The proposed Manteca municipal budget for the fiscal year starting July 1 is structurally balanced from an ongoing operational perspective, has a projected $2.1 million general fund surplus, and a $44.5 million overall citywide deficit.

If that sounds contrary, or seems like creative bookkeeping, it’s not. It’s adhering to standard accounting practices.

The coming fiscal year will unleash an unprecedented $105.1 million in overall capital improvement endeavors. It requires, in part, accounting for all the costs of some projects to appear in the proposed budget year while the revenue stream is accounted for the year it comes in.

It includes $90.4 million in additional appropriations to 155 existing projects — water and sewer infrastructure, major road upgrades, replacement garbage trucks, and fire engine purchases — and $14.7 million for 68 new projects.

The $44.5 million citywide deficit is the result primarily of one-time investment in infrastructure, facilities, utilities, public safety, and other capital improvements.

Unearned revenue from set fees such as water and sewer service, existing bond proceeds and anticipated future financing proceeds are not reflected as current year operating revenues within the proposed budget.

They are expected to substantially offset the planned deficit.

Meanwhile, the major work that the budget is unleashing is allowing the city to take advantage of a softening market for construction work resulting in bids for major undertakings coming in at a lower than anticipated amounts. That, in turn, saves the city money.

The general fund — that covers day-to-day municipal operations such as police, fire, streets and parks— is projected to see revenue top $87 million.

That is up from the current budget of $80.4 million adopted on July 1, 2025.

The general fund assigned reserves — broken down by categories such as economic, capital needs and such is expected to be at $35.1 million up $100,000 from this year.

There is also $2.4 million in unassigned reserves.

Citywide, the overall budget — once sewer, water and solid waste as well as growth fee accounts, special funds, and restricted funds such as the $15 million state grant for the homeless navigation center construction that will be tapped into this year — comes to $391 million.

That’s up from $310 million in the current year.

The proposed budget will be presented to the City Council when they meet Tuesday at 6 p.m.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com