Oh hon, you've just described my belly too.
I had it after my first (the saggy, wrinkly skin), and it got worse after my 2nd. I'm a fit person, so I can hide it OK in clothes, but it really sucks to constantly feel that bulge of skin when you sit. And let's not even talk about being naked!
Bottom line, yes, surgery is the only thing that will fix it completely and permanently. There are new advances in treatments (thermage, etc...) that you can do, but the results will give 1-2 years only, and it takes 3-5 treatments to get it complete.
Lotions won't work. It's not a hydrationg problem, the skin is damaged. I've *heard* that you can exfoliate (and in theory, this would work by continuously removing the top layer of skin), but you'd have to do it for a LONG time before you even made a dent. The damage is very far down. I tried it using a hot salt scrub for about 3 months after my 2nd child, and it didn't make a dent. I would exfoliate and then follow it with Palmer's Belly Butter. Nothing.
So, sorry to bear the bad news. But unless you can afford a tummy tuck, that's what you're stuck with. I can completely empathize. I just try to stay as lean as possible and to control my sodium intake. I've noticed that it helps to reduce the jiggle factor. But it's always going to be there. :(