CITY OF MANTECA
2022-23 PROPOSED BUDGET
BUDGET QUESTIONS/GOALS AND OBJECTIVES
No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 1 Councilmember
Breitenbucher
17 User Fee Recovery How is the user fee recovery
guaranteed?
Staff is presently working with Willdan to complete a comprehensive user fee study. This user fee study will identify and include all costs associated with providing each service.
Costs include personnel and operational costs. Personnel costs are measured to the minute in providing a service when calculating the appropriate rate. This process is the trusted method to identify and charge fees accordingly, and is thus the be way for the City to guarantee cost recovery.
2 Councilmember
Breitenbucher
17 User Fee Recovery Were accounts overlooked and
not updated?
Fees are outdated Citywide. Turnover in staffing and impacts on collecting and sharing data during COVID contributed to not making updates recently. The current user fee study will propose fees based on present costs to deliver the services. Timely updating the fees will keep fees inline with service delivery costs.
3 Councilmember
Breitenbucher
19 Development
Review
Can we charge for Fire Company
Business inspections?
Lathrop/Manteca Fire charges for
Inspections?
Charges for fire inspections are listed in the Manteca Municipal Code Section XI. Fire Prevention Fees.
4 Councilmember
Nuño
FS-1 General Fund Transient Occupancy Tax (Great
Wolf Hotel); June-Dec and 2022
Projected totals?
Because specific business sales information is confidential, staff is not providing the information here.
5 Vice Mayor Halford FS-3 Other
Government
Funds
I’d like to see the fund balances in
each of these accounts.
The Fund Balances for these funds have not been reconciled since FY20, but after meticulous projecting, all the fund balance appear to be in the black. Staff will present the fund balance reconciliation results to council as part of the Mid-Year Update. 6 Councilmember
Nuño
FS-3 Other
Government
Funds
How many carryover projects
currently?
There are 21 carryover projects in these funds currently.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 7 Vice Mayor Halford FS-4 Measure M &
Sales Tax Revenue
Measure M shows $10,242,029
anticipated Revenue. Projected
Sales tax revenue is $18,330,000.
Shouldn’t it be roughly double of
Measure M.
General fund sales tax and Measure M tax are different kinds of taxes, with different rules, and application to different transactions. The Measure M tax is applied generally to more transactions than the general fund sales tax. Specifically, Measure M is a transactions and use tax, not a sales and use tax. The primary difference between sales and use tax and transactions and use tax is the basis for the tax. Sales and use tax is point-of-sale based.
Transactions and use tax is destination-based. In many instances those are the same. For example, when purchasing gasoline at a service station, the point of sale and destination are the same. In other significant ways they are different. For example, when a resident buys a car at a dealership in Sacrament, the City will receive no general fund sales tax, but will receive 1/2% in transactions and use tax. In that example the point of sale is Sacramento (so Sacramento receives the general fund sales tax) and the destination is the home where the car is registered (so Manteca receives Measure M tax). Consequently, Measure M applies to more transactions and generates more tax than 1/2% of general sales tax.
8 Vice Mayor Halford FS-4 Measure M &
Sales Tax Revenue
Who and how much are any
subventions paid to Bass Pro,
Living Spaces? Are these
deducted from the Revenue
rather than shown as an
expenditure?
Sales tax sharing agreements apply to the 1% sales tax generated by Bass Pro, Living Spaces, etc. They do not includes Measure M tax. The sales tax sharing amounts are entered in expenditure lines rather than deducted from the revenue line. Living Spaces is $200,000. Bass Pro (Promenade Parking Lot Lease) is $350,000. 9 Vice Mayor Halford FS-5 Development
Services
Personnel costs are roughly the
same year to year, but operating
costs are roughly half. If
Engineering was pulled out
shouldn’t there be a reduction in
personnel costs?
Personnel costs in Engineering were already separated from Development Services.
Operational expenses and revenues needed to be separated, which lead to the reduction in operational costs but not personnel in Development Services. 10 Councilmember
Nuño
FS-5 Development
Services
How Many new positions are to
be added?
Staff are not recommending new positions in Development Services. Development Services did request one new position (Chief Building Official) and one reclassification (Deputy Director of Development Services to Assistant Director), but staff recommends not funding the positions until a later date.
11 Vice Mayor Halford FS-7 Streets /
Transportation
Can any of these funds be used for
additional streets workers?
The Gas Tax fund is the only transportation-related fund to which the City could add personnel. There is sufficient funding in Gast Tax to add one new employee. The other transportation-related funds in the group primarily pay for capital projects.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 12 Vice Mayor Halford FS-8 Water I’d like to see the three funds separated out, since two of the
funds are (I think) exclusively
capital for
improvements/expansion, not
operating
Staff updated the budget document Council will review on June 1st with additional lines showing the portion of the grouping attributable to each of the three funds. 13 Vice Mayor Halford FS-8 Water personnel There is a $1.4 M increase due to what?
