Budget Workshop
June 14, 2025
FY Budget Schedule
2 Date Description
November 5, 2024 Budget preparation meeting
November 12, 2024 Distribution of forms and instructions November 12, 2024 Department budget meeting
December 20, 2024 Personnel request submittals
January 3, 2025 Department operating budget submittals
January 10, 2025 CIP budget submittals
January 17, 2025 Public safety budget meeting
April 25, 2025 City Manager review
May 9, 2025 Distribution of draft budget to the City Council May 14, 2025 Budget Workshop
June 11, 2025 City Council Budget Adoption
July 1, 2025 Start of new fiscal year
Strategic Plan
3 • Incorporation Transition: The Council will continue managing the transition following the City's incorporation, ensuring a smooth shift in governance, services, and operational responsibilities. • Water Resources: With ongoing drought conditions in California, the Council is committed to securing reliable, high-quality water sources to ensure long-term sustainability for Mountain House residents. • Development: The Council will actively support and oversee responsible development, including mixed-use and commercial projects, to enhance convenience, economic growth, and overall quality of life.
• Public Safety: Ensuring a safe community remains a top priority. The Council will maintain sufficient public safety resources and explore innovative technologies to enhance emergency response and law enforcement efforts.
• Transportation: The Council will focus on maintaining safe, well-balanced roadways for motorists, cyclists, and pedestrians while collaborating with regional partners to expand public transportation options and alleviate congestion.
Strategic Plan (Cont’d)
4 • Council & Staff Culture: Strengthening relationships among Council members, staff, and the community is essential. The Council aims to foster clear, timely, and transparent communication to build trust and collaboration.
• Communications/Community Transparency: Enhancing public engagement and information-sharing efforts to keep residents informed and involved in decision-making processes.
• Fiscal Sustainability & Community Culture: The Council is committed to responsible financial management while preserving Mountain House's unique community character and values.
• Amenities & Quality of Life: Expanding recreational, cultural, and public amenities to support a vibrant and thriving community.
Budget Principles
5 Structurally Balanced Budget
Multi-Year Financial Projections
included in Budget Process
User Fees and Charges Set at the
Cost of Service
One-Time Resources Used Only
for One-Time Purposes
Capital Projects Fund for both
Capital and Future Operating
Costs
Best Practices for Fund Balance
and Operating Reserves
Stable Revenue Sources used to
Fund Operations
Fiscal Impact Statements for all
Staff Reports
Operating Budget Excellence Award FY - 2024/25
6 Mountain House
2025
7 Total Completed Housing Units
• 8,084 housing units are estimated to be completed by the end of FY 2024/25 • By the end of FY 2024/25, over 4,000 housing units will be over ten years old - nearly half of our housing stock
• More than half of our streets, arterials, landscaping and streetlights are over a decade old with over 25 percent over 15 years old
8 4,455 4,684
5,335
6,008
6,438
6,984
7,330 7,386 7,684
8,084
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Accepted
Improvements
9 Built Environment – FY 2025/26
• Water Treatment Plant and Tanks
• Expanded Wastewater Treatment Plant
• 11.9 million sq ft. of landscaping
• 12 parks/playgrounds
• 19/155,943 sf City buildings
• 3,150 streetlights
• 19 signalized intersections
• 198 miles of sidewalks
• 24,000 trees
• 47 miles of sound walls
• 220 lane miles of paved roadways
• 2 lift stations
• 122 miles of water mains
• 88 miles of sanitary sewer lines
• 98 miles of stormwater lines
• 2,420 catch basins
• 1,639 sanitary sewer manholes
• 480 storm drain manholes
• 3 water booster pump stations
• 3,311 water valves
• 844 fire hydrants
• 3 booster stations
• Raw water basin
10 Budget Overview
11 • Introduction
Discusses major budget impacts, City history, staff accomplishments, and personnel
