Agenda packet — Mountain House City Council, June 11, 2025 (part 1 of 5)

AGENDA
Wednesday, June 11, 2025
Regular City Council Meeting 7:00 PM

ADMINISTRATION LOCATION CITY COUNCIL
STEVEN J.

PINKERTON
City Manager

JOHN BAKKER
City Attorney

MARGARET

WIMBERLY
City Clerk

JOINT MEETING OF THE

MOUNTAIN HOUSE CITY COUNCIL

MOUNTAIN HOUSE COMMUNITY SERVICES

DISTRICT BOARD OF DIRECTORS
Mountain House Town Hall Board Chambers
251 East Main Street
Mountain House, CA 95391

ANDY SU
Mayor

BERNICE KING
TINGLE
Vice Mayor
Council Members

MATT DISKO

RONNA GREEN

DANIEL HARRISON

HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:

In Person:

Public Comment forms should be submitted prior to the time the item is announced. Completion of the form is voluntary. People that do not fill out the form but still wish to speak will be allowed to do so. Public Comments are limited to three (3) minutes per person. Please turn off all electronic devices. Please, no personal attacks.
•
E-mail:

Public Comments can be submitted via email to [email protected]. Comments that are received at least two hours prior to the start of the meeting will be distributed to the Mayor and City Council Members.
•
To Watch or Listen Only:

The public may view the meeting via one-way video feed on the City's agendas page or City's YouTube Account at www.youtube.com/@cityofmountainhouse. •

CALL TO ORDER AND ROLL CALL

MOMENT OF SILENCE

PLEDGE OF ALLEGIANCE

1. 2.

3. APPROVAL OF AGENDA

PUBLIC COMMENTS
Public comments are limited to three minutes per person, the public is invited to make comments on items of public interest that are within the City Council’s subject matter jurisdiction and that are not listed on the current agenda.

Under the Brown Act, Items brought up during public comment that are not on the agenda cannot be discussed or acted upon by the Council, however, items necessitating a response will be included in the next City Manager update and posted on the City’s website.

RECOGNITION, ANNOUNCEMENTS, OR PRESENTATIONS
Youth Action Committee Update
Lammersville Unified School District Update
A Proclamation Recognizing the Juneteenth Event scheduled for Saturday, June 21, 2025
A Proclamation proclaiming July as National Parks and Recreation Month
A Proclamation proclaiming June as Internal Health Awareness Month A Presentation on Valley Link

CITY COUNCIL CONSENT ITEMS
Consent agenda items (which may include Ordinances, Resolutions, Informational Reports, Approval Actions and Motions) will be acted upon by the City Council at one time without discussion. Any Council Member or member of the public may request removal of an item from the consent calendar for discussion.

Minutes of May 27, 2025 Page 6

JOINT CITY COUNCIL/MHCSD POLICY AND ACTION ITEMS
Approve a Decrease in the Fiscal Year 2024-2025 Appropriations Limit and Establish the 2025-2026 Appropriations Limit and Adopt the Fiscal Year 2025-2026 Budget.

Page 11 ends

Staff recommends that the Mountain House Community Services District (District) Board of Directors (Board) hold a public hearing and adopt the following package:

4. 5.

6. 6.1

6.2 6.3

6.4 6.5

6.6 7.

7.1 8.

8.1 Joint City Council/MHCSD Meeting Agenda Wednesday, June 11, 2025
Mountain House Page 2 of 5

1. Resolution approving the proposed District fiscal year 2025/26 Operating Budget.

2. Resolution establishing the appropriation limits for the District (Proposition 4).

Adopt the Fiscal Year 2025/26 Budget and Related Actions Page 19 Staff recommends that the City Council hold a public hearing and adopt the following items:

Resolution approving the proposed fiscal year 2025-2026 Operating and Capital Improvement Budget.

1. 2. Resolution establishing the appropriation limit for the City (Proposition 4).

3. Resolution establishing schedule of fees for services.

4. Certification of Assessments to the San Joaquin County Auditor/Controller.

5. Resolution approving updated Personnel Policies and Procedures Manual.

6. Resolution approving updated Financial Management Policy Manual.

7. Resolution approving job description for Facility Manager.

Award Various Landscape Maintenance Service Contracts Page 529 Staff recommends that the City Council award and authorize the City Manager to execute the following seven contracts for City Landscape Maintenance Services, for a combined total of $12,182,394.10, as solicited through the respective Requests for Proposals (RFPs), and authorize the City Manager to execute an optional three-year extension to each contract, at the original rates and terms.

BrightView Landscape Services, Inc. for one contract totaling $2,154,898.67:
• North Parks District (RFP No. MH2501) for five years, through June 30, 2030.

Gachina Landscape Management, Inc. for five contracts totaling $7,896,345.19:

South Parks District (RFP No. MH2502) for $2,366,256.94 for five years, through June 30, 2030.
•
North-South Arterials District (RFP No. MH2504) for $4,144,035.71 for four years, through June 30, 2029.
•

8.2 8.3
Joint City Council/MHCSD Meeting Agenda Wednesday, June 11, 2025
Mountain House Page 3 of 5
Downtown and Government Buildings District (RFP No. MH2505) for $294,672.03 for three years, through June 30, 2028.
•
Weed Abatement District (RFP No. MH2506) for $803,550.74 for three years, through June 30, 2028.
•
Community Facilities District (RFP No. MH2507) for $287,829.77 for three years, through June 30, 2028.
•
Odyssey Landscaping, Inc. for one contract totaling $2,131,150.24:
• East-West Arterials (RFP No. MH2503) for four years, through June 30, 2029.

It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to implement the purpose and intent of these contracts.

City Logo Design – Final Revisions and Selection Page 1157 Staff recommends that the City Council review and approve one of the final logo design concepts to serve as the official public-facing brand for the City of Mountain House.

CITY COUNCIL DISCUSSION ITEMS
City Manager’s Update Page 1162
City Manager’s Update Page 1176

FUTURE AGENDA ITEMS
Report of Future Agenda Items and Long-Range Calendar Page 1189

COUNCIL COMMENTS

CITY ATTORNEY COMMENTS

CITY MANAGER COMMENTS

ADJOURNMENT
If you need disability-related modification or accommodation in order to participate in this meeting, please contact the City Clerk at (209) 831-5039 or at [email protected] at least 48 hours prior to the start of the meeting.

Government Code Section §54954.2 (a). Materials related to an item on this Agenda submitted to

8.4 9.

9.1 9.1.1

10. 10.1

11. 12.

13. 14.

Joint City Council/MHCSD Meeting Agenda Wednesday, June 11, 2025
Mountain House Page 4 of 5
the City Council after distribution of the agenda packet are available for public inspection in Town Hall located at 251 East Main Street during normal business hours.

POSTING STATEMENT: On June 6, 2025, a true and correct copy of this agenda was posted on the City Hall Bulletin Board, outside Mountain House Town Hall, 251 East Main Street, Mountain House, CA 95391 and at our website www.mountainhouseca.gov.

Joint City Council/MHCSD Meeting Agenda Wednesday, June 11, 2025
Mountain House Page 5 of 5

CITY COUNCIL

MINUTES
Tuesday, May 27, 2025

Present:

Andy Su, Mayor
Bernice King Tingle, Vice Mayor
Matt Disko, Council Member
Daniel Harrison, Council Member
Ronna Green, Council Member

1. CALL TO ORDER AND ROLL CALL
Mayor Su called the meeting to order at 7:00 PM

2. MOMENT OF SILENCE
Mayor Su held a moment of silence.

3. PLEDGE OF ALLEGIANCE
Vice Mayor Tingle led the pledge of allegiance.

4. APPROVAL OF AGENDA
Motion: Vice Mayor Tingle
Second: Council Member Disko
It was moved/seconded to approve the agenda as presented.

Vote: Carried (5 to 0) with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

5. PUBLIC COMMENTS
None

6. RECOGNITION, ANNOUNCEMENTS, OR PRESENTATIONS

6.1 Presentation and updates from Assembly Member Rhodesia Ransom Melissa Santos, staff person for Assembly Member Ransom, provided a presentation to the City Council on updates from Assembly Member Rhodesia Ransom, including legislative updates and their internship program.

6.2 Proclamation Proclaiming Fentanyl Awareness Month
The Mayor and City Council presented a Proclamation to Danny and Rhonda Manning.

Rhonda Manning spoke regarding her son, Major Manning and thanked Council for the issuance of the proclamation.

6.3 Presentation to DARE Participants
Steve Abercrombie spoke regarding the DARE Program and the City Council presented certificates to the participants from Hansen School.

Item 7.1

6.4 Presentation from the Stockton San Joaquin County Public Library regarding Mountain House Branch Library
Heather Bailey, Librarian Mountain House Library, spoke regarding events at the Library including the Summer Reading Program and STEM programs.

6.5 Presentation on the Monthly Report from Rank Security and Mountain House Police Services provided by San Joaquin County Sheriff’s Department Chris Roikola, RANK, provided an update to the City Council.

Seargeant Johnson, Mountain House Police Services, provided an udpate to the City Council.

6.6 Presentation on the Monthly Report from Mountain House Fire Department and Emergency Medical Services (EMS) presented by French Camp Fire Department Marty Cornilsen, Fire Chief, provided an update to the City Council.

7. CITY COUNCIL CONSENT ITEMS
Motion: Council Member Disko
Second: Council Member Harrison
To approve the Consent Calendar Items 7.1 through 7.6, as recommended by staff.

Vote: Carried (5 to 0) with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

7.1 Minutes of the May 14, 2025, Special City Council Meetings and the Regular City Council Meeting
Motion: Council Member Disko
Second: Council Member Harrison
Approve the minutes of May 14, 2025.

Vote: Carried with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

7.2 List of Recent Contracts signed under the City Manager spending authority.

7.3 A Resolution Approving the Final Map for South Mountain House Community Park (Tract 4278).

Motion: Council Member Disko
Second: Council Member Harrison
Adopt resolution 2025-30:

1. Approving the Final Map (Tract No. 4278) for South Mountain House Community Park; and

2. Accepting on behalf of the public all offers of dedication and record the Final Map Item 7.1
(Tract No. 4278) of South Mountain House Community Park Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolutions.

Vote: Carried with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

7.4 San Joaquin Local Agency Formation Commission Municipal Services Review and Sphere of Influence Plan 2025
Motion: Council Member Disko
Second: Council Member Harrison
Adopt Resolution 2025-32 approving the Municipal Services Review and Sphere ofInfluence Plan 2025 and direct staff to submit it to the San Joaquin Local Agency Formation Commission.

Vote: Carried with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

7.5 Amendment No. 1 to Agreement A-2425-17 with MoreThanTalk LLC Motion: Council Member Disko
Second: Council Member Harrison
Vote: Carried with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

7.6 Preliminary Approval of the Annual Engineer’s Reports for the Maintenance of the Improvements in Consolidated Landscape Maintenance Assessment Districts for Fiscal Year 2025/2026
Motion: Council Member Disko
Second: Council Member Harrison
Adopted Resolution 2025-27, 2025-28, and 2025-29, approving:

1. Preliminarily approve the Annual Engineer’s Reports for the maintenance of improvements in the consolidated Landscape Maintenance Assessment District (LMAD) Numbers 2008-1, 2016, and 2019 for the fiscal year 2025/2026 prepared by MacKay & Somps, dated 05/14/2025.

2. Declare Council’s intent to levy and collect assessments as outlined in the attached Annual Engineer’s Reports.

3. Schedule a public hearing for Wednesday, June 25, 2025, at 7:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers at 251 E. Main Street, Mountain House, California, to consider final approval of the Annual Engineer’s Reports and the levy and collection of assessments for the 2025/2026 fiscal year.

4. Authorize and direct the City Clerk to publish a hearing in a newspaper of local circulation, at least ten (10) days prior to the hearing date, in accordance with the Landscaping and Lighting Act of 1972 (California Streets & Highways Code § 22553).

Item 7.1
Vote: Carried with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

8. CITY COUNCIL POLICY AND ACTION ITEMS

8.1 Approval of Final City Logo Design
Amanda Durbin, Communications Officer, presented the staff report.

Mayor Andy Su opened the public comment period, there being no one else wishing to speak it was closed.

The City Council directed staff to bring up additional mockups and changes to logo mockup 2 as presented in the agenda packet to be brought back at the Council meeting of June 11, 2025.

8.2 City Council Policy and Procedures.

Steven Pinkerton, City Manager, presented the staff report to the City Council.

Motion: Council Member Harrison
Second: Vice Mayor Tingle
To adopt Resolution 2025-31 approving the City Council Policies and Procedures with the addition the City Manager hiring an outside facilitator to assist with Council Member orientation.

Vote: Carried (5 to 0) with Council Members Disco, Green, Harrison, Tingle and Mayor Su in favor.

9. CITY COUNCIL DISCUSSION ITEMS

9.1 City Manager Update
Steven Pinkerton, City Manager, presented the City Manager Update to the City Council.

10. FUTURE AGENDA ITEMS

10.1 Report of Future Agenda Items and Long-Range Calendar Steven Pinkerton, City Manager, provided an overview of upcoming agenda items and public meetings.

11. COUNCIL COMMENTS
Council Member Harrison thanked staff for their assistance during the One Voice Trip.

Item 7.1
Vice Mayor Tingle spoke regarding the value of the One Voice trip and thanked staff.

Council Member Green thanked staff for listening to feedback from the City Council.

Council Member Disko thanked Council and staff for their time spent on the One Voice trip.

12. CITY ATTORNEY COMMENTS
Raquel Grande introduced herself to the City Council as a member of the City Attorney team.

13. CITY MANAGER COMMENTS
None.

14. ADJOURNMENT
Mayor Su adjourned the meeting at 8:53
Item 7.1
TITLE: Approve a Decrease in the Fiscal Year 2024-2025 Appropriations Limit and Establish the 2025-2026 Appropriations Limit and Adopt the Fiscal Year 2025- 2026 Budget.

MEETING DATE: June 11, 2025
PREPARED BY: Thomas Retchless, Finance Director

RECOMMENDATION
Staff recommends that the Mountain House Community Services District (District) Board of Directors (Board) hold a public hearing and adopt the following package:

1. Resolution approving the proposed District fiscal year 2025/26 Operating Budget.

2. Resolution establishing the appropriation limits for the District (Proposition 4).

DISCUSSION

1. The proposed operating budget (Exhibit 1 to Attachment A) provides the appropriation of expenditures necessary to fulfill the obligation of the Master Plan and will serve as the annual report required by the Master Plan and the budget process.

2. In accordance with Proposition 4, approved by California voters in November, 1979, the Board is required each year to establish the appropriation limit for the succeeding fiscal year.

On July 1, 2024, the District transferred most of the responsibility for providing services it had previously provided to the City of Mountain House. Section 3(a) of article XIII B of the California Constitution provides that if “the financial responsibility of providing services is transferred . . . from one entity of government to another,” the appropriations limit for the year of the transfer is decreased for transferor entity (the District) and increased for transferee entity (the City) by a “reasonable amount” as mutually agreed by the entities. The District and City have agreed on the reasonable amount of $61,734,404.

The appropriations limit is calculated by using the following formula:

A. Population percentage change x price increase (or decrease) factor = ratio of change B. Ratio of change (from [A] above) x fiscal year 2022-2023 spending limit = fiscal year 2024-2025 spending limit
The District’s price factor is based on the per capita personal income price factor provided by the California Department of Finance. Based on the calculation above, the District’s appropriations limit for fiscal year 2025/26 is $1.047 million, which is well above the General Funds’ revenues subject to the limit of $491,610.

Item 8.1

FISCAL IMPACT
The adoption of the budget will provide legal authority to make expenditures during fiscal year 2025/26.

STRATEGIC PLAN
This proposed action will help the District achieve the Board of Directors’ goal of providing oversight of the District’s financial condition and ensuring continued enforcement of the community’s Master Restrictions.

ACTION FOLLOWING CITY COUNCIL APPROVAL
The General Manager will oversee the revenues and expenditures and implement the specific budget objectives during the next fiscal year.

ATTACHMENTS
A. Resolution 2025-01 Approving the Fiscal Year 2025/26 Operating Budget Exhibit 1 – Proposed Operating Budget
B. Resolution 2025-02 - Establishing Proposition 4 Appropriation Limit C. District Counsel
Item 8.1
Master Restrictions Fund

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Property tax - - 484,456 491,610
Total - - 484,456 491,610

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Charges for services - - 484,456 491,610
Total Operations and Maintenance - - 484,456 491,610
Total Expenditures - - 484,456 491,610
Mountain House Community Services District
FY2025/26 Operating Budget
Item 8.1
POLICY AND ACTION ITEM X.X

ATTACHMENT A

BEFORE THE BOARD OF THE DIRECTORS OF THE

MOUNTAIN HOUSE COMMUNITY SERVICES DISTRICT

RESOLUTION
R-2025-XX
RESOLUTION ADOPTING THE FISCAL YEAR 2025/26

OPERATING BUDGET OF THE

MOUNTAIN HOUSE COMMUNITY SERVICES DISTRICT
WHEREAS, the Board of Directors of the Mountain House Community Services District has reviewed and approved the proposed Operating Budget for fiscal year 2025/26; and WHEREAS, the Board desires to enter into agreements for equipment, construction projects and services that will be funded by the Fiscal Year 2025/26 budget.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors does hereby adopt the proposed Mountain House Community Services District Fiscal Year 2025/26 Operating Budget (Exhibit 1).

Item 8.1
POLICY AND ACTION ITEM X.X

ATTACHMENT A
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the Board of Directors of the Mountain House Community Services District, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
ANDY SU, President
Mountain House Community Services District,
County of San Joaquin,
State of California
ATTEST:

District Clerk
Mountain House Community Services District
County of San Joaquin,
State of California
By: _____________________________
Item 8.1
POLICY AND ACTION ITEM X.X

ATTACHMENT B

BEFORE THE BOARD OF DIRECTORS OF THE

MOUNTAIN HOUSE COMMUNITY SERVICES DISTRICT

RESOLUTION
R-2025-XX
RESOLUTION DECREASING THE 2024-2025 APPROPRIATIONS LIMIT AND TRANSFERRING IT TO THE CITY

OF MOUNTAIN HOUSE IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION AND ESTABLISHING PROPOSITION 4 FISCAL YEAR 2025-2026 APPROPRIATION LIMITS FOR THE MOUNTAIN

HOUSE COMMUNITY SERVICES DISTRICT
WHEREAS, Article XIII B was added to the California Constitution by way of initiative approved by the voters at a State election held in November 1979, said initiative providing for appropriation limits for State and local governments and being known as “Proposition 4,” and WHEREAS, the Legislature in 1980 enacted Chapter 1205 which implemented the provisions of Article XIII B; and
WHEREAS, Section 7910 of the Government Code requires the governing body of each local jurisdiction, including counties and special districts, to establish appropriation limits required by Article XIII B of the California Constitution; and
WHEREAS, section 3(a) of Article XIII B of the California Constitution provides that when “financial responsibility of providing services is transferred” from one agency to another, such as through an incorporation or otherwise, “the appropriations limit of the transferee entity shall be increased by such reasonable amount” as the agencies “mutually agree”; and WHEREAS, in conjunction with the July 1, 2024 incorporation of the City of Mountain House, nearly all of the financial responsibility for providing services formerly provided by the District were transferred to the City, and the City and the District have agreed on a reasonable amount of an increase in the City’s appropriations limit and a decrease in the District’s appropriations limit; and WHEREAS, June 21, 2024, they announced that the documentation used, or to be used, in the determination of the appropriation limits was available to the public and said documentation has, in fact, been available since that date; and WHEREAS, at said time and place members of the public were given opportunity to comment on, or object to, the appropriation limits.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Mountain House Community Services District, determines pursuant to Government Code Section 7910, as follows:

After reaching a mutual agreement with the City of Mountain House pursuant to section 3(a) of article XIII B of the California Constitution, decreases its 2024-2025 appropriations limit by $61,734,404 to effect an increase in the City of Mountain House’s appropriations limit by the same amount; and Item 8.1
POLICY AND ACTION ITEM X.X

ATTACHMENT B
The Board elects to use the change in California per capita income as the cost of living adjustment and the annual population change for San Joaquin County as the population adjustment factor; and
That the appropriation limit for the Mountain House Community Services District for the fiscal year 2025-2026 is $1,046,995; and
BE IT FURTHER RESOLVED that the office of the Auditor-Controller is ordered to retain the documents supporting the appropriation limits herein established until further order of this Board.

Item 8.1
POLICY AND ACTION ITEM X.X

ATTACHMENT B
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the Board of Directors of the Mountain House Community Services District, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
ANDY SU, President
Mountain House Community Services District,
County of San Joaquin,
State of California
ATTEST:

District Clerk
Mountain House Community Services District
County of San Joaquin,
State of California
By: _____________________________
Item 8.1
TITLE: Adopt the Fiscal Year 2025/26 Budget and Related Actions MEETING DATE: June 11, 2025
PREPARED BY: Thomas Retchless, Finance Director

RECOMMENDATION
Staff recommends that the City Council hold a public hearing and adopt the following items:

1. Resolution approving the proposed fiscal year 2025-2026 Operating and Capital Improvement Budget.

2. Resolution establishing the appropriation limit for the City (Proposition 4).

3. Resolution establishing schedule of fees for services.

4. Certification of Assessments to the San Joaquin County Auditor/Controller.

5. Resolution approving updated Personnel Policies and Procedures Manual.

6. Resolution approving updated Financial Management Policy Manual.

7. Resolution approving job description for Facility Manager.

BACKGROUND
On April 9, 2025, the City Council approved the two-year Strategic Plan for fiscal years 2025/26 and 2026/27. The proposed budget is designed to align with the Strategic Plan framework and goals and is organized around nine key strategic priorities:

1. Incorporation Transition
 Update municipal and land use codes
 Expand office space and implement updated Council policies  Launch General Plan update

2. Water Resources
 Secure emergency water supply agreement
 Seek grant funding for water supply projects
 Advance the aquifer storage and recovery well project

3. Development
 Draft economic development strategy
 Plan future community and aquatic centers
 Support diverse housing options and update the Master Plan

4. Public Safety
 Finalize Fire Station 2 plan and staffing
 Improve security camera network and traffic safety initiatives  Strengthen engagement with the Sheriff’s Department and the community

5. Transportation
 Implement transit services
 Draft MOU with Valley Link for the Mountain House station  Pursue federal and state transportation funding

6. Fiscal Sustainability and Community Culture
Item 8.2
 Complete an asset management plan
 Update 10-year cash flow
 Update Recreation Master Plan
 Review utility rates
 Establish customer service metrics

7. Communications and Transparency
 Establish a Crisis Communications Plan
 Enhance digital accessibility and improve the city website  Expand resident engagement tools such as GoGov

8. Council and Staff Culture
 Conduct monthly Council–City Manager check-ins
 Host quarterly training and Strategic Plan goal reviews

9. Amenities and Quality of Life
 Set key performance indicators for facility rentals and parks  Strengthen partnerships with Lammersville Unified School District  Review code enforcement policies
The City Council conducted a study session on the proposed fiscal year 2025/26 Operating and Capital Improvement Budget on May 14, 2025. Staff discussed the proposed revenues and expenditures for the coming year and the resulting changes in reserves.

The proposed budget has been prepared with the following principles in mind:
• 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 will be funded for both one-time capital and ongoing operating costs • Best practices for fund balance and operating reserves • Stable revenue sources used to fund operations
• Fiscal impact statements for all staff reports

DISCUSSION

APPROVAL OF PROPOSED BUDGET
The fiscal year 2025/26 Operating and Capital Improvement Budget will be used as both a spending plan and a means to communicate the priorities and goals of the City. The proposed operating and capital improvement budget provides the appropriation of expenditures necessary to fulfill the obligation of the Master Plan and will serve as the annual report required by the Master Plan and the budget process.

BUDGET HIGHLIGHTS:

Assumptions used in the preparation of the budget:
• 4% Cost of living increase + step increases and promotions • 4.5 additional full-time equivalent positions
• 2.69% CPI increase in special assessment taxes (Resolution No. 2024-34) Item 8.2
• 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 Community Facilities and Traffic Impact fees New revenues the City will receive due to incorporation:
• Additional property tax share – $1,598,000
• Property transfer tax – $480,000
• Sales tax – $85,000
• Gas tax - $601,700
• Measure K - $600,000
• Building fees - $2,100,000
New revenues will be offset by fiscal year 2024/25 infrastructure additions requiring maintenance and management services:
• 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

APPROPRIATIONS LIMIT
In accordance with Proposition 4, approved by California voters in November, 1979, the City Council is required each year to establish the appropriation limit for the succeeding fiscal year. The appropriation limit is calculated by using the following formula:

A. Population percentage change X price increase (or decrease) factor = ratio of change B. Ratio of change (from [A] above) X fiscal year 2024/25 spending limit = fiscal year 2025/26 spending limit
Before incorporation, the Mountain House Community Services District was financially responsible for providing services. After incorporation on July 1, 2024, nearly all of the financial responsibility for providing services was transferred to the City. As a result, the City and the District agreed on the transfer of appropriations from the District to the City in the amount of $61,734,404.

Based on the calculation above, the appropriations limit for fiscal year 2025/26 is $68,752,656, which is well above the General Funds’ revenues subject to the limit of $34,323,683.

ESTABLISHING FEES FOR SERVICES
The City’s Fee Schedule is attached for approval (Attachment C). Fees include charges for development and various utility-related fees. Both development and utility-related fees are billed on a time and Item 8.2
materials basis for staff time and pass-through consultant charges. Some fees will be charged at fixed rates, such as replacement of equipment or finance charges.

CERTIFICATION OF ASSESSMENTS
The Certification of Assessments is required by the San Joaquin County Auditor/Controller. The Certification states that the City has complied that the District has complied with the requirements of Articles XIIIC and XIIID of the California State Constitution (Proposition 218) and will indemnify San Joaquin County against judgment if it is determined that the City is not in compliance with those Articles.

UPDATED PERSONNEL POLICIES AND PROCEDURES MANUAL
The City develops and maintains policies in order to ensure that functions are performed efficiently and procedures are in place to address issues as they arise. On July 1, the City Council approved amended and restated Personnel Policies and Procedures, based on policies previously adopted by the Board of Directors of the Mountain House Community Services District. Staff is proposing the following updates to be adopted by the City Council:
 Section 7 (Salary Administration), Paragraph B (Salary Steps): Clarifies authority of City Manager to adjust salaries of employees
 Section 9 (Leave), Paragraph D (Sick Leave): Eliminates references to sick leave conversion that had been granted by San Joaquin County
 Section 9 (Leave), Paragraph E (Bereavement Leave): Clarifies authorized use of bereavement leave  Section 14 (Equal Employment Opportunity Program): Designates Administrative Services Director as the City’s Equal Employment Coordinator

UPDATED FINANCIAL MANAGEMENT MANUAL
The City develops and maintains policies in order to ensure that functions are performed efficiently and procedures are in place to address issues as they arise. On July 1, the City Council approved amended and restated Financial Management Manual, based on policies previously adopted by the Board of Directors of the Mountain House Community Services District. Staff is proposing the following updates to be adopted by the City Council:
 Section 200 (Purchasing): Clarifications and guidance related City Manager signature authority, prohibition of splitting of purchases, and requirements for competitive bidding  Section 260 (Accounts Payable and Cash Disbursements): Revised instructions due to bringing this function in-house
 Section 310 (Travel Policy): Incorporates use of IRS sanctioned per diem rates to simplify employee reporting and reimbursement
 Section 330 (Payroll System and Processing): Revised instructions due to bringing this function inhouse

FTE ADDITIONS AND JOB DESCRIPTION
The proposed fiscal year 2025/26 budget includes the addition of 4 full-time equivalent positions: Facility Manager, Senior Maintenance Worker, Accountant I, and Recreation Coordinator. Part-time Intern positions are also being requested. The Intern positions will equal half of one full-time equivalent position (.5 FTE). These positions are required to meet the needs of the increasing number of facilities and amenities, more complex reporting and compliance requirements, and community demand for recreational programming and facility rentals. The total number positions added since the adoption of the Item 8.2
fiscal year 2024/25 budget is 8.5 full-time equivalent positions. During the fiscal year 2024/25 five fulltime equivalent positions were approved, and one full-time equivalent position was removed.

Senior Maintenance Worker
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.

Accountant I
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.

Recreation Coordinator
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 proposed job description for Facility Manager is presented as Exhibit 1 to Attachment G.

FISCAL IMPACT
The adoption of the budget will provide legal authority to make expenditures during fiscal year 2025/26.

STRATEGIC PLAN
This proposed action will help the City achieve the following goals:
 Provide oversight of the City’s financial condition
 Prepare a staffing development plan, including triggers at which new employees will be required to fulfill overall strategic objectives
 Update personnel policy as needed
 Implement the 5 Year Capital Improvements Program
 Improve the capital improvement process by coordinating an asset management system with departmental needs and maintain a 10-25 year projected growth plan Item 8.2
 Establish a 25-year plan to track growth and to project equipment facility and labor needs

ACTION FOLLOWING CITY COUNCIL APPROVAL
 The City Manager will oversee the revenues and expenditures and implement the specific budget objectives during the next fiscal year. The Mayor will sign the Resolutions and Certification of Assessment. Staff will provide the Auditor/Controller’s office with a listing of the parcels within the City affected by the special taxes. The fees and fines will be charged appropriately to those individuals requiring the services of the City.

ATTACHMENTS
A. Resolution 2025-33 Approving Fiscal Year 2025/26 Operating and Capital Improvement Budget Exhibit 1 – City of Mountain House Fiscal Year 2025/26 Operating and Capital Improvement Budget
B. Resolution 2025-34 Appropriation Limit
C. Resolution 2025-35 2025/26 Establishing Schedule of Fees for Services Exhibit 1 – Fees for Services
D. Certification of Assessments to the San Joaquin County Auditor/Controller E. Resolution 2025-36 Approving Updated Personnel Policies and Procedures Manual Exhibit 1 –Updated Personnel Polices and Procedures Manual – Redline Version F. Resolution 2025-37 Approving Updated Financial Management Manual Exhibit 1 –Updated Financial Management Manual – Redline Version G. Resolution 2025-38 Approving Job Descriptions for Facility Manager Exhibit 1 – Facility Manager Job Description
Item 8.2
POLICY AND ACTION ITEM 8.1

ATTACHMENT A

BEFORE THE CITY COUNCIL OF THE

CITY OF MOUNTAIN HOUSE

RESOLUTION
R-2025-XX

RESOLUTION ADOPTING THE CITY OF MOUNTAIN HOUSE
PROPOSED FISCAL YEAR 2025/26

OPERATING AND CAPITAL IMPROVEMENT BUDGET
WHEREAS, the City Council of the City of Mountain House has reviewed and approved the proposed Operating and Capital Improvement Budget for fiscal year 2025/26; and WHEREAS, the City Council desires to enter into agreements for equipment, construction projects and services that will be funded by the Fiscal Year 2025/26 budget.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby adopt the proposed City of Mountain House Fiscal Year 2025/26 Operating and Capital Improvement Budget (Exhibit 1).

Item 8.2
POLICY AND ACTION ITEM 8.1

ATTACHMENT A
PASSED AND ADOPTED this 11th day of June, 2025 by the following vote of the City Council of the City of Mountain House, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________

ANDY SU, MAYOR
City of Mountain House,
County of San Joaquin,
State of California
ATTEST:

City Clerk
City of Mountain House
County of San Joaquin,
State of California
By: _____________________________
Item 8.2
City of Mountain House
FY2025/26
Operating Budget
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
i
Table of Contents
INTRODUCTION............................................................................................................. 1 ELECTED OFFICIALS & CITY MANAGER ............................................................................ 2 BUDGET AWARDS........................................................................................................... 3 CITY MANAGER’S BUDGET MESSAGE............................................................................... 5 THE CITY..................................................................................................................... 17 PERSONNEL................................................................................................................. 32 BUDGET GUIDE............................................................................................................ 38 BUDGET SUMMARY.................................................................................................... 49 BUDGETED REVENUES ................................................................................................. 50 GENERAL FUND REVENUES .......................................................................................... 51 SPECIAL ASSESSMENT FUND REVENUES........................................................................ 53 SPECIAL REVENUE FUND REVENUES ............................................................................. 54 ENTERPRISE FUND REVENUES ...................................................................................... 55 RESTRICTED FUND REVENUES...................................................................................... 56 BUDGETED EXPENDITURES ........................................................................................... 57 FUND BALANCE SUMMARY ............................................................................................ 59 DEBT SERVICE REVENUE & PAYMENTS.......................................................................... 61 SUMMARY OF TRANSFERS ............................................................................................ 64 FY 2025/26 BUDGETED TRANSFERS............................................................................. 65 FY 2025/26 EXPENDITURES BY FUND ........................................................................... 66 FY 2025/26 EXPENDITURES BY DEPARTMENT................................................................ 67 PROPOSITION 4 ANALYSIS ............................................................................................ 68 DEPARTMENT BUDGETS........................................................................................... 69 EXPENDITURES BY DEPARTMENT & DIVISION.................................................................. 70 ADMINISTRATION DEPARTMENT ..................................................................................... 71 ADMINISTRATION DEPARTMENT ..................................................................................... 75 ADMINISTRATION DEPARTMENT ..................................................................................... 76 LEGAL SERVICE DIVISION.............................................................................................. 79 CITY COUNCIL DIVISION................................................................................................ 80 HUMAN RESOURCE DIVISION......................................................................................... 81 RISK MANAGEMENT DIVISION ........................................................................................ 82 FINANCE DIVISION ........................................................................................................ 83 CUSTOMER SERVICE DIVISION ...................................................................................... 85 INFORMATION TECHNOLOGY DIVISION............................................................................ 86 PUBLIC WORKS DEPARTMENT....................................................................................... 87 PUBLIC WORKS DEPARTMENT....................................................................................... 91 REGULATORY & COMPLIANCE DIVISION.......................................................................... 95 IMPACT FEE PROGRAMS DIVISION ................................................................................. 96 OPERATIONS & MAINTENANCE DIVISION ........................................................................ 97 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
ii
COMMUNITY DEVELOPMENT DEPARTMENT ..................................................................... 99 COMMUNITY DEVELOPMENT DEPARTMENT ................................................................... 103 CODE COMPLIANCE DIVISION ...................................................................................... 106 RECREATION DEPARTMENT......................................................................................... 107 RECREATION DEPARTMENT......................................................................................... 109 SERVICE DIVISION...................................................................................................... 111 LIBRARY SERVICES DIVISION....................................................................................... 116 LAW ENFORCEMENT SERVICES DIVISION...................................................................... 117 FIRE & EMS DIVISION ................................................................................................ 118 EMERGENCY PREPAREDNESS SERVICES DIVISION ........................................................ 119 DEBT SERVICE DIVISION ............................................................................................. 120 FUND BUDGETS........................................................................................................ 121 EXPENDITURES BY FUND ............................................................................................ 122 GENERAL FUND ......................................................................................................... 123 GENERAL FUND ......................................................................................................... 124 TRAFFIC IMPACT FEE FUND......................................................................................... 125 COMMUNITY FACILITIES FEE FUND .............................................................................. 126 SPECIAL TAX #1 - ROADS FUND .................................................................................. 127 SPECIAL TAX # 2 - PUBLIC SAFETY FUND ..................................................................... 128 SPECIAL TAX # 3 – PARKS FUND ................................................................................. 129 SPECIAL TAX # 4 - PUBLIC WORKS FUND ..................................................................... 131 DEVELOPMENT SERVICES FUND .................................................................................. 132 GAS TAX FUND .......................................................................................................... 133 MEASURE K FUND...................................................................................................... 134 WATER FUND............................................................................................................. 135 WASTEWATER FUND .................................................................................................. 137 STORMWATER FUND................................................................................................... 139 LIGHTING & LANDSCAPING DISTRICT 1 FUND................................................................ 140 LIGHTING & LANDSCAPING DISTRICT 2 FUND................................................................ 141 LIGHTING & LANDSCAPING DISTRICT 3 FUND................................................................ 142 DEBT SERVICE FUND.................................................................................................. 143 CAPITAL IMPROVEMENT PROJECTS BUDGET..................................................... 144 CAPITAL PROJECTS FUND........................................................................................... 145 CIP PROJECTS BY FUNDING SOURCE .......................................................................... 146 ARTERIAL LANDSCAPE IMPROVEMENT PROGRAM .......................................................... 147 PEDESTRIAN AND TRAFFIC STUDY ............................................................................... 148 TRAFFIC CALMING PROGRAM ...................................................................................... 149 BIKE SAFETY IMPROVEMENTS ..................................................................................... 150 SAFETY IMPROVEMENTS AT CENTRAL PARKWAY........................................................... 151 TRAFFIC SIGNAL INSTALLATION ................................................................................... 152 EQUIPMENT REPLACEMENT......................................................................................... 153 TOWN HALL EMERGENCY GENERATOR ........................................................................ 154 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
iii
FLEET VEHICLES ........................................................................................................ 155 TOWN HALL & LIBRARY IMPROVEMENTS....................................................................... 156 EV CHARGING STATION.............................................................................................. 157 CITY BUILDING REPAIR PROGRAM ............................................................................... 158 PLAYGROUND & PARK IMPROVEMENT PROGRAM .......................................................... 159 DROUGHT CONTINGENCY ........................................................................................... 160 AQUIFER STORAGE AND RECOVERY PROJECT.............................................................. 161 APPENDIX.................................................................................................................. 162 2023/2024 RESOLUTIONS ADOPTING BUDGET ............................................................. 163 STRATEGIC PLAN ....................................................................................................... 173 FINANCIAL POLICIES AND PROCEDURES ....................................................................... 196 DEBT SCHEDULES...................................................................................................... 309 PROJECTIONS............................................................................................................ 319 MHCSD 2025/26 FEE SCHEDULE .............................................................................. 324 GLOSSARY ................................................................................................................ 325 INDEX........................................................................................................................ 332 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
1 Introduction
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
2 Elected Officials & City Manager
.

Steven J. Pinkerton
City Manager
Andy Su
Mayor
Daniel Harrison
Council Member
Ronna Green
Council Member
Matt Disko
Council Member
Bernice King Tingle
Vice Mayor
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
3 Budget Awards

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished Budget
Presentation Award

PRESENTED TO
City of Mountain House
California
For the Fiscal Year Beginning
July 01, 2024
Executive Director
The Government Finance Officers Association (GFOA) presented a Distinguished Budget Presentation Award to the Mountain House Community Services District, for its annual budget for fiscal year 2024/25. To receive the award, a governmental unit must publish a budget document that meets program criteria as a policy document, operations guide, financial plan, and communications device.

We believe this fiscal year 2025/26 budget document conforms to program requirements. We will be submitting it to GFOA to determine its eligibility for another award.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
4 The California Society of Municipal Finance Officers (CSMFO) presented an Operating Budget Excellence Award to the Mountain House Community Services District, for its annual for fiscal year 2024/25. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, operations guide, financial plan, and communications device.

We believe this fiscal year 2025/26 budget document conforms to program requirements. We will be submitting it to CSMFO to determine its eligibility for another award.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
5 City Manager’s Budget Message
Mr. Mayor and Council Members:

It is my pleasure to present this operating and capital improvement budget for the City of Mountain House for fiscal year 2025/26. This budget will be used both as a spending plan and a means to communicate the priorities and goals of the City. I look forward to working with you in the coming year to address the challenges and opportunities facing our City.

STRATEGIC PLAN
On April 9, 2025, the City Council approved the two-year Strategic Plan for fiscal years 2025/26 and 2026/27. The Strategic Plan outlines Mountain House’s long-term vision and strategic priorities for the next two fiscal years. It provides a framework to guide budget development, policy decisions, and department-level planning while ensuring transparency, innovation, and collaboration across all levels of city government. This Plan is integrated into the budget for fiscal year 2025/26 and has been used as a framework for department work plans and resource allocations. The Plan is presented in the Appendix to this budget document.

INCORPORATION
When the community was formed in 1996, it was anticipated that Mountain House would transition from a community services district to a city when it was financially feasible. After several years of significant growth and favorable findings of fiscal sustainability, the District petitioned the Local Agency Formation Commission for incorporation.

On March 5, 2024, voters overwhelmingly supported the incorporation of Mountain House and incorporation became effective on July 1, 2024. Becoming a city provided opportunities for new revenues, increased policing powers, transferred land use and planning decisions to local control, and opened opportunities to participate in regional agencies and grant programs. Incorporation achieved a long-standing goal of the community.

Staff will continue working with San Joaquin County and the State of California to transfer revenues and negotiate the cost of services to be provided since incorporation.

In addition, we will continue working with the San Joaquin County Community Development Department to ensure a smooth transition for planning and development services.

Incorporation also brought several administrative processes in-house, including payroll, employee benefit administration, and business licenses.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
6 CREATION OF COMMUNITY FACILITIES DISTRICT
On February 14, 2024, the Board of Directors of the Mountain House Community Services District, then serving as the legislative body for Community Facilities District No. 2024-1 (CFD), adopted a Resolution to form the CFD under the Mello-Roos Community Facilities Act. The CFD was established to expedite funding and construction of public infrastructure in future neighborhoods, ensuring timely delivery of parks and other facilities before full neighborhood buildout. It also facilitates the early funding of regional facilities and enables more efficient and cost-effective maintenance compared to existing Landscape Maintenance Districts. The CFD provides a more secure financing model by establishing a revenue stream secured solely by a designated special tax. Following a noticed public hearing, on April 10, 2024, the Board adopted a Resolution of Formation, officially establishing the CFD and setting a bonded indebtedness limit of $74.2 million.

Upon incorporation of Mountain House in July 2024, the CFD officially became a community facilities district of the City with the City Council as its legislative body. It is important to note that CFDs will be considered only in undeveloped areas and only with the consent of property owners. It is also important to note that the City does not bear direct liability for the financial risk of the bonds to be issued for the CFD. Bonds are payable solely from and secured solely by special taxes levied on properties within the CFD. Accordingly, bondholder recourse for repayment is limited to the special tax revenue generated by those properties. This structure ensures that the financial obligations related to the CFD limit risk to the City’s General Fund.

The first series of bonds were issued in March 2025 in the amount of $40.13 million

INCREASED PACE OF GROWTH AND DEVELOPMENT
The major economic impact facing the City, other than incorporation, is the rapid rate of commercial and residential development occurring within the City. New businesses have been opened or are under development at the Safeway shopping center and throughout the community. College Park infrastructure is funded and under construction. The Aviara
Apartments are completed
and units leased; the Vida
Apartments are now under
construction. Construction
of homes north of Byron
Road and in the College
Park area are progressing
through the design and
permit stages and model
homes have been
constructed. Building
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
7 permits have been issued for slightly over half of the authorized total of 16,091.

In addition to the developments described above, the major expansion of the wastewater treatment plant was completed, Fire Station 2 has been completed, and Phase 2 of Central Community Park is underway.

The City became responsible for land use and planning decisions along with construction and building inspections upon incorporation. The level and pace of development and operations and maintenance activity requires additional staff and consultant services to review, evaluate, and manage growth as it relates to infrastructure development and construction, operations and maintenance activities, regulatory permits, and plan review services.

Our goal is to facilitate developments while protecting the interests of the community by ensuring compliance with the City’s Master Plan and design standards and specifications. As we embark on this wave of economic activity, we will rise to meet the following challenges:
• We will issue over 450 building permits during fiscal year 2024/25 and it is estimated that the City will issue in excess of 300 residential building permits during fiscal year 2025/26.
• New growth will include more multi-family residential as well as commercial developments, which will present additional challenges unique to these types of development.
• Growth has triggered the expansion of the water plant, stormwater system, neighborhood and community parks, and other public facilities. • As the population of the community increases, staff will observe traffic patterns and recommend effective, affordable, and proven safety improvements that comply with state and county regulations.
• The City’s parks require play equipment inspection, repair, and replacement. Play surfaces for various sports activities require monitoring and management to ensure safe and reliable use for the community. As a result of the growth in development, more parks will be constructed and will require comparable oversight. • As the City accepts dedicated infrastructure, such as roads, sidewalks, parks, landscaped areas, sound walls, street lights, traffic signals, and facilities, costs of monitoring and maintenance will increase. Such increases have been estimated for fiscal year 2025/26, but may need to be adjusted based on the pace of development. • Staff is evaluating policies and processes that will need to be developed and enhanced to support increased development activity.
• Staff will also be closely monitoring economic conditions to identify any budget requirements that may need to be adjusted during the fiscal year..

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
8 PLANNING FOR SUSTAINABILITY
As noted above, the City is experiencing rapid growth. Developer-constructed facilities required as a condition of development will be dedicated to the City. At that time, the City will become responsible for maintenance and repair. At the same time, we recognize that existing infrastructure assets are aging and now require increased maintenance, repair, and possible replacement. Staff is reviewing proposed community projects in the existing Community Facilities Fee program. We are discussing “rightsizing” future facilities with the community and developers.

Infrastructure and facilities managed - such as roads, sidewalks, parks, and trees - and on-going services provided - such as public safety, planning and development services, code enforcement, and recreation - will result in on-going and increasing costs to the City. Our goal is to balance the desire and expectation for diverse, aesthetically pleasing amenities and responsive services with our ability to financially sustain them now and into the future.

The Capital Improvement Projects table shows a five-year plan for capital improvements starting in fiscal year 2025/26. This plan represents a continued phased approach toward reducing a backlog of maintenance, repair, and renovation. Deferring capital improvements results in higher maintenance and opportunity costs in future years and could require total replacement at much higher costs. The City will use both reserve funds and increased revenues to fund future capital improvements.

The Capital Improvement Projects table shows a five-year plan for capital improvements starting in fiscal year 2025/26.

The projects included in the Five-Year Capital Improvement Plan will help the City achieve goals included in the Strategic Plan, such as:
• Maintaining a Pavement Management Condition Index of 80 or above • Sidewalk project that will repair sidewalk damage caused by trees • Poplar tree removal and replacement
• Playground and park improvement program
• Ensuring an alternate water supply
Projects PRO 2025/26 EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 Total Roads 1,874,000 1,650,000 1,650,000 1,550,000 1,550,000 8,274,000 Vehicle & Equipment 4,831,444 450,000 450,000 150,000 150,000 6,031,444 Public Works 50,000 430,000 410,000 400,000 400,000 1,690,000 Parks 420,000 400,000 380,000 380,000 380,000 1,960,000 Water System 1,600,000 3,250,000 250,000 250,000 250,000 5,600,000 TOTAL 8,775,444 6,180,000 3,140,000 2,730,000 2,730,000 23,555,444 Capital Improvement Projects
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
9 SELF-SUPPORTING UTILITY SYSTEMS
The 2025/26 budget anticipates the enterprise funds - water, wastewater, and stormwater - will be operationally self-sufficient. The fiscal year 2025/26 budget shows transfers into the Water Fund to cover future capital improvement projects. While this practice is legal, reliance on the General Fund to pay for enterprise business practices can and will impact other business practices of the City.

In general, the use of revenues from water and sewer fees is limited to the purpose for which the fee is imposed. The amount charged is limited to the cost of providing the service, including overhead. Revenues from utility fees are deposited in enterprise funds dedicated to pay the capital and operating expenses of the enterprise or program with the goal of providing the services at “cost of service,” that is, revenues equal expenses. For a new community, the challenge is to keep rates affordable while minimizing the impact on other municipal services. The subsidies to date have been tracked and will be repaid to the General Fund when there is a sufficient ratepayer base.

In order to address an unsustainable subsidy of the water and sewer enterprises, we conducted a rate study during fiscal year 2021/2022 to determine the appropriate rates needed to make the
enterprises selfsupporting. The goal
was to make the
utilities self-sustaining
for all maintenance
and operations
expenditures. In
March 2022, the
Board approved
recommendations of a
water and wastewater
rate study and
authorized issuance of Proposition 218 notices to property owners and ratepayers. The process was conducted in compliance with Proposition 218, the “Right to Vote on Taxes Act.” The City is entering the fourth year of the adopted plan and will increase rates in fiscal year 2025/26 based on the study.

During the first year of the adopted plan, the Bryon Bethany Irrigation District unexpectedly increased its charges for untreated water by 29% per acre foot. This unexpected rate increase, along with other escalating costs encountered in operating the water and wastewater plants and the need for rate-supported capital improvements, has accelerated the need for a reevaluation of utility rates. Staff is recommending that another evaluation of utility rates be initiated before June 30, 2025. This review is needed not only to ensure that utilities will be financially sustainable but also to provide (1,000,000)
1,000,000
3,000,000
5,000,000
7,000,000
9,000,000
EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 Water & Wastewater Operations Revenue
Water Operations Wastewater Operations
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
10 assurances to utility bond holders and rating agencies that the City is fiscally responsible and responsive.

DIVERSIFICATION OF OUR WATER SUPPLY
Another challenge we face is the new norm of droughts in California. Whether through natural dry year fluctuations, or regulatory drought imposed by the State Water Resources Control Board, water supply in the state is being squeezed, putting communities and agriculture
at risk. Future drought
uncertainty, combined with
increased State-mandated
reductions in water usage
and enforcement, is
expected to impact the City
in the future on multiple
levels:
• Loss in rate revenues
• Increasing cost of water
• Threat to the growth of the community through a building moratorium • Potential ban on outdoor irrigation risking the City’s $150 million plus and growing investment in landscaping
Additional restrictions would be particularly difficult because the Mountain House community was designed from its inception with low water use landscaping and watersaving construction in mind. As part of the fiscal year 2015/16 mid-year budget review, the Board approved an appropriation in the amount of $250,000 to establish a drought contingency fund. There are $1.8 million in drought contingency funds as of June 30, 2025. The fiscal year 2025/26 budget includes an additional $250,000 that will increase the drought contingency funds to $2.1 million. The City’s goal is to accumulate over $2 million in drought contingency funds in the event that the City will need to make emergency water supply purchases.

We have considered a range of options to diversify our water supply. The options were evaluated based on probability of success, time frame for completion, cooperation needed from other agencies, purchase of properties and acquisition of easements, permitting requirements, cost, and grant opportunities. The most viable short-term solutions include updates to our riparian rights and wastewater permits, purchase of water from South San Joaquin Irrigation District, storage facilities at City plants, and an aquifer storage and recovery well.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
11 Over the years to come, staff will continue to budget and study the feasibility of developing alternate sources of water to ensure a safe, reliable water supply into the future.

BUDGET OVERVIEW
The General Fund and Special Assessment Funds are projected to have a combined reserve balance of $58.3 million on June 30, 2026, a decrease of $3.1 million from the projected beginning balance on June 30, 2025. The General Fund will only have to subsidize the Water Fund’s capital projects as the Water Fund and other Enterprise Funds’ operations are now self-supporting. The Roads Fund subsidizes the other Special Assessment Funds’ operations and capital projects. As build-out occurs, the goal will be to attain the cost of service for these programs. For fiscal year 2025/26, the Road Fund subsidy for operations and capital projects totals $12.7 million, compared to $9.7 million for the fiscal year 2024/25 budget.

The General Fund revenues are projected to increase by $125 thousand, or 1% over fiscal year 2024/25. The majority of the increase is attributable to an increase in property tax revenues. The property values in the City continue to increase and more homes are added every year increasing the tax roll. Sales of new homes and resale of existing housing units results in higher assessed values and increases in property taxes.

There will be a General Fund subsidies to the Water Enterprise Funds in fiscal year 2025/26. The amount of the subsidy will be $1.5 million to the Water Enterprise Fund.

The subsidy is due to the funding of capital projects. Utility revenues for operations and maintenance will increase by $510 thousand, or 4.5% over fiscal year 2024/25.

However, a portion of that increase is offset by increased operating expenses, due to growth and increasing costs, including professional services, chemical and power costs, permits and fees, training and
certifications, and plant repair
and maintenance.

While the City is similar to
surrounding municipalities it is
also vastly different. The City is
a relatively new community that
was formed in 1996 and began
constructing homes in 2003. As
a new community, a large
portion of its revenue comes
from special taxes. The special
taxes are used to fund roads,
public safety, parks, and public
work projects. The fiscal year
2025/26 budget includes a
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 Tax Revenue
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
12 2.69% increase of the special assessment tax rates. The Public Safety Fund and Parks Fund continue to be highly subsidized by the Road Fund. For fiscal year 2025/26 budget, special tax assessments total $17.2 million. Of that total, 59% is collected by the Road Fund, 30% by the Public Safety Fund, 6% by the Parks Fund, and 5% by the Public Works Fund. However, the amounts collected are spent for operations as follows:
43% for public safety, 24% for parks, 24% for roads, and 9% for public works.

