to
succeed. Finally, public private partnerships are not a panacea and should be applied only where
they make sense.
One successful example of a public private partnership in Stockton is the Port of Stockton
railway expansion. The port is owned partially by the city and San Joaquin County. The project
was worth 1.2 million dollars and included construction of 5825 ft of rail. It was built in
partnership with Union Pacific Railroad and finished in 2012. Given the partial ownership by the

city, a transfer of relevant skills and experience could be considered.
Recent Measures & News
Measure A + Marshall Plan
Measure B: gather public support for a spending ratio of 65% on crime reduction and 35% on
bankruptcy exit with the Measure A tax funds.
Timeline:
7/5/2013: Approved
4/1/2014: Sales tax in effect – raised to 9%
6/30/2015: Target of 405 officers
6/30/2017: Target of 487 officers
A private security company is to be hired for the downtown area. Their goals seem in line with
what people want but how will these companies be held accountable? Is their hiring
complementary or conflicting with the expansion of the city’s police force?
“Whether the security officers are paid or are volunteers is irrelevant, as each will serve the
community equally. Those paid will receive compensation through grants, Measure A funds, the
Downtown Stockton Alliance and private/public property owners.”8
Relevant Public Hearing: February 2014 (search Measure A)
-Note: some tension with earlier comments by people about excessive police brutality
“An additional 120 Sworn and 43 Civilian staff positions are hereby
authorized to be phased in over four fiscal years including 40 Police Officer positions in the
Police Department, 1 Senior Human Resources Analyst in Human Resources,1 Program
Manager II (Conf.), 1 Supervising Accountant, 1 Senior Accountant, and 1 Finance Assistant in
Administrative Services Department to begin recruitment in Fiscal Year 2013-14.” - Feb 25 2014
Resolution9
See footnotes for a presentation on the implementation of Measure A and the Marshall Plan10
Bankruptcy
On October 30th, Judge Klein approved Stockton’s bankruptcy plan1112. City employee pensions
8
http://www.recordnet.com/article/20141024/NEWS/141029731/0/SEARCH
9
http://stockton.granicus.com/GeneratedAgendaViewer.php?view_id=48&clip_id=4768
10
http://stockton.granicus.com/MetaViewer.php?view_id=48&clip_id=4768&meta_id=393646
11
http://www.latimes.com/business/la-fi-pensions-stockton-bankrupt-20141031-story.html
12
http://www.recordnet.com/article/20141030/NEWS/141039967

were to be left untouched but retiree health care would be cut. This was at the expense of lender
Franklin Templeton, who would be paid about $4 million of the $37 million the city owes the
firm. More recently, on November 14th, Franklin Pendleton appealed the ruling, claiming that the
city was capable of paying far more than that value, and that pensions should not be left
untouched.13 We will follow this as it continues to unfold.
2014 Elections
City Council
Districts in which races took place: 1,3,5
1: Holman (incumbent)
3: Susan Lofthus (new)
5: Christina Fugazi (new)
Measure C: City Charter Review[12]14
● In the past, city council members were elected in a district wide primary and then a city-wide
general election.
● “Twelve years ago, for instance, a group of south Stockton clergymen sought to change
the system, arguing that it funnels political attention and dollars away from their
community. But the effort died in the City Council. Former City Councilman Ralph Lee
White, who serves on the charter review commission, has been seeking to change the
system almost from the moment it was adopted.” Also limited evidence that this is true
● Opposition blank - this passed easily
Potential Next Steps
● School board elections and their significance
● Climate Action Plan research
● Permitting process, what does it take to implement projects?
● What codes and regulations are relevant or specifically apply to District 6 / Airport Way?
● More fully understand impact of bankruptcy ruling on other city programs
13
http://online.wsj.com/articles/franklin-templeton-appeals-over-stocktons-exit-from-bankruptcy-
1415993550
14http://sacramento.cbslocal.com/2014/11/05/election-brings-in-new-round-of-city-leaders-to-revive-stockton-after-bankruptcy/
http://www.recordnet.com/article/20141015/NEWS/141019738/0/SEARCH On Measure C
http://www.recordnet.com/article/20141105/NEWS/141109812/0/SEARCH Election results
http://fox40.com/2014/11/05/2014-election-results-san-joaquin-county/ County wide results

Economic Analysis
Citywide Revenues FY 2014-15
These are Stockton citywide revenues for the fiscal year 2014-15.
Taxes ($)
Program
revenues ($)
Enterprise
revenues ($)
Total ($)
Pct
(%)
Program
Appropriat.
Police
14,754,573
14,754,573
3
Fire
10,303,936
10,303,936
2
Public Works
31,042,016
31,042,016
5
Community
12,906,846
1,781,211
14,688,057
3
services
Community
Developm.
5,776,911
5,776,911
1
Economic
Developm.
12,796,186
4,079,501
16,875,687
3

Utilities
334,731
118,491,719
118,826,450
21
Administr.
14,139,352
14,139,352
2
Insurance and
95,290,779
95,290,779
17
Benefits-
Internal
Non-Dept
Funds
0
Non Dept
172,241,507
9,762,555
182,004,062
32
Dept Service
25,509,545
25,509,545
4
Funds
Capital
Project Funds
46,933,574
46,933,574
8
TOTAL
172,241,507
279,550,977
124,352,431
576,144,915
100
Citywide Adopted Budget
This is the Stockton citywide adopted budget for the fiscal year 2014-15.
Citywide Adopted Budget FY 2014-15
Operating
budget ($)
Debt Service
Budget ($)
Capital
Budget ($)
Total ($)
Pct
(%)

Program
Appropriations
Police
105,046,041
105,046,041
17
Fire
45,396,301
45,396,301
7
Public Works
40,603,403
301,756
2,199,864
43,105,023
7
Community
25,838,763
25,838,763
4
services
Community
Development
9,696,715
9,696,715
1
Economic
Development
19,509,316
2,159,098
21,668,414
3
Utilities
81,768,929
18,979,400
27,611,200
128,359,529
22
Administration
22,443,651
325,000
10,794,768
33,563,419
5
Insurance and
83,571,386
8,431,177
92,002,563
15
Benefits-Internal
Non-Department
Funds
0
Non department
40,025,508
60,000
40,085,508
6
Dept Service
28,120,489
28,120,489
4
Funds
Capital Project
Funds
51,682,136
51,682,136
8
TOTAL
471,899,986
92,347,968
632,564,874
100

Budget Overview
Bankruptcy
Since 2008, the City of Stockton has undergone an unprecedented fiscal emergency in the
General Fund resulting in major reductions in services to citizens and compensation of
employees, in addition to benefit reductions to employees and retirees. Cuts include $90 million
worth of annual General Fund expenses, and reducing the police, fire, and non-safety workforce
by 25%, 30%, and 43% respectively. However, the City still faced a $26 million shortfall and
was forced to file for Chapter 9 bankruptcy protections on June 28, 2012 in order to present a
balanced budget for FY 2012-13. The City continues to operate under that protection pending the
confirmation of a final Plan of Adjustment.
Priority has been given in the adoption of this budget to three particular areas: Economic
Development, Public Safety and Fiscal Sustainability. There are seven target areas that need to
be developed following the three above-mentioned priorities: Public Safety, Fiscal
Sustainability, Organizational Development, Economic Development, Youth, Infrastructure and
Public Relations/Image. Work continues on previous strategic initiatives related to these goals.
Specific objectives have been developed within the post- bankruptcy targeted areas, such as
“implement the Marshall Plan and institutionalize it”.
Measures A and B
There have been two measures adopted as a plan of action from the City Council of Stockton.
Measure A, a general sales tax measure approved on November 5, 2013 for an additional 3/4
cent effective April 1, 2014, has provided the City with an opportunity to address a high priority
target area, which is Public Safety. Projected revenues from Measure A for FY 2014-15 are
$27.9 million. In accordance with Measure B this increase to the General Fund in the upcoming
fiscal year will be used to implement major elements of the Marshall Plan on Crime (Marshall
Plan), to emerge from bankruptcy and to sustain other City services.
Measure B was approved after Measure A but prior to any related revenue collection and was
expedited by the City Council to improving public safety. In summary however, the funding is
proposed in FY 2014-15 to be allocated consistent with the Long-Range Financial Plan and is as
follows: $7.6 million for additional staffing and equipment for the Police Department, $793,000
for staffing and equipment for the establishment of a new Office of Violence Prevention;
$709,000 for other City services support, $8.0 million for a variety of mission critical projects,
and, $10.8 million for the General Fund balance to be kept uncommitted. The $8.0 million in
mission critical projects are in support of the City Council’s revised targets and goals as follows:
1. Implementation of Strategic Priorities $200,000
2. Public Safety - radios $1,000,000
3. Fiscal Sustainability - purchasing and lighting $1,364,000
4. Organizational Development – technology $5,236,000