• Budget summary
Provides a detail summary of all major changes in FY 2025/26 budget • Department budgets
Details individual Department spending and FY 2025/26 budget • Fund budget
Details individual Fund spending and FY 2025/26 budget • Capital improvement projects budget
Details individual CIP projects FY 2025/26 budget and future needs • Appendix
Contains resolutions, strategic plan, financial policies, debt schedules, projections, fee schedule, glossary, and index
Budget Factors and Assumptions
• 4% Cost of living increase + step increases and promotions • 4.5 additional FTE
• 2.69% CPI increase in special assessment taxes (Resolution No. 2024-34)
• Implementation of the proposed water and wastewater
rates – year 4 of 5-year rate plan
• Estimated building permits: 300 residential
• Higher of ENR (1.84%)or 2% factor increase: 2% increase used to adjust the debt service component of utility charges and CFF/TIF fees
12 District Overview
Historic Assessed Valuation
13 Historic Assessed Valuation
Fiscal
Year Secured Unsecured Total
Annual %
Change
2014-15 1,801,433,830 2,547,033 1,803,980,863 32.85%
2015-16 1,963,328,606 3,171,755 1,966,500,361 9.01%
2016-17 2,139,221,800 2,885,723 2,142,107,523 8.93%
2017-18 2,359,684,956 3,107,598 2,362,792,554 10.30%
2018-19 2,760,427,065 3,409,051 2,763,836,116 16.97%
2019-20 3,167,577,710 2,534,630 3,170,112,340 14.70%
2020-21 3,625,595,443 3,466,798 3,629,062,241 14.48%
2021-22 4,026,478,524 3,994,084 4,030,472,608 11.06%
2022-23 4,564,475,477 5,028,913 4,569,504,390 13.37%
2023-24 5,094,152,567 12,918,322 5,107,070,889 11.76%
2024-25 5,502,526,134 20,558,117 5,523,084,251 8.15%
0 1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
Moutnain House Historic Assessed Valuation
Revenues by Fund
Fund Amount
General Fund $ 13,933,693
Special Assessment Funds 17,500,901
Special Revenue Funds 3,301,700
Utility Funds 24,265,387
Restricted Funds 14,011,949
TOTAL $ 73,013,630
14 Expenditures by Fund
15 Fund Personnel
Services
Operations &
Maintenance
Capital
Outlay Debt Service Total
General Funds $2,371,836 $2,278,807 $- $- $4,650,643
Special Assessment
Funds 3,496,792 20,255,904 - - 23,752,696
Special Revenue Funds 2,123,636 2,836,049 - - 4,959,685 Utility Funds 2,201,040 9,085,409 - - 11,286,449
Restricted Funds - 250,700 - - 250,700
Debt Service - - - 26,202,207 26,202,207
Capital Projects - - 8,775,444 - 8,775,444
Total $10,193,304 $34,706,869 $8,775,444 $26,202,207 $79,877,824 Cityhood – Budget Impacts
16 New General Fund Revenues
• New Property Tax Share – $1,598,000
• Property Transfer Tax – $480,000
• Sales Tax – $85,000
• Master Restrictions
• Property Tax - $504,863
17 New Roads Revenue
• Gas Tax - $601,700
• Measure K - $600,000
18 Other Services Related Expenses
• Police Patrol
• Police Management
• School Resource Officer
• Traffic Enforcement
• Sheriff Overhead Cost
• Animal Control
19 Development Services
• Revenue
Development Fees - $2,100,000
• Expenses
Building - $1,000,000
Planning - $450,000
General Plan - $400,000
20 Revenues: Special Assessment Funds
21 Expenditures:
Roads 24%
Public Safety 43%
Parks 24%
Public Works 9%
Special Tax No. 1: Roads,
10,321,949 , 59%
Special Tax No. 2: Public Safety,
5,208,949 , 30%
Special Tax No. 3: Parks,
1,016,863 , 6%
Special Tax No. 4: Public Works,
953,140 , 5%
Special Assessment Funds
Revenues Operating
Expenditures
CIP
Expenditures Net
Special Tax No. 1: Roads $10,321,949 $5,594,656 $1,274,000 $3,453,293 Special Tax No. 2: Public Safety 5,208,949 10,324,226 - (5,115,277) Special Tax No. 3: Parks 1,016,863 5,680,402 420,000 (5,083,539) Special Tax No. 4: Public Works 953,140 2,153,412 50,000 (1,250,272) Total Special Assessment Funds $17,500,901 $23,752,696 $1,744,000 $(7,995,795) 22 • Landscaping
$700 thousand increase due to new contracts, increase in parks and roads, and ongoing tree and sidewalk maintenance
• Maintenance grounds and structures
The annual cost of aging infrastructure continues to increase Over $150 thousand is included in budget for repairs to the Townhall & Library and Fire Station No. 1
• Public Safety