Staff found staff that work primarily in the utility enterprise funds were not allocated to those funds as they should have been. Reallocating the customer service representatives in Finance and engineers in Engineering increaesed the costs in all utility enterprise funds.
Similarly, staff made adjustments to internal services charges to align internal costs with usage. Staff will complete a full cost allocation plan during FY 2023. 14 Councilmember
Nuño
FS-8 Water Will the lawsuit funds be moved
to FY22 or FY23?
Staff record lawsuit proceeds as they are received. City Council will then dedicate those funds to related CIP. If the funds are not spend in the year budgeted, then they will roll forward to the next year with the CIP.
15 Vice Mayor Halford FS-9 Sewer- Personnel There is a $1.3M increase due to what?
Staff found staff that work primarily in the utility enterprise funds were not allocated to those funds as they should have been. Reallocating the customer service representatives in Finance and engineers in Engineering increaesed the costs in all utility enterprise funds.
Similarly, staff made adjustments to internal services charges to align internal costs with usage. Staff will complete a full cost allocation plan during FY 2023. 16 Vice Mayor Halford FS-9 Sewer – Revenue What is the revenue source for Fund 650
Development fees are the revenue source for Fund 650.
17 Vice Mayor Halford FS-9 Sewer I’d like to see the three funds separated out, since two of the
funds are (I think) exclusively
capital for
improvements/expansion, not
operating
Staff updated the budget document Council will review on June 1st with additional lines showing the portion of the grouping attributable to each of the three funds. 18 Councilmember
Nuño
FS-10 Solid Waste How much longer (time) can a loss
be sustained without fee increase
& transfer of funds?
Solid Waste reserves are expected to be at approximately 17% of FY 2023 expense at the end of FY 2023. Policy requires 25%. Optimistically, the fund could last another three years before it has to borrow from General Fund. Conservatively, it has another year to year and a half after FY 2023.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 19 Vice Mayor Halford FS-13 LMD/CFD This shows that the LMD’s and CFS’s are operating at a significant
loss. If this is accurate why
weren’t the rate adjustments for
next year much higher than what
was in the rate studies just
approved by the council? Why is
revenue down so dramatically,
$1.1M?
Staff are in the middle of reconciling LMD and CFD accounts. Staff will present an updated budget for both at the Mid-Year Update. For now, revenues have been set to at least costs until the reconciliation is complete.
20 Vice Mayor Halford FS-14 Redevelopment What are the South Area Regional Infrastructure Improvements?
CIP 14038 (South Area Regional Infrastructure Improvements) has a total project budget of $20.8M with a current carryover balance of $2.8M. This project is for the design and construction of streets, sewer, water, and storm drainage infrastructure that serves the south areas of Manteca. Phase 1: Building Permit and PFIP fees, pre-engineering components of the FEZ and hotel site, under-grounding infrastructure including the South Sewer Trunk, 18" looped water main, and undergrounding of the South San Joaquin Irrigation District (SSJID) Drain 8. Phase 2: Eckert SAF Unit, construction of Daniels Street Improvements, revising and updating plans to conform to the Great Wolf site plan. French Camp Outlet Canal (FCOC) requirements for undergrounding a portion of the Canal. 21 Councilmember
Nuño
FS-15 City Attorney Can you show breakout of funds
coming in from other departments
to cover expenses?
Currently the City has set up the City's Legal expenses to occur in the fund where the expense belongs. For example, Police legal expenses are posted in the General Fund and Sewer legal expenses are posted in the Sewer Fund. Since the expenses are posted directly to the funds where they belong, no reimbursement is needed. 22 Councilmember
Nuño
FS-16 Legislative/ City
Clerk
Are more temp staff forecasted to
be needed in City Manager's
opinion?
City Manager's response: "No further temp staff are forecasted to be needed at this time." 23 Vice Mayor Halford FS-22 Human Resources What is driving the 30% increase in personnel costs?
The Human Resources department has two leadership staff working out of class while the City searches for a Director. As a budget practice to ensure capturing the cost of potential benefit costs as well as salary costs, staff budgets the Director position at the top step.
Additionally, there have been increases in health insurance costs. Taken together, these costs represent a significant increase from FY 2022.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 24 Vice Mayor Halford FS-22 Human Resources Please let me know what premiums increased and by how
much?
Health premiums that increased:
Anthem EPO Del Norte: + 12.95%
Anthem HMO Select: + 9.75%
HealthNet SmartCare: + 2.93%
*Kaiser Permanente: + 5.34%
*PERS Gold (was PERS Select): + 23.75%
PERS Platinum (was PERS Choice): + 12.95%
*these two are the most popular plans.
