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ADOPT A RESOLUTION AUTHORIZING A CARRY-FORWARD APPROPRIATION OF $1.0 MILLION FROM FY 2024-25 FIRE DEPARTMENT YEAR-END SAVINGS FOR USE IN FY 2025-26.
recommended action
RECOMMENDATION
It is recommended that City Council adopt a Resolution authorizing a carry-forward appropriation of $1.0 million from FY 2024-25 Fire Department year-end savings for use in FY 2025-26.
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Summary
The FY 2024-25 Fire Department budget projects approximately $2.6 million in salary savings. Of this amount, $600,000 was authorized by the City Council to support enhanced paramedic compensation. Staff is now requesting authorization to carry forward $1.0 million of the remaining year-end savings into FY 2025-26 to support additional Fire Department needs.
DISCUSSION
Background
On December 16, 2025, the City Council approved Resolution No. 2025-12-16-1211, authorizing a $600,000 carry-forward appropriation of Fire Department FY 2024-25 salary savings to fund enhanced paramedic compensation as part of a targeted recruitment and retention strategy.
The Fire Department has identified additional needs that cannot be accommodated within the FY 2025-26 adopted budget and is requesting authorization to carry forward an additional $1.0 million of remaining FY 2024-25 year-end savings for use in FY 2025-26.
Present Situation
The Fire Department completed a comprehensive review of its operating budget and identified several needs not funded in the FY 2025-26 adopted budget.
Staff have identified an opportunity to improve employee injury recovery and return-to-work outcomes through the use of a third-party program focused on early intervention and active case management. These services include prompt access to medical evaluation, coordinated care management, and structured return-to-work planning. Earlier medical engagement and active case management are intended to reduce the duration of lost-time claims, limit overtime backfill costs, and mitigate longer-term workers’ compensation exposure, while supporting employees' safe and efficient return to work and improving employee morale.
Staff also identified a need to enhance wildfire response in and around Stockton by augmenting our current Type 1 fire engine fleet with one (1) Type 3 wildland fire engine. Type 3 engines are specifically designed for wildland and wildland-urban interface incidents and are equipped with four-wheel drive, higher ground clearance, and a pump-and-tank configuration suitable for off-road and remote operations. This apparatus would be cross-staffed with a Type 1 engine at one of the thirteen (13) fire stations, requiring no additional staffing. In addition, this type of apparatus is routinely requested for statewide mutual aid and Cal OES deployments because it can access terrain and fire conditions that larger structural engines cannot. When deployed on qualifying Cal OES assignments, the City receives reimbursement at an established daily apparatus rental rate, plus an administrative fee, enabling cost recovery during deployments.
The review also identified ongoing recruitment, retention, and leadership development needs that the adopted budget does not fully address. These needs include strengthening supervisory capacity and improving succession planning to support long-term workforce stability. As part of the same review, staff confirmed compensation compaction between the Division Chief and Deputy Chief classifications, where salary compression over time has reduced differentiation in responsibility, complexity, and accountability. Addressing this compaction is intended to support executive retention and maintain appropriate internal alignment within the Department’s leadership structure.
FINANCIAL SUMMARY
Approval of this action will increase the FY 2025-26 Fire Department budget by $1.0 million through a carry-forward appropriation of FY 2024-25 year-end savings. These funds were previously budgeted but not expended in FY 2024-25. As a result, while the FY 2025-26 budget increases by $1.0 million, total expenditures across FY 2024-25 and FY 2025-26 are expected to remain consistent with the aggregate budget levels previously approved by the City Council.
The Department will make its best effort to apply these funds in a manner consistent with the purposes described in this report. However, to the extent specific items or initiatives cannot be executed due to availability, timing, or other implementation constraints, any remaining funds are to be considered as supportive of the department’s general operations, and may be utilized by the Fire Chief, with approval from the City Manager, in accordance with standard City policies.
This action approves an appropriation only and does not authorize any specific purchase or contract. Any related procurements will be conducted in accordance with the City’s established procurement rules and procedures.