As of June 30, 2023, over 7,800 building permits will have been issued. We expect to issue in excess of 300 building permits during fiscal year 2025/26. As the number of residential and commercial units increases, so will the required level of police, fire and emergency medical services. The number of units required to fund public safety expenditures will depend on the pace of development and rate of increase in the special assessment taxes. In the meantime, funds intended to provide for road maintenance will continue to be diverted to serve other purposes.

PROJECTIONS
The City is expecting revenue increases for the foreseeable future. The increases are primarily due to increases in residential units, utility rates, and inflationary adjustments.

The projected revenues are expected to increase by $19.5 million over the next five years. All the funds show an increase in revenues.

The following increases are expected in revenues over the next five years:
- General Fund a $3.9 million increase (28%)
- Special Assessment Funds a $6 million increase (34%)
- Special Revenue Funds a $.5 million increase (16%)
- Enterprise Funds a $9.2 million increase (38%)
- Restricted Funds a $1.7 million increase (12%)
The increase in General Fund revenues is primarily due to the expected increase in property taxes. The expected increase in property taxes is due to an increase in residential units and residential valuation. The City is projecting it will add roughly 1,500 residential units over the next five years.

The increase in Special Assessment Funds revenue is due to an increase in residential and commercial units. Special taxes are applied to individual residential property tax bills. The increase in residential and commercial units will increase the special tax revenue.

Funds EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 General Funds 14,732,039 15,471,530 16,232,879 17,016,695 17,823,601 Special Assessment Funds 18,609,156 19,764,078 20,967,384 22,220,851 23,526,313 Special Revenue Funds 3,334,146 3,451,468 3,573,049 3,699,049 3,829,633 Enterprise Funds 25,931,288 27,681,722 29,521,212 31,454,518 33,486,655 Restricted Funds 14,014,547 14,414,853 14,827,169 15,251,854 15,689,280 Total Funds 76,621,176 80,783,651 85,121,693 89,642,967 94,355,482 Projected Revenues
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
13 The large increases in Enterprise Funds are due to the increase in pledged facility utility fees. The pledged facility fees are annually increased by the mandatory inflation adjustment Engineering
New Record (ENR)
construction cost index
that was recorded in
February of that year or
2%, whichever is
higher. The pledged
facility fees increased
by $4.8 million over the
five-year period. This
increase ensures that
the City is able to fund
utility infrastructure
improvements. The
Enterprise Funds also
increased due to utility rate increases and residential growth. The City is increasing the utility rates based on a rate study completed in fiscal year 2021/22. The increase in utility rates enables the utility enterprises to become self-sufficient.

The increase in Restricted Funds revenue is due to an increase in restricted fund rates.

The Traffic Impact Fee and Community Impact Fee are increased annually by the ENR.

This increase ensures that the City is able to fund roads, parks, and building infrastructure improvements.

The City is projecting expenditures to increase by $10.2 million over the next five years.

All funds show an increase in expenditure except for the Capital Projects Funds. The amount of estimated capital improvement projects is projected to decrease over the five-year period.

The following increases and decreases are expected in expenditures over the next five years:
- General Fund: $1 million increase (22%)
- Special Assessment Funds: $5.8 million increase (25%) 0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 Projected Revenues by Fund
General Funds Special Assessment Funds
Special Revenue Funds Enterprise Funds
Restricted Funds
Funds EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 General Funds 4,836,669 5,030,135 5,231,341 5,440,595 5,658,218 Special Assessment Funds 24,814,697 25,925,892 27,088,650 28,305,463 29,578,944 Special Revenue Funds 5,038,658 5,232,171 5,433,208 5,642,063 5,859,044 Enterprise Funds 11,737,907 12,207,423 12,695,720 13,203,549 13,731,691 Restricted Funds 252,016 262,097 272,581 283,484 294,823 Debt Service 26,703,452 28,021,875 29,395,370 30,826,056 32,316,127 Capital Projects 6,180,000 3,140,000 2,730,000 2,730,000 2,811,900 Total Funds 79,563,399 79,819,593 82,846,870 86,431,210 90,250,747 Projected Expenditures
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
14 - Special Revenue Funds: $.9 million increase (18%)
- Enterprise Funds: $2.4 million increase (22%)
- Restricted Funds: $44 thousand increase (18%)
- Debt Service Funds: $6.1 million decrease (23%)
- Capital Projects Fund: $6 million decrease (-68%)
The majority of the increase to the General Funds’ expenditures comes from an increase in personnel cost. Previous experience shows that as the community population grows; service demands increase as well. Consequently, personnel costs will increase in the coming years, and the City will require additional personnel.

The increase in Special Assessment Funds expenditures is due to increases in labor, utilities, and
maintenance
costs. The costs
are expected to
increase based
on contracts and
past trends.

The increase in
Enterprise Funds
expenditures is
due to personnel
costs, utilities,
and
maintenance costs. The maintenance cost is expected to increase as the City’s infrastructure ages.

The Debt Service Funds increase is due to the increase in development projects. The Capital Projects decrease is due to a large number of capital projects expected in the fiscal years 2025/26.

STAFFING REQUESTS
Staff is requesting four new positions in the fiscal year 2025/26 budget – Facility Manager, Senior Maintenance Worker, Accountant I, and Recreation Coordinator.

These positions are required to meet the needs of the increasing number of facilities and amenities, more complex reporting and compliance requirements, and community demand for recreational programming and facility rentals.

Facility Manager
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 0 10,000,000
20,000,000
30,000,000
EST 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 Projected Expenditures by Fund
General Funds Special Assessment Funds
Special Revenue Funds Enterprise Funds
Restricted Funds Debt Service
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
15 maintained at standards that will preserve these assets and ensure operation at the highest levels of efficiency, comfort, and safety.

Accountant I
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.

Recreation Coordinator
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.

GRANT OPPORTUNITIES
In accordance with the strategic plan, staff will continue to pursue grant and low-cost loan opportunities. Staff submitted an application for a Highway Safety Improvement Program Grant to the California Department of Transportation (Caltrans) in April, 2022 for the maximum allowed amount of $249,930 to convert one travel lane in each direction on Great Valley Parkway from Byron Road to Grant Line Road; Arturo Boulevard from Great Valley Parkway to Central Parkway; and Main Street from Great Valley Parkway to Central Parkway to accommodate the implementation of Class IV bikeway facility. The application was approved by Caltrans on March 30, 2023.

A second application for a Highway Safety Improvement Program Grant was approved on March 30, 2023 for the maximum allowed amount of $151,000 to enhance the existing Rectangular Rapid Flash Beacons. Grant proceeds will be used to install additional beacons at the median and to modify signing and striping on Central Parkway at the intersections of Legacy Drive and Heritage Drive.

The City will be investigating funding opportunities for other projects such as aquifer storage and recovery wells, water meter transmitter upgrades, landscape retrofit for medians, and other potential water supply and parks and recreation projects. Staff will Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
16 contact appropriate state and federal agencies for initial determinations as to the availability and requirements for such assistance. Incorporation and participation in regional agencies will provide more opportunities for grant funding.

RESERVE POLICY
The Strategic Plan includes an objective to maintain cash reserves equivalent to three months of operating expenses. This reserve policy, adopted in June 2021, will ensure that adequate funds are available throughout the year to meet expenses.

BUILDING RELATIONSHIPS
A key factor in meeting the challenges and goals described in this budget document will be the ability to develop and sustain productive working relationships and partnerships with a variety of state, federal, regional, and local governmental agencies, developers, builders, constituents, and employees. Staff will continue to work with these other agencies and organizations to address water supply and road maintenance issues, transit projects, and other opportunities for cooperation and mutual benefit.

BUDGET PRESENTATION
The fiscal year 2025/26 budget document contains summary information on fund balances and detailed information on revenues and expenditures by fund. We have also included budgetary information by department and fund. The departments mirror the organization chart and align with assignments of the strategic plan’s goals and objectives. Department budgets have been included in this document to improve transparency, accountability and understanding.

The budget document also includes the five-year Capital Improvement Project Report.

While only the improvements for fiscal year 2025/26 have been programmed into the budget, the projections are the framework for future capital improvement requests.

BUDGET REVIEW
The proposed budget was discussed with the City Council Members at a workshop on May 14, 2025. Staff took into consideration the directions given at the workshop and then presented the budget to the City Council on June 11, 2025 for adoption.

Sincerely,
Steven J. Pinkerton
City Manager
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
17 The City
When the Mountain House community was formed in 1996, it was anticipated that it would transition from a community services district to a city when it was financially feasible. After several years of significant growth and favorable findings of fiscal sustainability, the District petitioned the Local Agency Formation Commission for incorporation.

On March 5, 2024, voters overwhelmingly supported the incorporation of Mountain House. Becoming a city will provide new revenues, policing powers, land use and planning control, and opportunities to participate in regional agencies and grant programs. Incorporation achieved a long-standing goal of the Strategic Plan.

MISSION
To provide responsive service to our growing community that exceeds expectations at a fair value.

VALUES
- Ethics: To hold to the highest ethical standards, and to act with honesty and integrity.
- Responsibility: To accept responsibility for our individual and collective actions, and to have the courage to take right actions on behalf of the whole irrespective of political pressures.
- Vision: To be visionary, innovative, and resourceful. - Community-Minded: To create a vibrant, thriving, and resilient community and to build strong, positive partnerships with residents and stakeholders.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
18 - Respect: To interact respectfully, use active listening skills, and develop the selfawareness to monitor how our actions impact ourselves and others. - Competence: To competently discharge our duties and seek opportunities to increase our efficiency.

STRATEGIC ISSUES
The following priority list of strategic issues will remain a focus over the next few years.

The City Council will work with staff, stakeholders, and the community to see these concerns addressed expeditiously.
- 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. - 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 decisionmaking 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.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
19 MOUNTAIN HOUSE CITY GEOGRAPHY
The City of Mountain House is located in the west area of San Joaquin County, approximately 58 miles east of San Francisco, 50 miles east of Oakland, 51 miles northeast of San Jose, and 76 miles southwest of Sacramento. The City occupies 7.5 square miles.

THE CITY COUNCIL
The Mayor is directly elected and the four Council Members are elected by the voters to serve overlapping four-year terms. The City Council sets policy and exercises the legislative authority of the City.

ADMINISTRATION AND

MANAGEMENT
The City of Mountain House is a
Council-Manager form of
government. The City Council
appoints the City Manager who
appoints all other City personnel.

The City Manager is charged
with overseeing the City’s daily
operations.

HISTORICAL OVERVIEW
The Mountain House area was
originally inhabited by the
American Indian Cholbon tribelet
of the Northern Valley Yokuts.

Never settled by the Spanish, the
name Mountain House did not
originate until the Gold Rush era.

As an approximate midway point,
miners traveling from San
Francisco to the Sierra Foothills
would often rest at a house at the
bottom of a range of hills called
“Mountain House”. Originally, Thomas Goodal pitched a blue tent in the area to form the first Mountain House structure, but later replaced it by building an adobe house with the assistance of American Indians. Eventually, Simon Zimmerman purchased the stop and Mountain House became a famous way station on the road to Stockton.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
20 During the 1860’s a regional farmer, Eric Wicklund, built a new town near the Mountain House site. The town of Wicklund became the transportation and trade center for the area. During the 1870s the arrival of the Central Pacific Railroad allowed faster transportation of goods and Wicklund’s commerce faded.

In 1878, the first train ran
through Bethany Railroad
Station and Bethany became a
new center for trade. To
accommodate growth, the
Byron-Bethany Irrigation District
was formed in 1916 to transport
water, which eased dependency
on dry farming. Through the
1920s Bethany grew to include
a church, blacksmith shop,
general store, bar, dance hall
and post office. During this time
the Mountain House School was built in the foothills of the region. In 1940, the last remaining structure of Bethany, the Bethany Post Office was torn down.

In 1991, SunChase Holdings acquired most of the agricultural land that would become Mountain House as an assemblage of optioned parcels. In February 1993, the San Joaquin County’s Board of Supervisors certified the Environmental Impact Report and added the community to the County’s General Plan. Officially formed in 1996, residents moved into the first houses built within the City of Mountain House’s boundaries in June 2003.

In 2008, there was finally a large enough population (over 1,000 registered voters) in Mountain House, to hold an election deciding the independence of the Community Services District from San Joaquin County Board of Supervisors. In November 2008, Mountain House residents voted to have a locally elected City Council.

DEMOGRAPHICS
Land Area ……………………………………………………………………..7.5 square miles
Population1…….……………………….…………………………...…...………………..28,825 Median Household Income (In 2022)2……………………………………………… $171,675 Median Age ………………………………………………………………………………….34.1
1 California Department of Finance, Demographic Research Unit, July 1, 2024 Estimate 2 US Census Bureau, 2023 American Community Survey 5-Year Estimates Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
21 Population by Gender3
Female ……………………………………………………………...……………..50.0%
Male ……………………………………………...…………………………….…..50.0%
Population by Age Group4
Under 14 years …………………………...……………………………………....26.3%
15 to 24 years ……………………………….…………………………...…….....17.1%
25 to 44 years ……………………………………...……………………….....….27.5%
45 to 59 years …………………………………….……….………………...……19.0%
60 to 74 years ……………………………………….………...…………….……..7.8%
75 years and over ……………………………………...…………………….…….2.3%
Racial Composition5
Hispanic or Latino (of any race) ….……………………………….………...……9.0% White ...…………………………….………………………………………….......21.7%
African American …………………..…………………………………….…….......5.8%
Native American ……………………..…………………………………....…….....0.1%
Asian ...………………………………..………………………………………... ...55.6%
Pacific Islander ………………………………….……………………….…….......0.0%
Other …………………………………………..……………………….……...…....0.5%
From two or more races ……………………………………………...…..….…....7.2% Level of Educational Attainment of people 25 years and older6 Graduate/ Prof. Degree …………………………………..………………..….…21.6%
Bachelor’s Degree …………………………………………….……………..…..29.3%
Some College or Associate Degree ……….…….…………………....…..……25.9% High School Graduate ……………………………………………….…………..15.6%
Less than High School ………………………………………….....…….….........7.6% Distribution of jobs by major employment sectors7
3 US Census Bureau, 2023 American Community Survey 5-Year Estimates 4 US Census Bureau, 2023 American Community Survey 5-Year Estimates 5 US Census Bureau, 2023 American Community Survey 5-Year Estimates 6 US Census Bureau, 2023 American Community Survey 5-Year Estimates Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
22 Management, business, science and arts ……..…………………..…….........54.1% Service …………………………………………………..……………….……......16.7%
Sales and office ……………………………………..…..……………….…........11.5% Natural resources, construction and maintenance ………..…….…………..…9.9% Production, transportation, and material moving ………………...………….....7.7%

HIGHLIGHTS AND ACCOMPLISHMENTS
General Administration
- Collaborated with and engaged staff in achievement of shared values:
transparency, accountability and service.
- Developed baseline goals and objectives for department in alignment with Strategic Plan for fiscal years 2025/2026 through 2026/2027. - Cultivated constructive, cooperative, and collaborative relationships with developers to envision and right-size improvements.
- In collaboration with developers and our legal team, established a Community Facility District (CFD) to expedite funding and construction of public infrastructure in future neighborhoods, ensuring timely delivery of parks and other facilities before full neighborhood buildout.
- Appointed a Communications Officer to strengthen communication with residents, respond to inquiries, and build relationships with local journalists and stakeholders to improve the flow of information.

Human Resources
- Updated Personnel Policy as needed.
- Negotiated contracts with the Service Employees International Union (SEIU) in effect through June 30, 2026.
- Successfully opened and/or completed recruitments for vacant positions. - Negotiated contracts with the Service Employees International Union (SEIU) in effect through June 30, 2026.
- Successfully opened and/or completed recruitments for vacant positions.

Ensured aspects of labor agreements are implemented including cost of living increases, step increases and performance evaluations.
- Worked with Finance staff to implement an in-house payroll system; secured a suite of benefits including health, dental, vision, and life insurance; retirement; and deferred compensation.
- Issued a Request for Proposals and awarded a contract for a Classification and Compensation study with an anticipated completion date of July 2025.

Risk Management
- Joined the Municipal Pooling Authority, a joint powers agency that better meets the City’s risk management needs related to general liability and employmentrelated issues. 7 US Census Bureau, 2023 American Community Survey 5-Year Estimates Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
23 - Assumed accountability for in-house risk management, overseeing all risk, compliance and safety programs, and ensuring all training, best practices and mandated audits are being conducted.
- Coordinated with Human Resources to identify and assign appropriate training opportunities and monitor completion.
- Developed tracking system to log incidents, police reports, insurance information, claims made, and reimbursement received.

Finance
- Awarded a Distinguished Budget Presentation Award from the Government Finance Officers’ Association for the fiscal year 2024/25 budget. - Awarded an Operating Budget Excellence Award from the California Society of Municipal Finance Officers for the fiscal year 2024/25 budget. - Awarded a Certificate of Achievement for Excellence in Financial Reporting for the City’s Annual Comprehensive Financial Report (ACFR) for fiscal year 2023/24. The ACFR consists of three sections – Introductory, Financial, and Statistical – and presents a wider variety of information intended to help the reader more fully understand the basic financial statements. - Completed AB1600 annual reports, information required by the State Controller, and reports required by bond covenants timely and accurately. - Prepared updates to the Financial Management Policy Manual as appropriate. - Worked with financial and legal consultants to create Community Facilities District 2024-1 in order to expedite funding and construction of public infrastructure in future neighborhoods, ensuring timely delivery of parks and other facilities before full neighborhood buildout.
- Redeemed $10 million of the TIF lease revenue bonds as authorized by the TIF and Annexation Fee Programs Policies.
- Since incorporation, staff has implemented in-house payroll, accounts payable, and business license systems and coordinated collection of new state and county revenues.
- Managed general office operations include requests for supplies, services and equipment.

Customer Service
- Implemented and converted to a new utility billing and collection system and hired and trained new staff to provide in-house customer service for our 7,000+ accounts.
- Maintained compliance with SB998 requirements related to utility services, including counseling utility customers on availability of amortization plans. - Streamlined lien procedures so that property tax liens are approved by the City Council annually, rather than throughout the year. In the interim, property liens are imposed throughout the year.

Information Technology
- Provided resources for staff to work, process transactions, and meet remotely and efficiently.
- Used Zoom platform to allow members of the public to view City Council and community meetings in real time.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
24 - Managed equipment and phone systems.
- Coordinated various software systems including implementation, integration, upgrades, and training.
- Negotiated a Memoranda of Understanding for Information technology services with San Joaquin County.

City Clerk
- Ensured compliance with Brown Act through timely publication and noticing of agenda packets.
- Transitioned to a new agenda management system that will increase staff efficiency and public accessibility.
- Worked with staff to implement a tracking system for public comments at City Council meetings.
- Processed legislative documents (Resolutions and Ordinances). - Ensured timely filing of required Fair Political Practices Form 700 by elected officials.

Web Services, Social Media, and Other Communications
- Evaluated various web platform providers with respect to qualifications, features, ease of use, and successful installations at other public agencies. Staff selected Granicus as the platform that will best meet our needs to design a site that is informative, up-to-date, easy to navigate and maintain, internally consistent, and pleasing to view. Improvement and maintenance of the site is on-going. - Implemented OpenTownHall to provide information to the public about City operations and development activity. The program is also used to engage the community by offering surveys.
- Posted surveys on a variety of topics to better inform the Board of the community’s priorities and preferences.
- Posted information on road closures, community meetings and recreation events.

Established an eblast subscription to sign up for topics of interest. - Developed a variety of on-line fillable PDFs forms with options to pay to facilitate applications and processing.

Public Works
- Transitioned responsibility for floodplain management from San Joaquin County to the City’s Public Works Department, appointing the Public Works Director as Floodplain Manager.
- Assisted in the development of the City’s GIS-EAM-CMMS program. - Coordinated relocation of Operations and Maintenance and Utility offices to the wastewater treatment plant.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
25 - Secured Congestion Mitigation and Air Quality grant funding for electric vehicle charging stations and solar carports at City Hall.
- Issued requests for proposals for the Byron Road Pavement Assessment and the City’s first Transit Feasibility Study.
- Finalized City Hall parking lot access improvement plans. - Advertised the City’s first federally funded project: the Mountain House Parkway Traffic Signal Synchronization Project.
- Developed and published the City’s first Traffic Calming Program Manual. - Submitted six capital improvement projects for Measure K grant funding, including sidewalk replacement, ADA ramp improvements, and traffic safety enhancements.
- Integrated the Byron Road Widening Project into the Measure K program for future grant opportunities.

Operations & Maintenance
- Issued requests for proposals for the maintenance of landscaped areas in the streetscape and parks.
- Created a draft Tree Maintenance Ordinance.
- Replaced a five-foot counter in the Fire Station Community Room. - Evaluated storage options for the Community Closet program. - Installed 12 new Neighborhood Watch signs in the Cordes neighborhood. - Completed safety inspection repairs at Town Hall and the Library. - Installed new signage and pavement markings in the Town Hall parking lot. - Procured and installed maximum occupancy signage for administrative offices. - Converted a tennis court for pickleball use through new court striping. - Investigated and estimated damages at multiple traffic accident sites, including Central/Aldrich, Providence/Arnaudo, Central south of Ramsey, Central/Questa Trail, and 123 Main Street.
- Rekeyed the Wastewater Treatment Plant and Operations & Maintenance offices.
- Completed repairs at seven damaged sections of sound walls along arterial roadways.
- Installed redwood railing at the Unity Center to enhance building frontage. - Processed an agreement extension for Valley Communications services. - Installed a new drinking fountain at Questa Park.
- Reviewed design and cost estimates for the proposed Community Garden project.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
26 - Supported environmental stewardship activities through ongoing community education and regulatory participation.
- Continued to develop and update compliance plans, protocols, and Quality Assurance/Quality Control (QA/QC) programs for water, wastewater, and stormwater systems.
- Completed and published the 2023 Consumer Confidence Report; initiated the 2024 CCR in compliance with new State regulations.
- Completed initial Hexavalent Chromium sampling at the Water Treatment Plant with non-detect results.
- Completed EPA-mandated Unregulated Contaminant Monitoring Rule (UCMR-5) testing at the Water Treatment Plant with non-detect results. - Submitted the City’s Lead Service Line Inventory (LSLI) to the California State Water Resources Control Board.
- Participated in early detection sampling programs in partnership with the Department of Public Health.

Construction Engineering
- Supported engineering teams with project inspections and construction administration for development and public infrastructure. - Advanced document coordination and project acceptance processes to streamline infrastructure turnover.

Community Development
- Completed updates to the Community Facilities Fee (CFF) and Traffic Impact Fee (TIF) programs.
- Released an RFP, conducted interviews, and hired a consultant to establish and manage the Building Department.
- Coordinated with San Joaquin County Community Development Department to transition City land use approvals, planning issues, and use permits from County to City authority.
- Assumed responsibilities from the County and implemented an internal process for assigning street names and addresses.
- Completed and implemented the Parks and Recreation Plan, including designs for Central Community Park, tennis courts, and an amphitheater. - Completed and implemented the phased Bicycle and Pedestrian Plan. - Developed a standard project reimbursement agreement for non-MARA developers in coordination with the City Attorney.
- Partnered with consultants and developers to form Community Facilities Districts (CFDs) to fund parks and infrastructure improvements.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
27 - Updated the Master Plan and Specific Plans to reflect land use and community facility changes.
- Finalized and published online submittal checklist of requirements. - Issued an RFP to procure a consultant for the City’s General Plan update. - Developed and implemented Home Occupation Permit procedures to align with Business License issuance.

Development Engineering
- Reviewed and approved civil, grading, joint trench, streetlight, landscape, and traffic signal improvement plans for multiple residential tracts, including Tracts 4040 (A7), 3609 (A5), 3619 (B6, B7, B8), 3618 (B11), 3926 (Neighborhood K), 4194 (Neighborhood I), and 4200–4202 (Neighborhood I).
- Verified final maps and prepared subdivision and off-site improvement agreements for Tracts 3609, 3618, 3926, 3973, 3974, and 3975. - Prepared conditions of approval for Neighborhoods F (Tracts 4210, 4211), H (Tracts 4212, 4618), and revised conditions for Neighborhoods I, J, K, and L. - Secured Union Pacific Railroad approvals for at-grade crossings at Byron Road and Mountain House Parkway and Byron Road and Great Valley Parkway. - Completed construction and acceptance of Grant Line Road improvements between Central Parkway and Great Valley Parkway, including the sound wall.

Building and Safety Services
- Established a fully functioning Building Department, including onboarding consultants, developing applications and procedures, processing building permits, and performing construction inspections.
- Launched the online GreenVue Permit Portal system to streamline applications and reviews.

Code Compliance
- Conducted outreach initiatives including New Homeowner Day events, HOA outreach, and education on neighborhood street tree and sidewalk maintenance. - Initiated outdoor recreation season compliance efforts, including education on non-standard vehicle parking.
- Developed procedures and distributed informational materials to enhance public understanding of municipal code requirements
Recreation
- Hosted second annual Juneteenth Celebration at Central Park for over 2,000 guests with over 30 food and retail vendors, live performances, history presentations, dancing, music, and local, regional, and national dignitaries in attendance.
- Hosted second annual “Light Up Main Street” with vendors, live music, and lights along Main Street from Town Hall to the tree at Central Park, increasing attendance and positive feedback.
- Updated website to be more customer friendly that includes:
o Weather field conditions page.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
28 o Upcoming rental schedules.
o Policies and fees reference documents.
o Special event photos and information.
o Vendor information and sign-up links.
o Calendar items for upcoming events and programs.
o Park and facility maps for easy reference.
- Increased marketing and community involvement through more robust social media campaigns.
- Received sponsorships from local businesses for Holiday Tree Lighting and new Central Park Cinema special events offsetting the costs. Received additional funds from community member donations to offset the costs of the Bike Rodeo and Senior Health and Wellness Expo.
- City Council adopted the tennis courts, indoor facilities, parks and fields, and picnic shelters rental policies and fees.
- Developed a Community Hosted Special Event Policy and Process with collaboration between Parks and Recreation, Code Enforcement, Public Safety, Fire Department and Sheriff’s Department to be presented to Council for adoption.
- Created a Contract Instructor Handbook to streamline the hiring process for specialized recreation instructors.
- Proposed a Facility Waiver/Grant Program for non-profits to offset their costs of renting City facilities.
- Added two pickleball courts to the Central Park Tennis Courts in response to community feedback.

Emergency Management
- Completed the Municipal Emergency Management Plan (MEMP) and began development of the ICS system.
- Trained staff to implement the MEMP and run the Emergency Operations Center. - Approved to be part of the Office of Emergency Services Disaster Council, with voting powers.
- Involved in the assessment of threats related to disasters at the County level with the Office of Emergency Services.
- Launched and expanded use of the Everbridge Notification system. - Updated the Facilities Emergency Response Plan.

Public Safety Services
- Increased traffic enforcement with one additional motorcycle officer for a total of two motorcycle officers.
- Hosted 2 successful traffic enforcement operations resulting in dozens of citations.
- Used technology to increase the number of arrests and identification of suspects in various criminal activities.
- Developed all-volunteer pedestrian crossing guard program.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
29 - Conducted safety fire inspection and risk assessment at the Town Hall/Library with staff and Mountain House Fire.
- Designed process of monitoring 31 surveillance cameras strategically placed throughout the community along with additional cameras in the Town Hall/Library. All cameras can be accessed remotely by authorized staff and Public Safety agencies as well remote monitoring by Rank’s dispatch center. - Managed 26 Flock Falcon Automated License Plate Recognition cameras in the community.
- Installed signage for Town Hall/Library doors and entrances indicating limited public access.
- Provided staff training in active incident procedures and 1st Amendment rights. - Participated in numerous community outreach programs throughout the year including Neighborhood Watch, Business Watch, Coffee with First Responders, National Night Out, and Senior Awareness.
- Conducted pedestrian crossing safety evaluations and collected data around schools and high traffic areas.
- Introduced a smart phone application for the Emergency Response Plan. - Community Preservation Officer obtained a Crime Prevention through Environmental Design Professional Designation.
- Community Preservation Officer took the lead in the GoGov program to enhance two-way public-agency communications and staff accountability. - Developed municipal codes specifically for code, parking, and park enforcement. - Established several new Neighborhood Watch and Business Watch groups. - Obtained certification as a drone pilot in compliance with FAA Part 107 UAS Pilot license.

Fire & EMS Services
- Responded to 62 fire and emergency incidents and 696 rescue and emergency medical calls.
- Completed 5,093 training hours in coordination with partner agencies, including CPR, CERT, and Stop the Bleed and monthly drone training. - Performed inspections and maintenance on 1,150 fire hydrants. - Participated in over 100 community events including:
o YAC summer program.
o July 4th Parade.
o Community pancake breakfast.
o Farmers’ Markets.
o National Night Out.
o Mountain House High School Career Fair.
o Fire Station open houses.
o Fire prevention assemblies at all elementary schools. - Coordinated efforts with the City to clear overgrown vegetation, weeds and tall grass in the large undeveloped lots in and around Mountain House. - Participated in 5 statewide fire deployments.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
30 - Applied for and received the Cal Fire “50/50” grant for equipment and personnel protective equipment.
- Applied for “Assistance for Firefighter” grant to place a third person at the new firehouse 2. Awarding will take place in October 2025. If we are awarded the grant, FEMA would fully fund the position for 3 years.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
32 Personnel
CITY OF MOUNTAIN HOUSE’S ORGANIZATION CHART
The organization chart shows the City is made up of three primary sectors: Community Development, Public Works, and Administrative Services. The City has contracted for legal, law enforcement, fire, library, and information technology services.

MH City Council
City Manager
Administrative
Services Director
Finance Director
Accounting Manager
Senior Accountant Customer Service
Supervisor
Office Assistant I & II
(3)
Human Resources
Manager
Information
Technology
Contract
Recreation
Coordinator (2)
Accountant I (3)
Community
Development
Director
Engineer I/II/III
Intern
(.5 FTE)
Sr. Public Works
Inspector
Principal Planner
Sr. Inspection & Code
Enforcement Officer
Community
Preservation Officer
Fire & EMS
Contract
Law Enforcement
Contract
Library
Contract
Public Works
Director / City
Engineer
Operations &
Maintenance
Superintendent
Landscape
Supervisor
Maintenance
Worker I/II (2)
Program Manager
Sr. Maintenance
Worker (2)
City Attorney
Engineer V
Engineer V
Administrative
Assistant
Intern
(.25 FTE)
Engineer I/II/III
Recreation Assistant
(2.4 FTE)
Recreation Manager
Construction
Manager Planner I/II/III
Utilities Manager
Accounting
Technician (2)
Deputy City Manager
Engineer V
Management
Analyst
Administrative
Assistant (.3 FTE)
Senior Management
Analyst
Administrative
Secretary
Administrative
Assistant
Permit Technician
Inspector & Code
Enforcement Officer
City Clerk
Building Contract Program Manager
Communication
Officer
Management
Analyst
Facility Supervisor
Intern
(.5 FTE)
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
33 CITY OF MOUNTAIN HOUSE’S ORGANIZATION CHART

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
34 FULL TIME & PART TIME POSITIONS

FULL TIME POSITIONS
2021/22
BUDGET
2022/23
BUDGET
2023/24
BUDGET
2024/25
BUDGET
2025/26

BUDGET CHANGE
City Manager 1 1 1 1 1 0.0
Deputy City Manager 0 0 1 1 1 0.0
Administrative Services Director 1 1 1 1 1 0.0
Senior Management Analyst 0 0 0 0 1 1.0
Management Analyst 1 2 3 2 2 0.0
Program Manager 0 0 0 1 2 1.0
Administrative Assistant 2 2 2 2 2 0.0
Administrative Secretary 1 1 1 1 1 0.0
Office Assistant I 1 1 1 1 1 0.0
City Clerk 0 0 0 1 1 0.0
Human Resources Manager 1 1 1 1 1 0.0
Communication Officer 0 0 0 1 1 0.0
Finance Director 1 1 1 1 1 0.0
Accounting Manager 1 1 1 1 1 0.0
Senior Accountant 1 1 1 1 1 0.0
Accountant I 2 2 2 2 3 1.0
Customer Service Supervisor 1 1 1 1 1 0.0
Accounting Technician I 2 2 2 2 2 0.0
Office Assistant II 0 0 0 0 2 2.0
Recreation Manager 1 1 1 1 1 0.0
Recreation/Comm. Coordinator 1 1 1 1 2 1.0
Community Development Director 1 1 1 1 1 0.0
Chief Building Inspector 0 0 0 1 0 (1.0)
Principal Planner 1 1 1 1 1 0.0
Assistant Planner 1 1 1 1 1 0.0
Permit Technician 0 0 0 1 1 0.0
Engineer IV/V 2 2 3 3 3 0.0
Engineer I/II/III 1 1 1 1 1 0.0
Construction Manager 1 1 1 1 1 0.0
Senior Public Works Inspector 1 1 1 1 1 0.0
Senior Inspector & Code Enforcement Officer 1 1 1 1 1 0.0 Inspector & Code Enforcement Officer 0 0 0 1 1 0.0
Community Preservation Officer 1 1 1 1 1 0.0
Public Works Director 1 1 1 1 1 0.0
Utility Manager 1 1 1 1 1 0.0
Engineer I/II/III 1 1 1 1 1 0.0
Operations & Maint. Superintendent 1 1 1 1 1 0.0
Landscape Supervisor 1 1 1 1 1 0.0
Facility Supervisor 0 0 0 0 1 1.0
Senior Maintenance Worker 1 1 1 1 2 1.0
Maintenance Worker II 1 1 1 1 1 0.0
Maintenance Worker I 1 1 1 1 1 0.0
Total Full-time Positions 36 37 40 45 52 7.0

PART TIME POSITIONS
Recreation Assistants 0 0 1.4 1.4 2.4 1.0
Administrative Assistant 0 0 0 0.3 0.3 0.0
Interns 0.5 0.5 0.5 0.5 1 0.5
Total Part-time Positions 0.5 0.5 1.9 2.2 3.7 1.5
Total Personnel 36.5 37.5 41.9 47.2 55.7 8.5
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
35 STAFFING LEVEL BY DEPARTMENT
The City will have 55.7 fulltime positions for the fiscal year 2025/26. This is an addition of 8.5 equivalent full-time employees. The positions that were during the fiscal year 2024/25 are Program Manager, Senior Management Analyst, two Office Assistants II, and one full-time employee equivalent Recreation Assistant. The positions proposed with fiscal year 2025/26 budget are Facility Supervisor, Senior Maintenance Worker, Accountant I, and Recreation Coordinator. The position of Chief Building Inspector was removed during fiscal year 2024/25. The three positions of Development Director, Principal Planner, and Senior Public Works Inspector are included in the fulltime positions but were not funded for fiscal year 2025/26 as consultants are expected to fill those roles for the City.

DISCUSSION OF EMPLOYEE COMPENSATION & BENEFITS
The total expected employee compensation for fiscal year 2025/26 is $10.7 million, a $615 thousand increase over the fiscal year 2024/25 budget. The increase is due to the addition of new employees, increases in pension, increase in benefits, cost of living adjustments, and step increases. Certain City employees are represented by the Service Employees International Union (SEIU) in either the General or Supervisory and Confidential units. Both units have entered into Memoranda of Understanding with the City that will expire on June 30, 2026. The retirement cost is expected to be $2.2 million and health, dental, and vision costs are expected to be $1.4 million. Employee classification and salary grades are shown in the tables below. 2021/22
BUDGET
2022/23
BUDGET
2023/24
BUDGET
2024/25
BUDGET
2025/26
BUDGET

FULL TIME POSITIONS
Administration 8 9 11 13.3 15.3
Finance 8 8 8 8 11
Community Development 10 10 11 14 13
Public Works 3.5 3.5 3.5 3.5 4
Operations & Maintenance 5 5 5 5 7
Recreation 2 2 3.4 3.4 5.4
Total Full-time Positions 36.5 37.5 41.9 47.2 55.7
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
36 EMPLOYEE CLASSIFICATION
Classification
Salary
Grade
Unit
G = General
S/C = Sup/Conf
U = Unrepresented
FLSA
Coverage
City Manager Contract U Exempt
Deputy City Manager 954 U Exempt
Administrative Services Director 953 U Exempt
Senior Management Analyst 865 U Exempt
Management Analyst (2) 817 S/C Exempt
Program Manager (2) 817 S/C Exempt
Administrative Assistant w/longevity 788 U Non-Exempt
Administrative Assistant (2) 770 G Non-Exempt
Administrative Secretary 770 G Non-Exempt
Office Assistant I 678 G Non-Exempt
City Clerk 910 U Exempt
Human Resources Manager 914 U Exempt
Communication Officer 817 U Exempt
Finance Director 935 U Exempt
Accounting Manager 900 U Exempt
Senior Accountant 865 U Exempt
Accountant I (3) 802 G Non-Exempt
Customer Service Supervisor 817 S/C Exempt
Accounting Technician I (2) 729 G Non-Exempt
Office Assistant II (2) 678 G Non-Exempt
Recreation Manager 867 U Exempt
Recreation/Communications Coordinator (2) 770 G Non-Exempt Recreation Staff N/A U Non-Exempt
Community Development Director 932 U Exempt
Principal Planner 903 U Exempt
Assistant Planner 818 G Non-Exempt
Permit Technician 785 G Non-Exempt
Engineer V (3) 903 U Exempt
Engineer II (2) 841 G Non-Exempt
Construction Manager 903 U Exempt
Senior Public Works Inspector 807 S/C Exempt
Sr Inspection & Code Enforcement Officer 836 S/C Exempt Inspector & Code Enforcement Officer 775 G Non-Exempt
Community Preservation Officer 826 S/C Exempt
Public Works Director 953 U Exempt
Utility Manager 914 U Exempt
Operations & Maintenance Superintendent 869 U Exempt
Landscape Supervisor 827 S/C Exempt
Facility Supervisor 827 S/C Exempt
Senior Maintenance Worker (2) 770 S/C Non-Exempt
Maintenance Worker II (2) 741 G Non-Exempt
Engineering Intern N/A U Non-Exempt
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
37 MONTHLY SALARY GRADES AND STEPS
Salary
Grade Step 1 Step 2 Step 3 Step 4 Step 5
678 $ 4,065 $ 4,268 $ 4,482 $ 4,706 $ 4,941
729 5,215 5,476 5,750 6,037 6,339
741 5,529 5,805 6,095 6,400 6,720
770 6,369 6,687 7,022 7,373 7,741
775 6,529 6,856 7,200 7,560 7,939
785 6,856 7,198 7,558 7,936 8,333
788 6,956 7,304 7,670 8,053 8,456
802 7,449 7,821 8,212 8,623 9,054
803 7,486 7,861 8,254 8,667 9,100
807 7,634 8,016 8,417 8,838 9,280
817 8,016 8,417 8,838 9,280 9,744
818 8,054 8,457 8,880 9,324 9,790
826 8,377 8,796 9,236 9,697 10,182
827 8,417 8,837 9,279 9,743 10,230
836 8,795 9,235 9,697 10,182 10,691
841 9,012 9,462 9,935 10,432 10,954
865 10,133 10,639 11,171 11,730 12,316
867 10,232 10,744 11,281 11,845 12,437
869 10,331 10,848 11,390 11,960 12,557
900 12,015 12,616 13,246 13,909 14,604
903 12,195 12,805 13,445 14,117 14,823
910 12,615 13,245 13,907 14,603 15,333
914 12,867 13,511 14,186 14,896 15,640
932 14,046 14,749 15,486 16,260 17,073
935 14,255 14,968 15,717 16,503 17,328
953 15,564 16,342 17,160 18,018 18,918
954 16,343 17,160 18,018 18,918 19,865
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
38 Budget Guide

BUDGET GUIDE SUMMARY
The City’s budget represents the official financial and organizational plan by which City policies and programs are implemented. This document presents the budget for the fiscal year 2025/26. The City budgets on a fund level but the City’s budget emphasizes reporting and controlling by departments and divisions. A budget is developed for each department and division to more accurately measure the true cost of providing services.

The City has four departments and sixteen divisions. Division budgeting provides useful operations information and further explain fund level revenues and expenditures.

DEPARTMENTS
Mountain House
Community
Services District
Administration
Department
Legal Services
Division
City Council &
District Clerk
Division
Human Resource
Division
Risk Management
Division
Finance Division
Customer Service
DIvision
Information
Technology
Division
Public Works
Department
Regulatory &
Compliance
Division
Impact Fee
Programs Division
Operation &
Maintenance
Division
Community
Development
Department
Planning &
Code Compliance
Division
Recreation
Department
Contracted
Services
Library Division
Law Enforcement
Services Division
Fire & EMS
Division
Emergency
Preparedness
Services Division
Debt Service
Division
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
39 BUDGET DOCUMENT
The City’s budget document is presents in the following sections:
- Budget Message
o This section focuses on the City Manager’s message.
- The City
o This section highlights the City’s mission, values, objectives, history, and demographics.
- Personnel
o This section illustrates the City’s organizations chart and full-time employees.
- Budget Guide
o This section explains the budget document and process including the preparation and other information helpful in understanding the budget. - Budget Summary
o This section shows the City’s budgets summaries and highlights the revenues compared to expenditures. It also discusses budget forecasts. - Department Budgets
o This section focuses on expenditures for each department and division and their funding sources.
- Fund Budgets
o This section focuses on expenditures for each fund and revenue sources. - Capital Projects Budget
o This section focuses on the CIP projects funding and expenses for the current and future budgets.

BUDGET PREPARATION SCHEDULE
The City’s budget is prepared by staff under the direction of the City Manager. The City Manager reviews preliminary budget estimates and proposals. The approved estimates and proposals are then turned into the Proposed Budget for the City Council to consider during the Budget Workshop. The Board considers the Proposed Budget and provides directions on the Proposed Budget. Staff make the Board’s recommended changes. The budget is then approved during the City Council meeting in June.

FY 2025/26 Budget Schedule
- 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
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
40 - May 9, 2025 - Distribution of draft budget to the City Council - May 14, 2025 - City Council Budget Workshop
- June 11, 2025 - City Council adoption of budget
- July 1, 2025 - Start of new fiscal year

BASIS OF ACCOUNTING
The City’s financial records are prepared and maintained in accordance with generally accepted accounting principles (GAAP) of governmental accounting. Under GAAP, the modified accrual basis of accounting is used for governmental funds, while the full accrual basis of accounting is used for proprietary funds.

BASIS OF BUDGETING
The budget is adopted on the modified accrual basis of accounting for all funds, including the utility enterprise funds, because the modified accrual basis more closely approximates cash flow and is thus more useful for budgeting purposes than the full accrual basis. Under the modified accrual basis, revenues are budgeted in the period when they are expected to be earned, but only to the extent that the earned revenue is expected to be received during the period or within 60 days after the end of the period.

Expenditures are budgeted in the period in which the liability is expected to be incurred, except that for long-term liabilities, expenditures are recognized for interest and principal payments in the period they come due for payment. Expenditures are budgeted for capital asset acquisitions in the year acquired and depreciation is not budgeted.

The modified accrual basis of accounting is consistent with generally accepted accounting principles for financial reporting for governmental funds, but it differs from generally accepted accounting principles for the utility funds, which are reported on a full accrual basis. Accordingly, when presenting budget-to-actual comparisons for enterprise funds on the budgetary basis, a reconciliation will be necessary to explain the differences between amounts recognized on a budgetary basis and amounts recognized on an actual basis for utility funds.

BALANCED BUDGET
A balanced budget is defined as total expenditures not exceeding total revenues and beginning balances. The budgeted ending balances should always be positive, if there is a negative balance then the budget is not balanced. The ending fund balances represent anticipated reserves at the end of the year.

BUDGET ADJUSTMENTS AND AMENDMENTS
Exceeding Budget Prohibited
Expenditures in excess of the established budget for a line item are prohibited. The Finance Department will return unpaid any requests for payment that exceed the budget Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
41 amount as described above. Originating departments must complete an Appropriation Adjustment Request (AAR) to adjust budged line items. The following details the level of authority granted for budget adjustments.

Department Managers
Department managers may adjust the budget under the following circumstances:
- The adjustment does not involve a payroll, labor, or overhead allocation account, and;
- The adjustment reallocates expenditures so that the total amount of budgeted expenditures within the department and fund does not increase.

The Department Manager will complete and submit the AAR to the Finance Department to process a budget change meeting these criteria. Upon receipt of a properly executed AAR, the Finance Department will verify that the signer has the necessary authority as specified under this policy and then input the change into the Tyler Incode 10 system.

City Manager
The City Manager may adjust the budget under the following circumstances:
- The adjustment does not involve a labor, or overhead allocation account, and; - The adjustment reallocates expenditures so that the total amount of budgeted expenditures within each fund grouping does not increase. - The City Manager may use excess budgeted payroll funds to contract for services that are required during the current fiscal year. The City Manager may use excess budgeted funds from contract services to fund payroll positions that are required during the current fiscal year.

The City Manager will complete and submit the AAR to the Finance Department to process a budget change meeting these criteria. Upon receipt of a properly executed AAR, the Finance Department will verify that the signer has the necessary authority as specified under this policy and then input the change into the Tyler Incode 10 system.

City Council
Any budget changes not falling within the authority of a Department Manager or the City Manager as defined above must be approved by the City Council in the form of a formal budget amendment. Changes that must be submitted to the City Council for approval include the following:
- Any change that increases total budgeted expenditures in a fund grouping.

Personnel who need to initiate an appropriation adjustment must submit an Appropriation Adjustment form (AAF) to the Finance Department specifying the reasons of the budget change requested and the source of funds that will be used to cover any increased costs. The Finance Department will review the AAF to verify that sources of funds for the budget amendment are reliable and that the amendment is in accordance with City policy. If so, the Finance Department will forward the AAF to the City Manager for review. If the City Manager approves the AAF, the Finance Department will prepare Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
42 a staff report and proposed resolution amending the budget to present to the City Council at the next regular City Council meeting. If the City Council adopts the budget amendment, the City Clerk will sign the AAF and attach a copy of the approved budget amendment resolution, returning it to the Finance Department. The Finance Department will then enter the approved budget amendment into the Tyler Incode 10 system.

ALLOCATED COSTS
The City allocates the General Fund’s service departments’ personnel costs to the operating departments. The departments/divisions’ personnel costs that are allocated are the Administration, City Council & City Clerk, Human Resources, Risk Management, Finance, and Information Technology. The departments/divisions the costs are allocated to are Customer
Service, Engineering,
Development, Regulatory
& Compliance, Code
Compliance, Operations &
Maintenance, and
Recreation. The total
personnel costs that are
being allocated is $4.6
million. The cost is
allocated based on the
Operating
Department/Division
Personnel Allocation table. The table percentages are based on the labor costs of the individual operating departments divided by the total labor cost of all operating departments.
10% 8%
2% 0%
16%
20%
5%
2%
27%
10%
0%
5%
10%
15%
20%
25%
30%
Department/Division Personnel Allocation
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
43 The City also allocates overhead costs based on the same allocation table used for personnel. The service department’s operating costs are allocated to the operating departments, similar to the personnel allocation. The costs are allocated to provide the true costs of department operations. The services departments will allocate $3.3 million of overhead costs to the operating departments. The cost allocated is shown in the table below:

The overhead allocation percentages are based on the labor costs of the individual operating departments divided by the total labor cost of all operating departments.

Administration,
328,595.99 , 10%
Customer Service,
262,526.21 , 8%
Finance,
68,428.03 , 2%
IT/Communication
s, 9,691.76 , 0%
Public Works,
512,169.23 , 16%
Development,
643,357.27 , 20%
Regulatory,
176,533.97 , 5%
Code Compliance,
72,073.08 , 2%
Operations & Maintenance,
881,094.40 , 27%
Recreation,
344,280.06 , 10%
Department/Division Overhead Allocation
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
44 FUNDS
The City’s fiscal activities are budgeted and accounted for through funds. A fund is a separate self-balancing fiscal entity. The use of funds enables the maintaining of separate records for particular purposes. The table shows a list of the funds used by the City.

City of Mountain
House
Special Revenue
Funds
Development
Services
Gas Tax
Measure K
General Funds
General Fund
Transportation
Impact Admin
Fee Fund
Community
Facilities Impact
Admin Fee Fund
Builders Fund
Special
Assessment
Funds
Special Tax 1 –
Roads
Special Tax 2 –
Public Safety
Special Tax 3 –
Parks
Special Tax 4 –
Public Works
Restricted Funds
Transportation
Impact Fee Fund
Community
Facilities Impact
Fee Fund
Landscape &
Lighting District
2008 Fund
Landscape &
Lighting District
2016 Fund
Capital Projects
Funds
Roads CIP
Public Safety CIP
Parks CIP
Public Works CIP
Equipment &
Vehicle CIP
Water CIP
Wastewater CIP
Stormwater CIP
Debt Service
Funds
Water Pledged
Facility
Water Bond
Wastewater
Pledged Facility
Wastewater Bond
Stormwater
Pledged Facility
Stormwater Bond
Proprietary
Funds
Water Fund
Wastewater Fund
Stormwater Fund
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
45 General Funds
The General Fund is used to account for revenues and expenses that are traditionally associated with government and are not legally or through financial management required to be accounted for with other funds. The General Fund is the City’s most significant fund because it is the main operating fund. The General Fund contains sub funds that are accounted for separately for internal or grant purposes. These funds are consolidated into the General Fund for reporting purposes. The sub funds are:
- Traffic Impact Administration Fee
- Community Facilities Administration Fee
Special Assessment Funds
The Special Assessment Funds are used to account for revenues that are legally restricted for expenditures designated purposes.
- Special Tax No. 1: Roads
o The Roads Fund is a special tax that is used to fund the maintenance and development of roads within the City and other administrative purposes. - Special Tax No. 2: Public Safety
o The Public Safety Fund is a special tax that is used to provide funds for the Fire Department, Police Department, and emergency preparedness. - Special Tax No. 3: Parks
o The Parks Fund is a special tax that is used to provide funds for parks maintenance and development. The funds are also used for recreation programs and library operations.
- Special Tax No. 4: Public Works
o The Public Works Fund is a special tax that is used to provide funds for maintenance and lighting.

Special Revenue Funds
The Special Revenue Funds are used to account for revenues that are legally restricted for expenditures designated purposes.
- Development Services
o Development Services is mostly self-sustaining with full cost recovery fees for development and General Fund support for general planning activities.

Development revenues are subject to wide fluctuations based on planning and building activity.
- Gas Tax
o The City receives gas taxes pursuant to State law which specifically designates this money for the research, planning, construction, improvement, maintenance, and operation of public streets and highways.

California Revenue and Taxation Code (Section 7360) sets the statewide gas tax rate at $0.18 per gallon. The Road Repair and Accountability Act of 2017 (SB 1) adopted annual inflationary adjustments to all per-gallon motor vehicle fuel excise taxes including the rates allocated through the Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
46 Highway Users Tax Account. The State of California transfers Gas Tax Fund revenues to the City based on an allocation formula that distributes taxes collected on fuel sales.
- Measure K
o In 1990, San Joaquin County voters passed a one-half percent sales tax increase dedicated to transportation projects. This original sales tax increase was set to expire in 2011; however, in 2006, voters passed a 30- year extension of the sales tax increase. The San Joaquin Council of Governments administers the Measure K program. The City receives Measure K maintenance funding on a quarterly basis and administers the funding for maintenance, local capital projects, and to provide matching funds to leverage state and federal grant programs. Its members include San Joaquin County and cities of Stockton, Lodi, Manteca, Tracy, Ripon, Escalon, and Lathrop.

Capital Projects Funds
The Capital Project Funds are used to account for capital facilities. The revenues that fund these projects come from the General Fund, Special Assessment Funds, and Enterprise Funds.
- Capital Projects: Roads
o The major funding source for Road’s capital projects is from the Special Tax No. 1: Roads.
- Capital Projects: Equipment & Vehicles
o The major funding source for Equipment & Vehicles is from the Special Taxes and General Fund depending on the purpose and use. - Capital Projects: Public Safety
o The major funding source for Public Safety’s capital projects is from the Special Tax No. 2: Public Safety.
- Capital Projects: Parks
o The major funding source for Park’s capital projects is from the Special Tax No. 3: Parks.
- Capital Projects: Public Works
o The major funding source for public Works’ capital projects is from the Special Tax No. 4: Public Works.
- Capital Projects: Water
o The major funding source for Water’s capital projects is from the Water Fund revenues.
- Capital Projects: Wastewater
o The major funding source for Wastewater’s capital projects is from the Wastewater Fund revenues.
- Capital Projects: Stormwater
o The major funding source for Stormwater’s capital projects is from the Stormwater Fund revenues.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
47 Enterprise Funds
Enterprise Funds account for operations similar to private businesses. The aim of enterprise funds is to show that user fees cover the expenditures that are incurred to provide the services.
- Water Fund
o The major funding source is through fees charged to residents for services provided for water. The major expenditures are related to the operations of sourcing and delivering water.
- Wastewater Fund
o The major funding source is through fees charged to residents for wastewater services. The major expenditures are related to the operations of wastewater disposal.
- Stormwater Fund
o The major funding source is through fees charged to residents for stormwater services. The major expenditures are related to the operations of the stormwater system.

