Agenda packet, workshop — Mountain House City Council, May 14, 2026 (part 1 of 2)

SPECIAL CITY COUNCIL MEETING AGENDA
Thursday, May 14, 2026 at 05:30 PM
Town Hall Board Chambers
251 East Main Street, Mountain House, CA 95391
CITY COUNCIL
ANDY SU
Mayor
RONNA GREEN
Vice Mayor
Council Members
MATT DISKO DANIEL HARRISON BERNICE KING TINGLE

ADMINISTRATION
STEVEN J. PINKERTON
City Manager
JOHN BAKKER
City Attorney
MARGARET WIMBERLY
City Clerk
CALL TO ORDER AND ROLL CALL
PUBLIC COMMENT
Public comment will be taken on this item during discussion and prior to direction to staff.

Conduct a workshop on the Fiscal Year 2026/27 Operating Budget (The Draft Fiscal Year 2026/27 Budget is attached)

ADJOURNMENT
On April 8, 2026, 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.

1. 2.

3. 4.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget i
Table of Contents
INTRODUCTION..................................................................................................................... 1 ELECTED OFFICIALS & CITY MANAGER.................................................................................................. 2 BUDGET AWARDS ............................................................................................................................ 3 CITY MANAGER’S BUDGET MESSAGE ................................................................................................... 5 THE CITY ...................................................................................................................................... 16 PERSONNEL................................................................................................................................... 31 BUDGET GUIDE.............................................................................................................................. 36 BUDGET SUMMARY............................................................................................................. 48 BUDGETED REVENUES ..................................................................................................................... 49 GENERAL FUND REVENUES............................................................................................................... 50 SPECIAL ASSESSMENT FUND REVENUES .............................................................................................. 52 SPECIAL REVENUE FUND REVENUES ................................................................................................... 53 ENTERPRISE FUND REVENUES ........................................................................................................... 54 RESTRICTED FUND REVENUES ........................................................................................................... 55 BUDGETED EXPENDITURES ............................................................................................................... 57 FUND BALANCE SUMMARY .............................................................................................................. 59 DEBT SERVICE REVENUE & PAYMENTS ............................................................................................... 61 SUMMARY OF TRANSFERS ................................................................................................................ 64 FY 2026/27 BUDGETED TRANSFERS ................................................................................................. 65 FY 2026/27 EXPENDITURES BY FUND ............................................................................................... 66 FY 2026/27 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget ii
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 COMMUNITY DEVELOPMENT DEPARTMENT......................................................................................... 99 COMMUNITY DEVELOPMENT DEPARTMENT....................................................................................... 102 CODE COMPLIANCE DIVISION ......................................................................................................... 105 RECREATION DEPARTMENT ............................................................................................................ 106 RECREATION DEPARTMENT ............................................................................................................ 108 SERVICE DIVISION......................................................................................................................... 110 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 # 4 - PUBLIC WORKS FUND .......................................................................................... 131 DEVELOPMENT SERVICES FUND....................................................................................................... 132 GAS TAX FUND............................................................................................................................ 133 MEASURE K FUND........................................................................................................................ 134 LOCAL TRANSPORTATION FUND ...................................................................................................... 135 GRANT FUND .............................................................................................................................. 136 REGIONAL TRAFFIC IMPACT FEE ...................................................................................................... 137 WATER FUND.............................................................................................................................. 138 WASTEWATER FUND..................................................................................................................... 140 STORMWATER FUND..................................................................................................................... 142 LIGHTING & LANDSCAPING DISTRICT 1 FUND..................................................................................... 143 LIGHTING & LANDSCAPING DISTRICT 2 FUND..................................................................................... 144 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget iii LIGHTING & LANDSCAPING DISTRICT 3 FUND..................................................................................... 145 COMMUNITY FACILITIES DISTRICTS FUND.......................................................................................... 146 AFFORDABLE HOUSING FUND......................................................................................................... 147 DEBT SERVICE FUND..................................................................................................................... 148 CAPITAL IMPROVEMENT PROJECTS BUDGET...................................................................... 149 CAPITAL PROJECTS FUND............................................................................................................... 150 CIP PROJECTS BY FUNDING SOURCE ................................................................................................ 152 ARTERIAL LANDSCAPE IMPROVEMENT PROGRAM ............................................................................... 153 PEDESTRIAN AND TRAFFIC STUDY .................................................................................................... 154 TRAFFIC CALMING PROGRAM ......................................................................................................... 155 BIKE SAFETY IMPROVEMENTS ......................................................................................................... 156 PAVEMENT MANAGEMENT PROGRAM ............................................................................................. 157 EQUIPMENT REPLACEMENT............................................................................................................ 158 FLEET VEHICLES ........................................................................................................................... 159 NEW TRANSIT SERVICES ................................................................................................................ 160 EV CHARGING STATION................................................................................................................. 162 PARK RESTROOMS........................................................................................................................ 163 BUILDING REPAIR PROGRAM .......................................................................................................... 165 DOOR SECURITY AND LOCK SYSTEM CITYWIDE ................................................................................... 166 PLAYGROUND & PARK IMPROVEMENT PROGRAM............................................................................... 168 AQUIFER STORAGE AND RECOVERY PROJECT ..................................................................................... 170 ORION ENDPOINT INSTALLATION..................................................................................................... 172 UV SYSTEM COVER ...................................................................................................................... 173 APPENDIX.......................................................................................................................... 175 2023/2024 RESOLUTIONS ADOPTING BUDGET ................................................................................ 176 STRATEGIC PLAN.......................................................................................................................... 181 FINANCIAL POLICIES AND PROCEDURES............................................................................................. 204 DEBT SCHEDULES ......................................................................................................................... 314 PROJECTIONS .............................................................................................................................. 323 2026/27 FEE SCHEDULE............................................................................................................... 327 GLOSSARY................................................................................................................................... 328 INDEX ........................................................................................................................................ 336 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 1
Introduction
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 2
Elected Officials & City Manager
.

Steven J. Pinkerton
City Manager
Andy Su
Mayor
Matt Disko
Council Member
Ronna Green
Vice Mayor
Member
Daniel Harrison
Council Member
Bernice King Tingle
Council Member
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 3
Budget Awards

GOVERNMENT FINANCEOFFICERSASSOCIATION
Distinguished Budget
Presentation Award

PRESENTED TO
City of Mountain House
California
For the Fiscal Year Beginning
July 01, 2025
Executive Director
The Government Finance Officers Association (GFOA) presented a Distinguished Budget Presentation Award to the City of Mountain House, for its annual budget for fiscal year 2025/26. To receive the award, a governmental unit must publish a budget document that meets program criteria such as a policy document, operations guide, financial plan, and communications device.

We believe this fiscal year 2026/27 budget document conforms to program requirements. We will be submitting it to GFOA to determine its eligibility for another award.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 4
The California Society of Municipal Finance Officers (CSMFO) presented an Operating Budget Excellence Award to the City of Mountain House, for its annual for fiscal year 2025/26. To receive this award, a governmental unit must publish a budget document that meets program criteria such as a policy document, operations guide, financial plan, and communications device.

We believe this fiscal year 2026/27 budget document conforms to program requirements. We will be submitting it to CSMFO to determine its eligibility for another award.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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 2026/27. 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 2026/27 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, transferring 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 continues working with San Joaquin County and the State of California to transfer revenues and negotiate the cost of services to be provided since incorporation. Incorporation also brought several administrative processes in-house, including payroll, employee benefit administration, and business licenses.

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), Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 6
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 property 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 City continues to add new improvement areas to the CFD since its establishment.

The first series of bonds were issued in March 2025 in the amount of $40.13 million. The second, third, and fourth series of bonds were issued in June 2025 in the amount of $8.75 million, $6 million, and $5.8 million. The fifth series of bonds were issued in April 2026 in the amount of $23.2 million. The most recent bonds were issued May 2026 in the amount of $13.2 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 leasing units as well.

Sale and 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 permits have been issued for over half of the authorized total of 16,105.

In addition to the developments described above, the major expansion of the wastewater treatment plant was completed, Fire Station No. 2 has been completed, and Phase 2 of Central Community Park is underway and should be completed by this fall Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 7
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 require 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 240 building permits during fiscal year 2025/26 and it is estimated that the City will issue in excess of 300 residential building permits during fiscal year 2026/27. • 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 2026/27 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 3.

City of Mountain House | Fiscal Year 2026/27 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 “right-sizing” 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 2026/27. 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 2026/27.

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 • Park restrooms
• Ensuring an alternate water supply
Projects Pro 2026/27 EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 Total Roads 3,775,000 2,435,000 2,545,000 2,655,000 965,000 12,375,000 Vehicle & Equipment 1,500,000 1,450,000 150,000 150,000 150,000 3,400,000 Public Safety - 350,500 45,200 30,500 30,500 456,700
Public Works 3,725,000 825,000 375,000 825,000 375,000 6,125,000 Parks 1,100,000 380,000 380,000 380,000 380,000 2,620,000 Water System 1,590,000 380,000 340,000 340,000 340,000 2,990,000 Wastewater System 75,000 40,000 40,000 40,000 - 195,000 Stormwater System - 100,000 1,500,000 - - 1,600,000
TOTAL 11,765,000 5,960,500 5,375,200 4,420,500 2,240,500 29,761,700 Capital Improvement Projects
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 9

SELF-SUPPORTING UTILITY SYSTEMS
The fiscal year 2026/27 budget anticipates
the enterprise funds – water, wastewater,
and stormwater – will be operationally selfsufficient. The fiscal year 2026/27 budget shows a reduction in available Water Fund
balance to cover capital improvement
projects.

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 wastewater
enterprises, we conducted a rate study
during fiscal year 2021/2022 to determine
the appropriate rates needed to make the
enterprises self-supporting. 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 fifth year of the adopted plan and will increase rates in fiscal year 2026/27 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 increased the need of a utility rate study. This review is needed not only to ensure that utilities will be financially sustainable but 1,000,000
3,000,000
5,000,000
7,000,000
9,000,000
11,000,000
EST
2027/28
EST
2028/29
EST
2029/30
EST
2030/31
EST
2031/32
Water & Wastewater Operations
Revenue
Water Operations Wastewater Operations
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 10
also to provide 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 water-saving 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 will be $2 million in drought contingency funds as of June 30, 2026. The City’s goal was to accumulate $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.

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 $74.3 million on June 30, 2027, an increase of $463 thousand from the projected beginning balance on July 1, 2026. The General Fund will not have to subsidize the Water Fund’s capital projects as in prior years, the Utility Funds’ operations are now self-supporting.

The Roads Fund subsidizes the other Special Assessment Funds’ operations and capital projects.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 11
As build-out occurs, the goal will be to attain the cost of service for these programs. For fiscal year 2026/27, the Road Fund subsidy for operations and capital projects totals $13.8 million, compared to $12.7 million for the fiscal year 2025/26 budget.

The General Fund revenues are projected to increase by $397 thousand, or 2.7% over fiscal year 2025/26. Most 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.

Utility Fund revenues for
operations and maintenance will
increase by $611 thousand, or

5.2% over fiscal year 2025/26.

However, a portion of that
increase is offset by increased
operating expenses, due to growth
and increasing costs, including
professional services, 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 2026/27 budget includes a 2.48% increase of the special assessment tax rates. The Public Safety Fund and Parks Fund continue to be highly subsidized by the Road Fund. For the fiscal year 2026/27 budget, the special tax assessments total $19.4 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 as follows: 48% for public safety, 26% for parks, 20% for roads, and 6% for public works.

As of June 30, 2026, over 8,441 building permits will have been issued. We expect to issue roughly 300 building permits during fiscal year 2026/27. 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, Special Tax No. 1:

Roads, 11,435,865 , 59%
Special Tax No. 2: Public
Safety, 5,786,709 , 30%
Special Tax No. 3:

Parks, 1,129,836 ,
6%
Special Tax No. 4: Public
Works, 1,069,334 , 5%
Special Tax Revenue
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 12
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 $14.3 million over the next five years. All the funds show an increase in revenues except for Special Revenue Fund and Restricted Fund.

The following increases and decreases are expected in revenues over the next five years:
- General Fund a $3.7 million increase (24%)
- Special Assessment Funds a $5.6 million increase (29%) - Special Revenue Funds a $3.3 million decrease (-38%)
- Enterprise Funds a $9.8 million increase (38%)
- Restricted Funds a $1.5 million decrease (-10%)
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 1,250 residential units over the next five years.

The increase in Special Assessment Funds revenue is due to an expected increase in rates and increases 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.

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 0 10,000,000
20,000,000
30,000,000
40,000,000
EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 EST 2031/32 Projected Revenues by Fund
General Funds Special Assessment Funds
Special Revenue Funds Enterprise Funds
Funds EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 EST 2031/32 General Funds 16,138,118 16,834,021 17,550,119 18,286,964 19,045,120 Special Assessment Funds 20,457,599 21,532,852 22,648,827 23,806,888 25,008,445 Special Revenue Funds 4,857,500 4,956,888 5,059,828 5,166,452 5,276,897 Enterprise Funds 27,653,965 29,523,571 31,488,600 33,554,146 35,725,571 Restricted Funds 12,489,623 12,823,211 13,166,808 13,520,712 13,885,233 Total Funds 81,596,805 85,670,543 89,914,182 94,335,162 98,941,266 Projected Revenues
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 13
cost index that was recorded in February of that year or 2%, whichever is higher. The pledged facility fees increased by $5.2 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 projecting 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 and complete required capital improvements.

The decrease in the Special Revenue Fund is due to fiscal year 2026/27 including Local Transportation Funds funding and grant funding. Both funding sources are not guaranteed funding in the future. The decrease in Restricted Funds revenue is due to a decrease in permits.

The City is projecting expenditures to increase by $14.9 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: $816 thousand increase (22%)
- Special Assessment Funds: $8.1 million increase (33%) - Special Revenue Funds: $2 million increase (34%)
- Enterprise Funds: $2.5 million increase (22%)
- Restricted Funds: $1.1 million increase (474%)
- Debt Service Funds: $3.6 million increase (13%)
- Capital Projects Fund: $3.2 million decrease (-28%)
The majority of the increase to the General Funds’ expenditures comes from an increase in personnel and consultant costs. As the community population grows; service demands increase as well. Consequently, personnel and consultant costs will increase in the coming years, and the City will require additional resources.

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

Funds EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 EST 2031/32 General Funds 3,917,984 4,074,704 4,237,692 4,407,199 4,583,487 Special Assessment Funds 25,937,667 28,076,219 29,306,376 30,928,165 32,285,639 Special Revenue Funds 6,411,127 7,300,660 7,549,351 7,807,556 8,075,646 Enterprise Funds 11,960,968 12,439,407 12,936,983 13,454,463 13,992,641 Restricted Funds 1,370,000 1,370,000 1,370,000 1,370,000 1,370,000 Debt Service 25,535,567 26,859,846 28,240,599 29,680,023 31,180,396 Capital Projects 7,000,000 7,000,000 7,000,000 7,500,000 8,500,000 Total Funds 82,133,313 87,120,836 90,641,001 95,147,406 99,987,809 Projected Expenditures
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 14
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
year 2026/27.

STRATEGIC FUNDING AND INTERGOVERNMENTAL PARTNERSHIPS
In accordance with the City’s Strategic Plan, staff will continue pursuing competitive grant, lowinterest financing, federal appropriations, and infrastructure funding opportunities to advance critical infrastructure, transportation, water reliability, and public safety projects.

During fiscal year 2025/26, the City continued expanding its coordinated state and federal advocacy efforts through participation in regional partnerships, direct agency engagement, and ongoing coordination with the City’s state and federal legislative advocates. These efforts included meetings with federal agencies, congressional offices, transportation and water infrastructure partners, and participation in regional advocacy activities in Washington, D.C.

As part of these efforts, the City submitted FY 2027 Congressional Appropriations requests through Congressman Josh Harder’s office for the following priority projects:
• Aquifer Storage and Recovery (ASR) Project – $4.5 million federal request • Byron Highway Widening Preliminary Engineering – $1.5 million federal request • Public Safety Training Facility – $1.9 million federal request In addition, the City submitted an application to the U.S. Bureau of Reclamation Small Surface Water and Groundwater Storage Program requesting approximately $1.3 million to support feasibility and planning efforts associated with the Aquifer Storage and Recovery Project.

The City also submitted a federal Better Utilizing Investments to Leverage Development (BUILD) Grant application requesting approximately $22 million for construction of the Byron Highway Widening Project to support regional mobility, safety improvements, and corridor capacity enhancements.
0 20,000,000
EST 2027/28 EST 2028/29 EST 2029/30 EST 2030/31 EST 2031/32 Projected Expenditures by Fund
General Funds Special Assessment Funds
Special Revenue Funds Enterprise Funds
Restricted Funds Debt Service
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 15
Staff will continue pursuing grant and funding opportunities that align with the City’s long-term infrastructure, resiliency, transportation, water supply diversification, and public safety priorities. Participation in regional agencies and coordinated advocacy efforts will continue positioning the City competitively for future state and federal funding opportunities.

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.

BUDGET PRESENTATION
The fiscal year 2026/27 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 2026/27 have been programmed into the budget, the projections are the framework for future capital improvement requests.

BUDGET REVIEW
The adopted budget was discussed with the City Council Members at a workshop on May 14, 2026. Staff took into consideration the directions given at the workshop and then presented the budget to the City Council on June 10, 2026 for adoption.

Sincerely,
Steven J. Pinkerton
City Manager
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 16
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
The City of Mountain House is committed to a fiscally balanced budget through responsible governance and transparent communication, while providing reliable services, vibrant parks, and diverse recreation and maintaining a safe and inclusive community for all.

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. - 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 17

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 decision-making processes.
- Fiscal Sustainability & Community Culture: The Council is committed to responsible financial management while preserving Mountain House's unique community character and values.
- Amenities & Quality of Life: Expanding recreational, cultural, and public amenities to support a vibrant and thriving community.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 18

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 19
American Indians. Eventually, Simon Zimmerman purchased the stop, and Mountain House became a famous way station on the road to Stockton.

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 Board of Directors.

DEMOGRAPHICS
Land Area .............................................................................................................7.5 square miles Population1......................................................................................................................... 30,687 1 California Department of Finance, Demographic Research Unit, January 1, 2026 Estimate Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 20
Median Household Income (In 2022)2............................................................................ $177,163 Median Age ............................................................................................................................ 35.0 Population by Gender3
Female ......................................................................................................................50.4% Male .........................................................................................................................49.6% Population by Age Group4
Under 14 years .........................................................................................................27.0% 15 to 24 years............................................................................................................14.3% 25 to 44 years............................................................................................................28.8% 45 to 59 years............................................................................................................20.1% 60 to 74 years..............................................................................................................6.8% 75 years and over........................................................................................................2.8% Racial Composition5
Hispanic or Latino (of any race) ................................................................................. 8.3% White.........................................................................................................................19.2% African American.........................................................................................................6.6% Native American..........................................................................................................0.5% Asian..........................................................................................................................57.3% Pacific Islander............................................................................................................0.0% Other...........................................................................................................................0.4% From two or more races .............................................................................................7.8% Level of Educational Attainment of people 25 years and older6 Graduate/Prof. Degree .............................................................................................25.9% 2 US Census Bureau, 2024 American Community Survey 5-Year Estimates 3 US Census Bureau, 2024 American Community Survey 5-Year Estimates 4 US Census Bureau, 2024 American Community Survey 5-Year Estimates 5 US Census Bureau, 2024 American Community Survey 5-Year Estimates Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 21
Bachelor’s Degre .......................................................................................................28.2% Some College or Associate Degree ...........................................................................25.4% High School Graduate ...............................................................................................14.4% Less than High School .................................................................................................6.1% Distribution of jobs by major employment sectors7
Management, business, science and arts.................................................................56.8% Service.......................................................................................................................15.3% Sales and office .........................................................................................................13.1% Natural resources, construction and maintenance ....................................................7.4% Production, transportation, and material moving......................................................7.4%

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.

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. - Ensured aspects of labor agreements are implemented including cost of living increases, step increases and performance evaluations.
6 US Census Bureau, 2024 American Community Survey 5-Year Estimates 7 US Census Bureau, 2024 American Community Survey 5-Year Estimates Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 22
- Worked with Finance staff to oversee an in-house payroll system; secured a suite of benefits including health, dental, vision, and life insurance; retirement; and deferred compensation.
- Completed a Classification and Compensation study.

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 employment-related issues.
- 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 2025/26 budget. - Awarded an Operating Budget Excellence Award from the California Society of Municipal Finance Officers for the fiscal year 2025/26 budget. - Awarded a Certificate of Achievement for Excellence in Financial Reporting for the City’s Annual Comprehensive Financial Report (ACFR) for fiscal year 2024/25. 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 Districts 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.
- Since incorporation, staff have 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 23
- 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.
- 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 24
- Developed and distributed digital newsletters, media releases, graphics, videos, and community updates to improve communication and strengthen public awareness of City programs and services.
- Continued development of online forms, digital workflows, and interactive web features to improve customer service, streamline public access to information, and reduce administrative processing time.
- Utilized data analytics and engagement tools, including Placer.ai and website analytics, to better understand community trends, improve outreach effectiveness, and support data-driven communication strategies.
- Coordinated communication support for City Council initiatives, public meetings, ribbon cuttings, groundbreakings, public safety campaigns, and community engagement events throughout the year.

Public Works
- Assumed responsibility for floodplain management.
- Advanced implementation of the City’s GIS, asset management, and maintenance management systems.
- Implemented a red-light camera program in compliance with state requirements. - Completed the Wicklund Village and Arterial Road Pavement Repair Project, including curb repairs, pavement grinding, overlay, slurry seal, and restriping. - Issued requests for proposals for the Byron Road Pavement Assessment and the City’s first Transit Feasibility Study.
- Implemented the City’s first federally funded project: the Mountain House Parkway Traffic Signal Synchronization Project.
- Positioned six capital projects for regional funding to accelerate delivery of safety and accessibility improvements, including sidewalk replacement, ADA ramp improvements, and traffic safety enhancements.
- Developed the Byron Highway Widening Project for One Voice and submitted a BUILD federal grant application to support future funding.
- Secured approximately $1.8M annually in LTF funding to support transit and transportation priorities.
- Developed a Master Consultant Agreement (MCA) for various engineering tasks to effectively implement on-call projects.
- Completed the Sidewalk Replacement Project design and prepared a bid package for construction.
- Completed the Bethany Neighborhood Park Playground Replacement project.

Operations & Maintenance
- Continued citywide maintenance and operations for public facilities, parks, streetscapes, landscaped areas, fleet assets, and public infrastructure.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 25
- Performed preventative and corrective maintenance for Town Hall and other City facilities, including HVAC, plumbing, elevators, flooring, doors, and building safety systems.
- Completed reflooring improvements in Town Hall Room TH-1 and various facility repair projects.
- Implemented a new citywide landscape maintenance oversight structure through coordination of three landscape maintenance contractors to improve service delivery, operational consistency, and quality control.
- Coordinated landscape maintenance oversight for parks, trails, medians, streetscapes, and other public areas throughout the community.
- Completed vandalism repairs and maintenance at parks, restrooms, and public facilities to maintain safe and functional amenities.
- Performed playground equipment repairs and replacements at neighborhood and community parks.
- Conducted fleet and equipment maintenance to support City operations and field services.
- Completed safety-related repairs at Town Hall and the Library, including installation of a new safety railing at the splash pad maintenance facility. - Installed new signage and pavement markings in the Town Hall parking lot to improve circulation and safety.
- Investigated traffic accident damage and coordinated repair assessments at multiple public infrastructure locations.
- Repaired damaged sound walls along arterial roadways.

Utilities – Water, Wastewater & Stormwater
- Updated compliance plans, protocols, standard operating procedures, and Quality Assurance/Quality Control (QA/QC) programs for water, wastewater, stormwater, and solid waste systems.
- Completed a feasibility study supporting grant funding opportunities for the Aquifer Storage and Recovery (ASR) Program, including submission of a $3 million Proposition 4 funding request.
- Continued routine regulatory water quality sampling and reporting requirements in coordination with the State Water Resources Control Board. - Updated and submitted a revised Water Operations Plan. - Completed permit amendments increasing Water Treatment Plant capacity from 12.5 MGD to 15 MGD and upgrading the facility classification from Treatment 4 to Treatment

5. - Replaced granular activated carbon and sand media in six filter beds at the Water Treatment Plant.
- Completed rehabilitation improvements at the Booster Pump Station.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 26
- Advanced the Aquifer Storage and Recovery Program through feasibility, design, and grant development activities.
- Submitted the City’s Lead Service Line Inventory to the State Water Resources Control Board and initiated related hazard assessment activities. - Completed the Water Meter Accuracy Testing Program in preparation for fiscal year 2026/27 implementation.
- Completed and published the 2024 Consumer Confidence Report and initiated the 2025 report in compliance with updated State requirements.
- Installed pressure reducing valves to support continued system reliability and future growth.
- Completed a permit amendment increasing wastewater treatment capacity to 5.4 MGD. - Participated in early detection sampling programs in partnership with the Department of Public Health.
- Continued stormwater environmental stewardship efforts through public education and regulatory coordination.
- Completed a biological study for the Creek Restoration Program and advanced repair design activities.

Waste & Recycling
- Advanced solid waste and recycling programs, including SB 1383 compliance initiatives for schools and commercial accounts.
- Completed required compost procurement activities and initiated development of a community giveaway program.

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.
- Coordinated with consultants and developers to establish Community Facilities Districts (CFDs) supporting parks and infrastructure improvements. - Initiated development of the City’s first General Plan, including public outreach and community engagement efforts.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 27
Planning and Entitlement
- Continued development of a fully functioning Planning Department through onboarding of consultants, establishment of procedures and applications, processing of development applications, and project approvals.
- Updated the Master Plan and Specific Plans to reflect land use, circulation, and community facility changes.
- Awarded consultant contracts for preparation of the City’s General Plan and Housing Element updates.
- Adopted an updated Development Title (Municipal Code Title 9).

