Lodi City Council approved a $291 million budget for the upcoming fiscal year, a plan that city leaders say “will maintain core services and invest in critical infrastructure” despite a projected five-year structural deficit.
The newly adopted budget reflects an 8.35% increase over last year’s budget, driven by rising staff costs, materials, and supplies. General Fund revenues are expected to grow modestly by 4.1%, bolstered by new rental income and higher interest earnings.
City officials credit prudent planning and strategic use of reserves with allowing the city to keep services intact in an uncertain economic climate.
“The City of Lodi is pleased to present a balanced budget with no deficits,” said Mayor Cameron Bregman in a press release. “Our Budget and Finance team has done a great job managing our resources. Because of smart planning and solid reserves, we’re in a good spot to handle an uncertain economy without cutting essential services. We’ll keep focusing on what matters most—supporting public safety, growing our local economy, and taking care of our proud community.”
Acting City Manager James Lindsay described the adoption of the budget as a careful balancing act to ensure Lodi’s ongoing financial health while responding to new challenges.
“Operating within a constrained fiscal environment, particularly within the General Fund, required deliberate reflection and thoughtful choices to ensure a balanced and responsive plan to sustain our core services,” Lindsay said. “To align our resources with current market conditions, we implemented a series of mitigations totaling $7.4 million to balance revenue assumptions and expenses.”
These mitigations include using $2.23 million from existing reserves to cover workers’ compensation and insurance liabilities, trimming departmental budget requests by nearly $1 million, and eliminating a proposed $2 million budget for a new Facility Internal Service Fund. The City also reduced a proposed $154,000 increase in the Police Department’s part-time budget.
Despite these cuts, the budget includes significant investments in critical infrastructure and long-term priorities.
Approximately $16.9 million is allocated for essential projects like water main rehabilitation, the Ham/Turner signal improvements, Ham Lane widening, new security cameras in parks, and upgrades to the city’s transit facilities. The budget also provides ongoing funding for streets, water, wastewater, and electric utility systems, as well as setting aside resources for future pension liabilities.
City officials highlighted that new revenue sources “will help support the budget”, including $560,000 in annual rental income from the new power plant on the southwest side of Lodi Lake and $1.7 million in interest income. Additionally, recently approved rate hikes for Parks, Recreation and Cultural Services facility rentals are expected to boost revenue.
During the June 4 meeting, the City Council also requested staff to explore transferring $100,000 from the Capital Surplus Fund to support local nonprofit organizations, a proposal that will be discussed in greater detail at a future meeting.
The City emphasized its “commitment to transparency and community engagement”, making the draft FY 2025-26 budget available through an interactive digital budget book. The final adopted budget will be available to the public in the coming weeks.
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