Debt Service Funds
The Debt Service Funds account for the accumulated debt that the City has an obligation.
- Debt Service: Water
o Water debt service revenue comes from a pledged facility utility service fee component. This fee is used to pay the accumulated debt on the water facilities and infrastructures.
- Debt Service: Wastewater
o Wastewater debt service revenue comes from a pledged facility utility service fee component. This fee is used to pay the accumulated debt on the wastewater facilities and infrastructures.
- Debt Service: Stormwater
o Stormwater debt service revenue comes from a pledged facility utility service fee component. This fee is used to pay the accumulated debt on the stormwater facilities and infrastructures.

Restricted Funds
Restricted Funds are used to account for funds that are legally restricted for expenditures designated purposes.
- Lighting & Landscape District 1
o The Lighting & Landscaping District 1 Fund is a fee charged to residents within the City that is used to fund activities related to the lighting and landscape operations of district.
- Lighting & Landscape District 2
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
48 o The Lighting & Landscaping District 2 Fund is a fee charged to residents within the City that is used to fund activities related to the lighting and landscape operations of district.
- Lighting & Landscape District 3
o The Lighting & Landscaping District 3 Fund is a fee charged to residents within the City that is used to fund activities related to the lighting and landscape operations of district.
- Traffic Impact Fee Fund
o The Traffic Impact Fees Fund are permit fees charged to builders that are used to pay for infrastructure costs related to roads.
- Community Facilities Fee Fund
o The Community Facilities Fee Fund are permit fees charged to builders that are used to pay for infrastructure costs related to facilities.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
49 Budget Summary
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
50 Budgeted Revenues

DISCUSSION
The budget for the fiscal year 2025/26 includes revenues of $73 million, which is a 3% increase over the projected revenues for fiscal year 2024/25. All major funds are expected to increase in fiscal year 2025/26 except the Restricted Funds. The largest increases are in the
Special Assessment
Funds and Enterprise
Funds that show a
combined increase of
$2.2 million. The total
combined expected
increase in the General
Funds and Special
Revenue Funds is $743
thousand. The result is a
$1.9 million increase in
total revenues for the
fiscal year 2025/26
budget.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
General Fund 10,042,231 12,020,932 13,808,552 13,933,693 Special Assessment Funds 15,084,906 16,173,399 16,775,141 17,500,901 Special Revenue Funds 72,589 105,316 2,683,359 3,301,700 Enterprise Funds 20,052,085 22,581,183 22,830,751 24,265,387 Restricted Funds 9,848,611 10,568,476 15,002,312 14,011,949 Total Funds 55,100,422 61,449,306 71,100,115 73,013,630 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
Revenues by Fund
General Fund Special Assessment Funds
Special Revenue Funds Enterprise Funds
Restricted Funds
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
51 General Fund Revenues

DISCUSSION
The General Fund revenues are expected to increase $125 thousand in fiscal year 2025/26. The majority of the increase is attributable to growth in property tax transfer, sales tax, and an increase in property tax revenues. Property taxes are estimated by using the prior year as a base,
factoring the expected
increases in resident units,
and the increases in valuation
of existing units. The increase
in units is the average number
of building permits from the
three prior years divided by
the total number residences
(4% increase). The increase in
valuation is an estimate

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

GENERAL FUNDS
General Fund
Property tax-secured 7,041,979 7,889,755 9,592,389 10,017,932 Property tax-secured-SB813 292,638 351,366 325,092 344,598 Property tax-unsecured 360,859 462,099 568,034 602,116
Property tax-unsecured-SB813 7,875 18,326 13,226 14,020 Property Transfer Tax - - 477,379 480,000
Sales Tax - - 80,000 85,000
License/permits-plan check 8,364 7,999 6,951 7,000
Franchises 385,420 392,416 456,732 475,001
Interest income 856,437 1,435,646 700,000 350,000
Rents/concessions 10,807 15,300 9,794 10,000
Homeowners' property tax relief 28,839 32,411 53,280 56,477 West Valley commercial 113,587 175,094 213,606 222,150
Utility services fee-solid waste 607,268 792,625 814,220 846,788 Charges for services 2,665 7,697 6,136 5,000
Other miscellaneous revenues 4,249 85,941 3,554 5,000
9,720,988 11,666,675 13,320,393 13,521,082
Traffic Impact Fee Program
Traffic impact administration fee 149,881 153,349 211,504 187,704 Communitiy Facility Fee Program
Community facility admin fee 171,362 200,908 276,655 224,907 Total General Funds 10,042,231 12,020,932 13,808,552 13,933,693 9,000,000
10,000,000
11,000,000
12,000,000
13,000,000
14,000,000

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
General Fund Revenue
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
52 comparing the values of new homes to older homes (2% increase). The increase was roughly 6% over the prior year.

The Traffic Impact Fee and Community Facility Fee provide administration funds for the administering of the Traffic Impact Program and Community Facilities Program. These fees are expected to slightly decrease due to a slight decrease in the number of building permits that are expected to be issued in the fiscal year 2025/26. The average number of building permits from the three prior years are taken and then modified based on observations of the building patterns and used for the estimate. The expected number of permits to be issued for fiscal year 2025/26 is roughly 300 residential permits. It is expected the City will see a slight decrease in the number of both residential and nonresidential permits issued in fiscal year 2025/26.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
53 Special Assessment Fund Revenues

DISCUSSION
The Special Assessment Fund revenues are expected to increase by $726 thousand in fiscal year 2025/26. The special assessments are estimated by the expected increase in the number of units
and the expected
rate increase in
special assessments.

Building permits
issued in the prior
fiscal year are used
as an estimate for the
increase in the
number of units. The
2025/26 fiscal year
budget expects a 4%
increase in units and
a 2.69% increase in
rates. The increase in Special Assessment Funds was roughly 4% over fiscal year 2024/25.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

SPECIAL ASSESSMENT FUNDS
Special Tax No. 1: Roads
Interest income 296,258 271,196 200,000 150,000
Special assessments-current 8,673,183 9,154,395 9,721,667 10,171,949 8,969,441 9,425,591 9,921,667 10,321,949
Special Tax No. 2: Public Safety
Other income - 20,000 - -
Special assessments-current 4,396,034 4,662,508 4,952,665 5,208,949 4,396,034 4,682,508 4,952,665 5,208,949
Special Tax No. 3: Parks
Rents/concessions/other 132,180 329,147 118,675 120,000 Special assessments-current 763,639 810,157 859,379 896,863 895,819 1,139,304 978,054 1,016,863
Special Tax No. 4: Public Works
Other income 20,664 74,016 20,000 10,000
Special assessments-current 802,949 851,980 902,755 943,140 823,613 925,996 922,755 953,140
Total Special Assessment Funds 15,084,906 16,173,399 16,775,141 17,500,901 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
AUD 2022/23 AUD 2023/24 PROJECTED
2024/25

PROPOSED
2025/26
Special Assessment Revenues
Special Tax No. 1: Roads Special Tax No. 2: Public Safety Special Tax No. 3: Parks Special Tax No. 4: Public Works Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
54 Special Revenue Fund Revenues

DISCUSSION
The Special Revenues Fund revenues are expected to increase by $618 thousand in fiscal year 2025/26. The development services revenue is estimated by the expected development that will occur in fiscal year 2025/26. The gas tax and measure K revenues the City will receive are based on percentages from the prior fiscal year.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

SPECIAL REVENUE FUNDS
Development Services
Charges for services 72,589 105,316 2,087,714 2,100,000 Gas Tax
Gas tax - - - 601,700
Measure K
Measure K funds - - 595,645 600,000
Total Special Revenue Funds 72,589 105,316 2,683,359 3,301,700 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
55 Enterprise Fund Revenues

DISCUSSION
The Enterprise Funds are expected to increase by $1.4 million in fiscal year 2025/26.

The increase is due to increases in water rates combined with the increase in residential units. A utility rate study was completed in the spring of 2022 and the study calls for a 5% increase in water rates for fiscal year 2025/26. The increase in residential units is the average number of building permits from the three prior years divided by the total number of residential units. The combined increase is roughly 6% across the Enterprise Funds operations. There were also increases in the utility pledged debt component which increased by 2% and increased in residential units. The combined increase for pledged debt was roughly 6%.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

ENTERPRISE FUNDS
Water Operations
Utility service fee-operations 4,879,114 5,712,861 6,136,171 6,538,426 Miscellaneous revenue 95,807 421,700 20,838 26,000
4,974,921 6,134,561 6,157,009 6,564,426
Water Debt Service
Utility service fee-pledged facility 5,024,378 5,473,782 5,681,864 6,163,452 5,024,378 5,473,782 5,681,864 6,163,452
Wastewater Operations
Interest income 34,512 284,824 40,000 10,000
Utility service fee-operations 3,892,324 3,838,372 4,001,662 4,161,729 3,926,836 4,123,196 4,041,662 4,171,729
Wastewater Debt Service
Utility service fee-pledged facility 3,913,735 4,117,147 4,355,125 4,709,286 3,913,735 4,117,147 4,355,125 4,709,286
Storm Operations
Interest income 48,970 323,400 35,000 15,000
Utility service fee-operations 735,998 764,243 775,071 806,074 Storm drain system-NPDES 66,066 185,130 263,400 225,000 851,035 1,272,773 1,073,471 1,046,074
Storm Debt Service
Utility service fee-pledged facility 1,361,180 1,459,724 1,521,620 1,610,420 1,361,180 1,459,724 1,521,620 1,610,420
Total Enterprise Funds 20,052,085 22,581,183 22,830,751 24,265,387 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
56 Restricted Fund Revenues

DISCUSSION
The Restricted Funds revenues are projected to decrease by $1 million in fiscal year 2025/26. The Traffic Impact Fees and Community Facility Fees are primarily responsible for the decrease.

These fees are expected to
decrease due to a decrease
in development from the prior
year. The Traffic Impact Fees
and Community Facility Fees
are increased annually by the
ENR issued in February. The
Traffic Impact Fees and
Community Facility Fees are
expected to decrease by

2.7% for fiscal year 2025/26.

It is expected the City will see a slightly lower number of residential permits issued in fiscal year 2025/26 based on expected development. The decrease that is attributable to the Impact Fee revenue is restricted and pays notes payable when earned, it has no effect on operations.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

RESTRICTED FUNDS
Landscape & Lighting District 1
Special assessments-current 77,432 87,618 61,430 60,000 77,432 87,618 61,430 60,000
Landscape & Lighting District 2
Special assessments-current 44,888 47,133 40,329 41,000 44,888 47,133 40,329 41,000
Landscape & Lighting District 3
Special assessments-current 398,969 423,975 384,237 370,000 398,969 423,975 384,237 370,000
TIF Impact Fee
Interest income 337,156 304,025 50,000 100,000
Impact mitigation fee 3,893,761 3,672,328 6,158,473 6,069,000 4,230,917 3,976,353 6,208,473 6,169,000
CFF Impact Fee
Interest income 374,763 579,088 250,000 100,000
Loan interest 19,335 23,326 6,445 -
Community facility impact 4,702,307 5,430,983 8,051,398 7,271,949 5,096,405 6,033,397 8,307,843 7,371,949
Total Restricted Funds 9,848,611 10,568,476 15,002,312 14,011,949 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
Restricted Funds
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
57 Budgeted Expenditures

DISCUSSION
The fiscal year 2025/26 budgeted expenditures are expected to be $79.9 million, which is a 16.6% increase over the projected fiscal year 2024/25 projected expenditures. The largest
increase is in
the Special
Assessment
Funds. The
increase in
the Special
Assessment
Funds is due
to the
increases in
landscaping,
road
maintenance,
Sheriff, and
fire services.

The $1.5 million increase in fire services is due to the addition of a second fire station and the increased costs associated with that station. The increase in Debt Service is a result of a decrease in the Traffic Impact Fees and Community Facility Fees and an increase in the Utility debt service fees. Traffic Impact and Community Facility fees are expected to decrease due to a decrease in commercial development from the prior year. The increase in the Utility debt service fees is due to annual increase in the fees and increase in residential units. The increases and decreases both affects revenues and expenditures. The decrease in expenditures is offset by the decrease in revenues.

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
Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Capital Projects 3,751,003 1,717,668 5,960,000 8,775,444 Total 82,792,237 42,802,645 68,517,820 79,877,824
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
General Funds Special Assessment Funds Special Revenue Funds Utility Funds Restricted Funds Debt Service
Capital Projects
Expenditures by Fund
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
58 The increase in expenditures is offset by the increase in revenues. All funds received for Debt Service are then paid resulting in a zero effect.

The increase is in Capital Improvement Projects (CIP), is due to large number of projects planned in fiscal year 2025/26. There are a large number of CIP projects planned in fiscal year 2025/26 due to increasing maintenance costs from aging of infrastructure, landscaping increases, and costs associated with the growth of the City.

The major projects planned are pedestrian and traffic safety project, bikeway safety project, and corporation yard improvement project.

The General, Special Revenue, and Utility Funds are expected to increase by a combined $2.3 million in fiscal year 2025/26. There are number of maintenance cost that had to be postponed that require the City’s attention. The water, wastewater, and stormwater infrastructure and facilities require higher maintenance costs due to their age. The City is also experiencing higher maintenance and upkeep costs with roads and parks due to similar issues with the age of infrastructure.

The City is growing and experiencing costs associated with that growth. The City has accepted new parks, streets, and right of ways as new communities and infrastructure is built. These additions require maintenance, which comes at a cost to the City. The City has added roughly 1,700 residences over the last five years. This growth requires additional resources.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
59 Fund Balance Summary
PROPOSED FY 2025/26
Estimated
Fund Balance
6/30/2025 Revenues Transfers In Expenditures
Transfers
Out
Projected
Fund Balance
6/30/2026
General Funds
General Fund 58,991,289 13,521,082 - 4,540,643 12,344,329 55,627,399 Traffic Impact Fee Program 1,163,762 187,704 - 60,000 - 1,291,466 Community Facility Fee Program 1,172,270 224,907 - 50,000 - 1,347,177 Total General Funds 61,327,321 13,933,693 - 4,650,643 12,344,329 58,266,042 Special Assessment Funds
Special Tax No. 1: Roads - 10,321,949 7,995,795 5,594,656 12,723,088 - Special Tax No. 2: Public Safety - 5,208,949 5,115,277 10,324,226 - - Special Tax No. 3: Parks - 1,016,863 5,083,539 5,680,402 420,000 - Special Tax No. 4: Public Works - 953,140 1,250,272 2,153,412 50,000 - Total Special Assessment Funds - 17,500,901 19,444,883 23,752,696 13,193,088 - Capital Projects Fund
Roads 3,004,435 - 1,874,000 1,874,000 - 3,004,435
Equipment & Vehicles 1,150,320 - 4,831,444 4,831,444 - 1,150,320 Public Safety 2,491,860 - - - - 2,491,860
Parks 3,175,573 - 420,000 420,000 - 3,175,573
Public Works 1,399,254 - 50,000 50,000 - 1,399,254
Total Capital Projects 11,221,442 - 7,175,444 7,175,444 - 11,221,442 Special Revenue Funds
Development Services - 2,100,000 2,150,685 4,250,685 - - Gas Tax - 601,700 107,300 709,000 - -
Measure K - 600,000 - - 600,000 -
Total Special Revenue Funds - 3,301,700 2,257,985 4,959,685 600,000 - Enterprise Funds
Water O & M - 6,564,426 1,490,549 6,279,975 1,775,000 - Water Capital Projects 8,790,492 - 1,600,000 1,600,000 - 8,790,492 Water Debt Service - 6,163,452 175,000 6,338,452 - -
Wastewater O & M 752,591 4,171,729 - 3,965,046 140,000 819,274 Wastewater Capital Projects 545,785 - - - - 545,785
Wastewater Debt Service - 4,709,286 140,000 4,849,286 - - Stormwater O & M 1,332,292 1,046,074 - 1,041,428 58,100 1,278,838 Stormwater Capital Projects 2,079,157 - - - - 2,079,157 Stormwater Debt Service - 1,610,420 58,100 1,668,520 - - Total Enterprise Funds 13,500,317 24,265,387 3,463,649 25,742,707 1,973,100 13,513,546 Operating, Utility & Capital Funds 86,049,080 59,001,681 32,341,961 66,281,175 28,110,517 83,001,030 Restricted Funds
Lighting & Landscaping District 1 748,285 60,000 - 32,900 - 775,385 Lighting & Landscaping District 2 202,083 41,000 - 27,800 - 215,283 Lighting & Landscaping District 3 1,784,604 370,000 - 190,000 - 1,964,604 Traffic Impact Fee Fund 12,796,925 6,169,000 - 6,074,000 - 12,891,925 Community Facilities Fee Fund 16,525,006 7,371,949 - 7,271,949 4,231,444 12,393,562 Total Restricted Funds 32,056,903 14,011,949 - 13,596,649 4,231,444 28,240,759 Total Funds 118,105,983 73,013,630 32,341,961 79,877,824 32,341,961 111,241,789 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
60 DISCUSSION
The total fund balance of fiscal year 2025/26 budget is projected to be $111 million, which is a $6.9 million decrease. There majority of the decrease is due to the Special Assessment Funds. The Special Assessment Funds decrease is a result of Capital Improvement Projects, increased maintenance costs due to the aging of infrastructure, landscaping increases, and costs associated with the growth of the City.

The General Fund balance is expected to decrease by $3 million in fiscal year 2025/26.

The General Fund revenues continue to outgrow expenditures year over year, yet the Special Assessment Funds and Utility Funds are requiring subsidies. The General Fund is still projecting a $58 million fund balance at June 30, 2026.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
61 Debt Service Revenue & Payments

DISCUSSION
The Debt Service Fund is the accumulation of funds required for the payment of debt where the City has an obligation. The City’s debt obligations do not have an impact on the City’s operations. The Impact and Enterprise Funds have separate revenue sources (Impact Fees and Pledged Facility Fees) that are dedicated specifically to pay the City’s debt obligation and do not affect operations.

The City’s debt is separated into two categories Governmental Activities and Business Type Activities.

The Governmental Activities debt is due to infrastructure improvements to traffic and community facilities. The debt is paid by the Traffic Impact Fee (TIF) and Community Facilities Fee (CFF). These fees are collected from the issuance of building permits.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
TIF Impact Fee
Interest income 337,156 304,025 50,000 100,000
Impact mitigation fee 3,893,761 3,672,328 6,158,473 6,069,000 CFF Impact Fee
Interest income 374,763 579,088 250,000 100,000
Loan repayment 19,335 23,326 6,445 -
Impact mitigation fee 4,702,307 5,430,983 8,051,398 7,271,949 Water Debt Service
Utility service fee-pledged facility 5,024,378 5,473,782 5,681,864 6,163,452 Wastewater Debt Service
Utility service fee-pledged facility 3,913,735 4,117,147 4,355,125 4,709,286 Storm Debt Service
Utility service fee-pledged facility 1,361,180 1,459,724 1,521,620 1,610,420 Total 19,626,615 21,060,403 26,074,925 26,024,107
Debt Service
TIF Debt payments 3,455,793 2,856,681 6,163,473 6,074,000 CFF Debt payments 3,552,043 470,154 8,051,398 7,271,949 Water Debt payments 21,545,357 4,820,136 5,846,749 6,338,452 Wastewater Debt payments 20,408,223 3,729,208 4,485,590 4,849,286 Storm Debt payments 6,715,494 1,316,577 1,571,988 1,668,520 Total Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Total Expenditures 55,676,910 13,192,756 26,119,198 26,202,207 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
62 Any new structure must pay this fee before building can occur. The fees are used to reimburse developers for traffic infrastructure and community facilities built and dedicated to the City. TIF and CFF fees are estimated by dividing the total estimated cost for all improvements to be completed by the total number of building permits that are expected to complete the community. Once the final building permit is issued by the City the remaining debt is discharged. The Governmental Activities debt payments are in two forms, bonded debt and notes payable. The TIF and CFF fees are collected and used to pay the bond debt first. The remaining funds are used to pay notes payable.

The City expects to collect and pay roughly $13.3 million towards the Governmental Activities debt in fiscal year 2025/26. Approximately $1 million will be paid towards the bond’s principal, $4.9 million will be paid to lower the notes payable balance and $7.4 million will be paid in interest.

The Business Type Activities debt was used to pay for utility infrastructure needs including the wastewater plant, water treatment plant, water conduit, storm drain basins, water storage units, pumping stations, trunk liens, and booster pumps. The water, wastewater, and stormwater debt payments are in two forms, bonded debt and notes payable. Pledged facility component fees are used to pay the utility debt and are collected through utility bills. The pledged fees are collected and used to pay the bond debt first. The remaining funds are used to pay notes payable. The City expects to collect and pay roughly $12.9 million towards the Business Type Activities debt in fiscal year 2025/26. Approximately $1.8 million will be paid towards the bond’s principal and $8 million will be paid in interest.

In 2019, the City refinanced its 2007 and 2011 series bonds and issued $10 million in new bonds that were used to retire outstanding notes payable. The City had two revenue bonds from the refinancing, the 2019A series and the 2019B series. The bonds were rated BBB- by S&P when issued. More recently the 2019A series has been upgraded to an A- and the 2019B series has been upgraded to a BBB+ rating. The Balance
Governmental Activities June 30, 2024
Lease revenue bonds 47,925,000
Premium 5,330,272
Pledged notes payable 62,635,335
Long-Term Debt 115,890,607
Balance
Business-type Activities June 30, 2024
Revenue bonds 200,395,000
Premium 13,641,248
Pledged notes payable -
Long-Term Debt 214,036,248
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
63 2019A series and the 2019B series have a combined $29.5 million remaining as of December 31, 2023. The last scheduled bond payment is December 1, 2041.

In 2020, the City issued new enterprise bonds in the amount of $128.6 million that were used to retire outstanding notes payable. These revenue bonds were issued in two series. The bonds were rated AA by S&P. The 2020A series and the 2020B series have combined $128.1 million remaining as of December 31, 2023. The last scheduled bond payment is December 1, 2055.

In 2021, the City issued lease revenue bonds in the amount of $49.7 million that were used to retire outstanding notes payable. The lease revenue bonds were issued in one series. The bonds were rated AA by S&P. The 2021 Lease Revenue Bonds have a total of $47.9 million remaining as of December 31, 2023. The last scheduled bond payment is October 1, 2051.

In 2023, the City issued new utility bonds in the amount of $42.8 million that were used to retire outstanding notes payable. The utility revenue bonds were issued in one series.

The bonds were rated AA by S&P. The 2023 Revenue Bonds have a total of $42.8 million remaining as of December 31, 2023. The last scheduled bond payment is December 30, 2052.

The City will pay $2.8 million in principal payments and $15.4 million in interest payments for a total of $18.2 million in total bond payments for the 2025/26 fiscal year.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
64 Summary of Transfers

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26
Transfers In
Special Tax # 1 - Roads - - 967,305 7,995,795
Special Tax # 2 - Public Safety 2,554,769 2,829,604 3,615,298 5,115,277 Special Tax # 3 - Parks 2,629,289 2,082,526 3,421,664 5,083,539 Special Tax # 4 - Public Works 703,395 972,888 72,171 1,250,272 Development Services 548,362 772,547 2,510,169 2,150,685 Gas Tax - - - 107,300
Water O & M 1,562,359 1,049,028 1,057,720 1,490,549
Stormwater O & M 218,483 - - -
Roads Capital Projects 2,045,889 1,370,000 1,725,000 1,874,000 Equipment/Vehicles Capital Proj 255,000 30,000 655,000 4,831,444 Public Safety Capital Projects 1,455,000 2,085,339 700,000 - Parks Capital Projects 1,163,000 280,000 420,000 420,000 Public Works Capital Projects 750,000 770,000 450,000 50,000 Water Capital Projects 2,525,199 1,581,000 1,580,000 1,600,000 Wastewater Capital Projects 369,000 275,000 - -
Stormwater Capital Projects 575,000 80,000 430,000 -
Water Debt Service - - 164,885 175,000
Wastewater Debt Service - - 130,465 140,000
Stormwater Debt Service - - 50,368 58,100
Total Transfers In 17,354,745 14,177,933 17,950,045 32,341,961 Transfers Out
General Fund 2,329,204 1,821,576 4,535,194 12,344,329
Special Tax # 1 - Roads 7,963,342 7,285,018 8,893,488 12,723,088 Special Tax # 2 - Public Safety 1,455,000 1,085,339 700,000 - Special Tax # 3 - Parks 1,163,000 280,000 420,000 420,000 Special Tax # 4 - Public Works 975,000 770,000 450,000 50,000 Measure K - - 595,645 600,000
Water O & M 2,525,199 1,581,000 1,744,885 1,775,000
Wastewater O & M 369,000 275,000 130,465 140,000
Stormwater O & M 575,000 80,000 480,368 58,100
Community Facilities Fee Fund - 1,000,000 - 4,231,444
Total Transfers Out 17,354,745 14,177,933 17,950,045 32,341,961 Net Transfers - - - -
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
65 FY 2025/26 Budgeted Transfers

TRANSFERS IN TRANSFERS OUT
Operating Subsidies
General Fund - 11,744,329
Special Tax No. 1: Roads 7,995,795 -
Development Services 2,150,685 -
Gas Tax 107,300 -
Water O & M 1,490,549 -
Special Tax No. 1: Roads - 11,449,088
Special Tax No. 2: Public Safety 5,115,277 -
Special Tax No. 3: Parks 5,083,539 -
Special Tax No. 4: Public Works 1,250,272 -
Water O & M - 175,000
Wastewater O & M - 140,000
Stormwater O & M - 58,100
Water Debt Service 175,000 -
Wastewater Debt Service 140,000 -
Stormwater Debt Service 58,100 -
Total Operating Transfers 23,566,517 23,566,517
CIP Transfers
General Fund - 600,000
Special Tax No. 1: Roads - 1,274,000
Special Tax No. 3: Parks - 420,000
Special Tax No. 4: Public Works - 50,000
Community Facilities Fee Fund - 4,231,444
Measure K - 600,000
CIP - Roads 1,874,000 -
CIP - Equipment & Vehicles 4,831,444 -
CIP - Parks 420,000 -
CIP - Public Works 50,000 -
Water O & M - 1,600,000
Water Capital Projects 1,600,000 -
Total CIP Transfers 8,775,444 8,775,444
Total Transfers 32,341,961 32,341,961
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
66 FY 2025/26 Expenditures by Fund

PERSONNEL

SERVICES

OPERATIONS &

MAINTENANCE

CAPITAL
OUTLAY
DEBT

SERVICE TOTAL
General Funds
General Fund 2,371,836 2,168,807 600,000 - 5,140,643
Traffic Impact Fee Program - 60,000 - - 60,000
Community Facility Fee Program - 50,000 - - 50,000
Total General Funds 2,371,836 2,278,807 600,000 - 5,250,643 Special Assessment Funds
Special Tax # 1 - Roads 1,038,048 4,556,608 1,274,000 - 6,868,656 Special Tax # 2 - Public Safety - 10,324,226 - - 10,324,226 Special Tax # 3 - Parks 1,859,924 3,820,478 420,000 - 6,100,402 Special Tax # 4 - Public Works 598,820 1,554,592 50,000 - 2,203,412 Total Special Assessment Funds 3,496,792 20,255,904 1,744,000 - 25,496,696 Special Revenue Funds
Development Services 2,123,636 2,127,049 - - 4,250,685
Gas Tax - 709,000 - - 709,000
Measure K - - 600,000 - 600,000
Total Special Revenue Funds 2,123,636 2,836,049 600,000 - 5,559,685 Utility Funds
Water O & M 960,612 5,319,363 - - 6,279,975
Water Capital Projects - - 1,600,000 - 1,600,000
Water Debt Service - - - 6,338,452 6,338,452
Wastewater O & M 924,354 3,040,692 - - 3,965,046
Wastewater Capital Projects - - - - -
Wastewater Debt Service - - - 4,849,286 4,849,286
Stormwater O & M 316,074 725,354 - - 1,041,428
Stormwater Capital Projects - - - - -
Stormwater Debt Service - - - 1,668,520 1,668,520
Total Utility Funds 2,201,040 9,085,409 1,600,000 12,856,258 25,742,707 Operating, Utility & Capital Funds 10,193,304 34,456,169 4,544,000 12,856,258 62,049,731 Restricted Funds
Lighting & Landscaping Dist. 1 - 32,900 - - 32,900
Lighting & Landscaping Dist. 2 - 27,800 - - 27,800
Lighting & Landscaping Dist. 3 - 190,000 - - 190,000
Traffic Impact - - - 6,074,000 6,074,000
Community Facilities - - 4,231,444 7,271,949 11,503,393 Total Restricted Funds - 250,700 4,231,444 13,345,949 17,828,093 Total Funds 10,193,304 34,706,869 8,775,444 26,202,207 79,877,824 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
67 FY 2025/26 Expenditures by Department

PERSONNEL

SERVICES

OPERATIONS &

MAINTENANCE

CAPITAL
OUTLAY
DEBT

SERVICE TOTAL

DEPARTMENTS
Administration 1,019,204 328,598 - - 1,347,802
Legal Services - 30,000 - - 30,000
District Counsel - - - - -
Human Resources - - - - -
Risk Management - - - -
Finance 212,242 149,429 - - 361,671
Customer Service 814,274 998,139 - - 1,812,413
Information Technology 30,060 9,693 - - 39,753
Public Works 1,588,589 1,695,718 - - 3,284,307
Regulatory/Compliance 517,555 572,534 - - 1,090,089
Impact Fee Programs - 50,000 - - 50,000
Operations and Maintenance 2,732,879 16,798,678 - - 19,531,557 Community Development 1,495,493 3,095,858 - - 4,591,351 Code Compliance 715,158 115,073 - - 830,231
Recreation 1,067,850 612,760 - - 1,680,610
Library - 211,163 - - 211,163
Law Enforcement - 4,933,818 - - 4,933,818
Fire & Emergency Service - 5,080,408 - - 5,080,408
Emergency Preparedness - 25,000 - - 25,000
Debt Service - - - 26,202,207 26,202,207
Capital Improvement Program - - 8,775,444 - 8,775,444
Totals 10,193,304 34,706,869 8,775,444 26,202,207 79,877,824 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
68 Proposition 4 Analysis
The State of California passed Proposition 4, the Gann Initiative in November of 1979.

The proposition placed a limit on the amount of revenue that can be spent based on the base 1978/1979 fiscal year. The limit adjusts annually based on population growth and inflation.

In June of 1990 the State of California passed Proposition 111 that provides a new Gann limit for appropriations. The proposition now considers the increase in service demand due to commercial growth.

The appropriation limit for the 2025/26 fiscal year is $31,765,559. This is roughly $533 thousand more than the anticipated City revenues subject to the limit for the 2025/26 fiscal year.

Proceeds of Taxes to City
Property Tax $9,619,000
Special Taxes 18,073,589
Sales Tax (including in-lieu fees) 174,200
Property Transfer Tax 611,400
Off Highway Vehicle License 700
Gas Tax (2013) 201,800
Gas Tax (2015) 149,200
Gas Tax (2016) 85,700
Gas Tax (2017) 203,100
Gas Tax (2017.5) 6,000
Subtotal 29,124,689
Interest Earnings 26,600
Total 29,151,289
Cost of Living Factor 2.63%
Population Growth 6.18%
2024/2025 Provisional Limit 31,765,559
2024/2025 Fiscal Year Appropriation Limit
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
69 Department Budgets
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
70 Expenditures by Department & Division

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

PERSONNEL
Administration Department 870,669 1,292,352 1,845,817 2,744,836 City Council Division 192,359 239,264 332,217 380,334
Human Resource Division 19,989 25,355 245,742 301,392
Risk Management Division 9,989 12,681 12,934 15,863
Finance Department 1,136,100 1,414,417 1,280,443 1,792,530 Customer Service Division 143,531 190,242 188,445 447,672 Information Technology Division 98,422 111,742 53,316 65,106 Public Works Department 434,431 735,781 716,312 873,375 Community Development Department 1,153,764 1,251,928 1,589,264 1,097,083 Regulatory & Compliance Division 200,034 222,718 234,658 301,034 Code Compliance Division 450,408 505,707 670,430 614,512 Operations & Maintenance Department 863,292 947,269 918,937 1,502,484 Recreation Department 290,890 338,453 377,271 587,083
Total Personnel 5,863,878 7,287,909 8,465,786 10,723,304

OPERATIONS AND MAINTENANCE
Administration Department 349,003 541,208 547,468 679,000 Legal Service Division 282,067 379,543 368,343 410,000
City Council Division 68,540 22,656 219,560 132,000
Human Resource Division 85,401 25,972 67,500 125,950
Risk Management Division 492,710 694,375 808,000 1,031,300 Finance Department 448,072 430,719 489,044 624,500
Customer Service Division 512,246 555,063 660,837 735,614 Information Technology Division 144,355 258,483 324,297 407,000 Public Works Department 240,983 400,352 668,040 1,183,550 Regulatory & Compliance Division 119,749 129,921 339,500 416,000 Impact Fee Programs Division - - 25,000 50,000
Operations & Maintenance Department 8,563,082 10,622,465 14,201,925 15,917,586 Community Development Department 380,911 516,487 2,105,285 2,902,500 Code Compliance Division 19,712 13,865 33,893 43,000
Recreation Department 235,660 220,891 243,080 268,480
Library Services 185,025 193,867 195,275 211,163
Law Enforcement Services 2,976,936 3,048,114 4,057,399 4,933,818 Fire & Emergency Medical Services 2,985,633 3,555,470 3,599,390 5,080,408 Emergency Preparedness - - - 25,000
Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Capital Projects 3,751,003 1,717,668 5,960,000 8,775,444 Total Operations and Maintenance 77,517,998 36,519,875 61,033,034 70,154,520 Developer Allocation (589,639) (1,005,139) (981,000) (1,000,000) Total 82,792,237 42,802,645 68,517,820 79,877,824
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
71 Administration Department

DEPARTMENT SUMMARY
The Administration Department is responsible for City expenses that are not associated with a specific department or division. These include building maintenance, rent, office supplies, City studies, City training, and City memberships. The Administration Department oversees the Legal Services Division, City Council Division, Human Resources Division, Risk Management Division, Finance Division, Customer Service Division, and Information Technology Division.

Administrative
Services Director
Finance Director
Accounting Manager
Senior Accountant Customer Service
Supervisor
Office Assistant I & II
(3)
Human Resources
Manager
Information
Technology
Contract
Accountant I (3)
Administrative
Assistant
Accounting
Technician (2)
Administrative
Assistant (.3 FTE)
Senior Management
Analyst
Management
Analyst

GOALS AND OBJECTIVES
Human Resources
- Implement an online employment application process compatible with platforms used by surrounding jurisdictions
- Schedule, review, and track timeliness of Employee Performance Reports Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
72 - Implement an overall human resources information system to track Human Resource activities including performance evaluations, training, and dates of salary changes
- Establish onboarding processes and human resources training for incoming employees
- Post current position grades and salary schedules on City website - Update personnel policy as needed
- In connection with the Class and Compensation Study, update job descriptions and salary ranges to be consistent with current job duties and needs of the City - Develop a policy for progression within a job series
- Develop and conduct training programs for Human Resource topics ranging from supervision, disciplinary actions, and workers’ compensation - Identify training and continuing education opportunities for staff - Establish career paths for employees and coordinate and encourage training and education to accomplish these goals
- Negotiate Memoranda of Understanding, side letters, and meet and confer sessions with union representing General and Supervisor/Confidential employees - Provide compensation information for compilation of annual budget and annual audit
- Develop a revised evaluation format for unrepresented employees that includes compliance with administrative policies such as staff evaluations, purchasing, payroll reporting, and risk management.
- Develop a revised evaluation format for represented employees; discuss as need with SEIU.

Risk Management
- Assist in assessments related to changes in City operations as required in Section 120 of the City’s Financial Management Manual, “Risk Assessments.” Such changes include expanding recreation programs, encroachment permits, facilities rentals, understaffing, personnel policies, public safety operations, road safety, crossing guard operations, adopted policies and procedures, regulatory requirements for utility plants, new revenue sources and permitting and licensing activities, and training of new supervisory/management staff. - Perform a risk assessment identifying areas of greatest concern in terms of potential financial loss, probability and possibility.
- Develop a policy and procedure manual for risk management, including processes for reporting incidents, staff responsibilities, timelines, follow-up, and reporting. - Provide training for council and staff in the implementation of plans to reduce loss and liability.
- Develop a comprehensive inventory of City assets, including the current condition of the assets.
- Develop a workplace safety program, including personal security, field work and use of City vehicles.
- Monitor vehicle activity using Global Positioning Software and provide reports to supervisors, Human Resources and emergency response personnel as appropriate.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
73 - Provide training for supervisors to minimize risk of employment-related claims.

Finance
- Implement accounts receivable and fixed assets modules. - Identify appropriate training opportunities.
- Investigate and develop new revenue generation opportunities. - Complete fiscal policy manual with emphasis on purchasing, internal controls, and TIF/CFF/CIP reimbursements.
- Assist with TIF/CFF updates and reporting.
- Monitor and adjust developer deposit and billing procedures. - Continue work on OpenGov templates, stories, and year-over-year analysis. - Assist with incorporation effort.
- Issue Comprehensive Annual Financial Reports within 6 months of year end. - Issue AB1600 report within 6 months of year end.

Customer Service
- Develop a phone tree to efficiently redirect incoming calls. - Review and update as needed an informative frequently asked questions document for customers.
- Provide a self-service kiosk for routine customer service issues and requests, park reservations, and other services.
- Develop and supply customers and residents with informative brochures and printed materials.
- Evaluate and implement different payment options for utility accounts as they become available.
- Implement State-mandated requirements such as SB998.
- Evaluate and plan for possible change in billing/collection provider.

Information Technology
- Identify and provide tools to enhance employee productivity. - Analyze the nature and cost of ISD services.
- Coordinate assignments for on-site ISD services.
- Develop policies concerning use of technology including remote access, use of City equipment, and email retention.
- Explore using Laserfiche or other state-of-the-art document imaging systems. - Evaluate use of the cloud for records storage and address any privacy concerns or vulnerabilities in the system.
- Develop and implement an electronic form submission system. - Develop a file structure for the I drive and Laserfiche documents. - Design the website so it is informative, up-to-date, easy to navigate and maintain, internally consistent and pleasing to view.
- Ensure that all links work properly and remove stale-dated items. - Engage departments in providing content to the website and other communication platforms; each department will assign a social media liaison.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
74 - Offer on-line fillable forms for a variety of services including variances, nonstandard vehicle parking, and building permit applications. - Post information and notices of community concern, such as COVID-19 updates, road closures, and development activity.

City Clerk
- Provide support to the City Council
- Ensure compliance with legal requirements.
- Publish City Council and commission agendas in accordance with legal deadlines and transparency standards.
- Ensure secure storage and accurate archiving of City documents. - Integrate newly adopted ordinances into the Municipal Code in a timely manner. - Conduct a comprehensive review of current records management practices. - Update the Records Retention Policy to align with state compliance regulations. - Process and respond to public records requests promptly and in accordance with state laws.
- Establish deadlines for candidate filing, ballot measures, and other electionrelated activities.

PERFORMANCE MEASURES
Measurement
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Projected
Initiate and execute Prop 218
process for utility rates by 6/30/2022
% 100% N/A N/A N/A
“ ”
Obtained for ACAFR
% 100% 100% 100% 100%
Issue ACAFR by December 31 % 100% 100% 100% 100%
Issue of Annual Budget by June 30 % 100% 100% 100% 100% Distribute monthly budget reports % 100% 100% 100% 100% Monthly developer billed % 100% 100% 100% 100%
Awards received for Budget and
ACAFR
# 3 3 3 3
Water accounts managed # 7,175 7,286 7,417 7,630
Monthly agendas prepared % 100% 100% 100% 100%
Minutes prepared % 100% 100% 100% 100%
Number of full-time hires # 6 5 8 9
Number of full-time leaving # 3 1 1 4
Legislative records processed # - - - 118
City Council Agendas Processed # - - - 25
FPPC Filings Process # - - - 7
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
75 Administration Department

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
Builders Fund 1,406 1,554 - -
Special Tax # 1 - Roads 59,046 70,391 95,681 333,936
Special Tax # 3 - Parks 20,199 24,217 31,629 109,807
Special Tax # 4 - Public Works 39,747 47,290 63,652 150,569 Utility Funds
Water O & M 169,234 251,004 66,182 298,697
Wastewater O & M 169,234 251,004 66,182 298,704
Stormwater O & M 54,276 78,169 66,182 156,089
Total 513,142 723,629 389,508 1,347,802

EXPENDITURES
Personnel Services
Personnel 870,669 1,292,352 1,845,817 2,744,836
Labor allocation (473,539) (739,972) (1,555,139) (1,725,632) Total Personnel Services 397,130 552,380 290,678 1,019,204 Operations and Maintenance
Office supplies 8,856 10,451 17,931 18,000
Office expense - postage 1,354 19,792 2,781 5,000
Office - equipment 1,323 - 12,368 15,000
Memberships 34,276 31,161 60,075 60,000
Rents & leases - equipment 11,308 13,526 15,959 17,000
Trans/travel training 3,090 4,963 10,056 10,000
Professional svs 123,309 298,112 237,417 350,000
Food - 223 5,048 5,000
Utilities 66,487 66,178 81,116 87,000
Maintenance 20,347 25,458 27,513 29,000
Landscaping 6,746 7,071 9,818 11,000
Technology/web/computers 324 4,490 10,463 10,000
Security services 6,666 5,715 3,549 5,000
Household exp - janitorial svc 64,917 54,068 53,374 57,000 Overhead allocation (232,991) (369,959) (448,638) (350,402) Total Operations and Maintenance 116,012 171,249 98,830 328,598 Total 513,142 723,629 389,508 1,347,802
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
76 Administration Department

BUDGET HIGHLIGHTS
- $29,000 is included for Town Hall maintenance.
- $57,000 is included for Town Hall janitorial and related expenses. - $350,000 is included for outside consulting.
- $87,000 is included for Town Hall utilities.

ACCOMPLISHMENTS
General Administration
- Collaborated with and engaged staff in achievement of shared values:
transparency, accountability and service.
- Developed baseline goals and objectives for department in alignment with Strategic Plan for fiscal years 2025/2026 through 2026/2027. - Cultivated constructive, cooperative, and collaborative relationships with developers to envision and right-size improvements.
- In collaboration with developers and our legal team, established a Community Facility District (CFD) to expedite funding and construction of public infrastructure in future neighborhoods, ensuring timely delivery of parks and other facilities before full neighborhood buildout.
- Appointed a Communications Officer to strengthen communication with residents, respond to inquiries, and build relationships with local journalists and stakeholders to improve the flow of information.

Risk Management
- Joined the Municipal Pooling Authority, a joint powers agency that better meets the City’s risk management needs related to general liability and employmentrelated issues.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
77 - Assumed accountability for in-house risk management, overseeing all risk, compliance and safety programs, and ensuring all training, best practices and mandated audits are being conducted.
- Coordinated with Human Resources to identify and assign appropriate training opportunities and monitor completion.
- Developed tracking system to log incidents, police reports, insurance information, claims made, and reimbursement received.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
78 - Managed equipment and phone systems.
- Coordinated various software systems including implementation, integration, upgrades, and training.
- Negotiated a Memoranda of Understanding for Information technology services with San Joaquin County.

Established an eblast subscription to sign up for topics of interest. - Developed a variety of on-line fillable PDFs forms with options to pay to facilitate applications and processing.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
79 Legal Service Division

DIVISION SUMMARY
The Legal Service Division provides comprehensive legal services to the City Council, City Manager and departments. The division provides legal advice and research on municipal law matters. The division approves contracts, ordinances, resolutions, and other documents. The division advises on personnel matters and represents the City in litigation and before administrative bodies.

BUDGET HIGHLIGHTS
- $410,000 is included for the City’s legal counsel.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Utility Funds
Water O & M 81,210 28,312 10,083 30,000
Total 81,210 28,312 10,083 30,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Legal services 282,067 379,543 368,343 410,000
Overhead allocation (200,857) (351,231) (358,260) (380,000) Total Operations and Maintenance 81,210 28,312 10,083 30,000 Total 81,210 28,312 10,083 30,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
80 City Council Division

DIVISION SUMMARY
The City Clerk plays a vital role in supporting open and effective local government. As the official recordkeeper for the City, the City Clerk manages City Council meetings, ensures compliance with public transparency laws, maintains the integrity of City records, and provides administrative support to the City Manager and City Council. The City Clerk is also responsible for administering local elections, coordinating FPPC filings, and supporting the codification and accessibility of the Municipal Code.

BUDGET HIGHLIGHTS
- $57,000 is included for City’s public relationship software programs. - $50,000 is included for travel, training, and conferences. - $10,000 is included for consulting services.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund - - - -
Total - - - -

EXPENDITURES
Personnel Services
Personnel 192,359 239,264 332,217 380,334
Labor allocation (192,359) (239,264) (332,217) (380,334) Total Personnel Services - - - -
Operations and Maintenance
Office expense-supplies 882 1,054 2,738 4,000
Trans/travel training - - 45,000 50,000
Professional services - 1,946 5,000 10,000
Technology/web/computers 34,757 14,480 56,000 57,000
Publications & legal notices 1,289 983 1,200 1,500
Elections 27,736 - 102,357 -
Software & related licenses 1,553 1,850 3,000 3,500
Food 2,323 2,343 4,265 6,000
Overhead allocation (68,540) (22,656) (219,560) (132,000) Total Operations and Maintenance - - - -
Total - - - -
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
81 Human Resource Division

DIVISION SUMMARY
The Human Resource Division is responsible for personnel recruitment and retention, salary and benefit administration, performance evaluation administration, union negotiations, classification and position allocations, and personnel cost estimates. The division also oversees the City’s benefit plans.

BUDGET HIGHLIGHTS
- $85,000 is included for human resource consulting.
- $30,000 is included for the recruitment of new employees. - $2,500 is included for pre-employment testing and screening.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund - - - -
Total - - - -

EXPENDITURES
Personnel Services
Personnel 19,989 25,355 245,742 301,392
Labor allocation (19,989) (25,355) (245,742) (301,392)
Total Personnel Services - - - -
Operations and Maintenance
Trans/travel training - - - 2,500
Clothing & personal supplies - - - 2,000
Pre-employment testing 128 699 1,300 2,500
Human resources consulting 57,339 225 65,000 85,000
Publications & legal notices 1,513 995 1,200 3,500
Recruitment 26,421 24,053 - 30,000
Equipment - office - - - 450
Overhead allocation (85,401) (25,972) (67,500) (125,950) Total Operations and Maintenance - - - -
Total - - - -
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
82 Risk Management Division

DIVISION SUMMARY
The Risk Management Division oversees contracts involving general, liability, and fire insurance, development of safety training programs as well as employment-related programs such as supervision and workers' compensation.

BUDGET HIGHLIGHTS
- $118,800 is included for Workers' Compensation.
- $125,000 is included for risk management consulting.
- $787,500 is included for insurance.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund - - - -
Total - - - -

EXPENDITURES
Personnel Services
Personnel services 9,989 12,681 12,934 15,863
Labor allocation (9,989) (12,681) (12,934) (15,863)
Total Personnel Services - - - -
Operations and Maintenance
Professional Services 428 85,422 75,000 125,000
Insurance - workers comp 40,254 57,615 108,000 118,800
Insurance - fire & liability 452,028 551,338 625,000 787,500 Overhead allocation (492,710) (694,375) (808,000) (1,031,300) Total Operations and Maintenance - - - -
Total - - - -
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
83 Finance Division

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
Builders Fund 17,272 22,983 - -
Special Assessment Funds
Special Tax # 1 - Roads 21,852 21,999 23,000 26,000
Special Tax # 2 - Public Safety 21,852 21,999 23,000 26,000 Special Tax # 3 - Parks 7,636 8,102 9,000 10,500
Special Tax # 4 - Public Works 8,029 8,520 9,500 11,000 Restricted Funds
Lighting & Landscaping District 1 566 597 700 900
Lighting & Landscaping District 2 403 403 600 800
Lighting & Landscaping District 3 3,690 3,731 4,000 5,000 Utility Funds
Water O & M 271,383 352,200 95,641 117,746
Wastewater O & M 271,353 352,185 95,141 116,946
Stormwater O & M 102,255 133,387 38,057 46,779
Total 726,291 926,106 298,639 361,671

EXPENDITURES
Personnel Services
Personnel 1,136,100 1,414,417 1,280,443 1,792,530
Labor allocation (624,298) (757,362) (1,110,040) (1,580,288) Total Personnel Services 511,802 657,055 170,403 212,242 Operations and Maintenance
Memberships 1,749 1,523 2,200 2,500
Trans/travel training 2,163 - 5,000 5,000
Auditors drct assmt serv chg 64,058 65,366 70,300 81,000 Tax administrative charges 128,380 111,587 117,038 127,000 Financial/mgt services 84,684 87,626 97,000 165,000
Special departmental expense 1,306 3,344 1,200 3,000
Software & related licenses 15,296 16,966 20,000 21,000 County indirect cst charges-a-87 150,436 141,737 171,736 215,000 Taxes & assessments - 2,570 2,570 3,000
Equipment - - 2,000 2,000
Overhead allocation (233,583) (161,668) (360,808) (475,071) Total Operations and Maintenance 214,489 269,051 128,236 149,429 Total 726,291 926,106 298,639 361,671
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
84 Finance Division

DIVISION SUMMARY
The Finance Division is responsible for the safekeeping, management, and accounting of the City’s financial assets. The Finance Division prepares, manages, and maintains financial documents in conformity with the Governmental Accounting Principles and in compliance with the federal, state, and local regulations. The division’s responsibilities include accounting services, accounts receivable, accounts payable, overseeing payroll, utilities, and financial reporting. The division develops and maintains financial planning and control through the production of the annual City Budget, Capital Improvement Program, and Audited Financial Statements.

BUDGET HIGHLIGHTS
- $127,000 is included for San Joaquin County collection charge for property taxes.
- $81,000 is included for San Joaquin County Auditors direct assessment service charges.
- $215,000 is included for San Joaquin County indirect charges. - $165,000 is included for the annual audit of the City’s financial statements, OpenGov, and special consulting projects.
- $21,000 is included for the accounting software Tyler Technologies.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
85 Customer Service Division

DIVISION SUMMARY
The Customer Service Division is responsible for overseeing the utility billing service.

The division provides in-house customer service by accepting payments, setting up services, and providing information regarding the utility accounts. The division follows state and Council approved procedures for collecting delinquent accounts.

BUDGET HIGHLIGHTS
- $727,000 is included for utility billing services.
- $2,914 is included for postage to utility customers.
- $2,600 is included for office supplies for liens and notices.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 108,457 137,546 178,098 276,519
Utility Funds
Water O & M 335,453 395,955 487,132 770,590
Wastewater O & M 265,851 308,207 372,005 653,514
Stormwater O & M 61,810 72,167 69,292 111,790
Total 771,571 913,875 1,106,527 1,812,413

EXPENDITURES
Personnel Services
Personnel 143,531 190,242 188,445 447,672
Labor allocation 56,192 83,660 144,162 366,602
Total Personnel Services 199,723 273,902 332,607 814,274 Operations and Maintenance
Printing 5,777 185 1,428 3,100
Office expense-supplies 683 144 2,328 2,600
Postage - 1,642 1,688 2,914
Utility billing/metering 505,786 553,092 655,393 727,000 Overhead allocation 59,602 84,910 113,083 262,525
Total Operations and Maintenance 571,848 639,973 773,920 998,139 Total 771,571 913,875 1,106,527 1,812,413
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
86 Information Technology Division

DIVISION SUMMARY
The Information Technology Division is responsible for the technology needs of the City.

The division oversees technology devices, software applications, networks, servers, and communications. The division maintains the security of the network and servers. It also maintains the City’s accounting and GIS databases. The division maintains all technology ensuring the City is able to serve the City’s residents.

