The Stockton City Council recently unanimously approved the 2024 Economic Development Subsidy Annual Report, highlighting more than $6.9 million in subsidies distributed to incentivize development, housing, and business growth throughout the city.
The report, required under California Government Code §53083 (AB 562), details public funds or revenue losses of $100,000 or more granted to businesses and developments to stimulate economic activity.
Programs covered include the Stockton Economic Stimulus Program (SESP), the Public Facilities Fee (PFF) Reduction for Non-residential Projects, the Affordable Housing PFF Exemption Program, and the Office and Industrial Sales Tax Incentive Program.
The largest recipient under SESP’s Single-Family Residential component was KB Home, receiving over $1 million in fee waivers.
Other developers receiving substantial subsidies included Richmond American Homes ($956,141), Florsheim Homes ($298,794), and Orchard Homes ($139,437). The total subsidy for single-family homebuilders in 2024 amounted to $2.41 million, with 478 jobs reportedly created as a result, though no specifics on full-time or part-time status were included.
SESP’s non-residential component, originally established in 2010 and folded into SESP in 2015, provided $563,054 in fee waivers to First American Title Insurance Co. and Gospel Center Rescue Mission.
Under the City-Wide Affordable Housing Development PFF Exemption Program, nearly $1.91 million was allocated, primarily to St. Mary’s Community Services and the San Joaquin County Housing Authority, to support low-income housing developments citywide.
The Office and Industrial Sales Tax Incentive Program, although sunset for new applicants in 2019, continued to provide rebates in 2024 under prior agreements. Valley Pacific Petroleum and Diesel Direct West together received $2.06 million, generating an estimated 40 full-time jobs.
During the public hearing, resident Mary Elizabeth voiced concerns about the effectiveness and transparency of the subsidies.
“This is a lot of money that is going up for housing that many and most of our residents cannot afford,” she said. “We are giving away our community to development… and I just really don’t see that the economic development stimulus that we’re achieving here wouldn’t have been achieved otherwise.”
Despite the critique, the council approved Motion 2025-06-03-1603 to accept the report. The vote passed 6-0, with Councilmembers Christina Fugazi, Michael Blower, Michele Padilla, Mariela Ponce, Mario Enríquez, and Jason Lee voting in favor. Councilmember Brando Villapudua was absent.
The City Council also unanimously approved a $7.2 million budget for the 2025-26 fiscal year to fund maintenance in the city’s Consolidated Landscape Maintenance Assessment District No. 96-2, which covers 27 active zones citywide.
With no protests filed during the public hearing, the Council adopted Resolution 2025-06-03-1605, which formalizes assessment levies, confirms the Annual Engineer’s Report, and certifies compliance with Proposition 218 and California Streets and Highways Code Section 22500.
“This is a critical step in ensuring our parks, open spaces, and streetscape features are properly maintained,” said Paul Snyder of Siegfried Engineering, who led the engineering and financial analysis for the city. “The resolution allows for necessary increases in funding to meet both rising costs and long-term capital replacement needs.”
The budget includes assessments on property owners within the 27 zones to fund the upkeep of more than 4 million square feet of streetscaping, 5,500+ trees, 68 acres of open space, 12 parks totaling 114 acres, 42 miles of back-up walls, and 10.5 miles of bike/pedestrian paths.
Additional costs will cover lighting, utilities, repairs, and administrative functions. Of the total $7.235 million budget, $5.28 million will be collected through assessments and $1.95 million appropriated from reserve funds.
This marks a $462,800 increase from the previous year’s budget. The reserve balance, now estimated at $8 million, remains short of the city’s target of $20 million for long-term infrastructure needs.
The Annual Engineer’s Report recommended keeping assessments flat for seven zones with fixed rates. However, in the remaining 20 zones, where rates may adjust annually, assessments will rise between 3.00% and 729.92%, depending on each zone’s financial health and capital needs.
“The higher increases are necessary,” the report explained, “due to inflation, aging infrastructure, and previously deferred maintenance.” Some zones face potential insolvency without further increases.
Zone A-1, for instance, is projected to become insolvent within two years. “A reduction in landscape maintenance services and irrigation is recommended,” the report stated, adding that water use in this zone constitutes 22% of its budget.
Other struggling zones include C-1, which was tasked with maintaining Baxter Park without an associated assessment increase since 1997.
“Annual increases in park maintenance costs are unsustainable,” the report warned, recommending that maintenance be scaled back if other funding is not secured.
The Council also approved a related measure, Resolution 2025-06-03-1606, adopting the budget and assessments for the Central Stockton Lighting Maintenance Assessment District, Zone 4 (Oxford Manor).
That measure passed 7-0 with no opposition.
All funds raised through the assessments must be spent within the respective zones.
Council members emphasized that no general city funds are used for the district. “Every dollar assessed goes directly back into the neighborhoods,” Councilmember Mario Enríquez said. The vote for Resolution 2025-06-03-1605 was carried 6-0, with Councilmember Brando Villapudua absent.
The City Council voted unanimously also to approve the Fiscal Year 2025-26 budgets and assessments for stormwater management across the Stockton Consolidated Storm Drainage Maintenance Assessment District and six industrial basin districts.
The move finalizes the Engineer’s Reports, confirms assessments for each zone, and ensures compliance with state law and environmental standards.
With a 7-0 vote, the Council approved Resolution 2025-06-03-1607, officially adopting the District Annual Engineer’s Report, confirming assessments, and authorizing filings with San Joaquin County. The District, formed in 2005, now includes 15 zones, each receiving stormwater maintenance funded through property assessments.