$1.5 million increase due to Fire Station No. 2
$600 thousand increase in SJC Sheriff due to full year of new contracted services $125 thousand increase in the Rank contract
Special Assessment Increases
Expenditures by Fund
24 General Funds,
4,650,643 , 6%
Special Assessment Funds,
23,752,696 , 30%
Special Revenue Funds,
4,959,685 , 6%
Utility Funds,
11,286,449 , 14%
Restricted Funds,
250,700 , 0%
Debt Service,
26,202,207 , 33%
Capital Projects,
8,775,444 , 11%
Expenditures by Fund
AUDITED
ACTUAL
FY 2022/23
AUDITED
ACTUAL
FY 2023/24
PROJECTED
ACTUAL
FY 2024/25
PROPOSED
BUDGET
FY 2025/26
General Funds 2,957,838 3,614,560 4,037,789 4,650,643
Special Assessment Funds 11,872,373 14,062,544 18,241,536 23,752,696 Special Revenue Funds 845,137 1,047,187 4,597,883 4,959,685 Utility Funds 7,627,706 9,109,191 9,462,114 11,286,449
Restricted Funds 61,270 58,739 99,300 250,700
Capital Projects 3,751,003 1,717,668 5,960,000 8,775,444 Total 27,115,327 29,609,889 42,398,622 53,675,617
Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Grand Total 82,792,237 42,802,645 68,517,820 79,877,824 25 General Fund Balance & Subsidies
26 -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
General Fund - Fund Balance
9,000,000
10,000,000
11,000,000
12,000,000
13,000,000
14,000,000
15,000,000
16,000,000
17,000,000
18,000,000
19,000,000
General Fund Subsidies
Additions to Built Environment – FY 2024/25
• 0.3 million square feet of landscaping
• 6,210 sf – Fire Station No. 2
• 150 streetlights
• 24 miles of sidewalks
• 2,000 trees
• 20 lane miles of paved roadways
• 200 catch basins
• 255 sanitary sewer manholes
• 54 storm drain manholes
• 111 fire hydrants
• 1 lift station
27 ELECTED OFFICIALS
Andy Su, Mayor
Councilmembers
Bernice King Tingle Matt Disko
Ronna Green Daniel Harrison
City Attorney
Redwood Public Law
CITIZENS
OF
THE CITY OF MOUNTAIN HOUSE
City Auditor
Richardson & Company
City Clerk
City Manager
Steven Pinkerton
Legend
Elected
Board Appointed
City Manager Appointed
Contracted Services
Public Works
Director
Administrative
Services Director
Community Dev
Director
Operations and
Maintenance Building
Planning
Code Enforcement
Finance
Human Resources
Recreation
Information
Technology
Risk Management
Utility System
Operations
Law Enforcement
Fire & EMS
Library Healthy Economy, Vibrant
Infrastructure & Sustainable
Environment
Neighborhood Engagement,
Community Programming and
Neighborhood Development,
Construction Management,
Economic Development,
Transportation Management ,
Land Acquisition and
Development
Effective Responsive &
Transparent Government
Driving Performance and
Innovation, Recruitment,
Customer Service, Accessible
Technology Implementation,
Information Dissemination,
Community Outreach
Safe Neighborhoods
Utility and Infrastructure,
Maintenance and Repair,
Hazardous Materials Control,
Fire Prevention, Safety
Education, Crime Prevention
and Mapping, Patrols, Traffic
Enforcement
Deputy
City Manager
Major Contracts
FY 2024/25 FY 2025/26 Increase
San Joaquin County Sheriff $4,000,000 $4,000,000 $-
French Camp McKinley Rural Fire
Protection District 3,501,732 4,967,120 1,465,388
Inframark (Utility Services) 2,864,446 3,039,925 175,479 Brightview Landscape Services 2,921,076 Out for Bid -
29 Staff & Contracted Positions
Category Number of Positions
FY 2025/26
Administrative Department 31.7
Community Development Department 13
Public Works Department 11
Sheriff 10.5
Fire and Emergency Services 22.5
Rank Security 8
Garbage Disposal 17
Library Services 8.6
Utility Operations 16
Landscaping 26
Traffic Signal and Street Light Maintenance 6
Total 170.3
30 Personnel Changes
• FTE increase of 4.5 for a total of 55.7 positions
• New Positions:
Facility Supervisor, Senior Maintenance Worker, Accountant I, Recreation Coordinator, and half a fulltime equivalent Intern • COLAs of 4% per MOUs
• Mayor and City Councilmember salary and benefits
consistent with surrounding cities
• Pension cost is $2.2 million, Benefit cost is $1.4 million 31 With the addition of buildings constructed by developers and dedicated to the City, the scope of facility services increased and will continue to do so.