BUDGET HIGHLIGHTS
- $220,000 is included for San Joaquin County data processing direct charges. - $25,000 is included for leased equipment from San Joaquin County. - $61,000 is included for the City’s network, internet, and telephone services.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Utility Funds
Water O & M 19,837 24,605 8,928 13,251
Wastewater O & M 19,837 24,605 8,928 13,251
Stormwater O & M 5,514 6,837 8,928 13,251
Total 45,188 56,047 26,784 39,753

EXPENDITURES
Personnel Services
Personnel 98,422 111,742 53,316 65,106
Labor allocation (63,548) (68,956) (33,327) (35,046)
Total Personnel Services 34,874 42,786 19,989 30,060
Operations and Maintenance
Communication 35,484 54,293 57,064 61,000
Comm svs-cell phone 11,283 11,242 13,538 15,000
Rents & leases-equipment 7,223 11,194 15,632 25,000
Technology/web/computers 28,926 20,775 20,456 25,000
Software & related licenses 31,149 45,926 47,926 51,000 Data processing charges - 115,053 169,681 220,000
Equipment - office 30,290 - - 10,000
Overhead allocation (134,041) (245,222) (317,502) (397,307) Total Operations and Maintenance 10,314 13,261 6,795 9,693 Total 45,188 56,047 26,784 39,753
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
87 Public Works Department

DEPARTMENT SUMMARY
The Public Works Department is responsible for the design, construction, management, and maintenance of the City’s infrastructure and public facilities. The department oversees both privately and publicly funded projects and works to ensure that the City’s assets are safe, reliable, and well maintained. Public Works is organized into four divisions:
- Engineering – Oversees transportation planning, traffic operations, capital improvement projects, and development review.
- Operations and Maintenance – Manages the maintenance of streets, parks, sidewalks, public buildings, and other City-owned assets. - Utilities Management – Oversees the City’s water, wastewater, and solid waste systems, including environmental programs and compliance with regulations such as SB 1383.
- Construction Engineering – Manages construction inspections, project administration, and the acceptance of new infrastructure from development projects.

Public Works supports the City’s growth and quality of life through effective project delivery, asset management, and public service.

Engineer I/II/III
Sr. Public Works
Inspector
Public Works
Director / City
Engineer
Operations &
Maintenance
Superintendent
Landscape
Supervisor
Maintenance
Worker I/II (2)
Program Manager
Sr. Maintenance
Worker (2) Engineer V
Engineer V
Intern
(.25 FTE)
Engineer I/II/III
Construction
Manager
Utilities Manager
Deputy City Manager
Engineer V
Management
Analyst
Administrative
Secretary
Administrative
Assistant
Program Manager Facility Supervisor
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
88 GOALS AND OBJECTIVES
Public Works
- Maintain regulatory compliance across all Public Works operations through standardized administrative procedures, permit processing, and document management.
- Foster continuous staff development through technical training, certifications, and cross-training to ensure operational continuity.
- Strengthen community engagement through educational campaigns, customer service enhancements, and public outreach initiatives.
- Promote transparency, efficiency, and fiscal responsibility through standardized contract management, procurement processes, and comprehensive budget tracking.
- Support interdepartmental collaboration and enhance emergency preparedness through improved internal communication and training programs.

Engineering
- Implement a formal comprehensive Traffic Calming Program. - Deploy innovative and smart traffic management solutions, including the development of a Traffic Management Center.
- Establish key performance indicators (KPIs) for reporting and monitoring traffic issues.
- Create a transparent, interactive tracking system for transportation projects. - Pursue federal and state transportation grant opportunities. - Annually revise and maintain construction standard specifications and details. - Finalize the Memorandum of Understanding with ValleyLink. - Advance the Multi-Modal Regional Mobility Hub project. - Launch and manage local transit services.
- Implement the City’s 5-Year Capital Improvement Program. - Develop phased implementation for small cell and 5G/6G wireless systems. - Deploy a formalized pavement management system to optimize maintenance and extend roadway life.
- Strengthen document management and archiving systems, including expanded use of GIS for project planning and asset management.
- Actively pursue grant funding to support infrastructure improvements. - Improve coordination of permit and regulatory compliance for Public Works projects.

Operations & Maintenance
- Launch and enforce the City’s tree program and tree ordinance. - Establish KPIs for customer service response tracking through GOGov platform. - Improve fleet operations by transitioning to low-emission vehicles and enhancing preventative maintenance programs.
- Implement and maintain an asset management system for tracking facility condition, maintenance needs, and depreciation.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
89 - Develop a 10–25-year plan for asset management and growth projections, including equipment, facilities, and staffing.
- Prioritize park maintenance and equity by integrating needs into the Capital Improvement Program, including evaluating artificial turf use for sports fields. - Sustain street tree maintenance and sidewalk repair programs. - Oversee customer service operations and efficiently manage residential work requests.
- Manage maintenance contracts for landscaping, urban forestry, street and park lighting, traffic signals, sidewalks, pedestrian bridges, and recreational facilities. - Maintain public structures, HVAC, lighting, security systems, sound walls, and fencing.
- Administer janitorial services for public buildings.
- Conduct regular roadway repairs and maintain signage and pavement markings. - Enhance community aesthetics through graffiti abatement and public facility upkeep.

Utilities Management
- Ensure a sustainable and reliable water supply.
- Expand and upgrade the Water Treatment Plant infrastructure. - Reduce water loss through proactive maintenance and leak detection programs. - Promote environmental stewardship and sustainable resource use. - Ensure compliance with SB 1383 and advance waste reduction and recycling initiatives.
- Maintain water, sewer, and solid waste infrastructure using an integrated asset management system.
- Develop and implement a comprehensive Utilities Capital Improvement Program. - Support utility rate studies to ensure long-term financial sustainability. - Seek and secure state and federal grant funding for water and utility projects. - Manage all solid waste and recycling programs, including compliance with State mandates.

Construction Engineering
- Streamline acceptance processes for development-related infrastructure projects.
- Complete and record offers of dedication and acceptance for all relevant projects.
- Manage and coordinate construction administration and project record-keeping. - Expand services to support Capital Improvement Program project delivery. - Oversee future utility expansions consistent with master planning documents. - Coordinate and manage permit extensions, renewals, and regulatory submissions for municipal utilities.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
90 PERFORMANCE MEASURES
Measurement
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Projected
Number of contracts managed # 10 14 16 18
District buildings maintained #/sf 18/149,733 18/149,733 18/149,733 18/149,733 Number of trees maintained # 16,080 20,000 22,000 30,000 Miles of roads maintained miles 180 190 200 220
Number of street, park, and facility
lights maintained # 2,700 2,800 3,000 3,150
Signaled intersections maintained # 13 14 15 16
Miles of sidewalks maintained miles 131 152 174 198
Square feet of landscaping maintained sf 9,625,638 10,588,201 11,647,022 11,862,120 Collection lines cleaned miles 0 37 18.5 18.5
Catch basins cleaned # --- 2,276 2,276 2,276
Valves turned # 1,166 1,900 1,875 1,900
Hydrants maintained # 80 43 89 90
Water treated (drinking water) MG 1,525.55 1,444.77 1,629.67 1,678.56 Wastewater treated MG 489.10 576.70 620.50 639.12
Biosolids managed (for compost) dry tons 269 252 110 200 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
91 Public Works Department

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 462,905 960,396 1,177,513 1,480,151
Builders Fund 76,921 177,104 214,610 265,025
Special Assessment Funds
Special Tax # 1 - Roads 116,598 128,179 152,913 388,415 Special Tax # 3 - Parks 48,121 61,572 131,613 220,915
Special Tax # 4 - Public Works 24,058 30,785 38,307 47,957 Restricted Funds
Lighting & Landscaping District 1 13,326 10,128 15,000 15,000 Lighting & Landscaping District 2 12,734 10,741 15,000 15,000 Lighting & Landscaping District 3 7,862 10,114 20,000 20,000 Utility Funds
Water O & M 161,463 309,365 347,010 578,872
Wastewater O & M 77,060 61,572 150,713 170,015
Stormwater O & M 24,058 30,785 99,507 82,957
Total 1,025,106 1,790,741 2,362,186 3,284,307

EXPENDITURES
Personnel Services
Personnel 434,431 735,781 716,312 873,375
Labor allocation 171,983 326,202 547,985 715,214
Total Personnel Services 606,414 1,061,983 1,264,297 1,588,589 Operations and Maintenance
Office expense - supplies 415 816 1,000 2,000
Memberships 2,405 2,120 1,500 3,000
Trans/travel training 12,049 6,064 3,000 35,000
Professional services - 86,291 195,900 295,000
Engineering-misc 216,489 218,195 352,740 713,550
Grant expense - 38,029 49,700 25,000
Technology/web/computers - 3,340 4,000 8,000
GIS monitoring 3,609 40,995 50,000 85,000
Publications & legal notices 1,346 - 2,700 5,000
Software & related licenses 4,498 4,285 5,000 9,000
Food 172 217 2,500 3,000
Overhead allocation 177,709 328,406 429,849 512,168
Total Operations and Maintenance 418,692 728,758 1,097,889 1,695,718 Total 1,025,106 1,790,741 2,362,186 3,284,307
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
92 Public Works Department

BUDGET HIGHLIGHTS
- $85,000 is included for GIS mapping.
- $295,000 is included primarily for emergency repairs to the utility systems. - $713,550 is included for water related studies, engineer’s report, traffic surveys, and other consulting services.
- $35,000 is included for travel and training.

ACCOMPLISHMENTS
Public Works
- Transitioned responsibility for floodplain management from San Joaquin County to the City’s Public Works Department, appointing the Public Works Director as Floodplain Manager.
- Assisted in the development of the City’s GIS-EAM-CMMS program. - Coordinated relocation of Operations and Maintenance and Utility offices to the wastewater treatment plant.

Engineering
- Completed the Wicklund Village and Arterial Road Pavement Repair Project, including curb repairs, pavement grinding, overlay, slurry seal, and restriping. - Delivered the FY 2024-25 Citywide Sidewalk Improvement Project to mitigate pedestrian hazards.
- Executed an emergency sinkhole repair in Altamont Village to restore roadway safety.
- Secured Congestion Mitigation and Air Quality grant funding for electric vehicle charging stations and solar carports at City Hall.
- Issued requests for proposals for the Byron Road Pavement Assessment and the City’s first Transit Feasibility Study.
- Finalized City Hall parking lot access improvement plans. - Advertised the City’s first federally funded project: the Mountain House Parkway Traffic Signal Synchronization Project.
- Developed and published the City’s first Traffic Calming Program Manual. - Submitted six capital improvement projects for Measure K grant funding, including sidewalk replacement, ADA ramp improvements, and traffic safety enhancements.
- Integrated the Byron Road Widening Project into the Measure K program for future grant opportunities.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
93 Operations & Maintenance
- Issued requests for proposals for the maintenance of landscaped areas in the streetscape and parks.
- Created a draft Tree Maintenance Ordinance.
- Replaced a five-foot counter in the Fire Station Community Room. - Evaluated storage options for the Community Closet program. - Installed 12 new Neighborhood Watch signs in the Cordes neighborhood. - Completed safety inspection repairs at Town Hall and the Library. - Installed new signage and pavement markings in the Town Hall parking lot. - Procured and installed maximum occupancy signage for administrative offices. - Converted a tennis court for pickleball use through new court striping. - Investigated and estimated damages at multiple traffic accident sites, including Central/Aldrich, Providence/Arnaudo, Central south of Ramsey, Central/Questa Trail, and 123 Main Street.
- Rekeyed the Wastewater Treatment Plant and Operations & Maintenance offices.
- Completed repairs at seven damaged sections of sound walls along arterial roadways.
- Installed redwood railing at the Unity Center to enhance building frontage. - Processed an agreement extension for Valley Communications services. - Installed a new drinking fountain at Questa Park.
- Reviewed design and cost estimates for the proposed Community Garden project.

Utilities Management
- Continued routine regulatory water quality sampling and reporting to the Water Board.
- Developed updated plans, protocols, and standard operating procedures for water and wastewater treatment plant compliance.
- Advanced solid waste and recycling programs, including SB 1383 compliance initiatives.
- Supported environmental stewardship activities through ongoing community education and regulatory participation.
- Continued to develop and update compliance plans, protocols, and Quality Assurance/Quality Control (QA/QC) programs for water, wastewater, and stormwater systems.
- Completed and published the 2023 Consumer Confidence Report; initiated the 2024 CCR in compliance with new State regulations.
- Completed initial Hexavalent Chromium sampling at the Water Treatment Plant with non-detect results.
- Completed EPA-mandated Unregulated Contaminant Monitoring Rule (UCMR-5) testing at the Water Treatment Plant with non-detect results. - Submitted the City’s Lead Service Line Inventory (LSLI) to the California State Water Resources Control Board.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
94 - Participated in early detection sampling programs in partnership with the Department of Public Health.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
95 Regulatory & Compliance Division

DIVISION SUMMARY
The Regulatory & Compliance Division, through plan review and field inspection provides guidance in compliance with state and local construction laws. The division safeguards the citizens against faulty or inappropriate construction practices.

BUDGET HIGHLIGHTS
- $82,500 is included for fees related State and Federal requirements. - $97,000 is included for County and State permit fees. - $175,000 is included for wastewater collection system contractor related repairs.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 258,611 285,672 443,990 579,271
Special Assessment Funds
Special Tax # 1 - Roads 6,259 3,089 9,000 16,000
Special Revenue Funds
Development Services 72,036 84,015 62,648 94,818
Utility Funds
Water O & M 50,769 63,459 100,000 108,500
Wastewater O & M 50,489 51,449 200,000 181,000
Stormwater O & M 12,232 11,924 30,500 110,500
Total 450,396 499,608 846,138 1,090,089

EXPENDITURES
Personnel Services
Personnel 200,034 222,718 234,658 301,034
Labor allocation 63,283 70,334 153,165 216,521
Total Personnel Services 263,317 293,052 387,823 517,555 Operations and Maintenance
Memberships 9,408 8,847 10,500 11,500
Professional services 14,695 15,100 120,000 175,000
Engineering-miscellaneous 5,500 18,685 75,000 82,500
State health department 38,103 41,298 45,000 50,000
Permits & fees 52,043 45,991 89,000 97,000
Overhead allocation 67,330 76,635 118,815 156,534
Total Operations and Maintenance 187,079 206,556 458,315 572,534 Total 450,396 499,608 846,138 1,090,089
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
96 Impact Fee Programs Division

DIVISION SUMMARY
The Impact Fee Programs Division administers the programs designed to improve to roads and community facilities.

BUDGET HIGHLIGHTS
- $25,000 is included for legal counsel.
- $25,000 is included for fee updates to the TIF and CFF programs.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
Traffic Impact Fee Program - - 15,000 30,000
Community Facility Fee Program - - 10,000 20,000
Total - - 25,000 50,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Legal services - - 12,500 25,000
Engineering-miscellaneous - - 12,500 25,000
Total Operations and Maintenance - - 25,000 50,000
Total - - 25,000 50,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
97 Operations & Maintenance Division

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 275,782 321,981 522,782 733,962
Special Assessment Funds
Special Tax # 1 - Roads 2,033,760 3,234,645 4,444,496 4,830,305 Special Tax # 2 - Public Safety 155,880 113,347 192,818 259,000 Special Tax # 3 - Parks 1,677,713 1,981,281 2,513,710 3,447,407 Special Tax # 4 - Public Works 658,665 577,899 1,515,790 1,943,886 Special Revenue Funds
Gas Tax - - - 709,000
Restricted Funds
Lighting & Landscaping District 1 10,146 10,296 17,000 17,000 Lighting & Landscaping District 2 - - 12,000 12,000
Lighting & Landscaping District 3 12,543 12,729 15,000 165,000 Utility Funds
Water O & M 3,290,826 3,678,896 4,354,868 4,362,319
Wastewater O & M 1,621,621 1,936,933 2,265,637 2,531,616 Stormwater O & M 380,512 541,117 521,198 520,062
Total 10,117,448 12,409,124 16,375,299 19,531,557

EXPENDITURES
Personnel Services
Personnel 863,292 947,269 918,937 1,502,484
Labor allocation 337,790 416,591 702,994 1,230,395
Total Personnel Services 1,201,082 1,363,860 1,621,931 2,732,879 Operations and Maintenance
Communications 9,935 12,020 14,600 14,700
Memberships 792 931 1,000 1,000
Maintenance-equipment 1,222 - 5,000 8,000
Signal maintenance 70,992 50,614 219,000 278,409
Street light maintenance 226,468 102,352 120,000 129,000 Gasoline 12,102 15,000 30,000 45,000
Truck upkeep 6,030 8,655 9,000 16,066
Trans/travel training 2,001 12,006 14,000 14,000
Professional services 1,963,133 2,261,018 2,644,872 2,981,000 Refuse disposal charges 136,151 122,099 44,139 50,000
Engineering-miscellaneous - - - 50,000
Technology/web/computers - - - 3,000
Road maintenance 67,151 1,049,066 1,694,143 1,450,000
Chemicals 576,599 483,833 360,000 -
Software and related services - - 28,500 28,500
Clothing & personal supplies 964 2,775 1,500 1,600
Utilities-street lighting 245,936 257,707 284,878 304,819 Utilities-traffic signals 10,789 15,059 15,233 16,000
Utilities-water 1,083,887 902,969 1,300,000 1,339,000
Irrigation water 619,296 584,282 665,883 712,270
Utilities-electricity 680,757 822,427 1,093,329 1,127,821 Maint-structure & grounds 386,482 736,942 925,002 1,660,000 Maint & repair - collection systems - 444,157 630,000 610,000 Household exp - janitorial service 76,111 82,362 86,000 247,414 Landscaping 2,009,382 2,168,851 3,411,115 4,140,710
Small tools & instruments 1,507 6,697 6,000 6,000
Pledge facility payments 219,515 367,296 390,913 418,277 Public Safety 155,880 113,347 192,818 250,000
Equipment - - 15,000 15,000
Overhead allocation 353,284 422,799 551,443 881,092
Total Operations and Maintenance 8,916,366 11,045,264 14,753,368 16,798,678 Total 10,117,448 12,409,124 16,375,299 19,531,557
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
98 Operations & Maintenance Division

DIVISION SUMMARY
The Operation & Maintenance Division is responsible for the operations and maintenance of the fleet, water, sewer, storm drainage, parks, streets, signs, and support services. This is accomplished through major funding from special assessments.

BUDGET HIGHLIGHTS
- $4,140,710 is included for landscaping and tree maintenance. - $2,981,000 is included for operations of the water and wastewater facilities. - $1,450,000 is included for road maintenance.
- $1,339,000 is included for the purchase of raw water.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
99 Community Development Department

DEPARTMENT SUMMARY
The Community Development Department (CDD) is responsible for Planning and Entitlement, Development Engineering, Building and Safety, and Code Enforcement services. These include zoning-related and entitlement application processing, building permit review, approval, and inspection services, and improvement plan reviews to confirm conformance with applicable City standards and policies. In addition, CDD is responsible for code compliance and the enforcement of CC&R and Master Restrictions as well as community preservation, including public outreach and engagement. CDD staff commitments are to provide friendly professional services that support economic vitality and ensure that new development achieves a balance among the economic, social, environmental and quality-of-life goals for the City of Mountain House.

Community
Development
Director
Intern
(.5 FTE)
Principal Planner
Sr. Inspection & Code
Enforcement Officer
Community
Preservation Officer Planner I/II/III
Deputy City Manager
Permit Technician
Inspector & Code
Enforcement Officer
Building Contract
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
100

GOALS AND OBJECTIVES
Planning and Entitlement Services
- Continue to collaborate with developers and other partners to provide carefully planned, well-constructed, and regularly maintained infrastructure that safely serves residents, businesses, and visitors.
- Refine and update procedural guidelines and standard operating procedures for planning processes, application requirements, and other entitlement processes. - Expand GIS system and transition to in-house support services. - Complete the GIS-based archival system for final-map approvals, bonds for subdivisions, and bonds and securities for the CFF, TIF and utility infrastructure obligations.
- Complete cost certification and reimbursement for CFF, TIF, utility infrastructure and CFD projects efficiently.
- Adopt procedural guidelines per the CFF, TIF and utility infrastructure projects and Master Acquisition and Reimbursement Agreements requirements for cost escalation and first-in/first-out priority list.
- Initiate the City’s first General Plan and start engaging the public in the process - Maintain the annexation fee calculation spreadsheet and annexation process. - Update and implement Cost Certification and Reimbursement Process Guidelines.
- Update the Municipal Service Review document and submit to San Joaquin County LAFCo.
- Complete an update to the CIF and TIF.
- Work with developers to form and annex into Community Facilities Districts (CFDs) throughout the city as a mechanism to pay for parks and infrastructure improvements and maintenance.
- Continue coordinating with regional projects, including Valley Link, Route 205 Managed Lanes, and Delta Conveyance Project.
- Continue to manage the Public Land Equity Program and procedures for tracking dedicated lands and vouchers and identifying surpluses and deficits.. - Update the Master Plan and Specific Plans for the proposed land use and community facility changes.
- Update General Plan.
- Implement a GIS division.
- Implement interactive development project dashboard.
- Support diverse housing options.
- Continue cooperating with regional agencies on projects, including Valley Link, Route 205 Managed Lanes, and the Delta Conveyance project.. - Update the Public Land Equity Program and establish procedures for tracking dedicated lands and vouchers and identifying surpluses and deficits. - Continue to refine procedural guidelines for planning processes, application requirements, annexation fee calculations, and other entitlement processes.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
101
- Prepare a “cost of doing business” survey to compare Mountain House with other communities in the region.
- Develop an economic development strategy.
- Begin initial phases of a transit-orientated development analysis.

Development Engineering Services
- Finalize submittal checklist requirements and publish this information online. - Update specifications and details when necessary.
- Improve document coordination and archiving of hard and electronic copies. - Collect, organize, scan, and store all maps and plans. - Expand the GIS-based archival system for improvement plans, final-map approvals, bonds for subdivisions, and improvement bonds. - Implement the Water and Sewer Master Plan recommendations.

Building and Safety Services
- Enhance online permitting and plan review systems to improve accessibility and efficiency.
- Develop and implement digital archiving for building permits and inspection records .
- Streamline the inspection scheduling process to reduce delays and improve service delivery.
- Provide ongoing training for staff to stay updated on the latest building codes and industry best practices.
- Increase public outreach and education on building safety requirements and permitting procedures.
- Improve coordination with other departments and agencies to ensure smooth development processes.
- Collaborate closely with Code Enforcement division to address potential safety hazards before they become critical issues.
- Improve online dashboard to track permit applications, inspection results, and code enforcement actions.

Code Compliance
- Develop and distribute educational materials on code compliance, Master Restrictions, street tree maintenance, and sidewalk responsibilities. - Administer and expand the non-standard vehicle parking permit system and policy.
- Develop and enhance the use of online permitting systems for code enforcement, and other development processes.
- Conduct semi-annual or annual property inspections post-purchase to verify Master Restriction compliance and ensure proper permitting of additions and modifications.
- Work with developers, builders, and HOAs to host educational forums and reissue Master Restrictions to property owners, including those in non-HOA areas. - Assist in the development of permitting processes for new commercial development projects.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
102
- Improve code compliance procedures by adopting a computerized tracking system for violations and corrective actions.
- Develop an enforcement and education plan for street tree maintenance, including issuance of fines for non-compliance.

PERFORMANCE MEASURES
Measurement
Unit of
Measure
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Projected
Number of building permits
issued # 330 250 350 300
Number of hours billed # 3,018 4,425 4,582 5,500
Number of non-residential
permits completed # 2 2 1 4
Complete CFF/TIF update % 100% 100% 100% 100%
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
103
Community Development Department

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 1,306,403 1,267,442 1,348,313 1,427,740
Traffic Impact Admin 31,058 41,854 50,000 30,000
Community Facilities Admin 31,058 41,854 50,000 30,000
Special Assessment funds
Special Tax # 1 - Roads 65,713 72,526 - -
Special Revenue Funds
Development Services 330,580 351,652 3,483,083 3,103,611 Utility Funds
Water O & M 65,713 72,526 - -
Wastewater O & M 43,807 48,352 - -
Stormwater O & M 21,909 24,176 - -
Total 1,896,241 1,920,382 4,931,396 4,591,351

EXPENDITURES
Personnel Services
Personnel 1,153,764 1,251,928 1,589,264 1,097,083
Labor allocation 165,979 25,848 708,140 398,410
Total Personnel Services 1,319,743 1,277,776 2,297,404 1,495,493 Operations and Maintenance
Office expense - supplies - 1,710 5,000 5,000
Software & related licenses - 4,748 32,000 32,000
Memberships 1,496 1,227 8,000 8,000
Small tools & instruments - - 1,000 1,000
MHCSD plan checking 1,123 7,255 27,000 27,000
Technology/web/computers 1,261 2,941 4,000 4,000
GIS monitoring - 52,476 50,000 50,000
Development services - - 979,929 1,000,000
General plan - - - 400,000
Trans/travel training 3,003 3,145 7,000 12,000
Equipment - office - - 3,000 3,000
Professional services 374,028 442,985 550,000 860,000
Office expense - shipping - - 500 500
Inspection/testing - - - 50,000
Plan checking - - 437,856 450,000
Overhead allocation 195,587 126,119 528,707 193,358
Total Operations and Maintenance 576,498 642,606 2,633,992 3,095,858 Total 1,896,241 1,920,382 4,931,396 4,591,351
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
104
Community Development Department

BUDGET HIGHLIGHTS
- $50,000 is included for GIS projects.
- $450,000 is included for planning services.
- $1,000,000 is included for building inspection and safety services. - $860,000 is included for outside consulting including the TIF and CFF update.

ACCOMPLISHMENTS
Community Development
- Completed updates to the Community Facilities Fee (CFF) and Traffic Impact Fee (TIF) programs.
- Released an RFP, conducted interviews, and hired a consultant to establish and manage the Building Department.
- Coordinated with San Joaquin County Community Development Department to transition City land use approvals, planning issues, and use permits from County to City authority.
- Assumed responsibilities from the County and implemented an internal process for assigning street names and addresses.
- Completed and implemented the Parks and Recreation Plan, including designs for Central Community Park, tennis courts, and an amphitheater. - Completed and implemented the phased Bicycle and Pedestrian Plan. - Developed a standard project reimbursement agreement for non-MARA developers in coordination with the City Attorney.
- Partnered with consultants and developers to form Community Facilities Districts (CFDs) to fund parks and infrastructure improvements.

Planning and Entitlement
- Established a fully functioning Planning Department, including onboarding consultants, developing applications and procedures, processing applications, and approving development projects.
- Updated the Master Plan and Specific Plans to reflect land use and community facility changes.
- Finalized and published online submittal checklist of requirements. - Issued an RFP to procure a consultant for the City’s General Plan update. - Developed and implemented Home Occupation Permit procedures to align with Business License issuance.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
105
- Verified final maps and prepared subdivision and off-site improvement agreements for Tracts 3609, 3618, 3926, 3973, 3974, and 3975. - Prepared conditions of approval for Neighborhoods F (Tracts 4210, 4211), H (Tracts 4212, 4618), and revised conditions for Neighborhoods I, J, K, and L. - Secured Union Pacific Railroad approvals for at-grade crossings at Byron Road and Mountain House Parkway and Byron Road and Great Valley Parkway. - Completed construction and acceptance of Grant Line Road improvements between Central Parkway and Great Valley Parkway, including the sound wall.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
106
Code Compliance Division

DIVISION SUMMARY
The Code Compliance Division is responsible for community outreach, engagement, education, code compliance and permitting needs. The Division provides education to the public regarding land use ordinances and related code provisions. The Division investigates and reports on complaints and issues warnings and citations for noncompliance. The Division also issues permits to property owners/residents, builders, and contractors working in Mountain House.

BUDGET HIGHLIGHTS
- $25,000 is included for Turbo Data and code enforcement software. - $8,000 is included for building code seminars.
- $3,000 is included for consultants for public outreach.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 483,564 557,815 242,093 43,000
Builders Fund 346,922 409,879 837,542 787,231
Total 830,486 967,694 1,079,635 830,231

EXPENDITURES
Personnel Services
Personnel 450,408 505,707 670,430 614,512
Labor allocation 176,227 222,405 210,327 100,646
Total Personnel Services 626,635 728,112 880,757 715,158 Operations and Maintenance
Office expense - supplies 2,804 2,525 1,689 4,000
Memberships 100 50 400 800
Transportation/travel training 3,861 3,743 5,398 8,000
Professional services 6,930 - - 3,000
Software & related licenses 5,757 6,058 24,753 25,000
Clothing & personal supplies 260 1,076 868 1,000
Small tools & instruments - 413 785 1,200
Overhead allocation 184,139 225,717 164,985 72,073
Total Operations and Maintenance 203,851 239,582 198,878 115,073 Total 830,486 967,694 1,079,635 830,231
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
107
Recreation Department

DEPARTMENT SUMMARY
The Recreation Department provides leadership, guidance, and support for programs.

The department conducts registration activities, rents City facilities, oversees youth programs, and manages event budgets.

Administrative
Services Director
Recreation
Coordinator (2)
Recreation Assistant
(2.4 FTE)
Recreation Manager

GOALS AND OBJECTIVES
- Utilize the Recreation Strategic Plan to plan to implement recreation programs and special events that will engage the community and are within the financial and personnel resources of the City.
- Consider a sponsorship/donation policy program for Council approval to offset the costs of special events and recreation programs for youth and seniors. - Create a marketing strategy to increase participation at special events and programs to ensure sponsorships.
- Create a Cost Recovery Policy and a Parks and a Recreation Master Fee Schedule.
- Analyze the cost of maintaining community facilities, parks and fields and recommend appropriate user fees based upon on a cost recovery model. - Implement community-hosted special event policies and procedures to ensure community safety and to reduce stress upon city resources. - Create a program plan for the new pickleball courts at the Central Park tennis courts, new tennis center, and amphitheater.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
108
- Hire an additional Recreation Coordinator to facility rentals, manage new tennis center, new pickleball courts, new amphitheater rentals, and community hosted special event process.

PERFORMANCE MEASURES
- Program and event budgets will be offset by the number of sponsorships and donations resulting in additional activities and events proposed in the Recreation Strategic Plan being funded.
- Marketing objectives will be measured by the increase of feedback and followers on the City’s social media pages, by the number of views of department’s website pages, and by the increase in attendance at special events and recreation programs.
- Community Hosted Special Event Policies and Procedures will provide more efficient communication between the customer and city services reducing stress on city resources, resulting in events that are safer for the community. - Increased attendance and rentals at the pickleball courts (former Central Park tennis Courts), new tennis center and amphitheater.
- Additional Recreation Coordinator will allow the current Coordinator the opportunity to grow the contracted recreation and senior programs, improve and expand special events, and create marketing materials.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
109
Recreation Department

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 3 - Parks 759,651 859,252 1,135,363 1,680,610 Total 759,651 859,252 1,135,363 1,680,610

EXPENDITURES
Personnel Services
Personnel 290,890 338,453 377,271 587,083
Labor allocation 113,805 148,845 288,616 480,767
Total Personnel Services 404,695 487,298 665,887 1,067,850 Operations and Maintenance
Memberships - 165 940 1,630
Transportation/travel training 2,234 1,500 3,000 5,000
Publications & legal notices 9,945 973 3,000 3,000
Sponsored events 53,221 34,799 36,910 42,450
Miscellaneous expense 1,833 9,198 4,000 4,000
Software & related licenses 15,614 21,896 16,600 17,600 Household - janitorial service 3,395 862 14,000 14,000
Independence Day 23,779 19,401 21,700 23,500
Music in the park 96,638 87,215 104,500 114,000
Kite festival 20,166 12,576 16,000 17,000
Central Park cinema - - 7,180 8,000
Community meetings 5,000 2,043 2,000 1,000
Unity Center - 28,383 10,000 10,000
Security services - - - 3,000
Trunk-or-Treat - - - 300
Bike rodeo 3,835 1,880 3,250 4,000
Overhead allocation 119,296 151,063 226,396 344,280
Total Operations and Maintenance 354,956 371,954 469,476 612,760 Total 759,651 859,252 1,135,363 1,680,610
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
110
Recreation Department

BUDGET HIGHLIGHTS
- $114,000 is included for music in the park events.
- $8,000 is included for Central Park cinema.
- $17,000 is included for the Kite Festival.
- $23,500 is included for the Independence Day event.

ACCOMPLISHMENTS
- Hosted second annual Juneteenth Celebration at Central Park for over 2,000 guests with over 30 food and retail vendors, live performances, history presentations, dancing, music, and local, regional, and national dignitaries in attendance.
- Hosted second annual “Light Up Main Street” with vendors, live music, and lights along Main Street from Town Hall to the tree at Central Park, increasing attendance and positive feedback.
- Updated website to be more customer friendly that includes:
o Weather field conditions page.
o Upcoming rental schedules.
o Policies and fees reference documents.
o Special event photos and information.
o Vendor information and sign-up links.
o Calendar items for upcoming events and programs.
o Park and facility maps for easy reference.
- Increased marketing and community involvement through more robust social media campaigns.
- Received sponsorships from local businesses for Holiday Tree Lighting and new Central Park Cinema special events offsetting the costs. Received additional funds from community member donations to offset the costs of the Bike Rodeo and Senior Health and Wellness Expo.
- City Council adopted the tennis courts, indoor facilities, parks and fields, and picnic shelters rental policies and fees.
- Developed a Community Hosted Special Event Policy and Process with collaboration between Parks and Recreation, Code Enforcement, Public Safety, Fire Department and Sheriff’s Department to be presented to Council for adoption.
- Created a Contract Instructor Handbook to streamline the hiring process for specialized recreation instructors.
- Proposed a Facility Waiver/Grant Program for non-profits to offset their costs of renting City facilities.
- Added two pickleball courts to the Central Park Tennis Courts in response to community feedback.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
111
Service Division
The service division consists of library, law enforcement, fire and emergency medical response, emergency preparedness, and debt services. Each service division has its own funding sources and expenses. The purpose of public safety is to protect life, property, and the overall well-being of the community through the coordinated efforts of police and fire services, security services, and community preservation. Police services work to enforce laws, prevent crime, and build trust through community engagement.

The Mountain House Fire Department is committed to safeguarding lives and property through efficient emergency response, proactive prevention, and ongoing public engagement. Security services help ensure the safety of public facilities and spaces through active monitoring and response. Community preservation maintains the community’s quality of life by enforcing local codes, addressing public nuisances, and upholding neighborhood standards. Together, these services form a comprehensive approach to creating a safe, resilient, and thriving Mountain House community Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
112

GOALS AND OBJECTIVES
Public Safety Services
- Support the community in establishing and maintaining neighborhood and business watch programs.
- Engage in community-oriented policing with long-term contracted police services with the San Joaquin County Sheriff.
- Continue public-private safety partnerships with Rank Security to maintain a high level of public safety in Mountain House.
- Provide and coordinate the School Resource Deputy Program using a member of our police services unit.
- Use surveillance and license plate readers technologies in the prevention and reduction of crime.
- Continually upgrade and increase the number of surveillance-based cameras within the community with 24/7 monitoring.
- Remodel the public safety workspace to accommodate both our security team officers and contract police services.
- Apply for grants to move forward with the public safety training facility. - Maintain and expand a volunteer-based crossing guard program for area schools.
- Implement a regional radio system that interconnects with public works and public safety.
- Update vehicle and equipment replacement schedule and ensure funding is in place to ensure timely purchases.
- Develop a training program for all employees including routine workshops and seminars for certification and refresher courses.
- Work with Recreation Manager to develop comprehensive application processes for special events; assist with the Bike Rodeo event to enhance the bike safety education program; and provide input for the development of rules and regulations for parks and facilities.

Community Preservation Services
- Continue expansion and education of the Neighborhood Watch and Business Watch programs.
- Prepare crime prevention handouts and social media posts to educate residents on crime trends and the latest crime prevention practices. - Coordinate and partner with local public safety agencies for the National Night Out event at the Community Central Park.
- Conduct routine assessments of the surveillance cameras system and monitor efficiency.
- Provide recommendations for physical security of City facilities. - Review construction and building plans for City parks, facilities and public spaces for Crime Prevention through Environmental Design recommendations. - Assist with emergency management responses with the County Office of Emergency Services.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
113
Fire Services
- Enhance public safety, improve response times and operational readiness, and strengthen fire prevention and safety education efforts to better serve and protect our residents.
- Reduce fire incidents in historically high-risk zones through targeted inspections and community education.
- Increase fire safety inspections and visits by 20%, with a focus on both residential and commercial properties.
- Improve average response times by 10% through the operation of Station 2 and improved resource allocation.
- Train 50+ community members on fire safety, CPR, Stop the Bleed, and emergency preparedness.
- Open Fire Station 2 to better serve the expanding community and improve response coverage.
- Hire 6 new full-time firefighters to ensure consistent staffing levels and enhance service delivery.
- Expand special programs, including the water rescue and drone operation, to increase our capability in specialized emergency responses. - Increase community engagement, including expanded fire safety education and outreach efforts targeting schools, businesses, and high-risk groups. - Continue training and collaboration with neighboring fire and emergency agencies to strengthen auto-aid and mutual-aid partnerships within and beyond city limits.
- Implement new technology tools to improve incident reporting, real-time decisionmaking, and emergency coordination.

ACCOMPLISHMENTS
Emergency Management
- Completed the Municipal Emergency Management Plan (MEMP) and began development of the ICS system.
- Trained staff to implement the MEMP and run the Emergency Operations Center. - Approved to be part of the Office of Emergency Services Disaster Council, with voting powers.
- Involved in the assessment of threats related to disasters at the County level with the Office of Emergency Services.
- Launched and expanded use of the Everbridge Notification system. - Updated the Facilities Emergency Response Plan.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
114
- Used technology to increase the number of arrests and identification of suspects in various criminal activities.
- Developed all-volunteer pedestrian crossing guard program. - Conducted safety fire inspection and risk assessment at the Town Hall/Library with staff and Mountain House Fire.
- Designed process of monitoring 31 surveillance cameras strategically placed throughout the community along with additional cameras in the Town Hall/Library. All cameras can be accessed remotely by authorized staff and Public Safety agencies as well remote monitoring by Rank’s dispatch center. - Managed 26 Flock Falcon Automated License Plate Recognition cameras in the community.
- Installed signage for Town Hall/Library doors and entrances indicating limited public access.
- Provided staff training in active incident procedures and 1st Amendment rights. - Participated in numerous community outreach programs throughout the year including Neighborhood Watch, Business Watch, Coffee with First Responders, National Night Out, and Senior Awareness.
- Conducted pedestrian crossing safety evaluations and collected data around schools and high traffic areas.
- Introduced a smart phone application for the Emergency Response Plan. - Community Preservation Officer obtained a Crime Prevention through Environmental Design Professional Designation.
- Community Preservation Officer took the lead in the GoGov program to enhance two-way public-agency communications and staff accountability. - Developed municipal codes specifically for code, parking, and park enforcement. - Established several new Neighborhood Watch and Business Watch groups. - Obtained certification as a drone pilot in compliance with FAA Part 107 UAS Pilot license.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
115
- Coordinated efforts with the City to clear overgrown vegetation, weeds and tall grass in the large undeveloped lots in and around Mountain House. - Participated in 5 statewide fire deployments.
- Applied for and received the Cal Fire “50/50” grant for equipment and personnel protective equipment.
- Applied for “Assistance for Firefighter” grant to place a third person at the new firehouse 2. Awarding will take place in October 2025. If we are awarded the grant, FEMA would fully fund the position for 3 years.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
116
Library Services Division

DIVISION SUMMARY
The Library Services Division provides resources to enrich lives, to encourage a learning environment, access to books, media and the internet, and to offer a venue for gatherings.

BUDGET HIGHLIGHTS
- $71,878 is included for janitorial services and related expenses. - $56,000 is included for the annual operating cost for personnel. - $43,285 is included for electricity.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 3 - Parks 185,025 193,867 195,275 211,163 Total 185,025 193,867 195,275 211,163

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Professional services 56,000 56,000 56,000 56,000
Security services 926 768 821 1,000
Landscaping 4,268 3,784 3,799 5,000
Household exp-janitorial service 57,596 66,294 66,554 71,878 Utilities-water 15,635 16,146 16,547 19,000
Utilities-electricity 40,614 39,615 40,453 43,285
Maint-structure & grounds 9,986 11,260 11,101 15,000
Total Operations and Maintenance 185,025 193,867 195,275 211,163 Total 185,025 193,867 195,275 211,163
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
117
Law Enforcement Services Division

DIVISION SUMMARY
As we move forward into the 2024/2025 budget year, the San Joaquin County Sheriff, the California Highway Patrol, and Rank Public Safety remain committed to ensuring the safety and well-being of our community. This collaborative effort has led to significant accomplishments over the past year, and we are excited to outline our goals for the coming year. Together, we strive to enhance public safety, reduce crime, and build stronger relationships with the citizens we serve.

BUDGET HIGHLIGHTS
- $4,000,000 is included for San Joaquin County Sheriff services. - $175,000 is included for contract services.
- $748,818 is included for Rank Security services.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 2 - Public Safety 2,976,936 3,048,114 4,057,399 4,933,818 Total 2,976,936 3,048,114 4,057,399 4,933,818

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Household exp - janitorial service 8,096 7,825 7,059 10,000 Professional services 24,448 13,155 70,195 175,000
Rank Security 530,996 538,635 624,015 748,818
SJC Sheriff 2,413,396 2,488,499 3,356,130 4,000,000
Total Operations and Maintenance 2,976,936 3,048,114 4,057,399 4,933,818 Total 2,976,936 3,048,114 4,057,399 4,933,818
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
118
Fire & EMS Division

DIVISION SUMMARY
The Fire & Emergency Medical Services Division provide services that make our community safe for all citizens to live and work through the protection of life, property, and the environment. As we enter the 2025/26 budget year, the Mountain House City Fire Department continues its unwavering commitment to fire prevention and response.

Over the past year, we have achieved significant milestones in enhancing the safety and resilience of our community. Looking ahead, we are dedicated to further advancing our capabilities and outreach efforts to better protect and serve the residents of Mountain House.

BUDGET HIGHLIGHTS
- $4,967,120 is included for fire services.
- $50,000 is included for structure, ground, and equipment improvements. - $25,000 is included for other contract services.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 2 - Public Safety 2,985,633 3,555,470 3,599,390 5,080,408 Total 2,985,633 3,555,470 3,599,390 5,080,408

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Fire and EMS 2,878,620 3,407,060 3,493,642 4,967,120
Maintenance - equipment - 1,084 - 5,000
Maint-structures & grounds 13,420 10,803 12,560 15,000
Utilities-water 7,280 9,266 9,615 10,288
Professional services 4,305 4,174 8,063 25,000
Landscaping 3,810 3,357 3,419 5,000
Interest 19,335 23,326 6,445 -
Janitorial Expense 8,279 7,710 1,487 3,000
Structure improvements 50,584 88,690 64,159 50,000
Total Operations and Maintenance 2,985,633 3,555,470 3,599,390 5,080,408 Total 2,985,633 3,555,470 3,599,390 5,080,408
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
119
Emergency Preparedness Services Division

DIVISION SUMMARY
The Emergency Preparedness Services Division provide services and funding that allow the community to prepare for emergency situations for both natural and unnatural disasters.

BUDGET HIGHLIGHTS
- $25,000 is included for emergency preparedness.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 2 - Public Safety - - - 25,000
Total - - - 25,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
EOC equipment and plan - - - 25,000
Total Operations and Maintenance - - - 25,000
Total - - - 25,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
120
Debt Service Division

DIVISION SUMMARY
The Debt Service Division provides funding for the City’s infrastructure. The division provides funding for the City’s outstanding debt.

BUDGET HIGHLIGHTS
- $6,074,000 is included for Traffic Impact Fees.
- $7,271,949 is included for Community Facilities Fees. - $6,338,452 is included for Water Debt Service.
- $4,849,286 is included for Wastewater Debt Service.
- $1,668,520 is included for Stormwater Debt Service.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

DEPARTMENT FUNDING SUMMARY
Restricted Funds
Traffic Impact 3,455,793 2,856,681 6,163,473 6,074,000
Community Facilities 3,552,043 470,154 8,051,398 7,271,949 Utility Funds
Water Debt Service 21,545,357 4,820,136 5,846,749 6,338,452 Wastewater Debt Service 20,408,223 3,729,208 4,485,590 4,849,286 Stormwater Debt Service 6,715,494 1,316,577 1,571,988 1,668,520 Total 55,676,910 13,192,756 26,119,198 26,202,207

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Debt Service
Debt payments 55,676,910 13,192,756 26,119,198 26,202,207 Total Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Total 55,676,910 13,192,756 26,119,198 26,202,207
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
121
Fund Budgets
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
122
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
General Fund 2,895,722 3,530,852 3,912,789 4,540,643
Traffic Impact 31,058 41,854 65,000 60,000
Community Facilities 31,058 41,854 60,000 50,000
Total General Funds 2,957,838 3,614,560 4,037,789 4,650,643 Special Assessment Funds
Special Tax # 1 - Roads 2,303,228 3,530,829 4,725,090 5,594,656 Special Tax # 2 - Public Safety 6,140,301 6,738,930 7,872,607 10,324,226 Special Tax # 3 - Parks 2,698,345 3,128,291 4,016,590 5,680,402 Special Tax # 4 - Public Works 730,499 664,494 1,627,249 2,153,412 Total Special Assessment Funds 11,872,373 14,062,544 18,241,536 23,752,696 Special Revenue Funds
Development Services 845,137 1,047,187 4,597,883 4,250,685 Gas Tax - - - 709,000
Measure K - - - -
Total Special Revenue Funds 845,137 1,047,187 4,597,883 4,959,685 Utility Funds
Water O & M 4,445,888 5,176,322 5,469,844 6,279,975
Wastewater O & M 2,519,252 3,034,307 3,158,606 3,965,046 Stormwater O & M 662,566 898,562 833,664 1,041,428
Total Utility Funds 7,627,706 9,109,191 9,462,114 11,286,449 Restricted Funds
Lighting & Landscaping District 1 24,038 21,021 32,700 32,900 Lighting & Landscaping District 2 13,137 11,144 27,600 27,800 Lighting & Landscaping District 3 24,095 26,574 39,000 190,000 Total Restricted Funds 61,270 58,739 99,300 250,700
Debt Service
Debt Payments 55,676,910 13,192,756 26,119,198 26,202,207 Total Debt Service 55,676,910 13,192,756 26,119,198 26,202,207 Capital Projects
Capital Projects 3,751,003 1,717,668 5,960,000 8,775,444 Total Capital Projects 3,751,003 1,717,668 5,960,000 8,775,444 Total 82,792,237 42,802,645 68,517,820 79,877,824
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
123
General Fund

FUND SUMMARY
The General Fund is used to account for resources traditionally associated with government, which are not required legally or by sound financial management to be accounted for in another fund.

BUDGET HIGHLIGHTS
- $12,956,082 in funding is provided by the General Fund. - $1,288,000 is included for studies, policies and procedures consulting, and special consulting projects.
- $220,000 is included for San Joaquin County data processing direct charges. - $787,500 is included for insurance.
- $380,000 is included for the City’s legal counsel.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Property tax-secured 7,041,979 7,889,755 9,592,389 10,017,932 Property tax-secured-SB813 292,638 351,366 325,092 344,598 Property tax-unsecured 360,859 462,099 568,034 602,116
Property tax-unsecured-SB813 7,875 18,326 13,226 14,020 License/permits-plan check 8,364 7,999 6,951 7,000
Franchises 385,420 392,416 456,732 475,001
Interest income 856,437 1,435,646 700,000 350,000
Rents/concessions 10,807 15,300 9,794 10,000
Homeowners' property tax relief 28,839 32,411 53,280 56,477 West Valley commercial 113,587 175,094 213,606 222,150
Utility services fee-solid waste 607,268 792,625 814,220 846,788 Charges for services 2,665 7,697 6,136 5,000
Other miscellaneous revenues 4,249 85,941 3,554 5,000
Total 9,720,988 11,666,675 12,763,014 12,956,082
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
124
General Fund

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

EXPENDITURES
Personnel Services
Personnel 3,335,440 4,270,342 4,747,079 5,910,498
Labor allocation (1,298,619) (1,876,780) (2,542,287) (3,538,662) Total Personnel Services 2,036,821 2,393,562 2,204,792 2,371,836 Operations and Maintenance
Office supplies 11,939 13,786 24,300 29,000
Printing 1,018 1,918 1,058 3,000
Postage 1,354 19,792 3,281 5,500
Communication 36,966 55,661 58,464 62,500
Communication services-cell phone 11,283 11,242 13,538 15,000 Memberships 40,818 37,012 73,175 75,300
Gasoline 12,102 15,000 30,000 45,000
Truck upkeep 6,030 8,655 9,000 16,066
Rents & leases-equipment 18,531 24,720 31,591 42,000
Transportation/travel training 26,167 29,921 89,454 136,500 Professional services 442,579 744,757 767,417 1,288,000 Tax administration charges 128,380 111,587 117,038 127,000 Financial/management services 84,684 87,626 97,000 165,000 MHCSD counsel 200,857 351,231 358,260 380,000
MHCSD plan checking 1,123 7,255 27,000 27,000
Grant Expense - 38,029 49,700 25,000
Engineering-miscellaneous - - 38,950 39,450
Technology/web/computers 65,268 46,026 94,919 107,000
MHCSD utility billing/metering 84,265 101,664 111,244 115,000 GIS monitoring 2,824 85,359 65,000 100,000
Human resources consulting 57,339 225 65,000 85,000
Publications & legal notices 2,802 2,830 6,600 10,500
Pre-employment testing 128 699 1,300 2,500
Special departmental expense 1,306 3,344 1,200 3,000
Recruitment 26,421 24,053 - 30,000
Elections 27,736 - 102,357 -
Software & related licenses 56,253 77,833 158,679 165,000 Workers compensation insurance 40,254 57,615 108,000 118,800 Insurance - fire & liability 452,028 551,338 625,000 787,500 Miscellaneous expense 5,226 16,314 24,536 27,800
Equipment office 31,613 - 32,368 45,450
Utilities-electricity 59,724 59,089 73,757 77,000
Maintenance-structure & grounds 20,347 25,458 27,513 29,000 Data processing charges - 115,053 169,681 220,000
County indirect cost charges-A-87 150,436 141,737 171,736 215,000 Utilities 6,763 7,089 7,359 10,000
Landscaping 6,746 7,071 9,818 11,000
Security services 6,666 5,715 3,549 5,000
Janitorial 64,917 54,068 53,374 57,000
Overhead allocation (1,333,992) (1,803,482) (1,994,219) (2,534,059) Total Operations and Maintenance 858,901 1,137,290 1,707,997 2,168,807 Total Expenditures 2,895,722 3,530,852 3,912,789 4,540,643 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
125
Traffic Impact Fee Fund

FUND SUMMARY
The Traffic Impact Fee Fund is used to provide administration funds for the administering of the traffic impact program.

BUDGET HIGHLIGHTS
- $187,704 in funding is provided by the Traffic Impact Fee Fund. - $15,000 is included for City attorney.
- $30,000 is included for TIF updates.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Traffic impact administration fee 149,881 153,349 211,504 187,704 Total 149,881 153,349 211,504 187,704

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Professional services 31,058 41,854 50,000 30,000
MHCSD counsel - - 7,500 15,000
Engineering-miscellaneous - - 7,500 15,000
Total Operations and Maintenance 31,058 41,854 65,000 60,000 Total Expenditures 31,058 41,854 65,000 60,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
126
Community Facilities Fee Fund

FUND SUMMARY
The Community Facilities Fee Fund is used to provide administration funds for the administering of the community facilities program.

BUDGET HIGHLIGHTS
- $224,907 in funding is provided by the Community Facilities Fee Fund. - $10,000 is included for engineering.
- $10,000 is included for legal services.
- $30,000 is included for CFF updates.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Community facility admin fee 171,362 200,908 276,655 224,907 Total 171,362 200,908 276,655 224,907

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Professional services 31,058 41,854 50,000 30,000
MHCSD counsel - - 5,000 10,000
Engineering-miscellaneous - - 5,000 10,000
Total Operations and Maintenance 31,058 41,854 60,000 50,000 Total Expenditures 31,058 41,854 60,000 50,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
127
Special Tax #1 - Roads Fund

FUND SUMMARY
The Roads Fund is a special tax that is used to fund the maintenance and development of roads within the City.