Development Engineering
- Reviewed and approved civil and infrastructure improvement plans supporting continued buildout across multiple active development neighborhoods throughout the community, including Neighborhoods A, B, F, H, I, J, and K, as well as College Park and areas north of Byron Road.
- Coordinated engineering review activities for grading, utility, joint trench, streetlighting, landscape, roadway, and traffic signal improvements associated with ongoing residential and infrastructure development.
- Advanced review and approval of major arterial roadway improvements, including Central Parkway, Great Valley Parkway, and Todarmal Parkway. - Reviewed and approved improvement plans for major park and community facility projects, including the Central Park Dog Park, Tennis Complex, Amphitheater, neighborhood parks, and linear park facilities.
- Verified final maps and prepared subdivision and off-site improvement agreements supporting continued infrastructure delivery and development activity. - Prepared conditions of approval and coordinated engineering review activities for new residential and infrastructure development projects.
- Delivered grand opening of Costa Neighborhood Park.

Building and Safety Services
- Continued development of a fully functioning Building Department through implementation of permitting procedures, inspection services, consultant coordination, and customer service processes supporting ongoing residential and commercial growth. - Processed approximately 240 building permits during fiscal year 2025/26 and coordinated construction inspections for residential, commercial, infrastructure, and public facility projects throughout the community.
- Supported continued development activity through plan review, permit issuance, inspection coordination, and compliance verification activities.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 28
- Implemented operational processes and workflows to improve permitting efficiency, construction oversight, and service delivery in response to continued community growth.

Code Compliance
- Developed procedures and informational materials to improve public understanding of municipal code requirements.
- Expanded GOGov services to include Code Enforcement and Permit modules. - Implemented an electronic citation system for parking and administrative citations. - Updated City ordinances authorizing Public Safety Security staff to issue parking and administrative citations in support of Code Compliance operations. - Ensured all Code Compliance staff completed State certification training requirements through the California Association of Code Enforcement Officers (CACEO). - Hosted community workshops regarding City ordinances and Master Restrictions.

Recreation
- Developed and implemented Sponsorship, Donation, and Advertising Policies to diversify revenue sources and reduce reliance on the General Fund. - Established a Community Special Events Policy to support safe park use, event coordination, and long-term facility maintenance.
- Standardized departmental procedures and operational documentation to improve consistency, transparency, and staff training.
- Recruited and onboarded an additional Recreation Coordinator to support facility rentals, tennis operations, special events, and senior programming. - Expanded Prime Time Senior Programs and launched a new annual membership program to increase participation and engagement.
- Launched a Community Donation Bin and Town Hall TV Display initiative supporting local nonprofits and community outreach.
- Increased attendance and participation at major community events, including the MultiCultural Celebration and Senior Health and Wellness Fair. - Secured more than $10,000 in sponsorships and $2,000 in in-kind donations to support community programs and events.
- Expanded recreation programming through contract instructor-led classes, senior wellness programs, and summer camps.
- Enhanced the MoHoHo Holiday Series through the addition of a community parade, relocation of the Holiday Market, installation of a 24-foot holiday tree, and expanded event programming.

Emergency Management
- Monitored and reported to the City Council regarding implementation of the new Emergency Medical Services (EMS) system impacting Mountain House.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 29
- Completed the Municipal Emergency Management Plan (MEMP) and initiated development of the Incident Command System (ICS) framework. - Trained selected staff on implementation of the Municipal Emergency Management Plan and Incident Command System procedures.
- Participated as a voting member of the San Joaquin County Office of Emergency Services Disaster Council.
- Coordinated with the Office of Emergency Services on countywide disaster preparedness and threat assessment activities.
- Continued use and expansion of the Everbridge emergency notification system, increasing community enrollment and notification capabilities. - Updated the Facilities Emergency Response Plan and developed a five-year operational preparedness framework.
- Developed budget and operational concepts for a future Emergency Operations Center (EOC) to support emergency response coordination and major community events. - Coordinated with Information Technology and the City Clerk’s Office on development of a Continuity of Operations Plan (COOP) for catastrophic service interruptions. - Implemented a 20-radio communications system connecting Public Works, Public Safety, Parks, and Administration to improve emergency response coordination and event communications.
- Advanced planning efforts with the Fire Department for a two-tower communications system to strengthen radio and internet connectivity.

Public Safety Services
- Increased traffic enforcement staffing through expansion to two motorcycle deputy positions.
- Added two deputies assigned to swing shift patrol operations to support increasing service demands.
- Continued hosting regional STEPUP traffic enforcement operations resulting in numerous traffic enforcement contacts and citations.
- Maintained the community volunteer pedestrian crossing guard program for a second consecutive year.
- Coordinated fire and life safety inspections and risk assessments at Town Hall and the Library in partnership with Mountain House Fire.
- Continued expansion of the City’s public safety camera system, including monitoring capabilities for more than 31 surveillance cameras throughout the community and Town Hall/Library facilities.
- Advanced integration of the public safety camera system with microwave communications infrastructure to improve connectivity and system reliability. - Managed 26 Flock Falcon Automated License Plate Recognition cameras throughout the community.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 30
- Conducted staff training regarding First Amendment considerations and facility access protocols for public buildings.
- Participated in numerous community outreach and public safety engagement programs, including Neighborhood Watch, Business Watch, Coffee with First Responders, National Night Out, Senior Awareness programs, and Reading Across America. - Conducted pedestrian safety evaluations and traffic data collection activities near schools and high-volume pedestrian areas.
- Developed municipal code updates related to parking enforcement, park enforcement, and code compliance operations.
- Established additional Neighborhood Watch and Business Watch groups throughout the community.
- Maintained FAA Part 107 certification for drone operations supporting public safety and emergency management activities.
- Continued evaluating public safety staffing needs associated with parks, recreation programs, and community events.
- Expanded use of the GOGov community platform for parks, code compliance, and public information services.

Fire & EMS Services
- Responded to 46 fire incidents and 691 rescue and emergency medical service calls. - Completed 4,443 training hours in coordination with partner agencies, including CPR, CERT, Stop the Bleed, and drone training programs.
- Performed inspection and maintenance activities for approximately 1,150 fire hydrants throughout the community.
- Participated in more than 100 community outreach and educational events, including the July 4th Parade, National Night Out, farmers markets, school fire prevention assemblies, community open houses, and youth engagement programs. - Coordinated vegetation management and fire prevention efforts with the City to address overgrown vegetation, weeds, and tall grass in undeveloped areas surrounding the community.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 31
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 32
City of Mountain House’s Organization Chart

ELECTED OFFICIALS
Andy Su, Mayor
Councilmembers
Bernice ing Tingle Ma Disko
Ronna Green Daniel Harrison
City A orney
Redwood Public Law

CITI E S
OF

THE CIT OF MO TAI HO SE
City Auditor
Richardson Company
City Clerk
City Manager
Steven Pinkerton
Legend
Elected
Board Appointed
City Manager Appointed
Contracted Services
Public Works
Director
Finance Director Community Dev
Director
Opera ons and
Maintenance Building
Planning
Code Enforcement
Administra ve
Services
Human Resources
Recrea on Informa on
Technology
Risk Management
lity System
Opera ons
Law Enforcement
Fire EMS
Library

eighborhood Engagement,
Community Programming and
eighborhood Development,
Construc on Management,
Economic Development,
Transporta on Management ,
Land Acquisi on and
Development

Driving Performance and
Innova on, Recruitment,
Customer Service, Accessible
Technology Implementa on,
Informa on Dissemina on,
Community Outreach

lity and Infrastructure,
Maintenance and Repair,
Hazardous Materials Control,
Fire Preven on, Safety
Educa on, Crime Preven on
and Mapping, Patrols, Tra c
Enforcement
Deputy
City Manager
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 33
City of Mountain House’s Organization Chart
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 34

FULL TIME & PART TIME POSITIONS

FULL TIME POSITIONS
2022/23
BUDGET
2023/24
BUDGET
2024/25
BUDGET
2025/26
BUDGET
2026/27

BUDGET CHANGE
City Manager 1 1 1 1 1 0.00
Deputy City Manager 0 1 1 1 1 0.00
Administrative Services Director 1 1 1 1 1 0.00
Management Analyst 2 3 2 2 1 (1.00)
Administrative Assistant 2 2 2 2 2 0.00
Administrative Secretary 1 1 1 1 1 0.00
City Clerk 0 0 1 1 1 0.00
Human Resources Manager 1 1 1 1 1 0.00
Communication Officer 0 0 1 1 1 0.00
Finance Director 1 1 1 1 1 0.00
Accounting Manager 1 1 1 1 1 0.00
Financial Services Manager 0 0 0 0 1 1.00
Senior Management Analyst 0 0 0 1 1 0.00
Senior Accountant 1 1 1 1 1 0.00
Accountant I 2 2 2 3 3 0.00
Accounting Technician I 1 1 1 1 1 0.00
Recreation Manager 1 1 1 1 1 0.00
Recreation/Comm. Coordinator 1 1 1 2 2 0.00
Community Development Director 1 1 1 1 1 0.00
Chief Building Inspector 0 0 1 0 0 0.00
Principal Planner 1 1 1 1 1 0.00
Assistant Planner 1 1 1 1 1 0.00
Permit Technician 0 0 1 1 1 0.00
Engineer IV/V 2 3 3 2 2 0.00
Engineer I/II/III 1 1 1 2 2 0.00
Construction Manager 1 1 1 1 1 0.00
Senior Public Works Inspector 1 1 1 1 1 0.00
Senior Inspector & Code Enforcement Officer 1 1 1 1 1 0.00 Inspector & Code Enforcement Officer 0 0 1 1 1 0.00
Community Preservation Officer 1 1 1 1 1 0.00
Public Works Director 1 1 1 1 1 0.00
Utility Manager 1 1 1 1 1 0.00
Engineer I/II/III 1 1 1 1 1 0.00
Program Manager 0 0 1 2 2 0.00
Customer Service Supervisor 1 1 1 1 1 0.00
Accounting Technician I 1 1 1 1 1 0.00
Office Assistant II 0 0 0 2 2 0.00
Office Assistant I 1 1 1 1 1 0.00
Operations & Maint. Superintendent 1 1 1 1 1 0.00
Landscape Supervisor 1 1 1 1 1 0.00
Facility Supervisor 0 0 0 1 1 0.00
Senior Maintenance Worker 1 1 1 2 2 0.00
Maintenance Worker II 1 1 1 1 1 0.00
Maintenance Worker I 1 1 1 1 1 0.00
Total Full-time Positions 37 40 45 52 52 0.00

PART TIME POSITIONS
Recreation Assistants 0 1.4 1.4 2.4 2.4 0.00
Administrative Assistant 0 0 0.3 0.3 0.3 0.00
Interns 0.5 0.5 0.5 1 1 0.00
Total Part-time Positions 0.5 1.9 2.2 3.7 3.7 0.00
Total Personnel 37.5 41.9 47.2 55.7 55.7 0.00

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 35

STAFFING LEVEL BY DEPARTMENT
The City will have 55.7 fulltime positions for the fiscal year 2026/27. This is the same number of equivalent full-time employees included in the prior year budget. The only change from the prior year was to change the position of Management Analyst to Financial Services Manager.

The four positions of Community Development Director, Principal Planner, Planning Technician, and Senior Public Works Inspector are included in the full-time positions but were not funded for fiscal year 2026/27 as consultants are expected to fill those roles for the City.

DISCUSSION OF EMPLOYEE COMPENSATION & BENEFITS
The total expected employee compensation for fiscal year 2026/27 is $11.3 million, a $567 thousand increase over the fiscal year 2025/26 budget. The increase is due to the 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 $2.4 million and health, dental, and vision costs are expected to be $1.4 million. 2022/23
BUDGET
2023/24
BUDGET
2024/25
BUDGET
2025/26
BUDGET
2026/27
BUDGET

FULL TIME POSITIONS
Administration 8 10 11.3 11.3 10.3
Finance 6 6 6 8 9
Community Development 10 11 14 13 13
Public Works 6.5 6.5 7.5 11 11
Operations & Maintenance 5 5 5 7 7
Recreation 2 3.4 3.4 5.4 5.4
Total Full-time Positions 37.5 41.9 47.2 55.7 55.7
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 36
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 2026/27.

The City budgets are 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 explains fund-level revenues and expenditures.

Departments
City of Mountain
House
Administration
Department
Legal Services
Division
City Council & City
Clerk Division
Human Resource
Division
Risk Management
Division
Finance Division
Information
Technology
Division
Public Works
Department
Regulatory &
Compliance
Division
Impact Fee
Programs Division
Operation &
Maintenance
Division
Customer Service
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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 37

BUDGET DOCUMENT
The City’s budget document is presented 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 2026/27 Budget Schedule
- November 5, 2025 - Budget preparation meeting
- November 12, 2025 - Distribution of forms and instructions - November 12, 2025 - Department budget meeting
- December 29, 2025 - Personnel request submittals
- January 9, 2026 - Department operating budget submittals Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 38
- January 16, 2026 - CIP budget submittals
- January 22, 2026 - Public safety budget meeting
- May 5, 2026 - City Manager review
- May 8, 2026 - Distribution of draft budget to the City Council - May 14, 2026 - City Council Budget Workshop
- June 13, 2026 - City Council adoption of budget
- July 1, 2026 - 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 revenue earned 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 a 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 end 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 39

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 requests for payment that exceed the budget amount as described above. Originating departments must complete an Appropriation Adjustment Request (AAR) to adjust budgeted 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 40
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 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 being allocated is $4.9 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%
7%
2% 0%
15%
17%
5%
2%
30%
12%
0%
5%
10%
15%
20%
25%
30%
35% Department/Division Personnel Allocation
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 41
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 $4.2 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. , 424,695 ,
10%
Customer Service,
IT/Communications, 13,488 , 0% Finance, 85,599 , 2% 308,045 , 7% Public Works,
626,568 , 15%
Development,
720,158 , 17%
Regulatory,
205,651 , 5%
Code Compliance,
97,105 , 2% Operations &
Maintenance,
1,266,733 , 30%
Recreation,
500,270 , 12%
Department/Division Overhead Allocation
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 42
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
Local
Transportation
Fund
Regional Traffic
Impact Fee
Grant Fund
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
Community
Facilities Districts
Fund
Affordable
Housing 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 43
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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 44
o The City receives gas taxes pursuant to State law which specifically designates this money for research, planning, construction, improvement, maintenance, and operation of public streets and highways. California Revenue and Taxation Code (Section 7360) set 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 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 Mounting House, Stockton, Lodi, Manteca, Tracy, Ripon, Escalon, and Lathrop.
- Local Transportation Fund
o The Local Transportation Fund (LTF) is California state funding created in 1791 under the Transportation Development Act. The purpose of the funds is to improve existing public transportation services and encourage regional transportation coordination. The eligible uses are transit operations, public transportation improvements, transit planning, specialized transportation services, and local streets and roads (limited).
- Regional Traffic Impact Fund
o Regional Transportation Infrastructure Funds (RTIF) are fees levied with the issue of permits within jurisdictions. The fees are designed to be used to fund transportation projects that may cross jurisdictional boundaries. The eligible uses are regional transit systems, road and bridge projects, public transportation, and integrating transportation planning and operations. - Grant Fund
o Grant funds are non-repayable financial resources provided by governments, foundations, corporations, or organizations to support initiatives that align with the funder’s priorities. The funds have a designated purpose and are required to be used for that purpose.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 45
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 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 Special Tax No. 3:

Parks.
- Capital Projects: Public Works
o The major funding source for public Works’ capital projects is from 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 46
- 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 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
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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 47
o The Community Facilities Fee Fund are permit fees charged to builders that are used to pay for infrastructure costs related to facilities. - Community Facilities Districts Fund
o The Community Facilities Districts Fund is used to account for the activities related to the community facilities operations of districts with the City. - Affordable Housing Fund
o The Affordable Housing Fund is designed to provide capital for new construction, renovation, and repair of affordable housing.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 48
Budget Summary
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 49
Budgeted Revenues

DISCUSSION
The budget for the fiscal year 2026/27 includes revenues of $84.6 million, which is a 21% increase over the projected revenues for fiscal year 2025/26. All major funds are expected to increase in fiscal year 2026/27. The largest increase is the $8.1 million in Restricted Funds.

Restricted Funds are expected
to increase due to an expected
increase in building permits for
fiscal year 2026/27. The Special
Revenue Funds are expected to
increase by $4.1 million due to
grants and receiving funds
from Local Transportation
Fund. The Special Assessment
Funds and Enterprise Funds
show a combined increase of
$2.4 million. The expected
increase in the General Funds
is $397 thousand. The result is a $15 million increase in total revenues for the fiscal year 2026/27 budget.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
General Fund 12,020,932 17,200,110 14,976,153 15,373,035 Special Assessment Funds 16,173,399 16,739,646 18,253,649 19,421,744 Special Revenue Funds 105,316 4,653,858 4,453,276 8,555,964 Enterprise Funds 22,581,183 24,811,953 24,702,289 25,912,445 Restricted Funds 10,568,476 36,248,753 7,282,340 15,364,971 Total Funds 61,449,306 99,654,320 69,667,707 84,628,159 -
10,000,000
20,000,000
30,000,000
40,000,000

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
Revenues by Fund
General Fund Special Assessment Funds
Special Revenue Funds Enterprise Funds
Restricted Funds
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 50
General Fund Revenues

DISCUSSION
The General Fund revenues are expected to increase $397 thousand in fiscal year 2026/27. The majority of the increase is
attributable to growth 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

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

GENERAL FUNDS
General Fund
Property tax-secured 7,889,755 9,964,263 11,038,484 11,480,023 Property tax-secured-SB813 351,366 177,977 222,726 231,635 Property tax-unsecured 462,099 624,231 690,856 718,490
Property tax-unsecured-SB813 18,326 11,400 12,000 12,480 Property Transfer Tax - 594,357 296,355 300,000
Sales Tax - 153,095 182,291 190,000
License/permits-plan check 7,999 9,204 5,000 5,000
Franchises 392,416 459,351 477,492 480,000
Interest income 1,435,646 3,020,679 500,000 350,000
Rents/concessions 15,300 9,931 11,376 10,000
Homeowners' property tax relief 32,411 56,871 57,252 58,397 West Valley commercial 175,094 292,522 305,688 305,000
Utility services fee-solid waste 792,625 754,183 800,342 816,348 Charges for services 7,697 35,190 33,301 30,000
Other miscellaneous revenues 85,941 156,761 7,182 5,000 AB 109 Public Safety - 87,500 150,000 150,000
11,666,675 16,407,515 14,790,345 15,142,373
Traffic Impact Fee Program
Traffic impact administration fee 153,349 360,930 95,622 84,689 Communitiy Facility Fee Program
Community facility admin fee 200,908 431,665 90,186 145,973 Total General Funds 12,020,932 17,200,110 14,976,153 15,373,035 11,000,000
12,000,000
13,000,000
14,000,000
15,000,000
16,000,000
17,000,000
18,000,000

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
General Fund Revenue
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 51
by the total number of residents (4% increase). The increase in valuation is an estimate comparing the values of new homes to older homes (0% increase). The increase was roughly 4% over the prior year.

The Traffic Impact Fee (TIF) and Community Facility Fee (CFF)provide administration funds for the administering of the Traffic Impact Program and Community Facilities Program. The TIF fees are expected to slightly decrease. The CFF fee is expected to increase slightly due to less permits going through Community Facilities Districts. 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 2026/27 is roughly 300 residential permits.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 52
Special Assessment Fund Revenues

DISCUSSION
The Special Assessment Fund revenues are expected to increase by $1.2 million in fiscal year 2026/27. 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
2026/27 fiscal year
budget expects a 4% increase in units and a 2.48% increase in rates. The increase in Special Assessment Funds was roughly 6.5% over the fiscal year 2024/25.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

SPECIAL ASSESSMENT FUNDS
Special Tax No. 1: Roads
Interest income 271,196 136,767 75,000 75,000
Special assessments-current 9,154,395 9,721,667 10,669,784 11,360,865 9,425,591 9,858,434 10,744,784 11,435,865
Special Tax No. 2: Public Safety
Other income 20,000 20,000 - -
Special assessments-current 4,662,508 4,952,665 5,434,704 5,786,709 4,682,508 4,972,665 5,434,704 5,786,709
Special Tax No. 3: Parks
Rents/concessions/other 329,147 114,255 125,252 125,000 Special assessments-current 810,157 859,380 943,711 1,004,836 1,139,304 973,635 1,068,963 1,129,836
Special Tax No. 4: Public Works
Other income 74,016 32,157 15,000 15,000
Special assessments-current 851,980 902,755 990,198 1,054,334 925,996 934,912 1,005,198 1,069,334
Total Special Assessment Funds 16,173,399 16,739,646 18,253,649 19,421,744 -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000

AUDITED
2023/24

AUDITED
2024/25

PROJECTED
2025/26

PROPOSED
2026/27
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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 53
Special Revenue Fund Revenues

DISCUSSION
The Special Revenues Fund revenues are expected to increase by $4.1 million in fiscal year 2026/27. The large increase is due to grants and receiving funds from Local Transportation Fund. The development services revenue is estimated by the expected development that will occur in fiscal year 2026/27. The gas tax and measure K revenues the City will receive are based on percentages from the prior fiscal year. There is also a slight increase in Regional Traffic Impact Fees due to issuing 300 building permits in fiscal year 2026/27.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

SPECIAL REVENUE FUNDS
Development Services
Charges for services 105,316 2,910,933 1,817,309 1,780,000 Gas Tax
Gas tax - 1,122,535 1,195,919 1,100,000
Measure K
Measure K funds - 620,390 649,588 650,000
Local Transportation Fund
Local Transportation funds - - - 3,875,964
Grant Fund
Grant funds - - - 350,000
Regional Traffic Impact Fee
Impact fee - - 790,460 800,000
Total Special Revenue Funds 105,316 4,653,858 4,453,276 8,555,964 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 54
Enterprise Fund Revenues

DISCUSSION
The Enterprise Funds are expected to increase by $1.2 million in fiscal year 2026/27. 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 2026/27. 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 5% across the Enterprise Funds operations. There were also increases in the utility pledged debt component which increased by 2.65% and increased in residential units. The combined increase for pledged debt was roughly 5%.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

ENTERPRISE FUNDS
Water Operations
Utility service fee-operations 5,712,861 6,142,350 6,503,851 6,959,771 Miscellaneous revenue 421,700 248,816 50,000 50,000
6,134,561 6,391,166 6,553,851 7,009,771
Water Debt Service
Utility service fee-pledged facility 5,473,782 5,915,255 6,181,442 6,469,104 5,473,782 5,915,255 6,181,442 6,469,104
Wastewater Operations
Interest income 284,824 310,316 50,000 50,000
Utility service fee-operations 3,838,372 4,153,829 4,195,367 4,279,274 4,123,196 4,464,145 4,245,367 4,329,274
Wastewater Debt Service
Utility service fee-pledged facility 4,117,147 4,974,501 5,103,838 5,341,353 4,117,147 4,974,501 5,103,838 5,341,353
Storm Operations
Interest income 323,400 342,089 50,000 50,000
Utility service fee-operations 764,243 804,218 812,260 828,505 Storm drain system-NPDES 185,130 395,918 169,884 225,000 1,272,773 1,542,225 1,032,144 1,103,505
Storm Debt Service
Utility service fee-pledged facility 1,459,724 1,524,661 1,585,647 1,659,438 1,459,724 1,524,661 1,585,647 1,659,438
Total Enterprise Funds 22,581,183 24,811,953 24,702,289 25,912,445 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 55
Restricted Fund Revenues

DISCUSSION
The Restricted Funds revenues are projected to increase by $8 million in fiscal year 2026/27.

The Traffic Impact Fees and
Community Facility Fees are
primarily responsible for the
increase. These fees are
expected to increase due to an
increase in development from
the prior year and an increase in
rates. The Traffic Impact Fees

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

RESTRICTED FUNDS
Landscape & Lighting District 1
Interest income 27,962 30,732 15,000 15,000
Special assessments-current 59,657 61,430 63,277 64,000 87,619 92,162 78,277 79,000
Landscape & Lighting District 2
Special assessments-current 47,133 39,243 40,000 40,000 47,133 39,243 40,000 40,000
Landscape & Lighting District 3
Interest income 50,911 54,018 20,000 20,000
Special assessments-current 373,063 384,237 395,771 396,000 423,974 438,255 415,771 416,000
Community Facilities Districts
Special assessments-current - - 234,911 235,000
- - 234,911 235,000
Affordable Housing
Interest income - 439,658 100,000 100,000
Affordable housing fee - 10,743,417 512,054 500,000
- 11,183,075 612,054 600,000
TIF Impact Fee
Interest income 304,025 430,028 150,000 150,000
Impact mitigation fee 3,672,328 10,493,465 2,799,038 6,230,050 3,976,353 10,923,493 2,949,038 6,380,050
CFF Impact Fee
Interest income 579,088 792,918 150,000 150,000
Loan interest 23,326 12,207 - -
Community facility impact 5,430,983 12,767,400 2,802,289 7,464,921 6,033,397 13,572,525 2,952,289 7,614,921
Total Restricted Funds 10,568,476 36,248,753 7,282,340 15,364,971 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
Restricted Funds
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 56
and Community Facility Fees are increased annually by the ENR issued in February. The Traffic Impact Fees and Community Facility Fees are expected to increase by 111% for fiscal year 2026/27. It is expected the City will see a slight increase in the number of residential permits issued in fiscal year 2026/27 based on expected development. The increase that is attributable to the Impact Fee revenue is restricted and pays notes payable when earned, it has no effect on operations.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 57
Budgeted Expenditures

DISCUSSION
The fiscal year 2026/27 budgeted expenditures are expected to be $85.1 million, which is a

20.9% increase over the projected fiscal year 2025/26 projected expenditures. The largest increase is $8.7 million in Debt Service. This increase directly correlates with the increase in Restricted Fund revenues and the increase in Enterprise Funds Debt Service. All revenue received for this is paid through debt service, there is no effect on operations by the increases in revenue or the
increase in expenditures
for the debt service
funds. All funds received
for Debt Service are paid
resulting in a zero effect.

