By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
Manteca: $206.2M in bank
Budget plan reduces general reserves by $3.2M
Sales tax revenues in Manteca are expected to increase slightly to $7,555,000 in the fiscal year starting July 1. - photo by HIME ROMERO/ The Bulletin
Manteca is expected to have $201,482,901 in the bank when June 30, 2011 rolls around.

That compares to $206,251,616 the city expects to have on the books in cash when the current fiscal year ends eight days from now.

Since the city has just bridged another multi-million general fund deficit - $11.4 million for the current fiscal year and $3.8 million for the fiscal year starting July 1 - what gives?

It has everything to do with conservative management of various non-general fund accounts as well as post Proposition 13 initiatives designed to make sure money collected for a specific purpose is spent for that purpose. That is why the city can’t use $191,486,069 of that money for day-to-day municipal operations such as police and fire protection, parks, street maintenance, general government, storm drains, and other needs.

The remaining $9,996,832 is available for general fund needs - sort of that is.

The city for years has carried $1,918,000 each year for emergencies. This became prudent after the 1997 flood when the city was called on to provide emergency assistance to rural residents. They were eventually reimbursed by the state for almost all of the cost but it proved to be a six-figure drain on the city. It also provides money in case something unexpected  police incidents including murder investigations and such that may require significant overtime or even a disaster including the chemical train derailment in the late 1980s.

The city will start $9,996,832 in carryover funds that will be whittled down by almost $3.2 million to $6,745,704 by June 30, 2011 to cover the deficit. That is because projected revenues are only $26,354,625 for the general fund while projected expenses are $29,405,753 for the 2010-11 fiscal year.

A general excise tax collected on construction to pay for oversizing of pipes and other needs of growth will have a balance of $4,486,746 by June 20, 2011. There will also be an estimated $36,328 left in the asset seizure reserve and $235 in the gang prevention reserve.

Income projections for the 2010-11 fiscal year general fund include:

•$7,555,000 in sales tax up from $7,160,000 this current fiscal year.

•$9,191,600 in property tax down from $9.933,500 in the current fiscal year.

•$350,000 in motel room tax up from $342,000 in the current fiscal year.

•$225,000 in interest earnings up from $190,000 in the current fiscal year.

•$1,240,000 in franchise fees for cable TV, electricity, and natural gas up from $1,229,625 in the current fiscal year.

Among the special accounts that have restricted uses and their projected balance on June 30, 2011 are:

•$8,351,790 in the public safety endowment account paid into by developers for the purpose of hiring more police and firefighters. Three police officers are currently funded from the interest generated on the money.

•$4,325,408 in Measure M half cent public safety sales tax to pay for additional police and firefighters beyond the general fund. Eleven of the city’s police officers are paid from this account. The balance represents enough money to fund those 11 positions for nearly two years at full salary and benefits.

•$1,179.067 for landscape maintenance districts. That is down just over $400,000 from the beginning balance projected for July 1.

•$9,286,840 for development fees.

•$33,674,807 in capital improvement funds including $5,145,160 in government facilities fees and $2,571,015 in park fees paid for by growth.

•$52,908,514 in enterprise accounts including $17,919,396 for sewer maintenance and operation, $10,143,957 in sewer fees used to retire growth’s portion of the debt to build the new wastewater treatment plant, $5,313,931 in solid waste, $23,849,279 in water maintenance and operations, and $6,959,554 in water fees to pay for the debt on the surface water treatment plant. All of the previously mentioned categories will have lower fund balances than they start the fiscal year with due to slowdown in growth and an increase in delinquencies on monthly bills. The golf course has a negative ending balance projected at $1,426,557.

•$79,799,675 for redevelopment including $14,971,681 for housing, $18,739,564 for debt service, $40,168,513 for capital projects, and $2,919,918 for economic development.

The City Council meets today at 3 p.m. to review the proposed municipal budget for the fiscal year starting July 1. The meeting takes place at the Civic Center, 1001 W. Center St.