BUDGET HIGHLIGHTS
- $10,321,949 in funding is provided by the Roads Fund. - $278,409 is included for signal maintenance.
- $543,024 is included for irrigation.
- $1,450,000 is included for landscaping and tree maintenance of the roadways.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income 296,258 271,196 200,000 150,000
Special assessments-current 8,673,183 9,154,395 9,721,667 10,171,949 Total 8,969,441 9,425,591 9,921,667 10,321,949

EXPENDITURES
Personnel Services
Personnel 253,094 282,473 297,330 570,701
Labor allocation 99,024 124,236 227,463 467,347
Total Personnel Services 352,118 406,709 524,793 1,038,048 Operations and Maintenance
Signal maintenance 70,992 50,614 219,000 278,409
Auditors direct assmt svc charge 21,852 21,999 23,000 26,000 Engineering-miscellanous 70,605 59,584 66,300 336,000
GIS monitoring 785 8,112 15,000 15,000
Road maintenance 67,151 1,049,066 1,694,143 1,450,000
Publications & legal notices 1,346 - 1,500 2,500
Irrigation water 493,992 439,852 507,499 543,024
Software & related licenses 2,000 2,000 2,500 5,000
Utilities-traffic signals 10,789 15,059 15,233 16,000
Utilities-electricity 22,548 24,069 27,699 30,000
Main-structure & grounds 1,104 198,776 150,000 -
Landscaping 1,084,528 1,128,897 1,300,000 1,520,000
Overhead allocation 103,418 126,092 178,423 334,675
Total Operations and Maintenance 1,951,110 3,124,120 4,200,297 4,556,608 Total Expenditures 2,303,228 3,530,829 4,725,090 5,594,656 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
128
Special Tax # 2 - Public Safety Fund

FUND SUMMARY
The Public Safety Fund is a special tax that is used to provide funds for the Fire Department, Police Department, and emergency preparedness.

BUDGET HIGHLIGHTS
- $5,208,949 in funding is provided by the Public Safety Fund. - $4,967,120 is included for the Fire Department services. - $4,000,000 is included for San Joaquin County Sheriff services. - $225,000 is included for contract services.
- $748,818 is included for Rank Security services.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income - 20,000 - -
Special assessments-current 4,396,034 4,662,508 4,952,665 5,208,949 Total 4,396,034 4,682,508 4,952,665 5,208,949

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Maintenance-equipment - 1,084 - 5,000
Auditors direct assmt serv chg 21,852 21,999 23,000 26,000 Professional services 28,753 17,329 78,258 225,000
Fire Services-French Camp 2,878,620 3,407,060 3,493,642 4,967,120 Public safety 2,944,392 3,027,134 3,980,145 4,748,818
Maintenance-structure & grounds 13,420 10,803 12,560 15,000 Janitorial 16,375 15,535 8,546 13,000
Safety monitoring 155,880 113,347 192,818 250,000
Landscaping 11,090 12,623 13,034 24,288
Structures & improvement cost 756 - 64,159 50,000
Equipment 49,828 88,690 - -
Interest 19,335 23,326 6,445 -
Overhead allocation - - - -
Total Operations and Maintenance 6,140,301 6,738,930 7,872,607 10,324,226 Total Expenditures 6,140,301 6,738,930 7,872,607 10,324,226 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
129
Special Tax # 3 – Parks Fund

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Rents/concessions 132,180 329,147 118,675 120,000
Special assessments-current 763,639 810,157 859,379 896,863 Total 895,819 1,139,304 978,054 1,016,863

EXPENDITURES
Personnel Services
Personnel 506,285 589,682 614,667 1,022,550
Labor allocation 198,086 259,328 470,226 837,374
Total Personnel Services 704,371 849,010 1,084,893 1,859,924 Operations and Maintenance
Communication 3,238 4,213 5,000 5,000
Memberships - 165 940 1,630
Maintenance-equipment 1,222 - 5,000 8,000
Trans/travel training 2,234 1,500 3,000 5,000
Auditors direct assmt serv chg 7,636 8,102 9,000 10,500 Professional services 56,000 56,000 56,000 106,000
Engineering-miscellaneous - - 50,000 120,000
GIS monitoring - - 5,000 5,000
Publications & legal notices 9,945 973 3,000 3,000
Irrigation water 111,720 126,102 135,978 145,496
Software & related licenses 15,614 21,896 16,600 17,600 Household exp-janitorial service 137,102 149,518 166,554 333,292 Utilities-water 15,635 16,146 16,547 19,000
Utilities-electricity 53,450 55,969 58,044 62,785
Unity Center - 28,383 10,000 10,000
Maintenance-structure & grounds 108,118 49,023 281,101 470,000 Landscaping 839,648 962,919 1,153,799 1,262,000
MHCSD pledge facility payments 219,515 367,296 390,913 418,277 Security services 926 768 821 4,000
Sponsored events 37,794 25,831 21,910 21,750
Independence Day 23,779 19,401 21,700 23,500
Central Park Cinema - - 7,180 8,000
Music in the park 96,638 87,215 104,500 114,000
Kite festival 20,166 12,576 16,000 17,000
Bike rodeo 3,835 1,880 3,250 4,000
Holiday parade & lighting 18,016 18,653 21,000 26,000
Summer swim program 4,244 1,556 - -
Overhead allocation 207,499 263,196 368,860 599,648
Total Operations and Maintenance 1,993,974 2,279,281 2,931,697 3,820,478 Total Expenditures 2,698,345 3,128,291 4,016,590 5,680,402 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
130
Special Tax # 3 – Parks Fund

FUND SUMMARY
The Parks Fund is a special tax that is used to provide funds for parks maintenance and development. The funds are also used for recreation programs.

BUDGET HIGHLIGHTS
- $1,016,863 in funding is provided by the Parks Fund.
- $1,262,000 is included for the landscaping of parks.
- $333,292 is included for janitorial services.
- $418,277 is included for pledged facility payments.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
131
Special Tax # 4 - Public Works Fund

FUND SUMMARY
The Public Works Fund is a special tax that is used to provide funds for maintenance and lighting.

BUDGET HIGHLIGHTS
- $953,140 in funding is provided by the Public Works Fund. - $304,819 is included for electricity for the streetlights. - $1,045,710 is included for landscaping.
- $11,000 is included for service charges.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income 20,664 74,016 20,000 10,000
Special assessments-current 802,949 851,980 902,755 943,140 Total 823,613 925,996 922,755 953,140

EXPENDITURES
Personnel Services
Personnel 138,873 156,890 154,992 329,220
Labor allocation 54,337 68,999 118,571 269,600
Total Personnel Services 193,210 225,889 273,563 598,820 Operations and Maintenance
Street light maintenance 226,468 102,352 120,000 -
Auditors direct assmt serv chg 8,029 8,520 9,500 11,000 Utilities-street lighting 245,936 257,707 284,878 304,819 Landscaping - - 846,300 1,045,710
Overhead allocation 56,856 70,026 93,008 193,063
Total Operations and Maintenance 537,289 438,605 1,353,686 1,554,592 Total Expenditures 730,499 664,494 1,627,249 2,153,412
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
132
Development Services Fund

FUND SUMMARY
The Development Services Fund is used to account for resources associated with development. Expenses and revenues are allocated to the fund to track builder development expenses and revenues within the City.

BUDGET HIGHLIGHTS
- $2,100,000 in funding is provided by the Development Services Fund. - $1,000,000 is included for building services.
- $450,000 is included for planning services.
- $400,000 is included for the general plan.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Charges for services 72,589 105,316 2,087,714 2,100,000 Total 72,589 105,316 2,087,714 2,100,000

EXPENDITURES
Personnel Services
Personnel 458,709 554,574 1,987,653 1,680,249
Labor allocation 190,341 243,894 684,002 443,387
Total Personnel Services 649,050 798,468 2,671,655 2,123,636 Operations and Maintenance
Inspection/testing - - - 50,000
Planning servies - - 437,856 450,000
Development services - - 979,929 1,000,000
General plan - - - 400,000
Overhead allocation 196,087 248,719 508,443 227,049
Total Operations and Maintenance 196,087 248,719 1,926,228 2,127,049 Total Expenditures 845,137 1,047,187 4,597,883 4,250,685 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
133
Gas Tax Fund

FUND SUMMARY
The City receives gas taxes pursuant to State law which specifically designates this money for the research, planning, construction, improvement, maintenance, and operation of public streets and highways. California Revenue and Taxation Code (Section 7360) sets the statewide gas tax rate at $0.18 per gallon. The Road Repair and Accountability Act of 2017 (SB 1) adopted annual inflationary adjustments to all pergallon motor vehicle fuel excise taxes including the rates allocated through the Highway Users Tax Account. The State of California transfers Gas Tax Fund revenues to the City based on an allocation formula that distributes taxes collected on fuel sales.

BUDGET HIGHLIGHTS
- $601,700 in funding is provided by the Gas Tax Fund.
- $129,000 is included for street light maintenance.
- $580,000 is included for maintenance of structures and grounds.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Gas tax - - - 601,700
Total - - - 601,700

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Street light maintenance - - - 129,000
Main-structure & grounds - - - 580,000
Total Operations and Maintenance - - - 709,000
Total Expenditures - - - 709,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
134
Measure K Fund

FUND SUMMARY
In 1990, San Joaquin County voters passed a one-half percent sales tax increase dedicated to transportation projects. This original sales tax increase was set to expire in 2011; however, in 2006, voters passed a 30-year extension of the sales tax increase.

The San Joaquin Council of Governments administers the Measure K program. The City receives Measure K maintenance funding on a quarterly basis and administers the funding for maintenance, local capital projects, and to provide matching funds to leverage state and federal grant programs. Its members include San Joaquin County and cities of Stockton, Lodi, Manteca, Tracy, Ripon, Escalon, and Lathrop.

BUDGET HIGHLIGHTS
- $600,000 in funding is provided by the Measure K Fund. - $600,000 is being used to fund CIP road projects.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Measure K funds - - 595,645 600,000
Total - - 595,645 600,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Total Operations and Maintenance - - - -
Total Expenditures - - - -
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
135
Water Fund

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Utility service fee-operations 4,879,114 5,712,861 6,136,171 6,538,426 Miscellaneous revenue 95,807 421,700 20,838 26,000
Total 4,974,921 6,134,561 6,157,009 6,564,426

EXPENDITURES
Personnel Services
Personnel 528,887 644,525 288,104 528,126
Labor allocation 206,944 283,445 220,402 432,486
Total Personnel Services 735,831 927,970 508,506 960,612 Operations and Maintenance
Office expense-supplies 300 68 1,386 1,500
Office expense-postage 2,745 874 2,041 4,170
Communication 4,721 5,983 7,500 7,500
Professional services 1,026,891 1,189,476 1,427,596 1,730,000 MHCSD counsel 81,210 28,312 10,083 30,000
Engineering-miscellaneous 94,782 149,402 142,390 222,500 MHCSD utility billing/metering 130,467 142,421 167,527 190,000 MHCSD processing fees 97,460 109,083 138,402 145,000
GIS monitoring - - 5,000 5,000
State health department 38,103 41,298 45,000 50,000
Chemicals 408,373 352,470 250,000 -
Permits & fees 7,166 3,476 35,000 36,000
Utilities-water 1,083,887 902,969 1,300,000 1,339,000
Utilities-electricity 361,860 418,362 461,067 462,000
Main-structure & grounds 115,640 160,427 145,002 150,000 Maint&Repair - Collection Systems - 417,867 600,000 580,000 Landscaping 33,863 29,029 39,254 45,000
Irrigation water 6,352 9,164 11,203 11,987
Overhead allocation 216,237 287,671 172,887 309,706
Total Operations and Maintenance 3,710,057 4,248,352 4,961,338 5,319,363 Total Expenditures 4,445,888 5,176,322 5,469,844 6,279,975 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
136
Water Fund

FUND SUMMARY
The Water Fund is used to account for the activities associated with the production, distribution, and transmission of potable water by the City to its residents and businesses.

BUDGET HIGHLIGHTS
- $6,564,426 in funding is provided by the Water Fund.
- $1,339,000 is included for the purchase of raw water. - $580,000 is included for repairs to the water plant.
- $1,730,000 is included for water plant operations and services.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
137
Wastewater Fund

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income 34,512 284,824 40,000 10,000
Utility service fee-operations 3,892,324 3,838,372 4,001,662 4,161,729 Total 3,926,836 4,123,196 4,041,662 4,171,729

EXPENDITURES
Personnel Services
Personnel 503,369 615,386 271,907 508,188
Labor allocation 196,951 270,631 208,011 416,166
Total Personnel Services 700,320 886,017 479,918 924,354 Operations and Maintenance
Printing 2,369 76 378 800
Office expense-supplies 268 59 706 800
Office expense-postage - 673 642 1,194
Communication 494 456 700 700
Memberships 9,408 8,847 10,000 11,000
Professional services 616,225 688,408 1,133,722 1,416,000 Refuse disposal charges 136,151 122,099 44,139 50,000
Engineering-miscellaneous 28,939 - 84,100 84,100
MHCSD utility billing/metering 80,417 86,581 110,506 133,000 MHCSD processing fees 78,286 77,294 81,497 87,000
GIS monitoring - - 5,000 5,000
Chemicals 168,226 131,363 110,000 -
Permits & fees 26,386 27,502 40,000 45,000
Utilities-electricity 283,513 363,642 586,972 616,321
Irrigation water 7,232 9,164 11,203 11,763
Main-structure & grounds 157,306 315,376 250,000 205,000 Maint&Repair - Collection Systems - 26,290 30,000 30,000 Landscaping 17,930 15,795 15,955 45,000
Overhead allocation 205,782 274,665 163,168 298,014
Total Operations and Maintenance 1,818,932 2,148,290 2,678,688 3,040,692 Total Expenditures 2,519,252 3,034,307 3,158,606 3,965,046 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
138
Wastewater Fund

FUND SUMMARY
The Wastewater Fund is used to account for the activities associated with the collection, treatment, and disposal of wastewater from City residences and businesses.

BUDGET HIGHLIGHTS
- $4,171,729 in funding is provided by the Wastewater Fund. - $205,000 is included for the maintenance and repair of grounds and structures. - $616,321 is included for electricity for the wastewater plant. - $1,416,000 is included for wastewater plant operation and services.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
139
Stormwater Fund

FUND SUMMARY
The Stormwater Fund is used to account for the activities related to the operations and maintenance of the City’s storm drainage system.

BUDGET HIGHLIGHTS
- $1,046,074 in funding is provided by the Stormwater Fund. - $270,000 is included for the maintenance and repair of grounds and structures. - $255,000 is included for service provided for stormwater operations.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income 48,970 323,400 35,000 15,000
Utility service fee-operations 735,998 764,243 775,071 806,074 Storm drain sys-NPDES 66,066 185,130 263,400 225,000
Total 851,035 1,272,773 1,073,471 1,046,074

EXPENDITURES
Personnel Services
Personnel 139,221 174,037 104,054 173,772
Labor allocation 54,473 76,542 79,602 142,302
Total Personnel Services 193,694 250,579 183,656 316,074 Operations and Maintenance
Printing 693 22 261 300
Office expense-supplies 115 17 236 300
Office expense-postage - 197 294 350
Memberships - - 500 500
Professional services 334,712 484,525 399,454 255,000
MHCSD utility billing/metering 19,693 21,264 30,445 39,000 MHCSD Processing Fees 15,198 14,785 15,772 18,000
GIS monitoring - - 5,000 5,000
Permits & fees 12,232 11,924 10,000 10,000
Maint-structure & grounds 14,300 24,600 110,000 270,000 Landscaping 14,992 12,970 15,606 25,000
Overhead allocation 56,937 77,679 62,440 101,904
Total Operations and Maintenance 468,872 647,983 650,008 725,354 Total Expenditures 662,566 898,562 833,664 1,041,428
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
140
Lighting & Landscaping District 1 Fund

FUND SUMMARY
The Lighting & Landscaping District 1 Fund is used to account for the activities related to the lighting and landscape operations of districts with the City.

BUDGET HIGHLIGHTS
- $60,000 in funding is provided by the Lighting & Landscaping District 1 Fund. - $15,000 is included for the assessment of the Lighting & Landscaping District. - $17,000 is included for landscaping.
- $900 is included for assessment service charges.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income - - - -
Special assessments-current 77,432 87,618 61,430 60,000 Total 77,432 87,618 61,430 60,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 566 597 700 900
Engineering-miscellaneous 13,326 10,128 15,000 15,000
Landscaping 10,146 10,296 17,000 17,000
Total Operations and Maintenance 24,038 21,021 32,700 32,900 Total Expenditures 24,038 21,021 32,700 32,900
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
141
Lighting & Landscaping District 2 Fund

FUND SUMMARY
The Lighting & Landscaping District 2 Fund is used to account for the activities related to the lighting and landscape operations of districts with the City.

BUDGET HIGHLIGHTS
- $41,000 in funds is provided by the Lighting & Landscaping District 2 Fund. - $15,000 is included for the assessment of the Lighting & Landscaping District. - $12,000 is included for landscaping.
- $800 is included for assessment service charges.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Interest income - - - -
Special assessments-current 44,888 47,133 40,329 41,000 Total 44,888 47,133 40,329 41,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 403 403 600 800
Engineering-miscellaneous 12,734 10,741 15,000 15,000
Landscaping - - 12,000 12,000
Total Operations and Maintenance 13,137 11,144 27,600 27,800 Total Expenditures 13,137 11,144 27,600 27,800
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
142
Lighting & Landscaping District 3 Fund

FUND SUMMARY
The Lighting & Landscaping District 3 Fund is used to account for the activities related to the lighting and landscape operations of districts with the City.

BUDGET HIGHLIGHTS
- $370,000 in funds is provided by the Lighting & Landscaping District 3 Fund. - $20,000 is included for the assessment of the Lighting & Landscaping District. - $165,000 is included for landscaping.
- $5,000 is included for assessment service charges.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
Special assessments-current 398,969 423,975 384,237 370,000 Total 398,969 423,975 384,237 370,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 3,690 3,731 4,000 5,000
Engineering-miscellaneous 7,862 10,114 20,000 20,000
Landscaping 12,543 12,729 15,000 165,000
Total Operations and Maintenance 24,095 26,574 39,000 190,000 Total Expenditures 24,095 26,574 39,000 190,000
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
143
Debt Service Fund

DIVISION SUMMARY
The Debt Service Division provides funding for the City’s infrastructure. The division provides funding for the City’s outstanding debt.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUND SUMMARY
The Capital Projects Fund is used to account for the acquisition and development of major capital facilities.

BUDGET HIGHLIGHTS
- $8,775,444 in funding is provided to the Capital Projects Fund. - $3,881,444 is included for the corporation year improvements. - $1,350,000 is included for the aquifer storage recovery project.

AUDITED
ACTUAL
FY 2022/23

AUDITED
ACTUAL
FY 2023/24

PROJECTED
ACTUAL
FY 2024/25

PROPOSED
BUDGET
FY 2025/26

FUNDING SUMMARY
General Funds
General Fund - - - 600,000
Special Assessment Funds
Special Tax No. 1: Roads 575,932 211,831 2,380,000 1,274,000 Special Tax No. 2: Public Safety 1,288,792 377,367 700,000 - Special Tax No. 3: Parks - 918,470 420,000 420,000
Special Tax No. 4: Public Works 1,281,039 210,000 450,000 50,000 Special Revenue Funds
Measure K - - - 600,000
Impact Fee Funds
Community Facilities - - - 4,231,444
Enterprise Funds
Water O & M 464,283 - 1,580,000 1,600,000
Wastewater O & M 140,957 - - -
Stormwater O & M - - 430,000 -
Total 3,751,003 1,717,668 5,960,000 8,775,444

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Capital Expenditures
Roads 394,138 89,770 1,725,000 1,874,000
Equipment & Vehicles 181,794 122,061 655,000 4,831,444
Public Safety 1,288,792 377,367 700,000 -
Parks - 918,470 420,000 420,000
Public Works 1,281,039 210,000 450,000 50,000
Water Capital Projects 464,283 - 1,580,000 1,600,000
Wastewater Capital Projects 140,957 - - -
Stormwater Debt Service - - 430,000 -
Total Capital Expenditures 3,751,003 1,717,668 5,960,000 8,775,444 Total Expenditures 3,751,003 1,717,668 5,960,000 8,775,444 Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
146
CIP Projects by Funding Source

DESCRIPTION
The CIP Projects by Funding Source shows the total project cost, prior year’s expenditures, and the five-year appropriations needed for the projects.

ROADS Project Total Appropriated Expenditures Carry Over 2025/26 2026/27 2027/28 2028/29 2029/30 Arterial Landscape Improvement Program 825,000 450,000 48,063 401,937 75,000 75,000 75,000 75,000 75,000 Pedestrian and Traffic Safety 2,275,000 800,000 514,338 285,662 475,000 300,000 300,000 200,000 200,000 Traffic Calming Program 310,000 - - - 10,000 75,000 75,000 75,000 75,000 Bikeway Safety Improvements 663,000 - - - 663,000 - - - - Safety Improvements at Central Parkway Intersections 151,000 - - - 151,000 - - - - Traffic Signal Installation 500,000 - - - 500,000 - - - - Pavement Management Program Repairs 9,136,209 4,336,209 3,414,421 921,788 - 1,200,000 1,200,000 1,200,000 1,200,000 Total 13,860,209 5,586,209 3,976,822 1,609,387 1,874,000 1,650,000 1,650,000 1,550,000 1,550,000

EQUIPMENT & VEHICLES
Equipment Replacement (Fund Accrual) 715,000 340,000 20,365 319,635 75,000 75,000 75,000 75,000 75,000 Town Hall Emergency Generator Project 495,000 195,000 - 195,000 300,000 Fleet Purchases 715,000 340,000 256,939 83,061 75,000 75,000 75,000 75,000 75,000 New Transit Services 600,000 500,000 - 500,000 100,000 - - - - Town Hall & Library Improvements 350,000 - - - 350,000 - - - - EV Charging Station Installation 700,000 50,000 - 50,000 50,000 300,000 300,000 - - Corporation Yard Improvements 4,051,444 170,000 - 170,000 3,881,444 - - - - Total 7,626,444 1,595,000 277,304 1,317,696 4,831,444 450,000 450,000 150,000 150,000

PUBLIC WORKS
Residential Sidewalk Repair Program 3,420,000 1,980,000 993,903 986,097 - 380,000 360,000 350,000 350,000 City Building Facilities Repair Program 450,000 200,000 44,041 155,959 50,000 50,000 50,000 50,000 50,000 Total 3,920,000 2,230,000 1,037,944 1,192,056 50,000 430,000 410,000 400,000 400,000 PARKS
Playground & Park Improvement Program 4,103,000 2,143,000 2,123,354 19,646 420,000 400,000 380,000 380,000 380,000 Total 4,103,000 2,143,000 2,123,354 19,646 420,000 400,000 380,000 380,000 380,000 WATER
Aquifer Storage and Recovery Project 5,000,000 650,000 - 650,000 1,350,000 3,000,000 - - - Drought Contingency Funding 3,400,000 2,150,000 315,051 1,834,949 250,000 250,000 250,000 250,000 250,000 Total 15,270,592 9,670,592 3,912,524 5,758,069 1,600,000 3,250,000 250,000 250,000 250,000 Grand Total 47,474,245 23,918,801 11,947,686 11,971,116 8,775,444 6,180,000 3,140,000 2,730,000 2,730,000 5 Year Plan
Appropriations
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
147
Arterial Landscape Improvement Program
Department: Public Works
Category: Road
Project Number: R21224
2025/26 Budget: $75,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
The Arterial Landscape Improvement
Program is designed to assess over
6 million square feet of City
Landscaping to determine areas in
need of renovation. Selected areas are graded to determine the level of renovation needed. A minor level will consist of minor refreshing of bark, replacing missing plant material, Minor plant replacement, etc. Higher level areas will likely be more than 10 years in age, in a state of decline due to age and disease, areas impacted by environmental factors, etc. These areas will most likely require complete removal and replanting of landscape material.

This program enters each arterial and INTRACT location of landscaping and enters the coordinates into a Global Position System (GPS). This data is imported into a Geographic Information System (GIS) and assigned a number. Software that works within the GIS platform allows the Landscape Manager to program the variety, size, age, condition of each area. The program tracks progress and estimates renovation scheduling for optimum efficiency. Budgets are drafted with accuracy and landscape renovations scheduled accordingly.

JUSTIFICATION
Due to state mandated requirements related to water conservation and drought, the MHCSD will be required to follow strict guidelines on all landscape renovation projects.

This will require the MHCSD to introduce drought tolerant shrubs into the landscape to increase water saving potential.

Nearly 7 million square feet of landscaping line arterial roadways throughout Mountain House. The health and vigor of the landscape is dependent of proper maintenance and renovation. Renovation is necessary to maintain the value of the current 7 million square feet. The estimated value is well into the millions of dollars. Thriving landscape enhances ascetics and adds value to the community. A long-term reduction in maintenance is experienced due to the reduction of major disease and plant deaths requiring costly removal and replacements.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
148
Pedestrian and Traffic Study
Department: Public Works
Category: Road
Project Number: R21226
2025/26 Budget: $475,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
CIP Programs are designed to address multiple repairs and maintenance needs. The Pedestrian and Traffic Safety Program consists of an aggregate of defined projects that individually exceed
$2,000 each and add
value and lifespan to
existing infrastructure.

JUSTIFICATION
Per the ADA guidelines,
all agencies need to
develop an ADA transition plan to upgrade any non-standard ramps. This project will complete the ADA Transition Plan with internal resources and will upgrade the existing ramps as required by the addition of truncated domes to the ramps. This will be an annual program to complete all upgrades.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
149
Traffic Calming Program
Department: Public Works
Category: Road
Project Number:
2025/26 Budget: $10,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
The safety and accessibility of pedestrians are
critical components of urban infrastructure,
particularly as community growth increases
motorist and pedestrian traffic. This program will
help address immediate safety challenges but also
lays the groundwork for a sustainable, accessible
transportation framework that meets the diverse
needs of all residents. This program is designed to
address speeding and enhance general traffic
safety in residential neighborhoods throughout
Mountain House. The program will deploy a mix of
engineering, enforcement, and community engagement strategies to reduce vehicular speeds and improve pedestrian safety.

JUSTIFICATION
By addressing speeding proactively through a mix of physical interventions, data analysis, and community involvement, this program aims to create a safer, more livable neighborhoods while also reducing long-term costs associated with traffic accidents.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
150
Bike Safety Improvements
Department: Public Works
Category: Road
Project Number:
2025/26 Budget: $663,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
This project will improve Great Valley Parkway (from Byron Road to Grant Line Road), Arturo Boulevard (from Great Valley Parkway to Central Parkway), and Main Street (from Great Valley Parkway to Central Parkway).

Highlights include converting one vehicular
travel lane in each direction to accommodate
for the implementation of a Class IV bikeway
facility. A Class IV facility provides for a
separated bikeway for the exclusive use of
bicycles and not only includes a minimum
separation between the bikeway and the
through vehicular traffic, but also may include
barriers like posts, or on-street parking, where appropriate.

JUSTIFICATION
Highway Safety Improvement Program (HSIP) is a federal-aid program administered by Caltrans and established to achieve a significant reduction in traffic fatalities and serious injuries on all public roads. Caltrans’ Division of Local Assistance manages California's local agency share of HSIP funds. The HSIP focuses on infrastructure projects with nationally recognized crash reduction factors. HSIP projects are prioritized based on crash experience, benefit from counter measures, or other data-supported means.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
151
Safety Improvements at Central Parkway
Department: Public Works
Category: Road
Project Number:
2025/26 Budget: $151,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
This project will improve Central Parkway at the intersections with Legacy Drive and Heritage Drive to include installing additional Rectangular Rapid Flashing Beacons (RRFBs) in the median and enhance roadway signage and pavement striping. RRFBs are pedestrian-actuated traffic devices used at uncontrolled, marked crosswalks to increase driver awareness.

JUSTIFICATION
In 2022, the then Mountain House Community Services District submitted two grant applications to Caltrans for Cycle 11 of the HSIP grant program. In March 2023, both the Bikeway Safety Improvements project and the Safety Improvements at Central Parkway Intersections project were approved for State Cycle 11 HSIP funding in the amount of $249,930, and $135,900,
respectively for design and
construction. The projects require a
minimum 10 percent local fund match;
however the designated minimum
match for this specific project is
$151,000.

Shortly after the announcement of the
Cycle 11 HSIP funding awardees,
Caltrans notified the then Mountain
House Community Services District it was not an eligible grant recipient because it was not a city, county, or tribal government federally recognized within the State of California.

In partnership, to allow Mountain House to benefit from the grant-funded improvements, Caltrans has authorized San Joaquin County to be the sponsor for the projects. San Joaquin County is working with the City to secure funding and complete delivery of the projects..

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
152
Traffic Signal Installation
Department: Public Works
Category: Road
Project Number:
2025/26 Budget: $500,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
This program is designed to install new traffic signals at key intersections throughout Mountain House to enhance traffic safety and operational efficiency. The program includes:

Site Identification and Evaluation – A comprehensive review of high-traffic intersections and conflict points using crash data, traffic flow studies, and community input to determine where new signals are most needed.

Design and Engineering – Development of signal designs in strict accordance with the California Manual on Uniform Traffic Control Devices (CAMUTCD), ensuring standardized signal configurations, mounting heights, visibility, and timing that promote uniformity and safety.

Installation and Integration – Coordination with electrical, civil, and communication teams to ensure that new installations integrate seamlessly with existing infrastructure.

This phase includes field work, signal installation, and subsequent system testing.

JUSTIFICATION
Enhanced Public Safety – Traffic signals are proven to reduce intersection collisions by clearly delineating right-of-way and reducing driver confusion. The implementation of new signals is expected to lower accident rates and improve pedestrian and vehicular safety.

Compliance with CAMUTCD Guidelines – The California Manual on Uniform Traffic Control Devices establishes national and state standards for traffic control. New installations will adhere to these guidelines, ensuring that signals are consistently designed and operated across the region, which not only meets legal requirements but also instills public confidence in road safety.

Traffic Efficiency and Flow – Modern signal installations can be integrated with adaptive control technologies that help regulate traffic flow and reduce congestion, ultimately supporting smoother, more predictable travel patterns and reducing delays.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
153
Equipment Replacement
Department: Public Works
Category: Road
Project Number: EV21221
2025/26 Budget: $75,000
Project Start: Ongoing
Target Completion: Ongoing

DESCRIPTION
The Equipment Replacement Fund annual accrual will allow the purchase of substantial pieces of equipment for long-term planning for maintenance and repairs.

JUSTIFICATION
Equipment for various types of
maintenance and repairs to meet
the future needs of our District will
be needed as our community grows
and infrastructure ages. Equipment
will be needed to establish rapid
response and reduce our
dependency on contracted services
and repairs.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
154
Town Hall Emergency Generator
Department: Public Works
Category: General Fund
Project Number: 7432
2025/26 Budget: $300,000
Project Start: 2025/26
Target Completion: 2025

DESCRIPTION
The original plan to supply emergency power for an Emergency Operations Center was to purchase mobile generator to support that.

Exterior panels and cable outlets were
established outside so that a mobile
generator can be set up in the event we
needed backup power. This backup power
would energize emergency circuitry was
designed into several rooms, primarily
intended as an Emergency Operations
Center (EOC). There is concern that the
mobile generator idea is not sufficient and
rather a stationary unit will provide a
seamless source of power in the event of a
power outage. In researching the two options,
the mobile generator is basically a plug-andplay situation, since we have the panel, plugs and cables already. The stationary unit, however, will require to be installed and hard wired in, along with other requirements..

JUSTIFICATION
Equipment for various types of maintenance and repairs to meet the future needs of our District will be needed as our community grows and infrastructure ages. Equipment will be needed to establish rapid response and reduce our dependency on contracted services and repairs.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
155
Fleet Vehicles
Department: Public Works
Category: Road
Project Number: EV21223
2025/26 Budget: $75,000
Project Start: Ongoing
Target Completion: Ongoing

DESCRIPTION
These funds are established to replenish City fleet vehicles.

JUSTIFICATION
Fleet vehicles are replaced at a determined age and mileage. Vehicles 7 to 8 years old require an accelerated pace
of repairs and maintenance
as the residual value rapidly
declines. Vehicles will be
surplused in 8 to 10 years
before value depreciation
accelerates. The cost benefit
to remove these vehicles and
replace them is beneficial to
the District. As the District
incorporates and becomes a
city in 2024, it is expected that staffing will expand. To meet the need for additional inspectors, light-duty pickup trucks will be assigned to maintenance and new zero emission vehicles (ZEV) will be provided to inspectors. The State of California mandated that all municipal purchased fleet vehicles from 2024 to 2027 must consist of 50% ZEVs, after the year 2027, all purchases must be ZEVs.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
156
Town Hall & Library Improvements
Department: Public Works
Category: Public Works
Project Number: PW21224
2025/26 Budget: $350,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
The City Building Repair Program is designed to assess more than 10 City structures to determine areas in need of repair and maintenance. Selected areas are graded to determine the level of maintenance needed.

Each City structure will be
entered into the geographical
information system (GIS) with
cataloged photographs, location
of structure, signature of
decorative features and
historical maintenance records. The program tracks the progress of maintenance to keep maintenance activities on schedule. Consistency in maintenance will create accurate budgets and efficient maintenance schedules.

Maintenance projects that qualify under this program are consistent with HVAC, Carpeting, Painting, Roofing, Plumbing, etc.

JUSTIFICATION
Many City buildings average 15 years in age. Maintenance is becoming necessary to maintain these structures to maintain their value. The portfolio of City buildings is valued at approximately $22M, and the soon to be completed Wastewater Treatment Facility expansion project will add additional value. Proper planning of annual structural maintenance will maximize that value.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
157
EV Charging Station
Department: Public Works
Category: General Fund
Project Number: 7430
2025/26 Budget: $50,000
Project Start: 2025/26
Target Completion: 2027

DESCRIPTION
The cost of installing an EV charging station can vary depending on factors such as the type of charger, electrical work required, and any available discounts or rebates.

Generally, for a Level 2 charger, the cost can range from $2,000 to $10,000, covering the charger itself, electrical installation, and construction work. Planning and utilizing existing electrical infrastructure can help reduce costs further. It will cost an additional $3,000 to $5,000 to extend an
existing electrical service to
parking spots. For the sake of
this projection, $15,000 per
unit (double connection) will
be used as a factor.

JUSTIFICATION
As the District incorporates
and becomes a city in 2024, it
is expected that staffing will
expand. To meet the need for additional inspectors, light-duty pickup trucks will be assigned to maintenance and new zero emission vehicles (ZEV) will be provided to inspectors. The State of California mandated that all municipal purchased fleet vehicles from 2024 to 2027 must consist of 50% ZEVs, after the year 2027, all purchases must be ZEVs. To meet the needs of the mandate, EV charging stations must be planned for the Town Hall secured parking, Town Hall parking lot, corporation yard and utility plants.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
158
City Building Repair Program
Department: Public Works
Category: Public Works
Project Number: PW21224
2025/26 Budget: $50,000
Project Start: 2021/22
Target Completion: Ongoing

Each City structure will be entered into the geographical information system (GIS) with cataloged photographs, location of structure, signature of decorative features and historical maintenance records. The program tracks the progress of maintenance to keep maintenance activities on schedule. Consistency in maintenance will create accurate budgets and efficient maintenance schedules.

Maintenance projects that qualify under this program are consistent with HVAC, Carpeting, Painting, Roofing, Plumbing, etc.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
159
Playground & Park Improvement Program
Department: Public Works
Category: Parks
Project Number: PK21221
2025/26 Budget: $420,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
Playground & Park Improvement Program is designed to assess all playgrounds (currently located at 8 parks) to determine areas in need of repair and maintenance.

Playgrounds are audited and assessed to determine the level of maintenance needed or the need of new replacement apparatus.

The Playground & Park Improvement Program will allow City staff to assess and catalog playgrounds and equipment to create a prioritized list that will list needed equipment upgrades, redesign, and new
installations. In addition, the
program will also enhance
playground safety and reduce
playground closures due to
disrepair. Budgeting annually will
allow funding to accrue and
playgrounds to be renovated without sudden spikes in annual CIP budgeting.

The Playground and Parks Improvement Program including all City parks, to determine areas in need of renovation. Selected areas are graded to determine the level of renovation needed. A minor level will consist of minor refreshing of bark, replacing missing plant material, minor plant replacement, etc. Higher level areas will likely be more than 10 years in age, in a state of decline due to age and disease, areas impacted by environmental factors, etc. These areas will most likely require complete removal and replanting of landscape material.

JUSTIFICATION
The Playground and Park Improvement Plan is designed to encompass all park and playground facilities within the district. Each playground will be catalogued, mapped and set in GIS with manufacturer, cost, age, and number of each furnishing, play apparatus and structures. An annual audit of playgrounds and an assessment of park furnishings will be conducted to establish replacement needs and to address safety issues. A plan will be drafted and reviewed for the following Budget fiscal year. An extended 5-year plan will be established to plan long-term needs.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
160
Drought Contingency
Department: Public Works
Category: Water
Project Number: W21223
2025/26 Budget: $250,000
Project Start: 2021/22
Target Completion: 2023

DESCRIPTION
The funds are designed to develop a reserve for the purchase of emergency water supplies in the event of a catastrophic loss of water. In the event of an emergency such as a severe drought, a State order to stop pumping, or the loss of the main supply line from BBID, this allocation will provide money to quickly work with other agencies and suppliers to secure emergency water.

JUSTIFICATION
The Byron Bethany Irrigation District (BBID) possesses certain pre-1914 water rights determined to be historically dependable. In 2015, the SWRCB notified BBID and the City of a “Notice of Unavailability of Water and Need for Immediate Curtailment” (June 12, 2015), which was subsequently dismissed by the SWRCB Board. During this time, the MHCSD has continued to comply with all state requirements, including adopting its first ever urban water management plan, which was accepted by the California Department of Water Resources on January 18, 2017. The City has been investigating various water supply and diversion options to ensure a reliable source of water during water supply emergencies and dry years. These investigations, along with various negotiations, will continue until the water supply and diversion portfolio meet the needs of the community.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
161
Aquifer Storage and Recovery Project
Department: Public Works
Category: Stormwater
Project Number: W7416
2025/26 Budget: $1,350,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
The City currently has one source of water provided exclusively from surface water purchased under an agreement with the BBID. BBID's primary source of supply is surface water from the Sacramento - San Joaquin Delta. BBID has a pre-1914 water right for the reasonable and beneficial use of 60,000 AFY. BBID limits the annual diversion from the Delta to 50,000 AFY at a rate not to exceed 300 cubic feet per second under agreement with the DWR. Funds provided will create a multi-year project to drill wells for establishing an emergency Aquifer Storage and Recovery (ASR) reservoir. Established wells will be injected with potable water during seasonal low usage months creating a subsurface bank within the aquifer. During times of severe drought, bank of water can be accessed to bolster supplies. The project will include contracting with other agencies or proceeding with the drilling of test wells, testing of ground water quality, permeability of the soil and capacity estimations. Wells that are deemed unfeasible might be used as a second source for construction purposes or landscaping. This will also include adopting a Ground Water Management Plan that is required in the process of establishing an ASR well. Adding an emergency source of water to the MHCSD portfolio will improve our resiliency in times of drought or supply emergencies..

JUSTIFICATION
The Byron Bethany Irrigation District (BBID) possesses certain Pre-1914 water rights determined to be historically dependable and is contained in the certified Environmental Impact Report approving the master plan community of Mountain House. In 2015, the SWRCB served BBID and the MHCSD a “Notice of Unavailability of Water and Need for Immediate Curtailment” (June 12, 2015), which was subsequently dismissed by the SWRCB Board. During this time, the MHCSD has continued to comply with all state requirements, including adopting its first ever urban water management plan, which was accepted by the California Department of Water Resources (January 18, 2017).

MHCSD is (and has been) prudently investigating various water supply and diversion options to ensure a reliable source of water during water supply emergencies and dryyears. These investigations, along with various negotiations, continue and will go on until the water supply and diversion portfolio meet all reliability needs for the community.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
162
Appendix
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
163
2023/2024 Resolutions Adopting Budget

BUDGET ADOPTION
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
164
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
165

FEES FOR SERVICES ADOPTION
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
166
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
167

ESTABLISHING SPECIAL TAX AMOUNTS
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
168
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
169
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
170
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
171

UPDATED FINANCIAL MANAGEMENT MANUAL
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
172
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
173
Strategic Plan
Mountain House Community Services District
Strategic Plan
Adopted March 7, 2023

INTRODUCTION
Strategically positioning the City to provide the optimal quality of life is an essential undertaking, and it requires ongoing discussion and collaboration between elected officials, staff, and residents.

The over-arching organizational principles guiding the Strategic Plan are the City’s mission statement and its values. Strategic objectives have been developed with the goal of ensuring that we collectively advance the following:

Mission Statement
To provide responsive service to our growing community that exceeds expectations at a fair value.

Values
Ethics: To hold to the highest ethical standards and to act with transparency, honesty and integrity.

Responsibility: To accept responsibility for our individual and collective actions, and to have the courage to take appropriate actions on behalf of the whole irrespective of political pressures.

Vision: To be visionary, innovative and resourceful.

Community-Minded: To create a vibrant, thriving, and resilient community and to build strong, positive partnerships with residents and stakeholders.

Respect: To interact respectfully, use active listening skills and develop selfawareness to monitor how our actions impact ourselves and others.

Competence: To competently discharge our duties and seek opportunities to increase our efficiency.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
174
18 Powers
The City is a community services district with a wide range of powers, similar to a fullservice city. Listed below are the City’s 18 powers:

1. Water services

2. Sewer services

3. Garbage services

4. Fire protection

5. Public recreation

6. Street lighting

7. Library buildings and services

8. Convert utilities to underground

9. Police protection

10.Road maintenance

11.Transportation services

12.Graffiti abatement

13.CC&R enforcement

14.Flood control protection

15.Pest and weed abatement

16.Wildlife habitat mitigation

17.Telecommunications services

18.Dissemination of information

STRATEGIC ISSUES FRAMEWORK
The Board established the following priority list of strategic issues that will remain a focus for them over the next few years. The Board will work with staff, stakeholders, and the community to see these concerns addressed expeditiously.

Incorporation: The Board intends to investigate the possibility of incorporating as a city.

Water Resources: The Board intends to ensure the residents of Mountain House continue to have access to adequate, quality water resources and, in light of projected continued and recurrent drought conditions in California, will investigate and secure alternative water sources to ensure continuity of service.

Development: The Board intends to monitor and encourage mixed-use, commercial development to increase convenience and quality of life for Mountain House residents.

Public Safety: The Board intends to ensure the Mountain House community is as safe as possible, to maintain sufficient levels of public safety resources, and to effectively deploy appropriate technological solutions to assist public safety personnel as they discharge their duties.

Transportation: The Board intends to provide safe, well-maintained, and environmentally balanced roadways for motorists, cyclists and pedestrians and partner with other public agencies to gain access to public transportation and relieve congestion.

Partnerships: The Board intends to build strong partnerships at all levels and to focus on developing closer relationships with the community, Lammersville Unified School District, San Joaquin and Alameda Counties, developers, and other stakeholders.

Master Restrictions: The Board intends to ensure the community receives clear, concise guidance on master restrictions, and that effective technology resources are Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
175
deployed to assist staff as they monitor, and residents as they comply with, stated restrictions.

Board Culture: The Board intends to work on ensuring Board member relationships are strong and communications between the Board, staff, stakeholders, and the community are clear, timely and accurate.

DEPARTMENT MISSION STATEMENTS, ACTIVITIES AND OBJECTIVES As part of our review and update of the Strategic Plan, staff focused on their departmental responsibilities, their mission statement, and a brief description of current services they provide. This is meant to help residents and stakeholders better understand the wide variety of issues and tasks already handled by staff. Staff then updated their strategic objectives using a future-focused approach.

ADMINISTRATION DEPARTMENT
Mission Statement:

To provide leadership and effective support services subject to direction from the Board.

Current Activities:
• Provide oversight of the City’s financial condition
• Direct, supervise and monitor activities of each department and personnel • Set and communicate goals and objectives
• Manage staff, day-to-day operations and set the tone for the organizational culture • Be forward thinking and anticipate future needs
• Inspire and motivate staff
Strategic Objectives:
• Complete the incorporation process through LAFCo and voter approval • Conduct community meetings to educate community on impacts of incorporation:
o how will it affect revenues
o what new responsibilities will we take on
o what are the trade offs
o how will it affect policing
• Develop and implement a transition plan from a community services district to a municipal corporation including updates to the Code of Ordinances and organizational and staffing changes
• Strengthen collaborative partnerships with other governmental agencies to ensure sourcing of a reliable quality water supply and agreements for road improvements • Increase our networking efforts and lobbying capacity so we can be involved in legislative and regulatory issues as they relate to the City • Investigate and evaluate opportunities to obtain financing to retire or refund longterm debt related to developer reimbursements • Evaluate opportunities to obtain, secure and properly administer grant funding Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
176
• Evaluate economic development plans and land use planning • Prepare a staffing development plan, including triggers at which new employees will be required to fulfill overall strategic objectives • Evaluate performance management processes to review accountability and efficiency of operations
• Strategize talent and business planning for the future of the organization District Clerk
Mission Statement:

To provide responsive service to the Board for those issues that fall within their purview.

Current Activities:
• Provide support and information to the Board, including Board packages • Ensure compliance with noticing requirements and posting of agendas • Manage in-person and remote public meetings
• Responsible for records management with coordination of individual departments Strategic Objectives:
• Implement automated voting and minutes system if desired by the Board • Conduct periodic training sessions for agenda preparation and revise internal workflow procedures as needed to provide for uniformity and timeliness • Update of Districtwide Conflict of Interest Code pursuant to the Political Reform Act • Schedule State-mandated training for elected officials and staff • Coordinate with Administrative Services to improve the City’s records management system to enable quick response to public records requests and to assist District staff more efficiently with document research
• Purge records that qualify under the City’s records retention policy • Investigate ability to provide closed captioning services for public meetings

ADMINISTRATIVE SERVICES
Human Resources
Mission Statement:

To manage recruitment and retention programs, assist employees with benefit and employment issues, develop, schedule and monitor employee and supervisor training, and comply with professional standards and legal requirements.

Current Activities:
• Perform recruitments to fill new positions and vacancies • Establish onboarding processes and human resources training for incoming employees
• Ensure all aspects of labor agreements are implemented including cost of living increases, step increases and performance evaluations
• Schedule, review, and track timeliness of Employee Performance Reports • Provide guidance and information to supervisors
Strategic Objectives:

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
177
• Implement an online employment application process
• Implement an overall human resources information system to track Human Resource activities including performance evaluations, training, and dates of salary changes
• Post current position grades and salary schedules on District website • Update personnel policy as needed
• Update job descriptions to be consistent with current job duties and needs of the City
• Develop a policy for progression within a job series
• Develop and conduct training programs for topics ranging from supervision, disciplinary actions, and workers’ compensation
• Increase training and continuing education for staff
• Establish career paths for employees and coordinate and encourage training and education to accomplish these goals
• Negotiate Memoranda of Understanding, side letters, and meet and confer sessions with union representing General and Supervisor/Confidential employees Risk Management
Mission Statement:

To manage District assets and infrastructure to minimize liability and loss.

Current Activities:
• Respond to claims
• Coordinate with other departments to obtain information needed to file claims and assess outstanding risks
Strategic Objectives:
• Perform a risk assessment identifying areas of greatest concern in terms of potential financial loss, probability and possibility
• Develop a policy and procedure manual for risk management, including processes for reporting incidents, staff responsibilities, timelines, follow-up, and reporting • Provide training for the Board and staff on implementation of plans to reduce loss and liability
• Develop a comprehensive inventory of District assets, including current condition of the assets
• Develop a workplace safety program, including personal security, field work and use of District vehicles
• Monitor vehicle activity using Global Positioning Software and provide reports to supervisors, Human Resources and emergency response personnel as appropriate
• Provide training for supervisors to minimize risk of employment-related claims Finance
Mission Statement:

To safeguard district assets and to provide timely, accurate and useful financial information.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
178
Current Activities:
• Prepare financial and compliance reports
• Process payroll, accounts payable, receivables, and cash receipting • Compile and monitor operating and capital improvement budgets • Develop, update, and implement fiscal policies
• Prepare monthly developer billings and quarterly notes payable updates Strategic Objectives:
• Implement accounts receivable and fixed assets modules • Develop a cost allocation program
• Identify appropriate training opportunities
• Investigate and develop new revenue generation opportunities • Update financial policy manual as appropriate
• Assist with Prop 218 rate setting process and monitor adequacy of rates • Assist with impact fee updates and reporting
• Monitor and adjust developer deposit and billing procedures • Continue work on OpenGov templates, stories, and year-over-year analysis • Assist with incorporation effort
• Issue Annual Comprehensive Financial Reports within 6 months of year end • Issue AB1600 report within 6 months of year end
• Manage grant reporting and requests for payments
Customer Service
Mission Statement:

To provide responsive customer service to the community.

Current Activities:
• Resolve customer billing issues and make continuous improvements in utility billing systems
• Direct incoming calls and walk-in traffic to the appropriate department • Provide overall front office management
Strategic Objectives:
• Develop a phone tree to more efficiently direct incoming calls • Review and update as needed an informative frequently asked questions document for customers
• Provide a self-service kiosk for routine customer service issues and requests, park reservations, and other services
• Develop and supply customers and residents with informative brochures and printed materials
• Evaluate and implement different payment options for utility accounts as they become available
• Implement State-mandated requirements such as SB998
• Evaluate and plan for possible change in billing/collection provider Information Technology
Mission Statement:

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
179
To purposefully utilize the latest technology to provide service to the Community and staff.

Current Activities:
• Manage equipment and phone systems
• Coordinate various software systems including implementation, integration, upgrades, and training
Strategic Objectives:
• Identify and provide tools to enhance employee productivity • Analyze the nature and cost of ISD services
• Coordinate assignments for on-site ISD services
• Develop policies concerning use of technology including remote access, use of District equipment, and email retention
• Explore using Laserfiche or other state-of-the-art document imaging systems • Evaluate use of the cloud for records storage and address any privacy concerns or vulnerabilities in the system
• Develop and implement a file structure for the I drive and Laserfiche documents Web Services, Social Media, and Other Communications
Mission Statement:

To provide useful and comprehensive information to the community about District operations and activities in a transparent and timely manner.

Current Activities:
• Maintain District website and platforms on social media such as Facebook, Instagram and Nextdoor
• Disseminate information via email blasts, utility bill inserts, YouTube videos, and advertising in Mountain House Matters
• Offer on-line surveys to engage and educate the community • Facilitate and publicize community meetings
Strategic Objectives:
• Monitor and adjust the City website so it is informative, up-to-date, easy to navigate and maintain, internally consistent and pleasing to view • Ensure that all links work properly and remove stale-dated items • Engage departments in providing content to the website and other communication platforms; each department will assign a social media liaison • Expand offerings of on-line fillable forms for a variety of services including variances, and building permit applications
• Post information and notices of community concern, such as COVID-19 updates, road closures, and development activity
• Obtain equipment and training to produce and post video content, such as an aerial overview of the community or community events
• Conduct regular community workshops
• Investigate opportunities to expand mailing lists and communication channels • Continuous improvement and training on the website and use of social media Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
180
• Investigate use of a public relations firm to assist the City in creating a brand and messaging
• Post a link to West Valley website to provide information such as schedules for trash pickup and street sweeping
Administrative Support
Mission Statement:

To assist District departments in coordinating and processing documents, invoice payments, contract management, and other administrative tasks.

Current Activities:
• Coordinate and process agreements, invoices, documents and manage archives • Assist in coordinating and processing Board related reports and documents • Continue to implement digital signing and recording process for legal documents • Manage general office operations including requests for supplies, services and equipment
Strategic Objectives
• Ensure that documents are properly tracked, recorded and filed • Assist departments in compiling and distributing formal project and construction bid packages
• Complete and continue to update the Reference Library • Monitor status of contracts and report information to vendors and project managers Recreation
Mission Statement:

To provide exceptional facilities and programs to serve all age groups and the diversity of interests in the community.