The next largest increase
is $3.1 million 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 Special Assessment Funds largest increase is an $850 thousand increase in fire services due to the addition of a second fire station and the increased costs associated with that station.

The increase in Capital Improvement Projects (CIP), is due to a large number of projects planned for the fiscal year 2026/27. The large number of CIP projects planned in fiscal year

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
General Funds 3,612,198 2,481,665 2,976,121 3,767,293
Special Assessment Funds 12,712,075 14,351,331 21,092,128 24,211,866 Special Revenue Funds 2,397,381 6,987,785 6,523,024 6,040,411 Utility Funds 9,113,475 8,325,459 11,317,954 11,500,931 Restricted Funds 58,739 51,490 185,027 238,700
Debt Service 13,192,756 20,924,847 18,833,983 27,559,866 Capital Projects 1,717,668 2,584,995 9,475,444 11,765,000 Total 42,804,292 55,707,572 70,403,681 85,084,067
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
General Funds Special Assessment Funds Special Revenue Funds Utility Funds Restricted Funds Debt Service
Expenditures by Fund
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 58
2026/27 is 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 park restrooms, bikeway safety project, pavement management, and aquifer storage and recovery project.

The General, Special Revenue, and Utility Funds are expected to increase by a combined $491 thousand in fiscal year 2026/27. There are a number of maintenance costs that were 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 over 2,000 residences over the last five years. This growth requires additional resources.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 59
Fund Balance Summary
PROPOSED FY 2026/27
Estimated
Fund Balance
6/30/2026 Revenues Transfers In Expenditures
Transfers
Out
Projected
Fund Balance
6/30/2027
General Funds
General Fund 71,049,267 15,142,373 - 3,652,293 10,469,096 72,070,252 Traffic Impact Fee Program 1,078,688 84,689 - 65,000 - 1,098,377 Community Facility Fee Program 1,015,257 145,973 - 50,000 - 1,111,230 Total General Funds 73,143,212 15,373,035 - 3,767,293 10,469,096 74,279,859 Special Assessment Funds
Special Tax No. 1: Roads - 11,435,865 7,168,685 4,766,297 13,838,253 - Special Tax No. 2: Public Safety - 5,786,709 5,960,347 11,747,056 - - Special Tax No. 3: Parks - 1,129,836 6,326,055 6,355,891 1,100,000 - Special Tax No. 4: Public Works 673,972 1,069,334 1,551,851 1,342,622 1,952,535 - Total Special Assessment Funds 673,972 19,421,744 21,006,938 24,211,866 16,890,788 - Capital Projects Fund
Roads 4,671,480 - 3,775,000 3,775,000 - 4,671,480
Equipment & Vehicles 1,601,328 - 1,500,000 1,500,000 - 1,601,328 Public Safety 1,280,791 - - - - 1,280,791
Parks 3,693,283 - 1,100,000 1,100,000 - 3,693,283
Public Works 1,898,367 - 3,725,000 3,725,000 - 1,898,367 Total Capital Projects 13,145,249 - 10,100,000 10,100,000 - 13,145,249 Special Revenue Funds
Development Services - 1,780,000 3,300,411 5,080,411 - - Gas Tax 359,454 1,100,000 - 960,000 499,454 -
Measure K 81,587 650,000 - - 731,587 -
Local Transportation Fund - 3,875,964 - - 3,875,964 -
Grant Fund - 350,000 - - 350,000 -
Regional Traffic Impact Fee 790,460 800,000 - - 1,590,460 - Total Special Revenue Funds 1,231,501 8,555,964 3,300,411 6,040,411 7,047,465 - Enterprise Funds
Water O & M 700,000 7,009,771 - 6,279,445 181,000 1,249,326 Water Capital Projects 9,498,562 - - 1,590,000 - 7,908,562 Water Debt Service - 6,469,104 181,000 6,650,104 - -
Wastewater O & M 315,666 4,329,274 - 4,181,073 221,000 242,867 Wastewater Capital Projects 533,648 - 75,000 75,000 - 533,648 Wastewater Debt Service - 5,341,353 146,000 5,487,353 - - Stormwater O & M - 1,103,505 - 1,040,413 63,000 92
Stormwater Capital Projects 2,292,100 - - - - 2,292,100 Stormwater Debt Service - 1,659,438 63,000 1,722,438 - - Total Enterprise Funds 13,339,976 25,912,445 465,000 27,025,826 465,000 12,226,595 Operating, Utility & Capital Funds 101,533,910 69,263,188 34,872,349 71,145,396 34,872,349 99,651,703 Restricted Funds
Lighting & Landscaping District 1 846,316 79,000 - 25,700 - 899,616 Lighting & Landscaping District 2 247,295 40,000 - 28,000 - 259,295 Lighting & Landscaping District 3 2,156,084 416,000 - 145,000 - 2,427,084 Community Facilities Districts 200,684 235,000 - 40,000 - 395,684 Affordable Housing 11,795,129 600,000 - - - 12,395,129
Traffic Impact Fee Fund 12,643,950 6,380,050 - 6,235,050 - 12,788,950 Community Facilities Fee Fund 23,161,126 7,614,921 - 7,464,921 - 23,311,126 Total Restricted Funds 51,050,584 15,364,971 - 13,938,671 - 52,476,884 Total Funds 152,584,494 84,628,159 34,872,349 85,084,067 34,872,349 152,128,587 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 60

DISCUSSION
The total fund balance of fiscal year 2026/27 budget is projected to be $152 million, which is a $456 thousand decrease. The 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 revenues continue to outgrow expenditures year over year, yet the General Fund balance is only increasing $1.1 million in fiscal year 2026/27 due to the subsidies that are required from the Special Assessment and Special Revenue Funds. The Special Assessment and Special Revenue Funds are relying on subsidies from the General Fund to fund roughly $10.5 million in expenditures. The majority of those funds are being used by capital projects in fiscal year 2026/27. The General Fund is still projecting a $74.3 million fund balance at June 30, 2027.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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 paying 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 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
TIF Impact Fee
Interest income 304,025 430,028 150,000 150,000
Impact mitigation fee 3,672,328 10,493,465 2,799,038 6,230,050 CFF Impact Fee
Interest income 579,088 792,918 150,000 150,000
Loan repayment 23,326 12,207 - -
Impact mitigation fee 5,430,983 12,767,400 2,802,289 7,464,921 Water Debt Service
Utility service fee-pledged facility 5,473,782 5,915,255 6,181,442 6,469,104 Wastewater Debt Service
Utility service fee-pledged facility 4,117,147 4,974,501 5,103,838 5,341,353 Storm Debt Service
Utility service fee-pledged facility 1,459,724 1,524,661 1,585,647 1,659,438 Total 21,060,403 36,910,435 18,772,254 27,464,866
Debt Service
TIF Debt payments 2,856,681 12,866,911 2,799,038 6,235,050 CFF Debt payments 470,154 - 2,802,289 7,464,921
Water Debt payments 4,820,136 4,106,215 6,353,972 6,650,104 Wastewater Debt payments 3,729,208 2,932,629 5,237,578 5,487,353 Storm Debt payments 1,316,577 1,019,092 1,641,106 1,722,438 Total Debt Service 13,192,756 20,924,847 18,833,983 27,559,866 Total Expenditures 13,192,756 20,924,847 18,833,983 27,559,866 Item 3.

City of Mountain House | Fiscal Year 2026/27 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 $13.7 million towards the Governmental Activities debt in fiscal year 2026/27. Approximately $1 million will be paid towards the bond’s principal, $5.1 million will be paid to lower the notes payable balance and $7.6 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, 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 bonded debt first. The remaining funds are used to pay notes payable. The City expects to collect and pay roughly $13.9 million towards the Business Type Activities debt in fiscal year 2026/27. Approximately $2 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 2019 series have $27.3 million remaining as of December 31, 2025. The last scheduled bond payment is December 1, 2041.

Balance
Governmental Activities June 30, 2025
Lease revenue bonds 36,965,000
Premium 4,803,078
Pledged notes payable 65,980,770
Long-Term Debt 107,748,848
Balance
Business-type Activities June 30, 2025
Revenue bonds 198,790,000
Premium 12,800,871
Pledged notes payable 1,160,730
Long-Term Debt 212,751,601
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 63
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 $126.9 million remaining as of December 31, 2025. 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 $33.1 million remaining as of December 31, 2025. 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, 2025. The last scheduled bond payment is December 30, 2052.

The City will pay $3.1 million in principal payments and $9.2 million in interest payments for a total of $12.3 million in total bond payments for the 2026/27 fiscal year.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 64
Summary of Transfers

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
Transfers In
Special Tax # 1 - Roads - - 3,129,616 7,168,685
Special Tax # 2 - Public Safety 2,651,496 3,619,521 5,193,397 5,960,347 Special Tax # 3 - Parks 2,273,012 2,836,083 4,769,144 6,326,055 Special Tax # 4 - Public Works 189,568 - - 1,551,851
Development Services 945,656 2,684,133 2,516,860 3,300,411 Gas Tax - - - -
Water O & M - - 2,446,112 -
Stormwater O & M - - 17,875 -
Roads Capital Projects 837,764 1,136,609 1,874,000 3,775,000 Equipment/Vehicles Capital Proj 230,000 655,000 4,831,444 1,500,000 Public Safety Capital Projects 595,073 700,000 - -
Parks Capital Projects 280,000 420,000 420,000 1,100,000 Public Works Capital Projects 450,000 450,000 50,000 3,725,000 Measure K Capital Projects - 588,391 - -
Water Capital Projects 2,200,000 1,580,000 1,600,000 -
Wastewater Capital Projects 300,000 - - 75,000
Stormwater Capital Projects 280,000 430,000 - -
Water Debt Service - - 172,530 181,000
Wastewater Debt Service - - 133,740 146,000
Stormwater Debt Service - - 55,459 63,000
Total Transfers In 11,232,569 15,099,737 27,210,177 34,872,349 Transfers Out
General Fund 945,656 3,189,133 6,259,823 10,469,096
Special Tax # 1 - Roads 6,181,840 7,592,213 11,236,541 13,838,253 Special Tax # 2 - Public Safety 595,073 700,000 - -
Special Tax # 3 - Parks 280,000 420,000 420,000 1,100,000 Special Tax # 4 - Public Works 450,000 450,000 50,000 1,952,535 Gas Tax - - - 499,454
Measure K - 588,391 600,000 731,587
Regional Traffic Impact Fee - - - 1,590,460
Local Transportation Fund - - - 3,875,964
Grant Fund - - - 350,000
Water O & M 2,200,000 1,580,000 1,772,530 181,000
Wastewater O & M 300,000 - 133,740 221,000
Stormwater O & M 280,000 430,000 55,459 63,000
Community Facilities Fee Fund - 150,000 6,682,084 -
Total Transfers Out 11,232,569 15,099,737 27,210,177 34,872,349 Net Transfers - - - -
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 65
FY 2026/27 Budgeted Transfers

TRANSFERS IN TRANSFERS OUT
Operating Subsidies
General Fund - 10,469,096
Special Tax No. 1: Roads 7,168,685 -
Development Services 3,300,411 -
Special Tax No. 1: Roads - 13,838,253
Special Tax No. 2: Public Safety 5,960,347 -
Special Tax No. 3: Parks 6,326,055 -
Special Tax No. 4: Public Works 1,551,851 -
Water O & M - 181,000
Wastewater O & M - 146,000
Stormwater O & M - 63,000
Water Debt Service 181,000 -
Wastewater Debt Service 146,000 -
Stormwater Debt Service 63,000 -
Total Operating Transfers 24,697,349 24,697,349
CIP Transfers
Special Tax No. 3: Parks - 1,100,000
Special Tax No. 4: Public Works - 1,952,535
Gas Tax 499,454
Measure K - 731,587
Regional Traffic Impact Fee - 1,590,460
Local Transportation Fund 3,875,964
Grant Fund 350,000
CIP - Roads 3,775,000 -
CIP - Equipment & Vehicles 1,500,000 -
CIP - Parks 1,100,000 -
CIP - Public Works 3,725,000 -
Wastewater O & M - 75,000
Wastewater Capital Projects 75,000 -
Total CIP Transfers 10,175,000 10,175,000
Total Transfers 34,872,349 34,872,349
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 66
FY 2026/27 Expenditures by Fund

PERSONNEL

SERVICES

OPERATIONS &

MAINTENANCE

CAPITAL
OUTLAY
DEBT

SERVICE TOTAL
General Funds
General Fund 1,706,111 1,946,182 - - 3,652,293
Traffic Impact Fee Program - 65,000 - - 65,000
Community Facility Fee Program - 50,000 - - 50,000
Total General Funds 1,706,111 2,061,182 - - 3,767,293
Special Assessment Funds
Special Tax # 1 - Roads 1,155,328 3,610,969 - - 4,766,297 Special Tax # 2 - Public Safety - 11,747,056 - - 11,747,056 Special Tax # 3 - Parks 2,194,850 4,161,041 1,100,000 - 7,455,891 Special Tax # 4 - Public Works 709,499 633,123 1,952,535 - 3,295,157 Total Special Assessment Funds 4,059,677 20,152,189 3,052,535 - 27,264,401 Special Revenue Funds
Development Services 2,568,205 2,512,206 - - 5,080,411
Gas Tax - 960,000 499,454 - 1,459,454
Measure K - - 731,587 - 731,587
Local Transportation Fund - - 3,875,964 - 3,875,964
Grant Fund - - 350,000 - 350,000
Regional Traffic Impact Fee - - 1,590,460 - 1,590,460
Total Special Revenue Funds 2,568,205 3,472,206 7,047,465 - 13,087,876 Utility Funds
Water O & M 992,866 5,286,579 - - 6,279,445
Water Capital Projects - - 1,590,000 - 1,590,000
Water Debt Service - - - 6,650,104 6,650,104
Wastewater O & M 955,950 3,225,123 - - 4,181,073
Wastewater Capital Projects - - 75,000 - 75,000
Wastewater Debt Service - - - 5,487,353 5,487,353
Stormwater O & M 334,537 705,876 - - 1,040,413
Stormwater Capital Projects - - - - -
Stormwater Debt Service - - - 1,722,438 1,722,438
Total Utility Funds 2,283,353 9,217,578 1,665,000 13,859,895 27,025,826 Operating, Utility & Capital Funds 10,617,346 34,903,155 11,765,000 13,859,895 71,145,396 Restricted Funds
Lighting & Landscaping Dist. 1 - 25,700 - - 25,700
Lighting & Landscaping Dist. 2 - 28,000 - - 28,000
Lighting & Landscaping Dist. 3 - 145,000 - - 145,000
Community Facilities Districts - 40,000 - - 40,000
Traffic Impact - - - 6,235,050 6,235,050
Community Facilities - - - 7,464,921 7,464,921
Total Restricted Funds - 238,700 - 13,699,971 13,938,671 Total Funds 10,617,346 35,141,855 11,765,000 27,559,866 85,084,067 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 67
FY 2026/27 Expenditures by Department

PERSONNEL

SERVICES

OPERATIONS &

MAINTENANCE

CAPITAL
OUTLAY
DEBT

SERVICE TOTAL

DEPARTMENTS
Administration 1,074,906 424,697 - - 1,499,603
Legal Services - 15,000 - - 15,000
City Counsel - - - - -
Human Resources - - - - -
Risk Management - - - -
Finance 216,653 218,599 - - 435,252
Customer Service 779,664 1,062,473 - - 1,842,137
Information Technology 34,137 13,488 - - 47,625
Public Works 1,585,853 1,485,769 - - 3,071,622
Regulatory/Compliance 487,508 620,651 - - 1,108,159
Impact Fee Programs - 50,000 - - 50,000
Operations and Maintenance 3,206,117 15,395,043 - - 18,601,160 Community Development 1,182,731 3,019,659 - - 4,202,390 Code Compliance 783,586 210,705 - - 994,291
Recreation 1,266,191 967,375 - - 2,233,566
Library - 230,000 - - 230,000
Law Enforcement - 5,625,901 - - 5,625,901
Fire & Emergency Service - 5,777,495 - - 5,777,495
Emergency Preparedness - 25,000 - - 25,000
Debt Service - - - 27,559,866 27,559,866
Capital Improvement Program - - 11,765,000 - 11,765,000 Totals 10,617,346 35,141,855 11,765,000 27,559,866 85,084,067 Item 3.

City of Mountain House | Fiscal Year 2026/27 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 2026/27 fiscal year is $68,752,656 a 11.4% increase from the prior fiscal year. This is roughly 2 times the anticipated District revenues subject to the limit for the 2026/27 fiscal year. This trend is expected to continue for the foreseeable future.

FY 2024/25 FY 2025/26
Population Increase 1.0119 1.0463
CPCPI 1.0362 1.0644
Growth factor: 1.0485 1.1137
City Appropriation Limit 61,733,551 68,752,656
Fiscal Year 2025/26 Appropriation Limit
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 69
Department Budgets
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 70
Expenditures by Department & Division

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

PERSONNEL
Administration Department 1,292,352 1,690,286 2,466,956 2,908,485 City Council Division 239,264 304,223 341,830 386,734
Human Resource Division 25,355 225,037 270,880 305,661
Risk Management Division 12,681 11,844 14,257 16,087
Finance Department 1,414,417 1,172,550 1,611,059 1,910,540 Customer Service Division 190,242 172,564 402,352 426,521 Information Technology Division 111,742 48,814 58,514 68,002 Public Works Department 735,781 655,952 784,959 867,555 Community Development Department 1,251,928 1,455,345 986,018 997,140 Regulatory & Compliance Division 222,718 214,886 270,558 284,747 Code Compliance Division 505,707 613,934 552,301 672,265 Operations & Maintenance Department 947,269 841,508 1,350,376 1,753,933 Recreation Department 338,453 345,481 527,648 692,680
Total Personnel 7,287,909 7,752,424 9,637,708 11,290,350

OPERATIONS AND MAINTENANCE
Administration Department 541,208 468,683 710,171 880,000 Legal Service Division 379,543 485,567 504,529 545,000
City Council Division 22,656 251,200 155,200 368,900
Human Resource Division 25,972 66,492 246,241 197,113
Risk Management Division 694,375 821,918 1,008,300 1,212,100 Finance Department 430,719 2,792 633,086 742,200
Customer Service Division 555,063 534,837 691,344 754,428 Information Technology Division 258,482 326,515 410,823 451,000 Public Works Department 402,962 431,103 692,295 859,200 Regulatory & Compliance Division 131,595 148,603 391,687 444,000 Impact Fee Programs Division - - 20,000 50,000
Operations & Maintenance Department 10,622,465 11,400,188 15,016,452 14,128,310 Community Development Department 516,487 2,262,542 2,373,000 2,859,500 Code Compliance Division 13,865 38,838 44,500 113,600
Recreation Department 220,891 246,169 288,730 467,105
Library Services 193,867 208,908 217,249 230,000
Law Enforcement Services 3,048,114 4,096,446 5,445,241 5,625,901 Fire & Emergency Medical Services 3,555,470 3,602,479 4,934,004 5,777,495 Emergency Preparedness - - - 25,000
Debt Service 13,192,756 20,924,847 18,833,983 27,559,866 Capital Projects 1,717,668 2,584,995 9,475,444 11,765,000 Total Operations and Maintenance 36,524,158 48,903,122 62,092,279 75,055,718 Developer Allocation (1,007,775) (947,974) (1,326,306) (1,262,001) Total 42,804,292 55,707,572 70,403,681 85,084,067
Item 3.

City of Mountain House | Fiscal Year 2026/27 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.

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. - 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 72
- Update personnel policy as needed.
- In connection with the Class and Compensation Study, updating 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. - Provide training for supervisors to minimize risk of employment-related claims.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 73
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. - 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 changes 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.
- 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. - 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. - Offer on-line fillable forms for a variety of services including variances, non-standard vehicle parking, and building permit applications.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 74
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 election-related activities.

PERFORMANCE MEASURES
Measurement
Unit of
Measure
FY 2023/24
Actual
FY 2024/25
Actual
FY 2025/26
Projected
FY 2026/27
Projected
Initiate and execute Prop 218
process for utility rates by June 30
% 100% N/A N/A N/A
nmodified “Clean” Audit Opinion
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 # 7,445 7,590 8,066 8,366
Monthly agendas prepared % 100% 100% 100% 100%
Minutes prepared % 100% 100% 100% 100%
Number of full-time hires # 5 8 11 5
Number of full-time leaving # 1 4 5 2
Legislative records processed # - 158 77 120
City Council Agendas Processed # - 25 20 25
FPPC Filings Process # - 25 23 25
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 75
Administration Department

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 1 - Roads 70,116 86,110 313,314 342,807
Special Tax # 3 - Parks 24,217 28,459 102,934 115,809
Special Tax # 4 - Public Works 47,290 57,286 141,117 155,604 Special Revenue Funds
Development Services 1,554 - - -
Utility Funds
Water O & M 251,004 59,563 280,276 351,984
Wastewater O & M 251,004 59,563 280,276 351,984
Stormwater O & M 78,169 59,563 146,261 181,415
Total 723,603 350,547 1,264,178 1,499,603

EXPENDITURES
Personnel Services
Personnel 1,292,352 1,690,286 2,466,956 2,908,485
Labor allocation (739,998) (1,424,105) (1,550,983) (1,833,579) Total Personnel Services 552,354 266,181 915,973 1,074,906 Operations and Maintenance
Office supplies 10,451 21,442 17,855 21,000
Office expense - postage 19,792 2,306 3,498 5,000
Office - equipment - 22,373 9,987 10,000
Memberships 31,161 40,181 48,010 50,000
Rents & leases - equipment 13,526 15,436 15,252 17,000
Trans/travel training 4,963 21,685 16,824 15,000
Professional svs 298,112 165,872 333,615 350,000
Publications & legal notices - - - 126,000
Food 223 3,528 5,716 6,500
Utilities 66,178 78,166 86,237 92,500
Maintenance 25,458 22,413 20,251 25,000
Landscaping 7,071 7,117 8,245 10,000
Technology/web/computers 4,490 6,997 81,951 85,000
Security services 5,715 5,324 4,404 5,000
Household exp - janitorial svc 54,068 55,843 58,326 62,000 Overhead allocation (369,959) (384,317) (361,966) (455,303) Total Operations and Maintenance 171,249 84,366 348,205 424,697 Total 723,603 350,547 1,264,178 1,499,603
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 76
Administration Department

BUDGET HIGHLIGHTS
- $25,000 is included for Town Hall maintenance.
- $62,000 is included for Town Hall janitorial and related expenses. - $350,000 is included for outside consulting.
- $92,500 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.

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. - Ensured aspects of labor agreements are implemented including cost of living increases, step increases and performance evaluations.
- Worked with Finance staff to oversee an in-house payroll system; secured a suite of benefits including health, dental, vision, and life insurance; retirement; and deferred compensation.
- Completed a Classification and Compensation study.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 77
- 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.

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 7,500+ 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 78
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.