5. Economic Development – ULI and marketing plan $200,000
It is notable that this budget continues to balance the General Fund by making $24.5 million in
reductions to creditors and retirees and by assuming that all pendency plan reductions either will
continue throughout the fiscal year or be made permanent with court confirmation of the city’s
Plan of Adjustment.
The roots of the City’s bankruptcy were sown in the late 1990s and early 2000s. They came from
a combination of unsustainable levels of employee compensation and benefits, retiree medical
benefits well above the market for such post-employment benefits, ill-considered debt issuances
keyed to an assumption of increasing revenues, and a variety of other agreements with sports
teams and others all of which turned out to be beyond the City’s means. The Great Recession,
which began in December 2007, crushed City revenues and began an inexorable process in
which it became progressively clearer that these obligations could not be settled on existing
terms. First, the City went through several years of struggling to maintain solvency by
exhausting reserves, slashing service levels, laying off staff and generally cutting anything that
could be cut. These avenues were exhausted in early 2012 by which point the City was
profoundly insolvent from a service and budget perspective and teetering on the verge of cash
insolvency. At this point the City entered the State mandated AB 506 process in an attempt to
mediate a resolution to the fiscal crisis. While this approach did result in a number of agreements
with City employees to reduce compensation and benefits, it did not resolve the debt and retiree
medical problems. When time for mediation under AB 506 was exhausted and the City could not
adopt a balanced budget for 2012-13, the City declared bankruptcy on June 28, 2012.
During the second half of 2012 and early 2013 the City was forced to fight a lengthy and
expensive battle with the Capital Market Creditors (CMC), a group of bond insurers and other
financial firms who collectively represented approximately $300 million in debt obligations
impacted by the City’s inability to pay and the bankruptcy. On April 1, 2013, the City won a

strong decision by the bankruptcy court affirming the City’s eligibility for bankruptcy protection.
The Court concluded that the City had negotiated in good faith in trying to reach agreements
consistent with its ability to pay obligations while maintaining operations, and that it was, in fact,
insolvent and would be unable to continue operations absent bankruptcy protection.
Once deemed eligible for bankruptcy, the City began to work in earnest with a Court appointed
mediator to negotiate voluntary resolutions to outstanding issues and to develop a bankruptcy
“plan of adjustment”, which can include involuntary reductions to creditors. By fall of 2013, the
City had reached tentative agreements with several large creditors and developed a plan of
adjustment for exiting bankruptcy, which included a general sales tax increase, mainly to rebuild
police services, but also to assist in the exit from bankruptcy without further service cuts. The
initial plan of adjustment was approved by the City Council in early October 2013 and voters
approved the sales tax increase in November 2013. The plan of adjustment has been challenged
by one remaining major creditor with whom a tentative agreement has not been reached
(Franklin Funds “Franklin”). Since early 2014, the City has fought the legal challenge from
Franklin while finalizing agreements with other creditors.
After having spent nearly $14 million as of April 2014 on legal fees and other outside consultant
costs, and literally thousands of hours of City staff time, the City is reaching the home stretch on
the bankruptcy process. As large as this cost has been, it is well to keep in mind that the savings
at stake in the Chapter 9 process is projected to be over $1.1 billion dollars through FY 2040-41,
in terms of future savings and past claims, of which approximately 72% or $820 million will
benefit the General Fund. This bankruptcy expense is a necessary investment in the City’s future
fiscal solvency. The City has approved several of the creditor agreements representing very
significant portions of the total obligations at issue in the City’s bankruptcy case. The City
submitted its plan of adjustment in November 2013 and at the time of this printing, has
completed 80% of the trial intended to resolve the final creditor dispute and consider
confirmation of the City’s Plan of Adjustment. Once the trial is complete and the court’s decision
is known, a separate budget amendment will be brought before the City Council for
consideration and approval that will implement the settlement agreement terms reached with all
of the city’s creditors.
General Fund
As the table below illustrates, General Fund total revenues are projected at $193.8 million and
expenditures are projected at $182.9 million. The net result of $10.9 million is being held as an
Uncommitted Fund Balance and consists almost entirely of uncommitted Measure A revenues of
$10.8 million which are the result of the ramp-up time required to meet the staffing component
of Measure A. The resulting General Fund balance is still substantially below the GFOA
recommended fund balance, which is 16.67% for the City. However, consistent with the Long-
Range Financial Plan, this prudent fund balance begins to expand the General Fund to achieve
this recommendation and the Council policy expectations over time. The change in expenditures,
as shown in the table below, between FY 2013-14 Current Budget and FY 2014-15 Proposed
Budget is an increase of $20.4 million, primarily from increased spending of $17.1 million for
the first full year of Marshall Plan and other city service uses of the Measure A revenues. The
General Fund changes are described below.

Revenues
General Fund revenues proposed in FY 2014-15 budget are $193.8 million, which is an increase
from the prior year by $26.2 million or 16% due to the following estimations:
· Measure A Sales Tax revenue is projected to come in at $27.9 million, which is a significant
increase over the current year projected collections of $6.8 million. This reflects the fact that the
Measure A proceeds will only have been collected for four months in the current year, and the
2014-15 projections are based on a full 12 months of tax proceeds.
· Property Tax revenues continue to show slow recovery in alignment with the general
economic improvements, specifically as median home prices trend upward slightly.
Median home prices in Stockton have returned to 2008 levels but are still 57% below the
peak in 2006. Proposition 13 will hold down property tax growth as the annual assessed
value adjustments are limited to the lesser of the change in California consumer price
index or 2%, unless sold. In 2014-15 a 0.454% increase will be applied to all real
property not reduced by Proposition 8 appeals. Proposition 8 allows a temporary
reduction in assessed value when current market value of real property is less than
assessed value resulting in lower property taxes. A large number of the properties in the
City have been subject to Proposition 8 appeals in the past five years. The value of these
properties is reviewed annually and may be increased by more than 2% based on market
value. The City collects information relative to property taxes from the County
Assessor’s Office, an external consultant and economic trends to determine the best
approach for budgeting Property Taxes. From this evaluation, FY 2014-15 Proposed
Budget reflects a Property Tax revenue increase of 3.8% or approximately $1 million.
The projected increase will represent two consecutive years of property tax increases,
which were the first increases experienced since the onset of the “Great Recession” in
2008.
· Improvement in sales tax revenues, excluding the new Measure A revenues, of almost

$1.3 million or 3.1% from the 2013-14 budget level is reflected in this budget. State-wide
trends indicate high growth for autos/transportation, building/construction, and
restaurants/hotels. The largest area of growth is anticipated in the state and county pools,
the mechanism used to allocate tax that cannot be identified to a specific place of sale,
due to receipts of use tax from Amazon and other out-of-state vendors that began
collecting the tax in September 2012. Future receipts are uncertain as new in-state
distribution facilities may qualify for point of sale status and reduce overall pool
allocations.
· Utility Users Taxes (UUT) are expected to increase only slightly by $97,000 reflecting
increases to the Water, Electric & Gas and Cable accounts, offset by a significant
reduction to the Telecommunications account. Most of the growth in the three growth
categories cited is due to rate increases, not additional consumption. Our outside
consultant has projected Telecommunications revenue to be down 5% due to industry
trends. Pre-paid phone plans become ever more popular (they are not taxed), and as
bundled data and phone plans result in more phone costs crossing as untaxed data costs.
These trends, unless met by legislation that allows broadening the UUT taxing authority,
are expected to continue to result in downward trend in Telecommunications UUT
proceeds.
· Franchise taxes for PG&E and Cable/Video are basically flat, with some growth projected
in the Waste Hauler franchise tax account. Overall, the Franchise Tax category is
projected to be up by $341,000 or 3%.
· Business License Tax proceeds are projected to be up by $241,000 or 2.7% from prior
year levels, again reflecting the slow economic recovery and some positive results from
the City’s revenue audit contract.
· Hotel/Motel taxes are projected to increase by approximately 9% in 2014-15, reflecting
increased activity in the local hospitality industry and positive results from the firm hired
by the City to audit this tax revenue.
· Program Revenues are projected to be up significantly, $1.4 million or 13% in 2014-15. A
significant portion of this increase is the inclusion of a projection for revenue from the
sale of surplus real property valued at $550,000. Code Enforcement revenues include an
additional $475,000 expected as a result of additional staff funded through Measure A for
the Neighborhood Blitz program. The remainder represents projected increases in the
Charges for Services, Fines and Forfeitures and Revenues from other Agencies accounts.
Expenditures
General Fund expenditures proposed in FY 2014-15 budget are $182.9 million which is an
increase from the prior year of $20.4 million due to the following budget changes.
1. Additional budgeted expenditure items totaling $17.1 million are funded with additional Sales

