June 11, 2025
2025/26 Budget
Fiscal
Year
Budget
Schedule
Date Description
November 5, 2024 Budget preparation meeting
November 12, 2024 Distribution of forms and instructions November 12, 2024 Department budget meeting
December 20, 2024 Personnel request submittals
January 3, 2025 Department operating budget submittals
January 10, 2025 CIP budgetsubmittals
January 17, 2025 Public safety budget meeting
April 25, 2025 City Manager review
May 9, 2025 Distribution of draft budget to the City Council May 14, 2025 Budget Workshop
June 11, 2025 City Council Budget Adoption
July 1, 2025 Start of new fiscal year
• Incorporation Transition: Managing a smooth
shift from district to city governance with
aligned operations and services.
• Water Resources: Prioritizing long-term water
reliability and quality in response to ongoing
drought conditions.
• Development: Supporting well-planned mixeduse and commercial growth that enhances livability and the local economy.
• Public Safety: Expanding resources and adopting
new technologies to keep the community safe
and responsive.
• Transportation: Improving roads for all users
and working with partners to expand public
transit and ease congestion.
• Culture & Communication: Strengthening trust
through transparent communication and
collaboration between Council,staff, and
residents.
• Fiscal Responsibility: Ensuring long-term
financial health while honoring the city’s unique
character and values.
• Quality of Life: Investing in parks, cultural
amenities, and public spaces to support a
vibrant, inclusive community.
Strategic Plan
Budget
Principles
Structurally Balanced Budget
Multi-Year Financial Projections included in Budget Process User Fees and Charges Set at the Cost of Service
One-Time Resources Used Only for One-Time Purposes
Capital Projects Fund for both Capital and Future Operating Costs Best Practicesfor Fund Balance and Operating Reserves
Stable Revenue Sources used to Fund Operations
Fiscal Impact Statementsfor all Staff Reports
Operating Budget Excellence Award FY - 2024/25
Mountain
House
2025
6 • By the end of 2025, Mountain House will
have over 8,000 homes built!
• Nearly half of those homes were built
before 2010
• A lot of our streets, parks, and lights are
getting older
- The majority are over 15 years old. That
means it's time to start thinking about
repairs and updates
Total Completed Housing Units
4,455 4,684
5,335
6,008
6,438
6,984
7,330 7,386
7,684
8,084
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Accepted
Improvements
Mountain House
Built
Environment
– FY 2025/26
WaterInfrastructure
• Raw water basin
• 3 water booster pump stations
• Water Treatment Plant and Tanks
• 122 miles of water mains
• 3,311 water valves
• 844 fire hydrants
Wastewater & Stormwater Infrastructure
• Expanded Wastewater Treatment Plant
• 2 lift stations
• 88 miles of sanitary sewer lines
• 1,639 sanitary sewer manholes
• 98 miles of stormwater lines
• 480 storm drain manholes
• 2,420 catch basins
Transportation & Roadways
• 220 lane miles of paved roadways
• 198 miles of sidewalks
• 47 miles of sound walls
• 19 signalized intersections
Lighting & Streetscape
• 3,150 streetlights
Community Buildings & Parks
• 19 City buildings/ 155,943 sq ft
• 12 parks/playgrounds
Landscaping & Trees
• 11.9 million sq ft. of landscaping
• 24,000 trees
ES
Housing & Infrastructure Needs
0.69 ACRES
2UNITS
2.9UNITS/ACRE
SIDEWALKS
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
SIDEWALKS
CURBS
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
SIDEWALKS
CURBS TREES
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
SIDEWALKS
CURBS
UTILITYPOLES
TREES
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
SIDEWALKS
CURBS
UTILITYPOLES
TREES
TRAFFICLIGHTS 0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastr
Gucture Needs
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRAFFICLIGHTS 0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastr
Gucture Needs
SIDEWALKS
CURBS
UTILITYPOLES
TREES
WATER
STREETLIGHTS
TRAFFICLIGHTS 0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRAFFICLIGHTS
WATER
SEWER