Communications
- Continued expanding and improving the City’s communications strategy to support transparency, public engagement, emergency communications, and resident access to information.
- Maintained and enhanced the City website through CivicPlus, including ongoing updates to improve navigation, accessibility, consistency, and user experience. Staff continued reorganizing webpages, simplifying public information, and creating more user-friendly online services for residents.
- Expanded the City’s social media presence and digital outreach efforts across multiple platforms to provide timely updates on City projects, public safety information, events, meetings, road closures, recreation programs, and community initiatives. - Increased community engagement through the use of Rep’d, the City’s online engagement platform, allowing residents to participate in surveys, provide feedback, and stay informed on important City initiatives and planning efforts. - Supported major public outreach campaigns and community education efforts related to traffic safety, housing and general plan updates, public works projects, emergency notifications, and community events.
- Implemented and expanded Everbridge emergency notification capabilities to improve real-time communication with residents during emergencies, traffic incidents, service disruptions, and urgent public safety situations.
- Developed and distributed digital newsletters, media releases, graphics, videos, and community updates to improve communication and strengthen public awareness of City programs and services.
- Continued development of online forms, digital workflows, and interactive web features to improve customer service, streamline public access to information, and reduce administrative processing time.
- Utilized data analytics and engagement tools, including Placer.ai and website analytics, to better understand community trends, improve outreach effectiveness, and support data-driven communication strategies.
- Coordinated communication support for City Council initiatives, public meetings, ribbon cuttings, groundbreakings, public safety campaigns, and community engagement events throughout the year.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $545,000 is included for the City’s legal counsel.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Utility Funds
Water O & M 28,312 8,963 - 15,000
Total 28,312 8,963 - 15,000

EXPENDITURES
Operations and Maintenance
Legal services 379,543 485,567 504,529 545,000
Overhead allocation (351,231) (476,604) (504,529) (530,000) Total Operations and Maintenance 28,312 8,963 - 15,000
Total 28,312 8,963 - 15,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $200,000 is included for City’s public relationship software programs, new public records request software, and IT improvements.
- $55,000 is included for travel, training, and conferences. - $60,000 is included for consulting services.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

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

EXPENDITURES
Personnel Services
Personnel 239,264 304,223 341,830 386,734
Labor allocation (239,264) (304,223) (341,830) (386,734) Total Personnel Services - - - -
Operations and Maintenance
Office expense-supplies 1,054 1,985 3,000 7,900
Trans/travel training - 47,686 50,000 55,000
Professional services 1,946 4,544 7,000 60,000
Technology/web/computers 14,480 85,271 85,000 200,000
Publications & legal notices 983 1,116 700 1,500
Elections - 102,357 - 35,000
Software & related licenses 1,850 2,876 3,500 3,500
Food 2,343 5,365 6,000 6,000
Overhead allocation (22,656) (251,200) (155,200) (368,900) Total Operations and Maintenance - - - -
Total - - - -
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $142,000 is included for human resource consulting.
- $30,000 is included for the recruitment of new employees. - $6,500 is included for pre-employment testing and screening.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

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

EXPENDITURES
Personnel Services
Personnel 25,355 225,037 270,880 305,661
Labor allocation (25,355) (225,037) (270,880) (305,661) Total Personnel Services - - - -
Operations and Maintenance
Technology - - 14,462 12,663
Trans/travel training - - - 2,500
Clothing & personal supplies - - - 2,000
Pre-employment testing 699 4,209 2,500 6,500
Human resources consulting 225 59,144 228,478 142,000
Publications & legal notices 995 3,139 801 1,200
Recruitment 24,053 - - 30,000
Equipment - office - - - 250
Overhead allocation (25,972) (66,492) (246,241) (197,113) Total Operations and Maintenance - - - -
Total - - - -
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $109,000 is included for Workers' Compensation.
- $117,600 is included for risk management consulting.
- $935,000 is included for insurance.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

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

EXPENDITURES
Personnel Services
Personnel services 12,681 11,844 14,257 16,087
Labor allocation (12,681) (11,844) (14,257) (16,087)
Total Personnel Services - - - -
Operations and Maintenance
Trans/travel training - - - 500
Professional Services 85,422 180,363 102,000 117,600
Insurance - workers comp 57,615 110,761 118,800 109,000 Insurance - fire & liability 551,338 530,794 787,500 935,000 Equipment - office - - - 50,000
Overhead allocation (694,375) (821,918) (1,008,300) (1,212,100) Total Operations and Maintenance - - - -
Total - - - -
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 83
Finance Division

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Traffic Impact Fee Program - 4,000 5,000 5,000
Special Assessment Funds
Special Tax # 1 - Roads 21,999 22,752 24,336 28,000
Special Tax # 2 - Public Safety 21,999 22,752 24,336 28,000 Special Tax # 3 - Parks 8,102 8,594 9,437 12,000
Special Tax # 4 - Public Works 8,520 9,028 9,902 12,000 Special Revenue Funds
Development Services 22,983 - - -
Restricted Funds
Lighting & Landscaping District 1 597 614 633 1,000
Lighting & Landscaping District 2 403 403 403 1,000
Lighting & Landscaping District 3 3,731 3,842 3,958 5,000 Community Facilities Districts - - 34,227 40,000
Utility Funds
Water O & M 352,200 85,626 110,015 126,938
Wastewater O & M 352,185 85,626 109,515 125,938
Stormwater O & M 133,387 34,250 44,055 50,376
Total 926,106 277,487 375,817 435,252

EXPENDITURES
Personnel Services
Personnel 1,414,417 1,172,550 1,611,059 1,910,540
Labor allocation (757,362) (1,016,505) (1,420,485) (1,693,887) Total Personnel Services 657,055 156,045 190,574 216,653 Operations and Maintenance
Memberships 1,523 2,664 3,700 3,700
Trans/travel training - 3,345 5,335 7,000
Professional services - 4,000 5,000 5,000
Auditors drct assmt serv chg 65,366 67,985 77,732 94,000 Tax administrative charges 111,587 117,703 130,000 137,000 Financial/mgt services 87,626 89,326 170,386 239,000
Special departmental expense 3,344 538 2,160 2,500
Software & related licenses 16,966 23,072 35,173 35,000 County indirect cst charges-a-87 141,737 (306,460) 200,000 215,000 Taxes & assessments 2,570 619 1,600 2,000
Equipment - - 2,000 2,000
Overhead allocation (161,668) 118,650 (447,843) (523,601) Total Operations and Maintenance 269,051 121,442 185,243 218,599 Total 926,106 277,487 375,817 435,252
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 84

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
- $137,000 is included for San Joaquin County collection charge for property taxes. - $94,000 is included for San Joaquin County Auditors direct assessment service charges. - $215,000 is included for San Joaquin County indirect charges. - $239,000 is included for the annual audit of the City’s financial statements, OpenGov, and Proposition 218 study.
- $35,000 is included for the accounting software Tyler Technologies.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $744,828 is included for utility billing services.
- $2,500 is included for postage to utility customers.
- $2,800 is included for office supplies for liens and notices.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 137,546 160,381 263,151 280,156
Utility Funds
Water O & M 395,955 404,828 725,640 781,212
Wastewater O & M 308,207 315,357 610,828 662,884
Stormwater O & M 72,167 55,389 101,415 117,885
Total 913,875 935,955 1,701,034 1,842,137

EXPENDITURES
Personnel Services
Personnel 190,242 172,564 402,352 426,521
Labor allocation 83,660 132,021 329,143 353,143
Total Personnel Services 273,902 304,585 731,495 779,664 Operations and Maintenance
Printing 185 - 2,507 3,300
Office expense-supplies 144 2,171 2,282 2,800
Postage 1,642 - 1,507 2,500
Trans/travel training - - 750 1,000
Utility billing/metering 553,092 532,666 684,298 744,828 Overhead allocation 84,910 96,533 278,195 308,045
Total Operations and Maintenance 639,973 631,370 969,539 1,062,473 Total 913,875 935,955 1,701,034 1,842,137
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 86
Information Technology Division

DIVISION SUMMARY
The Information Technology Division is responsible for the technological 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 can serve the City’s residents.

BUDGET HIGHLIGHTS
- $260,000 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 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Utility Funds
Water O & M 24,605 8,033 12,514 15,875
Wastewater O & M 24,605 8,033 12,514 15,875
Stormwater O & M 6,837 8,033 12,514 15,875
Total 56,046 24,099 37,542 47,625

EXPENDITURES
Personnel Services
Personnel 111,742 48,814 58,514 68,002
Labor allocation (68,956) (30,517) (31,241) (33,865)
Total Personnel Services 42,786 18,297 27,273 34,137
Operations and Maintenance
Communication 54,293 57,922 58,670 61,000
Comm svs-cell phone 11,242 12,743 14,298 16,000
Rents & leases-equipment 11,193 18,514 22,236 25,000
Technology/web/computers 20,775 24,177 24,239 27,000
Software & related licenses 45,926 44,595 49,573 52,000 Data processing charges 115,053 168,564 231,950 260,000 Equipment - office - - 9,857 10,000
Overhead allocation (245,222) (320,713) (400,554) (437,512) Total Operations and Maintenance 13,260 5,802 10,269 13,488 Total 56,046 24,099 37,542 47,625
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 87
Public Works Department

DEPARTMENT SUMMARY
The Public Works Department is responsible for the planning, delivery, and maintenance of the City’s infrastructure and public facilities. The department oversees both publicly funded capital projects and privately constructed improvements, ensuring that infrastructure systems are safe, reliable, and built to support continued community growth.

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 – Oversees construction inspection, project administration, and acceptance of new public infrastructure.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 88

GOALS AND OBJECTIVES
Department Wide
- Maintain full regulatory compliance through standardized procedures and document management.
- Invest in workforce development and training across all divisions. - Expand community engagement and transparency through GOGov, public dashboards, and outreach tools.

Engineering
- Implement a comprehensive Traffic Calming Program and establish a Traffic Management Center.
- Improve roadway safety through data-driven strategies and performance metrics. - Enhance transparency through interactive tracking of transportation and capital projects.
- Pursue state and federal funding opportunities, including the Byron Highway Widening Project.
- Maintain and update construction standards and specifications. - Advance local and regional transit planning initiatives. - Deliver the City’s Five-Year Capital Improvement Program on schedule and within budget.
- Support deployment of small cell and emerging wireless infrastructure. - Implement a pavement management system to extend roadway life and optimize maintenance investments.
- Improve coordination of permitting and regulatory compliance for Public Works projects.

Operations & Maintenance
- Implement and maintain the City’s tree program and tree ordinance. - Advance fleet management practices, including transition to low-emission vehicles and preventative maintenance.
- Implement a comprehensive asset management system for facilities, infrastructure, and equipment.
- Develop long-term (10-25 year) assets and service planning aligned with community growth.
- Prioritize park maintenance and equity, including evaluation of alternative materials such as artificial turf.
- Maintain roadway infrastructure, signage, and public facilities to established service levels.
- Enhance community aesthetics through proactive maintenance and rapid response programs.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 89
Utilities Management
- Ensure a sustainable and reliable water supply to support existing and future demand. - Expand and upgrade water treatment and utility infrastructure. - Reduce water loss through proactive maintenance and leak detection. - Maintain compliance with state and federal environmental regulations, including SB 1383.
- Implement integrated asset management for water, wastewater, stormwater, and solid waste systems.
- Deliver utility capital improvement projects aligned with system needs and growth. - Support utility rate studies to ensure long-term financial sustainability. - Pursue state and federal funding opportunities for utility infrastructure investments.

Construction Engineering
- Improve development project acceptance processes and timelines. - Strengthen construction administration, inspection, and documentation practices. - Support delivery of Capital Improvement Program projects. - Implement CUPCCAA processes to enhance project delivery efficiency. - Deliver safety-focused projects, including Highway Safety Improvement Program (HSIP) initiatives.
- Coordinate utility expansions consistent with adopted master plans.

PERFORMANCE MEASURES
Performance measures reflect continued expansion of City infrastructure and service levels associated with community growth.

Measurement
Unit of
Measure
FY 2023/24
Actual
FY 2024/25
Actual
FY 2025/26
Projected
FY 2026/27
Projected
Number of contracts
managed # 14 16 50 60
City buildings
maintained # / sf 18 / 149,733 18 / 149,733 21 / 158,045 28 / 163,000 Number of trees
maintained # 20,000 22,000 29,000 32,000
Centerline road miles
maintained miles 64 73 90 100
Street lights
maintained # 2,600 2,760 2,820 3,000
Signaled intersections
maintained # 14 15 17 18
Miles of sidewalks
maintained miles 135 140 146 200
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 90
Square feet of
landscaping
maintained
sf 10,588,201 11,647,022 11,862,120 12,100,000
Storm & sewer
collection lines
cleaned
miles 37 35 35 35
Catch basins cleaned # 2,276 3,988 4,302 4,600
Valves exercised # 1,900 1,875 1,900 1,950
Hydrants maintained # 1,018 1,061 1,150 1,205
Potable water treated MG 1,444 1,627 1,655 1,700
Wastewater treated MG 576 575 600 650
Biosolids managed dry tons 252 121 269 270
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 91
Public Works Department

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 957,786 1,109,183 1,309,184 1,530,158
Special Assessment Funds
Special Tax # 1 - Roads 128,179 116,625 152,100 396,499 Special Tax # 3 - Parks 61,572 68,949 95,014 107,999
Special Tax # 4 - Public Works 30,785 34,709 101,991 57,000 Special Revenue Funds
Development Services 177,104 193,145 248,645 265,967
Restricted Funds
Lighting & Landscaping District 1 10,128 5,320 9,835 15,000 Lighting & Landscaping District 2 10,741 4,875 9,421 15,000 Lighting & Landscaping District 3 10,114 8,477 14,224 20,000 Utility Funds
Water O & M 311,975 310,613 549,815 409,500
Wastewater O & M 61,572 69,182 95,014 167,999
Stormwater O & M 30,785 34,709 77,301 86,500
Total 1,790,741 1,955,787 2,662,544 3,071,622

EXPENDITURES
Personnel Services
Personnel 735,781 655,952 784,959 867,555
Labor allocation 323,592 501,798 642,553 718,298
Total Personnel Services 1,059,373 1,157,750 1,427,512 1,585,853 Operations and Maintenance
Misc expense - 3,769 - 5,000
Office expense - supplies 816 1,240 1,673 3,000
Memberships 2,120 3,367 3,000 3,200
Trans/travel training 6,064 11,558 4,975 40,000
Professional services 86,291 59,568 311,690 345,000
Engineering-misc 220,805 211,419 283,105 338,500
Grant expense 38,029 47,541 7,980 -
Technology/web/computers 3,340 350 8,000 8,000
GIS monitoring 40,995 80,378 55,300 95,000
Publications & legal notices - 1,515 5,000 6,000
Software & related licenses 4,285 9,063 8,862 12,500
Food 217 1,335 2,710 3,000
Overhead allocation 328,406 366,934 542,737 626,569
Total Operations and Maintenance 731,368 798,037 1,235,032 1,485,769 Total 1,790,741 1,955,787 2,662,544 3,071,622
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 92
Public Works Department

BUDGET HIGHLIGHTS
- $95,000 is included for GIS mapping.
- $345,000 is included primarily for MSA on call contracts. - $338,500 is included for water related studies, engineer’s report, traffic surveys, and other consulting services.
- $40,000 is included for travel and training.

ACCOMPLISHMENTS
Public Works
- Assumed responsibility for floodplain management, establishing the Public Works Director as Floodplain Manager.
- Advanced implementation of the City’s GIS, asset management, and maintenance management systems.
- Implemented a red-light camera program in compliance with state requirements.

Engineering
- Completed the Wicklund Village and Arterial Road Pavement Repair Project, including curb repairs, pavement grinding, overlay, slurry seal, and restriping. - Issued requests for proposals for the Byron Road Pavement Assessment and the City’s first Transit Feasibility Study.
- Implemented the City’s first federally funded project: the Mountain House Parkway Traffic Signal Synchronization Project.
- Positioned six capital projects for regional funding to accelerate delivery of safety and accessibility improvements, including sidewalk replacement, ADA ramp improvements, and traffic safety enhancements.
- Developed the Byron Highway Widening Project for One Voice and submitted a BUILD federal grant application to support future funding.
- Secured approximately $1.8M annually in LTF funding to support transit and transportation priorities.
- Developed a Master Consultant Agreement (MCA) for various engineering tasks to effectively implement on-call projects.
- Completed the Sidewalk Replacement Project design and prepared a bid package for construction.
- Strengthened contract management approach to improve service delivery and cost control.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 93
Operations & Maintenance
- Evaluated storage options for the Community Closet program. - Completed safety inspection repairs at Town Hall and the Library. - Installed new signage and pavement markings in the Town Hall parking lot. - 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.
- Completed repairs at seven damaged sections of sound walls along arterial roadways. - Reviewed design and cost estimates for the proposed Community Garden project.

Utilities Management
- Installed a safety railing to the maintenance room of the splash pad for safe entry and exit.
- Updated plans, protocols, and standard operating procedures for water, wastewater, stormwater, and solid waste compliance.
- Continued to develop and update compliance plans, protocols, and Quality Assurance/Quality Control (QA/QC) programs for water, wastewater, stormwater, and solid waste systems.

Water
- Completed a feasibility study to apply for USBR grant funding. Submitted a $3 million request for Proposition 4 appropriations. Application for the grant is underway and due in April 2026.
- Continued routine regulatory water quality sampling and reporting to the Water Board. - Updated and submitted a revised Water Operations Plan. - Completed a Permit Amendment that increases the Water Treatment Plant from 12.5 MGD to 15 MGD and from a Classification as a Treatment 4 Facility to a Treatment 5 Facility.
- Replaced granular activated carbon and sand in six (6) filter beds at the Water Treatment Plant.
- Completed a Booster Pump Station rehabilitation project at the Water Treatment Plant - Initiated the Aquifer Storage and Recovery program for design, grant funding, and feasibility study.
- Submitted the City’s Lead Service Line Inventory (LSLI) to the California State Water Resources Control Board. Hazard assessments are underway. - Completed a Water Meter Accuracy Testing Program. The Meter testing will begin 26/27 fiscal year.
- Completed and published the 2024 Consumer Confidence Report; initiated the 2025 CCR in compliance with new State regulations.
- Pressure Reducing Valves have been installed to allow continued growth.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 94
Wastewater
- Completed Permit Amendment to increase wastewater flow to 5.4 MGD. - Participated in early detection sampling programs in partnership with the Department of Public Health.

Stormwater
- Supported environmental stewardship activities through ongoing community education and regulatory participation.
- Completed a biological study for the Creek Restoration Program and are under design for repairs.

Solid Waste
- Advanced solid waste and recycling programs, including SB 1383 compliance initiatives for schools and commercial accounts
- Purchased required procurement of compost and will develop a giveaway program.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $55,000 is included for fees related State and Federal requirements. - $124,000 is included for County and State permit fees. - $175,000 is included for wastewater collection system contractor related repairs.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 285,672 352,180 479,986 518,928
Special Assessment Funds
Special Tax # 1 - Roads 3,089 1,811 14,687 28,000
Special Revenue Funds
Development Services 84,015 99,897 136,240 145,231
Utility Funds
Water O & M 63,459 67,660 108,500 113,500
Wastewater O & M 51,449 61,058 158,000 177,000
Stormwater O & M 13,598 18,074 110,500 125,500
Total 501,282 600,680 1,007,913 1,108,159

EXPENDITURES
Personnel Services
Personnel 222,718 214,886 270,558 284,747
Labor allocation 70,334 138,751 188,140 202,761
Total Personnel Services 293,052 353,637 458,698 487,508 Operations and Maintenance
Memberships 8,847 9,118 10,500 12,500
Professional services 15,100 20,924 165,000 175,000
Engineering-miscellaneous 18,685 6,500 76,187 77,500
State health department 41,298 46,576 50,000 55,000
Permits & fees 47,665 60,975 90,000 124,000
Overhead allocation 76,635 98,440 157,528 176,651
Total Operations and Maintenance 208,230 247,043 549,215 620,651 Total 501,282 600,680 1,007,913 1,108,159
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 96
Impact Fee Programs Division

DIVISION SUMMARY
The Impact Fee Programs Division administers the programs designed to improve 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 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

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

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Legal services - - 10,000 25,000
Engineering-miscellaneous - - 10,000 25,000
Total Operations and Maintenance - - 20,000 50,000
Total - - 20,000 50,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 97
Operations & Maintenance Division

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 321,981 423,567 668,984 855,583
Special Assessment Funds
Special Tax # 1 - Roads 1,986,803 2,226,480 3,385,380 3,970,991 Special Tax # 2 - Public Safety 113,347 158,303 229,164 290,660 Special Tax # 3 - Parks 1,981,281 2,025,561 3,416,910 3,656,517 Special Tax # 4 - Public Works 475,547 526,871 861,577 1,118,018 Special Revenue Funds
Gas Tax 1,350,194 1,396,112 1,959,000 960,000
Restricted Funds
Lighting & Landscaping District 1 10,296 10,296 9,326 9,700 Lighting & Landscaping District 2 - - 8,000 12,000
Lighting & Landscaping District 3 12,729 17,663 95,000 120,000 Utility Funds
Water O & M 3,678,896 4,071,289 4,740,673 4,465,436
Wastewater O & M 1,936,933 2,110,783 2,529,814 2,679,393 Stormwater O & M 541,117 389,264 502,514 462,862
Total 12,409,124 13,356,189 18,406,342 18,601,160

EXPENDITURES
Personnel Services
Personnel 947,269 841,508 1,350,376 1,753,933
Labor allocation 416,591 643,763 1,105,836 1,452,184
Total Personnel Services 1,363,860 1,485,271 2,456,212 3,206,117 Operations and Maintenance
Communications 12,020 13,518 17,418 18,600
Memberships 931 845 1,000 1,000
Maintenance-equipment - 490 8,000 18,000
Signal maintenance 50,614 153,641 178,409 150,000
Street light maintenance 102,352 105,980 129,000 180,000 Gasoline 15,000 15,030 45,000 50,000
Truck upkeep 8,655 11,856 28,066 17,000
Trans/travel training 11,854 10,647 14,000 22,000
Professional services 2,261,018 2,635,815 2,913,683 3,001,000 Refuse disposal charges 122,099 37,283 50,000 50,000
Engineering-miscellaneous - - 100,000 100,000
Technology/web/computers 152 - 3,000 3,000
Road maintenance 1,049,066 1,183,300 1,250,000 200,000
Chemicals 483,833 284,086 - -
Software and related services - - - 8,000
Clothing & personal supplies 2,775 2,125 2,200 4,000
Utilities-street lighting 257,707 288,725 304,819 335,300 Utilities-traffic signals 15,059 18,353 16,000 40,000
Utilities-water 902,969 1,267,143 1,339,000 1,379,170
Irrigation water 584,282 665,263 712,270 819,116
Utilities-electricity 822,427 1,155,729 1,247,821 1,297,811 Maint-structure & grounds 736,942 519,517 2,170,000 1,490,000 Maint & repair - collection systems 444,157 345,795 380,000 380,000 Household exp - janitorial service 82,362 76,549 247,414 300,000 Landscaping 2,168,851 2,052,726 3,182,571 3,505,400
Small tools & instruments 6,697 6,556 6,000 6,000
Pledge facility payments 367,296 390,913 438,617 450,253 Public Safety 113,347 158,303 229,164 290,660
Equipment - - 3,000 12,000
Overhead allocation 422,799 470,730 933,678 1,266,733
Total Operations and Maintenance 11,045,264 11,870,918 15,950,130 15,395,043 Total 12,409,124 13,356,189 18,406,342 18,601,160
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 98

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
- $3,505,400 is included for landscaping and tree maintenance. - $3,001,000 is included for operations of the water and wastewater facilities. - $1,297,811 is included for electricity for the utility plants and streetlights. - $1,179,170 is included for the purchase of raw water.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 99
Community Development Department

DEPARTMENT SUMMARY
The Community Development Department (CDD) oversees Planning and Entitlement, Development Engineering, Building and Safety, and Code Enforcement services. The department facilitates development review, permitting, and inspection services while ensuring compliance with City standards, regulations, and adopted policies.

CDD plays a central role in guiding community growth by balancing economic development, infrastructure delivery, and quality-of-life considerations. The department is committed to providing responsive, professional service while ensuring that new development contributes to the long-term sustainability of the community.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 100

GOALS AND OBJECTIVES
Department Wide
- Deliver efficient, transparent, and high-quality development review services. - Modernize permitting, inspection, and code enforcement processes through digital tools and standardized procedures.
- Advance major long-range planning efforts, including the General Plan, Housing Element, and updates to master planning documents.
- Ensure development contributes equitably to infrastructure and public facilities through effective fee and financing program administration.
- Strengthen public outreach, education, and compliance with municipal codes and development standards.

Planning and Entitlement Services
- Work collaboratively with project applicants and the development community to facilitate timely submittal and review of applications for proposed new development. - Review-approve architecture and landscape plans, consistent with applicable policy guidance.
- Refine and update procedural guidelines and standard operating procedures for planning processes, application requirements, and other entitlement processes. - Complete cost certification, reimbursement and annexation processes for CFF, TIF, utility infrastructure and CFD projects, including adoption of cost escalation and firstin/first-out priority guidelines. - Update the Municipal Service Review document and submit to San Joaquin County LAFCo.
- Continue coordinating with regional projects, including Route 205 Managed Lanes, and Delta Conveyance Project.
- Update the Master Plan and Specific Plans for the proposed land use and community facility changes.
- Implement interactive development project dashboard.
- Update the Public Land Equity Program and establish procedures for tracking dedicated land and vouchers and identifying surpluses and deficits. - 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
- Coordinate with developers to deliver infrastructure that meets City standards and supports long-term service needs.
- Improve document management and archiving systems.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 101 - Enhance tracking and administration of development agreements and securities. - Standardize agreements, templates, and processes for development projects. - Implement Water and Sewer Master Plan recommendations.

Building and Safety Services
- Enhance online permitting and plan review systems.
- Implement digital archiving of permits and inspection records. - Improve inspection scheduling and service delivery timelines. - Provide ongoing staff training on codes and best practices. - Strengthen coordination with Planning and Code Enforcement to ensure consistent review workflows.
- Improve public-facing dashboards for permit and inspection tracking.

Code Compliance
- Develop and distribute educational materials on code compliance, City Ordinances, Master Restrictions and property maintenance
- Work with developers, builders, and HOAs to host educational forums and re-issue Master Restrictions to property owners, including those in non-HOA areas. - Assist in the development of permitting processes for new commercial development projects.
- Utilization of the new Code module through GOGov for case management and legal notices for property owners and occupants.
- Work with the City Attorney’s office to develop ordinances for property maintenance, quality of life issues, and blight reduction.
- Administer permitting functions associated with Code Compliance, including Encroachment Permits, Requests for Change or Variation of Master Restrictions, Transportation Permits, and related authorizations, ensuring timely processing and alignment with City standards.

PERFORMANCE MEASURES
Measurement
Unit of
Measure
FY
2023/24
Actual
FY
2024/25
Actual
FY
2025/26
Projected
FY
2026/27
Projected
Number of building permits
issued # 250 572 240 300
Number of hours billed # 4,425 5,357 5,505 5,500
Number of non-residential
permits completed # 3 1 1 2
Complete CFF/TIF update % 100% 100% 100% 100%
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 102 Community Development Department

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 1,267,442 155,691 125,316 353,866
Traffic Impact Admin 41,854 25,223 30,000 30,000
Community Facilities Admin 41,854 25,223 30,000 30,000
Special Assessment funds
Special Tax # 1 - Roads 72,526 - - -
Special Revenue Funds
Development Services 351,652 4,538,632 3,460,209 3,788,524 Utility Funds
Water O & M 72,526 - - -
Wastewater O & M 48,352 - - -
Stormwater O & M 24,176 - - -
Total 1,920,382 4,744,769 3,645,525 4,202,390

EXPENDITURES
Personnel Services
Personnel 1,251,928 1,455,345 986,018 997,140
Labor allocation 25,848 626,292 166,049 185,591
Total Personnel Services 1,277,776 2,081,637 1,152,067 1,182,731 Operations and Maintenance
Office expense - supplies 1,613 2,478 3,300 6,000
Software & related licenses 4,748 38 4,000 32,000
Memberships 1,227 975 5,000 8,000
Small tools & instruments 46 374 800 1,000
MHCSD plan checking 7,255 7,255 15,000 27,000
Technology/web/computers 2,941 3,023 5,000 20,000
GIS monitoring 52,476 51,345 25,000 50,000
Development services - 1,504,710 900,000 1,000,000
General plan - - 125,000 275,000
Trans/travel training 3,145 2,121 12,000 30,000
Equipment - office - - 2,500 15,000
Professional services 442,985 355,259 860,000 960,000
Office expense - shipping 51 474 400 500
Inspection/testing - - 15,000 35,000
Plan checking - 334,490 400,000 400,000
Overhead allocation 126,119 400,590 120,458 160,159
Total Operations and Maintenance 642,606 2,663,132 2,493,458 3,019,659 Total 1,920,382 4,744,769 3,645,525 4,202,390
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 103 Community Development Department

BUDGET HIGHLIGHTS
- $50,000 is included for GIS projects.
- $400,000 is included for planning services.
- $1,000,000 is included for building inspection and safety services. - $960,000 is included for outside consulting.