Tax proceeds resulting from the passage of Measure A. Included are increases for the first full
year of the Marshall Plan, specifically in the Police and the new Office of Violence Prevention of
approximately $8.4 million, other City services of $709,000 for support services, and $8.0
million in mission critical projects. Funding for the mission critical projects in this first full year
has been made available due to a three year planned phase in to hire 120 officers. The
recruitment, training and logistics necessary for hiring public safety officers require this phased
plan. The mission critical projects are listed in the table below:
2. Employee Services General Fund costs have increased by $9.4 million or 8.8%. Several
factors attribute to the changes.
· The portion of General Fund salaries and benefits increases that were funded by
Measure A sources totaled $6.1 million and were due to the addition of 74 full-time
positions.
· New positions have been added to support City Council, City Clerk and Police
Department Animal Services functions that were approved by the City Manager
increasing salary and benefits by $207,000, net of reduced hourly costs. This
includes an administrative aide position being added to the City Council budget to
support the office of the Mayor. This position is authorized by the City Charter
but has not been funded for several years.
· Salary costs in the Police Department have increased due to elimination of
furlough provisions in the bargaining unit agreement covering sworn police
employees that expires on June 30, 2014. The increase to the General Fund is
approximately $1 million.
· A total of $300,000 in salary and benefit costs for providing street tree services
was moved from the Gas Tax fund to the General Fund due to a reduction in
available gas tax revenues.
· Included in all General Fund department budgets is an appropriation for vacation
sell back in accordance with existing bargaining unit agreement terms ending the

suspension of vacation cash outs if and when the City emerges from its fiscal
emergency status. As estimated in the Long- Range Financial Plan, $600,000 has
been budgeted in the General Fund.
· Pension costs have increased by $3.7 million or 21% due to a change in CalPERS
rate from 17.939% to 20.090% (Misc.) and from 34.605% to 41.385% (Safety).
As identified by the City’s actuary and budgeted in the Long-Range Financial
Plan, continued increases are expected in the retirement costs in the next several
years, as CalPERS implements some significant new measures and actuarial
assumptions intended to improve their fiscal position. These short-term increases
will be followed by a leveling off of rates followed by a decline as recent
reforms are realized and the unfunded actuarial CalPERS liability decreases.
· Worker’s Compensation costs will increase by $1.0 million due to fluctuations of
6% in claims and administration costs. These increases are for current costs and
do not begin to reflect the large deficit balance in the fund of more than $37
million.
· Budgeted vacancy savings was increased from 1% of total salary and benefits to
3% reducing the employee services category by $2.4 million compared to the FY
2013-14 budget.
3. Other services are primarily made up of costs for services provided to the City and internal
service fund charges to departments. This includes our gas and electricity expenses, advertising,
audit services, and construction costs to name a few types of items included in this category. The
increase of $2.2 million is due to a combination of line items including administration fees
charged by the Board of Equalization for both sales tax and Measure A revenue increased
$300,000, contributions to the Information Technology internal service fund increased $820,000
to augment existing funding for the Citywide Strategic Technology Plan and equipment
replacements, mission critical purchasing improvements contract for $164,000, implementation
of initiatives within Economic Development Department to begin implementation of
recommendations from the Urban Land Institute (ULI) study for downtown revitalization
budgeted at $100,000 and $50,000 to conduct a feasibility studies for business improvement
districts, water utility usage and rates for City parks increased $100,000, utility charges increased
$50,000 for new Public Safety vehicle cellular technology, Human Resources recruitment costs
increased by $60,000, and additional auditor services budget increase of $64,000 for new
accounting requirements and special reports. Due to funding limitations in the Gas Tax fund,
$500,000 worth of landscape maintenance contract costs had to be moved to the General Fund.
4. Capital Outlay has been increased by $760,000 to budget for the purchase of patrol and field
services vehicles and radios for employees hired with Measure A funds.
5. Transfers out to other City funds have been increased by $8.2 million based on the mission
critical spending plan, updated information from third party service providers, and operational
needs of services that are partially funded by General Fund resources. Budgets have been revised
as appropriate and are listed below.

· A $5.2 million transfer to the Information Technology ISF and a $1 million transfer to the Radio
ISF are included in the mission critical funding discussed above.
· Library general fund subsidy has increased by $250,000 to fund ongoing operations
including replacement of equipment used by library patrons and improvements to
broadband connections at various library branches.
· Recreation general fund subsidy has increased by $105,000 due to offering additional
community events, expanding the Pixie Woods season, swimming pool contract changes
and repairs needed at various facilities.
· Entertainment Venues General Fund subsidy has increased by $447,000 primarily due to
much needed facility capital improvements budgeted at $230,000 and lower revenue
projections particularly at the Arena and Bob Hope Theater due to changes in the national
entertainment industry.
· The Successor Agency anticipates $250,000 in tax increment revenues will be available to
fund administrative costs plus reduced legal expenses which combined will result in a
$300,000 reduction in subsidy from the General Fund.
The General Fund contribution for capital projects proposed for FY 2014-15 is $2,775,000; an
increase of $1,485,000 over FY 2013-14. The increase is primarily to fund a citywide project to
upgrade street lights to LED reducing future electricity costs by as much as $367,000 per year.
The detailed allocation of these funds can be found in the 2014-15 Proposed Capital
Improvement Program document.
Other City Funds
In addition to the City’s General Fund, Other City Funds track internal service funds, special
purpose funds, restricted funds, and enterprise activities. As described above, included in the
Proposed Budget are balanced pro forma schedules for all Other City Funds. In the body of the
document, grouped by the departments that retain responsibilities for each fund, you will find a
pro forma schedule for each special fund that includes actual expenditures and revenues for the
two prior fiscal years, a year-end projection for the current fiscal year, and a proposed FY 2014-
15 budget. Also included is a brief bulleted summary of the history, current year events, and
comments about significant elements of the FY 2014-15 budget being proposed. Highlights for
each department fund group are described below:
Police
The Police Department is responsible for five funds: Police Measure W, Asset Seizure, COPS
State Block Grant, Special Revenue Grants, and Police Special Revenue. Notable elements of the
FY 2014-15 proposed budgets for these funds include the following:
The Police Measure W fund will pay for the salaries, benefits, equipment and supplies for 25
Police Officer positions in FY 2014-15. This is an increase of 2 officers from the current year in
order to utilize the amount of revenue available. Measure W sales tax proceeds are projected to

grow by approximately 3% from current projected revenue.
· In the Asset Seizure Fund revenues continue to decline due to a decrease in seized property and
delay between seizure and court approved disposition.
· Due to uncertainty in State funding, in the Police State COPS Fund, five of the seven Community
Services Officers previously paid from this fund will be moved to the General Fund. Two
Community Services Officers will continue to be paid for from this fund.
· In the Special Revenue Grant Fund, the Federal COPs Hiring Grant for 17 new entry-level Police
Officers which began in the current year continues. Police Supplemental Service Contracts for
event specific overtime assistance continue to be accounted for in the fund.
· In the Police Special Revenue Fund, the Geraldine Schmidt Trust funds will continue to be held
until a long-term plan is developed for the Animal Shelter Replacement project. In addition, a
significant increase to the Pet Overpopulation Fund is budgeted in anticipation of new shelter
improvements and additional Spay and Neuter Clinics under the terms of a Memorandum of
Understanding with the San Francisco SPCA. Fire The Fire Department is partially responsible
for three funds: Fire Development Services, Fire Measure W, and Fire Special Revenue. Notable
elements of the FY 2014-15 proposed budgets for these funds include the following:
· In the Fire Prevention section of the Development Services Fund, revenue projections for
2014-15 are based on the current fee structure. That fee structure is still undergoing
evaluation to determine whether they correctly align with program costs. Similarly, a
Services and Efficiency Study to assess overall workflow, staffing and processes at the
Permit Center, which include Fire Prevention program staff, is also under review and
may result in changes in the coming year.
· The Fire Measure W Fund continues to pay the salaries, benefits, equipment and supplies
for 25 firefighter positions, which should allow the implementation in 2014-15 of the
Alternative Response Program approved in the current year budget. Measure W sales tax
proceeds are projected to grow by approximately 3% from current projected revenue.
· The sum of the total revenue and approximately one-third of the estimated beginning
balance in the Fire Special Revenue Fund is being proposed for appropriation to ensure a
gradual draw down of funds which accumulated in this fund. Funds will be utilized for
materials, supplies and training expenses.
Public
Works
The Public Works Department is responsible for seven funds: Street Maintenance Gas Tax, Boat
Launching Facilities, Solid Waste and Recycling, Lighting Maintenance District, Assessment
District Maintenance, and Measure K Maintenance. Notable elements of the FY 2014-15
Proposed Budgets for these funds include the following:
· In the Street Maintenance Gas Tax fund, funding is included to continue re- striping arterial and
collector streets, to continue to address sign up-grading and the pavement repair program. The
costs for right of way landscape maintenance and tree maintenance activities that have been