Other premiums that increased:
General Liability: + 66.71%
Workers Comp: + 16.32
Vehicle: + 29.55%
APIP: + 14.61%
Crime: + 15%
Active Shooter: + 15%
Cyber Liability: + 15%
25 Councilmember
Nuño
FS-22 Human Resources Is insurance claims & premiums by HR staff to deal with claims?
Yes, and also includes increased costs for health, workers comp, general, vehicle, cyber, and other liability premium insurances.
26 Councilmember
Nuño
FS-23 Information
Technology
Is IT equipment covered by service
contracts? Which ones?
Some IT equipment is under service contracts. Those pieces of equipment are the Audio/Visual Equipment in the Council Chambers, VXRail, hardware in our Data Center, the City’s Large Plotter Printer, and various other printers throughout the City.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 27 Councilmember
Nuño
FS-23 Information
Technology
Is Software & Licensing covered by
service contracts? Which ones?
IT has numerous licensing, hardware, and software contracts/agreements that need to be tracked. Some contracts are renewed annually, while others are renewed every three years or so. Our team is currently working on reviewing all IT contracts with the City Attorney’s Office to determine service levels, effectiveness, and whether they should be renewed or not.
Please see the general notes below regarding contracts. - We have contracts for various items. Below are some examples. o Licensing (Microsoft, Laserfiche, ESRI, etc.).
o Hardware:
• Leased large printers for most departments through Caltronics. • AV equipment in council chambers was originally set up through a CIP. • On-going configurations/programming is on an on-needed basis with the same consultant that worked on installation.
o Software:
• Some departments have specialized software of some sort. Below are some examples. • RecTrac, Telestaff, NeoGov, AutoCAD, etc.
• Some departments use modules within one shared software application. Below are some examples.
• Tyler/New World ERP (Development Services, IT, HR, and Finance) • Executime, Laserfiche, Microsoft Applications, etc. (All departments use these to some degree)
28 Vice Mayor Halford FS-24 Non Departmental What comprises this Department Non-Departmental includes the administrative expenses for sharing agreements, capital improvements, and transfers across multiple funds.
29 Vice Mayor Halford FS-26 Public Works Either at the fund level or department level I think we need
to see Enterprise Accounts broken
out separately.
Enterprise Funds are presented on pages FS-8 (Water); FS-9 (Sewer); FS-10 (Solid Waste); and FS-11 (Golf).
30 Councilmember
Nuño
FS-27 Recreation &
Community Svc
Is Director position needed in
FY23 in City Manager's opinion?
No, a departmental reorganization was approved by Council in FY22, which eliminated the Director position.
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No. Councilmember PAGE ACCOUNT QUESTION/COMMENT STAFF RESPONSE 31 Vice Mayor Halford FS-30 City Clerk What is the Temp Technician used for? Doesn’t seem to be
temporary if it’s been in two years
of budget.
PCN 419 (Temporary Holding) was not in the FY22 original budget, but was added during the budget year; position is assisting both City Clerk and City Manager's Offices as an Admin III in order to maintain levels of service when another position became vacant.
Position is scheduled to be addressed at FY23 Mid-Year. 32 Councilmember
Nuño
FS-31 City Manager Position: Homeless & Housing
Services Manager be funded
partially by Development
Services?
Yes, once an associated fee is calculated and approved by Council, funding for this position will be shared by City Manager's Office and Development Services. 33 Vice Mayor Halford General Personnel Why are we carrying positions that have not been funded for at
least two years? Wouldn’t it make
sense to eliminate the position
and add them when we can afford
it? I’m not a fan of authorizing a
position, but not funding it.
Departments have developed succession plans, which may include the authorized-but-notfunded positions. Including these positions in the budget document previews future planned operational improvements for Council and the Public. 34 Councilmember
Breitenbucher
General Process Can I pull items into and out of the
budget?
Council members will consider the budget in a public meeting. Staff will implement changes for which City Council reaches consensus during the public meeting. 35 Councilmember
Breitenbucher
General UAL Regarding some of the CalPERS
UAL accounts:
Police (PEPRA)- 125,613
Police (Classic-Tier2)- 360,983
Fire (PEPRA) 94.427
Instead of stretching those
payments out 18 years, is there a
way to pay those of early And
save on the interest?
Yes, the Ctiy is able to make additional payments at any time without a prepayment penalty. The City can designate the particular fund to which the payment should be applied. CalPERS adjusts the actuarial tables (payment schedules) in future iterations to account for any additional payments. The City pre-pays each year rather than making monthly payments. Staff have not included an additional payment while the City secures its financial footing. Staff recommends making additional payments in the future as resources are available.
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