ACCOMPLISHMENTS
Community Development
- Completed updates to the Community Facilities Fee (CFF) and Traffic Impact Fee (TIF) programs.
- Partnered with consultants and developers to form Community Facilities Districts (CFDs) to fund parks and infrastructure improvements.
- Began development of the City’s first General Plan and engaged with the public in the process.

Planning and Entitlement
- Continued to develop 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.
- Awarded a consultant contract for the City’s General Plan update. - Awarded a consultant contract for the City’s Housing Element update. - Adopted an updated Development Title (Municipal Code Title 9).

Development Engineering
- Reviewed and approved civil and infrastructure improvement plans (including grading, joint trench, streetlighting, landscape, and traffic signal improvements) for multiple residential tracts, including: Tracts 4040 (A7), 3609 (A5), 3610 (B1), 3619 (B6-B8), 3618 (B11), 4210-4211 (Neighborhood F), 4212 & 4216 (Neighborhood H), 3926 (Neighborhood K), and 4191-4202 (Neighborhood I).
- Advanced review and approval of major arterial roadway improvements, including Central Parkway, Great Valley Parkway, and Todarmal Parkway. - Reviewed and approved improvement plans for key park and community facilities, including Central Park Dog Park, Tennis Complex, Amphitheater, and multiple neighborhood and linear parks (A5, A7, Neighborhood J, and Railroad Buffer Trail).

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 104 - Verified final maps and prepared subdivision and off-site improvement agreements for active development tracts, including 4194, 4200, 4201, 4202, 4210, 4211, 4212, and 4216, supporting continued infrastructure delivery.
- Prepared conditions of approval for new development projects, including Tract 3557 (Neighborhoods B9 and B10).

Building and Safety Services
- Continued to establish a fully functioning Building Department, including onboarding consultants, developing applications and procedures, processing building permits, and performing construction inspections.

Code Compliance
- Developed procedures and distributed informational materials to enhance public understanding of municipal code requirements.
- Updated GOGov services to include Code Enforcement Module and Permit Module. - Implemented an electronic citation system (Data Ticket) for issuance of parking citations and administrative citations.
- Update City Ordinances to authorize Public Safety Security to issue parking citations and administrative citations in support of Code Compliance. - Ensured all members of Code Compliance have successfully completed training requirements for State certification under CACEO (California Association of Code Enforcement Officers).
- Hosted community workshops to educate residents in City Ordinances and Master Restrictions.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 105 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
- $62,600 is included for Turbo Data and code enforcement software. - $15,000 is included for building code seminars.
- $18,000 is included for travel and training.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
General Funds
General Fund 557,815 226,214 44,500 113,602
Special Revenue Funds
Development Services 409,879 759,999 718,930 880,689
Total 967,694 986,213 763,430 994,291

EXPENDITURES
Personnel Services
Personnel 505,707 613,934 552,301 672,265
Labor allocation 222,405 192,605 90,255 111,321
Total Personnel Services 728,112 806,539 642,556 783,586 Operations and Maintenance
Office expense - supplies 2,525 1,899 2,500 15,000
Memberships 50 370 500 3,000
Transportation/travel training 3,743 10,583 10,000 18,000 Software & related licenses 6,058 25,265 30,000 62,600
Clothing & personal supplies 1,076 578 800 8,000
Small tools & instruments 413 143 700 7,000
Overhead allocation 225,717 140,836 76,374 97,105
Total Operations and Maintenance 239,582 179,674 120,874 210,705 Total 967,694 986,213 763,430 994,291
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 106 Recreation Department

DEPARTMENT SUMMARY
The Recreation Department provides leadership, planning, and delivery of recreation programs, events, and services that enhance community engagement and quality of life. The department manages facility rentals, registration services, and programming for youth, adults, and seniors, while overseeing event operations, partnerships, and program budgets.

GOALS AND OBJECTIVES
- Develop and implement a Cost Recovery Policy and comprehensive Parks and Recreation Master Fee Schedule to promote financial sustainability, establish consistent and equitable pricing structures, and support increased cost recovery across programs, services, and facilities.
- Utilize the Recreation Strategic Plan to guide the development and implementation of recreation programs and special events that effectively engage the community while aligning with available financial and staffing resources.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 107 - Develop and implement a comprehensive marketing and outreach strategy to increase participation in special events and programs, enhance community engagement, and support the growth and sustainability of sponsorship revenue. - Develop and implement comprehensive program and operational plans for the pickleball courts at Central Park, the new tennis center, and the amphitheater to support successful first-year operations, maximize facility utilization, and expand programming and revenue opportunities.
- Hire an additional Recreation Coordinator and three Recreation Leaders to support the operation of new and expanding facilities, including the tennis center, pickleball courts, and amphitheater, while enhancing the department’s capacity to deliver special events, senior programming, marketing initiatives, and administrative functions for a growing community.
- Develop and implement service concessionaire agreements with security providers, inflatable vendors, and other event service providers to support safe and efficient operations at special events and the amphitheater, while enhancing service delivery and ensuring compliance with City standards.
- Establish a concessionaire partnership for event production services at the amphitheater to enhance program quality, improve operational efficiency, and support expanded programming opportunities.

PERFORMANCE MEASURES
- Implement operational plans for the tennis center and amphitheater to achieve a 20– 30% increase in facility usage and program participation within the first year, along with measurable growth in programming, rentals, attendance, and revenue generation. - Improve pre-event coordination and on-site safety measures through enhanced communication and increased security presence to achieve a 15–25% reduction in postevent incidents and safety-related issues. - Implement Community Hosted Special Event Policies and Procedures to improve coordination and reduce operational strain, resulting in a 10–20% reduction in eventrelated service calls and operational issues. - Add an additional Recreation Coordinator to support expanded programming and facility operations, resulting in a 10–20% increase in program participation and contracted program revenue, along with improved cost recovery across programs and facilities.
- Add three Recreation Leaders to support expanded operations and programming, resulting in a 10–15% increase in program delivery capacity and event attendance, along with improved operational efficiency and staff support.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 108 Recreation Department

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 3 - Parks 859,252 1,049,208 1,613,435 2,233,566 Total 859,252 1,049,208 1,613,435 2,233,566

EXPENDITURES
Personnel Services
Personnel 338,453 345,481 527,648 692,680
Labor allocation 148,845 264,300 432,233 573,511
Total Personnel Services 487,298 609,781 959,881 1,266,191 Operations and Maintenance
Memberships 165 510 1,030 1,030
Transportation/travel training 1,500 2,267 5,000 5,000
Publications & legal notices 973 1,443 3,000 3,000
Office supplies - 555 900 900
Miscellaneous expense 9,198 3,087 4,750 4,750
Software & related licenses 21,896 18,977 17,600 19,600 Household - janitorial service 862 15,780 14,875 16,500 Event expense 14,143 16,699 26,343 31,500
Holiday lights 18,653 20,682 24,000 28,000
Classes - fee supported 2,003 1,377 4,465 5,000
Tennis - - - 100,000
Amphitheater - - - 46,000
Independence Day 19,401 21,528 23,500 26,000
Music in the park 87,215 111,012 123,750 140,000
Kite festival 12,576 12,427 15,000 15,000
Central Park cinema - 3,152 6,875 6,875
Community meetings 2,043 339 400 400
Unity Center 28,383 12,851 10,000 10,000
Security services - - 3,000 3,300
Trunk-or-Treat - - 242 250
Bike rodeo 1,880 3,483 4,000 4,000
Overhead allocation 151,063 193,258 364,824 500,270
Total Operations and Maintenance 371,954 439,427 653,554 967,375 Total 859,252 1,049,208 1,613,435 2,233,566
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 109

BUDGET HIGHLIGHTS
- $140,000 is included for music in the park events.
- $100,000 is included for tennis.
- $46,000 is included for the amphitheater.
- $26,000 is included for the Independence Day event.

ACCOMPLISHMENTS
- Developed and implemented a Sponsorship, Donation, and Advertising Policy to offset program and event costs, reduce reliance on the General Fund, and diversify revenue. - Established a Community Special Events Policy to ensure appropriate park use, enhance safety, and support long-term facility maintenance.
- Created and standardized departmental SOPs to improve operational consistency and transparency, utilizing AI tools (SCRIBE) for clear, user-friendly documentation. - Recruited and onboarded an additional Recreation Coordinator to oversee facility rentals, and tennis center operations, allowing expansion of special events and senior programming.
- Expanded Prime Time Senior Programs and introduced a new annual membership program to increase participation, engagement, and program value. - Launched a Community Donation Bin and Town Hall TV Display initiative to support local nonprofits and increase community engagement.
- Increased special event attendance through expansion of key programs, including the Multi-Cultural Celebration and Senior Health and Wellness Fair. - Secured over $10,000 in sponsorships and $2,000 in in-kind donations, strengthening community partnerships and supporting program sustainability. - Introduced contract instructor-led programs, including senior wellness classes and summer camps, expanding program offerings and service delivery. - Enhanced the MoHoHo Holiday Series with a new parade, relocation of the Holiday Market, installation of a 24-foot tree, and improvements to the tree lighting and kickoff event.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 110 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 wellbeing 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 111

GOALS AND OBJECTIVES
Public Safety Services
- Following the Council’s strategic plan and industry standards we strive to provide the best public safety available to our citizens.
- Support the community in establishing and maintaining neighborhood and business watch programs.
- Engage in community-oriented policing using the police services of the San Joaquin County Sheriff, Rank Security and our internal partners in code enforcement. - 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.
- Use social media platforms to educate and increase awareness of the citizens we serve. - Continually upgrade and increase the number of surveillance-based cameras within the community with 24/7 monitoring.
- Remodeling the public safety workspace to accommodate both our security team officers, code enforcement and contract police services. - Bring online QR code reference system in partnership with parks department to help the public be aware of reserved facilities and allow for enforcement. - Apply for grants to move forward with the public safety training facility, where fire, police, security and associated staff can train in a safe environment. - Maintain and expand a volunteer-based crossing guard program for area schools.

Currently an estimated 28 citizen volunteer time daily to the program. - Implement a regional radio system that interconnects with public works and public safety and parks and recreations departments.
- Update vehicle and equipment replacement schedule and ensure funding is in place to ensure timely purchases working on a Capital Improvement List. - Develop a training program for all employees including routine workshops and seminars for certification and refresher courses.
- Continue to work with the 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 112 - 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.
- Developing policy and procedures for code enforcement - Employee safety and identification and access for all facilities - Continues to work with the City Clerk and City Attorney on putting into place the correct municipal codes for code enforcement.
- Data Ticket management for all public safety to include police, security and code enforcement.
- Responsible for coordinating the creation of the Master Camera Plan for the city to incorporate current and future camera placement throughout the community. - Public Safety management of the Red-Light Camera system - Expand and manage the GOgov program to include parks, code enforcement and (fire) weed abatement.
- Upgrade and internal badging system and the exterior door functions to maintain transparency and safety. This is for city hall and other facilities such as wastewater treatment plant.

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.
- Have 2 fully functional fire stations to serve the expanding community and improve response coverage.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 113 - Hire an additional 3 full-time firefighters to ensure consistent staffing levels and enhance service delivery.
- Continue to 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. - Develop in-house enforcement programs such as weed abatement using the GoGov Program.

ACCOMPLISHMENTS
Emergency Management
- Monitor and report to council on the new EMS system that directly impacts Mountain House
- Completed the Municipal Emergency Management Plan (MEMP) and began development of the ICS system.
- Trained selected staff to implement the Municipal Emergency Management Plan, Incident Command System (ICS)
- Participate as a voting member of the Office of Emergency Services Disaster Council. - Continue to be involved in the assessment of threats related to disasters at the County level with the Office of Emergency Services.
- Continue the use of the Everbridge Notification system, with an increase in opt in notifications.
- Updated the Facilities Emergency Response Plan with a five-year operations plan. - Developed budget options for creating and maintaining an emergency operations center for not only emergency for but for city sponsored activities that require an offsite point of control.
- Working with IT services and the city clerk to develop and implement a COOP for the city (Continuity of Operations Plan) in the event of a catastrophic services interruption. - Created a 20-radio system to connect public works, public safety and parks on individual channels and also connected administration for emergency management and local event communications.
- Work on developing a two-tower system with the Fire Department to increase internal communications both radio and internet.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 114 Public Safety Services
- Increased traffic enforcement with our motorcycle officers for a total of two motorcycle officers.
- Increase patrol staffing with 2 additional deputies specifically assigned to swing shift patrol slots.
- Continue to host the regional STEPUP program successful traffic enforcement operations resulting in dozens of citations.
- Second year of an all-volunteer pedestrian crossing guard program. - Coordinate safety fire inspection and risk assessment at the Town Hall/Library with staff and Mountain House Fire and updating of safety protocols. - Continue to develop a master surveillance camera system to include monitoring over 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 as remote monitoring by Rank’s dispatch center.
- Updating and connecting our camera system to a microwave communications tower to improve communications between the cameras and city hall. - Managed 26 Flock Falcon Automated License Plate Recognition cameras in the community.
- Continue education of staff for 1st amendment rights, and validated signage for Town Hall/Library doors and entrances indicating limited public access. - Participated in numerous community outreach programs throughout the year including Neighborhood Watch, Business Watch, Coffee with First Responders, National Night Out, and Senior Awareness, Reading Across America.
- Pedestrian crossing safety evaluations and collected data around schools and high traffic areas.
- Developed municipal codes specifically for code, parking, and park enforcement. - Established several new Neighborhood Watch and Business Watch groups. - Maintaining certification as a drone pilot in compliance with FAA Part 107 UAS Pilot license.
- Continue to review and recommend law enforcement staffing for parks and recreation and community events.
- Expand the community program for GoGov for parks, codes and general information.

Fire & EMS Services
- Responded to 46 fire and emergency incidents and 691 rescue and emergency medical calls.
- Completed 4,443 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 115 - 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $75,000 is included for janitorial services and related expenses. - $56,000 is included for the annual operating cost for personnel. - $56,000 is included for electricity.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 3 - Parks 193,867 208,908 217,249 230,000 Total 193,867 208,908 217,249 230,000

EXPENDITURES
Operations and Maintenance
Professional services 56,000 56,000 56,000 56,000
Security services 768 730 753 1,000
Landscaping 3,784 3,746 3,075 5,000
Household exp-janitorial service 66,294 68,345 70,228 75,000 Utilities-water 16,146 15,508 22,742 25,000
Utilities-electricity 39,615 50,324 52,500 56,000
Maint-structure & grounds 11,260 14,255 11,951 12,000
Total Operations and Maintenance 193,867 208,908 217,249 230,000 Total 193,867 208,908 217,249 230,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 117 Law Enforcement Services Division

DIVISION SUMMARY
As we enter the fiscal year 2026/27, the partnership between the San Joaquin County Sheriff’s Office and Rank Public Safety continues to serve as a strong foundation for community safety.

Over the past year, this coordinated approach has produced measurable results and reinforced our shared commitment to proactive, responsive service. Looking ahead, our focus remains on strengthening prevention efforts, improving response capabilities, and deepening trust with the community. Through continued collaboration, we are well positioned to advance public safety priorities and support a secure, connected environment for all residents.

BUDGET HIGHLIGHTS
- $4,665,901 is included for San Joaquin County Sheriff services. - $150,000 is included for contract services.
- $800,000 is included for Rank Security services.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 2 - Public Safety 3,048,114 4,096,446 5,445,241 5,625,901 Total 3,048,114 4,096,446 5,445,241 5,625,901

EXPENDITURES
Operations and Maintenance
Household exp - janitorial service 7,825 8,085 7,890 10,000 Professional services 42,259 75,522 98,805 150,000
Rank Security 509,625 637,085 753,181 800,000
SJC Sheriff 2,488,405 3,375,754 4,585,365 4,665,901
Overhead allocation - - - -
Total Operations and Maintenance 3,048,114 4,096,446 5,445,241 5,625,901 Total 3,048,114 4,096,446 5,445,241 5,625,901
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 118 Fire & EMS Division

DIVISION SUMMARY
The Fire & Emergency Medical Services Division plays a vital role in maintaining a safe and resilient community by safeguarding lives, protecting property, and preserving our environment. As we move into the 2026–2027 budget year, the Mountain House City Fire Department remains focused on delivering reliable emergency response and strengthening prevention efforts. This past year brought meaningful progress in readiness, training, and community engagement. In the year ahead, we will continue to build on that momentum by enhancing operational capabilities, expanding public education, and reinforcing our commitment to serving the residents of Mountain House with professionalism and care.

BUDGET HIGHLIGHTS
- $5,717,995 is included for fire services.
- $12,000 is included for water utilities.
- $28,000 is included for other contract services.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Special Assessment Funds
Special Tax # 2 - Public Safety 3,555,470 3,602,479 4,934,004 5,777,495 Total 3,555,470 3,602,479 4,934,004 5,777,495

EXPENDITURES
Operations and Maintenance
Fire and EMS 3,407,060 3,493,692 4,887,442 5,717,995
Maintenance - equipment 1,084 54 3,000 5,000
Maint-structures & grounds 10,803 17,141 5,000 8,000
Utilities-water 9,266 8,928 10,785 12,000
Professional services 4,174 18,410 24,019 28,000
Landscaping 3,357 3,371 3,000 5,000
Interest 23,326 - - -
Janitorial Expense 7,710 283 758 1,500
Structure improvements 88,690 60,600 - -
Total Operations and Maintenance 3,555,470 3,602,479 4,934,004 5,777,495 Total 3,555,470 3,602,479 4,934,004 5,777,495
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 119 Emergency Preparedness Services Division

DIVISION SUMMARY
The Emergency Preparedness Services Division is actively being developed and implemented to strengthen the community’s ability to prepare for, respond to, and recover from both natural and human-caused incidents. Guided by the Mountain House Emergency Management Plan (MEMP), our approach is to move beyond a standalone program and embed emergency management principles into the daily responsibilities of staff across all departments. While this division continues to evolve, early efforts are focused on building foundational capabilities, aligning resources, and integrating planning, training, and awareness into routine operations.

As we move forward, our goal is to create a sustainable, organization-wide culture of preparedness that enhances coordination, improves resilience, and ensures the community is ready for a wide range of emergencies.

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

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

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

EXPENDITURES
Operations and Maintenance
EOC equipment and plan - - - 25,000
Total Operations and Maintenance - - - 25,000
Total - - - 25,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $6,235,050 is included for Traffic Impact Fees.
- $7,464,921 is included for Community Facilities Fees. - $6,650,104 is included for Water Debt Service.
- $5,487,353 is included for Wastewater Debt Service.
- $1,722,438 is included for Stormwater Debt Service.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

DEPARTMENT FUNDING SUMMARY
Restricted Funds
Traffic Impact 2,856,681 12,866,911 2,799,038 6,235,050 Community Facilities 470,154 - 2,802,289 7,464,921
Utility Funds
Water Debt Service 4,820,136 4,106,215 6,353,972 6,650,104 Wastewater Debt Service 3,729,208 2,932,629 5,237,578 5,487,353 Stormwater Debt Service 1,316,577 1,019,092 1,641,106 1,722,438 Total 13,192,756 20,924,847 18,833,983 27,559,866

EXPENDITURES
Debt Service
Debt payments 13,192,756 20,924,847 18,833,983 27,559,866 Total Debt Service 13,192,756 20,924,847 18,833,983 27,559,866 Total 13,192,756 20,924,847 18,833,983 27,559,866
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 121 Fund Budgets
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 122 Expenditures by Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27
General Funds
General Fund 3,528,490 2,427,219 2,891,121 3,652,293
Traffic Impact 41,854 29,223 45,000 65,000
Community Facilities 41,854 25,223 40,000 50,000
Total General Funds 3,612,198 2,481,665 2,976,121 3,767,293 Special Assessment Funds
Special Tax # 1 - Roads 2,282,712 2,453,778 3,889,817 4,766,297 Special Tax # 2 - Public Safety 6,738,930 7,879,980 10,632,745 11,747,056 Special Tax # 3 - Parks 3,128,291 3,389,679 5,454,979 6,355,891 Special Tax # 4 - Public Works 562,142 627,894 1,114,587 1,342,622 Total Special Assessment Funds 12,712,075 14,351,331 21,092,128 24,211,866 Special Revenue Funds
Development Services 1,047,187 5,591,673 4,564,024 5,080,411 Gas Tax 1,350,194 1,396,112 1,959,000 960,000
Total Special Revenue Funds 2,397,381 6,987,785 6,523,024 6,040,411 Utility Funds
Water O & M 5,178,932 5,016,575 6,527,433 6,279,445
Wastewater O & M 3,034,307 2,709,602 3,795,961 4,181,073 Stormwater O & M 900,236 599,282 994,560 1,040,413
Total Utility Funds 9,113,475 8,325,459 11,317,954 11,500,931 Restricted Funds
Lighting & Landscaping District 1 21,021 16,230 19,794 25,700 Lighting & Landscaping District 2 11,144 5,278 17,824 28,000 Lighting & Landscaping District 3 26,574 29,982 113,182 145,000 Community Facilities Districts - - 34,227 40,000
Total Restricted Funds 58,739 51,490 185,027 238,700
Debt Service
Debt Payments 13,192,756 20,924,847 18,833,983 27,559,866 Total Debt Service 13,192,756 20,924,847 18,833,983 27,559,866 Capital Projects
Capital Projects 1,717,668 2,584,995 9,475,444 11,765,000 Total Capital Projects 1,717,668 2,584,995 9,475,444 11,765,000 Total 42,804,292 55,707,572 70,403,681 85,084,067
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $15,142,373 in funding is provided by the General Fund. - $1,427,600 is included for studies, policies and procedures consulting, lobbying, and special consulting projects.
- $260,000 is included for San Joaquin County data processing direct charges. - $935,000 is included for insurance.
- $530,000 is included for the City’s legal counsel.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Property tax-secured 7,889,755 9,964,263 11,038,484 11,480,023 Property tax-secured-SB813 351,366 177,977 222,726 231,635 Property tax-unsecured 462,099 624,231 690,856 718,490
Property tax-unsecured-SB813 18,326 11,400 12,000 12,480 Property Transfer Tax - 594,357 296,355 300,000
Sales Tax - 153,095 182,291 190,000
License/permits-plan check 7,999 9,204 5,000 5,000
Franchises 392,416 459,351 477,492 480,000
Interest income 1,435,646 3,020,679 500,000 350,000
Rents/concessions 15,300 9,931 11,376 10,000
Homeowners' property tax relief 32,411 56,871 57,252 58,397 West Valley commercial 175,094 292,522 305,688 305,000
Utility services fee-solid waste 792,625 754,183 800,342 816,348 Charges for services 7,697 35,190 33,301 30,000
Other miscellaneous revenues 85,941 156,761 7,182 5,000 AB 109 Public Safety - 87,500 150,000 150,000
Total 11,666,675 16,407,515 14,790,345 15,142,373
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 124 General Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

EXPENDITURES
Personnel Services
Personnel 4,270,342 4,347,072 5,312,136 6,171,785
Labor allocation (1,879,389) (2,840,770) (3,855,940) (4,465,674) Total Personnel Services 2,390,953 1,506,302 1,456,196 1,706,111 Operations and Maintenance
Office supplies 13,786 27,337 25,328 41,900
Printing 1,918 1,583 1,500 10,000
Postage 19,843 2,780 3,898 5,500
Communication 55,661 59,695 60,495 62,900
Communication services-cell phone 11,242 12,743 14,298 16,000 Memberships 37,012 48,402 61,210 68,900
Gasoline 15,000 15,030 45,000 50,000
Truck upkeep 8,655 11,856 28,066 17,000
Rents & leases-equipment 24,719 33,950 37,488 42,000
Transportation/travel training 29,769 107,625 113,134 190,000 Professional services 744,757 655,592 1,242,615 1,427,600 Tax administration charges 111,587 117,703 130,000 137,000 Financial/management services 87,626 89,326 140,386 205,000 MHCSD counsel 351,231 476,604 504,529 530,000
MHCSD plan checking 7,255 7,255 15,000 27,000
Grant Expense 38,029 47,541 7,980 -
Engineering-miscellaneous - - 19,450 28,000
Technology/web/computers 46,178 119,818 221,652 355,663 MHCSD utility billing/metering 101,664 100,213 111,802 117,000 GIS monitoring 85,359 131,723 52,800 100,000
Human resources consulting 225 59,144 228,478 142,000
Publications & legal notices 2,733 4,646 5,501 134,200
Pre-employment testing 699 4,209 2,500 6,500
Special departmental expense 3,344 538 2,160 2,500
Recruitment 24,053 - - 30,000
Elections - 102,357 - 35,000
Software & related licenses 77,833 102,909 126,197 200,600 Workers compensation insurance 57,615 110,761 118,800 109,000 Insurance - fire & liability 551,338 530,794 787,500 935,000 Miscellaneous expense 16,360 24,392 26,526 48,500
Equipment office - 22,373 27,344 99,250
Utilities-electricity 59,089 70,807 77,344 83,000
Maintenance-structure & grounds 25,458 22,413 20,251 25,000 Data processing charges 115,053 168,564 231,950 260,000 County indirect cost charges-A-87 141,737 (306,460) 200,000 215,000 Utilities 7,089 7,359 8,893 9,500
Landscaping 7,071 7,117 8,245 10,000
Security services 5,715 5,324 4,404 5,000
Janitorial 54,068 55,843 58,326 62,000
Overhead allocation (1,803,234) (2,138,949) (3,336,125) (3,897,331) Total Operations and Maintenance 1,137,537 920,917 1,434,925 1,946,182 Total Expenditures 3,528,490 2,427,219 2,891,121 3,652,293 Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $84,689 in funding is provided by the Traffic Impact Fee Fund. - $15,000 is included for City attorney.
- $35,000 is included for TIF updates.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Traffic impact administration fee 153,349 360,930 95,622 84,689 Total 153,349 360,930 95,622 84,689