funded for several years in the Gas Tax Fund are being moved back to the General Fund where
they were traditionally funded. As part of the $8.0 million in mission critical funding being
provided from Measure A Sales Tax proceeds, a total of $1.2 million is being transferred from
the General Fund to the Gas Tax fund to invest in the conversion of existing arterial roadway
street lights to LED luminaires. This will help meet Greenhouse gas strategy goals and when
completed will result in significant long-term energy cost savings to the City.
· In the Solid Waste and Recycling Fund projected revenues reflect a 0.78% annual CPI adjustment
for residential and commercial service. Overall revenues remain flat in line with the solid waste
industry.
· Lighting Maintenance District Assessments for FY 2014-15 will be at the same rate as the current
fiscal year.
· In the Assessment District Maintenance Fund assessments for the FY 2014-15 will be the same
rate as the current fiscal year. The accounts for the storm drain maintenance assessment districts
will be assigned to a new fund, under the oversight of Municipal Utilities Department to improve
internal controls.
· In the Measure K Maintenance Fund, revenues are projected to increase by approximately 5%. Of
the funding projected, $2.2 million is budgeted for several capital projects including the required
matches for a number of City projects, Neighborhood Traffic Calming loan payback for the
Sperry Road Extension and the expansion of the Traffic Signal Control System. The
expenditures are expected to decrease by 16% compared to the current year due to the
completion of debt service payments to SJCOG for a prior year project.
· In the Boat Launching Facilities Fund fees will not be changed from the current rates. The
materials budget has been increased slightly for need repairs.
Community
Services
The Community Services Department is responsible for four fund groups: Library, Recreation,
Golf and the Entertainment Venues. Responsibility for the Entertainment Venues Fund is being
moved from the City Manager’s Office to the Community Services Department as part of this
Proposed Budget. Notable elements of the FY 2014-15 proposed budgets for these funds include
the following:
· The proposed FY 2014-15 budget for the Library Fund requires a General Fund
subsidy of $4.25 million. This is an increase of approximately $250,000 from the
current year level. This pays for the City portion of the County-wide Library
system operated by Stockton. The additional subsidy level represents costs for
replacement of computer software, additional bandwidth and the replacement of
the machines that accept bills and coins for personal printing and copying at
libraries.
· The proposed 2014-15 budget for the Recreation Fund requires a subsidy of $2.95
million, up only slightly from the current year. The Proposed Budget includes a
simplified fee schedule to make facility and field rental pricing more attractive

and consistent with the local market. The Department intends to expand the Pixie
Wood season by 9 additional weekends, and for special holiday events. They also
plan to produce 5 new events at Weber Point, free to the public.
· The Entertainment Venue Fund has received a subsidy from the General Fund for
a number of years. The subsidy had gone down since SMG took over
management of the facilities. Entertainment Venues General Fund subsidy has
increased by $447,000 primarily due to much needed facility capital
improvements budgeted at $230,000 and lower revenue projections particularly at
the Arena and Bob Hope Theater due to changes in the national entertainment
industry. The General Fund subsidy for FY 2014-15 Entertainment Venues
budget is $3.1 million.
Community
Development
The Community Development Department is primarily responsible for the Community
Development Services Fund. Notable elements of the FY 2014-15 proposed budget for the fund
includes the following:
Community Development has received a General Fund subsidy of $1.0 million each year since
FY 2012-13 which continues in the Proposed FY 2014-15 Annual Budget. . In the Management
Partners report brought to Council in June 2012, it was determined that there were a number of
services and initiatives in this department that are more appropriately charged to the General
Fund rather than recovered through development fees. The $1.0 million was identified to cover
the general government costs each year until a study can be completed to more accurately
determine an appropriate subsidy or reorganization of operations in this area. Only minimal
spending of the subsidy has occurred over the past two fiscal years, leaving an anticipated
carryover of $1.4 million into FY 2014-15. Plans are underway to carryover the balance and use
this resource for several one-time costs such as phases II and III of the Fee Study, a major update
of the General Plan, website improvements, and the Flood Plain Management initiative. In
addition, a Senior Plan Check position has been added to address mandated changes to the
General Plan regarding flood plain management, carbon footprint reduction, climate action plan
and green building ordinance. This position is expected to generate revenue from plan check fees
to offset the majority of the position costs.
Economic
Development
The Economic Development Department is responsible for the various Housing funds, as well as
the City Administration Building, Central Parking District, and Downtown Marina Complex
funds. The department formerly oversaw the Redevelopment Agency funds prior to the
dissolution of the Agency. The General Fund will continue to be required to fund administrative
and overhead costs for the Successor Agency, due to the fall-off in tax increment proceeds. The
Successor Agency anticipates $250,000 in tax increment revenues will be available to fund
administrative costs plus reduced legal expenses which combined will result in a $300,000
reduction in subsidy from the General Fund.
Notable elements of the FY 2014-15 Proposed Budget for this department’s funds include the

following:
· The City will receive a small 1.2% increase in the CDBG annual entitlement grant that will allow
continued funding of programs at current levels. The Neighborhood Stabilization programs 1 and
3 are projected to increase in 2014- 15 by $2.0 million. There will be no additional grants
expected for this program after this year. The City will also receive an increase of 5.5% in the
HOME entitlement grant in 2014-15.
· The Central Parking District Fund proposed budget reflects revenue and costs for the City garages
remaining after Trustee Wells Fargo was awarded possession of the Market Street, Coy and
Arena garages two years ago after the City defaulted on its debt payments. No increases to
monthly or hourly fees are planned for next fiscal year. The FY 2014-15 budget does include
funds for the replacement of asphalt in several lots.
· The proposed FY 2014-15 budget for the Downtown Marina Complex will again require a
subsidy from the General Fund in the amount of $215,000, up from $160,000 for the current
year. The amount of revenues has remained flat while expenses have increased.
Municipal
Utilities
Department
The Municipal Utilities Department is responsible for three fund groups: Water Enterprise,
Wastewater Enterprise, and Stormwater Enterprise. All of the Municipal Utilities Funds are
supported by user fees and not from General Fund sources. Notable elements of the FY 2014-15
Proposed Budgets for these funds include the following:
· The Water fund is expected to experience relatively flat revenue growth in rates and connection
fees in FY 2014-15. To ensure adequate bond coverage, the rate stabilization fund will be
utilized and some select capital improvements such as the Automated Meter Reading project will
be delayed by two years. The majority of the cost increase of $8.2 million in FY 2014-15
Proposed Budget compared to last year’s Adopted Budget is due to the following: (a) The Delta
Water Supply Project will see an increase in borrowing cost pursuant to the remarketing of the
2010 variable rate debt that was completed in late 2013. While the cost of borrowed money went
up, the risk of a call on the bonds has been eliminated and (b) Funding critical capital project
costs to construct the Ammonia Facilities Project; construct the Feather River Drive at 14 Mile
Slough Project to improve water reliability; complete the extension of a 24" water line from
Newcastle Road to Airport Road; and convert gas engines to electric motors at two water well
sites to improve air quality.
· In the Wastewater Fund, the fifth and final rate increase, 9%, of the approved 5- year tiered rate
increase, will go into effect in 2014-15 year. The tiered rate structure was designed to ensure
adequate coverage required by the bond covenants and to fund the Capital Improvement and
Energy Management Plan. The majority of the cost increase of $13.5 million in FY 2014-15
Proposed Budget compared to last year’s Adopted Budget is due primarily to funding critical
Capital Project costs: (a) to finalize design of the Headworks Project as the first of the CIEMP
Phase 2 projects and bid the project for construction; (b) prepare and solicit bids for the third
package of CIEMP Phase 2 projects, the design and rehabilitation of the Secondary Bio-towers
and the Nitrifying Bio- towers; (3) begin design of Tertiary Plant project; (4) construction of the

Arch Road Sanitary Sewer Trunk Mainline, which is a 30" sewer line to serve the industrial area
in southeast Stockton; and (5) construction of Tuxedo Avenue Sewer Rehabilitation Project
which will repair 6,300 ft. of a 90 year-old 36" redwood sewer pipe behind private properties
through single family loan/grants.
· As rates have been capped for years in the Stormwater Fund, required NPDES program elements
have been reduced to stay within projected revenue levels. A limited number of infrastructure
repair projects have been included in the Capital Improvement Program this year, and are the
main cause of the increase compared to last year’s Adopted Budget for this fund of $1.7 million.
The limited funding available was restricted to urgent and emergency repairs only. The new
Stormwater permit, which is anticipated to be released by June 2015, may include additional
requirements with costs that will further strain the Stormwater budget and operations. Plans to
attempt another Proposition 218 ballot to increase revenue are under review to ensure alignment
of resources required to meet the needs of the citizens in the near future.
· Included in the 2014-15 Proposed Budget is funding for nine new positions in the Municipal
Utilities Department. (MUD) which are supported completely by MUD funding sources. The
positions include 1 Technician position in the Administration Division and 1 in the Financial
Services Division; 2 Plant Maintenance Mechanics and 1 Plant Maintenance Worker for the
Delta Water Supply Project; 2 Collection Systems Operator positions in the Maintenance and
Collection System Division; and a 1 Sr. Plant Maintenance Mechanic and 1 Office Technician
position in the Wastewater Division. Each division under this department evaluated operational
conditions resulting in various requests for critical positions that will address compliance
requirements and support including Delta Water Supply and Wastewater plant maintenance
mechanics and worker to maintain 24 hour operations, Wastewater collection area staff who will
improve overflow conditions to comply with Federal Clean Water Act provisions per court
consent decree, and support staff for administrative functions within the Regional Wastewater
Control Facility, Capital Improvement and Energy Management Plan, the Delta Water Supply
Project and department financial services.
Bankruptcy
Fund
This Proposed Budget again separates the resources and costs of bankruptcy activities from other
funds so that tracking of bankruptcy expenditures is more transparent. The Bankruptcy Fund was
initially funded with $5.6 million from the available general fund balance at June 30, 2012 that
the Council committed towards bankruptcy costs. The June 30, 2013 projected general fund
balance (unaudited) of $13.7 million was also committed to bankruptcy costs for a combined
total of approximately $19.5 million available to spend on bankruptcy legal fees, project
management, and settlements at the beginning of Fiscal Year 2013-14. These funds were
generally created by year-end General Fund budget savings generated by a variety of budget to
actual variances, most notably vacancies greater than anticipated. The resources in this
Bankruptcy Fund are dedicated to the continuing effort to confirm a Plan of Adjustment to exit
Chapter 9 bankruptcy.