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
WATER
SEWER
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
STORM TRAFFICLIGHTS 0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
STORM
WATER
SEWER
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRAFFICLIGHTS
PAVING
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
STORM
WATER
SEWER
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRAFFICLIGHTS
PAVING
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing & Infrastructure Needs
Housing& ServiceNeeds
0.69 ACRES
2UNITS
2.9UNITS/ACRE
POLICE
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
POLICE
FIRE
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
POLICE
FIRE
SCHOOLS 0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
SCHOOLS
POLICE
FIRE
TRASH
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
SCHOOLS
TRASH
POLICE
FIRE
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
FIRE
STORM
PAVING
WATER
POLICE
SEWER
SIDEWALKS
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRASH
SCHOOLS
TRAFFICLIGHTS
0.69 ACRES
2UNITS
2.9UNITS/ACRE
Housing& ServiceNeeds
FIRE
STORM
PAVING
WATER
POLICE
SEWER
UTILITYPOLES
TREES
STREETLIGHTS
TRASH
SCHOOLS
TRAFFICLIGHTS
Housing&Infrastructure + ServiceNeeds
0.69 ACRES
2UNITS
2.9UNITS/ACRE
$
$
FIRE
STORM
PAVING
WATER
POLICE
SEWER
CURBS
UTILITYPOLES
TREES
STREETLIGHTS
TRASH
SCHOOLS
TRAFFICLIGHTS
0.69 ACRES
13UNITS
18.8UNITS/ACRE
$ $
$
$
$ $ $
$$ $ $$
Housing&Infrastructure + ServiceNeeds
Agency
Allocation of the 1% Tax
Rate
Educational Revenue Augmentation 26.1%
Lammersville Unified Schools 19.2%
City of Mountain House 18.8%
County General 17.1%
Byron-Bethany Irrigation 10.7%
S.J. Delta Community College 3.6%
County Library 1.6%
County Office of Education 1.5%
SJC Mosquito Abatement 0.7%
Tracy Cemetery 0.5%
SJC Flood Control 0.2%
Road District 5 0.0%
Property Tax Allocations
County Sales Tax Rates:
- San Joaquin County: 7.75%
- Contra Costa County: 8.75%
- Alameda County: 10.25%
Mountain House has one of the
lowest sales tax rates in the whole
region!
Comparison of Sales Tax Rates
City Sales Tax Rate
City of Livermore 10.25%
City of Stockton 9.00%
City of Lathrop 8.75%
City of Brentwood 8.75%
City of Tracy 8.25%
City of Manteca 8.25%
City of Lodi 8.25%
City of Mountain House 7.75%
City of Escalon 7.75%
City of Ripon 7.75%
Budget Factors and
Assumptions
• Workers will get a pre-negotiated raise to help with
the cost of living
• We will be adding people to ensure we meet the service needs of the community
• Around 300 new homes will be built in Mountain House
• Water and sewer prices will increase moderately—this is part of a 5-year plan
• A 2.69% increase in special assessment taxes
• Some building fees will increase to ensure cost-recovery Fund Amount
General Fund $ 13,933,693
Special Assessment Funds 17,500,901
Special Revenue Funds 3,301,700
Utility Funds 24,265,387
Restricted Funds 14,011,949
TOTAL $ 73,013,630
• General Fund: $13.9 million
- (used for everyday city services)
• Special Assessment Funds: $17.5 million
- (covers cost of roads, medians, parks
maintenance and public safety)
• Special Revenue Funds: $3.3 million
- (money that must be used for specific things)
• Utility Funds: $24.3 million
- (from water,sewer, and garbage bills)
• Restricted Funds: $14 million
- (funds tied to specific projects such as new
parks, roads and other facilities)
• Total: $73 million
How Much Money The City Will Get
Fund Personnel
Services
Operations &
Maintenance
Capital
Outlay Debt Service Total
General
Funds $2,371,836 $2,278,807 $- $- $4,650,643
Special
Assessment
Funds
3,496,792 20,255,904 - - 23,752,696
Special
Revenue
Funds
2,123,636 2,836,049 - - 4,959,685
Utility Funds 2,201,040 9,085,409 - - 11,286,449
Restricted
Funds - 250,700 - - 250,700
Debt Service - - - 26,202,207 26,202,207
Capital
Projects - - 8,775,444 - 8,775,444
Total $10,193,304 $34,706,869 $8,775,444 $26,202,207 $79,877,824 • Paying staff: $10.2 million
- (for city workers like admin, maintenance, and
recreation)
• Operations & maintenance: $34.7 million
- (for running services, fixing roads, maintaining
parks, etc.)