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Professional services 41,854 29,223 35,000 35,000
MHCSD counsel - - 5,000 15,000
Engineering-miscellaneous - - 5,000 15,000
Total Operations and Maintenance 41,854 29,223 45,000 65,000 Total Expenditures 41,854 29,223 45,000 65,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $145,973 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 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Community facility admin fee 200,908 431,665 90,186 145,973 Total 200,908 431,665 90,186 145,973

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Professional services 41,854 25,223 30,000 30,000
MHCSD counsel - - 5,000 10,000
Engineering-miscellaneous - - 5,000 10,000
Total Operations and Maintenance 41,854 25,223 40,000 50,000 Total Expenditures 41,854 25,223 40,000 50,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $11,435,865 in funding is provided by the Roads Fund. - $200,000 is included for Master Consultant Agreement (MCA) on call contracts. - $625,000 is included for irrigation.
- $1,900,000 is included for landscaping and tree maintenance of the roadways.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 271,196 136,767 75,000 75,000
Special assessments-current 9,154,395 9,721,667 10,669,784 11,360,865 Total 9,425,591 9,858,434 10,744,784 11,435,865

EXPENDITURES
Personnel Services
Personnel 282,473 272,276 512,925 632,033
Labor allocation 124,209 208,293 420,228 523,295
Total Personnel Services 406,682 480,569 933,153 1,155,328 Operations and Maintenance
Signal maintenance 50,614 153,641 178,409 150,000
Professional services - - - 200,000
Auditors direct assmt svc charge 21,999 22,752 24,336 28,000 Engineering-miscellanous 59,584 46,239 104,362 148,000
GIS monitoring 8,112 - 15,000 15,000
Publications & legal notices - 1,248 2,500 3,500
Irrigation water 439,852 517,230 543,024 625,000
Software & related licenses 2,000 2,000 4,911 5,000
Utilities-traffic signals 15,059 18,353 16,000 40,000
Utilities-electricity 24,069 26,984 30,000 40,000
Landscaping 1,128,897 1,032,453 1,683,477 1,900,000
Overhead allocation 125,844 152,309 354,645 456,469
Total Operations and Maintenance 1,876,030 1,973,209 2,956,664 3,610,969 Total Expenditures 2,282,712 2,453,778 3,889,817 4,766,297 Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $5,786,709 in funding is provided by the Public Safety Fund. - $5,717,995 is included for the Fire Department services. - $4,665,901 is included for San Joaquin County Sheriff services. - $290,000 is included for safety monitoring.
- $800,000 is included for Rank Security services.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 20,000 20,000 - -
Special assessments-current 4,662,508 4,952,665 5,434,704 5,786,709 Total 4,682,508 4,972,665 5,434,704 5,786,709

EXPENDITURES
Operations and Maintenance
Maintenance-equipment 1,084 54 3,000 5,000
Auditors direct assmt serv chg 21,999 22,752 24,336 28,000 Professional services 17,329 93,932 122,824 203,000
Fire Services-French Camp 3,407,060 3,493,692 4,887,442 5,717,995 Public safety 3,027,134 4,012,839 5,338,546 5,465,901
Maintenance-structure & grounds 10,803 17,141 5,000 8,000 Janitorial 15,535 8,368 8,648 11,500
Safety monitoring 113,347 158,303 229,164 290,660
Landscaping 12,623 12,299 13,785 17,000
Equipment 88,690 60,600 - -
Interest 23,326 - - -
Total Operations and Maintenance 6,738,930 7,879,980 10,632,745 11,747,056 Total Expenditures 6,738,930 7,879,980 10,632,745 11,747,056 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 129 Special Tax # 3 – Parks Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Rents/concessions 329,147 114,255 125,252 125,000
Special assessments-current 810,157 859,380 943,711 1,004,836 Total 1,139,304 973,635 1,068,963 1,129,836

EXPENDITURES
Personnel Services
Personnel 589,682 562,873 919,029 1,200,711
Labor allocation 259,328 430,604 752,681 994,139
Total Personnel Services 849,010 993,477 1,671,710 2,194,850 Operations and Maintenance
Communication 4,213 4,900 7,393 8,500
Office supplies - 555 900 900
Memberships 165 510 1,030 1,030
Maintenance-equipment - 490 8,000 18,000
Trans/travel training 1,500 2,267 5,000 5,000
Auditors direct assmt serv chg 8,102 8,594 9,437 12,000 Professional services 56,000 56,000 106,000 106,000
GIS monitoring - - 5,000 5,000
Publications & legal notices 973 1,443 3,000 3,000
Irrigation water 126,102 125,814 145,496 170,000
Software & related licenses 21,896 18,977 17,600 19,600 Household exp-janitorial service 149,518 160,674 332,517 391,500 Utilities-water 16,146 15,508 22,742 25,000
Utilities-electricity 55,969 68,545 72,000 79,000
Unity Center 28,383 12,851 10,000 10,000
Maintenance-structure & grounds 49,023 80,404 466,951 272,000 Landscaping 962,919 938,375 1,259,075 1,305,000
MHCSD pledge facility payments 367,296 390,913 438,617 450,253 Security services 768 730 3,753 4,300
Sponsored events 27,387 21,502 36,200 41,900
Tennis - - - 100,000
Amphitheater - - - 46,000
Independence Day 19,401 21,528 23,500 26,000
Central Park Cinema - 3,152 6,875 6,875
Music in the park 87,215 111,012 123,750 140,000
Kite festival 12,576 12,427 15,000 15,000
Bike rodeo 1,880 3,483 4,000 4,000
Holiday parade & lighting 18,653 20,682 24,000 28,000
Overhead allocation 263,196 314,866 635,433 867,183
Total Operations and Maintenance 2,279,281 2,396,202 3,783,269 4,161,041 Total Expenditures 3,128,291 3,389,679 5,454,979 6,355,891 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 130

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
- $1,129,863 in funding is provided by the Parks Fund.
- $1,305,000 is included for the landscaping of parks.
- $391,500 is included for janitorial services.
- $450,253 is included for pledged facility payments.

Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $1,069,334 in funding is provided by the Public Works Fund. - $335,300 is included for streetlight electricity.
- $5,000 is included for professional services.
- $12,000 is included for tax roll service charges.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 74,016 32,157 15,000 15,000
Special assessments-current 851,980 902,755 990,198 1,054,334 Total 925,996 934,912 1,005,198 1,069,334

EXPENDITURES
Personnel Services
Personnel 156,890 141,934 295,891 388,138
Labor allocation 68,999 108,579 242,200 321,361
Total Personnel Services 225,889 250,513 538,091 709,499 Operations and Maintenance
Professional services - - 56,690 5,000
Engineering-miscellanous - 233 500 500
Auditors direct assmt serv chg 8,520 9,028 9,902 12,000 Utilities-street lighting 257,707 288,725 304,819 335,300 Overhead allocation 70,026 79,395 204,585 280,323
Total Operations and Maintenance 336,253 377,381 576,496 633,123 Total Expenditures 562,142 627,894 1,114,587 1,342,622
Item 3.

City of Mountain House | Fiscal Year 2026/27 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
- $1,780,000 in funding is provided by the Development Services Fund. - $1,000,000 is included for building services.
- $400,000 is included for planning services.
- $275,000 is included for the general plan.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Charges for services 105,316 2,910,933 1,817,309 1,780,000 Total 105,316 2,910,933 1,817,309 1,780,000

EXPENDITURES
Personnel Services
Personnel 554,574 1,820,165 1,510,147 1,648,554
Labor allocation 243,894 1,115,378 875,229 919,651
Total Personnel Services 798,468 2,935,543 2,385,376 2,568,205 Operations and Maintenance
Inspection/testing - - 15,000 35,000
Planning servies - 334,490 400,000 400,000
Development services - 1,504,710 900,000 1,000,000
General plan - - 125,000 275,000
Overhead allocation 248,719 816,930 738,648 802,206
Total Operations and Maintenance 248,719 2,656,130 2,178,648 2,512,206 Total Expenditures 1,047,187 5,591,673 4,564,024 5,080,411 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 133 Gas Tax Fund

FUND SUMMARY
The City receives gas taxes pursuant to State law which specifically designates this money for research, planning, construction, improvement, maintenance, and operation of public streets and highways. California Revenue and Taxation Code (Section 7360) set 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 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
- $1,100,000 in funding is provided by the Gas Tax Fund. - $180,000 is included for street light maintenance.
- $200,000 is included for road maintenance.
- $580,000 is included for maintenance of structures and grounds.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Gas tax - 1,122,535 1,195,919 1,100,000
Total - 1,122,535 1,195,919 1,100,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Street light maintenance 102,352 105,980 129,000 180,000 Road maintenance 1,049,066 1,183,300 1,250,000 200,000
Main-structure & grounds 198,776 106,832 580,000 580,000 Total Operations and Maintenance 1,350,194 1,396,112 1,959,000 960,000 Total Expenditures 1,350,194 1,396,112 1,959,000 960,000 Item 3.

City of Mountain House | Fiscal Year 2026/27 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 Mountain House, Stockton, Lodi, Manteca, Tracy, Ripon, Escalon, and Lathrop.

BUDGET HIGHLIGHTS
- $650,000 in funding is provided by the Measure K Fund. - $650,000 is being used to fund CIP projects.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Measure K funds - 620,390 649,588 650,000
Total - 620,390 649,588 650,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Total Operations and Maintenance - - - -
Total Expenditures - - - -
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 135 Local Transportation Fund

FUND SUMMARY
The Local Transportation Fund (LTF) is California state funding created in 1791 under the Transportation Development Act. The purpose of the funds is to improve existing public transportation services and encourage regional transportation coordination. The eligible uses are transit operations, public transportation improvements, transit planning, specialized transportation services, and local streets and roads (limited).

BUDGET HIGHLIGHTS
- $3,875,964 in funding is provided by the Local Transportation Fund. - $3,875,964 is being used to fund CIP projects.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Special assessments-current - - - 3,875,964
Total - - - 3,875,964

City of Mountain House | Fiscal Year 2026/27 Budget 136 Grant Fund

FUND SUMMARY
Grant funds are non-repayable financial resources provided by governments, foundations, corporations, or organizations to support initiatives that align with the funder’s priorities. The funds have a designated purpose and are required to be used for that purpose.

BUDGET HIGHLIGHTS
- $350,000 in funding is provided by the Grant Fund.
- $350,000 is being used to fund CIP projects.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Special assessments-current - - - 350,000
Total - - - 350,000

City of Mountain House | Fiscal Year 2026/27 Budget 137 Regional Traffic Impact Fee

FUND SUMMARY
Regional Transportation Infrastructure Funds (RTIF) are fees levied with the issue of permits within jurisdictions. The fees are designed to be used to fund transportation projects that may cross jurisdictional boundaries. The eligible uses are regional transit systems, road and bridge projects, public transportation, and integrating transportation planning and operations.

BUDGET HIGHLIGHTS
- $800,000 in funding is provided by the Regional Traffic Impact Fee Fund. - $800,000 is being used to fund CIP projects.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Special assessments-current - - 790,460 800,000
Total - - 790,460 800,000

City of Mountain House | Fiscal Year 2026/27 Budget 138 Water Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Utility service fee-operations 5,712,861 6,142,350 6,503,851 6,959,771 Miscellaneous revenue 421,700 248,816 50,000 50,000
Total 6,134,561 6,391,166 6,553,851 7,009,771

EXPENDITURES
Personnel Services
Personnel 644,525 263,827 474,660 543,156
Labor allocation 283,445 201,832 388,347 449,710
Total Personnel Services 927,970 465,659 863,007 992,866 Operations and Maintenance
Office expense-supplies 68 1,225 1,344 1,500
Office expense-postage 874 - 2,628 3,800
Communication 5,983 6,269 7,500 7,500
Transportation/travel training - - 750 1,000
Professional services 1,189,476 1,424,828 1,725,000 1,620,000 MHCSD counsel 28,312 8,963 - 15,000
Engineering-miscellaneous 152,012 154,353 212,500 192,500 MHCSD utility billing/metering 142,421 128,654 183,017 195,828 MHCSD processing fees 109,083 114,503 134,525 145,000
GIS monitoring - - - 10,000
State health department 41,298 46,576 50,000 55,000
Chemicals 352,470 209,244 - -
Permits & fees 3,476 14,584 36,000 36,000
Utilities-water 902,969 1,267,143 1,339,000 1,379,170
Utilities-electricity 418,362 530,801 582,000 600,000
Main-structure & grounds 160,427 110,588 645,000 200,000 Maint&Repair - Collection Systems 417,867 345,795 350,000 350,000 Landscaping 29,029 29,030 54,985 70,000
Irrigation water 9,164 10,776 11,987 12,000
Overhead allocation 287,671 147,584 328,190 392,281
Total Operations and Maintenance 4,250,962 4,550,916 5,664,426 5,286,579 Total Expenditures 5,178,932 5,016,575 6,527,433 6,279,445 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 139 Water Fund

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

BUDGET HIGHLIGHTS
- $7,009,771 in funding is provided by the Water Fund.
- $1,379,170 is included for the purchase of raw water. - $600,000 is included for electricity for the water plant. - $1,620,000 is included for water plant operations and services.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 140 Wastewater Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 284,824 310,316 50,000 50,000
Utility service fee-operations 3,838,372 4,153,829 4,195,367 4,279,274 Total 4,123,196 4,464,145 4,245,367 4,329,274

EXPENDITURES
Personnel Services
Personnel 615,386 248,994 456,740 522,961
Labor allocation 270,631 190,485 373,856 432,989
Total Personnel Services 886,017 439,479 830,596 955,950 Operations and Maintenance
Printing 76 - 541 800
Office expense-supplies 59 732 682 800
Office expense-postage 673 - 982 1,200
Communication 456 576 700 700
Memberships 8,847 9,118 10,000 12,000
Professional services 688,408 1,021,946 1,370,229 1,455,000 Refuse disposal charges 122,099 37,283 50,000 50,000
Engineering-miscellaneous - 233 45,000 65,000
MHCSD utility billing/metering 86,581 78,872 123,178 135,000 MHCSD processing fees 77,294 75,307 81,569 90,000
GIS monitoring - - 5,000 10,000
Chemicals 131,363 74,842 - -
Permits & fees 27,502 31,016 38,000 45,000
Utilities-electricity 363,642 579,723 616,321 634,811
Irrigation water 9,164 11,443 11,763 12,116
Main-structure & grounds 315,376 194,012 220,000 250,000 Maint&Repair - Collection Systems 26,290 - 30,000 30,000 Landscaping 15,795 15,732 45,600 55,000
Overhead allocation 274,665 139,288 315,800 377,696
Total Operations and Maintenance 2,148,290 2,270,123 2,965,365 3,225,123 Total Expenditures 3,034,307 2,709,602 3,795,961 4,181,073 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 141 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
- $4,329,274 in funding is provided by the Wastewater Fund. - $250,000 is included for the maintenance and repair of grounds and structures. - $634,811 is included for electricity for the wastewater plant. - $1,455,000 is included for wastewater plant operation and services.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 142 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
- $1,103,505 in funding is provided by the Stormwater Fund. - $200,000 is included for the maintenance and repair of grounds and structures. - $241,000 is included for service provided for stormwater operations.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 323,400 342,089 50,000 50,000
Utility service fee-operations 764,243 804,218 812,260 828,505 Storm drain sys-NPDES 185,130 395,918 169,884 225,000
Total 1,272,773 1,542,225 1,032,144 1,103,505

EXPENDITURES
Personnel Services
Personnel 174,037 95,283 156,180 183,012
Labor allocation 76,542 72,898 127,932 151,525
Total Personnel Services 250,579 168,181 284,112 334,537 Operations and Maintenance
Printing 22 - 179 500
Office expense-supplies 17 214 256 500
Office expense-postage 197 - 184 500
Memberships - - 500 500
Professional services 484,525 269,533 238,454 241,000
MHCSD utility billing/metering 21,264 20,593 34,360 42,000 MHCSD Processing Fees 14,785 14,524 15,847 20,000
GIS monitoring - - 2,500 5,000
Permits & fees 13,598 13,564 10,000 25,000
Maint-structure & grounds 24,600 41,936 270,000 200,000 Landscaping 12,970 12,923 30,183 38,700
Overhead allocation 77,679 53,304 107,985 132,176
Total Operations and Maintenance 649,657 431,101 710,448 705,876 Total Expenditures 900,236 599,282 994,560 1,040,413
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 143 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
- $79,000 in funding is provided by the Lighting & Landscaping District 1 Fund. - $15,000 is included for the assessment of the Lighting & Landscaping District. - $9,700 is included for landscaping.
- $1,000 is included for assessment service charges.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 27,962 30,732 15,000 15,000
Special assessments-current 59,657 61,430 63,277 64,000 Total 87,619 92,162 78,277 79,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 597 614 633 1,000
Engineering-miscellaneous 10,128 5,320 9,835 15,000
Landscaping 10,296 10,296 9,326 9,700
Total Operations and Maintenance 21,021 16,230 19,794 25,700 Total Expenditures 21,021 16,230 19,794 25,700
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 144 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
- $40,000 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.
- $1,000 is included for assessment service charges.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Special assessments-current 47,133 39,243 40,000 40,000 Total 47,133 39,243 40,000 40,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 403 403 403 1,000
Engineering-miscellaneous 10,741 4,875 9,421 15,000
Landscaping - - 8,000 12,000
Total Operations and Maintenance 11,144 5,278 17,824 28,000 Total Expenditures 11,144 5,278 17,824 28,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 145 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
- $416,000 in funds is provided by the Lighting & Landscaping District 3 Fund. - $20,000 is included for the assessment of the Lighting & Landscaping District. - $120,000 is included for landscaping.
- $5,000 is included for assessment service charges.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income 50,911 54,018 20,000 20,000
Special assessments-current 373,063 384,237 395,771 396,000 Total 423,974 438,255 415,771 416,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg 3,731 3,842 3,958 5,000
Engineering-miscellaneous 10,114 8,477 14,224 20,000
Landscaping 12,729 17,663 95,000 120,000
Total Operations and Maintenance 26,574 29,982 113,182 145,000 Total Expenditures 26,574 29,982 113,182 145,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 146 Community Facilities Districts Fund

FUND SUMMARY
The Community Facilities Districts Fund is used to account for the activities related to the community facilities operations of districts with the City.

BUDGET HIGHLIGHTS
- $235,000 in funds is provided by the Community Facilities Districts Fund. - $34,000 is included for reporting requirements for the Districts. - $6,000 is included for assessment service charges.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Special assessments-current - - 234,911 235,000
Total - - 234,911 235,000

EXPENDITURES
Personnel Services
Personnel - - - -
Labor allocation - - - -
Total Personnel Services - - - -
Operations and Maintenance
Auditors direct assmt serv chg - - 4,227 6,000
Financial/management services - - 30,000 34,000
Total Operations and Maintenance - - 34,227 40,000
Total Expenditures - - 34,227 40,000
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 147 Affordable Housing Fund

FUND SUMMARY
The Affordable Housing Fund is designed to provide capital for new construction, renovation, and repair of affordable housing.

BUDGET HIGHLIGHTS
- $600,000 in funds is provided by the Affordable Housing Fund.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
Interest income - 439,658 100,000 100,000
Affordable Housing Fee - 10,743,417 512,054 500,000
Total - 11,183,075 612,054 600,000

City of Mountain House | Fiscal Year 2026/27 Budget 148 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.

BUDGET HIGHLIGHTS
- $6,230,050 is included for Traffic Impact Fees.
- $7,464,921 is included for Community Facilities Fees. - $6,469,104 is included for Water Debt Service.
- $5,341,353 is included for Wastewater Debt Service.
- $1,659,438 is included for Stormwater Debt Service.

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

City of Mountain House | Fiscal Year 2026/27 Budget 149 Capital Improvement Projects Budget
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 150 Capital Projects Fund

AUDITED
ACTUAL
FY 2023/24

AUDITED
ACTUAL
FY 2024/25

PROJECTED
ACTUAL
FY 2025/26

PROPOSED
BUDGET
FY 2026/27

FUNDING SUMMARY
General Funds
General Fund - 245,296 600,000 -
Special Assessment Funds
Special Tax No. 1: Roads 89,770 - 1,274,000 -
Special Tax No. 2: Public Safety 499,428 1,938,575 - -
Special Tax No. 3: Parks 918,470 - 420,000 1,100,000
Special Tax No. 4: Public Works 210,000 - 50,000 1,952,535 Special Revenue Funds
Gas Tax 499,454
Measure K - - 600,000 731,587
Local Transportation Fund 3,875,964
Grant Fund 350,000
Regional Traffic Impact Fee - - - 1,590,460
Impact Fee Funds
Community Facilities - - 4,231,444 -
Enterprise Funds
Water O & M - 171,930 2,300,000 1,590,000
Wastewater O & M - 12,137 - 75,000
Stormwater O & M - 217,057 - -
Total 1,717,668 2,584,995 9,475,444 11,765,000

EXPENDITURES
Capital Expenditures
Roads 89,770 - 1,874,000 3,775,000
Equipment & Vehicles 122,061 245,296 4,831,444 1,500,000 Public Safety 377,367 1,938,575 - -
Parks 918,470 - 420,000 1,100,000
Public Works 210,000 - 50,000 3,725,000
Water Capital Projects - 171,930 2,300,000 1,590,000
Wastewater Capital Projects - 12,137 - 75,000
Stormwater Debt Service - 217,057 - -
Total Capital Expenditures 1,717,668 2,584,995 9,475,444 11,765,000 Total Expenditures 1,717,668 2,584,995 9,475,444 11,765,000 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 151

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

BUDGET HIGHLIGHTS
- $11,765,000 in funding is provided to the Capital Projects Fund. - $3,000,000 is included for the park restrooms.
- $1,500,000 is included for the aquifer storage recovery project.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 152 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 2026/27 2027/28 2028/29 2029/30 2030/31 Arterial Landscape Improvement Program 900,000 525,000 48,314 476,686 75,000 75,000 75,000 75,000 75,000 Pedestrian and Traffic Safety 2,275,000 1,275,000 338,418 936,582 200,000 200,000 200,000 200,000 200,000 Traffic Calming Program 360,000 10,000 - 10,000 50,000 60,000 70,000 80,000 90,000 Bikeway Safety Improvements 1,863,000 663,000 - 663,000 1,200,000 - - - - Pavement Management and Resurfacing Program 13,786,209 4,336,209 3,118,329 1,217,880 2,250,000 2,100,000 2,200,000 2,300,000 600,000 Total 19,184,209 6,809,209 3,505,061 3,304,148 3,775,000 2,435,000 2,545,000 2,655,000 965,000

EQUIPMENT & VEHICLES
Equipment Replacement (Fund Accrual) 790,000 415,000 123,817 291,183 75,000 75,000 75,000 75,000 75,000 Fleet Purchases 640,000 265,000 95,296 169,704 75,000 75,000 75,000 75,000 75,000 New Transit Services 1,600,000 600,000 - 600,000 1,000,000 - - - - EV Charging Station Installation 1,750,000 100,000 - 100,000 350,000 1,300,000 - - Total 4,780,000 1,380,000 219,113 1,160,887 1,500,000 1,450,000 150,000 150,000 150,000

PUBLIC SAFETY
Security Camera Master Plan 250,000 - - - - 250,000 - - - Public Safety Equipment 206,700 - - - - 100,500 45,200 30,500 30,500 Total 456,700 - - - - 350,500 45,200 30,500 30,500

PUBLIC WORKS
Residential Sidewalk Repair Program 3,280,000 1,980,000 993,903 986,097 - 550,000 100,000 550,000 100,000 Park Restrooms 3,000,000 - - - 3,000,000 - - - -
Neighborhood Tree Replacement Program 1,250,000 - - - 350,000 225,000 225,000 225,000 225,000 City Building Facilities Repair Program 500,000 250,000 44,040 205,960 50,000 50,000 50,000 50,000 50,000 Door Security and Lock System Citywide Projects 325,000 - - - 325,000 - - - - Total 8,355,000 2,230,000 1,037,943 1,192,057 3,725,000 825,000 375,000 825,000 375,000 PARKS
Playground & Park Improvement Program 4,763,000 2,143,000 2,123,354 19,646 1,100,000 380,000 380,000 380,000 380,000 Total 4,763,000 2,143,000 2,123,354 19,646 1,100,000 380,000 380,000 380,000 380,000 WATER
Aquifer Storage and Recovery Project 5,350,000 3,850,000 348,419 3,501,581 1,500,000 - - - - Orion Endpoint Installation 2,950,000 2,500,000 2,262,175 237,825 90,000 90,000 90,000 90,000 90,000 Drought Contingency Funding 3,400,000 2,400,000 315,005 2,084,995 - 250,000 250,000 250,000 250,000 Wicklund Cut Pump Station 40,000 - - - - 40,000 - - -
Total 11,740,000 8,750,000 2,925,599 5,824,401 1,590,000 380,000 340,000 340,000 340,000

WASTEWATER
UV System Cover 35,000 - - - 35,000 - - - -
North Building Electrical Upgrades 40,000 - - - 40,000 - - - - Facility Repairs 1,064,000 944,000 576,656 367,344 - 40,000 40,000 40,000 - Total 1,139,000 944,000 576,656 367,344 75,000 40,000 40,000 40,000 -

STORMWATER
Facility Repairs 3,275,000 1,675,000 64,645 1,610,355 - 100,000 1,500,000 - - Total 3,275,000 1,675,000 64,645 1,610,355 - 100,000 1,500,000 - - Grand Total 53,692,909 23,931,209 10,452,371 13,478,838 11,765,000 5,960,500 5,375,200 4,420,500 2,240,500 5 Year Plan
Appropriations
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 153 Arterial Landscape Improvement Program
Department: Public Works
Category: Road
Project Number: R21224
2026/27 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, and 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 City will be required to follow strict guidelines on all landscape renovation projects. This will require the City 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 on 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 154 Pedestrian and Traffic Study
Department: Public Works
Category: Road
Project Number: R21226
2026/27 Budget: $200,000
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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 155 Traffic Calming Program
Department: Public Works
Category: Road
Project Number:
2026/27 Budget: $50,000
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 safer, more livable neighborhoods while also reducing long-term costs associated with traffic accidents.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 156 Bike Safety Improvements
Department: Public Works
Category: Road
Project Number:
2026/27 Budget: $1,200,000
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’s 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 157 Pavement Management Program
Department: Public Works
Category: Road
Project Number: R21229
2026/27 Budget: $2,250,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
Pavement Condition Index (PCI)
1) Pavement distress data is collected in the field then enter our Pavement Management System (PMS).
2) The data consists of the type, severity, and extent of distress that exist on a pavement. 3) The severity of distress is based on the widths of the cracks. 4) The extent of the distress is based on the affected area, linear length or linear spacing of the cracks.
5) Our PMS processes the data and calculates the PCI based on the 0 to 100 rating scale. 6) The PCI is incrementally reduced from a rating of 100 based on type, severity, and extent of the distresses present.