The Plan of Adjustment is intended to bring the City’s debts in line with our resources, both now
and over time. Specifically, the Bankruptcy Fund will continue to be used to cover costs for
Chapter 9 project management, litigation and negotiations with our creditors, with remaining
money available to pay our creditors as settlements for claims. The outstanding claims or
potential “call” on this money continues to far exceed available monies. Once a Plan of
Adjustment is approved, a staff report will be presented to the City Council with required budget
amendments to this annual budget plan.
Capital
Improvement
Programs
The increase of $36.7 million in FY 2014-15 Proposed Capital Improvement Program Budget
compared to last year’s Adopted Budget are due primarily to obtaining funding from Measure K
renewal and General Fund to cover the following projects: Thornton Road widening, Phase B of
Hammer Lane widening, Lower Sacramento Road and Bear Creek bridge replacement, French
Camp Road and I-5 interchange landscaping and Citywide arterial roadway Light Emitting
Diode (LED) street lights conversion. Converting the existing arterial roadway street light
luminaires from 200-watt high pressure sodium (HPS) to LED will provide long term energy
cost savings and reduce maintenance. The LED street light project of $1.2 million has been
identified as a mission critical project and funded through Measure A proceeds. This citywide
project to convert existing street lights to LED. This investment in energy saving equipment will
reduce the City’s electric bill in the future by as much as $367,000 annually.
Internal
Service
Funds
There are 12 Internal Service Funds: Four of the funds are overseen by the Administrative
Services Department (Computer Equipment, Radio Equipment, Telephone Equipment, and
Office Equipment). Seven Internal Services Funds are overseen by the Human Resources
Department (General Liability, Workers Compensation, Health Insurance, Unemployment,
Long-Term Disability/Life Insurance, Retirement Benefits and Compensated Absences). One
(Fleet) is managed by the Public Works Department. These Internal Service Funds can be
categorized as Equipment or Benefits. During the course of developing each fund’s allocation
rates, an evaluation was done and modifications have been made to the methodology used to
determine and distribute rates, in addition to evaluation of the costs associated with each fund.
Over the last three years, the methodologies for Equipment type of Internal Service Funds were
improved to follow consistent and logical calculations while eliminating duplications. For FY
2014-15 further refinements to special equipment categories have been made such as grouping
vehicles with significantly higher maintenance requirements (fire engines, etc.) and aligning
rates with these groupings. This process created some fluctuations in costs between departments,
such as a fleet decrease to the Police Department and an increase to the Fire Department;
however these improvements did not significantly impact the overall costs being allocated.
At a high level, the equipment related Internal Service Funds of the FY 2014-15 Proposed
Budget reflects increases forecast in the Plan of Adjustment which includes public safety
expansion and part of the mission critical funding made possible through Measure A revenues.
The benefit related Internal Service Funds also reflect comparable increases to the forecast
presented earlier this year. Details of significant changes from last year are discussed below.

Notable elements of the FY 2014-15 Proposed Budget for Internal Service Funds include the
following:
· The proposed Fleet Budget includes an increase of $758.000 for fleet operations, maintenance,
fuel and replacement vehicles, including two new fire engines.
· The Computer Equipment budget includes an operational increase of $2 million primarily to cover
increases in salaries, benefits and much needed technology equipment replacements. Most
significantly impacting the increase is the addition of a Director of Technology and an Executive
Assistant designed to address the City Council target of Organizational Development and
Financial Stability. The City has very critical functions in the Administrative Services
Department (ASD) which currently oversees the Information Technology and Finance divisions.
Through the evaluation of ASD functions and processes, serious issues have been identified and
work plans developed to address the issues in both the Finance and IT divisions of the
department. Making an impactful investment to address these issues is critically important and
necessary to moving forward with greater financial stability, improved internal controls and
significantly enhanced efficiencies. Continuing to rely upon a single department head to move
the work plans for both of these areas forward will continue to dilute the level of effort spent on
these areas. This budget recommends going back to the organizational structure prior to the
City’s fiscal crisis when Information Technology functions were a separate department. The
recommended Information Technology Department in this Proposed Budget includes a new
department head and new support position. The operational improvements recommended in this
budget will also improve service to the other technology related ISF areas such as the Radio ISF
which is instrumental to public safety equipment enhancements funded by Measure A.
· In addition, this budget includes $7.4 million in funding for FY 2014-15 Citywide Technology
Strategic Plan (CTSP) projects including mission critical funds of $5.2 million for the financial
system and point of sale upgrade, along with unexpended prior year balance from this fund
which has again been redirected to the Citywide Technology Strategic Plan to fund priority
projects. The City Council approved the initial five-year Citywide Technology Strategic Plan in
January 2012 making improvements in technology a priority. Since then, the Plan has been
continuously evaluated and revisions made to reflect current needs and relevant projects. One of
those technology projects identified as a priority in the CTSP is replacement of the financial
system. Subsequently through the assessment of our finances, the bankruptcy, audits and payroll
errors it is abundantly clear that the City needs to invest in a new financial system. The City has
been limping along with a system installed in 1991. The CTSP identified this as a high priority
but indicated that the funding for the system and implementation would need to be identified.
The Long Range Financial Plan includes $8 million of mission critical funding from Measure A
proceeds and made available due to the timing of hiring of the Marshall Plan Police Officers. Of
this mission critical funding, $5 million has been budgeted for the financial system. This
financial system addresses the Council goals of fiscal sustainability as well as organizational
development. Another mission critical project similar to many other CTSP projects in long term
need and urgency is the Point of Sales (POS) system at the Arena. Mission critical funds of

$236,000 have been budgeted for the POS system upgrade to ensure compliance with current
system security. These CTSP project changes have been reflected in FY 2014-15 budget and will
be reported to Council through a separate Citywide Technology Strategic Plan update report.
·
· The Radio Equipment Fund has remained stable from an operational perspective. However, due to
seriously low reserves for replacement of aging equipment, an additional $1 million has been
transferred from the mission critical funding from the General Fund. The City's radios suffer
from the same lack of investment that the City's IT systems. Many radios are well beyond their
useful life and frequently break. Parts for the radios are becoming harder to find. Staff is
preparing a comprehensive inventory of radios that will determine the need, however it is
estimated that the City needs $3 to $5 million to improve the radios and ensure public safety
personnel have proper communications equipment. Staff is also performing an analysis to
determine the type of support infrastructure necessary for the system with a goal toward a
regional radio solution. This mission critical funding of $1 million from the Measure A proceeds
addresses the City Council’s target of public safety and will begin replacements of critical
equipment for those providing public safety to the citizens of Stockton.
· The Telephone and Office Equipment Funds remain stable with only slight operational increases.
· Proposed Budgets in the General Insurance (Risk Services) and Workers’ Compensation Funds
both carry deficit fund balances because past administrations did not budget adequate
contributions of the General Fund and other Funds to finance accrued long-term liabilities.
However, both of these funds show improvements in unfunded liabilities and minor operating
expenditure increases for FY 2014-15.
· Workers’ Compensation rates have been refined by employee categories to more accurately
reflect program claims experience.
· In the Health Benefits Fund, the proposed rates assume no change in the City contribution and
assume the same rates for all units. This fund has recovered over the past three years so that it is
able to cover the full claims liability (IBNR) in addition to operational costs. In addition, the
proposed FY 2014-15 ending fund balance is sufficient to fund the actuarial recommendation for
Claims Fluctuations of $3.5 million plus 68% of the recommended economic reserve of $7.2
million. Although not completely whole, this fund is showing important improvements. Human
Resources staff continues to work to ensure compliance with the upcoming provisions of the
Affordable Care Act.
· The Unemployment and Compensated Absences rates charged to departments have been reduced
in the proposed FY 2014-15 Budget due to stabilization of unemployment claims and
modifications to the employment contract provisions regarding sick leave and separation pay.
· The Retirement Fund reflects increases in CalPERS rates from prior year for safety from 34.605%
to 41.385% and miscellaneous classification from 17.939% to 20.090%. The resulting increase in
payments is budgeted at $9.6 million.
Income

Below in a table and graph form we can see the median household income in the period of 9
years. We can see the decrease in income in all three presented categories (USA, State of
California and the city of Stockton), but the most drastic was in Stockton itself, driving incomes
down for over 17%.
Year
US
California
Stockton
2005
66621
73356
68938
2006
67618
74593
67828
2007
68727
75817
66102
2008
68556
75765
67487
2009
66336
72805
65065
2010
64754
69959
58947
2011
63650
67815
57993
2012
63435
67177
57475
2013
64030
68222
57111
From the graph above we can see more clearly that before the crisis, Stockton was above the
country average concerning median household incomes. Today, the income is lower than the
country average for more than 11%.

