Property and sales tax receipts for the City for Manteca are exceeding budget projections.
That’s part of the good news in store for municipal leaders when the City Council meets Tuesday at 1:30 p.m. for a goal setting workshop session at the Civic Center, 1001 W. Center St.
The budget for the current fiscal year ending June 30 projected $29.8 million in revenue based on a 4 percent increase in both property and sales taxes.
The actual increase in secured property taxes will be closer to 14 percent while sales tax on Dec. 31 was 9 percent higher than at the same point in 2013.
The current budget estimated property tax receipts this year to come in at $10,350,000 and sales tax at $7,345,000. It calls for spending $30.4 million with a structured deficit of $592,940 that would be balanced with existing city reserves.
If the trend for higher sales and property tax receipts holds, the city when final accounting for the 2014-15 spending year occurs could actually have covered all of its expenses with current year revenues and not dip into reserves.
Sales and property tax account for 60 percent of the general fund budget that covers day-to-day operating costs such as police, fire, parks, streets, the library, and general government among others.
Among key financial issues facing the council as the city gears up to form a budget for the next fiscal year is public safety funding.
Police Chief Nick Obligacion and Fire Chief Kirk Waters have identified additional staffing needs. But based on current Measure M public safety tax revenues the half cent sales tax can’t support additional staffing. That’s because it has to cover five positions added via the Public Safety Endowment Fund that included restoring the gang unit. That money source — unlike the Measure M tax – is being drawn down and not replenished.
Not only is there pressure to fund additional police and firefighters with general fund receipts but also municipal staffing in other departments such as street and park maintenance.
The city is also facing increased Public Employee Retirement System payments as well as an underfunded liability for retiree costs.
Also, all employee contract agreements end on June 30 meaning salaries and benefits will be up for negotiation.
Other issues include no established policy for funding internal service funds for vehicles, general equipment, liability, and information technology or long term maintenance costs for storm drains, park irrigation wells, property/building maintenance and heating and air systems upkeep.
The council also must deal with whether to increase operating and emergency reserves, fully fund other post-employment benefits, capital improvements, and find ways to fund economic development as well as prepare for possible economic uncertainty.