JUSTIFICATION
The Pavement Management Program (PMP) provides the analytics to determine the correct time to maintain roadways. The Pavement Condition Index (PCI) is the barometer in the forecast of scheduling the correct application of maintenance to each roadway. The program is based on the estimated lifespan of each repair application and uses values such type of repair, volume of repair, traffic load, etc., to determine the rate of reduction to the PCI. As the PCI lowers below selected tolerance levels, it is scheduled for maintenance.

Maintaining an average PCI of 80% ensures that repairs will not be deferred, leading to a spike in repairs needed. Careful planning helps avoid devastating budget spikes as well.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 158 Equipment Replacement
Department: Public Works
Category: Road
Project Number:
2026/27 Budget: $75,000
Project Start: 2026/27
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 City 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 159 Fleet Vehicles
Department: Public Works
Category: Road
Project Number: EV21223
2026/27 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
surpluses in 8 to 10 years
before value depreciation
accelerates. The cost benefit
to remove these vehicles and
replace them is beneficial to
the City. As the City is
expected to expand the staffing will expand. To meet the need for additional inspectors, lightduty 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 160 New Transit Services
Department: Public Works
Category: Public Works
Project Number: PW21229
2026/27 Budget: $1,000,000
Project Start: 2026/27
Target Completion: Ongoing

DESCRIPTION
This program focuses on the planning, implementation, and operation of new transit services to improve mobility and transportation access throughout the City. The program is intended to establish transit options that respond to current and future community needs, support residents without access to private vehicles, and complement the City’s overall transportation network.

Key components of the program include:

New Transit Service Implementation:

Development and launch of new transit
services, which may include fixed-route
service, flexible or on-demand transit
options, pilot programs, and phased
service expansion.

Service Planning and Feasibility:

Refinement and implementation of recommendations from the City’s transit feasibility study, including route planning, service levels, scheduling, and ridership analysis to ensure efficient and cost-effective operations.

Operations and Start-Up Costs: Funding for initial transit operations, including contracted service providers, vehicles, operating equipment, technology systems, and customer information tools necessary to begin service.

Coordination and Compliance: Coordination with regional transportation agencies to ensure compliance with applicable funding requirements, performance standards, and reporting obligations.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 161

JUSTIFICATION
As the introduction of transit services is a critical component of a balanced and accessible transportation system, particularly in a growing community where travel demand continues to increase. Transit services provide essential mobility for residents who may not have access to a personal vehicle, including seniors, students, individuals with disabilities, and lower-income households.

Beyond meeting immediate mobility needs, this program supports long-term transportation sustainability by reducing reliance on single-occupancy vehicles, helping manage congestion, and supporting regional transportation and environmental goals. Establishing transit services now lays the groundwork for a resilient transportation system that enhances connectivity, promotes equity, and supports the City’s continued growth and livability.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 162 EV Charging Station
Department: Public Works
Category: Public Works
Project Number: 7430
2026/27 Budget: $350,000
Project Start: 2026/27
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
spaces. For the sake of this
projection, $15,000 per unit
(double connection) will be used
as a factor.

JUSTIFICATION
As the City grows 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 163 Park Restrooms
Department: Public Works
Category: Public Works
Project Number: 74302
2026/27 Budget: $3,000,000
Project Start: 2026/27
Target Completion: 2027

DESCRIPTION
This project will fund the design, purchase, and installation of permanent restroom facilities at selected City parks. Improvements may include prefabricated or site-built restroom structures, utility connections (water, sewer, and electrical), ADA-compliant fixtures, lighting, and related site improvements such as concrete pads, pathways, and landscaping.

The project is intended to replace the current reliance on portable restrooms and provide durable, permanent facilities designed for high public use. Restroom structures will be designed for ease of maintenance, vandal resistance, and long-term operational efficiency. Multiple design options may be evaluated to ensure the selected solution fits the physical constraints and operational needs of each park location.

Implementation may occur in phases depending on available funding, site conditions, and construction schedules. Work may include site preparation, utility coordination, installation of prefabricated restroom buildings, and associated improvements needed to make the facilities fully operational.

JUSTIFICATION
As park usage continues to grow, the need for permanent restroom facilities has increased.

Many parks currently rely on portable restrooms, which require ongoing rental costs, frequent servicing, and provide a lower level of cleanliness, accessibility, and user experience for park visitors.

Permanent restroom facilities will improve park usability, support community events and recreational activities, and provide accessible amenities for residents and visitors. In addition, permanent facilities can reduce long-term operational costs associated with portable restroom rentals and improve maintenance efficiency through the use of durable materials and standardized designs.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 164 Providing reliable restroom access is a key component of park infrastructure and enhances the overall quality, accessibility, and functionality of the City’s park system.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 165 Building Repair Program
Department: Public Works
Category: Public Works
Project Number: 7413
2026/27 Budget: $50,000
Project Start: 2026/27
Target Completion: 2027

DESCRIPTION
This The District Building Repair Program is designed to assess more than 10 District structures to determine areas in need of repair and maintenance. Selected areas are graded to determine the level of maintenance needed. Each District 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 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 District buildings average 15 years in age. Maintenance is becoming necessary to maintain these structures to maintain their value. The portfolio of District building is valued at approximately $22M and the soon to be Wastewater Treatment Facility expansion project adding an additional value. Proper planning of annual structural maintenance will maximize that value.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 166 Door Security and Lock System Citywide
Department: Public Works
Category: Public Works
Project Number:
2026/27 Budget: $325,000
Project Start: 2026/27
Target Completion: 2028

DESCRIPTION
This project will implement security system upgrades across multiple City facilities to improve protection of critical infrastructure and ensure secure, reliable access for authorized personnel.

Facilities included in this project consist of the Wastewater Treatment Plant, Water Treatment Plant, West Side Booster Pump Station, College Park Tank, Town Hall, and other associated municipal facilities where existing security systems are outdated or nonfunctional.

Water and wastewater treatment facilities are considered critical infrastructure under U.S. homeland security frameworks because disruption, damage, or contamination of these systems can directly impact public health, environmental protection, and community safety. Security of drinking water and wastewater infrastructure is a key component of homeland security and public health protection. Currently, several water and wastewater facilities rely on gate and door security systems that are no longer operational or do not meet current City security standards. As a result, operations staff experience unreliable access, which has led to inefficient and undesirable practices such as propping doors open or leaving gates unsecured. These conditions increase the risk of unauthorized entry, vandalism, and potential threats to essential water infrastructure.

This project will replace and upgrade existing gate and door security systems across these facilities to comply with current City security requirements and industry best practices for critical infrastructure protection. Improvements will include modern access control hardware, updated locking mechanisms, electronic keycard or credential-based entry systems, and integration with the City’s centralized security and monitoring platform. These upgrades will allow the City to better control facility access, track authorized entry, and improve operational efficiency for staff responsible for maintaining essential water and wastewater services.

In addition to water and wastewater facilities, the project will also support security improvements at Town Hall and other key municipal facilities where access control upgrades are necessary to meet current standards and ensure consistent security practices across City operations.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 167 Completion of this project will strengthen protection of critical infrastructure, reduce risks associated with unauthorized access, and support the City’s responsibility to safeguard drinking water and wastewater systems. The improvements will also provide reliable and convenient access for authorized personnel, enhance operational efficiency, and align City facilities with modern security expectations and industry standards for critical public infrastructure.

JUSTIFICATION
Many The City’s water and wastewater treatment facilities are classified as critical infrastructure under U.S. homeland security and public health protection frameworks because disruption, damage, or contamination of these systems can directly affect drinking water quality, environmental compliance, and community safety. Maintaining secure and controlled access to these facilities is essential to protecting the City’s water supply and wastewater operations.

Several City facilities, including the Wastewater Treatment Plant, Water Treatment Plant, West Side Booster Pump Station, and College Park Tank, currently rely on gate and door security systems that are nonfunctional, outdated, or inconsistent with current City security standards.

Because these systems do not reliably control access, operations staff must rely on manual workarounds such as propping doors open or leaving gates unsecured in order to maintain daily operational access. These conditions increase the risk of unauthorized entry, vandalism, and potential interference with critical water and wastewater infrastructure.

Upgrading these systems will ensure that access to critical facilities is properly controlled, monitored, and restricted to authorized personnel. Modern access control systems also allow for improved credential management, entry tracking, and integration with centralized monitoring systems, which strengthens the City’s ability to manage facility security and respond to incidents if they occur.

This project also supports the need to establish consistent security standards across City facilities, including Town Hall and other municipal buildings where access control improvements may be required. Implementing a standardized system will improve operational efficiency, reduce maintenance issues associated with outdated equipment, and ensure City facilities meet modern security expectations and industry best practices.

Overall, this investment will reduce risks to essential public infrastructure, support compliance with homeland security and public safety expectations, and provide City staff with reliable and secure access to facilities necessary for the delivery of critical public services.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 168 Playground & Park Improvement Program
Department: Public Works
Category: Parks
Project Number: PK21221
2026/27 Budget: $1,100,000
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 City. 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 169 for the following Budget fiscal year. An extended 5-year plan will be established to plan longterm needs.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 170 Aquifer Storage and Recovery Project
Department: Public Works
Category: Water
Project Number: W7416
2026/27 Budget: $1,500,000
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 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 “ otice of navailability of Water and eed 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 dry years. These investigations, along with various negotiations, continue and Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 171 will continue until the water supply and diversion portfolio meet all reliability needs for the community.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 172 Orion Endpoint Installation
Department: Public Works
Category: Water
Project Number:
2026/27 Budget: $90,000
Project Start: 2021/22
Target Completion: Ongoing

DESCRIPTION
Badger Meter continually improves meters, radios (ERT), registers, and associated equipment to ensure the meters function as expected. It is important to house considerable stock to keep up with the demand in the field for improvements. As the Water Meter Accuracy Testing begins, equipment performing poorly will be upgraded to the news technology. This is an ongoing project that will be conducted every year to meet compliance with California Conservation Laws.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 173 UV System Cover
Department: Public Works
Category: Wastewater
Project Number:
2026/27 Budget: $35,000
Project Start: 2026/27
Target Completion: Ongoing

DESCRIPTION
This project will install a pergola-style shade structure over the Wastewater Treatment Plant’s ultraviolet (UV) disinfection system to protect the equipment from excessive heat and direct sunlight. The structure will provide passive shading while maintaining adequate ventilation and accessibility for operations staff. Installation of the shade structure is recommended by the system manufacturer, Veolia, to help regulate operating temperatures and support reliable system performance. The improvement will help protect critical treatment equipment, extend the life of system components, and ensure continued compliance with wastewater treatment requirements.

JUSTIFICATION
The ultraviolet (UV) disinfection system at the Wastewater Treatment Plant is a critical component of the treatment process, responsible for disinfecting treated effluent prior to discharge and ensuring compliance with regulatory water quality standards. The UV equipment is sensitive to prolonged exposure to direct sunlight and elevated temperatures, which can lead to overheating, reduced performance, and increased wear on electrical and control components.

The system manufacturer, Veolia, has recommended installation of a pergola-style shade structure over the UV system to provide protection from excessive solar exposure and help regulate operating temperatures. Without adequate shading, the system may be more susceptible to overheating, which can result in operational disruptions, increased maintenance needs, and a shortened equipment lifespan.

Installing a pergola-style cover will provide passive cooling and protection for the UV equipment while maintaining adequate airflow and accessibility for operations staff. This improvement will help ensure consistent system performance, reduce the likelihood of heatrelated equipment issues, and protect the City’s investment in critical treatment infrastructure.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 174 Completion of this project will support reliable plant operations, reduce long-term maintenance and replacement costs, and help ensure continued compliance with wastewater treatment and discharge requirements.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 175 Appendix
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City of Mountain House | Fiscal Year 2026/27 Budget 176 2023/2024 Resolutions Adopting Budget

BUDGET ADOPTION
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City of Mountain House | Fiscal Year 2026/27 Budget 177

FEES FOR SERVICES ADOPTION
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City of Mountain House | Fiscal Year 2026/27 Budget 178

APPROPRIATIONS LIMIT
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City of Mountain House | Fiscal Year 2026/27 Budget 179 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 180

UPDATED FINANCIAL MANAGEMENT MANUAL
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 181 Strategic Plan
Update to Strategic Plan
Draft April 2025
Introduction
Ensuring an exceptional quality of life for our community is at the heart of our city’s vision.

Achieving this goal requires ongoing collaboration between elected officials, City staff, and residents. Our Strategic Plan is guided by our mission and core values, serving as a roadmap for sustainable growth, innovation, and community well-being.

This plan is designed to align resources, policies, and initiatives with the needs and aspirations of our residents. By focusing on strategic priorities such as infrastructure, public safety, economic development, and environmental sustainability, we aim to build a vibrant, inclusive, and resilient City.

Through well-defined objectives, transparent governance, and community engagement, we are committed to fostering a thriving City where residents feel safe, connected, and proud to call home. Together, we will continue shaping a future that reflects our shared vision and values.

Mission Statement
The City of Mountain House is committed to a fiscally balanced budget through responsible governance and transparent communication, while providing reliable services, vibrant parks, and diverse recreation and maintaining a safe and inclusive community for all.

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.

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City of Mountain House | Fiscal Year 2026/27 Budget 182 • 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 self- awareness to monitor how our actions impact ourselves and others. • Competence: To competently discharge our duties and seek opportunities to increase our efficiency.
25 Powers
The city operates as a full-service municipality, providing a comprehensive range of essential services that enhance residents’ quality of life. With broad authority across multiple service areas, the City ensures the safety, infrastructure, and well-being of the community. Below is a detailed list of the City’s key responsibilities:

1. Fire and Emergency Services (contract with
French Camp McKinley Fire District)

2. Police (contract with Sheriff)

3. Cable Television/Broadband
Telecommunications

4. Master Restrictions Enforcement (via CSD)

5. Water

6. Wastewater Collection and Disposal

7. Engineering

8. Gas

9. Electricity

10. Library

11. Parks and Recreation

12. Public Education

13. Road Maintenance

14. Street Lighting

15. Solid Waste Collection/Disposal

16. Graffiti and Weed Abatement

17. Stormwater Management

18. Traffic Control and Investigation

19. Wastewater/Sanitation

20. General Government

21. Land Use Planning

22. Building and Safety

23. Code Enforcement

24. Animal Control

25. Economic Development
Strategic Issues Framework
The City Council has identified key strategic priorities that will guide their efforts in the coming years. They are committed to working collaboratively with staff, stakeholders, and the community to address these priorities efficiently and effectively.

Strategic Priorities
• 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.

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City of Mountain House | Fiscal Year 2026/27 Budget 183 • 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 decision-making processes.
• Fiscal Sustainability & Community Culture: The Council is committed to responsible financial management while preserving Mountain House's unique community character and values.
• Amenities & Quality of Life: Expanding recreational, cultural, and public amenities to support a vibrant and thriving community.

Department Mission Statements, Activities and Objectives As part of our comprehensive review and update of the Strategic Plan, each department has taken a deep dive into its core responsibilities, mission, and the essential services it provides.

This effort ensures that residents and stakeholders gain a clearer understanding of the wide range of tasks and initiatives already being managed by City staff.

In this process, departments assessed current programs, identified opportunities for improvement, and aligned their strategic objectives with the City's long-term vision. Using a future-focused approach, staff set priorities that anticipate community needs, enhance operational efficiency, and support sustainable growth.

This update reflects our commitment to transparency, innovation, and continuous improvement. By aligning our goals with emerging challenges and opportunities, we aim to provide the highest level of service while fostering a thriving, resilient, and connected community.

C M ’ O
The City Manager provides leadership and oversight into the City's day-to-day operations, ensuring services are delivered effectively and in alignment with the City's strategic goals. The City Manager directly oversees the following departments:

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City of Mountain House | Fiscal Year 2026/27 Budget 184 • City Clerk – Manages official City records, facilitates public meetings, oversees elections, and ensures compliance with transparency and public access laws. • Communications – Handles public information, media relations, community engagement, and ensures residents stay informed about City initiatives, events, and services.
• Public Safety – Oversees law enforcement, fire protection, emergency response, and disaster preparedness to ensure community safety.
• D C M ’ O – Manages essential operational services, including Public Works, Community Development, Code Compliance, Permitting Services, and Emergency Preparedness.
• Administrative Services – Provides internal support functions such as Human Resources, IT, Finance, Customer Service, Parks & Recreation, and Risk Management.

City Clerk
Mission Statement
The City Clerk’s office is dedicated to keeping local government transparent and accessible by maintaining accurate records, providing reliable support to the City Council and community, and ensuring regulatory compliance.

Current Activities
• Provide administrative support to the City Council,
• Ensure compliance with noticing requirements and posting of agendas • Implementation of a new agenda management system and public facing agenda portal • Managing public meetings
• Responding to Public Records Request in accordance with State Law. Ensure compliance with Political Reform Act Requirements including Form 700s and Campaign Filing Requirements
Strategic Objectives
• Provide Support to the City Council
o Ensure timely and accurate administrative support for City Council meetings and activities.
o Facilitate communication and coordination between City Council, commissions, and city staff.
o Provide guidance on legislative procedures and policy implementation. • Legislative Process & Agenda Management
o Ensure Compliance with Legal Requirements
o Publish City Council and commission agendas in accordance with legal deadlines and transparency standards.
o Complete the implementation of an upgraded system to enhance accessibility and efficiency.

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City of Mountain House | Fiscal Year 2026/27 Budget 185 o Conduct training for staff and City Council members on system functionality and best practices.
• Records Management & Public Records
o Ensure secure storage and accurate archiving of city documents. o Integrate newly adopted ordinances into the Municipal Code in a timely manner. o Conduct a comprehensive review of current records management practices. o Update the Records Retention Policy to align with state compliance regulations. o Process and respond to public records requests promptly and in accordance with state laws.
• 2026 General Municipal Election
o Establish deadlines for candidate filing, ballot measures, and other electionrelated activities. o Draft and present staff reports and resolutions required for election consolidation with San Joaquin County.
o Develop and distribute a candidate guide outlining filing procedures and campaign regulations
o Monitor and process all campaign finance filings as required by law. • Political Reform Act Compliance
o Conduct a review and implement necessary updates.
o Track required training sessions for officials and ensure completion within mandated timeframes.
o Oversee and verify that all required filings are submitted in accordance with Fair Political Practices Commission (FPPC) regulations.

Communications
Mission Statement
Committed to provide clear, transparent, and timely communication that informs, engages, and strengthens relationships with residents, businesses, and stakeholders. Through proactive outreach, responsive engagement, and multi-channel communication strategies, we ensure that every member of our community has access to accurate and meaningful information.

Current Activities
• Managing daily media inquiries and issuing press releases to keep the public informed. • Coordinating community meetings, town halls, and forums to foster civic engagement. • Updating the City's website, My Mountain House app, and social media channels with real-time, relevant information.
• Responding to resident inquiries and ensuring accessibility to city services and programs.
• Developing promotional materials, newsletters, and multimedia content to highlight city initiatives.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 186 • Strengthening crisis communication planning through media monitoring, emergency alert testing, and misinformation response strategies.
• Conducting media training for city staff to enhance preparedness and professionalism in public communication.
• Building relationships with local journalists, digital media creators, and stakeholders to improve information flow.

Strategic Objectives
• Increase Community Engagement
o Expand public participation through surveys, online engagement tools, and interactive forums.
o Host quarterly town halls and live Q&A sessions with city leadership. o Develop a resident feedback portal for transparent, two-way communication. • Enhance Digital Accessibility and User Experience
o Improve website functionality while maintaining a user-friendly interface (without AI chatbots).
o Launch a mobile-friendly city app for service requests, alerts, and community engagement.
o Ensure all public materials are ADA-compliant and available in multiple languages.
o Strengthen Crisis Communication and Emergency Preparedness o Develop a Crisis Communications Framework with predefined messaging templates for emergencies.
o Conduct annual crisis simulation training for city officials and staff. o Expand resident sign-ups for Everbridge emergency alerts to ensure real-time updates.
• Implement a Proactive Media Strategy
o Hold monthly media briefings to share city updates and key initiatives. o Strengthen relationships with local journalists, bloggers, and digital influencers to amplify messaging.
o Establish a digital press room with easy access to press releases, fact sheets, and city reports.
• Combat Misinformation and Strengthen Public Trust
o Monitor and respond to digital misinformation with verified, fact-based messaging.
o Encourage residents to rely on official city channels for accurate information. o Develop a "Myth vs. Fact" campaign to clarify common misconceptions about city policies.
• Improve Internal Communication and Staff Training
o Launch an internal communications platform to streamline messaging across departments.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 187 o Provide media training for department heads and frontline staff handling public inquiries.
o Establish an escalation process for efficiently routing resident concerns to the appropriate officials.
• Highlight Community Success Stories
o Showcase resident achievements, city developments, and community impact through social media and newsletters.
o Implement an "Echoes of the Hills" series featuring local perspectives on city initiatives.

Public Safety
The Public Safety Department ensures the protection and well-being of Mountain House residents through partnerships and direct services:
• Fire & Emergency Services – Provided through a contract with French Camp McKinley Fire District, ensuring rapid response to fire and medical emergencies. • Police Services – Contracted with the J q C ’ O , providing law enforcement, crime prevention, and emergency response.

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:
• 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 • 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:

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City of Mountain House | Fiscal Year 2026/27 Budget 188 • 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 • Develop a master plan for installation of cameras
• Provide recommendations for real-time monitoring, what we do with footage, and how to obtain footage from private residents
o pdate the City’s security camera policy
o Identify intersections and sections of roads identified as dangerous • Schedule patrols of motor officer and California Highway Patrol as appropriate • 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 City are dedicated to serving the community we swore to protect through emergency response, preparation, and prevention.

Current Activities:
• Finalize move in for second fire station
• 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
• 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 City staff in determining the need for weed abatement to minimize fire hazards • Offer Community Emergency Response Team (CERT) classes to the community 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 12Upgrade 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 189 • Explore and investigate opportunities 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 City 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
Deputy City Manager
The D C M ’ O oversees multiple critical service areas that directly impact the City's infrastructure, development, public safety, and overall quality of life. The office coordinates the following departments to ensure the efficient and effective operation of the City:
• Community Development guides the City’s growth and development to align with longterm planning goals and community needs. It includes:
o Building and Safety Services – Provides building and safety services, including plan review, permitting, and inspections.
o Construction Engineering – Ensures compliance with local, state, and federal regulations for construction activities.
o Plan Checking and Design Services – Provides plan review and design services for subdivisions, community facilities, and utility infrastructure. o Planning and Entitlement Services – Manages land use, zoning, and development projects.
• Code Compliance & Permitting Services ensures adherence to City codes and ordinances, maintaining the safety and integrity of properties and developments. It includes:
o Community Preservation – Focuses on property maintenance, nuisance abatement, and enforcement of local ordinances.
• Emergency Preparedness ensures the city is ready to respond effectively to natural disasters, public safety threats, and other emergencies. This includes disaster response planning, coordination with emergency services, public safety education, and resilience initiatives.
• Public Works is responsible for the maintenance and management of the City's essential infrastructure and services, including:
o Engineering – Oversees capital improvement projects, infrastructure planning, and construction management.
o Operations & Maintenance – Maintains roads, sidewalks, and other City assets to ensure public safety and sustainability.
o Utilities Management – Ensures the safe and reliable delivery of water, wastewater, stormwater, and solid waste services.

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City of Mountain House | Fiscal Year 2026/27 Budget 190 Together, these departments work in coordination to ensure the city operates smoothly, efficiently, and in alignment with the community’s needs and long-term vision.

Community Development
Building and Safety Services
Mission Statement
To ensure the safety, health, and welfare of the community by providing comprehensive building and safety services, including plan review, permitting, and inspections, in compliance with local, state, and federal building codes and regulations.