Income per capita in 2012 varied widely between the Stockton’s districts. The city is divided into
six council districts with each district electing one representative to the city council. The districts
are arranged in a north-south direction, beginning with District 1 in the northernmost part of
Stockton and ending with District 6 in the south. Per capita income was highest in District 1 at
25,530.41 dollars, followed closely by District 4 at 23,972.98 dollars and by District 3 at
21,667.38 dollars. As can be seen in the map below, per capita income was highest in census
tracts in the northwest part of Stockton, which also represent large parts of Districts 1, 3 and 4.
Per capita income in District 2 was somewhat lower at 18,895.12 dollars. On the other hand,
Districts 5 and 6 had much lower per capita incomes at 13,785.73 and 14,657.69 dollars,
respectively. This is also noticeable in the map below, which clearly shows a large area of low-income
census tracts in the south-central part of Stockton around Dr Martin Luther King, Jr
Boulevard, an area that is part of Districts 5 and 6.
District 1
census tracts
District 2
census tracts
District 3
census tracts
District 4
census tracts
District 5
census tracts
District 6 census
tracts
25,530.41
18,895.12
21,667.38
23,972.98
13,785.73
14,657.69
Per capita income, 2012, weighted average, census tracts grouped by district, in US dollars.
Source: US Census Bureau

Median value of housing
As shown in the graph below, in 2005, the median value of an owner-occupied housing unit in
Stockton was 341,800 dollars. Housing values then peaked in 2006, reaching 384,000 dollars.
The next year, prices fell 5.02% as the financial crisis was starting to take shape. In 2008, with
the recession in full swing, values started falling more rapidly and by 2009, the median value had
already halved compared to its pre-crisis peak. In the following three years, the contraction in
values diminished, finally bottoming out in 2012 at a median value of 156,600 dollars, a 59%
drop from the peak in 2006. This decrease is considerably larger than the fall of housing values
in California as a whole, which stood at 35% and much larger still than the United States median
housing value, which fell 13% from its 2008 peak. Coming into 2013, housing values in
Stockton rose only slightly, reaching 162,000 dollars. These figures indicate that Stockton has
been hit disproportionately hard by the global financial crisis, severely affecting assets of
residents and local government income from property taxes. If the median value of housing units
in Stockton stood at more than twice the amount of the national figure in 2006, by 2009 it had
dipped just below and had not recovered by 2013. In fact, the situation had worsened still: in
2013, house values in Stockton stood at 93% of the national median.

Year
Stockton
California
United
States
2005
341,800
477,700
167,500
2006
384,000
535,700
185,200
2007
364,700
532,300
194,300
2008
267,000
467,000
197,600
2009
182,700
384,200
185,200
2010
171,500
370,900
179,900
2011
157,000
355,600
173,600
2012
156,600
349,400
171,900
2013
162,000
373,100
173,900
Median value, owner occupied housing units, 1-year estimate, in US dollars
Source: US Census Bureau
Pension Fund
In early October 2014, a judge in Stockton's bankruptcy case ruled that the city's payments into
the California Public Employees' Retirement System could be cut as part of its bankruptcy
proceedings. This sparked fears that if the city were forced to leave the retirement system, it
would immediately owe the pension fund $1.6 billion, more than twice the city's planned
expenditures for fiscal year 2014-15. However, on October 30, 2014, the judge approved the
city's bankruptcy recovery plan, allowing the city to continue with its planned payments,
protecting public workers' pensions.

CPI Inflation rates per year
We present below in table form and histogram the CPI inflation rates per year for an 8-year
interval. As is evident from the adjacent graph, inflation peaked in 2007 in large part due to the
Federal Reserve liquidity provision programs. 2008 brought a decline in CPI inflation, heavily
influenced by the sharp decline in crude oil that same year. 2009 saw the sharp increase of CPI
inflation when core inflation in the US turned negative. This prompted the Federal Reserve to
launch a quantitative easing program, which would later become known as QE1. CPI inflation
levelled off in 2010 after the conclusion of QE1 and rose again in 2011 in the period of the
second quantitative easing, QE2, corresponding with the rise of core inflation rates due to the
increase in money supply.
CPI Inflation Rates per year
(percent)
2006
2.54
2007
4.08
2008
0.09
2009
2.72
2010
1.5
2011
2.96
2012
1.74
2013
1.5

Environmental Analysis
Climate
Looking at the topographic map below you can see that Stockton is located in the Central Valley
at an elevation of 26 feet (according to the Local Climate Data). This is a large flat valley that
covers the central portion of California. It is approximately 400 miles long and runs nearly
north-south. North of Stockton is Sacramento Valley which can receive as much as 20 inches of
rain per year and to the south is San Joaquin Valley which is dry and often desert-like. Stockton
is located where these two valleys meet, the Shared Sacramento-San Joaquin River Delta. The
area is known for its hot, dry summers and cool, wet winters. The average annual rainfall is 14
inches of which most occurs from November to April, which is considered the rainy season.
Ninety percent of all precipitation falls during these months (according to the Local Climate
Data).
Monthly Average Temperature

The hottest month in Stockton is July, the hottest average temperature is 93,4 F, 34,1 C) and the
coldest is December with the lowest temperature 37,2F, 2.9 C.
Precipitation
Summer months are very dry, amount of rain that falls in inches is almost zero. There is more
precipitation during autumn, in winter months the average is almost 4 inches.
Average number of days with 0.1 inch or more precipitation in a year

Snow
Heating & Cooling Cost Index
The Heating Cost Index and the Cooling Cost Index are indicators of the relative heating and
cooling cost of an area. They were calculated based on the average temperature and duration of

the hot and cold days for the area. The actual heating cost and cooling cost are also dependent on
other factors specific to individual residences such as the size of the house, the insulation
condition, and the equipment efficiency, etc.
What we can see in the diagrams is, that in Stockton they spent two times more money for
cooling than is average in US, and 2 thirds less money for heating than is average in US.
The annual wind rose for Stockton, California.
Notice the predominant wind direction is westerly due to a sea breeze that is common as air
passes through a gap in the mountains. Looking beyond the sea breeze the winds come from the
northwest and southeast due to the orientation of the valley in which Stockton is located. Image
courtesy of NOAA.
To the east and northeast are the Sierra Nevada mountains, which can under certain conditions
bring unseasonably dry weather to the area. This would occur if there were north or northeast
winds allowing the air to move downslope into Stockton. But to the west is the Coast Range,
which has a larger effect on Stockton's weather. This mountain range primarily acts to block the
maritime air from Stockton. But there are gaps in the mountains that let air come in from San
Francisco Bay, as a sea breeze. This sea-breeze is much more dominant in the warm season.
This is shown by looking at the annual wind rose for Stockton, shown below. The predominant
wind direction is from the west which is where the air would come in through the waterways into
Stockton. These sea breezes would allow Stockton to be slightly cooler in the summer than areas
north and south. The next prominent wind direction is northwest and southeast which would
occur due to the orientation of the valley. These valley winds are common when sea breezes are
not, such as during our forecast period. This northwest- southeast orientation channels the winds
through the valley and into Stockton best when there is a weak pressure gradient.
Geography
History of City’s Formation: Stockton was founded as Tuleburg in 1847. Miwok Yokut Indians

lived in the area hundreds of years before the establishment of Spanish California. They were
soon replaced by the Europeans. In 1848 Captain Charles Maria Weber, a German immigrant
decided to try his hand at gold mining, he soon discovered that serving the needs of gold-seekers
was a more profitable venture. A year later, at the close of the Mexican War, Weber founded
Stockton when he purchased over 49,000 acres of land through a Spanish land grant. The people
that were located on the grant gave Weber some hopes of a permanent settlement and he had the
land surveyed and sectionalized. The discovery of gold on the American River, on January 24
1848, caused Stockton to transform from a small settlement to a thriving commercial center,
supplying miners heading up to the Sierra foothills. Captain Weber soon organized the Stockton
Mining company.
With the discovery of gold the next year, it became a supply center for miners. The city was
renamed in 1849 and was incorporated in 1850. As the gold diminished, Stockton turned to
agriculture, becoming a thriving trade center on the Central Pacific Railway. The Stockton area
was one of the first in which mechanized farming equipment, such as combines, was used. The
city grew steadily during the late 19th and early 20th centuries. A period of rapid development
followed completion of the port in the 1930's.
Population: 243,771.
Central location: Stockton, California, the seat of San Joaquin County.
It lies on the San Joaquin River in the Central Valley, about 60 miles (97 km) east of San
Francisco.South of Sacramento, the state’s capital, north of Modesto, the Central Valley region,
and east of San Francisco.
Stockton is the processing and shipping center for a rich farming area that produces
tomatoes and other vegetables, fruits, walnuts, and livestock products. Industries include food

processing and the manufacturing of lumber products and electronic items.Its proximity to the
agriculture of the valley region will become more important as research and development
combine agriculture with alternative fuels.
Stockton is along Interstate 5, which forms a north-south route through California, and
Route 99, which runs parallel and stretches almost the entire way of the central valley, roughly
paralleling the Sacramento-San Joaquin River Delta. Given its location, its proximity to the state
and interstate freeway system, and relatively inexpensive land costs, several companies base
their regional operations in Stockton. These include Duraflame, Pac-West Telecommunication,
and Golden State Lumber Company