• Capital projects: $8.8 million
- (to build new thingslike parks or city buildings
and long-term fixes to existing infrastructure)
• Debt payments: $26.2 million
- (paying back developer debt and money we
borrowed for construction of new facilities)
Total Spending: About $79.9 million
How the City Plans to Spend Money
Estimated 6/30/2025 Fund Balance
General & Related Fund
61,327,321
Revenues 34,736,294
Expenditures (33,363,024)
Net Revenues & Expenditures 1,373,270
CIP Transfer (2,944,000)
Utility Transfer (1,490,549)
Transferfrom CFF Fund for Program
Expenditures 2,450,640
Net Transfers (1,983,909)
06/30/2026 Fund Balance 60,716,682
Change in Fund Balance (610,639)
General Fund islike the city’s main piggy bank.
• We startedwith $61 million saved up
• We think we’ll collect close to $35 million this year • We’ll spend about $33.3 million on regular things like staff and services
• That means we’ll have about $1 million left over
Then we will transfersome money to other funds:
• Send $2.9 million to help build and rebuild facilities (like parks and roads)—this is called the Capital Improvement Program
• Help pay for utilities infrastructure upgrades with $1.5 million • Access $2.5 million of restricted funds for eligible projects After all that, we’ll end the year with about $60.7 million—just a little less than we started with.
General Fund – What’s Left at the End
Revenues 11,782,229
Expenditures (13,259,549)
Net Revenues & Expenditures (1,477,320)
General Fund Transfer 1,490,549
06/30/2026 Fund Balance 13,513,546
Change in Fund Balance 13,229
Estimated 6/30/2025 Fund Balance 13,500,317
Utility Funds
Here’s what’s happening this year:
• We started with $13.5 million
• We expect to bring in about $11.8 million
• We plan to spend about $13.3 million
• That means we’re short about $1.5 million
These additional costs are being transferred from the
General Fund to cover these needed facility upgrades.
At the end of the year, we’ll still have about $13.5
million—almost the same as when we started.
• In order to ensure that the Utilities can be selfsufficient in the future, a rate update will be implemented in the upcoming fiscal year.
Utility Funds – What’s Left After Paying the Bills
Estimated 6/30/2025 Fund Balance
Restricted Funds
32,056,903
Revenues 14,011,949
Expenditures (17,828,093)
Net Revenues & Expenditures (3,816,144)
Transferto General Fund for Program
Expenditures (2,450,640)
06/30/2026 Fund Balance 25,790,119
Change in Fund Balance (6,266,784)
Restricted Funds are saved for special uses only. We can’t spend them on just anything—they have rules. Most of
these are development fees set aside to pay roads, parks and other City facilities.
Here’s what’s happening:
• We started with $32 million
• We expect to get about $14 million this year
• We plan to spend about $17.8 million
$2.5 million is going to the General Fund to pay for new City facilities
By the end of the year, we’ll have about $25.8 million left in this fund.
• That’s a drop of about $6.3 million, but it’s expected—we’re using this money for the projects it’s meant for.
Restricted Funds – What We Can and Can’t Use
Change in General & Related Fund Balance (610,639)
Change in Utility Fund Balance 13,229
Change in Utility Fund Balance (6,266,784)
Total Change in Fund Balances (6,864,194)
How much money we’ll have left in each account at
the end of the year:
• The General Fund balance will change about one
percent.