Current Activities:
• Create, execute, and report on all events
• Manage facility rentals
• Plan and manage District-sponsored events
• Solicit and coordinate community volunteers
• Publicize events with website and social media, banners at community entrances, and advertising in Mountain House Matters
Strategic Objectives:
• Develop and update policies relating to the use of District facilities, parks, and fields
• Analyze the cost of maintaining community facilities, parks and fields and recommend appropriate user fees
• Utilize the Recreation Strategic Plan to plan and implement recreation programs that will engage the community and are within the financial and personnel resources of the City
• Ensure that all personnel requiring fingerprinting and drug testing have been properly screened
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
181
• Recruit, train, supervise and evaluate full and part-time recreation employees • Develop opportunities to offset the cost of recreation programs • Implement and coordinate staff volunteer opportunities within the community • Investigate and recommend community recreation events • Develop a cost recovery calculation methodology and goal • Parks and Recreation Commission
o Staff to serve as liaison between the Parks and Recreation Commission and the City Council and provide support services to the Commission o Update facility and park rental policies and make recommendations to Board o Consider increasing the number of Commissioners to more broadly reflect the interests of the community
o Consider updates to the annual event calendar: recognition of Black history month, Juneteenth, movies in the park, holiday tree lighting parade, changing holiday tree lighting event from two days to one day
• Post maps showing locations of parks facilities to facilitate park rentals Emergency Preparedness
Mission Statement:

To prepare staff to respond to emergencies in a safe and timely manner in compliance with federal and state guidelines in order to protect and preserve lives and property and maintain governmental services.

Current Activities:
• Update the Emergency Operations Plan and annexes on an annual basis Strategic Objectives:
• Provide training for staff on emergency management procedures • Update the Emergency Operations Plan and annexes on an annual basis • Review and update the Emergency Response Plan
• Equip the Emergency Operations Center
• Assign and train two key trainers
• Develop a training program for all employees including routine workshops and seminars for certification and refresher courses
• Coordinate with San Joaquin County Sheriff’s Office, French Camp McKinley Fire Protection District, and Rank Security Services to conduct training exercises and workshops

PUBLIC WORKS
Mission Statement:

To provide the highest quality public works services to the community and other departments, using a balanced approach of maintaining a cost-effective operation and providing these services in a responsible and efficient manner.

Engineering
Mission Statement:

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
182
To design, construct and maintain utilities and infrastructure in compliance with the Master Plan and local, state and federal regulations.

Current Activities:
• Develop, design, construct, manage, and inspect capital improvement projects • Ensure infrastructure is built in accordance with approved plans and specifications • Maintain the Pavement Management Program with in-house staff • Work with state and federal regulatory agencies to implement the regulations in water, wastewater, and stormwater management systems
• Work with and assist the Community Development Department as needed • Implement programs: tree maintenance, sidewalk repair and replacement, parks equipment repair and replacement
• Develop and implement signal timing plans
• Finalize the communication system master plan
• Finalize procurement contract for security camera system implementation • Provide staff support to the Board’s Transportation Committee Strategic Objectives:
• Update and complete standard specifications and details, and publish this information online
• Establish a revision process for standard specifications and details • When possible, obtain grants for capital projects
• Work with Community Development Department to improve archiving of hard and electronic copies of plan sets
• Assist in design and development of Geographic Information System • Implement the 5 Year Capital Improvements Program
• Complete communication master plan
• Develop phased implementation of the fiber optics communication system • Implement grant for Mountain House signal coordination project • Implement a signal control system and activate the Traffic Management Center • Develop signal coordination system
Utilities Management
Mission Statement:

To provide management for the municipal utilities and to ensure essential utility services are delivered to the community in a safe, reliable and environmentally sound manner.

Current Activities:
• Oversee the operation and maintenance of the various municipal utilities • Oversee and manage the contracts and contractors providing services to the City • Oversee and ensure permit and regulatory compliance for various municipal utilities
• Plan, coordinate and manage utilities infrastructure and asset replacement • Manage and coordinate the current wastewater treatment plant expansions consistent with the approved plans
• Maintain District stormwater conveyance system through contracted services • Evaluate alternative options for emergency sources of water Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
183
• Obtain water and water storage for emergency water supplies • Pursue the water storage availability at Las Vaqueros Reservoir Expansion Project through Byron Bethany Irrigation District
• Work with MHD to preserve riparian rights north of Byron Highway • Analyze the feasibility of an intertie with the City of Tracy • Evaluate the feasibility of using Wicklund cut and Wicklund pump station as an optional alternative water intake
Strategic Objectives:
• Coordinate and process future permit extensions and renewals for municipal utilities
• Manage and coordinate all future plant expansions consistent with the master plans
• Select, implement, and coordinate a utilities asset management system • Prepare requests for proposals and manage and coordinate a selection process for future contract providers
• Identify operation and maintenance needs such as corrosion protection, system clean ups, hydrant and valve maintenance, manhole lining evaluation, and creek maintenance needs and oversee and implement such programs • Establish roles and responsibilities for implementing, reporting and educational services for SB 1383 requirements
• Ensure SB1383 implementation and reporting for solid waste • Establish and obtain riparian water rights for areas north of Byron • Update utility master plans
• Implement the municipal separate storm sewer system permit compliance requirements
• Develop a Request for Proposals for the operation of the utility plants and consider utility billing as a separate service
Operations and Maintenance
Mission Statement:

To provide efficient, attentive and courteous service to residents of Mountain House while providing a safe, efficient, sustainable and environmentally sound infrastructure system that enhances the quality of life while preserving the health, safety and aesthetics of our community.

Current Activities:
• Manage customer service and residential work requests • Generate and maintain scope and specifications for all contracted services • Manage contract service agreements and requests for proposals • Manage contracted services: landscaping; urban forest maintenance; street, park and pedestrian lighting; traffic signal and safety sign maintenance; janitorial services
• Perform roadway repairs and maintain signage and road markings • Maintain buildings and structures
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
184
• Maintain HVAC, lighting, and security systems; sidewalks, pathways, pedestrian bridges; sound walls, miscellaneous fencing; and parks, playgrounds and recreational facilities
• Maintain community aesthetics through painting, cleaning, and graffiti abatement Strategic Objectives:
• Host community workshops to gather community input when improving park facilities
• Acquire branded uniforms for maintenance field staff
• Establish and maintain an asset management program to track facility depreciation and the repairs required to restore or maintain value
• Improve the capital improvement process by coordinating an asset management system with departmental needs and maintain a 10 – 25 year projected growth plan
• Establish a 25-year plan to track growth and to project equipment facility and labor needs
• Park maintenance and improvements:
o Include needed improvements in the Capital Improvement Projects budget o Ensure equity for neighborhood and community parks in terms of amenities o Evaluate use of artificial turf on sports fields
• Street tree maintenance and sidewalk repair
o Develop a policy for assigning responsibility for proper tree maintenance after trees have been replaced
o Educate residents about proper tree maintenance and how to mitigate root damage

COMMUNITY DEVELOPMENT
Plan Checking and Design Services
Mission Statement: To provide plan checking and design services to complete the approval of the privately designed subdivisions, community facilities, utility infrastructure, and other supporting infrastructure in compliance with the Master Plan and local, state, and federal regulations
Current Activities:
• Perform plan reviews and approvals
• Prepare subdivision improvement agreements in conjunction with the map process • Perform tentative maps reviews and draft conditions of approval • Prepare subdivision improvement agreements and bonding requirements • Process final maps for approval
• Coordinate with developers on infrastructure design requirements and providing design review services
• Develop procedures to make plan checking, map review and drafting improvement agreements more efficient
• Ensure infrastructure is built in compliance with approved plans and specifications Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
185
Strategic Objectives:
• Finalize submittal checklist requirements and publish this information online • Update specifications and details when necessary
• Improve document coordination and archiving of hard and electronic copies • Collect, organize, scan, and store all maps and plans • Evaluate various solutions and protocols for a geographic information system (GIS) • Expand the GIS-based archival system for improvement plans, final-map approvals, bonds for subdivisions, and improvement bonds
• Implement the Water and Sewer Master Plan recommendations • Determine the best method to proceed with Alameda County traffic easing on Grant Line Road and finalize a cooperative agreement with the County for the construction of two roundabouts
Planning and Entitlement Services
Mission Statement: To process development approvals and entitlements for development projects in Mountain House in conjunction with San Joaquin County.

Current Activities:
• Maintain positive and constructive relationships with developers • Establish a more productive and proactive working relationship with the County’s Community Development Department with respect to case processing in anticipation of the incorporation transition
• Improve upon the wording of the Conditions of Approval in terms of clarity, enforceability, and relevance
• Work on the incorporation process with the Local Agency Formation Commission (LAFCo)
• Complete the Incorporation process through LAFCo
• Develop and process necessary development agreements
• Process tentative maps, final maps, agreements, and bonding requirements • Process and enforce conditions of approval
• Process annexation applications
• Collaborate on the development agreement process
• Coordinate regional projects, including Valley Link, Route 205 Managed Lanes, and the Delta Conveyance Project
• Complete the South Park design
Strategic Objectives:
• Continue to collaborate with developers and other partners to provide carefully planned, well-constructed, and regularly maintained infrastructure that safely serves residents, businesses, and visitors
• Coordinate with San Joaquin County on land use approvals, planning issues, and use permits with a particular focus on the Mountain House transition from a community service district form of governance to a full-service city Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
186
• Plan for a post incorporation scenario in terms of case intake, case processing, code enforcement, procedures, application materials inspections, and plan checking
• Coordinate with LAFCo on the incorporation process and the preparation of the necessary documents for the proposed plan
• Update the Master Plan and Specific Plans for the proposed land use and community facility changes
• Work with the County to process and complete environmental review • Complete county approval and environmental review of the and Recreation Plan • Continue cooperating with regional agencies on projects, including Valley Link, Route 205 Managed Lanes, and the Delta Conveyance project • Update the Public Land Equity Program and establish procedures for tracking dedicated lands and vouchers and identifying surpluses and deficit • Continue working to develop procedural guidelines for planning processes, application requirements, annexation fee calculations, and other entitlement processes
• Post and distribute information on fee schedules and ongoing costs for the development community and other investors
• Prepare a “cost of doing business” survey in order to compare Mountain House with other communities in the region
• Begin the process of planning for a post-incorporation scenario in anticipation of providing an array of services currently not offered or required due to our current unincorporated status
• Begin initial phases of a transit-orientated development analysis associated with the Valley Link light rail project
• Park maintenance, planning and expansions:
o Consider differences between original cost estimates and current costs to manage expectations and right-size improvements
Development Construction Services
Mission Statement: To construct and maintain infrastructure and supporting utilities in compliance with the Master Plan and local, state, and federal regulations.

Current Activities:
• Oversee private development construction activities
• Provide construction management, engineering, inspection, and quality assurance and control services for privately funded development projects • Oversee consultant inspection services
• Review information and respond to requests for information and to submittals and design change notices from developers’ engineers, contractors and designers • Coordinate with various parties for construction activities • Finalize offers of dedication for private development projects • Review and finalize project acceptances
• Coordinate with the Operations and Maintenance Department on landscaping acceptance
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
187
• Support the Operations and Maintenance department with inspection service, various repair work, checking water values and blowing fire hydrants for stagnant water
• Administer as-built drawings, manuals and other construction-related reports and documentation
• Assist with development of developer agreements, conditions of approval, special inspections, quality assurance and control services, and bonding requirements • Coordinate with Operations and Maintenance to transfer construction projects to the City’s maintenance operations
• Coordinate inspection and construction management services with Public Works Strategic Objectives:
• Complete and accept all development-related infrastructure projects • Complete offers of dedication and acceptance for all projects • Manage record-keeping and construction administration process Code Compliance and Permitting Services
Mission Statement:

To educate residents and enforce master plan restrictions, standards, ordinances, and other community approvals. Process building permits and certificate of compliance for all building permits and transportation permits.

Current Activities:
• Educate residents on code compliance and Covenants, Conditions, and Restrictions requirements
• When necessary, elevate enforcement through warning and citations regarding violations of master restrictions and infractions related to noncompliance with codes
• Issue permits and certificate of compliance of all new building and permits in the City in cooperation with the County’s’ building department • Review design plans for homeowner requests for modifications • Issue permits for home modifications, including landscaping, fencing, paint, exterior structures, and additions
• Inspect and enforce standards
• Inspect parking and right-of-way issues on vacant lots within the City • Inspect municipal codes (public property) or master restrictions (private property) within the City
• Enforce parking regulation and code requirements
• Coordinate with the finance department to ensure collection of building permit or other fees
Strategic Objectives:
• Work on educational and public information materials regarding code compliance and master restriction requirements
• Continue implementation of non-standard vehicle online parking permit system Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
188
• Expand use of online permitting software for building permit requirements and other processes
• Conduct semi-annual or annual property inspection for master restriction compliance post-purchase to disclose any additions or modifications for proper permitting with District and County
• Work with master builders and developers to conduct educational forums regarding Master Restrictions and issue copies of Master Restrictions to property owners
• Develop educational materials regarding the street trees and sidewalk maintenance
• Assist in development of permitting processes for new commercial development projects
Community Preservation
Mission Statement:

To foster long-term partnerships between residents, retail, commercial entities and local government and to assist law enforcement to reduce the risk of being a crime victim.

Current Activities:
• Establish Neighborhood Watch Groups and assist with National Night Out event • Notify San Joaquin County Sheriff and Rank Security of security issues and need for additional enforcement efforts
• Provide crime prevention education for homeowners and businesses • Provide staff support to the Board’s Public Safety Committee Strategic Objectives:
• Establish Neighborhood Watch groups and National Night Out events in all neighborhoods
• Expand the Business Watch program
• Update crime prevention handouts and social media posts to reflect relevant topics specific to community needs
• Develop crime prevention plans unique to each village or commercial center • Establish a Crime Prevention through Environmental Design program • Host community safety workshops
• Increase public safety messaging and presence at National Night Out, Neighborhood Watch meetings, and recreation events

PUBLIC SAFETY
Law Enforcement
Mission Statement:

The San Joaquin County Sheriff’s Department is dedicated to delivering quality service through the partnerships with the people we serve.

Current Activities:

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
189
• Assist the community in establishing Neighborhood Watch programs • Provide deputies with training opportunities to enhance public safety • Provide Principled Policing training to include the four tenets of the policing approach: voice, neutrality, respect and trustworthiness • Explore new technologies available for the public safety sector and discuss with staff as appropriate
• Engage in community oriented policing approach in our daily duties and interactions with any member of the public
• Coordinate use of security camera and license plate reader technology with Rank Security to help prevent and reduce overall crime in Mountain House • Continue the public – private partnership with the California Highway Patrol and Rank Security to provide and maintain the high level of public safety in Mountain House
• Provide support to the Board’s Public Safety Committee • Monitor and report on the effectiveness of the motorcycle unit • Plan and prepare for public safety services post-incorporation to ensure an efficient, smooth, and seamless transition
Strategic Objectives:
• Seek out grant opportunities and alternate funding sources to maximize the City’s public safety budget
• Keep abreast of new technologies available in the public safety sector and keep the City apprised of such technology for potential use
• Provide input on community design standards that can reduce crime • Security cameras
o Develop a master plan for installation of cameras
o Provide recommendations for real-time monitoring, what we do with footage, and how to obtain footage from private residents
• Update the City’s security camera policy
• Identify intersections and sections of roads identified as dangerous o Schedule patrols of motor officer and California Highway Patrol as appropriate
o Recommend traffic calming measures, such as speed bumps and traffic circles
Fire and EMS
Mission Statement:

The proud members of the French Camp Fire Protection District are dedicated to serving the community we swore to protect through emergency response, preparation, and prevention.

Current Activities:
• Finalize planning for second fire station, including design, architectural concepts, and cost analysis
• Explore including a training facility in conjunction with second fire station • Complete fire study and continue to evaluate staffing needs, and, as needed and feasible, add personnel, apparatus, and equipment
Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
190
• Upgrade current communication system for public safety and firefighter safety so portable radios can be heard throughout the City
• Update vehicle and equipment replacement schedule and ensure funding is in place to ensure timely purchases
• Assist District staff in determining the need for weed abatement to minimize fire hazards
• Offer Community Emergency Response Team (CERT) classes to the community • Provide support to the Board’s Public Safety Committee Strategic Objectives:
• Train command staff, fire fighters and reserves assigned to Mountain House to operate in the Mountain House Emergency Operations Center • Plan for the opening and staffing of Station 1
• Upgrade current communication system for public safety and firefighter safety so portable radios can be heard throughout the City
• Update vehicle and equipment replacement schedule and ensure funding is in place to ensure timely acquisition of needed apparatus and equipment • Continue working with AMR Ambulance to decrease response times to medical emergencies
• Explore and investigate opportunity to provide a cost-effective Advanced Life Support program
• Work with CERT members on a semi-annual basis to maintain operations skills and abilities
• Schedule and participate in training of District staff to ensure emergency operations planning related exercises take place on a quarterly or semi-annual basis
• Work toward Advanced Life Support certification
• Assist in effort to change emergency response classification from rural to urban to improve response times

PUBLIC SAFETY
General Administration
• Collaborated with and engaged staff in achievement of shared values:
transparency, accountability and service.
• Submitted application of incorporation to the Local Agency Formation Commission (LAFCo) and worked with San Joaquin County and LAFCo staff, and consultants to finalize the fiscal analysis studies.
• Recommended addition of Deputy City Manager to oversee and manage Community Development and Public Works Departments and the Utilities and Operation and Maintenance Divisions to focus on a coordinated and strategically planned approach to addressing the evolving needs of the City. • Developed baseline goals and objectives for department heads in alignment with Strategic Plan for fiscal years 2023/2024 through 2024/2025.

Item 8.2
The City of Mountain House
The Fiscal Year 2025/26 Budget
191
• Issued utility revenue bonds in the amount of approximately $40 million to reduce balances of notes payable and secure fixed financing costs during a time of relatively low interest rates.
• Cultivated constructive, cooperative and collaborative relationships with developers to envision and right-size improvements.
• Town Center Shopping Center: Worked with Shea Commercial Development and San Joaquin County Planning Department to bring this long-awaited project to fruition.
• Worked with financial consultant to develop plan to issue utility revenue bonds in the amount of $40 million to retire notes payable and achieve fixed financing costs.

District Clerk
• Worked with San Joaquin County Registrar of Voters to secure a ballot box dropoff location at the town hall lobby. • Tested and operated new Boardroom equipment and adjusted to accommodate remote meetings via the Zoom platform.

Human Resources
• Updated Personnel Policy as needed.
• Negotiated contracts with the Service Employees International Union (SEIU) in effect through June 30, 2026.
• Successfully opened and/or completed recruitments for the following positions:

Assistant Planner, Management Analyst, Senior Accountant, Recreation Manager, Recreation Assistants, Senior Maintenance Worker, Maintenance Worker I and II, and Utilities Manager.

Risk Management
• Developed a return-to-work policy with the goal of protecting staff and members of the public. The strategy includes the application of State and County guidelines. • Implemented COVID-19 protocols for employees working on-site, including procedures for reporting exposure, quarantine, and return to work.

Finance
• Awarded a Distinguished Budget Presentation Award from the Government Finance Officers’ Association for the fiscal year 2021-2022 budget. • Awarded an Operating Budget Excellence Award from the California Society of Municipal Finance Officers for the fiscal year 2021-2022 budget. • Awarded a Certificate of Achievement for Excellence in Financial Reporting for the City’s first Comprehensive Annual Financial Report (CAFR) for fiscal year 2019- 2020. The CAFR consists of three sections – Introductory, Financial, and Statistical – and presents a wider variety of information intended to help the reader more fully understand the basic financial statements.
• Completed AB1600 annual reports, information required by the State Controller, and reports required by bond covenants timely and accurately.

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• Maintained OpenGov program to enhance financial transparency and accountability. A link to this program is available on the City’s website. • Worked with financial consultant to develop plan to issue utility revenue bonds in the amount of $40 million to retire notes payable and achieve fixed financing costs. • Assisted with the preparation and review of financial analyses for incorporation.

Customer Service
• Maintained compliance with SB998 requirements related to utility services. • Streamlined lien procedures so that property tax liens are approved by the Board annually, rather than throughout the year. In the interim, property liens are imposed throughout the year.
• In compliance with SB998, counseled utility customers on availability of amortization plans.

Information Technology
• Provided resources for staff to work and meet remotely. • Used Zoom platform to conduct Board meetings and provide access to the public for participation.
• Implemented the use of DocuSign to facilitate approval of documents and forms.

Web Services, Social Media, and Other Communications
• Evaluated various web platform providers with respect to qualifications, features, ease of use, and successful installations at other public agencies. Staff selected Granicus as the platform that will best meet our needs to design a site that is informative, up-to-date, easy to navigate and maintain, internally consistent, and pleasing to view. Improvement and maintenance of the site is on-going. • Implemented OpenTownHall to provide information to the public about District operations and development activity. The program is also used to engage the community by offering surveys.
• Posted surveys on a variety of topics to better inform the Board of the community’s priorities and preferences.
• Posted information on road closures, community meetings and recreation events.

Established an eblast subscription to sign up for topics of interest. • Developed a variety of on-line fillable PDFs forms with options to pay to facilitate applications and processing.

Recreation
• Developed various polices for use of District facilities for Board approval. • Assisted the Youth Action Committee in conducting their meetings and offering tutoring services.
• Held meetings with representatives of the two local cricket clubs to discuss their plans for joint use of the new temporary cricket field on Providence Street, as well as an update on plans and procedures for cricket play occurring at other community park sites. A separate meeting was held with representatives of Mountain House Little League to discuss their proposed improvements plans and budget request for baseball. Further coordination meetings will continue toward development of a plan for coordinated use and sharing of district park facilities.

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• Held a community meeting on November 16 to discuss the conceptual park design for the Central Community Park expansion.
• Presented various community events: 5 Music in the Park events, July 4 parade and celebration, bike rode, kite festival, National Night Out, and holiday tree lighting.
• Coordinated distribution of COVID-19 test kits at drive through event and at the customer counter.

Emergency Preparedness
• Completed Emergency Operations Plan and in the process of finalizing the Emergency Response Plan.

Public Works
• Worked with Mountain House Developers to monitor construction activity for the wastewater treatment plant expansion.
• Updated Standard Plans and Specifications as needed.
• Completed roadway repairs and resurfacing for the Questa Neighborhood. • Completed the railroad crossing and street traffic calming, signing and striping project.
• Awarded a Highway Safety Improvement Program Grant from the California Department of Transportation (Caltrans) in the amount of $249,930 to convert one travel lane in each direction on Great Valley Parkway from Byron Road to Grant Line Road; Arturo Boulevard from Great Valley Parkway to Central Parkway; and Main Street from Great Valley Parkway to Central Parkway to accommodate the implementation of Class IV bikeway facility. The application was approved by Caltrans on March 30, 2023.
• Awarded a Highway Safety Improvement Program Grant from the California Department of Transportation (Caltrans) in the amount of $151,000 to enhance the existing Rectangular Rapid Flash Beacons. Grant proceeds will be used to install additional beacons at the median and to modify signing and striping on Central Parkway at the intersections of Legacy Drive and Heritage Drive. The application was approved by Caltrans on March 30, 2023.
• Executed an agreement with South San Joaquin Irrigation District to purchase water in case of a curtailment. Some of this water has been transferred and stored at Los Vaqueros Reservoir.

Operations & Maintenance
• Two staff members passed State exam for California Playground Safety Inspector certification.
• Installed new trash receptacles along Great Valley Parkway • Upgraded battery back-up on all signals.
• Launched and substantially completed the sidewalk repair program. • Launched and substantially completed the neighborhood tree pruning program. • Expanded the City-wide security project to include Cordes Park. • Completed the design and installation of 97 community mailboxes in Wicklund Neighborhood.

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• Completed pest control injections for right-of-way trees in the Questa Neighborhood.
• Completed major fleet repairs.
• Completed monthly and annual State water reports.
• Replaced tennis nets and repaired crank mechanisms.
• Developed and implemented new playground maintenance program. • Launched Central Park playground renovation project.
• Completed 580 GovOutreach work requests.
• Extended St. Francis maintenance contract.
• Extended West Coast Arborist service agreement.
• Completed poplar tree removal project.

Community Development
• Submitted a Municipal Service Review (MSR) update to LAFCo. The MSR was unanimously approved by the LAFCo Board at their September meeting. • Continued work on Costa Elementary School. Staff and consultants reviewed and provided comments on the frontage civil improvement plans. The project is expected to by completed in time for the 2023/2024 school year. • Continued work on Grant Line Road between Central Parkway and Great Valley Parkway, including construction of the sound wall between Grant Line Road and the frontage road.
• Obtained approval from the San Joaquin Planning Commission for the Fire Station to be built north of Bryon Road.

Code Compliance
• Continued effort to create educational and public information materials regarding code compliance and master restriction requirements.
• Created flyers concerning the proper placement of refuse cans. Flyers include the new food waste requirements, how to dispose of larger unwanted items, and fines. • Launched the non-standard vehicle parking permit online system. • Worked with Administrative Services to identify and develop on line fillable forms to facilitate various permits.

Community Preservation
• Established several the Neighborhood Watch units and working to expand the program with active recruitment.
• Prepared a Mountain House Business Watch Guide to provide tools and techniques for crime prevention.
• Coordinated National Night Out event at the Community Central Park with California Highway Patrol (CHP), San Joaquin County Sheriff’s Office (SJCSO), French Camp McKinley Fire Department and other first responder agencies in attendance.
• Introduced McGruff the Crime Dog at the 4th of July Parade; the mascot has attended numerous Mountain House events and Neighborhood Watch meetings. • Prepared an informational flyer advising residents what public safety agency to call for certain responses.

Public Safety
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• Worked with the Public Safety Committee to review and evaluate the security camera program in the City.
• Added a motorcycle deputy to SJCSO personnel assigned to the City. • Directed enforcement to address traffic safety violations surrounding schools to CHP and SJCSO.
• SJCSO deputies successfully completed Crime Prevention Through Environmental Design training to help educate residents in crime prevention. • Expanded coverage by Rank Security to include daytime patrols and assistance with community events.

Fire & EMS Services
• Renewed contract with French Camp McKinley Fire District; initiated study to review fire operational efficiency and determine level of service options. • Placed new Truck 16-1 into service.
• Ordered two new Fire Engines with anticipated delivery in January 2024. • Enhanced and increased Fire Department Community outreach and interaction. • Took possession of a California State OES Type IV engine to respond to local and statewide emergencies.
• Increased training hours by 84% as compared to 2021.
• Provided faster than the national average responses in both turn-out time and onscene time for emergency calls. • Participated in 138 community events in 2022.
• Responded to 5 requests for mutual aid to statewide fire deployments in 2022. • Applied for and received an Assistance to Firefighters Grant of $12,000 for personnel protective gear.
• Applied for and received an American Rescue Plan Act grant in the amount of $285,000 to assist in a water rescue training, and equipment purchases - handheld radios, community CPR equipment and mobile radio repeaters. • Maintained a 91% staffing rating through 2022.
• Coordinated efforts with the City to clear overgrown vegetation, weeds, and tall grasses in the large undeveloped lots in and around Mountain House.

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Financial Policies and Procedures
SECTION 100: INTRODUCTION
The purpose of this manual is to provide a guide on the conduct of the City's financial affairs.

As described in the Preface, this manual is divided into six sections:
• Introduction (100)
• Purchasing and Cash Disbursements (200)
• Travel Policies and Payroll System and Processing Procedures (300) • Capital Assets and Inventory Management (400)
• Budget and Fund Accounting Policies and Procedures (500) • Bank, Treasury, and Investment Policies (600)
• Receivables, Billing, Collection, and Cash Receipting (700) • Notes and Memoranda (800)
Each of these sections begins with an overview that further describes its purpose and organization.

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SECTION 115 INTERNAL CONTROL CONCEPTS
Faithful stewardship of the public assets and resources that have been entrusted to us is the responsibility of all District employees. Assuring appropriate internal control over the use of these assets is one of the key tools available to us in meeting this responsibility. The following is an outline of internal control concepts.

PURPOSE OF INTERNAL CONTROLS
The objective of internal control systems is to provide reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and to ensure that transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived, and that estimates and judgments are required to be made by management in evaluating these costs and benefits.

INTERNAL CONTROLS ARE FOR THE EMPLOYEE
By establishing procedures that reduce the opportunity for employees to make unauthorized transactions, the City protects employees from unwarranted suspicions when unusual events or trends are identified.

STANDARD INTERNAL CONTROLS
The three most common types of internal controls are using and documenting standard operating procedures; formalizing approval authorizations; and separating duties.

None of these approaches in themselves can guarantee the appropriate use of District assets at all times, but they represent a reasonable effort to reduce the opportunity for misuse of District assets.

SEPARATION OF DUTIES
Of the three approaches noted above, "separation of duties" is the most common internal control methodology by ensuring that no one individual has total control over an accounting transaction. For example, the responsibility for the purchasing/disbursement function would ideally be segregated between separate departments or individuals as follows:
• Purchasing (authorization to acquire)
• Receiving (approval to pay)
• Accounting (disbursement)
However, no system of internal control based on separation of duties will be successful if there is collusion between parties. In addition, any employee who is so inclined may Item 8.2
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identify methods of misusing assets. However, this should not deter an organization from establishing reasonable controls to reduce the opportunity and temptation to misuse District assets.

SECTION 120: RISK ASSESSMENT
Introduction
A strong system of internal control must respond to changes in the City’s operations that inevitably occur as time progresses. The best designed set of procedures for today may be deficient next year when circumstances either within or outside the City create new risks that require modifying the system of internal control to effectively address them. Other procedures that were needed in the past may no longer be needed.

Through an effective risk assessment process, the City intends to respond to changing circumstances and ensure the City’s system of internal control remains robust and up to date.

Triggers for Risk Assessment
Events that indicate the City’s risks may have changed and that risk assessment is needed may include the following:
• New revenue sources.
• Offering of new services or discontinuation of services previously performed. • Significant changes in revenue or expenses in a particular area, especially changes that increase the complexity of accounting for transactions. • Turnover in key internal control positions.
• Understaffing, which could lead to incompatible control duties being assigned to one person or important control responsibilities being neglected due to heavy workload.
• New legislation exposing the City to heightened legal liability or risk of loss. • Technological advances that impact the City’s risk.
• Publication of new accounting principles impacting the City. • Findings or comments from the external auditor.
• Decline in the broader economy, which may subject the City to both internal and external pressures
Procedure
At least annually, and more frequently as conditions demand, the Finance Department will consider whether any of the above triggers have caused changes in the City’s risks and determine whether changes in procedures may be necessary to ensure that the system of internal control continues to effectively serve its purpose of providing reasonable assurance that the financial statements are fairly stated in accordance with generally accepted accounting principles and the City’s assets are appropriately safeguarded.

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The Finance Department will also conduct a comprehensive risk assessment on a periodic basis where the risks related to each significant class of transactions and balance sheet account will be identified, and operating procedures will be evaluated to determine the extent to which those risks are mitigated.

SECTION 210: PURCHASING

OVERVIEW
Along with the following documents, the policies and procedures set forth in this chapter form the City's purchasing system:
• MHCSD Ordinance Chapter MH-2 (No. 2014-04)
• Sections 20680 - 20683 of the California Public Contract Code The purpose of this chapter is to guide staff members in purchasing goods and services on behalf of the City by establishing responsibilities and authorization levels and setting forth the policies and procedures that govern purchasing activities.

These guidelines are not intended to address every issue, exception or contingency that may arise in the course of purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of District resources.

PURCHASING SYSTEM OBJECTIVES
This system has been developed in order to achieve the following objectives:
• Secure goods and services at the lowest cost possible commensurate with quality requirements.
• Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City.
• Ensure competition and impartiality in all purchasing transactions to the maximum extent possible.
• Standardize procedures where appropriate to ensure that organization-wide policies and goals are achieved.
• Maintain department responsibility, initiative and flexibility in evaluating, selecting and purchasing goods and services.
• Implement simple yet effective internal control procedure that appropriately support planning, maximize productive use of public funds and protect District assets from unauthorized use.

PURCHASING AUTHORITY
The City’s Code of Ordinances delegates purchasing authority to the City Manager as well as any other representatives designated by her or him. The City Manager designates the Administrative Services Director as Purchasing Agent with authority over all District purchasing activities pursuant to the Mountain House Code of Ordinances.

Purchasing responsibilities include:

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• Developing and prescribing such administrative policies, forms and files as may be reasonably necessary for the internal management and operation of District purchasing policies and procedures.
• Purchasing or contracting for supplies, equipment, services and construction projects as required by the operating departments in accordance with District purchasing policies and procedures.
• Negotiating and recommending execution of contracts.
• Procuring needed quality in goods and services at minimum expense. • Ensuring as full and open competition as possible on all purchases. • Developing and maintaining department awareness of purchasing and pricing principles, marketing conditions and new products.
• Inspecting supplies and equipment delivered, as well as contractual services performed, to determine their conformance with the specifications set forth in orders and contracts; and, in this connection, having the authority to require chemical, physical or other tests of samples submitted with quotations or bids, or of delivery samplings, which may be necessary to determine quality and conformance with specifications.
• Establishing procedures for, and assigning duties to, staff engaged in receiving, storing and issuing purchased supplies, ensuring that supply levels are consistent with usage requirements.
• Facilitating the transfer of surplus or unused supplies and equipment among departments as needed.
• Selling or exchanging surplus supplies and equipment (subject to Chapter MH-2 of the Code of Ordinances and the separate Surplus Property Policy approved by the Board on February 13, 2019), provided that they cannot reasonably be used by any department.

PURCHASING ORGANIZATION
Department Heads within the City will be responsible for identifying needs and preparing proposed purchases for the appropriate level of review by the Administrative Services Director or the Finance Department staff member(s) to whom the Administrative Services Director may delegate purchasing authority. The Administrative Services Director or designee will review and approve or reject proposed purchases or, if the purchase meets certain thresholds as outlined below, forward the proposed purchase to the City Council for final approval.

PURCHASING SYSTEM OVERVIEW
Regardless of the type of item or service being acquired, virtually every purchase transaction goes through seven distinct stages in varying degrees:
• Assessing and determining resource needs.

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• Developing specifications.
• Soliciting and evaluating quotations, bids or proposals. • Selecting the best proposal.
• Awarding the contract or purchase order and authorizing work to proceed. • Receiving and inspecting goods or services to ensure they conform with specifications.
• Paying the vendor when contract terms have been met.

RECYCLED-CONTENT PAPER PRODUCTS AND RECYCLED-CONTENT PRINTING

AND WRITING PAPER
For the purposes of this Manual, the following definitions shall apply:
“Paper Products” shall include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR 18982(a)(51).
“Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR 18982(a)(54). "Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 CFR 260.12 (2013).
“Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper” means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the Public Contract Code, and as amended.

If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of the City shall purchase Recycled-Content Paper Products and RecycledContent Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever the total cost is the same or a lesser total cost than non-recycled items or whenever the total cost is no more than five percent (5%) of the total cost for the non-recycled items, consistent with the requirements of the Public Contract Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended.

All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

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All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to the City shall:

1. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item, available at no more than five percent (5%) of the total cost for non-recycled Paper Products.

2. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209.

3. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

4. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

5. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

6. Provide records to the Administrative Services Director or designee of all Paper Products and Printing and Writing Paper purchased from the vendor within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Sections 4 and 5 above for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non- Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or RecycledContent Printing and Writing Paper were not provided.

The Administrative Services Director or designee will be the responsible for obtaining records pertaining to procurement of Recycled-Content Paper Products and RecycledContent Printing and Writing Paper and shall perform the following tasks to track Item 8.2
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procurement of Recycled- Content Paper Products, and Recycled-Content Printing and Writing Paper:

1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of City’s documentation of its compliance with 14 CCR 18993.3.

2. Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recycled-Content Paper Products, and Recycled- Content Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR 18993.4 for Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper procurement. This report shall be made available to the City’s designee responsible for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements) pursuant to 14 CCR Division 7, Chapter 12, Article 13. The procurement report shall also be shared with the City’s Council annually as evidence of the implementation of this Manual.

REQUIREMENTS BY TYPE AND AMOUNT OF PURCHASE
The type of purchase as well as its estimated cost determine the formality with which each stage is completed and documented. Payments made by the City to outside parties (excluding employee payroll) may generally be classified into the following categories:

Employee reimbursements and travel costs. Employee reimbursements for travel costs incurred on District business and travel costs paid directly by the City are subject to the separate terms of the City’s travel policy and are not subject to this purchasing policy.

Employee reimbursements for non-travel costs are subject to all other provisions of this policy where applicable, but ordinarily would not be for items greater than $5,000.

Credit card purchases. Credit card purchases are individually subject to the terms of this purchasing policy as well as the credit card policy. The total amount paid to the credit card company on the credit card bill is not considered a single purchase and purchases made on the City’s credit cards are considered purchases directly from the vendor initiating the credit card charge, for purposes of applying the dollar limits of this policy. Accordingly, credit card purchases in excess of $5,000 that are not in an excepted category under this policy require an approved requisition and purchase order prior to purchase, unless the requirement has been waived by the Administrative Services Director due to a purchasing emergency, as defined later.

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Utility services. Utility services include electricity, piped-in natural gas, cellular and landline telephone, Internet, water, sewer, and refuse disposal services for the City’s locations. These services are either impossible or impractical put out for bid because only one supplier provides the services for a given location, the services are provided by very large companies on an inflexible basis, or the process of soliciting bids would be of minor benefit in comparison to the cost and personnel time involved. No contracts or competitive bids are required for these services and the Administrative Services Director or designee may approve any amount needed to facilitate the operations of the City. Care should be exercised that the City is billed for service only at District locations and for costs incurred for District business.

Services delivered by San Joaquin County. Other than any approval which may be specifically required by law or ordinance, services delivered by San Joaquin County to the City do not require written contracts or competitive bidding.

Government and regulatory fees. Payments for government and regulatory fees imposed on the City by law and paid to a government agency are not “purchases” and are not subject to this policy.

Rents and leases. All rents and leases must be signed by the City Manager, if $100,000 or less, or approved by the City Council if in excess of $100,000. For all new rent or lease transactions with a total cost of more than $5,000 in any given fiscal year, the Finance Department will complete an evaluation of the proposed transaction to determine:
• Whether a purchase of the item to be rented or leased would be feasible and more financially beneficial to the City.
• Whether the item could be rented or leased from a different source more economically than the source proposed.

This analysis is not required for extensions of existing rent and lease agreements.

All rent and lease contracts must be forwarded to the Finance Department who will maintain a list of these contracts in order to comply with special accounting requirements for leasing transactions.

Long-term debt. Long-term debt is initiated according to the City’s debt management policy and generally requires the approval of the City Council . The Finance Department makes all required payments on all of the City’s properly approved longterm debt.

Construction of buildings, structures, roadways, and improvements. The City Council has adopted a resolution that subjects the City to the California Uniform Public Construction Cost Accounting Act (CUPCCAA). All construction projects are governed by the City’s CUPCCAA Bidding and Contracting Procedure, which is incorporated into this policy manual, and are not otherwise subject to the requirements of this general purchasing policy. In general, the CUPPCAA bidding and contracting procedure allows Item 8.2
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for informal contracting procedures for construction projects up to $175,000, assuming the project has been included in the City’s budget.

Change orders. After a contract has been executed with a vendor under the terms of this policy, the City Manager may approve change orders to the contract without Board approval, if:
• The contract total, after the change order, will still fall below the threshold that would require Board approval.
• OR
• The change order in question together with any previously approved change orders on the same contract increase the contract price by no more than a cumulative total of 10% of the original contract amount or $15,000, whichever is greater, and;
• The change order is related to the existing contract scope, and; • The cost of the change order is reasonable and justified in writing.

Master services agreements and task orders. In some cases, the City has an ongoing or frequent need for a particular kind of service such that the total amount to be expended on the service in a fiscal year will exceed the $50,000 purchasing threshold, but the service will be broken up into multiple specific tasks throughout the year as the need arises. In this case, requestors may propose a master services agreement with one or more vendors who provide the service with an agreed-upon schedule of rates, a maximum not-to-exceed amount for a period of time, and a provision that work may not be performed until authorized by the issuance of a task order or similar document from the City. If the maximum amount on the proposed master services agreement exceeds the $100,000 Board approval threshold, the master agreement will be subject to the provisions of purchases exceeding $100,000 including competitive proposals/bids or a no-bid justification and approval by the City Council . However, once the master services agreement is approved, work can be authorized by the Department Head via an approved task order without additional Board approval even if the task order exceeds $100,000. In authorizing a task order, the Department Head shall determine that the proposed cost for the scope of work is reasonable under the circumstances in relation to the work being performed. Because the terms of the master services agreement provide that work may not proceed without an approved task order, budget availability will not be required, and a purchase order will not be issued until a task order is issued.

The Department Head shall route all authorized task orders to the Finance Department attached to a Master Agreement Tracking Form that lists all previously approved task orders under the master services agreement in question and demonstrates that the issuance of the current task order is within the total Master Services Agreement authorized by the Board. The Finance Department may decline to process vendor invoices if the authorized task order and Master Agreement Tracking Form are not received. If the tasks are truly independent of each other, each task can be treated as a separate purchase at the requestor’s option, and a master services agreement is Item 8.2
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optional. However, if each task is treated as a separate purchase, these separate purchases will each be subject to the terms of this policy based on their dollar amounts, which could necessitate multiple competitive solicitations and/or Board approvals that would not be necessary under a master services agreement.

Onsite Services. Regardless of the amount, all onsite services require either a contract and/or a purchase order (with terms & conditions attached).

All purchases requiring a written contract. Regardless of amount, if any purchase requires a written contract (other than the standard cardmember agreement signed when making a credit card purchase or a standard purchase order form issued by the City), the proposed contract must be submitted to the Administrative Services Director or designee for review. The City has standard contract language available that has been approved by the City’s legal counsel, and any non-standard contract terms in a proposed contract should be specifically identified for the Administrative Services Director’s review. The Administrative Services Director or designee will expedite the review of standard contracts for small purchase amounts, but for contracts containing deviations from the standard contract language or a large amount, the Administrative Services Director may decide to obtain legal review prior to approval. If approved by the Administrative Services Director or designee, the Administrative Services Director or designee will forward the contract to the City Manager with a recommendation. For construction and capital expenditure contracts up to $175,000 and all other contracts up to $100,000, the City Manager may sign without specific City Council approval of the contract. For contracts in excess of these amounts, the proposed contract must be submitted to the City Council for approval.

Purchases $5,000 or less. For administrative simplicity, purchases of individual items of physical property at $5,000 or less for each item and offsite services provided to the City at a cost of less than $5,000 do not require a written purchase order or contract and may be purchased by a Department Manager or designee inasmuch as there is budget available in an appropriate line item to pay for the product or service purchased.

Although competitive bidding is not required, purchasers should exercise their judgment in making purchasing decisions that are in the best interests of the City. If a written contract is deemed necessary or appropriate, the contract must be submitted to the Administrative Services Director or designee who will expedite the request for the City Manager’s signature if the contract contains standard language. See “All purchases requiring a written contract” above for special requirements dealing with written contracts.

All other purchases of goods or off site services totaling more than $5,000 and up to $50,000. Unless falling into one of the categories above, all purchases of goods or services totaling more than $5,000 and up to $50,000 are subject to the requirements of this paragraph. All such purchases must:

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1. Have a written justification of the reasonableness of price prior to the issuance of a purchase order. Such written justification shall either describe the competing quotes or proposals obtained for the service or explain an alternative basis for concluding that the price is reasonable to the City.

2. If the architectural, landscape architectural, engineering, environmental, or land surveying services are being procured, have a written justification of the demonstrated competence and professional qualifications of the vendor.

3. Be approved in advance by the Administrative Services Director or designee. Prior to approving a purchase the Administrative Services Director or designee will verify that sufficient budget exists for the purchase.

4. Be documented on a written purchase order.

Upon approval by the Administrative Services Director or designee, the Department Head may generate the purchase order and proceed with the purchase directly if the purchase does not require a contract and the value is more than $5,000 but not more than $10,000. All purchases over $10,000 and all written contracts shall be submitted to the City Manager for signature if approved by the Administrative Services Director or designee, except for task orders under Master Services Agreements previously approved, which are discussed above.

All other purchases of goods or services in excess of $50,000 and up to $100,000. For a purchase exceeding $50,000 but not above $100,000, either a minimum of three competitive bids, proposals, or statements of qualifications, or a non-bid justification must be provided. See the “Competitive Procurement” section of this policy for further details. City employees must submit either competitive bids or a non-bid justification to the Administrative Services Director or designee, who will review the proposed purchase for compliance with this policy and determine whether sufficient budget exists for it. Upon approval, the Administrative Services Director will forward the purchase recommendation to the City Manager. If approved, the City Manager will execute a written agreement with the vendor.

All other purchases in excess of $100,000. All other contracts exceeding $100,000 not in one of the excepted categories above must be submitted to the City Council for approval and require a minimum of three competitive bids, proposals, or statements of qualifications, or an acceptable non-bid justification (see “Competitive Procurement” in this policy). After concluding a competitive procurement or documenting a non-bid justification, the requesting employee submits documentation to the Administrative Services Director or designee as described in the “Required Documents for Purchases Section,” later. Upon approval, the Administrative Services Director will forward the purchase recommendation to the City Manager. If approved, the Administrative Item 8.2
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Services Director will schedule the proposed contract for consideration at a City Council meeting, typically no less than 3 weeks after receipt of all required documentation from the requesting department (see “Purchasing Timeframes,” later). If approved by the Council, the City Manager will sign the contract and Finance will approve the purchase requisition.

Unless exempted under the provisions above, all invoices in excess of $5,000 must be linked to a purchase order in order to be processed and paid by the Finance Department. Splitting of invoices in order to evade purchasing policy thresholds is prohibited (see further discussion of splitting below). No City employee should make any commitment to purchase an item greater than $5,000 on behalf of the City without an approved contract or purchase order.

Employees who make any commitments to a vendor in excess of $5,000 without having a purchase order issued by the City may be held personally liable for vendor charges.

Architectural, landscape architectural, engineering, environmental, and land surveying services. In accordance with Government Code Section 4526, vendors providing architectural, landscape architectural, engineering, environmental, and land surveying services shall be selected based on demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Any competitive procurements of these services will take these factors into account. In all other respects, purchases of these services will be subject to the terms of this purchasing policy, including the thresholds identified above.

Contract end date and total vendor contract amount. All contracts will end on June 30 unless there are significant savings involved with a multiyear contract. Purchase Orders will not rollover annually unless there are extenuating circumstances and approved by the Administrative Services Director. Any contract that is approved to rollover to the new fiscal year will be included in the total vendor contract amount in the new fiscal year.

The Finance Department will reject proposed purchases exhibiting any of the following indicators:
• Vendors with multiple contracts exceeding a total of $100,000 for services within a fiscal year.
• Vendors with multiple vouchers exceeding $5,000 for services within a fiscal year.

Splitting of purchases. Splitting up a purchase into smaller amounts with the intent of pulling the purchase price of each individual component down so that all components fall below one of the thresholds defined in this policy is contrary to the objective of this policy. In practice, however, determining whether a purchase stands alone or is a splitup component of a larger purchase is a matter of judgment. The Finance Department may reject proposed purchases exhibiting the following indicators of splitting:

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• Multiple contracts with the same vendor for essentially the same scope of work.
• Separate contracts with the same vendor for different phases of work, all of which must be performed in order for the work product to have any substantial value to the City (except in cases where the City is completing work in phases for budgetary reasons and does not have the budget available at one time to contract for all phases of the work).

Separate contracts or purchases with the same vendor for various physical goods which have limited value to the City unless goods from multiple purchases are physically assembled or combined into one or more physical items, the value of which would exceed a purchasing policy threshold.

CONTRACT / PURCHASE ORDER BREAKDOWN BY AMOUNT
The following table shows when a Purchase Order and/or Contract is required depending on the project cost.

Amount Type PO Required? Contract
Required?
< $5000
Materials only No No
Services, Onsite Yes Yes
Services, Not Onsite No No
$5,000 - $50,000
Materials only Yes No
Services, Onsite Yes Yes
Services, Not Onsite Yes No
>$50,000
Materials only Yes Yes
Services, Onsite Yes Yes
Services, Not Onsite Yes Yes

WORKFLOWS FOR PURCHASING BY EXPENDITURE AMOUNT
The following table describes the purchasing process for all City purchases except travel costs, utility services, and San Joaquin County services, as defined above.

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Purchases subject to CUPCCAA are subject to additional requirements, as specified in the related policy.

Note: Splitting of contracts for the purpose of pulling the total contract amount below a purchasing threshold is prohibited. The Administrative Services Director may reject a proposed purchase if it is determined that contract splitting has occurred. See “Splitting of purchases,” above.

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COMPETITIVE PROCUREMENT
One of the key objectives of the City’s purchasing policy is ensuring the City and its residents receive goods and services for a fair and reasonable price and that the City procures its goods and services in a fair and open manner under the circumstances.

Accordingly, competitive bids, quotes, or proposals are required for purchases that exceed $50,000 unless a non-bid justification is documented and approved.

Methods of Procurement
The City may use 4 general methods of procurement depending on the circumstances:

Competitive Bids
• Used for goods or services when price is the primary deciding factor. • Contract is awarded to the lowest responsive and responsible bidder. • Solicitations for bids should specify the minimum qualifications for bidders. • Solicitations for bids should include sufficient details so that bid responses will be comparable.
• Shall not be used for architectural, landscape architectural, engineering, environmental, and land surveying services, as these services require an evaluation of proposer competence.

Value Procurement
• Used for goods or services when price is one among multiple objectively quantifiable deciding factors.
• Contract is awarded to the bidder who provides the overall best value to the City, which is defined as the combination of objectively quantifiable attributes that is expected to best achieve the City’s objectives for the procurement and be in the best interests of the City’s citizens.
• Value procurement may be useful when, for example,
• The quality of the good or service to be purchased makes a significant difference in value to the City.
• The experience or qualifications of the individuals to perform the proposed service makes a significant difference in value to the City, but the City wishes to consider proposals from bidders with varying levels of experience or qualifications and evaluate them in relation to price.
• The City has a substantive need for the good or service to be delivered on an expedited timeline and wishes to award preference to those bidders who can deliver more quickly.
• Solicitations for bids or proposals must specify in detail the selection criteria and the relative weight of the factors to be considered in determining overall best value.
• Shall not be used for projects requiring formal bidding under the City’s CUPCCAA policy, as current law on formal bids does not permit the use of this method. It may be used on informal bids subject to CUPCCAA only if the method Item 8.2
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otherwise complies with the informal bidding procedures permitted under the CUPCCAA policy and applicable law.

Requests for Proposals
• Used for services when non-price considerations such as proposer qualifications and competence are significant deciding factors.
• Preferred method for professional consulting services unless a request for qualifications/master services agreement will be used, as discussed below, since the selection of a professional consultant should consider qualifications. • Request for Proposals document is circulated that includes:
• A description of the scope of work
• A description of any minimum qualifications necessary for a successful proposal • Designation of a single District representative as point of contact for proposers • A description of the criteria on which the proposals will be evaluated and the relative importance of each criterion
• A requirement that proposers include references
• A selection committee of District representatives rates proposals received according to the criteria specified in the request for proposals to determine a ranking of the proposals received.
• Negotiations begin with the proposer who scored the highest. If an acceptable contract cannot be negotiated with that proposer, negotiations will begin with the next-highest proposer.

Requests for Qualifications/Master Services Agreement
• Used when the City will have an ongoing need for a significant amount of a particular type of professional or specialized service that can be divided into discrete tasks.
• Request for Qualifications is circulated that includes o A general description of the type of services needed by the City. o A requirement for interested firms to submit statements of qualifications demonstrating their relevant experience, competence, and billing rates that would be charged in performing the services
o Designation of a single District representative as point of contact for proposers
o A description of any minimum qualifications
• A selection committee will review the received statements of qualifications and determine which proposers meet the City’s criteria for the work to be performed. • For those meeting the criteria, the City may execute master services agreements with appropriate approval by the Board that provide that the City may subsequently approve task orders with specific scopes of work with the approved vendors. No work may begin without an approved task order.

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Requirements applicable to all solicitations for bids/proposals/SOQs. The following requirements apply to the solicitation of competitive bids, proposals, or statements of qualifications:
• Written solicitations for competitive bids or proposals should incorporate a clear description of the goods or services to be procured and should avoid unnecessary restrictions that may limit competition such as the specification of a particular brand name. The clarity required depends on the circumstances. In cases where the City is issuing a request for qualifications for firms to be considered for a variety of projects on an on-call list, the description will necessarily be more general.
• Solicitations should be posted on the City’s website and circulated to potential bidders/proposers and should allow sufficient time for an adequate response if appropriate given the urgency of the City’s need for the good or service. Unless the need is urgent, a minimum of 3 weeks should generally be allowed for bids/responses.
• All potential bidders/proposers should be given an equal opportunity to seek clarifying and additional information about the City and the solicitation. During the time a solicitation is under way, potential bidders/proposers should limit their contact with the City regarding the solicitation to the individual identified as the contact person for the solicitation.
• A contract shall not be awarded to a proposed vendor if a District representative or employee with a conflict of interest in the procurement, such as a close family connection or a material financial interest in the proposed vendor, participated in the selection process.