Within and around Stockton, there are thousands of miles of waterways which comprise
the California Delta. An inverted delta formed by the Sacramento and San Joaquin Rivers, the
California Delta has lent itself to one of the most agriculturally rich areas in the U.S.
Port of Stockton: Handles mainly bulk cargo. One of California’s two inland sea ports.
Connected to San Francisco via San Pablo Bay, Suisun Bay, and the San Joaquin River’s 78-mile
channel.
In March, 2014 the Google Barge sailed from Treasure Island, where it no longer held the
permits to stay, to the Port of Stockton. Google will be paying $12,000 a month to dock the
barge at the Port of Stockton. Their lease is for six months, but the barge can leave earlier or stay
later. Construction of the barge has not ended, providing job opportunity for the area.
Port of Stockton Director Richard Aschieris notes that the port is quite secure due to it falling
under the Department of Homeland Security rules. It is about a seven and a half hour trip from
the bay area.15
Because of its proximity to such great bodies of water and its low average elevation of 15
ft, Stockton’s most threatening natural hazard is flooding. Stockton currently has levees and
other control facilities for flood protection, but in the future, a higher level of long term
protection will be required to safekeep its urban areas from potentially severe high-water events.
Air Quality
15
http://sacramento.cbslocal.com/2014/03/06/google-barge-slips-away-under-cover-of-night/

Hazards
Earthquake
and
Tornado16
The chance of earthquake damage in Stockton is much lower than California average and is
much higher than the national average. The risk of tornado damage in Stockton is about the same
as California average and is much lower than the national average. Thus, the main risk of disaster
comes from earthquake.
Historical Earthquake Events
A total of 90 historical earthquake events that had recorded magnitudes of 3.5 or above found in
or near Stockton, CA.
Distance (miles)
Date
Magnitude
Depth (km)
Latitude
Longitude
16
http://www.usa.com/stockton-ca-natural-disasters-extremes.htm

27.9
1980-01-24
5.8
8
37.83
-121.79
49.0
1955-09-05
5.8
N/A
37.37
-121.78
47.9
1943-10-26
5.5
N/A
37.4
-121.8
26.7
1980-01-27
5.4
10
37.75
-121.71
40.1
1955-10-24
5.4
N/A
37.97
-122.05
27.2
1980-01-24
5.1
3
37.8
-121.76
28.1
1980-01-24
4.8
1
37.84
-121.8
32.0
1965-09-10
4.8
N/A
38
-121.9
46.8
1981-01-15
4.8
9
37.38
-121.72
45.4
1984-03-27
4.7
7
37.76
-122.1
28.4
1977-06-21
4.6
10
37.65
-121.63
28.7
1977-06-21
4.6
10
37.65
-121.64
49.8
1952-10-13
4.5
N/A
37.75
-122.18
49.8
1937-03-08
4.5
N/A
37.8
-122.2
44.7
1981-03-03
4.4
10
37.56
-121.94
49.5
1984-09-26
4.4
6
37.34
-121.73
35.7
1970-06-12
4.3
9
37.8
-121.93
27.4
1980-01-25
4.2
6
37.83
-121.78
27.6
1980-01-25
4.2
3
37.84
-121.79
27.9
1980-01-25
4.2
5
37.85
-121.8
36.0
1970-06-12
4.2
9
37.81
-121.94
41.2
1963-05-20
4.2
N/A
37.6
-121.9
42.3
1958-10-31
4.2
N/A
37.5
-121.8
Distance (miles)
Date
Magnitude
Depth (km)
Latitude
Longitude
25.9
1962-03-17
4.1
N/A
37.87
-121.77
26.0
1984-03-18
4.1
10
37.78
-121.72

28.1
1980-01-27
4.1
8
37.84
-121.8
31.9
1943-04-26
4.1
N/A
37.63
-121.7
37.3
1943-04-29
4.1
N/A
37.56
-121.75
38.1
1958-05-31
4.1
N/A
37.87
-122
48.0
1978-08-29
4.1
8
37.36
-121.72
25.3
1980-01-24
4
2
37.83
-121.74
26.5
1963-06-07
4
N/A
38
-121.8
33.8
1980-08-24
4
5
37.57
-121.66
38.0
1976-08-20
4
7
37.79
-121.97
47.5
1977-01-08
4
10
37.9
-122.18
28.4
1960-12-15
3.9
N/A
38.03
-121.83
35.8
1976-08-20
3.9
2
37.76
-121.91
37.5
1961-08-18
3.9
N/A
37.93
-122
45.1
1982-08-24
3.9
6
37.46
-121.82
22.3
1948-01-14
3.8
N/A
37.87
-121.7
25.8
1982-08-28
3.8
12
37.85
-121.76
25.9
1969-12-29
3.8
N/A
37.77
-121.71
29.4
1969-03-13
3.8
N/A
38.03
-121.85
36.8
1970-05-26
3.8
4
37.8
-121.95
38.9
1977-06-04
3.8
26
38.2
-121.97
39.0
1961-11-17
3.8
N/A
37.97
-122.03
Distance (miles)
Date
Magnitude
Depth (km)
Latitude
Longitude
46.9
1983-06-04
3.8
6
37.72
-122.11
48.5
1978-05-11
3.8
3
37.37
-121.76
48.6
1977-01-08
3.8
9
37.9
-122.2
48.6
1978-08-29
3.8
7
37.35
-121.72

49.9
1984-12-28
3.8
6
37.33
-121.72
25.6
1966-02-10
3.7
N/A
37.89
-121.77
29.6
1980-02-21
3.7
6
37.66
-121.68
31.3
1976-07-13
3.7
10
38.09
-121.87
37.2
1979-07-10
3.7
17
37.86
-121.98
38.2
1977-10-13
3.7
10
37.47
-121.03
39.5
1965-06-28
3.7
N/A
37.52
-121.75
40.4
1979-06-17
3.7
16
38.1
-122.04
45.7
1948-07-20
3.7
N/A
37.45
-121.82
46.3
1977-09-05
3.7
8
38.19
-122.12
47.6
1978-05-11
3.7
4
37.38
-121.75
48.3
1959-06-11
3.7
N/A
37.33
-121.65
27.1
1980-01-29
3.6
9
37.79
-121.75
30.8
1942-08-14
3.6
N/A
37.98
-121.88
34.7
1948-01-31
3.6
N/A
37.97
-121.95
35.1
1970-08-31
3.6
8
38.1
-121.94
46.0
1943-11-16
3.6
N/A
37.78
-122.12
47.0
1979-01-11
3.6
1
37.39
-121.75
47.9
1973-12-29
3.6
7
37.4
-121.8
Distance (miles)
Date
Magnitude
Depth (km)
Latitude
Longitude
49.1
1983-10-23
3.6
7
37.33
-121.69
49.6
1984-10-31
3.6
8
37.31
-121.65
26.8
1976-09-05
3.5
9
37.6
-121.43
26.9
1979-02-21
3.5
12
37.83
-121.77
28.1
1966-07-19
3.5
N/A
37.65
-121.62
28.6
1980-01-24
3.5
9
37.84
-121.81

30.4
1983-06-05
3.5
13
38.01
-121.87
36.0
1970-05-26
3.5
4
37.81
-121.94
36.3
1970-05-29
3.5
7
37.8
-121.94
36.3
1977-06-17
3.5
22
38.18
-121.93
37.2
1977-07-19
3.5
2
38.05
-121.99
39.4
1985-09-24
3.5
8
37.49
-121.69
40.0
1943-09-26
3.5
N/A
37.5
-121.73
44.7
1976-07-07
3.5
10
37.44
-121.77
45.8
1961-10-19
3.5
N/A
37.42
-121.77
46.1
1954-02-08
3.5
N/A
37.8
-122.13
47.3
1979-08-13
3.5
9
37.86
-122.17
47.4
1962-04-07
3.5
N/A
37.37
-121.72
47.9
1984-07-31
3.5
6
37.38
-121.76
47.9
1980-12-31
3.5
10
37.7
-122.12
49.4
1977-12-12
3.5
7
37.33
-121.7

Historical Tornado Events
A total of 1 historical tornado event that had recorded magnitude of 2 or above found in or near
Stockton, CA.
Distanc
e
(miles)
Date
Mag
nitud
e
Start
Lat/Log
End
Lat/
Log
Le
ngt
h
Wi
dt
h
Fata
lities
Inj
urie
s
Proper
ty
Dama
ge
Crop
Dam
age
Affect
ed
Count
y
28.3
1953
-04-
27
2
37°39'N
/
121°00'
W
0
0
3K
0
Stanisl
aus
Flood
2.1 http://www.sjmap.org/floodzoneviewer/Viewer.asp