This position will manage and oversee work performed by various service providers - janitorial, electrical, HVAC and security systems, plumbing, and elevator - to ensure that City buildings will be maintained at standards that will preserve these assets and ensure operation at the highest levels of efficiency, comfort, and safety.
Personnel - Facility Manager
With the addition of improvements installed by developers and dedicated to the City and the expansion of Central Community Park, the scope of landscaping services is increasing.
This position will manage and oversee work performed by landscaping vendors to ensure that the health and appearance of landscaping will be maintained at the standards our residents expect and will preserve the value of these assets.
Personnel - Senior Maintenance Worker
With incorporation, the City became eligible for new sources of revenues and grants.
We assumed responsibility for new functions – payroll, accounts payable, and business licenses. We brought customer service for utility billing and collection in-house. We are eligible for grant opportunities that will require additional accounting and reporting as well as assurances that transactions comply with program requirements.
These changes will require additional staffing to manage the increased volume and complexity of activity and the need to evaluate internal control issues raised by these changes.
Personnel – Accountant I
The number of fields and facilities has increased and so has the demand for public use. In addition, the community has shown continued and growing interest and support of City-sponsored recreational events. A second Recreation Coordinator is needed to help manage these new levels of activity. The additional position will allow the Coordinators to focus on either rentals or programming.
We plan to fill this position when the Central Community Park improvements – tennis courts, amphitheater – are nearing completion.
Personnel – Recreation Coordinator
Development Debt
• Utility Debt
Utility Revenue Bonds – $216,279,704
General Fund Subsidies – $15,424,097
Estimated Cost of Remaining Improvements - $140 million • TIF Debt
TIF Lease Revenue Bonds – $54,736,412
Developer Notes Payable - $62,635,335
Estimated Cost of Remaining Improvements - $195 million • CFF Debt
No Debt at this time
Estimated Cost of Remaining Improvements - $162 million 36 Bonded Debt
Revenue Bonds
Series 2019A&B
Revenue Bonds
Series 2020A&B
2021 Lease
Revenue Bonds
2023 Utility
Revenue Bonds
Maturity 2041 2055 2051 2053
Interest cost 3.23% & 3.56% 3.25% & 3.44% 3.08% 4.43%
Principal
installments
$225,000 to
$2,275,000
$40,000 to
$3,340,000
$845,000 to
$2,765,000
$3,240,000 to
$6,465,000
Amount
authorized $40,000,000 $130,000,000 $62,000,000 $45,000,000 Balance
outstanding at
3/31/2025
$28,390,000 $127,625,000 $36,965,000 $42,775,000
37 General Fund Subsidies
38 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Water
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Waste
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Storm
General Fund Subsidies – $15,424,097
Capital Improvement Program
FY 2025/26 to 2029/30
39 • Mountain House is not like other older established cities with large new CIP projects.
• The developers construct the improvements that are needed and Mountain House will own, maintain and replace them
when needed.
• CIP is required for proper asset management and asset replacement.