• The Utility Fund will stay almost the same (up
about $13,229)
• The Restricted Fund will go down by about $6.3
million
When you add it all up, the city’s total funds will go
down by about $6.9 million this year.
That might sound big, virtually all the funds are
going into projects that will increase the City’s
capital assets and provide benefit to the
community.
Change in Fund Balances
Decrease in Restricted Fund Balance
Major factors in $6.3 million decrease in Restricted Fund balance • $3.9 million Corporation Yard improvements
• $350 thousand in Town Hall & Library improvements
• $2.5 million in CFF reimbursements to General Fund for program expenditures
Cityhood
Budget Impacts
New Money
Coming In
We’re getting new sources of money that we didn’t get before. • $1.6 million from our increased share of property taxes • $480,000 from taxes when home are sold
• $85,000 from sales tax
• $601,700 from the gas tax
• $600,000 from Measure K (a countywide transportation fund) • $2.1 million from building permit fees
All together, that’s over $5 million in new revenue helping support our growing service demands as a city
What We Added to the City This Year
• 300,000 square feet of new
landscaping (that’slike 5 football
fields)
• A new fire station (Fire Station No. 2)
• 150 new streetlights
• 24 miles of sidewalks
• 2,000 new trees
• 20 miles of new roads
• 200 catch basins to manage
rainwater
• 255 sewer manholes and 54 storm
drain manholes
• 111 new fire hydrants
• 1 new lift station to help move
wastewater
ELECTED OFFICIALS
Andy Su, Mayor
Councilmembers
Bernice King Tingle Matt Disko
Ronna Green Daniel Harrison
City Attorney
Redwood Public Law
CITIZENS
OF
THE CITY OF MOUNTAIN HOUSE
City Auditor
Richardson & Company
City Clerk
City Manager
Steven Pinkerton
Legend
Elected
Council Appointed
City Manager Appointed
Contracted Services
Public Works
Director
Administrative
Services Director
Community Dev
Director
Operations and
Maintenance Building
Planning
Code Enforcement
Finance
Human Resources
Recreation
Information
Technology
Risk Management
Utility System
Operations
Law Enforcement
Fire & EMS
Library
Healthy Economy, Vibrant
Infrastructure & Sustainable
Environment
Neighborhood Engagement,
Community Programming and
Neighborhood Development,
Construction Management,
Economic Development,
Transportation Management ,
Land Acquisition and
Development
Effective Responsive &
Transparent Government
Driving Performance and
Innovation, Recruitment,
Customer Service, Accessible
Technology Implementation,
Information Dissemination,
Community Outreach
Safe Neighborhoods
Utility and Infrastructure,
Maintenance and Repair,
Hazardous Materials Control,
Fire Prevention, Safety
Education, Crime Prevention
and Mapping, Patrols, Traffic
Enforcement
Deputy
City Manager
Structure
Staff &
Contracted
Positions
Category Number of Positions
FY 2025/26
Administrative Department 31.7
Community Development Department 13
Public Works Department 11
Sheriff 10.5
Fire and Emergency Services 22.5
Rank Security 8
Garbage Disposal 17
Library Services 8.6
Utility Operations 16
Landscaping 26
Traffic Signal and Street Light Maintenance 6
Total 170.3
2023 Utility Revenue Bonds 42,775,000
Total Bonded Debt 198,790,000
Utility Subsidies Payable 15,424,097
Total Utility Debt 214,214,097
Utility Bonded Debt
Revenue Bonds Series 2019 A&B
Revenue Bonds Series 2020 A&B
28,390,000
127,625,000
36,965,000
62,635,335
TIF Debt
2021 Lease Revenue Bonds
DeveloperNotes Payable
Total TIF Debt 99,600,335
Mountain House could not have been created without debt.
When Public Improvements are completed, the City then
accepts the improvements and pays back the development
community as funds become available.
