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Manteca receiving $1.7 million less in federal COVID funds
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Manteca may be in a position to use part of its share of the $350 billion American Rescue Plan President Biden signed into law to deal with the economic fallout of the pandemic for one-time capital improvement projects.

Stephanie Beauchaine, the consultant the city hired to get its financials in order, told the City Council Tuesday the city received word  this week Manteca’s share of federal COVID-19 relief funds will end up being $13.9 million as opposed to the original estimate of $15.6 million.

Manteca will receive the funds in two payments.

That money can be used to backfill general fund revenue losses and reimburse the city for COVID-19 related expenses it incurred. Beyond that, Beauchaine said the prudent thing is to use the remaining funds for one-time expenses such as capital improvement projects.

If the city hires personnel with the money it then becomes a reoccurring expense the city would need to fund in subsequent years.

The operating budget and capital improvement plan being cobbled together for council consideration for the coming fiscal year starting July 1 will draw down municipal balances by 7 percent or $7.2 million.

That includes $1.4 million in the general fund. As such it means municipal general revenues will have taken just a $1.4 million hit when the first full fiscal year under pandemic conditions end on June 30.

The figure does not include sales and room tax losses for the 3½ months from mid-March 2020 when lockdowns were imposed and June 30, 2020.

As a result direct COVID-19 related losses and expenses incurred by the city are highly unlikely to exceed $6.9 million. If that is the case, the city may end up with $7 million to spend on one-time endeavors.

Enterprise fund balances — for wastewater, solid waste, water, and golf where revenue comes from ratepayers — will plunge 30 percent to $10.9 million.

Special revenue funds that typical represent grants and money collected for specific purposes will have an ending balance that is 3 percent lower or $700,000 less on June 30. The ending balance for internal service funds will drop 73 percent to $1.2 million.

Even with a $45 million capital improvement program proposed for next year with a good share of that coming from capitol improvement funds, the balance for the account will growth 8 percent to $41 million primarily due to growth fees that are collected.

 

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com