• Each program includes different types of projects and treatments to properly and efficiently use the funds to get the most out of MH improvements.
2025-26 Capital Improvement Plan
Capital Improvement Program
FY 2025/26 to 2029/30
40 Five-year plan
Includes over $23.55 million in projects:
• $6.84 million – Transportation
• $2.33 million – Landscape & Parks
• $5.88 million – Facilities & Equipment
• $2.90 million – Public Safety
• $5.60 million – Utilities
Funding sources identified for first year projects
Future projects total $14.78 million
2025-26 Capital Improvement Plan
FY 2025-26 CIP Projects by Category
Totaling $8.775 Million
2025-26 Capital Improvement Plan 41
Highlights
CIP Projects 2025/26
42 • Arterial Landscape Improvement Program
• Pedestrian and Traffic Safety
• Bikeway Safety Improvements
• Town Hall Emergency Generator Project
• EV Charging Station Installation
• Corporation Yard Improvements & Town Hall Expansion
Project
• Playground & Park Improvement Program
• Aquifer Storage and Recovery Project
2025-26 Capital Improvement Plan
Arterial Landscape
Improvement Program
43 Current CIP Project Budget
Carry Over $401,937
CIP Budget Request 2025-26 $75,000
2025-26 Capital Improvement Plan
Pedestrian and Traffic Safety
44 Current CIP Project Budget
Carry Over $285,662
CIP Budget Request 2025-26 $475,000
• Traffic calming measures
• Customer complaint driven
• Traffic Calming Program
recommendations
2025-26 Capital Improvement Plan
Bikeway Safety Improvements
45 Current CIP Project Budget
CIP Budget Request 2025-26 $663,000
• This project improves portions of:
Great Valley Pkwy
Arturo Blvd
Main St
• Converts one vehicle lane in each
direction into a Class IV separated
bikeway
• Funded through the federal Highway
Safety Improvement Program (HSIP)
2025-26 Capital Improvement Plan
Town Hall Emergency
Generator Project
• Stationary generator – seamless, automatic
backup during outages.
• Requires permanent install, hardwiring,
and site upgrades.
• Ensures uninterrupted emergency
operations.
• Reduces vendor dependency for critical
response.
Current CIP Project Budget
Carry Over $195,000
CIP Budget Request 2025-26 $300,000
2025-26 Capital Improvement Plan
EV Charging Station Installation
• Supports fleet electrification and state ZEV
compliance mandates
• Initial installations planned for secured and
public-access parking
• Aligns with future needs at corp yard and utility
facilities
• Leverages separate $1.37M CMAQ
Current CIP Project Budget
Carry Over $50,000
CIP Budget Request 2025-26 $50,000
2025-26 Capital Improvement Plan
Corporation Yard Improvements &
Town Hall Expansion Project
• Phase 1A: Expand upstairs at Town Hall for
Finance & Admin
• Phase 1B: Expand downstairs for Sheriff &
Security
• Future Phase 2: Expand Corp Yard for
equipment & material storage
• Supports growth, improves operations,
reduces space constraints, and provides costeffective approach using City’s existing facilities
Current CIP Project Budget
Carry Over $170,000
CIP Budget Request 2025-26 $3,881,444
2025-26 Capital Improvement Plan
• Citywide program to assess, repair, and
upgrade 10 playgrounds
• Audits guide prioritized renovations based on
age, safety, and condition
• Includes minor refresh to full renovation
• Approved: Bethany Park & Pocket Park (FY
2024–25)
• Future: Questa (FY 2026–27), Altamont (FY
2027–28)
• Avoids CIP budget spikes
49 Current CIP Project Budget
Carry Over $19,646
CIP Budget Request 2025-26 $420,000
Playground & Park
Improvement Program
2025-26 Capital Improvement Plan
Aquifer Storage and Recovery Project
Drilling test wells to:
• Evaluate ground water
• Estimate capacity for storage
• Feasibility for implementation
50 Current CIP Project Budget
Carry Over $650,000
CIP Budget Request 2025-26 $1.35 million
2025-26 Capital Improvement Plan
Thank You!
Questions & Discussion