Non-bid justifications. Acceptable non-bid justifications include, but are not limited to:
• The contract with the vendor has been previously put out to bid and there is either no change in cost from the previous bid price or the change is fair and reasonable in the circumstances.
• The vendor provides a service that requires significant knowledge of the City’s specific operations and the potential cost of onboarding a new vendor is judged to be greater than the benefit received by competitive bidding. However, this justification may only be used to award a new contract to a vendor for a particular service if the previous contract with that vendor for the service in question had been awarded under a competitive procurement. Accordingly, a non-bid justification based on a vendor’s existing knowledge of the City’s operations may only be used once every other year if the contracts are awarded on an annual basis. After the justification is used for a particular vendor and service, a competitive procurement must be conducted before the justification can be used again.
• The good or service needed by the City is of a highly specialized nature and there are few, if any, competitors in the market to provide the good or service.

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• The City has recently attempted to put the service out for bid or proposals but has failed to receive at least 3 qualified proposals despite adequate circulation.

REQUIRED DOCUMENTS FOR PURCHASES
In order to ensure timely processing of all purchase requests, requestors should ensure their requests include all required documents when submitting to the Finance Department. The following describes the documents required for each purchasing level:
• Under $5,000
o No purchase order required for materials or off site services. Vendor or credit card company submits invoice for payment under normal payment process.
• Task Orders Under Master Services Agreements
o Task order signed by Department Head.
o Justification of the reasonableness of price.
o Master Agreement Tracking Form listing all task orders approved under the master services agreement to date and demonstrating that the current task order does not cause the total to exceed the agreement amount. • $5,000-$50,000
o Requisition identifying the items to be purchased, vendor, and proposed pricing or proposed contract signed by vendor.
o Identification of any non-standard contract language requested. o Written justification that the price offered by vendor is reasonable or that the vendor is the only one reasonably available to provide the good or service.
o For architectural, landscape architectural, engineering, environmental, and land surveying services, a written justification of the demonstrated competence and professional qualifications of the vendor for the work to be performed.
o GL Account Code to be charged with the expense.
o Up-to-date insurance certificates from the vendor.
o Current valid business license for the vendor.
o New vendor packet if applicable.
• Over $50,000
o Requisition identifying the items to be purchased, vendor, and proposed pricing or proposed contract signed by vendor.
o Identification of any non-standard contract language requested. o Copies of 3 competing quotes or proposals for the product or service or a non-bid justification.
o For architectural, landscape architectural, engineering, environmental, and land surveying services, a written justification of the demonstrated competence and professional qualifications of the vendor for the work to be performed, if not otherwise addressed in the proposal or bid material. o GL Account Code to be charged with the expense.

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o Up-to-date insurance certificates from the vendor.
o Current valid business license for the vendor.
o New vendor packet if applicable.
o Additional item specified below if the contract exceeds $100,000 or $175,000 if it is a capital expenditure or construction contract. • Over $100,000 ($175,000 for capital expenditures and construction contracts) o All of the requirements for purchases over $50,000 above, plus:
o Draft staff report to be presented to the City Council explaining the purchaseUnder $5,000

PURCHASING TIMEFRAME
Except in cases of emergency at the discretion of the Administrative Services Director, no purchase may be made nor may work commence for purchases of $5,000 or more until the Finance Department approves a requisition and the requestor issues a Purchase Order using Tyler Incode under this policy. Unless the total purchase is under $5,000 or an exception is granted, invoices from vendors showing work performed or goods shipped prior to the purchase order date will be returned unpaid.

Except in cases where there are complications or problems with the proposed purchase, the Finance Department will issue Purchase Orders under the following timelines, if the submission by the requestor includes all required information and the purchase is approved:
• Purchases of $5,000 to $100,000 ($175,000 for capital expenditure and construction contracts): Decision on requisition 5 business days after receipt of the proposed purchase from the requestor
• Purchases in excess of $100,000 ($175,000 for capital expenditure and construction contracts): Approved requisition 20 business days after receipt of the proposed purchase from the requestor, if the request is submitted exactly 3 weeks prior to a scheduled Board meeting and the Board, Finance, the City Manager, and any other authority approve the proposed purchase. Purchase requests submitted less than 3 weeks prior to a Board meeting will be delayed until the next Board meeting, unless an exception is approved by the Administrative Services Director.

Emergencies. From time to time, the City may encounter a purchasing emergency. A purchasing emergency is defined as a situation in which a purchase is needed immediately and adherence to the normal purchasing timelines as defined above is expected to result in injury to persons or property or substantial additional cost to the City. However, the Administrative Services Director may exclude situations from the definition of a purchasing emergency if the situation was known to District personnel far enough in advance for those personnel to have addressed the situation within the normal purchasing policy timelines. Requestors who become aware of purchasing emergencies should notify the Administrative Services Director as soon as they become aware of the emergency, as failure to do so may result in emergency claims being Item 8.2
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denied. In cases of purchasing emergency, the Administrative Services Director may expedite purchasing timelines, waive requirements, and/or schedule additional City Council meetings as necessary to address the emergency.

INSURANCE REQUIREMENTS
For purchases of $5,000 or more, the City will require, as a condition of contract, that the vendor maintain the following insurance coverages if the City is exposed to risk in these areas:
• For contracts where work will be done on or to the City’s property, commercial general liability coverage with a limit of $1,000,000 or more per occurrence and in the aggregate.
• For contracts involving professional services where an error or omission in the service could result in significant loss to the City, professional liability coverage with a limit of $1,000,000 or more per occurrence and in the aggregate. • For contracts for services with vendors who have employees, worker’s compensation and employer’s liability coverage in the amount statutorily required.

Certificates evidencing the above coverages must be submitted to Finance along with the request for purchase order.

PURCHASE ORDERS AND REQUIREMENTS FOR VENDOR INVOICING
Requestors will issue all purchase orders under this policy from the Tyler Incode system after Finance approves the purchase requisition, which will result in the reduction of available budget if the purchase is to be made from budgeted funds (purchases made from developer funds are not budgeted).

Each purchase order shall be issued with an expiration date which, in most cases, should not be beyond the end of the fiscal year, though exceptions may be approved on a case-by-case basis by the Administrative Services Director or designee. Any invoice for work performed or goods delivered after the expiration date of a purchase order will be returned unpaid unless an exception is approved by the Administrative Services Director or designee. District employees needing to extend the expiration date on a purchase order should contact the Finance Department to request the extension prior to the expiration date.

Each purchase order shall contain the following requirements for vendor invoicing:
• Vendor invoices must include the purchase order number • Vendor invoices should be submitted to a centralized e-mail address maintained by the Finance Department or by mail to the attention of Accounts Payable at the City’s Office.
• Vendor invoices for work performed or goods delivered within a fiscal year must be submitted within 45 days of the end of the fiscal year in which the work was performed.

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SECTION 220: CONSTRUCTION BIDDING AND CONTRACTING UNDER CUPCCAA Projects from $0 - $45,000
For all construction jobs from zero ($0) up to and including forty-five thousand dollars ($45,000) Mountain House Community Services District shall utilize the following procedures.
1) The Public Works Department will have the discretion to select from the list of prequalified contractors, any contractor they deem to be in the best interest of the City, and have a written quote submitted from them.
2) Upon selection of the contractor as well as the submission of their quote, administrative staff will draft and have the contractor execute the “CONTRACTOR – Standard Agreement.”
3) Contractor will be required to submit current W-9, business license and Certificate of Insurance.

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4) Administrative staff will submit proposed contract to the Finance Department and obtain the approval of the Finance Department that the contract is within the adopted budget. The contract should be submitted at least 5 business days prior to the desired start date for the work.
5) If approved, the Administrative Services Director or designee will obtain City Manager signature/approval upon receipt of executed contract from vendor. 6) Once all required documents have been received, and the Agreement is fully executed, administrative staff shall return to the contractor a fully executed copy of the Agreement along with the Purchase Order. This combination of documents will be considered the Notice to Proceed, contingent upon direction by the Public Works Department
7) Administrative staff will submit the required PWC-100 through the DIR website for construction projects in excess of $25,000 and maintenance projects in excess of $15,000.
8) Contractor is required to submit payment bond for all projects in excess of $25,000 prior to commencement of work.

Projects from $45,001 - $175,000
For all jobs from forty-five thousand and one dollars ($45,001) through one hundred seventy-five thousand dollars ($175,000) Mountain House Community Services District shall utilize the following “Informal Bidding” procedures.

1. The Public Works Department will issue a notice to pre-qualified contractors inviting them to provide estimates by the specified date and time as follows:
a. Only those pre-qualified vendors within the applicable trades will be notified.
b. “Notice Inviting Informal Bids” shall be delivered to prequalified vendors at least 14 calendar days in advance of submission deadline. (exhibit A)
i. The notice must describe the project in general terms, state the time and place for submission of bids and
describe how to obtain more detailed information about
the project.
c. All projects will be assigned a “Job #” that is unique to that project.

2. The lowest submitted estimate shall be awarded the contract by the City. a. Upon award, the contractor will be required to execute the “CONTRACTOR – Standard Agreement.”
b. Upon award, the contractor will be required to submit current W-9, business license and Certificate of Insurance.
c. The proposed contract will be submitted to Finance to verify the contract is within the adopted budget. The contract Item 8.2
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should be submitted at least 5 business days prior to the desired start date for the work.
d. If approved, the Administrative Services Director or designee will obtain City Manager signature/approval upon receipt of executed contract from vendor.
e. Once all required documents have been received, and the Agreement is fully executed, administrative staff shall return to the contractor a fully executed copy of the Agreement along with the Purchase Order. This combination of
documents will be considered the Notice to Proceed,
contingent upon direction by the Public Works Department. f. Administrative staff will submit the required PWC-100 through the DIR website.
g. Contractor is required to submit payment bond prior to commencement of work

3. In the event that all bids received exceed $175,000, and the City determines that the cost estimate was reasonable, the City may award the contract up to $187,500 to the lowest responsible bidder. The contract must be approved by Resolution of the Board.

Projects in excess of $175,000 shall be let to contract by formal bidding procedures.

OR
• The change order in question together with any previously approved change orders on the same contract increase the contract price by no more than a cumulative total of 10% of the original contract amount or $15,000, whichever is greater, and;
• The change order is related to the existing contract scope, and; • The cost of the change order is reasonable and justified in writing.

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• Multiple contracts with the same vendor for essentially the same scope of work • Separate contracts with the same vendor for different phases of work, all of which must be performed in order for the work product to have any substantial value to the City (except in cases where the City is completing work in phases for budgetary reasons and does not have the budget available at one time to contract for all phases of the work)
• Separate contracts or purchases with the same vendor for various physical goods which have limited value to the City unless goods from multiple purchases are physically assembled or combined into one or more physical items, the value of which would exceed a purchasing policy threshold
Emergencies. In cases of emergency where repairs or replacements are needed immediately and the delay caused by following the procedures under this policy could cause significant harm, the Administrative Services Director should be notified immediately. The Administrative Services Director will consult with the City Manager, who, if delegated authority pursuant to Public Contract Code section 22050(b)(1) may let the contract without bidding procedures provided that the action is reported to the City Council no later than 7 days after the action is taken, or 14 days if at the next regularly scheduled meeting. The report shall include reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency. The Board must then vote by a 4/5 vote to continue the action if warranted. If the Board has not delegated this authority to the City Manager, the Board itself must cause to be noted in the minutes to a meeting the reasons the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency and must then approve the action by a 4/5 vote before a contract may be let outside of the competitive bidding process.

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EXHIBIT A
PDF

MOUNTAIN HOUSE COMMUNITY SERVICES

DISTRICT

NOTICE INVITING INFORMAL BIDS
NOTICE IS HEREBY GIVEN that Mountain House Community Services District, will accept sealed Bids for award of a Contract for project # _____________
__________________________ _________________________________________________.

The Project requires the following license(s) _______. The project is anticipated to be ________ calendar days.

Bids are due at ___________, on ____________________________. It is each Bidder’s sole responsibility to ensure their bid is timely delivered and received at the locations designated below. Any bid received after the scheduled closing time for receipt of bids shall be returned to the bidder unopened.

Mountain House Community Services District, Public Works Department, 251 E. Main Street, Mountain House, CA 95391.

CUPCCAA: This project is being let in accordance with the California Uniform Public Construction Cost Accounting Act (“CUPCCAA) set forth in Public Contract Code section 22000 et seq. Bidders shall comply with any requirements set forth in the CUPCCAA including all guidelines and requirements in the current California Uniform Construction Cost Accounting Commission Accounting Policies and Procedure Manual.

Qualified Contractor’s List for Calendar Year: Bids will not be accepted if a Contractor has not been added to the Qualified Contractor List for the current calendar year. The application to be considered for Item 8.2
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the list is available on the City website (see link below). Incomplete applications will be returned to the contractor. Contractor must submit a complete application 5 days prior to the bid opening. http://www.mountainhousecsd.org/about-mountain-house-/public-works-department/bid-opportunities Mandatory Job Walk and/or Pre-Bid Conference: _____________ on _______________________ at __________________________________________. Any Contractor bidding on the Project who fails to arrive on time, sign in and attend the entire mandatory job walk and/or conference will be deemed a nonresponsive Bidder and will have their Bid returned unopened.

To obtain Bid Documents: The bid documents will be available beginning 8:00 a.m. __________________ on the MHCSD website (see link below). All addenda will be available to interested Contractors, and Bidders responsible to check the website for addenda issued prior to submitting their bids. http://www.mountainhousecsd.org/about-mountain-house-/public-works-department/bid-opportunities For additional information, please contact ____________________ via email ___________________ or via phone __________________.

Prevailing Wages: This is a public work project. The Contractor and all Subcontractors (of any tier) must be currently registered and qualified to perform public work in accordance with Labor Code section 1725.5.

Unless specifically exempted by the Labor Commissioner for this Project, the Contractor and all Subcontractors shall furnish certified payroll record as required pursuant to Labor Code section 1776 directly to the Labor Commissioner in accordance with Labor Code 1771.4 on at least a monthly basis (or more frequently if required by the City or Labor Commissioner) and in a format prescribed by the Labor Commissioner for this Project, monitoring and enforcement of the Prevailing Wage laws and related requirements will be performed by the Labor Commissioner/Department of Labor Standards Enforcement (DLSE).

END OF NOTICE
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SECTION 230: CONSTRUCTION CUPCCAA CONTRACTORS LIST PROCEDURE Mountain House Community Services District shall create and maintain a list of prequalified Contractors for all transactions between zero ($0) and one hundred seventy-five thousand dollars ($175,000) in the following manner. (exhibit A) i) Annually in November, the Public Works administrative department shall create and maintain a list of Prequalified Contractors as follows. a. A written notice shall be published in all construction journals specified by the CUPCCAA Commission, as well as any
other locations that the Public Works Department deems
appropriate. (exhibit B)
b. The City’s publication shall invite all licensed contractors to submit their prequalification application to Public Works administration department. (exhibit C)
c. The Public Works Department will review contractors that meet predetermined State and District acceptance criteria for inclusion on the list of qualified bidders for each calendar year.
i. Acceptance criteria: Contractor must have valid CSLB license and be currently registered with the DIR as a
Public Works Contractor.
d. This list of contractors will be identified according to categories of work.

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ii) At the completion of the calendar year, the list will be deemed completed, and a new list will be prepared in the same manner to begin on January 1st of the next calendar year.
iii) Contractors may at any time during a calendar year request to be added to the list of prequalified contractors.

Construction Journals to be notified, as specified by the Commission:

1. Construction Billboard (Ebidboard)
11622 El Camino Real, #100
San Diego, CA 92130
Phone: 800-479-5314
Email: [email protected]
Website: www.ebidboard.com

2. Dodge Data & Analytics
830 Third Avenue, 6th Floor
New York, NY 10022
Phone: 877-784-9556
Email: [email protected]
Website: www.construction.com

3. Builders Exchange of Stockton
7500 West Lane
Stockton, CA 95210
209-478-1000
Email: [email protected]
Website: www.besonline.com

4. Valley Builders Exchange, Inc.
1118 Kansas Avenue
Modesto, CA 95351
Phone: 209-522-9031
Email: [email protected]
Website: www.valleybx.com
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SECTION 240: ETHICAL STANDARDS OF CONDUCT

OVERVIEW
The purpose of this policy is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the City.

STANDARDS OF CONDUCT
Every employee or official engaging in purchasing activities on behalf of the City is required to employ the following standards of conduct:
• Consider, first, the interests of the City in all transactions. • Carry out the established policies of the City.
• Buy without prejudice, seeking to obtain the maximum value for each expenditure of public funds.
• Subscribe to and work for honesty and truth in buying and selling, and to denounce all forms and manifestations of commercial bribery. • Cooperate with all organizations and individuals engaged in activities designed to enhance the development of purchasing practices.
• Respect obligations to others and require the same respect from others for their obligations.

PROHIBITED PRACTICES
The following practices are specifically prohibited in performing purchasing activities on behalf of the City:

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• Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the City.
• Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of value, or any promise, obligation or contract for future reward or compensation. Gifts and meals received by District employees are exempt from this prohibition and permitted if the total value gifts and meals received by each employee from a single source is no more than $150 in any one fiscal year.
• Using information available to officials and employees, solely because of their District position, for personal profit, gain or advantage. • Directly or indirectly furnishing services or information not available to all prospective bidders to any person or firm bidding on, or who may reasonably be expected to bid on, a contract with the City.
• Providing confidential information to persons to whom issuance of such information has not been authorized.
• Using a position or status in the City to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to the City.
• Serving the interests of any organization (either as an officer, employee, member of the City Council , or in any capacity for consideration) which transacts or attempts to transact business with the City for profit when such employee holds a District position of review or control—even though remote—over such business transactions.

RESPONSIBILITY
Employees. Each employee is responsible for following these practices. Violation of this policy may result in disciplinary action, termination of employment or criminal prosecution.

Department Managers. Department managers are responsible for ensuring that all employees of their department who conduct purchasing activities possess a thorough understanding of these standards of ethical conduct and prohibited practices.

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SECTION 250: DISTRICT CREDIT CARDS

OVERVIEW
Purpose
These guidelines establish the City’s basic policies and procedures for using credit cards in making supply and service purchases on behalf of the City and paying for travel expenses when on District business.

District Use Only. District credit cards are for official business use only. Charging personal expenses, even if the intent is to reimburse the City later, is prohibited. Doing so may result in disciplinary action, including, but not limited to, cancellation of the credit card issued to the employee or a negative performance evaluation.

Objectives
By using credit cards instead of other payment options we:
• Reduce procurement and payment processing costs.
• Improve vendor relations by making “doing business” with the City easier. • Enhance internal control by better identifying specific employees making supply and service purchases on behalf of the City and improving the accuracy of account distributions between programs and projects.
• Take advantage of cost-saving opportunities by purchasing on the Internet and through catalogs.

Internal Control Concerns
While credit cards provide a cost-effective alternative for purchasing supplies and services and paying for authorized travel expenditures, the potential for abuse may offset any benefits that they offer. The primary responsibility for ensuring the appropriate use of credit cards lies with each employee assigned a card. Department Item 8.2
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managers are responsible for ensuring that employees are aware of their responsibilities and for implementing appropriate review and payment procedures within their department.

Some level of risk is inherent in credit card use in conducting District business, however, there are also significant advantages. With reasonable internal controls and exercise of good judgment by cardholders, these advantages outweigh the underlying potential for abuse.

POLICIES
• The Finance Department issues District credit cards to regular employees as approved by the department managers. Department managers may set credit card limits and “per transaction” limits at their discretion. • Credit cards should never be used to circumvent established competitive purchasing procedures. This means no purchases for goods or services should be made in excess of the threshold amount that would otherwise require competitive bidding unless such requirements have been met. • Credit cards may be used in paying for travel expenses. However, the District’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.
• Employees will not use District credit cards for personal expenses even if the intent is to reimburse the City later. Charging personal expenses on District cards is a misuse of District funds and a serious breach of the City’s ethics policy. Doing so - even if the intent is to reimburse the City later - may result in disciplinary action, up to and including termination. Cardholders who discover accidental personal charges on the City credit card must declare the charges and immediately reimburse the City.

Note: Including minor incidental expenses as a component part of a larger billing - such as personal telephone calls or video rentals on a hotel bill - is allowed if reimbursed at the time the credit card billing is submitted for payment.

Standard Way of Doing Business. Using credit cards is no longer a “special way” of purchasing supplies and services on behalf of the City; for many purchases, it has become the standard way of doing business. For those employees assigned District credit cards, purchasing supplies and services on behalf of the City is an integral part of their job duties; and failure to follow District policies and procedures regarding the use of District cards is no different from failure to follow policies and procedures in any other aspect of their job.

PROCEDURES
Requesting Credit Cards. Department managers should submit credit card requests to the Finance Department (via memorandum or email) to approve cardholders and set credit card limits, if so desired.

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Criteria. Credit cards are only issued to regular employees. Department managers should consider the following factors in approving credit cards for their staff and setting credit limits:
• Ability to hold the employee accountable for purchases made on the card. • Recognition that delegating authority to an employee to purchase via credit card is not conceptually different from delegating authority to them to purchase from an open contract on a vendor account.
• Frequency of use, diversity of vendors and dollar value of purchases made by the employee.

Cardholder Agreement. Before receiving a credit card, employees must sign a “credit cardholder use agreement” (Exhibit A) setting forth their obligations under this program.

Purchasing policy and competitive bidding still applies. The City’s purchasing policy and competitive bidding standards apply to all types of payment methods, including credit card purchases.

This means individual purchases of $5,000 or more must have a written price justification and an approved requisition from Finance prior to purchase.

Timely Payment. Department managers are responsible for ensuring that each credit card statement (along with appropriate supporting documentation reconciled to the statement) is submitted to the Finance Department for payment in a timely manner.

Payments must be made timely to avoid administrative charges and late fees.

Disputed Charges. Cardholders are responsible for ensuring that the vendor and issuing bank are notified immediately of any disputed charges. Departments should pay the statement in full - including any disputed amounts - to avoid finance charges and late fees; when resolved, this will result in a credit to the account on the next monthly statement.

Standard Process for Payment. The City’s standard accounts payable system is used in processing monthly credit card statements for payment. Cardholders will note the account number to be charged for each item appearing on the statement or note summary totals by account. The summary totals must tie to the total due on the credit card statement. Supporting documentation for credit card payments should be the same as for any other accounts payable item. This means that original invoices (or receipts) along with credit card receipts must be retained and reconciled and attached to the credit card statement.

Lost or Stolen Cards. Cardholders are responsible for ensuring that the issuing bank and the Finance Department are notified immediately if the card is lost or stolen.

Failure to do so may result in making the cardholder responsible for any fraudulent use of the card.

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Disciplinary Action. Department managers are responsible for all disciplinary action surrounding misuse of cards, including requesting cancellation of card privileges.

Return of the Card Upon Request or Termination. Cardholders will immediately surrender their card upon request of their department manager. Human Resources is responsible for retrieving the credit card when an employee separates from the City.

Use of the credit card for any purpose after its surrender is prohibited.

RESPONSIBILITIES
Cardholders.

1. Determine that budget is available for the intended purchase.

2. Determine that the purchase complies with District policies and is in the City’s best interest.

3. Obtain an approved requisition for purchases of $5,000 or more.

4. Make purchases during the month using the credit card and retain original and detailed receipts for each purchase showing the individual items purchased.

5. After receiving the credit card statement, assign each purchase to an appropriate general ledger account number in the City’s accounting system depending on the type of expense.

6. Submit the credit card detail with the original receipts to the appropriate Department Manager for review.

Department Managers. As Needed Authorize issuance of credit cards and set credit limits; develop and implement departmental procedures to ensure that payments are appropriately reviewed and approved, processed in a timely manner and that all supporting documentation is retained, reconciled to monthly statements and attached to payment vouchers; and oversee implementation of these guidelines.

Routine Monthly Process

1. Ensure any cardholders under their jurisdiction return the credit card statement with associated receipts by the specified time each month.

2. Review the credit card statement and receipts to determine a. That the charges represent legitimate District expenses incurred in accordance with District policy
b. That the account coding for the transactions is correct c. That receipts are attached for all charges.

3. Sign the statement indicating the review has been completed and forward the statement to the Finance Department within 48 hours of receiving the downloaded statement from the Finance Department, in no event later than the 10th day of each month.

Finance Department. As Needed Obtain credit cards as requested by department managers in accordance with these guidelines; and replace lost or stolen cards.

Item 8.2
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Routine Monthly Process

1. By the 7th of each month, download the credit card statements and distribute them to the cardholders for approval and account classification.

2. Review credit card statements approved by Department Managers to determine:
a. That the statement has been authorized for payment by the Cardholder and Department Manager
b. That the account coding for the transactions appear correct c. That the purchases appear to have been made in accordance with District policies

3. Process the credit card bill for payment according to the normal bill payment process. Because of the potential for late charges and the need to allow time for the County Auditor-Controller’s Office to process payment, credit card bills must be processed immediately upon receipt of the approved credit card statements by the Department Managers, no later than the 10th of each month.

Human Resources. Retrieve credit cards from employees separating from the City.

SUMMARY
These guidelines cannot cover every issue, exception or contingency that may arise in using District credit cards. Accordingly, the basic standard that should always prevail is to use common sense and good judgment in the use and stewardship of District resources.

Item 8.2
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SECTION 260: ACCOUNTS PAYABLE AND CASH DISBURSEMENTS
Objectives
The objectives of the City’s accounts payable and cash disbursements policy are as follows:
• District vendors are paid on time in accordance with the City’s obligations. • District vendors are paid correct amounts.
• Only authorized amounts are paid.
• District expenditures are recorded consistently in the proper GL accounts. • District correctly tracks open purchase order or contract balances and applies vendor payments against the correct purchase order or contract. • District maintains timely information about any outstanding liabilities to vendors.

Scope of This Policy
This policy addresses requirements for all cash disbursements from the City for purposes other than employee payroll, which is covered under a separate policy.

Vendor Invoice Submission Requirements
The Finance Department may delay or decline to process vendor invoices unless they meet the following criteria:

1. Vendor invoices must clearly identify the item(s) for which the City is being billed.

2. Vendor invoices must identify the time period when the physical good(s) came into the City’s ownership, or the service(s) were delivered. If the invoice includes charges from multiple fiscal years, the Finance Department may require the vendor to break the charges down between fiscal years.

3. Vendor invoices must include a District Purchase Order number or contract number unless the requested payment is for:
a. An invoice of $5,000 or less
b. Credit card payments (but the cardholder should supply the purchase order number for any individual purchases on their card in excess of $5,000 unless an exception applies)
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c. Employee reimbursements where no single non-travel item exceeds $5,000
d. Utility services payments as specifically defined in the purchasing policy
e. Services delivered by San Joaquin County
f. Government and regulatory fees as defined in the purchasing policy g. Rents and lease payments if the lease has been appropriately approved in accordance with District procedures.
h. Long-term debt payments appropriately authorized under District procedures.

4. Vendor invoices must be mathematically accurate.

5. Vendor invoices must be submitted directly by the vendor via e-mail to the City’s invoice processing e-mail address or addressed to the attention of Accounts Payable at the City’s office and first opened in the Finance Department. The Finance Department will decline to process any invoice for payment unless it has been submitted by the vendor directly to the Finance Department as required under this policy or an exception is approved by the Administrative Services Director.

6. Vendor invoices for services performed or goods delivered during a fiscal year must be submitted to the City within 45 days of the end that fiscal year.

Cash Disbursements without Vendor Invoices
Although the general rule is that vendor payments require an invoice in accordance with the requirements outlined above, in limited circumstances, the Finance Department may proceed with processing a vendor payment without an invoice from the vendor or with an invoice that does not meet all of the requirements above as determined by the Administrative Services Director or Finance Director. This will typically occur for wellknown and routine District obligations, such as the payment of refuse disposal charges that the City collects from customers to the disposal service provider or monthly lease payments where the City has entered into a lease but does not receive invoices from the lessor. Whenever this occurs, alternate supporting documentation must be prepared by the City explaining the need for the payment and the calculation of the payment amount.

Disbursement Procedure for Payment by Physical Check
Upon the submission of an invoice meeting the above “Invoice Submission Requirements,” or if an appropriate exception is approved, the payment procedure is initiated, as follows:

1. The Finance Department will log the invoice on a pending invoice log and then forward the invoice to the responsible Department Head or designee for review within 2 business days of receipt.

2. The Department Head or designee will review the invoice and respond to the Finance Department within 7 business days of the date it is forwarded to them that the invoice is approved, approved with modifications, denied, or on hold. If Item 8.2
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the responsible department places a hold on a vendor invoice, they shall notify the Finance Department within the 7-day period following their receipt of the invoice the reasons for the hold and when they expect the hold will be resolved.

3. If the Department Head approves the invoice for payment, the Department Head or designee will sign the invoice and indicate the proper GL account coding for processing and return the invoice to the Finance Department.

4. The Finance Department will review the approved invoice for the following, returning to the Department for correction as necessary:
a. Is the person who signed or approved the invoice for payment authorized to approve invoices on this purchase order or for this GL account?
b. Is the GL account coding or purchase order number assigned by the department accurate in view of the items shown on the invoice? c. Will the invoice exceed the available balance in the purchase order or budget available for the GL account, where applicable?
d. Are any delivery or service addresses listed on the invoice for District locations, or is there a legitimate reason why a good or service would be delivered at a location other than the City’s facilities? e. Does the invoice raise substantial concerns that the goods or services were not used for District business?

5. If the vendor has not been previously set up (ordinarily this will only happen for invoices of $5,000 or less since vendor setup should be complete at the time of a purchase order if one is issued), the Finance Department will contact the vendor and obtain the required W-9 and new vendor form information.

6. If the account coding is accurate and the vendor has been set up, the Finance Department will enter the invoice into the accounting system. Care must be exercised to ensure the invoice is entered accurately, especially in the following areas:
a. The payable date entered coincides with the date the services or goods were delivered.
b. The GL account and PO number, if applicable, correctly matches the information on the invoice.
c. The vendor invoice number is entered exactly as written on the invoice or using a standard practice developed to ensure the data entry in this field is consistent. This will help ensure that the system will reject duplicate invoices submitted for payment with the same invoice number.

7. If the invoice causes a budget overage or exceeds the amount available on the purchase order, the Finance Department will contact the Department Head and will stop further processing until a budget adjustment is processed, the purchase order value is increased, or the invoice is reassigned to another appropriate GL account or purchase order where sufficient budget exists.

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8. The entered invoices that have passed the system’s internal budget check will then be reviewed by a different Finance Department employee than the one who performed the initial input for accuracy. The reviewer will consider:
a. Whether the invoice raises any substantial questions or concerns. b. Whether the payable date has been correctly entered based on the date the goods or services were delivered on the invoice c. Whether the invoice account coding is accurate (taking into account which GL account has been used consistently to charge the item in the past, if applicable)
d. Whether the invoice has been charged against the correct purchase order based on the purchase order number shown.

9. After the internal review, the Finance Department will create a data extract from the accounting system and submit it to San Joaquin County for disbursement processing in accordance with their procedures within 6 business days of receiving an approved invoice from a Department Head or designee if the invoice is approved for payment by the Finance Department. The list of disbursements sent to San Joaquin County for processing must be signed by an authorized signer designated as such by the City according to the County’s procedures.

The current authorized signers are the City Manager, Administrative Services Director, Finance Director, Accounting Manager, and Clerk of the Board, but the authorized signers may be changed from time to time by action of the City Council .

Wire Transfers from County Treasury
It is District policy that all wire transfers of District funds require the signature of two authorized individuals. The procedure for documenting and approving wire transfers from the County Treasury is as follows:

1. For vendor payments to be made by wire transfer, the vendor invoice or alternate documentation shall be reviewed and entered into the City’s accounting system in accordance with procedures 1-8 described above under “Disbursement Procedure for Payment by Physical Check.”

2. For wire transfers from the County Treasury to another bank or investment account owned by the City, if permitted, documentation supporting the dollar amount or need for the transfer is not required for District purposes. However, the creation of written wire transfer instructions and signature of two authorized individuals shall still be required to execute the transfer.

3. After successful review and approval of the obligation for payment, the Accounting Manager or another Finance Department staff member shall prepare written wire instructions to the County of San Joaquin identifying the dollar amount and bank routing information to execute the wire. Unless the wire transfer destination is another account owned by the City, the Finance Department staff member will attach the supporting invoice or alternate Item 8.2
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documentation substantiating the City’s need to make the payment (e.g. contract, legal document) and the calculation of the amount, if applicable.

4. The written wire transfer instructions must be carefully reviewed (as to the accuracy of the dollar amount and destination routing information as well as the legitimacy of the payment, where any of these apply) by two of the following:
a. City Manager
b. Administrative Services Director
c. Finance Director
d. Assistant Finance Director
e. Accounting Manager

5. The two reviewers as described above must both sign the wire transfer instructions. The signature may be physical or electronic.

6. After being signed by two authorized individuals, the Accounting Manager or designee may proceed with requesting the wire from San Joaquin County in accordance with their procedures.

Wire Transfers from Bank or Investment Accounts outside County Treasury It is District policy that all wire transfers of District funds require the signature of two authorized individuals. For any bank or investment accounts established by the City, the City will communicate this policy to the bank or investment firm and set up controls with those firms, where available, so that they will not accept wire transfer requests not approved by two authorized individuals.

Wire transfers to outside parties require review and approval of supporting documentation for the payment amount, destination account, and District need for the payment in accordance with the “Wire Transfers from County Treasury” policy above.

The documentation of the approval of two authorized individuals may be electronic if the bank or investment firm offers a system where two different representatives of the City can log in to approve the transfer. In such case, records from the system showing the approvals may substitute for the written wire transfer instructions discussed above for wires from the County Treasury.

Year End Payables Processing
In order to accurately close the fiscal year on a timely basis, the general requirement is that vendors submit invoices for all work performed or goods delivered within a fiscal year by no later than 45 days following the fiscal year end. Exceptions may be approved by the Finance Director or Administrative Services Director.

During the period following the end of a fiscal year, the Finance Department staff will ensure that any invoices for work performed or services delivered in the prior fiscal year are appropriately posted to that year until the established cutoff time. After that time, if the Finance Department identifies any additional invoices for work performed or goods delivered in the prior fiscal year, the invoice should be brought to the attention of the Finance Director or Administrative Services Director. The Finance Director and Administrative Services director will then determine whether to pay the invoice. If they Item 8.2
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approve payment, they will log the invoice and determine the materiality of any collective late invoices for posting to the prior fiscal year during the audit process.

SECTION 310: TRAVEL POLICY
Based on Personnel Policies and Procedures approved 2/10/2021

OVERVIEW
Travel on MHCSD business or individual contract business shall be by the most economical means consistent with the situation, as determined by the MHCSD City Manager. The MHCSD will reimburse authorized travelers for their necessary and reasonable expenses incurred while traveling on MHCSD business.

Approval Required Prior to Travel and for Reimbursement Requests The Department Manager must approve travel on MHCSD business outside of San Joaquin County in advance. All reimbursement requests must be signed by the employee and approved by the Department Manager or designee.

Select the Least Expensive Method of Travel Consistent with District Needs Employees may make their own plane/rental car/lodging reservations or have the MHCSD staff make them. Travel shall be by the least expensive method (plane or private car), consistent with the work needs of the MHCSD as determined by the MHCSD City Manager or designee. An employee wishing to travel by private car rather than public transportation shall be reimbursed only up to the cost of public transportation and necessary car rental as determined by the MHCSD City Manager.

Specific Types of Travel Expenses
Local Travel. The MHCSD will fully reimburse authorized travelers for cab, local bus, and rapid transit expenses. Receipts must support any amount over $3.50.

Parking. The MHCSD will fully reimburse authorized travelers for parking expenses.

Receipts are required for amounts over $6.00.

Private Automobile Reimbursement. For employees who do not receive a car allowance, the MHCSD will fully reimburse mileage at the IRS standard business mileage rate in effect on the date when the travel occurred, when certified by the claimant and approved by the manager. The claimant must state from what point to what point mileage occurred and state the purpose of the travel. Employees who receive a car allowance are not entitled to mileage reimbursement for the use of their private vehicles.

Rental Car. The MHCSD City Manager or designee may authorize use of a rental car.

Employees should rent compact cars when traveling unless business necessity dictates otherwise, as determined by the MHCSD City Manager or designee. Authorized Item 8.2
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travelers may claim cost of gas, oil, and related auto expenses when supported by receipts and when such expenses are not part of the rental agreement. Travelers should accept the corporate rate whenever possible. This rate includes necessary insurance. When the corporate rate is taken, travelers do not need to accept the overthe-counter insurance unless they do not have required coverage on their personal insurance. If a traveler must take over-the-counter insurance because personal insurance does not meet MHCSD minimums, the extra insurance cost will not be reimbursed. For economic reasons, travelers are strongly encouraged to fill the gas tank of the rental car themselves before turning it back in to the rental agency.

Tolls. The MHCSD will fully reimburse authorized travelers for tolls. Receipts are required for amounts over $6.00.

Lodging. The MHCSD will fully reimburse authorized travelers for actual lodging expenses consistent with the area of travel when supported by the itemized bill from the establishment. Lodging and the cost of lodging must be pre-approved by the MHCSD City Manager or designee.

Meals. The MHCSD will reimburse the actual reasonable, as may be defined by the MHCSD City Manager, cost of meals excluding alcohol, to authorized travelers on MHCSD business. The cost of meals reimbursed will not exceed the Federal Per Diem rate applicable to the location where the meal was eaten. Any exception to these restrictions will require specific approval by the MHCSD City Manager or designee.

MHCSD-authorized travelers are allowed to host meals for other persons when the meal is related to the business. Travelers may claim actual cost for the meal when supported by receipts. The reason for the meal and the names and titles of guests will be listed on the travel claim form. Any deviation from the above guidelines requires approval by the MHCSD City Manager or designee. Documentation as listed in the above paragraph must be supplied.

Registration Fees. The MHCSD will fully reimburse authorized travelers for registration fees required to attend a seminar, organized luncheon meeting, etc., when supported by receipt. Reimbursement will occur only when the employee has prior written authorization and is representing the MHCSD.

Incidental Expenses. The MHCSD will reimburse authorized travelers for actual incidental expenses incurred, such as personal phone calls, taxi driver and baggage tips, etc. up to a maximum of $8.00 per day (no receipt required) when certified by the claimant. These are claimed and itemized as incidentals on the claim form.

Personal Extension of Business Trip. When employees traveling by air wish to extend an authorized trip beyond the time required for business, they may do so on their own time as long as they obtain pre-approval for vacation taken. The MHCSD will reimburse the employee for the cost of lodging and meals only up to the initial return date.

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Adequate Records
It is the responsibility of the traveler to keep adequate documentation of expenses claimed for reimbursement. Such documentation must substantiate the date, amount, and business purpose of the expenses. Incidentals, while not requiring receipts, must be itemized on a log with the date, description of each incidental expense, and amount attached to the travel claim. All receipts must be original. They should be placed in chronological order and attached to 8 1/2 X 11 sheets of paper with the date and explanation next to the receipt. Any claim submitted that does not follow these guidelines may be returned to the claimant for correction. MHCSD follows IRS requirements for accountable plan reimbursement of employees. Any exceptions to this policy require written approval by the MHCSD City Manager or designee.

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SECTION 320: MILEAGE REIMBURSEMENT RATE
The City reimburses employees for using their personal car in conducting District business at the IRS approved business standard mileage rate, or, for certain employees, a car allowance. Consistent with the IRS basis in setting the standard mileage rate, the City’s per mile reimbursement rate reflects all costs associated with operating a vehicle, such as depreciation, lease payments, maintenance, repairs, fuel, oil, insurance (including deductibles) and vehicle registration fees. The rate is updated at least annually in an official notice published by the IRS. Employees receiving a car allowance are not eligible for reimbursement based on actual mileage driven.

Item 8.2
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SECTION 330: PAYROLL SYSTEM AND PROCESSING
Objectives
The objectives of the City’s payroll policy and procedures are as follows:
• District employees are compensated at the correct rate for services performed. • District employees are paid for the correct number of hours worked. • District payroll is released to employees on time.
• Only authorized amounts are paid.

Compensation
New positions. All new positions are approved by the City Council . When approving the new position, the City Council establishes the initial compensation for that position.

Existing represented positions. Employees represented under collective bargaining agreements typically receive annual cost of living adjustments and step increases in accordance with those agreements and at management discretion where applicable.

Existing unrepresented positions. Unrepresented employees other than the City Manager (typically Department Directors, Deputy Directors, and Assistant Directors) receive step increases and/or cost of living adjustments at the discretion of the City Manager.

Procedure for adjusting compensation rates.

1. All collective bargaining agreements and any other management decisions with respect to employee compensation are provided immediately to the Clerk of the Board.

2. The Clerk of the Board prepares an EPAD form for each employee whenever that employee’s compensation should change. Employee compensation must match salary tables that have been adopted by the San Joaquin County Board of Supervisors, so in cases where the exact compensation rate is not available on the County’s salary tables, the Clerk of the Board selects the compensation rate that is the closest to, and higher than, the calculated amount. The Clerk of the Board then submits the completed EPAD form to the San Joaquin County Human Resources Department.

3. San Joaquin County Human Resources processes the EPAD and updates the payroll system, returning the completed EPAD to the Clerk of the Board who files the form in the employee personnel file.

4. The Clerk of the Board will access the payroll register for the pay period following the effective date of the salary change to ensure that the change was implemented by San Joaquin County Human Resources appropriately. A copy of the initial pay register will be placed in the employee personnel file.

New Hires
When the City hires a new employee, the employee is asked to go to San Joaquin County Human Resources on their first day to complete new hire paperwork and go Item 8.2
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through an orientation in all cases except for seasonal employees hired for recreation purposes (such as the pool program). Seasonal employees hired for recreation attend an orientation at District offices and complete their new hire paperwork at that time. The Clerk of the Board then forwards the paperwork to San Joaquin County Human Resources for processing. Included in the new hire paperwork is a direct deposit form where the employee designates the bank account into which their direct deposit should be made. Only San Joaquin County Human Resources can add a new employee to the system or change the direct deposit information on an employee and they do so only after receiving proper forms from the employee or the City.

Payroll Processing (Bi-Weekly)
District’s payroll payments are released to employees on a bi-weekly basis on Fridays for the two-week period ending on the Sunday preceding the Friday pay day. Following is a detailed calendar of events for each payroll period.

Date Procedure Individuals
Involved
Last Thursday
of 2-Week
Pay Period
All employees prepare their timecards according to
the City’s template, sign them, and submit the
timecards to their supervisor. They include hours
they expect to work on the last Friday of the pay
period even though the timecard must be submitted
before then.

All Employees
5:00 PM,
Last Thursday
of 2-Week
Pay Period
Supervisors review each of their employee
timecards, considering the following questions:

1. Does the timecard agree with my knowledge
of the hours the employee worked for this
pay period, especially if there are overtime
hours?

2. Has the employee correctly included time
off on the timecard when time off was
taken?

3. Is the number of hours reported consistent
with the times in and out written on the
timecard and does the timecard correctly
reflect the employee lunch period?
After reviewing the employee timecards, the
supervisor signs the timecards and submits them to
the Accountant I by 5:00 PM on the last Thursday
of the pay period.

All Supervisors
Last Friday of
the Pay
Period
The Accountant I reviews the timecards submitted
by the supervisor for mathematical accuracy,
inconsistencies in the time data report, and lack of
signatures, and returns incomplete or inconsistent
timecards to the Supervisors for correction.

Accountant I,
Supervisors
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Date Procedure Individuals
Involved
4:00 PM,
Monday
Following the
End of the
Pay Period
After receiving corrected timecards, the Accountant
I must complete initial input of the payroll data by
4:00 PM on the Monday following the end of the
pay period. S/he inputs the data into the County’s
PeopleSoft HRMS system.

Accountant I
Tuesday
Morning
Following the
End of the
Pay Period
The Accountant I checks the PeopleSoft HRMS
system for exceptions on the payroll entered the day
before as soon as the workday begins. S/he then
works with Supervisors to resolve all exceptions by
Noon.

Accountant I,
Supervisors if
needed
Friday
Following the
End of the
Pay Period
San Joaquin County Human Resources initiates
direct deposits to pay employees based on the bank
account information submitted on direct deposit
forms to the County and mails any paper checks
directly to the employees. The City is not involved
in the actual disbursement of funds to the
employees once the payroll entry has been
completed.

San Joaquin
County Human
Resources
At Least
Monthly
After payroll has been disbursed to the employees,
the Accounting Technician accesses the County’s
Oracle General Ledger system and runs a query to
obtain the posted payroll expense figures. S/he
then inputs this information into a journal entry
template created for this purpose and imports the
transaction to the Tyler Incode 10 General Ledger
for the City.

Accounting
Technician
Employee Separations
The City Clerk maintains an employee separation checklist of tasks to complete when an employee separates from District employment, which includes the following:

1. On the day an employee separates from District employment, the City Clerk submits a form to San Joaquin County Human Resources notifying them of the separation. The final paycheck is processed according to the normal payroll calendar and after that San Joaquin County Human Resources removes the employee from active status in the payroll system so they can no longer be paid.

2. The City Clerk notifies San Joaquin County IT to disable the former employee’s login credentials to the City’s network.

3. The City Clerk disables the former employee’s access badge used to access District facilities and collects all keys the former employee possessed.

4. The City Clerk collects the City’s credit card from the employee, if the employee had been issued a credit card. See Section 275 of this policy for further details.

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SECTION 400: FIXED ASSETS AND INVENTORY MANAGEMENT
The purpose of this section is to describe the City’s policies and procedures regarding the management of the City's fixed assets and inventory items.

Areas currently covered include:
• Accounting for fixed assets
• Inventory of fixed assets
• Surplus property
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SECTION 410: ACCOUNTING FOR CAPITAL ASSETS

OVERVIEW
The City defines capital assets, for the purposes of capitalization, as a purchased or otherwise acquired piece of equipment, vehicle, furniture, fixture, capital improvement, or land or an addition to buildings or infrastructure. In accordance with GASB standards, capital assets also include intangible assets lacking physical substance that are used in District operations such as computer software, permits, and other items that are nonfinancial in nature (bonds, securities, investment instruments, and investment contracts are not considered capital assets or intangible assets). Under GASB requirements, intangible assets must either confer on the City specific legal rights (e.g.

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a permit or water rights) or be capable of being divided from the City and sold to another party. The cost or value of any such acquisitions must be $5,000 or more per discrete item with an expected useful life greater than one year. Purchases of multiple items are aggregated into a single item for capitalization purposes when the items purchased are attached or assembled together into a single item and are not expected to be disassembled during the expected useful life of the item, except for maintenance purposes.

Infrastructure acquired from district developers is recorded when an offer of dedication is accepted and capitalized using amounts in the offer of dedication, which is an estimate. These asset dedications are grouped assets and are based on the description in the offer of dedication.

Additions or improvements that significantly extend the useful life or substantially increase the operating efficiency or capacity of an asset are capitalized. Other related costs that only enable an asset to meet its original estimated useful life or operational efficiency are considered maintenance expenditures in the period incurred.

The Finance Division will record all items requiring capitalization. All fixed assets are valued at cost, or estimated cost, if actual cost is not available. Contributed fixed assets are recorded at estimated fair market value at the time received. The Fixed Asset System will be updated at least annually in conjunction with the annual audit.

ACQUISITION
During the budget process, planned capital asset acquisitions are budgeted in designated “capital outlay” expenditure accounts (object codes beginning with the number 7). The assets are actually acquired during the year according to the procedures specified in the City’s purchasing policies, with the ultimate expenditure booked to one of the capital outlay expenditure accounts.

After the end of the fiscal year, the Finance Director or designee reviews capital outlay expenditure accounts and other accounts which may contain capital assets and makes appropriate adjustments to capitalize the assets by moving them into balance sheet accounts (in the case of the utility enterprise funds) or prepares worksheet adjustments for the financial statement reporting process to reflect the assets as capitalized on the government-wide financial statements (in the case of governmental funds).

DEPRECIATION
Depreciation, a measure of the exhaustion of economic resources, is an allocation of the cost of a fixed asset over its useful life. Though it is important to include an allowance for replacement of fixed assets in our budgeting process, we need to use caution when using depreciation expense as recognized on our financial statements to determine a reserve for replacement cost. This is because depreciation expense is based on the historical cost of the assets when they were originally placed into service.

It is not adjusted for inflation, market conditions, changes in the City’s capacity needs, or changes in technology since the time an asset was placed into service that could Item 8.2
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significantly impact the replacement cost of an asset. It is also based on an estimated useful life of an asset that is difficult to determine with precision at the time an asset is purchased.

The City maintains a depreciation schedule in Excel to track its capital assets and calculate depreciation expense. After the end of each fiscal year in preparation for the annual audit of the financial statements, the Finance Director or designee determines all capital assets that were added or disposed of during the year, updates the depreciation schedule, double-checks the calculation of depreciation using check formulas, reconciliations, and/or other methods, and finalizes the calculation. In adding assets to the depreciation schedule, care should be exercised to include as much detail on the cost of asset components as is reasonably practicable so that portions of a significant project that are expected to be replaced at different times can be removed from the depreciation schedule separately when appropriate. Estimated useful lives are assigned to the various classes of fixed assets as follows:

Fixed Asset Class
Estimated Useful Life
(in Years)
Vehicles, equipment and machinery 2 – 10
Structures and improvements 10 – 50
Infrastructure
Road system network
Pavement 40
Curbs and gutters 50
Sidewalks 50
Medians 50
Traffic signals 30
Streetlights 40
Fixed Asset Class
Estimated Useful Life
(in Years)
Bridges 75
Trails - asphalt 40
Trails- concrete 50
Utility Infrastructure
In-ground Pipes 60
Manholes 60
Catch basins 5
Detention basins 5

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SECTION 420: CONTRIBUTIONS/DEDICATIONS OF CAPITAL ASSETS FROM OTHERS

OVERVIEW
Under the City’s Master Plan and Master Acquisition and Reimbursement Agreement (MARA), and conditions of approval attached to final maps, developers in the City are obligated to construct certain capital assets (primarily infrastructure and community facilities) upon the occurrence of certain events and then transfer those assets to District control and ownership subject to the City’s procedures for accepting such assets. The City’s policies and procedures are designed to reduce the City’s risk of incurring costs due to defective assets and to ensure proper accounting for these assets in accordance with generally accepted accounting principles.

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AGREEMENT ON ASSETS TO BE CONSTRUCTED/FINAL MAP
Prior to beginning any development, a developer must have a final map approved by the City City Council showing the development plan. In order to obtain the final map, the developer works with an appropriate engineer on the City’s engineering staff to agree to conditions of approval that call for installation of specific public facilities and infrastructure and enters into subdivision improvement agreement(s) and/or off-site improvement agreement(s) that give specific details on the public facilities to be constructed by the developer as a condition of approval. The conditions of approval commit the City to accepting the public facilities and/or infrastructure subject to specified conditions. The conditions of approval, subdivision improvement agreement(s), and/or off-site improvement agreement(s) are approved by the City Council concurrently with approval of the final map.

PLANS
After approval of the final map, the developer submits detailed improvement plans to the City’s Engineering Department on the facilities/infrastructure to be constructed. These plans are sufficiently detailed that a construction contractor could use them to construct the assets. The Engineering Department or its consultants review the plans for compliance with the City’s standards and specifications. If they meet with District approval, a District engineer then signs the plans and returns them to the developer.

CONSTRUCTION
The developer engages appropriate contractors to begin construction according to the improvement plans signed by the City’s engineer. Throughout the construction process, the City’s engineers or consultants inspect the construction to ensure it is being done according to plan.

COMPLETION AND DEDICATION
When construction is completed, a District Engineer or consultant engaged by the City performs a final inspection using a checklist for this purpose. Once the inspector is satisfied that the completed asset meets District requirements, s/he writes a letter to the City stating that the developer has met the City’s requirements and recommending acceptance. The Engineering Department then prepares an Offer of Dedication and Dedication Agreement specifically describing the assets to be dedicated and providing the estimated total cost of the assets, as well as a Certificate of Acceptance and presents these documents to the Finance Department and the City Manager. The City’s City Manager signs the documents and routes them to the Finance Department, which will deliver them to the developer. The developer will then record the change in Item 8.2
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ownership at San Joaquin County. From this point on, the City assumes responsibility for operation and maintenance of the asset. The signed offers and certificates of dedication are then scanned by the administrative staff and placed in the Offers of Dedication folder under MHCSD Shared Directories.