According to the City’s report, these special assessments are needed to maintain infrastructure such as pump stations, pipelines, and stormwater treatment basins. “Regular system maintenance is necessary to prevent flooding from storm runoff,” the Municipal Utilities Department wrote. The system includes 77 pump stations, over 600 miles of pipeline, and more than 22,000 inlets.
The vote authorizes the City Manager to “take all appropriate and necessary actions to carry out the purpose and intent of this resolution.” Councilmember Jason Lee moved the item, seconded by Mariela Ponce.
In a second unanimous vote, the Council approved Resolutions 2025-06-03-1608-01 through 1608-06, confirming budgets and levies for six industrial drainage basin districts. These include the Western Pacific, Charter Way, Arch Road, Airport Gateway, Stockton Airport, and North Newcastle districts.
Mary Elizabeth, a member of the public, raised concerns during the public hearing, urging the Council to reconsider outdated flood planning standards. “The 2022-2023 storm exceeded the 10-year recurrence interval,” she said, referring to climate data that hasn’t been updated since the 1950s. “You need to be looking at where we went wrong, where were there problems, and have those documented.”
She also voiced alarm over future development projects like the South Stockton Commerce Center. “Paving over farmland creates a lot of impervious surface and runoff,” Elizabeth warned. “The city has indicated they were not going to be reevaluating that particular aspect.”
Despite concerns, the Council proceeded to confirm assessments across all zones, with officials stating that the action “has no impact on the General Fund” and that each district is fully funded through assessments limited to zone-specific use.
The City will submit the assessments to San Joaquin County for inclusion in the FY 2025-26 tax roll. Vote: Motion carried 7-0 Yes: Christina Fugazi, Michael Blower, Brando Villapudua, Michele Padilla, Mariela Ponce, Mario Enríquez, and Jason Lee.
Also during the meeting amid rising concern over workforce shortages across city departments, the Stockton City Council addressed staffing vacancies and retention efforts, as required by California Assembly Bill 2561.
The bill, signed into law in 2024, mandates that public agencies provide annual reports on job vacancies, recruitment strategies, and potential barriers to hiring. While no bargaining unit exceeded the critical 20% vacancy threshold that would require additional disclosures, multiple departments remain critically understaffed.
As of April 17, 2025, the city had a total of 230 vacancies out of 1,609 budgeted positions, amounting to a 14.29% overall vacancy rate. Among bargaining units, the Trades and Maintenance unit leads with 17.72% vacancies, followed closely by SCEA (16.94%) and Operations and Maintenance (16.25%).
District 4 Councilmember Mario Enriquez sought detailed data during the hearing. “How many staff have left since January 1 to June 3, 2025?” he asked. City staff reported 68 separations.
Enriquez also inquired about leadership turnover, to which the city responded that eight department heads or deputies had left this year. He further requested a historical turnover analysis. City staff reported 263 separations in 2022 (14.99%), 210 in 2023 (11.8%), and 195 in 2024 (11.06%), showing a downward trend, though 2025’s current numbers suggest vacancies may rise again.
Vice Mayor Jason Lee called for departmental breakdowns of separations to identify possible patterns or departmental stress points.
Public commenters highlighted concerns beyond numbers. Resident Yolanda Amen voiced the need for diversity in recruitment, particularly in fire services. “I think we also need to have firefighters within our community represent what our communities look like,” she said, urging the city to consider demographics when recruiting from schools.
Union representative Jenny Hernandez of the Stockton City Employees’ Association (SCEA) offered a stern critique of the city’s increasing reliance on non-union “program specialist” roles to bypass full-time hiring hurdles.
“This is not just a public classification. It’s a problem of commitment,” Hernandez said. “The city has… created a two-tier workforce.” Hernandez noted that these part-time, at-will roles come without benefits or job protections, yet are filling roles traditionally held by union employees.
She called for a “concrete collaborative plan” to resolve these vacancies, in line with AB 2561 requirements.
The city responded with a presentation outlining ongoing efforts: online testing, streamlined onboarding, job fairs, internship revamps, and new incentives for police recruits—including $15,000 sign-on bonuses and relocation assistance.
In the past 12 months, Stockton has hired 305 full-time employees, with 21 hires in the last 30 days.
Mayor Christina Fugazi endorsed the city’s targeted efforts, saying, “Whatever’s working we need to do more… specifically just so that we can fill these vacancies.” After deliberation, the council unanimously approved the report, with a 7-0 vote. Councilmembers Fugazi, Blower, Villapudua, Padilla, Ponce, Enriquez, and Lee all voted in favor of Motion 2025-06-03-1609, accepting the City of Stockton’s Annual Workforce Vacancy, Recruitment, and Retention report as mandated by AB 2561.
And during closing remarks at the meeting, Vice Mayor Jason Lee delivered a candid and impassioned speech, describing City Hall as “the most toxic experience I’ve ever had in my entire life,” and revealing personal struggles with the political side of public office.
“I’m not enjoying the experience,” Lee said. “It’s not the people. It’s the politics of being an elected official that I do not like.”
Citing burnout and frustration with internal culture, Lee emphasized, “This building is extremely toxic… it’s very high school.” He thanked staff for their “phenomenal job” under pressure but called for accountability and cultural change.
“We need to hold staff accountable to changing the culture here at City Hall,” Lee urged.
Lee addressed recent controversy involving a complaint from Ralph White, which he said accused him of politically targeting properties. “I do not target anybody for personal political reasons,” Lee insisted.
Touching on issues from diversity to public safety, he advocated for more DEI efforts, stricter oversight on face-covering policies, and investment in crime prevention.
The council then unanimously approved his motion to initiate a formal meeting with auditing firm Moss Adams, giving them 30 days to comply before launching a Charter Section 406 investigation. The vote passed 7-0.