Manteca is on solid footing when it comes to having financial reserves.

With a general fund of $40.1 million, the city expects to be sitting on $20 million in general fund reserves when June 30 rolls around.

Finance Director Jeri Tejeda updated the City Council last week on the anticipated balance sheets of various general fund reserves that were put in place at the direction of elected leaders.

The $20 million in general fund reserves is in addition to those connected with the city’s overall $151.9 million budget for the current fiscal year that covers enterprise funds such as solid waste, water, golf, and wastewater as well as restricted funds for roads, and fees collected on growth for specific purposes. The general fund is for day to day operations such as public safety as well as parks and street maintenance.

The various general fund reserve accounts, their purpose and estimated balance as of June 30 are as follows:

Fiscal stability ($12,073,987): The cap is set at 30 percent of general fund operating expenses. It is used for one-time use to meet cash flow needs, closing short-term revenue and expenditure gaps, to cover costs related to natural disasters or emergencies, and to reduce liability.

Pension stabilization ($2,012,331): The cap is set at 3 percent of operating expenses. the reserve was established to take advantage of opportunities to reduce pension liability.

Economic development ($1,503,156): Residual property tax from the shutting down of the redevelopment agency that generates $1.3 million a year. The reserve has a cap of $2.5 million. The reserve was established to promote development of job creation, downtown revitalization, citywide marketing, and other strategies to stimulate the local economy. Any amount over $2.5 million is transferred at the end of the fiscal year to undesignated reserves to be spent on one-time expenditures.

Public facilities oversizing ($1,508,825): A business license tax charged on building permits for new residential construction with the intent of oversizing main sewer, lines to accommodate future government to avoid having to go back and replace main lines with larger pipes. Fifty percent goes to other capital improvement projects related specifically for oversizing public facilities to handle growth. That said the account was taped by a previous council during the recession to avoid city employee layoffs.

Capital facilities ($1,207,399): It is capped at 3 percent of operating expenditures or $1.5 million. Intend for repairs only to city owned or operated buildings such as roofs and heating/air systems as well as parks, irrigation wells, and Americans with Disabilities Act improvements.

Technology reserve ($1,207,399): It is capped at 3 percent of operating expenditures or $1.5 million. It is intended to be used for major technology needs such as software replacement, virtual storage upgrades, and fiber optic deployment.

Unassigned reserves ($15,154): Funds not assigned to a budgeted item or reserves.

Among the other reserves in the overall budgets:

Enterprise funds such as golf, sewer, water, and solid waste have a reserve equal to 90 days of working capital or 35 percent of operating expense.

The half cent public safety tax collected to augment police officers and firefighters has a reserve equivalent to 50 percent of operating expenditures or $3,330,225 with an unassigned fund balance of $853,514.

The city’s self-insurance fund has a 50 percent reserve of $2,131,665 and an unassigned fund balance of $1.147, 444.

The public safety endowment fund collected on homes in Del Webb at Woodbridge and Union Ranch will have a balance of $1,969,384 as of June 30. The fund covers the cost of four freighters. It will be depleted in 2022.

The government building facilities fee (collected on new growth) is expected to have a fund balance of $15,018,984 on June 30.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com