Utility Debt (water, sewer, etc.):
• We borrowed money through bondsin 2019, 2020, and
2023
• Total we owe: $214 million
Development Debt (for city growth):
• Financed through lease revenue bonds and developer
agreements
• Total we owe: $99.6 million
All of this debt is tied to capital improvements which then increase the City’s assets which benefit the community.
City Debt–What We Owe for Infrastructure Projects
Five-year plan
Includes over $23.55 million in projects:
• $6.84 million – Transportation
• $2.33 million – Landscape & Parks
• $5.88 million – Facilities & Equipment
• $2.90 million – Public Safety
• $5.60 million – Utilities
Funding sourcesidentified for first year projects
Future projectstotal $14.78 million
The city has a 5-year plan to build and improve city facilities called the Capital Improvement Program.
Here’s what we’re planning to spend about $23.5 million on:
• $6.8 million for roads and transportation
• $2.3 million for landscaping and parks
• $5.9 million for city buildings and equipment
• $2.9 million for public safety (like fire or police projects) • $5.6 million for utility upgrades(like water and sewer) We already know how we’ll pay for the first year’s
projects. Each year, we update the plan and allocate
additional funds.
What We Plan to Build – The Next 5 Years
Big Projects Coming
in 2025–26
•
•
•
•
•
•
•
• Arterial Landscape Improvement Program
Pedestrian and Traffic Safety
Bikeway Safety Improvements
Town Hall Emergency Generator Project
EV Charging Station Installation
Corporation Yard Improvements & Town Hall Expansion
Project
Playground & Park Improvement Program
Aquifer Storage and Recovery Project
• Approving the full budget for the 2025–26 year
• Ensuring we are staying within the spending limit
allowed by the state (called the Proposition 4 or Gann
limit)
Board Actions to Adopt Budget
• Approving the full budget for the 2025–26 year
• Setting the prices (fees) for services the city provides • Certifying how much certain neighborhoods are being charged • Updating the city’s rules for employees
• Updating how we manage and track money
• Approving a job description for a new Facility Manager • Ensuring we are staying within the spending limit
allowed by the state (called the Proposition 4 or Gann
limit)
Council Actions to Adopt Budget
Council Actions to Adopt Budget
• Resolution approving fiscal year 2025/26 budget with any Council approved changes
• Resolution establishing schedule of fees for services • Certification of assessments
• Resolution approving amendments to personnel policies and procedures manual
• Resolution approving amendments to the financial
management manual
• Resolution approving a job description for Facility Manager • Resolution establishing Proposition 4 transfer and
Appropriation Limit
52 Thank You!
Questions & Discussion
• Proposition 4 or Gann limit
• The District 2023/24 appropriation limit was $59,774,588 • Due to incorporation the District needed to transfer a percentage of the appropriation limit to the City
• 98.5% of the 2024/25 appropriation limit is transferring to the City and 1.5% is staying with the District
• The 2025/26 City appropriation limit is 68,752,656 ($34.3 million in revenues apply)
• The 2025/26 District appropriation limit is 1,046,995 ($491 thousand in revenues apply)
FY 2025/26 Appropriation Limit
Population Increase 1.0119 1.0463
CPCPI 1.0362 1.0644
Growth factor: 1.0485 1.1137
2024-2025 2025-2026
62,673,656 69,799,651
FY 2025/26
District Appropriation Limit 1,046,995
City Appropriation Limit 68,752,656
Average annual increase
• Lot sizes less than 6,000 sq ft $53.29
• Lot sizes greater than 6,000 sq ft $58.37
Increase per month
• Lot sizes less than 6,000 sq ft $4.44
• Lot sizes greater than 6,000 sq ft $4.86
2.69% CPI Increase to Residential Homes
2.69% CPI Increase to Residential Homes
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 9,893,689 58,078,039 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 9,893,689 60,716,682 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 25,659,877 85,451,670 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 6,682,084 9,942,922 Total Restricted Funds 32,056,903 14,011,949 - 13,596,649 6,682,084 25,790,119 Total Funds 118,105,983 73,013,630 32,341,961 79,877,824 32,341,961 111,241,789