2.2 https://hazards.fema.gov/femaportal/prelimdownload/ but no data for San Joaquin County?
2.3 Flood information provided by the Government
Water Damage vs. Flood Damage in North Stockton, CA17
The dictionary defines “flood” as a rising and overflowing of a body of water onto normally dry
land. For insurance purposes, the word “rising” is the key to distinguishing water damage from
flood damage in North Stockton, CA.
Flood damage in North Stockton, CA can be caused by:
Overflowing lakes or rivers
Rapid accumulation of rainfall
Outdated or clogged drainage systems
The Potential Flooding Problem of Sprawl18
Obviously, sprawl on its own does not create excessive amounts of rain or cause levees to
collapse. However, sprawl does exacerbate these events. By replacing soil with asphalt and
concrete, rainwater that would otherwise be absorbed by the ground is instead funneled into the
Delta through storm drains, creating more work for overtaxed levees during extended periods of
rainfall. When deciding on the region’s growth, we need to understand that the way we build our
communities can either alleviate the effects of flooding or amplify them.
Here’s how it happens; if rain falls on farmland or in a park, storm water is absorbed by soil
and vegetation, eventually replenishing the water table, where it waits to be used by farmers
and/or city residents. In contrast, water falling on your typical suburban street/rooftop or strip
mall cannot be absorbed by solid surfaces and is instead diverted to a storm drain and rushed into
the nearest waterway. Rain falling in Oak Park stays in the ground while rain at a shopping
center is sent to the Delta. On a large scale, all of these rain drops falling on impervious surfaces
add up to higher water levels.
Fire Hazard19
From the map, South Stockton has little chance of severe fire hazard, but the fire in other areas
may cause air pollution to South Stockton ----need the wind blowing direction data.
Freeze
The San Joaquin Valley is the largest citrus producing region in the United States, and the
production of these fruits was adversely affected by this weather system. Cold-sensitive plants
that grow in this area such as oranges, lemons, avocados, and flowers were greatly damaged due
to the cold because they cannot tolerate a hard freeze. Temperatures in Los Banos, California,
17
http://advantaclean.com/north-stockton-ca/flood-damage/
18
http://stocktoncitylimits.com/2013/04/30/how-sprawl-makes-flooding-worse/
19
http://www.sjmap.org/nhd/

dipped to 21°F (-6°C) on both January 14 and January 15. An estimated 75% of the nation's
citrus crop has been destroyed by the cold weather, with damages to some other crops such as
strawberries and avocados and even fresh-cut flowers. The total damage in the area was
estimated at around $1 billion. Governor Arnold Schwarzenegger requested federal disaster
aid.20
Storm Events Database21
167 events were reported between 07/01/1950 and 07/31/2014
Summary Info:
Number of County/Zone areas affected:
5
Number of Days with Event:
132
Number of Days with Event and Death:
7
Number of Days with Event and Death or Injury:
12
Number of Days with Event and Property Damage:
29
Number of Days with Event and Crop Damage:
5
Number of Event Types reported:
19
Precipitation and Drought
Yearly inches of precipitation in California, 1950-2014
20
http://www.fsa.usda.gov/FSA/newsReleases?area=newsroom&subject=landing&topic=edn&new
stype=ednewsrel&type=detail&item=ed_20110310_rel_0033.html
21
http://www.ncdc.noaa.gov/stormevents/listevents.jsp?eventType=ALL&beginDate_mm=07&be
ginDate_dd=01&beginDate_yyyy=1950&endDate_mm=07&endDate_dd=31&endDate_yyyy=2
014&county=SAN%2BJOAQUIN&hailfilter=0.00&tornfilter=0&windfilter=000&sort=DT&sub
mitbutton=Search&statefips=6%2CCALIFORNIA

Local Biodiversity
Chinook Salmon (Part of Stockton’s historic biodiversity)
Chinook salmon are easily the largest of any salmon, with adults often exceeding 40 pounds (18
kg); individuals over 120 pounds (54 kg) have been reported. Chinook mature at about 36 inches
and 30 pounds.
Salmon were an important part of the cultures of many indigenous tribes living in the Central
Valley; tribes in this region attained some of the highest pre-European-settlement population
densities in North America (Yoshiyama 1999). In the mid-1800s, particularly during the
California Gold Rush, salmon gained the attention of early European settlers, and commercial
harvest of salmon in the Sacramento and San Joaquin rivers soon became one of California’s
major industries.
By the 1920s, dam-reduced autumn flows in the mainstem San Joaquin River nearly eliminated
the fall-run, although a small run did persist.
In April of this year, for the first time in over 60 years, spring run Chinook salmon returned to
the San Joaquin River when the San Joaquin River Restoration Program released 54,000 juvenile
into California’s second largest river. The salmon release is part of a long-term effort to revive
the River’s historic salmon fishery and create a healthier waterway for the communities of the
San Joaquin River Valley while improving water management in one of the most productive
agricultural regions in the nation. The San Joaquin River Restoration Program is the result of the
2006 landmark restoration settlement agreement between NRDC representing fishing and
conservation groups, the federal government and the Friant Water Authority representing over
15,000 farmers (Natural Resources Defense Council)
Wetlands at the Stockton Wastewater Treatment Tertiary Facility
Wetlands Process
The Stockton Regional Wastewater Control Facility includes wetlands areas totaling 135 acres.
The wetlands area is part of the treatment process that allows the wastewater to be routed
through vegetative material that will effectively remove additional material without the use of
chemicals.
There are three ponds with varying water levels that aid in settling materials and removing
turbidity, some metals, and biochemical oxygen demand (BOD) through aerobic, anoxic and
anaerobic reactions. Each year there is a cycle of vegetation decay and regrowth that renews the
process.
Because of the vegetative and sometimes marshy nature of the wetlands, it has also become a
distinctive sanctuary for migrating birds. Throughout the year, a variety of migratory birds can
be seen nesting, feeding, and resting at the wetlands.

A recent baseline bird count by the Audubon Society recorded over 7,300 birds representing 55
species.
Water Management (distribution and waste)
Stockton Water System
The Municipal Utilities Department (MUD) provides water service to the residents and
businesses in the North and South Stockton areas. California Water Service (CalWater), a private
company, provides for most of central Stockton. Please visit the About Your Address web page
to find your water service provider.
Water Supplies
Approximately 25% of the City’s water supply originates from groundwater wells with the
remaining water supply from treated surface water supplied by the Stockton East Water District
(SEWD).
The Delta Water Supply Project has been completed. MUD will reduce the amount of water
received from SEWD and reduce the amount of groundwater pumped each year. This reduction

improves the City’s water supply reliability and protects its groundwater resources. The new
facility can supply up to 30 million gallons per day (MGD) of drinking water to Stockton
residents. Delta Water Treatment Plant
The City recently completed construction of its new 30MGD drinking water treatment plant, and
intake and pump station facility. The Delta Water Supply Treatment Plant provides a new
supplemental, high quality water supply for the Stockton Metro area. The finished project
replaces declining surface water sources, protects groundwater supplies, and provides for current
and future water needs.
Water Resources Planning
Urban Water Management Plans (UWMPs) are prepared by California’s urban water suppliers to
support their long-term resource planning and ensure adequate water supplies are available for
existing and future water demands. Every urban water supplier that provides over 3,000 acre-feet
of water annually or serves more than 3,000 or more connections – is required to assess the
reliability of its water sources.
This assessment is over a 20-year planning horizon considering normal, dry, and multiple dry
years. The Urban Water Management Planning Act requires the City to prepare this plan every 5
years and submit to the Department of Water Resources.

Sewer
The Regional Wastewater Control Facility is a 55 Million Gallon per day (MGD) tertiary
treatment facility. The facility serves the City of Stockton and outlying County areas and
currently processes an average of 33 MGD.
After treatment, under the restrictions and requirements of a National Pollutant Discharge
Elimination System (NPDES) permit, the water is discharged into the San Joaquin River.

Treatment operations at the facility are closely regulated under our Wastewater NPDES permit.
Part of that permit requires the preparation of a Sewer System Management Plan (SSMP) that
describes the procedures and activities necessary to operate and maintain the treatment facility in
order to reduce Sanitary Sewer Overflows (SSOs) and the procedures for reporting should an
SSO occur.
The SSMP was developed in compliance with the requirements of the State Water Resources
Control Board General Waste Discharge Requirement (GWDR). The GWDR provides a
consistent approach for reducing the Sanitary Sewer Overflows (SSOs) and applies to all
publicly owned collection system agencies consisting of more than one mile of pipe or sewer line
and which convey untreated wastewater to a publicly owned treatment facility.

Regional Wastewater Control Facility
There are over 116,000 sewer connections throughout the City. Every time you run water down
the drain or flush the toilet, that wastewater routes through 900 miles of sanitary sewer lines to
end up at the Regional Wastewater Control Facility (RWCF).
The RWCF is at work 24-hours, a day, 7-days a week, making sure everything flows. Once the
wastewater at our plant, it is treated to ensure that any water that is emptied into the Delta meets
the highest of water quality standards to protect our environment.
Every day, approximately 32 million gallons of sewage is processed at Municipal Utilities
Department (MUD). The RWCF is a tertiary treatment plant that ensures only the cleanest water
is discharged into the Delta.
Part of MUD’s efforts to protect the environment is to create energy to power the plant from the
waste that comes into the plant each day. At a minimum, over 40,000,000 pounds of sludge is
processed each day through environmentally safe procedures. MUD’s cogeneration facility
generates 17,600 Kilowatts/year and the decomposition process for biosolids provides some of
the energy for the engine generators. This on-site energy production supplies most of the plant’s
power needs.
Treatment Process
The Stockton Regional Wastewater Control Facility is located in the southwest area of the city of
Stockton, California. the facility includes primary, secondary, and advanced tertiary treatment of
wastewater. A flow diagram shows the full treatment process from entrance into the treatment
plant to discharge into the San Joaquin River.

Stockton Deliverable 1: Preliminary Research (Report)

Stockton Deliverable 1: Preliminary Research (Report)

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