The City of Manteca is on a roll.
Sales tax receipts are up 10 percent to $8.8 million and are projected to reach $11.3 million in the next 12 months.
Property tax receipts are up 9 percent to $12.3 million are projected to reach $12.7 million in the next 12 months
Motel room tax receipts are up 14 percent to $908,000 and are projected to reach $999,000 in the next 12 months.
Overall general fund revenue is expected to be high enough in the next fiscal year starting July 1 to underwrite a spending plan for day-to-day services of $35,331,915. That represents a 5.2 percent increase over the current fiscal year budget of $33,571,826. Once all municipal spending such as the enterprise accounts covering water, sewer and garbage as well as restricted and capital improvement funds are factored in, the overall proposed budget for next fiscal year is $161,899,802.
It is against that backdrop that the city council is conducting a budget workshop today at 2 p.m. at the Civic Center, 1001 W. Center St.
And while the city has managed to established reserves aimed at cushioning against another economic downtown as well as replacement of costly items and for emergencies, Manteca still faces significant financial challenges.
The California Public Employees Retirement System has made it clear that cities will be required to increase contributions in the coming years to keep the retirement fund solvent.
The sustainability of the Development Services Fund covering economic development and community development costs that has been an issue since the loss of redevelopment agency funding.
The sustainability of the solid waste fund that saw its last garbage rate increase in May 2004. Although it is an enterprise account if a shortfall does occur the burden will fall on the general fund to cover it. Increased costs are hitting the fund due to a jump un employee retirement and the need to meet a state mandate to replace existing refuse trucks with cleaning burning vehicles due to air quality issues.
Long term storm drain and maintenance costs that lost a dedicated funding source in 2001 when the city’s user utility tax was dropped due to questions whether it was legally adopted.
Aging infrastructure at many of the city’s 70 plus parks.
Deferred street maintenance.
The spending plan calls for just under a third of needed revenue to operate the city to come from property taxes that are estimated to come to $12.7 million for the upcoming fiscal year. Behind that is sales tax at $11.3 million followed by franchise fees (cable TV, electricity sales and natural gas sales) at $1.5 million and motel room tax at $999,000.