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DRAFT CITY OF STOCKTON 2026 SPHERE OF INFLUENCE PLAN/MUNICIPAL SERVICE REVIEW UPDATE FOR SUBMITTAL TO THE SAN JOAQUIN LOCAL AGENCY FORMATION COMMISSION
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Accepting the updated Draft City of Stockton 2026 Sphere of Influence Plan/Municipal Service Review Update report for submittal to the San Joaquin Local Agency Formation Commission (LAFCo) consistent with State Law; and
2. Authorizing the City Manager to file an application for submission of the Draft City of Stockton 2026 Sphere of Influence Plan/Municipal Service Review Update report with LAFCo.
It is further recommended that the City Council authorize the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
Approval of this request will allow the City Manager to file an application with the San Joaquin Local Agency Formation Commission (LAFCo) for review and consideration of the Draft City of Stockton 2026 Sphere of Influence Plan/Municipal Service Review Update (SOI/MSR Update) report. In accordance with California Government Code Section 56425, a Sphere of Influence (SOI) and Municipal Service Review (MSR) shall be reviewed, updated and considered by LAFCo every 5 years. Provided LAFCo approves Stockton’s updated SOI/MSR report, this information will be used by LAFCo in its future considerations of requests by Stockton to annex new territory into its city limits.
An SOI designates the probable physical growth boundaries and service area of the City over the next 20 years which should align with the City’s [Envision Stockton 2040] General Plan (see Attachment A - General Plan Map). The SOI boundary identified in the updated draft SOI/MSR remains unchanged since it is anticipated to accommodate the foreseeable 20 years of population growth. An MSR is required with the SOI to confirm that adequate public services (i.e. utilities, fire and police services, roadways) can be provided within the probable physical growth area.
Staff is recommending that the City Council approve the Draft SOI/MSR Update report and authorize the City Manager to file an application with LAFCO for consideration of approval.
DISCUSSION
Background
LAFCo’s role is to implement the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act), commencing with Government Code Section 56000 et. seq., consistent with local Policies, Procedures and Guidelines. The CKH Act guides LAFCo’s decisions. To carry out State policies, LAFCo has the power to conduct studies, approve or deny proposals, modify and approve boundaries, and impose mitigation measures and terms and conditions on approval of proposals. LAFCo has no direct land use authority, although some of LAFCo’s discretionary actions may indirectly affect land use.
On August 13, 2020, LAFCo approved an updated City of Stockton SOI/MSR in accordance with State Government Code Section 56430 and statutorily required to occur every 5 years. The purpose of an update to an SOI/MSR is to provide information about the services the City currently provides and anticipates providing in the future as its growth boundaries change with annexation. Further, LAFCo is required to conduct a review of municipal services provided in the entire county by designated geographic areas, and prepare a written statement of determination with respect to each of the following topics:
1. Growth and population projections for the affected area;
2. The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence;
3. Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies (including needs or deficiencies related to sewers, municipal and industrial water, and structural fire protection in any disadvantaged, unincorporated communities within or contiguous to the sphere of influence);
4. Financial ability of agencies to provide services;
5. Status of, and opportunities for, shared facilities;
6. Accountability for community service needs, including governmental structure and operational efficiencies; and
7. Any other matter affecting or related to effective or efficient service delivery, as required by Commission policy.
The update of an MSR/SOI provides LAFCo with a tool to study current and future public service conditions, and to evaluate organizational options for accommodating growth, preventing urban sprawl, and ensuring that critical services are provided efficiently. All boundary changes, such as annexations, must be consistent with a City's SOI with limited exceptions, and the report serves as the basis for making any necessary modifications to the City's Sphere.
Present Situation
The proposed SOI/MSR Update essentially consists of updates to data and statistics since the SOI growth boundary remains unchanged. The following summarizes the proposed changes:
• Population/economic projections updated per 2025 reporting completed as part of the current SJCOG RTP/SCS Update
• Past Population and Economic Trends extended from 2019 to 2024
• Housing Element policies/projects/projections updated to reflect the recently certified 2023-31 Housing Element
• Disadvantaged Unincorporated Community (DUC) vetted against updated CALAFCO DUC GIS database
• 10- and 20-year planning horizon broadened to 20-year planning period, with General Plan development projects assessed against updated Regional Transportation Plan/Sustainable Community Strategy demand
• Stormwater/flooding discussion updated to include Mossdale Tract Area EIFD and associated Mossdale Tract Area Urban Flood Risk Reduction Project
• Chapter 5 Facility/services/capacity discussions updated to reflect current organizational charts, response statistics, budgets, Urban Water Management Plans (UWMP), Groundwater Sustainability Plans (GSP), Stormwater Management Plans (SWMP), etc.
• Financial ability analysis updated per current city reporting policies, FY 2024 Stockton Annual Financial Report, and local sales tax measure revenues
• City/County Tax Sharing Agreement updated with progress specifics of new agreement
Upon receipt of the City’s application for SOI/MSR Update, LAFCO staff will review and provide comments to achieve a final draft report and schedule a public hearing for the Commission to consider for approval.
Environmental Clearance
The California Environmental Quality Act (CEQA) Guidelines Section 15183, provides that projects which are consistent with the development density established by a Community Plan, General Plan, or Zoning for which an environmental impact report (EIR) has been certified. An EIR was prepared and certified by the City Council as part of the Envision Stockton 2040 General Plan (SCH# 2017052062). The EIR document provides a programmatic review of the potential impacts associated with the implementation of the Stockton General Plan.
The approval of this SOI/MSR Update does not approve any development project. The SOI/MSR Update is required to provide consistency with changes to the Stockton General Plan. The proposed SOI/MSR Update outlines the projected development areas within the City’s SOI and anticipated services necessary for serving those areas as contemplated in the Stockton General Plan. The City is not amending the SOI and none of the services listed in the MSR will impact the analysis or conclusions of the General Plan EIR as the extent of the potential impacts and allowed density considered in the General Plan EIR. The update does not result in the possibility of creating significant or cumulative effects on the environment. Future development proposals and any requested General Plan amendments would be reviewed on a case-by-case basis for consistency with this review and the General Plan EIR.
FINANCIAL SUMMARY
The requested actions have no direct fiscal impact on the City General Fund.
Attachment A - General Plan Map