ACCOUNTING
At the time of dedication, the assets become the property of the City and therefore must be added to the capital asset balances reported on the City’s financial statements. If the asset contributed is included under the City’s Transportation Impact Fee (TIF), Community Facilities Fee (CFF), or utility infrastructure programs, the asset will be recorded on the financial statements at the certified cost of the asset, with an offsetting entry to the long-term debt associated with the applicable type of program. If the certified cost of such an asset is not yet available, the asset will be recorded based on an engineering estimate and then adjusted to the certified cost when that becomes available. If the asset is not covered under one of these programs, the capital asset will be recorded to an income statement account as a contribution. If the asset is in one of the utility funds (water, sewer, and stormwater), the entry will be made in the Tyler Incode 10 system by the Administrative Services Director or Finance Director. If the asset is not related to an enterprise fund, the receipt of the dedication will be recognized for financial reporting purposes under the Finance Department’s procedure for recording government-wide financial statements.

SECTION 430: INVENTORY OF FIXED ASSETS AND NONCAPITALIZED ITEMS

OVERVIEW
Performing periodic inventory checks of the City’s fixed assets and other designated non-capitalized items that are nonetheless valuable is a part of the City’ stewardship of public resources and fiscal accountability. The inventory accomplishes two objectives:

1. Improving the accuracy of the City’s financial reporting by ensuring that assets that are damaged or no longer in use are removed promptly from the City’s depreciation schedule and general ledger system, where applicable.

2. Ensuring that property purchased with District funds remains in the possession and control of the City, is properly cared for, and is used for District purposes.

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Items to be Inventoried
The inventory lists that are verified on an annual basis should include all items listed on the City’s capital asset and depreciation schedule.

Inventory Procedure

1. Following the adoption of the City’s budget each year, the Finance Department will circulate a set of lists to all Department Managers that collectively comprise all items to be inventoried as described in the above section.

2. Each Department Manager will verify that all of the items listed on his or her list:
a. Are functioning as intended. If there is any damage, the damage will be noted.
b. Are located either on the City property or are in the custody of District employee outside of District property for an appropriate business purpose.
c. Continue to be used for District business purposes.

3. Completed lists will be returned to the Finance Department by July 31 of each year.

4. The Finance Department may select items on the list to independently verify.

SECTION 440: SURPLUS PROPERTY

OVERVIEW
It is financially advantageous and fiscally prudent for the City to dispose of surplus personal property in a manner that maximizes revenue and converts idle equipment and materials to revenue, thereby recovering funds for other uses.

Surplus personal property includes plant and office equipment, vehicles, machinery, furniture, fixtures, consumable supplies, scrap, junk and other goods and materials no longer usable or needed by the City.

LEGISLATIVE POLICY
In accordance with Mountain House Community Services District Code of Ordinances MH-2-2202 and MH-2-2203(g), the City Manager, in his/her capacity as Purchasing Item 8.2
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Agent, is responsible for the sale or disposal of District-owned personal property not required for public use.

ADMINISTRATIVE POLICY
This policy shall apply to all sales and dispositions of surplus District-owned personal property.

1. Department heads are responsible for identifying property to be surplused and reporting all surplus property to the Purchasing Agent. The Purchasing Agent is responsible for determining the fair market value of such property.

2. The Purchasing Agent or designee is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property or consumable supplies having a fair market value of ten thousand dollars ($10,000.00) or less in the manner they deem most appropriate and cost-effective, consistent with State of California statutes and District policies described herein.

3. Disposal of surplused property with an estimated fair market value exceeding ten thousand dollars ($10,000.00) per item requires approval of the City Council .

With Board approval, the Purchasing Agent is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property having a fair market value in excess of $10,000.00 in the manner they deem most appropriate and costeffective, consistent with State of California statutes, District policies described herein, and Board direction.

4. Methods of transfer and disposal include transfer to another department, trade-in, return to manufacturer, sale, or donation.

5. Appropriate methods of sale include public auction, public sales, or sealed bids.

Public auctions and sales may be conducted by District staff or the City may contract with a professional auctioneer, dealer, or on-line auction site. Sealed bids must be solicited for the sale and the property shall be sold to the highest responsible bidder.

6. No District official, officer or employee shall purchase, or be financially interested in any purchase, of surplus property.

7. Surplus property may be donated to any other public agency or charitable organization. “Public agency” means the State or any agency or subdivision thereof, any city, county, special district, or school district. “Charitable organization” means an organization that has been granted tax exempt status under Section 501(c)(3) of the Internal Revenue Code.

8. Should any surplus item fail to be sold at public auction or sale or by sealed bid, the City may donate the item to a public agency or charitable organization in lieu of sending materials to landfill.

9. All surplus property is disposed of “as is” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered unless expressly authorized by the City Council .

10.Disposal of surplused computer equipment will comply with the following conditions:

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a. All licensed software will be removed from computers b. All electronic files will be deleted
c. Computers may be reloaded with operating system software only if legal
d. The City will not guarantee the current or future working condition of the equipment
e. The City will not provide technical assistance with the set-up, repair or operation of the equipment

11.Non-working electronic or universal wastes may not be sold or transferred.

Devices containing mercury such as gauges, thermostats, sphygmomanometers, and thermometers may not be sold and must be managed in accordance with California statutes.

SECTION 500:BUDGET POLICIES AND PROCEDURES

INTRODUCTION
The purpose of this section is to describe the City’s budget policies and procedures.

Areas currently covered include:
• Overview of the City’s budget process
• Budget amendment requests
• Reappropriation policy for operating programs and capital improvement plan projects
• Monitoring budget performance—monthly expenditure reports and comprehensive annual financial report
• Accounting for completed capital improvement plan (CIP) projects Item 8.2
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SECTION 510: BUDGET POLICIES AND ASSUMPTIONS
Balanced Budget
The City’s budgets must always be technically balanced, in that estimated resources available to finance the budget must equal or exceed budgeted expenditures or uses of funds. In addition, the City also strives to always adopt a structurally balanced budget, in which current operating expenses are financed solely by current year revenues, or, in unusually poor economic conditions, by reserves set aside for stabilization. Debt and existing fund balance should generally only be used to provide resources to finance capital acquisitions that will benefit the City over a period of time.

Funds Budgeted and Not Budgeted
The City’s budget includes all funds of the City except for developer funds. These funds are not budgeted because expenditures are reimbursed by developers pursuant to agreements and it is difficult to predict the amount of developer activity that will occur in a given fiscal year.

Budgetary Basis of Accounting
The budget is adopted on the modified accrual basis of accounting for all funds, including the utility enterprise funds, because the modified accrual basis more closely Item 8.2
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approximates cash flow and is thus more useful for budgeting purposes than the full accrual basis. Under the modified accrual basis, revenues are budgeted in the period when they are expected to be earned, but only to the extent that the earned revenue is expected to be received during the period or within 60 days after the end of the period.

SECTION 530: BUDGET PREPARATION TIMELINE AND PROCEDURES Date Procedure Individuals
Involved
January 15 The Finance Department will develop the projected payroll and benefits budget based on anticipated
positions in the upcoming fiscal year, salaries, and
benefit costs. The Finance Department will also
develop revenue projections for the upcoming fiscal
year for any revenues that are not department
specific. The Finance Department will submit this
information to the City Manager for review and
discussion.

Finance
Department
January 31 The Finance Department sets up proposed budget input in the City’s OpenGov system for the
upcoming fiscal year and makes it available for
department managers to begin logging in and
entering the data.

Finance
Department
January 31 The City Manager reviews the projected payroll and benefits budget and projected District-wide
revenues and provides revisions to the Finance
Department.

City Manager
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Date Procedure Individuals
Involved
February 17 Department managers complete the budget form within OpenGov for the upcoming fiscal year,
including both a projection of current fiscal year
spending as well as the budget requested by each
line item for the fiscal year. Department managers
will include notes explaining any significant
changes anticipated from the prior year.

Department Managers will also include a
discussion of goals for the upcoming year and
identify objective measures that can be used to
gauge the accomplishment of these goals.

Department
Managers
February 24 Department managers identify and submit a
detailed Capital Improvement Plan budget to the
Finance Department.

Department
Managers
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Date Procedure Individuals
Involved
February 15-
March 10
The Finance Department will review the budget
requests submitted by Department Managers for the
following:

1. Do the projected amounts of expenditures
for both the current fiscal year and the
upcoming fiscal year appear reasonable in
comparison to the prior year and when
considering the balances on open POs?

2. Has the Department Manager included
detailed notes explaining the content of
budget line items, calculation of estimated
figures, and any significant changes for the
prior year?

3. Does the budget address conditions known
to the Finance Department that would be
expected to have an impact on budgeted
amounts for the upcoming year (e.g. known
increases or decreases in contract pricing for
services required, changes in circumstances
that will result in increased or decreased
cost)?

4. Do the budgeted figures represent an
efficient use of District resources?

5. Are the performance measures identified by
the Department Managers appropriate
measures of the Department’s progress
toward its goals?
The Finance Department will return budgets to
Department Managers for clarification by February

15. Finance
Department
March 25 Department managers respond to all requests for clarification from the Finance Department.

Department
Managers
March 25-
April 10
The Finance Department will evaluate the
information presented by Department Managers
and compile a complete proposed budget document
for the City. This budget document will be
submitted to the City Manager for review.

Finance
Department
April 22 The City Manager reviews and provides and
revisions to the proposed budget document
developed by the Finance Department.

City Manager
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Date Procedure Individuals
Involved
First
Wednesday in
May
The Finance Department will publish a complete
proposed budget document in the board package for
the first board meeting in May, incorporating
changes from the City Manager, if any.

Finance
Department
Second
Wednesday in
May
The Finance Department and City Manager will
present the proposed budget to the City Council for
a first hearing at the first City Council meeting in
May. The City Council will evaluate the budget
and give direction to staff regarding any changes
desired to the proposed budget.

Finance
Department, City
Manager, City
Council
Late May If desired, the City Council may schedule
additional hearings or study sessions on the
proposed budget.

City Council ,
Finance
Department,
City Manager,
Department
Managers
First
Wednesday in
June
The Finance Department will incorporate changes
requested by the City Council into a revised budget
document and publish the revised document in the
Board package for the first City Council meeting in
June.

Finance
Department
Second
Wednesday in
June
Assuming satisfactory changes were made, the City
Council will adopt the proposed budget at the first
City Council meeting in June.

City Council
June 30 Using the Excel worksheet presented to the City Council , the Finance Department will import the
final adopted budget into the Tyler Incode 10
system. The Finance Department will verify that
the totals from the imported budget match those
adopted by the City Council through check totals
and spot checks.

Finance
Department
90 days from
budget
adoption
Within 90 days from the date of budget adoption,
the Finance Department will complete a review of
the budget and submit it for consideration under the
Government Finance Officers’ Association’s
Distinguished Budget Presentation Award Program.

Finance
Department
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SECTION 540: BUDGET ADJUSTMENTS AND AMENDMENTS
Exceeding Budget Prohibited
Expenditures in excess of the established budget for a line item are prohibited. The Finance Department will return unpaid any requests for payment or requisitions for purchase that exceed a budgeted line item. Originating departments must complete an Appropriation Adjustment Request (AAR) to adjust budged line items. The following details the level of authority granted for budget adjustments.

Department Managers
Department managers may adjust the budget under the following circumstances:
• The adjustment does not involve a payroll account, and; • The adjustment reallocates non-payroll expenditures so that the total amount of budgeted expenditures within the department and fund does not increase.

City Manager
The City Manager may adjust the budget under the following circumstances:
• The adjustment reallocates non-payroll expenditures so that the total amount of budgeted expenditures within each fund group reported as a single fund in the City’s audited financial statements does not increase. If the adjustment involves a new fund that has not yet been part of an audited financial report, the fund will be considered part of the fund grouping (if any) in which the Finance Department plans to report the fund in the next set of published financial statements for the City for purposes of this requirement. The City Manager may not approve the adjustment if it impacts capital projects approved by the Board in the CIP budget.

City Council
Any budget changes not falling within the authority of a Department Manager or the City Manager as defined above must be approved by the City Council in the form of a formal budget amendment. Changes that must be submitted to the City Council for approval include the following:
• Any change that increases total budgeted expenditures in a fund group reported as a single fund in the City’s audited financial statements.

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Personnel who need to initiate a budget amendment must submit an AAR to the Finance Department specifying the reasons of the budget change requested and the source of funds that will be used to cover any increased costs. The Finance Department will review the AAR to verify that sources of funds for the budget amendment are reliable and that the amendment is in accordance with District policy. If so, the Finance Department will forward the AAR to the City Manager for review. If the City Manager approves the AAR, the Finance Department will prepare a staff report and proposed resolution amending the budget to present to the City Council at the next regular City Council meeting. If the City Council adopts the budget amendment, the Clerk of the Board will sign the AAR and attach a copy of the approved budget amendment resolution, returning it to the Finance Department. The Finance Department will then enter the approved budget amendment into the Tyler Incode 10 system.

SECTION 550: FUND STRUCTURE AND CREATION AND CLOSURE OF FUNDS Objectives
The goals of the City’s fund structure are as follows:

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• Compliance with fund type definitions under generally accepted accounting principles (GAAP) for state and local governments and facilitating the efficient preparation of financial statements prepared in accordance with GAAP.
• Demonstrating accountability for restricted resources entrusted to the City. • Minimizing error and complexity by avoiding the creation of funds that are not needed to efficiently serve the objectives noted above.

Types of Funds
The City’s fund types and the fund number mask for each type (XXX) are summarized below:

Governmental Funds (financed primarily by taxes, grants, and other nonexchange revenue)
General Fund (1XX) - The General Fund is the general operating fund of the City. It is used to account for all financial resources and transactions except those required to be accounted for in another fund. It includes certain special accounts that are used to accumulate resources for designated purposes.

Special Revenue Funds (2XX) – Special revenue funds may be created where the foundation of the fund consists of revenues that are either restricted or committed for purposes other than capital projects or debt service.

Debt Service Funds (3XX) – Debt service funds consist of funds with resources dedicated to debt service either by external restriction or internal policy. The resources may be restricted, committed or assigned to debt service as specified in the GASB 54 fund balance policy.

Capital Projects Funds (6XX) – Capital projects funds consist of funds with resources dedicated to the acquisition or construction of capital assets either by external restriction or internal policy. The resources may be restricted, committed or assigned for capital projects as specified in the GASB 54 fund balance policy.

Enterprise Funds (financed primarily by charges for services to users, 5XX) Creation and Closure of Funds
The Administrative Services Director or Finance Director may create or close funds as deemed necessary to accomplish the objectives of this policy.

SECTION 560: FUND BALANCE POLICY UNDER GASB 54
Overview
Under Governmental Accounting Standards Board Statement No. 54 (GASB 54), the fund equity/fund balance in a governmental fund is classified into a maximum of 5 categories based on the extent to which restrictions (which may be natural, legal, or Item 8.2
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internal) limit the City’s ability to use the fund balance. As the City has adopted GASB 54, this policy is intended to summarize those requirements and clarify the City’s policy regarding fund balance where GASB 54 gives the City discretion to adopt such policies and how the policy applies in the City’s circumstances.

Scope of this Policy
As noted above, GASB 54 applies to governmental funds. It does not apply to enterprise funds (e.g. water, sewer, and stormwater), where the classifications of fund equity are somewhat different.

Definitions
Fund Equity – A fund’s equity is generally the difference between its assets and its liabilities.

Fund Balance – An accounting distinction is made between the portions of fund equity that is spendable and nonspendable. These are broken up into five categories:

1. Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or endowments (permanent funds).

2. Restricted fund balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers or in the City’s enabling legislation. Examples include may include grants, developer in-lieu fees, and taxes and assessments legally restricted to particular purposes.

3. Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally.

4. Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund.

5. Unassigned fund balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose.

Policy
Restricted Fund Balance – The City receives the following types of revenues which it considers restricted. Residual amounts of these revenues, after being used for Item 8.2
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allowable purposes, are reflected as restricted fund balance in accordance with this policy:

1. Special Taxes Restricted to Uses Narrower than General District Use – The City receives multiple special tax revenues derived from parcel taxes on property within the City that are restricted to purposes narrower than the general needs of the City, such as those special taxes received and restricted for public safety, parks, recreation, and community facilities, and public works.

2. Developer Impact Fees – The City collects impact fees on building permits issued that are restricted to be used to pay for District facilities and infrastructure, such as the Transportation Impact Fee (TIF) and Community Facilities Fee (CFF).

Committed Fund Balance - The City Council is the City’s highest level of decisionmaking authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a formal motion or resolution approved by the City Council at the City Council ’ meetings. The motion or resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.

Assigned Fund Balance - The City Council has authorized the City Administrator as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy.

Minimum Unassigned Fund Balance - It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 3 months of general fund expenditures in a fiscal year.

If unassigned fund balance falls below the goal or has a deficiency, the City will adjust expenditures to assure that the minimum unassigned balance is maintained.

Order of Expenditure of Funds - When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly restricted tax revenues, discretionary funds set aside by specific action of the City Council , and unassigned fund balance), the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds.

SECTION 570: DEBT MANAGEMENT POLICY

OVERVIEW
This Debt Management Policy (the “Debt Policy”) was approved by the Mountain House Community Services District City Council on February 14, 2018. The Debt Policy may be amended by the Board as it deems appropriate from time to time in the prudent management of the City’s debt.

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This Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1, 2017, and shall govern all debt undertaken by the City.

The City hereby recognizes that a fiscally prudent debt policy is required in order to:
• Maintain the City’s sound financial position.
• Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
• Protect the City’s credit-worthiness.
• Ensure that all debt is structured in order to protect both current and future taxpayers, ratepayers and constituents of the City.
• Ensure that the City’s debt is consistent with its planning goals and objectives and capital improvement program or budget, as applicable.

POLICY
A. Purposes For Which Debt May Be Issued
i. Long-Term Debt. Long-term debt may be issued to finance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and operated by the City.

1. Long-term debt financings are appropriate when the following conditions exist:
a. When the project to be financed is necessary to provide basic services.
b. When the project to be financed will provide benefit to constituents over multiple years.
c. When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
d. When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring.

2. Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.

3. The City may use long-term debt financings subject to the following conditions:
a. The project to be financed must be approved by the City Council .
b. The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%.
c. The City estimates that sufficient revenues will be available to service the debt through its maturity.
d. The City determines that the issuance of the debt will comply with the applicable state and federal law.
ii. Short-term debt. Short-term debt may be issued to provide financing for the City’s operational cash flows in order to maintain a steady and even Item 8.2
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cash flow balance. Short-term debt may also be used to finance shortlived capital projects; for example, the City may undertake lease-purchase financing for equipment.

B. Types of Debt
The following types of debt are allowable under this Debt Policy:
• General obligation bonds
• Bond or grant anticipation notes
• Lease revenue bonds, certificates of participation and lease-purchase transactions
• Other revenue bonds and certificates of participation • Tax and revenue anticipation notes
• Land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes • Tax increment financing to the extent permitted under state law • Conduit financings, such as financings for affordable rental housing and qualified 501c3 organizations
The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.

Debt shall be issued as fixed rate debt unless the City makes a specific determination as to why a variable rate issue would be beneficial to the Issuer in a specific circumstance.

C. Relationship of Debt to Capital Improvement Program and Budget The City is committed to long-term capital planning. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.

The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.

The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.

The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.

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The City shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its general fund.

D. Policy Goals Related to Planning Goals and Objectives The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Policy and to implement policy decisions incorporated in the City’s annual operations budget.

It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.

When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations i. Minimum net present value debt service savings equal to or greater than

3.0% of the refunded principal amount, and
ii. Present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.

E. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

The City will periodically review the requirements of and will remain in compliance with the following:
• Any continuing disclosure undertakings under SEC Rule 15c2-12, • Any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and • The City’s investment policies as they relate to the investment of bond proceeds.

Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The Issuer will submit a requisition only after obtaining the signature of the City Manager or his/her designee.

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SECTION 580: INTERFUND LOAN POLICY

PURPOSE
This policy documents requirements and responsibilities to be followed regarding borrowing between funds of the Mountain House Community Services District.

The purpose of this policy is to ensure that all interfund loans are appropriate, properly documented, and not established to the detriment of the fund issuing the loan.

POLICY
Interfund loan recommendations and agreements must include the loan amount, an identified repayment source and the date or timing of repayment.

The agreements may include an interest component that equals the investment earnings the fund would have received had the loan not occurred, with the following exceptions:

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• Amounts loaned from the Water, Wastewater and Stormwater funds to other District funds must include an interest component. • Amounts loaned to Developer funds must include an interest component.

When it is determined that interest will be paid by the borrowing fund to the lending fund, the amount of interest to be charged will be calculated using the rate investment rate earned by the San Joaquin County Treasury.

The City Council must approve by resolution all interfund loans.

Payments made on outstanding loans shall be reflected in the proposed and adopted operating budget and in the annual financial statements. The annual financial statements will also include the loan amount, term, rate of interest, and amount of interest due on the total amount of the loan.

DEFINITION
Interfund loans are loans from one District fund to another District fund for a designated purpose.

Interfund loans may be made for the following reasons:
• To offset timing differences in cash flow
• To provide financing for interim financing in conjunction with obtaining long-term financing
• For short-term borrowing in place of external financing • To provide operating capital for utility funds while the customer base increases
• For other needs as deemed appropriate by the City Council Interfund loan monies may only be used for the purpose identified in the authorizing resolution. Records of interfund loan transactions will be maintained in accordance with generally accepted accounting principles and will reflect the balances of loans in every fund affected by such transactions.

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SECTION 600: INVESTMENT POLICY OVERVIEW

OVERVIEW
The purpose of the guidelines is to set forth standards, responsibilities and procedures for the prudent investment of pooled cash and cash held by fiscal agents.

POOLED CASH
Except for amounts held by fiscal agents in accordance with bond ordinances, the Master Acquisition and Reimbursement Agreement, and other special deposits as approved by the City Council , all of the City’s cash is deposited in the San Joaquin County Treasury. The County maintains a cash and investment pool that is available to all for funds for which the County is the depository, for the purpose of increasing interest earnings through investment activities. Funds held in the County’s investment pool are invested in accordance with the County’s Investment Policy, which is presented in Section 610, Investment Policy for Pooled Cash. The “OUTSIDE AGENCIES” section of the County’s policy provides that all agencies placing funds in the County pool must comply with the County’s investment policy.

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CASH WITH FISCAL AGENTS
All of the City’s restricted investments are held by fiscal agents in various accounts for the purpose of paying principal and interest on and establishing reserves for outstanding bonds for paying down the pledged notes payable. Cash with fiscal agents is invested in accordance with applicable bond ordinances and agreements with developers.

SECTION 610: INVESTMENT POLICY FOR POOLED CASHSTS
2021 INVESTMENT POLICY

COUNTY OF SAN JOAQUIN
Submitted by Phonxay Keokham, CPA Treasurer-Tax Collector Approved by the Board of Supervisors on December 8, 2020

1.0 POLICY
The Investment Policy establishes the criteria for the prudent investment of pool participants' surplus treasury funds and outlines the policies for maximizing the efficiency of the San Joaquin County (County) cash management system. In addition, the Investment Policy governs the deposit, safekeeping, and investment of all funds under the control of the County Treasurer (Treasurer), as well as all related transactions and investment activities. It does not apply to bond funds or other affiliated public agency assets that reside outside of the County' s Investment Pool.

The Investment Policy shall be reviewed annually by the Treasurer with the Treasury Oversight Committee. Any modifications made thereto must be approved by the County Item 8.2
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Board of Supervisors and adopted by resolution. No person may engage in an investment transaction except as provided under the terms of this policy. The Treasurer shall establish written investment policy procedures.

2.0 OBJECTIVE
The objective of the Investment Policy is to enhance the economic status of all Investment Pool participants while protecting their surplus treasury funds. The County operates its investment program under the "Prudent Investor Standard" set forth by Government Code Section 53600.3. This affords the County a broad spectrum of investment opportunities provided that the investment is deemed prudent and is allowable under current legislation of the State of California.

The criteria and priority for selecting investments are as follows:
(a) Safety. Safety of principal is the foremost objective of the County's investment program. The safety and risk associated with an investment refers to the potential loss of principal and/or interest. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the Investment Pool. (b) Liquidity. Liquidity refers to the ability to access cash at any time with minimal risk of losing some portion of principal or interest. The Investment Pool will remain sufficiently liquid to enable the County to meet all anticipated operating requirements.

Liquidity is an important investment quality considering an unanticipated need for funds may arise.
(c) Yield. Yield is the potential dollar earnings that an investment can provide and is also referred to as the rate of return. Return on investment is of secondary importance compared to the safety and liquidity objectives described above.

3.0 DELEGATION OF AUTHORITY
The County Board of Supervisors, as permitted under Government Code 53607, delegates the responsibility to invest or reinvest the funds of the County or to sell or exchange securities so purchased, to the Treasurer who shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and their procedures in the absence of the Treasurer.

4.0 GENERAL CONSTRAINTS
The following criteria represents the general framework within which the County's Treasury investment program shall be conducted:
(a) The laws of the State of California and the Prudent Investor Standard shall be the primary standards by which all County Treasury investments are transacted. (b) Surplus treasury fund management and investment transactions are the responsibility of the Treasurer.
(c) The Treasurer strives to maintain the level of investment of all funds as near 100 percent as possible through daily projections and cash flow forecasting.

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(d) The basic premise underlying the County's Investment Policy is to ensure that the pooled funds are always safe and available when needed. (e) Surplus treasury funds are all funds which are not required to meet the bank's demands on the Treasury to redeem warrants or cover other County disbursement obligations on any given day.

5.0 CONSTRAINTS SET BY GOVERNMENT CODE
Government Code Sections 53601 and 53635 impose restrictions on the investments of government entities. All such restrictions are to be adhered to in their entirety. In addition, the Treasurer may impose further restrictions to investments if the Treasurer deems such action appropriate. Such action is deemed appropriate with the following section listing the only authorized investments of the County.

6.0 AUTHORIZED INVESTMENTS
The County's authorization to invest is limited to the securities categorized below. All securities must be U.S. dollar denominated. The restrictions specified in Government Code Sections 53601 and 53635 apply unless otherwise stated. Authorized investments are as follows:
(a) United States Treasury Bills, Notes, and Bonds (Maximum of 100%) United States Treasury Bills, Notes, and Bonds for which the full faith and credit of the United States are pledged for the payment of principal and interest. Zero Coupon issues of these types of investments are authorized. There is no percentage limit on the total dollar amount that may be invested in this category.
(b) Obligations issued by a Federal Agency or a U.S. Government Sponsored Enterprise (GSE) (Maximum of 100%)
Federal Agency issues of the Federal National Mortgage Association (also known as Fannie Mae and/or FNMA), and the Federal Home Loan Mortgage Corporation (also known as Freddie Mac and/or FHLMC), the Federal Farm Credit Bank System (also known as FFCB), and the Federal Home Loan Bank (also known as FHLB).

Debentures, Zero Coupon, Discount Notes, or Floaters of the above issuers are authorized. There is no percentage limit on the total dollar amount that may be invested in this category.
(c) State Obligations and California Local Agency Bonds (Maximum of 100%) Registered Treasury Notes, Bonds or Warrants as defined in Government Code Section 53601. There is no percentage limit on the total dollar amount that may be invested in this category.
(d) Local Agency Investment Fund
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Local Agency Investment Fund (LAIF) of the State of California is an investment alternative created pursuant to Government Code Section 16429.1 for California' s local governments and special districts. LAIF purchases securities under the authority of Government Code Section 16430 and 16480.4. The Treasurer may invest up to the maximum amount permitted by LAIF. Due diligence must be conducted on an annual basis.
(e) California Asset Management Program
California Asset Management Program (CAMP) is a California Joint Powers Authority, short- term, highly liquid money market account organized pursuant to Government Code Section 6509.7. The CAMP pool is a permitted investment under Government Code Section 53601(p). The CAMP deposit limit is calculated at 10 percent of their total portfolio. Due diligence must be conducted on an annual basis. (f) Repurchase Agreements (Maximum of 100%)
Term repurchase agreements may be collateralized by either U.S. Treasury Securities or by any U.S. Federal Agency security.

Regardless of maturity, repurchase agreements must be collateralized at 102 percent (market value plus accrued interest). Repurchase agreements shall only be made with dealers with assets in excess of $500 million and having either the highest commercial paper rating, of A or higher rating for the issuer' s debt, if any, as provided by a nationally recognized statistical- rating organization (NRSRO). There is no percentage limit on the total dollar amount that may be invested in this category.

All Repurchase Agreements with brokers/dealers will be done through a "Tri-Party Custodian Agreement" that has been approved, in writing, by the Treasurer.

All Repurchase Agreements with commercial banks will be governed by a Public Securities Association (PSA) agreement that has been approved , in writing, by the Treasurer.
(g) Banker' s Acceptances (Maximum of 40%)
Bills of Exchange or Time Drafts (referred to as Banker ' s Acceptances). Banker's Acceptances may not exceed 40 percent of the investments and no more than 30 percent may be invested in the Banker' s Acceptances of one commercial bank. The limit for each issuer may be specified in the Treasurer's " Approved Banker' s Acceptance Issues" .
(h) Medium Term Notes (Maximum of30%)
Corporate Debentures (Medium Term Notes), other than those of security or insurance firms that have a rating in the highest or second highest categories of a NRSRO. The maximum maturity of such issues is three years. Floaters of the above issues are authorized as long as the maximum maturity does not exceed three years. Medium Item 8.2
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Term Notes must be issued by corporations organized and operating within the United States. Medium Term Notes may not exceed 30 percent of the Investment Pool. (i) Time Deposits (Maximum of 30%)
Certificates of Deposits issued by nationally or state-chartered bank, savings association, federal association, or state-licensed branch of a foreign bank. The bank must have a branch or office in the County. The bank must have a rating in the highest or second highest categories of an NRSRO. The limit for each issuer is specified in the Treasurer' s "Approved Negotiable Certificates of Deposit List." Certificates of Deposit may not exceed one year maturity and may not exceed 30 percent of the Investment Pool. The collateralization level will be 110 percent of market value for Certificate of Deposits.

G) Commercial Paper (Maximum of30%)
Commercial Paper is an unsecured, short-term debt instrument issued by a corporation.

Commercial Paper must have the highest categories of an NRSRO. The maximum maturity of commercial paper is 270 days. The limit for each issuer is specified in the Treasurer's "Commercial Paper Approved List". Commercial Paper may not exceed 30 percent of the Investment Pool.
(k) Mutual Funds (Maximum of 20%)
Mutual Funds, as defined in Government Code Section 53601 that consist only of those investments authorized by the Investment Policy. Mutual Funds may not exceed 20 percent of the investments. A thorough investigation of the fund is required prior to investing and due diligence must be conducted on an annual basis. (1) Bank Deposits (Maximum of 10%)
Bank Deposits are interest-bearing active deposits in a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company. These deposits must be properly collateralized at 110 percent in accordance with Government Code Section 53652. Deposits with any one depository cannot exceed 10 percent of the Investment Pool.
(m) Specific Securities (Maximum per Approval)
Specific securities as specified in the ordinance, resolution, indenture, or agreement for monies pledged to the payment or security of bonds or other indebtedness as governed by Government Code Section 53601(m) must receive written approval from the Treasurer.

7.0 DIVERSIFICATION
It is the policy of the Treasurer to diversify the pooled funds. Investments are diversified to minimize the risk of loss resulting in an overconcentration of assets in a specific Item 8.2
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maturity, issuer , or class of security. Diversification strategies shall be established by the Treasurer and periodically reviewed.

8.0 MATURITY STRUCTURE
The maturity of investments, excluding investments that have been specifically matched to a bond issue maturity, are subject to the following restrictions at the time of purchase:
(a) A minimum of25 percent of the entire Investment Pool is to mature within 60 days.
(b) A minimum of 50 percent of the entire Investment Pool is to mature within one year.
(c) A minimum of 75 percent of the entire Investment Pool is to mature within three years.
(d) A maximum of 25 percent of the entire Investment Pool may mature within three to five years.

If for any reason the Investment Pool is not in compliance with the maturity percentages, all new investments will be restricted to a maturity of 60 days or less until compliance is restored.

The Treasurer must give written approval for all purchases of securities with a maturity of one year or longer.

9.0 DEALER APPROVAL
All financial institutions used for the placement of investments, must be approved by the Treasurer in writing. The creditworthiness of all financial institutions will be reviewed by the Treasurer. The Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the County.

The Treasurer will not approve any broker, brokerage, dealer, or securities firm that has, within the past two years, made a political contribution in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board, to the Treasurer, any member of the Board of Supervisors, or any candidate for these offices.

All brokers are provided with the updated Investment Policy on an annual basis.

10.0 COMPETITIVE BIDDING
Bids for any investment shall be taken from a minimum of two banks or broker/dealers.

Awards will be made to the highest offer, giving consideration to safety, liquidity, a balanced investment pool, and diversification. If two bids for a similar investment security are unavailable, then the second bid may be for another investment security with a similar maturity.

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11.0 SWAPS AND TRADES
Securities may be swapped and traded for other eligible securities after calculating the gain between the buy and sell candidates in the transaction and approval by the Treasurer.

12.0LOSSES
Generally, losses are acceptable on a sale before maturity and may be taken if reinvested proceeds will earn an income flow with a present value higher than the present value of the income flow that would have been generated by the original investment.

13.0 SAFEKEEPING
Securities purchased from broker/dealers shall be held in third party safekeeping by the trust department of the County's bank or other designated third-party custodian and in the County' s name. The third-party custodian shall be required to issue a safekeeping statement listing specific instrument, rate, maturity, and other pertinent information. No securities will be held by the broker/dealer from whom they were purchased.

Safekeeping of Repurchase Agreements and Collateralized Non-Negotiable Certificates of Deposit are stipulated in the section titled " Authorized Investments of the County".

14.0 CONFIRMATION
All investment confirmations are to be reviewed for conformity with the original transaction. Discrepancies are to be reported to the Treasurer.

15.0 INTERNAL CONTROLS
The Treasurer shall establish internal controls to provide reasonable assurance that the investment objectives are met and to ensure that the assets are protected from loss, theft, or misuse. The Treasurer shall also be responsible for ensuring that all investment transactions comply with the Investment Policy and Government Codes.

The Treasurer shall establish a process for daily, monthly, quarterly, and annual reviews and the monitoring of investment program activity. Daily, the Treasurer or authorized Treasury personnel
shall review the investment activity, as well as corresponding custodial and commercial bank balances and positions for compliance with the Investment Policy and guidelines.

The County Auditor-Controller's Office or the contracted external auditor shall conduct an annual audit of the investment program' s activities.

16.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with investment risk constraints and cash flow needs.

The Treasurer' s investment strategy is both passive and active. Given this strategy, the basis used by the Treasurer to determine whether market yields are being achieved Item 8.2
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shall be to identify a comparable benchmark to the investment duration. (i.e. 90-day U.S. Treasury Bill, six-month U.S. Treasury Bill, Average Fed Funds Rate). Benchmarks may be modified over time based on changes in market conditions or cash flow requirements.

17.0 CREDIT FOR INTEREST EARNINGS
Interest earnings from the Investment Pool shall be credited to participating entities each quarter. The credit is computed based on the average daily cash balance of funds on deposit during the quarter in the County Treasury.

In accordance with Government Code Section 27013, authorized costs of investing , depositing, banking, auditing, reporting or otherwise handling or managing funds will be deducted from the total interest earnings prior to the interest earnings apportionment.

18.0 DIRECTED INVESTMENTS
The Treasurer may allow special directed investments for Tax and Revenue Anticipation Note (TRANs) proceeds or other special purposes. The Treasurer will work with the entity to make a single directed investment. For proceeds between $10 million and $50 million, that investment will be in a
U.S. Treasury Bill. For proceeds in excess of $50 million, the investment can be in either a U.S. Treasury Bill or a U.S. Treasury Note. Upon the maturity of the investment, all funds will be deposited into the Investment Pool. Any funds from the TRANs sale, not included in the investment will be placed in the Investment Pool. The charge for the investment will be $5,000, which is estimated to cover the actual expenses of the offices of the Treasurer and the County Auditor- Controller. These expenses may include paying agent, safekeeping, establishing of entity funds, tracking, and recording the investment. The Treasurer may negotiate a different charge if it is cost justified and appropriate. Directed investments will be separate from the Investment Pool.

19.0 OUTSIDE AGENCIES
Agencies not required to deposit funds with the County may place funds in the Investment Pool with the approval of the Treasurer. All agencies must comply with this Investment Policy. It is anticipated that most funds will be withdrawn from the Investment Pool by a warrant. Wire transfers must be arranged with the Treasurer.

20.0 WITHDRAWALS
The Treasurer has determined that withdrawals less than $10 million will not negatively impact the structure of the Investment Pool. The Treasurer requires 24-hour notice on withdrawals of$1 million to $10 million, a minimum seven-day notice on withdrawals between $10 million and $25 million, and a 30-day notice for amounts exceeding $25 million. The Treasurer may reduce or waive the required notice. The Treasurer also reserves the right to work with any agency on the timing of a withdrawal exceeding $10 million if that withdrawal might affect the stability or predictability of cash flow in the County Treasury. The Treasurer may refuse any withdrawal above $25 million or any Item 8.2
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series of withdrawals in one month which exceed $25 million which may negatively impact the stability and predictability of cash flow in the County Treasury.

21.0 REPORTING
The Treasurer shall provide a monthly report to the County Board of Supervisors, County Administrator, County Auditor-Controller, and the County Treasury Oversight Committee itemizing all Treasury investments by investment type, institution, date of maturity, amount of investment, rate of interest, and current market value. Securities will be valued based on information from either the trustee, broker, the Wall Street Journal, or other sources approved by the Treasurer. The market value for Certificates of Deposit, Repurchase Agreements of less than 30 days, CAMP, and LAIF will be at cost. The report will include the weighted average maturity of the investments in the Treasury Pool, and a statement denoting the ability of the local agency to meet its expenditure requirements for the next six months.

22.0 COUNTY TREASURY OVERSIGHT COMMITTEE
The County Treasury Oversight Committee (Committee) will review and monitor the Investment Policy on an annual basis. The Committee shall require an annual audit to be conducted to determine the County Treasury' s compliance with the law and the Investment Policy.

The Committee shall not direct individual investment decisions, select individual investment advisors, brokers, dealers, or impinge on the day-to-day operations of the County Treasury.

A member may not be employed by an entity that has contributed to the campaign of a candidate for the office of local Treasurer, or contributed to the campaign of a candidate to be a member of a legislative body of any local agency that has deposited funds in the County Treasury, in the previous three years or during the period that the employee is a member of the Committee (Government Code Section 27132.1).

A member may not directly or indirectly raise money for a candidate for local Treasurer or a member of the governing board of any local agency that has deposited funds in the County Treasury while a member of the Committee (Government Code Section 27132.2).

A member may not secure employment with, or be employed by, bond underwriters, bond counsel, security brokerages or dealers, or financial services firms, with whom the Treasurer is doing business during the period that the person is a member of the Committee or for one year after leaving the Committee (Government Code Section 27132.3).

Committee meetings shall be open to the public and subject to the Ralph M. Brown Act.

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23.0 INDEMNIFICATION
The standard of care to be used by the County' s officers or employees in all investment transactions shall be the Prudent Investor Standard (Government Code Section 53600.3), which is expanded as follows:

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

The above criteria are established as the standard for professional responsibility and shall be applied in the context of managing the Investment Pool. Investment officers acting in accordance with the Investment Policy shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion, and appropriate action is taken to control adverse developments.

24.0 ETHICS AND CONFLICT OF INTEREST
No officer, employee, or member of the Committee may directly or indirectly accept or solicit from any person, corporation, or group having a business relationship with the Treasurer or Treasury- related functions, any rebate, kickback, or anything of an economic value as a gift, gratuity, or honoraria.

No officer or employee of the Treasurer shall, outside of working hours, engage in any profession, trade, business, or occupation, which is incompatible or involves a conflict of interest with his/her duties as a County officer or employee.

Investment officials shall refrain from personal business activity that may conflict with proper execution and management of the policy and the investment program or which could impair their ability to make impartial decisions. Investment officials must provide public disclosure required under Government Code Section 87203, et seq.

The Treasurer and designated employees must annually file a Form 700 (Statement of Economic Interest) in accordance with the County' s Conflict-of-Interest Code.

25.0 BUSINESS CONTINUITY PLAN
In the event the Treasurer or authorized staff is unable to conduct normal business operations, the Treasurer has an agreement with the custody bank for a daily sweep of surplus funds into an interest-bearing account as well as the ability to transfer additional funds to money market and liquid accounts until normal operations are restored.

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percentages, as stated in the Investment Policy, will be temporarily suspended to allow for continued operations.

GLOSSARY
Accrued Interest: The amount of interest that is earned but unpaid (not yet received) since the last interest payment date.

Banker's Acceptance (BA): A highly-liquid draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Broker: A broker brings buyers and sellers together for a transaction for which the broker receives a comm1ss10n.

CAMP: A California Joint Powers Authority which offers a short-term, highly-liquid money market account organized pursuant to Government Code Section 6509.7.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

Collateral: Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Commercial Paper (CP): The short-term unsecured debt of corporations.

Credit Risk: The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in security transactions buying and selling securities for his own account.

Diversification: Dividing investment funds among a variety of securities offering independent returns to avoid excessive exposure to any one source of risk.

Federal Home Loan (FHLB): GSEs with wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district bank.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac): A United States GSE, charged by Congress in 1970 , to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle-income Americans. The Item 8.2
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FHLMC familiarly known as Freddie Mac, purchases, guarantees and securitizes mortgages to form mortgage-backed securities.

Federal National Mortgage Association (FNMA or Fannie Mae): FNMA was chartered under the Federal National Mortgage Association Act in 1938. It is a GSE. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae is a private stockholder-owned corporation and its purchases include a variety of mortgages and second loans. FNMA's securities are also highly-liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Government Sponsored Enterprise (GSE): A type of financial services corporation created by the Federal Government to facilitate borrowing in specific sectors. GSE bonds carry the implicit backing of the Federal Government.

Interest: The amount earned while owning a debt security and generally calculated as a percentage of the principal amount.

Internal Controls: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met.

Investment Policy: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities.

Liquidity: The speed and ease with which an asset can be converted to cash without substantial loss of value.

Local Agency: County, city, city & county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation.

Local Agency Investment Fund (LAIF): The LAIF is an investment alternative for California's local government and special districts authorized under Sections 16429, 1, 2 and 3 of the California Government Code (the "Code"). The LAIF is managed by the State Treasurer's Office, with oversight by the Local Agency Investment Advisory Board.

All securities in LAIF are purchased under the authority of Code Sections 16430 and 16480.4. The State Treasurer's Office receives all securities on a delivery versus payment basis using a third-party custodian. All securities are purchased at market, with market valuation conducted monthly.

Market Value: The price at which a security can be traded.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase or reverse repurchase agreements that establishes Item 8.2
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each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The final date upon which the principal or stated value of a security becomes due and payable.

Medium Term Notes (MTN): Debt securities issued by a corporation or depository institution with a maturity ranging from nine months to five years. The term " mediumterm notes" refers to the time it takes for an obligation to mature and includes other corporate debt securities originally issued for maturities longer than five years, but which have now fallen with the five-year maturity range. MTNs issued by banks are also called " bank notes."
Money Market: The market in which short-term debt instruments (Treasury Bills, discount notes, commercial paper, and banker' s acceptances) are issued and traded.

Mutual Funds: An investment company that pools money and can invest in a variety of securities , including fixed-income securities and money market instruments.

Nationally Recognized Statistical Rating Organization (NRSRO): Firms that review the creditworthiness of the issuers of debt securities, and express their opinion in the form of letter ratings (e.g. AAA, AA, A, BBB, etc.) The primary rating agencies include Standard & Poor's Corporation; Moody's Investor Services, Inc.; Fitch Investors Service; Duff & Phelps Investment Service; Thompson Bank Watch, and International Bank Credit Analyst.

Portfolio: A collection of securities held by an investor.

Price: The amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date.

Prudent Investor Standard: A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." Principal: The face value or par value of an investment.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on the bond or the current income return.

Rating: Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies use to give relative indications of bond and note creditworthiness.

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Repurchase Agreement (RP or REPO): The purchase of securities, on a temporary basis, with the seller' s simultaneous agreement to repurchase the securities at a later date at a specified price that includes interest for the buyer's holding period. In essence, this is a collateralized investment whereby the security " buyer" lends the " seller" money for the period of the agreement.

Risk: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

Rule G-37 of the Municipal Securities Rulemaking Board: Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities business.

Safekeeping: A service to bank customers whereby securities are held for protection by the bank in the customer's name.

Safety: In the context of investing public funds, safety relates to the preservation of principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

Swap: A swap is any financial transaction that involves the simultaneous purchase of a security and the sale of another for the purpose of enhancing an investor's portfolio.

Swap transactions of interest to California public investors include portfolio swaps and interest rate swaps.

Tax and Revenue Anticipation Notes (TRANs): Notes issued in anticipation of receiving tax proceeds or other revenues at a future date.

U.S. Government Agency Securities: Debt Securities issued by U.S. GSE and federally related institutions. These government agencies include: Federal Horne Loan Banks (FHLB); Federal Loan Mortgage Corporation (FHLMC, or "Freddie Mac"); Federal National Mortgage Association (FNMA or "Fannie Mae"); Federal Farm Credit Banks (FFCB); Farmer Mac.

Treasury Bills: Non-interest-bearing discount securities with maturities under one year issued by the U.S. Treasury to finance the national debt.

Treasury Notes: Interest-bearing obligations of the U.S. Treasury with maturities ranging from two to 10 years from date of issue.

Treasury Bonds: Interest-bearing obligations issued by the U.S. Treasury with maturities that range from 10 to 30 years from date of issue.

U.S. Treasury Securities: Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the U.S. and overseas. The U.S. Treasury issues both discounted securities and fixed coupon notes and bonds.

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Weighted Average Maturity (WAM): The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.

Yield: The annual rate of return on a debt investment computed as though held to maturity expressed in percentages.

Zero-Coupon Bonds/U.S. Treasury Strips: A bond which represents ownership of a single coupon or principal payment due on a U.S. Treasury bond. “Zeros” or “strips” mature at face value at a specified date in the future and make no payments until that date. They always sell at a discount from face value.

SECTION 620: INVESTMENT POLICY FOR SPECIAL DEPOSITS

OVERVIEW
This Investment Policy for Special Deposits (the “Deposit Investment Policy”) was approved by the Mountain House Community Services District City Council on March 14, 2018. The Board reaffirmed this policy on June 12, 2019. The Deposit Investment Policy may be amended by the Board as it deems appropriate from time to time in the prudent investment of the City’s special deposits.

Policy Statement - The City is guided by three objectives in its investment of public funds. In order of priority those objectives are:

1.1. Safeguarding of principal.

1.2. Ensuring that investments satisfy the liquidity needs of the City.

1.3. Obtaining an optimal rate return on available assets, commensurate with an appropriate level of risk.

2. Scope - This investment policy applies to all special deposit funds not required for the immediate operating needs of the City and are accounted for in the City’s monthly financial report.

3. Objectives: The priority ranked objectives of the City’s investment activities shall be:

3.1. Legality. Investments shall only be made in securities legally permissible by the California Government Code, Sections 53635, 53635.2 et seq.

3.2. Safety. Investments shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio. To attain this objective, diversification is required. Investments must be made in securities of high quality to avoid credit risk and loss of principal.

3.3. Liquidity. The investment portfolio must remain sufficiently liquid to enable the City to meet all foreseeable operating requirements.

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3.4. Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return, taking into consideration policy objectives and cash flow characteristics of the portfolio.

4. Delegation of Authority - The City Council is responsible for the management and oversight of the investment program. Day to day management responsibility for the investment program is delegated to the City’s City Manager, who will ensure that the investment program is in accord with the Board’s directives. The City Manager shall be responsible for all transactions undertaken and will establish a system of controls to regulate the activities of appropriate staff members.

5. Prudence - Investments shall be made with time relevant judgment and care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, and not for speculation, but for investment, considering the probable safety of principal as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio with aims to safeguard the principal and maintain the liquidity needs of the agency. The prudent investor standard states that when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City.

6. Borrowing for Purposes of Making Investments - Management is prohibited from the practice of borrowing for the sole purpose of making investments.

7. Authorized Investments and Limits - The City Manager or his/her designee may only invest funds in the following secure and reliable permitted investments:

7.1. Investment in the California Local Agency Investment Fund (LAIF). Funds shall be placed in LAIF as alternative liquid investments under this policy.

7.2. Shares of Beneficial Interest issued by diversified management companies, otherwise known as Mutual Funds, investing in the securities and obligations as authorized by the California Government Code, sections 53601 et seq.

7.3. United States Treasury Bills, Notes, Certificates of Indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

7.4. Savings Accounts or Certificates of Deposit issued by a nationally or statechartered bank, or savings association fully insured by the FDIC or FSLIC.

7.5. Deposit of funds in the County of San Joaquin Treasury Investment Pool.

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7.6. U.S. Federal Agency or United States government-sponsored enterprise obligations, participations or other instruments issued by the Government National Mortgage Association (GNMA), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Association (FHLMC), the Federal Farm Credit System (FFCB), and the Federal Agricultural Mortgage Company/Farmer Mac (FAMCA).

7.7. Medium Term Corporate Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state operating within the United States. Notes eligible for investments under this subdivision shall be rated “A” or better by a nationally recognized rating service.

8. Maximum Maturities - To the extent possible, investments shall be made to match anticipated cash flow requirements. Furthermore, no investment with a term in excess of five years may be made.

9. Internal Control - As part of the City’s annual independent audit, the investment program shall be reviewed for appropriate internal controls that provide assurance of compliance with policies and procedures.

10. Reporting - The City Manager shall provide the City Council with a quarterly report of investment activity verifying that the investment portfolio is in compliance with the City’s investment policy. The report will also include a statement indicating the City’s ability to meet its expenditure requirements for the ensuing six months or to provide an explanation as to why sufficient funds shall not or will not be available.

11. Ethics and Conflicts of Interest – Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

12. Investment Policy Review - The City Council shall review the investment policy annually. The Board shall accept and approve the investment policy and any changes.

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SECTION 630: BANK, INVESTMENT, AND COUNTY TREASURY RECONCILIATION Objectives
The objectives of this bank and treasury reconciliation policy are as follows:
• Ensure the City’s books are kept with reasonably current balances for all cash and investment accounts owned by the City with reconciliations completed monthly by the end of each month for the preceding month. • Promptly identify and resolve errors made either by the bank, County Treasury, or investment custodian or errors made on the City’s books. • Promptly identify and resolve unauthorized activity occurring in the City’s accounts.

Segregation of Duties
Best practices in internal control assign the responsibility for reconciling a bank account to an individual who neither has the authority to authorize disbursement from the account nor makes entries in the accounting system impacting the account. The ability to fully segregate this function depends on staffing level and cost-benefit considerations.

The Finance Department will consider these best practices as well as the City’s business needs when assigning an individual to the bank reconciliation function.

County Treasury
The combined balance of cash and investments in the San Joaquin County EFS system in all funds beginning with 478 will be reconciled on a monthly basis to the City’s general ledger balances in the 1111 object accounts using the pooled cash report defined for this purpose. The following describes the detailed procedure to be followed.

1. By the 15th day of each month, the Finance Department personnel responsible for reconciling the County Treasury pooled cash account will obtain the County Treasury balance from the San Joaquin County EFS system and pull a pooled cash report from the Tyler Incode 10 system for the end of the previous month.

2. The reconciler will compare the activity posted between the City’s general ledger system and the County, listing the exact amount of each item causing a difference. The reconciler will compare vendor names in the County system to the names posted in the City’s general ledger system. The reconciler may write off trivial amounts that are not worth the time it would take to research. The reconciler may employ any or all of the following procedures to identify the difference:
a. Verifying that all County-initiated journal entries (“SSTs”) and property tax revenues posted by the County have been posted to the City’s GL as well.

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b. Verifying that all utility refund batches sent to the County for payment have been recorded in the GL for the month.
c. Determining whether any accounts payable check batches or deposits sent to the County for processing and posted to the City GL near the end of the previous month were not posted by the County to the EFS until after the end of the month.
d. Comparing detailed transaction lists from the City GL and the County EFS and marking off items that are accounted for in both lists to identify the items that are different.
e. Re-running the pooled cash report for the last month that had previously been reconciled and comparing it to the report that was originally used when that reconciliation was done to determine if a back-posting to a previous month in the GL may have occurred.

Mountain House City CouncilJune 11, 2025

Mountain House City Council
June 11, 2025