Current Activities
• Review and approve building plans for compliance with building codes, fire safety standards, energy efficiency requirements, and accessibility regulations. • Issue building, mechanical, electrical, plumbing, and other construction-related permits.
• Conduct inspections to verify compliance with approved plans and applicable regulations.
• Enforce building and safety codes to ensure the structural integrity of residential, commercial, and public buildings.
• Respond to public inquiries and provide guidance on building code requirements.
• Collaborate with developers, architects, engineers, and contractors to ensure projects meet all regulatory requirements.
• Investigate and address code violations and unsafe building conditions. • Implement and update permit processing procedures to improve efficiency and customer service.
• Support emergency response and disaster recovery efforts related to building safety.

Strategic Objectives
• 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 191 • 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.

Construction Engineering
Mission Statement
Manages oversight of construction activities to ensure infrastructure and facilities are 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
• 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
• Streamline acceptance process for development-related infrastructure projects • Complete offers of dedication and acceptance for all projects • Manage record-keeping and construction administration process • Expand services to Capital Improvement Program project delivery Plan Checking and Design Services
Mission Statement
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 192 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 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 • Implement Geographic Information System division
• 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 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 • Improve upon the wording of the Conditions of Approval in terms of clarity, enforceability, and relevance
• 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 193 • Coordinate regional projects, including Valley Link, Route 205 Managed Lanes, and the Delta Conveyance Project
• Complete the South Community Park
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
• Update the Master Plan and Specific Plans for the proposed land use and community facility changes
• Update General Plan
• Implement GIS division
• Interactive development project dashboard
• Support diverse housing options: affordable/work-force • 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 to refine procedural guidelines for planning processes, application requirements, annexation fee calculations, and other entitlement processes • Prepare a “cost of doing business” survey to compare Mountain House with other communities in the region
• Economic development strategy
• Begin initial phases of a transit-orientated development analysis 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 194 • 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 • 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 City 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 195 • 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
Emergency Preparedness
Mission Statement:

To prepare staff to respond to emergencies in a safe and timely manner in compliance with federal and state guidelines 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 Mc inley Fire Protection City, 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:

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 196 • 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 San Joaquin Council of Governments Strategic Objectives:
• Implement Traffic Calming Program
• Implement innovative/smart traffic solutions
• Establish KPIs for reporting traffic issues
• Create transparent and interactive tracking of transportation projects • Pursue federal and state transportation grant funding opportunities • Annually revise construction standard specifications and details • MOU with ValleyLink
• Multi-Modal Regional Mobility Hub
• Launch local transit services
• Implement the 5 Year Capital Improvements Program
• Develop phased implementation of the small cell and 5G/6G wireless system • Implement Traffic Management Center
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
• 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 197 Strategic Objectives:
• Launch tree program and tree ordinance
• Establish KPIs for GOGov
• Improve fleet transition to low-emission and improve preventative maintenance • 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 • Ensure equity for neighborhood and community parks in terms of amenities • Evaluate use of artificial turf on sports fields
• Street tree maintenance and sidewalk repair program sustainability 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 City stormwater conveyance system through contracted services • Evaluate alternative options for emergency sources of water • Obtain water and water storage for emergency water supplies • Work with MHD to preserve riparian rights north of Byron Highway • Initiate the Aquifer Storage and Recovery well to improve future water reliability • 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:
• Ensure Sustainable Water Supply
• Maintain infrastructure utilizing asset management system Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 198 • Reduce water loss
• Expand and upgrade Water Treatment Plant
• Promote environmental stewardship
• Ensure SB1383 compliance and waste reduction and recycling initiatives • Develop comprehensive utility CIP
• Support rate studies
• Seek water grant funding opportunities
Administrative Services
Administrative Services plays a vital role in ensuring the efficient operation of key City functions, overseeing Human Resources, IT Services, Customer Service, Finance, Parks & Recreation, Risk Management, and Emergency Preparedness. This department provides essential support that enables the City to deliver high-quality services to residents, businesses, and stakeholders while ensuring financial stability, operational efficiency, and public safety. • Administrative Services provides leadership and coordination across all divisions, ensuring policies, procedures, and resources align with the City's mission and strategic goals. This includes overseeing compliance, operational improvements, and internal support services.
• Human Resources manages employee recruitment, benefits, training, and workplace policies to cultivate a skilled and motivated workforce. • IT Services ensures the security, maintenance, and advancement of the City’s technology infrastructure, supporting efficient communication and digital innovation. • Customer Service serves as the first point of contact for residents, providing timely responses to inquiries, service requests, and community concerns. • Finance is responsible for budget management, financial planning, and fiscal oversight, ensuring the City's economic sustainability and responsible stewardship of public funds. • Parks & Recreation enhances community well-being by maintaining parks, recreational facilities, and programming that promote active and engaged lifestyles. • Risk Management focuses on identifying, assessing, and mitigating risks to protect the City’s assets, employees, and residents. This includes liability management, workplace safety programs, insurance oversight, and emergency preparedness planning.

Together, these divisions contribute to a well-run, transparent, and forward-thinking City government, supporting both day-to-day operations and long-term strategic goals.

Finance
Mission Statement
To safeguard City assets, to provide timely, accurate and useful financial information, and to process transactions in accordance with best practices, generally accepted accounting and auditing standards, and the City’s Financial Management Manual.

Current Activities
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 199 • Review and update Financial Management Manual.
• Work with the City’s external auditors to demonstrate compliance with industry’s best practices, generally accepted accounting standards and the City’s Financial Management Manual.
• Prepare financial and compliance reports – audits, AB1600 Report, State Controller’s Report of Transactions, State Controller’s Report of Government Compensation. • Review departmental requests, make recommendations to City Manager for spending and personnel decisions, compile budget documents, and make presentations to Council at budget workshop and adoption.
• Monitor budget performance and support departments in finding budget solutions. • Process vendor agreements while ensuring compliance with best practices and the City’s Financial Management Manual.
• Process payroll, accounts payable, receivables, and cash receipting. • 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.
• Manage general office operations including requests for supplies, services and equipment.

Strategic Objectives
• Implement accounts receivable and fixed assets modules. • Develop a cost allocation program.
• Identify appropriate training opportunities for Administration staff. • Investigate and develop new revenue generation opportunities. • Update Financial Management 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. • Issue Annual Comprehensive Financial Reports within six (6) months of year end. • Issue AB1600 report within 6 months of year end.
• Manage grant reporting and requests for payments.
• Compile and monitor operating and capital improvement budgets. • Develop, update, and implement fiscal policies.
• Prepare monthly developer billings.
• Develop a phone tree to more efficiently direct incoming calls. • Investigate appropriate phone systems for utility customer service. • Review and update as needed an informative frequently asked questions (FAQ) document for customers.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 200 • 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, website content, and social media postings.
• Evaluate and implement different payment options for utility accounts as they become available.
• Implement State-mandated requirements such as SB998.
• Provide annual updates on activities and compliance with the Tax Increment Financing (TIF) and Annexation Policy.

Human Resources
Mission Statement
To manage recruitment and retention programs, assist employees with benefit and employment issues, provide opportunities for training, coordinate with Risk Management to minimize employment issues and litigation, and comply with professional standards and legal requirements.

Current Activities:
• Recruitment to fill new positions and vacancies.
• Review and update the Personnel Policies and Procedures Manual as needed. • Ensure all aspects of labor agreements are implemented including cost of living increases, step increases and performance evaluations.
• Provide guidance and direction on compliance with personnel policies. • Provide guidance and information to supervisors; work with managers and supervisors to resolve performance issues.

Strategic Objectives:
• Implement an online employment application process compatible with platforms used by surrounding jurisdictions
• Schedule, review, and track timeliness of Employee Performance Reports • 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 201 • 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
Information Technology
Mission Statement
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.
• Provide support to staff as needed.

Strategic Objectives
• Identify and provide tools to enhance employee productivity. • Analyze the nature and cost of ISD services.
• Negotiate MOU for ISD services.
• Develop policies concerning use of technology including remote access, use of city equipment, and email retention.
• Evaluate use of the cloud for records storage and address any privacy concerns or vulnerabilities in the system.
• Develop an IT policy governing the use of City equipment and software.

Parks and 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, manage, execute, and report on all events.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 202 • Manage facility rentals.
• Plan and manage City-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
• 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.
• Recruit, train, supervise and evaluate full and part-time recreation employees. • Develop a sponsorship/donation policy program for Council adoption to offset the cost of special events and 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. • Implement Community Hosted Special Event Policies and Processes 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.
• Hire an additional Recreation Coordinator to manage facility rentals, manage new tennis center, new pickleball courts, new amphitheater rentals, and community hosted special event process.

Risk Management
Mission Statement
To manage City processes, policies, assets and infrastructure to minimize liability and loss.

Current Activities:
• Assume 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
• Coordinate with other departments to obtain information needed to file claims and assess outstanding risks
• Coordinate with Human Resources to identify and assign appropriate training opportunities and monitor completion
Strategic Objectives:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 203 • 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, 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 the 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. • Provide training for supervisors to minimize risk of employment-related claims.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 204 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 205 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)
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 206 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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 207 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 208 Administrative Services Director as Purchasing Agent with authority over all District purchasing activities pursuant to the Mountain House Code of Ordinances. Purchasing responsibilities include:
• 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 209

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.
• 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 Recycled-Content 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, Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 210 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).

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 nonItem 3.

City of Mountain House | Fiscal Year 2026/27 Budget 211 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 Recycled-Content 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 Recycled-Content Printing and Writing Paper and shall perform the following tasks to track procurement of RecycledContent 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 RecycledContent 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 212 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 213 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 long-term 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 C PCCAA 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 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 214 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 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 215 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:

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 216 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. pon approval, the Administrative Services Director will forward the purchase recommendation to the City Manager. If approved, the Administrative 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 217 • Vendors with multiple vouchers exceeding $5,000 for services within a fiscal year.

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
Materials only Yes Yes
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 218 >$50,000 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. 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 219 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 220 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 221 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 222 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 223 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 224 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 225 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 226

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 227 • Shall not be used for projects requiring formal bidding under the City’s C PCCAA 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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 228 • 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.

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 229 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. • 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 230 o Copies of 3 competing quotes or proposals for the product or service or a nonbid 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.
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 purchase

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 231 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 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:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 232 • 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.

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 “CO TRACTOR – Standard Agreement.”
3) Contractor will be required to submit current W-9, business license and Certificate of Insurance.
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 233 Projects from $45,001 - $175,000
For all jobs from forty-five thousand and one dollars ($45,001) through one hundred seventyfive 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. “ otice Inviting Informal Bids” shall be delivered to pre-qualified 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 “CO TRACTOR – Standard Agreement.”
b. Upon award, the contractor will be required to submit current W9, 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 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 234

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.

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 split-up component of a larger purchase is a matter of judgment. The Finance Department may reject proposed purchases exhibiting the following indicators of splitting:
• 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 235

EXHIBIT A
PDF
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.

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 (“C PCCAA) 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.

Q C ’ L C Y : 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 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 236 __________________________________________. 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 non-responsive 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
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 237 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 238 Phone: 209-522-9031
Email: [email protected]
Website: www.valleybx.com
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:
• 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 239 • 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 240 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 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 241 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 242 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 243

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.

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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 244

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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 245 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)
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 246

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 well-known 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
pon 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 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:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 247 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.

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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 248 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 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:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 249 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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 250 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 251 determined by the MHCSD City Manager or designee. Authorized 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 over-the-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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 252 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.

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.

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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 253 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 254 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 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 255 Date Procedure Individuals
Involved
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
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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 256 Date Procedure Individuals
Involved
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.

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:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 257 •  Accounting for fixed assets
•  Inventory of fixed assets
•  Surplus property
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. 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 258 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 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 259 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 260 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 261

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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 262 SECTION 430: INVENTORY OF FIXED ASSETS AND NONCAPITALIZED ITEMS

OVERVIEW
Performing periodic inventory checks of the City’s fixed assets and other designated noncapitalized 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 263 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 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 cost-effective, 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 264

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:
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 265 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 3.

City of Mountain House | Fiscal Year 2026/27 Budget 266 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 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 267 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
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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 268 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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 269 Date Procedure Individuals
Involved
April 22 The City Manager reviews and provides and
revisions to the proposed budget document
developed by the Finance Department.

City Manager
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
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 270 Date Procedure Individuals
Involved
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
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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 271 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 272 SECTION 550: FUND STRUCTURE AND CREATION AND CLOSURE OF FUNDS Objectives
The goals of the City’s fund structure are as follows:
• 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 273 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 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 decisionmaking 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 274

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 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 decision-making 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 275 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 276

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 cash flow balance. Short-term debt may also be used to finance short-lived 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 277 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 278 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 279 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:
• 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 longterm 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 280 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.

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 “O TSIDE AGE CIES” section of the County’s policy provides that all agencies placing funds in the County pool must comply with the County’s investment policy.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 281 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 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.

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City of Mountain House | Fiscal Year 2026/27 Budget 282 (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. (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%) Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 283 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
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, shortterm, 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 284 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 statisticalrating 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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 285 (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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 286

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.

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.

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City of Mountain House | Fiscal Year 2026/27 Budget 287

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 shall be to identify a comparable benchmark to the investment duration. (i.e. 90-day U.S. Treasury Bill, sixmonth 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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 288 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 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 289 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 290

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. Restrictions pertaining to investment type, investment amount, and investment 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 291 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 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.

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City of Mountain House | Fiscal Year 2026/27 Budget 292 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 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 sellerborrower.

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 " medium-term 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 fiveyear maturity range. MTNs issued by banks are also called " bank notes." Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 293 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.

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.

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City of Mountain House | Fiscal Year 2026/27 Budget 294 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.

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. “ eros” or “strips” mature at face Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 295 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.

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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 296

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 state-chartered 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 297

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. otes 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 298 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. b. Verifying that all utility refund batches sent to the County for payment have been recorded in the GL for the month.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 299 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.

3. After identifying any differences, the reconciler will complete the reconciliation by submitting the following documents for review to a reviewer who is not typically involved in executing or routinely reviewing the day-to-day cash receipting or disbursing processes, such as the Administrative Services Director or Finance Director:
a. County EFS printout showing the balance in the County Treasury at the end of the previous month
b. Tyler Pooled Cash Report as of the previous month end c. Listing of any differences between the two
d. Supporting documentation for any significant differences that will carry forward into the following month

4. After reviewing the bank reconciliation and supporting documents and determining that any differences appear appropriate, the reviewer will initial or otherwise indicate review of the bank reconciliation packet, which will then be filed.

Utility Payment Lockbox
On a monthly basis by the 15th day of each month, the Finance Department will reconcile the utility payment lockbox account for the previous month according to the following procedure:

1. First, the deposits and withdrawals from the Utility Payment Lockbox account will be reconciled to the AVR reports as follows.
a. Using a template designed for these purposes, the Finance Department will recompute the ending balance in the lockbox account using the total payments received reported in the utility billing system. This will ensure that if the total payments received in the lockbox do not match the payments received in the billing system, the difference will be identified. b. The reconciliation will account for the differences identified, including the following common differences:

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 300 i. Timing differences such as payments included in the utility billing system in a different month from the month they are deposited into lockbox bank account.
ii. The receipt of customer deposits and overpaid amounts in the current month in the lockbox account that will not be applied to a customer account until a future month.
iii. The application of customer deposits and prior month overpayments to customer accounts which result in a reduction to the customer account balance in the current month for payments that may have been posted to the lockbox account in previous months.
iv. Merchant processing fees, bank service charges, and other fees deducted from the bank account but not accounted for in the utility billing system.
v. Refunds on closed accounts that may be treated as a negative payment in the billing system even though the refund payment is not actually made from the lockbox account and therefore does not impact the lockbox bank balance.

2. After reconciling the activity in the lockbox bank account to the utility billing system, the Finance Department will post the monthly journal entry to record the utility billing activity in the subsidiary system. The entry will be designed to eliminate timing differences in the ending account balance by distributing those differences out to revenue accounts and then reversing them in the following month.

3. After the posting of the utility billing journal entry for the month, the Finance Department staff will verify that the total balance in the 1116 Cash in Lockbox account in the General Ledger matches the ending balance in the lockbox bank account.

Other Bank Accounts
For any other bank or investment accounts, the Finance Department will compare the statement balances to the General Ledger on a monthly basis and make the appropriate adjustments by the end of the following month. The reconciling items for other bank accounts will be typically minimal.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 301 SECTION 640: IMPREST CASH CHECKING ACCOUNT POLICY

OVERVIEW
Mountain House Community Services District’s offices and facilities are located approximately 27 miles from the San Joaquin County Treasurer’s Office in Stockton. Because the San Joaquin County Treasurer serves as the City’s treasurer pursuant to Government Code Section 61052, the City is required to transport checks for deposit to the County Treasury and to obtain warrants drawn on the County Treasury to pay the City’s obligations. The physical distance between the two locations makes frequent deposits, a best practice in internal control, more challenging. The City currently utilizes desktop deposit technology to scan and deposit incoming checks at the City for incoming customer utility payments, which are deposited to a designated account, and would like to implement similar desktop deposit technology for non-utility payments as well to facilitate faster clearing of incoming funds. The City also has recurring bills with a short window of time to make payment and is left with an extremely short turn-around time to submit these bills to the County for processing to ensure the payments are disbursed timely and penalties avoided.

Government Code Section 53952(b) permits the City to establish a revolving fund in an amount not to exceed one hundred and ten percent (110%) of one twelfth (1/12) of the City’s adopted budget for the current fiscal year.

Deposit of Incoming Payments to Imprest/Revolving Account For all incoming check payments that are not utility payments, amounts and payment details will be logged on the City’s incoming revenue log. The incoming checks and any supporting documentation will be placed in a secured container in the Accounting Manager’s office. Key access will be limited to the Accounting Manager and Finance Director. The City will then deposit all incoming checks to its imprest/revolving account, preferably using desktop deposit technology where the checks are scanned and deposited right in the City’s Office. The imprest account is currently at Wells Fargo Bank; District staff will not have ability to add accounts to the desktop technology. The bank will control access to the system with usernames and passwords.

A Finance Department staff member will compare the incoming revenue log total with the total deposited by desktop deposit. After resolving any differences, the Finance Department staff member will post a deposit to the Incode General Ledger system 1112 imprest/revolving account.

All incoming checks subject to this policy should be deposited to the imprest/revolving account within two (2) business days of receipt. Checks that have been deposited successfully through desktop deposit should be bundled by deposit date and maintained in a secure location. If the Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 302 original checks are not requested by the bank within thirty (30) days of the desktop deposit, they should be destroyed.

If the City receives a check that cannot be scanned using the desktop technology, the maker will be requested to provide a replacement and the original payment will be stored in the secure container until a replacement is successfully deposited. The original payment will then be voided and returned to the maker.

Maximum Balance and Deposit of Excess to County Treasury The City intends to maintain no more than three-hundred thousand dollars ($300,000) in the imprest/revolving account on an ongoing basis. When the balance exceeds this amount continuously for more than two (2) weeks, a Finance Department staff member will prepare a check payable to the County Treasury and deposit the excess funds in the County Treasury.

Allowable Uses of Funds from Imprest/Revolving Account
Other than flowing into the County Treasury, the funds in the imprest/revolving account will be used sparingly in the discretion of the Finance Department and in any event may only be used to pay for lawful expenses or obligations of the City that meet both of the following two criteria:
• The expense or obligation is currently or routinely required to be paid within a short time period that creates uncertainty as to whether it will be processed timely if payment is made through the County Treasury OR is five hundred dollars ($500) or less, AND;
• The payment is to a payee who is exempt from IRS form 1099 reporting (e.g. a governmental entity or corporation) or is of a nature that is exempt from 1099 reporting by reason other than dollar amount (e.g. accountable plan reimbursement to an employee, which would never be subject to 1099 reporting regardless of dollar amount). Payments that would be subject to 1099 reporting but for the fact that they fall below six hundred dollars ($600) are not permitted, because of the potential for multiple payments to occur within one year. • Examples of allowable uses are (this list is not all-inclusive):
• Electric utility bills paid to a government agency exempt from 1099 reporting where there is a short time before payment is due
• Payment of State Disability Insurance taxes where there is a short time before payment is due
Signature Authority
Checks drawn on the imprest/revolving account may be signed by any of the following:
• Administrative Services Director
• Finance Director
Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 303 • Assistant Finance Director
• Accounting Manager
Signers of checks drawn on the imprest/revolving account will review backup documentation and ensure the proposed disbursement is consistent with this policy prior to signing any checks.

Disbursement Procedure
• The imprest/revolving account will be set up as a Cash in Other Banks account (GL object 1112) in the Tyler Incode General Ledger system. All disbursements from the imprest/revolving account will be prepared using the Incode General Ledger system.
• Check stock for the imprest account will be stored in a locked safe. • One of the authorized signers noted above may designate a list of obligations that will routinely be paid from the imprest/revolving account. Any transaction not so designated must be approved for use of this procedure prior to preparation of the check.
• Where feasible, a Finance Department staff member other than an authorized signer should prepare all checks for disbursement from the imprest/revolving account after reviewing appropriate backup documentation. • Backup documentation supporting the transaction should be attached to the vendor invoice within Incode.
• Checks and supporting documentation will be presented to an authorized signer for a physical (wet) signature. No signature stamps, check signing machines, or signature images will be permitted.
• After the check is signed, the Finance Department staff member preparing the check will distribute it to the appropriate party.

Bank Reconciliation
The imprest/revolving account will be reconciled to the Incode general ledger account on a monthly basis by the end of the month following the month being reconciled. A Finance Department staff member who is not involved in the disbursement process should reconcile the account using the following procedure:

1. Obtain the bank statement directly from the bank online or unopened in the incoming mail.

2. Compare the transactions on the bank statement to transactions recorded in the 1112 General Ledger account for the imprest/revolving account.

3. Inspect copies of checks clearing the account to determine the check vendor on the check appears consistent with the vendor shown in Incode for that check.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 304

4. Prepare and sign a reconciliation report identifying all differences (such as individual outstanding checks) between the bank statement balance and the General Ledger balance.

5. If the balance in the account has exceeded $300,000 for two consecutive weeks, recommend that a check be written to deposit excess funds in the County Treasury.

Submit the reconciliation report on a rotating basis for review to each of the authorized signers on the imprest/revolving account.

SECTION 710: UTILITY BILLING AND PAYMENTS
New Service
Inframark Customer Care department will process all requests to establish service. Homeowner may email or fax completed service order along proof of ownership to Inframark. Inframark will set up in AVR billing system. Inframark sends a log each night to MHCSD and Inframark Field Reps of all new accounts.

Final Account (Close Account)
Inframark Customer Care department will process all requests to stop service. Homeowner may email or fax required documents to Inframark Customer Care department. Inframark sends a log each night to MHCSD and Inframark Field Reps of all discontinued accounts.

Monthly Billing and Payments
Inframark processes all monthly billing using the AVR program. Payment options are as follows:
• Mail to: MHCSD – PO Box 684000, Houston, TX 77268
• In person (check, cashier’s check, money order): MHCSD – 251 E. Main Street, Mountain House CA 95391
• Drop Box (check, cashier’s check, money order) at MHCSD office – Box is emptied at 4:30 pm (PST)
• Online at www.mountainhousecsd.org
• Pay by phone (800) 441-4501
• Scan to Pay on the bottom of your bill
• Automatic Bank Draft – Call 855-327-0900 for information Payments mailed to the Houston address and all electronic payments are processed by AVR and deposited to the MHCSD Lockbox Wells Fargo Bank account.

A Customer Service Representative will process payments made at MHCSD into the AVR system. The Customer Service Representative then gives the checks to the Accountant I who scans the checks and performs a desktop deposit to deposit the funds to the Wells Fargo Lockbox account.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 305 Delinquent Notices
Inframark will calculate and process delinquent notices for all accounts that have not paid by the due date. Inframark will then mail notices to each customer. 48-hour door tags
Inframark will calculate the 48-hour door tag file. They will then send the file to MHCSD.

MHCSD will print the tags. An Inframark field representative will hang the tags on the property.

Disconnect for non-payment
Inframark will calculate the disconnect list/file. They will then send it to MHCSD for approval.

MHCSD Customer Service Rep will review each account. CS Rep will review recent notes and payments along with any possible order to close account due to sale. Upon approval, Inframark will then add fees to account ($100.00 Cut-Off Charge + $300 Deposit). MHCSD will print the tags. An Inframark field representative will hang the tags on the property and disconnect the service.

Customer must call Inframark Customer Care Department with confirmation number after making payment. The Customer Care Department will confirm payment and generate an order to have service restored.

Liens
MHCSD Customer Service Representative will run a Collection Accounts Detail Listing for all accounts with a delinquent balance of $500.00 (amount subject to change) at the beginning of each month. Representative will review each account status, recent notes, payments, amortization plans and check to see if the account holder is an owner or tenant.

CS Representative will mail Lien Notification letters to the owner of each property by certified mail. CS Supervisor will add $100.00 lien fee to the account. CS Representative will log account information on the Lien Tracking spreadsheet and on the account. The owner will have 10 days from the date of the letter to appeal. CS Supervisor will notify Tracy Press (via email) to run lien publication 10 days prior to Board Meeting. CS Supervisor will submit a listing of unpaid accounts to the Administrative Services Director to be included on the Staff Report. City Council will review and approve for lien or give further collection instructions. City Manager and Secretary to the Board will sign & notarize documents. CS Representative will send documents to San Joaquin County for recording. CS Supervisor will review all unpaid liens and roll them over to the County tax roll in August. CS Representative will have the lien amount written off in AVR by Inframark.

Collection on Closed Accounts
CS Supervisor will run a Collection Accounts Detail Listing each month and review accounts that are delinquent for 30+ days. Supervisor will review owner information, payment information, account notes and new account holder. If the account holder was a tenant, the unpaid balance Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 306 will be transferred to the owner’s account. If the property has been sold and is currently in a new owner’s name then the unpaid balance will be sent to collections. CS Supervisor will log account information on a spreadsheet and email to Inframark in order to have the money transferred or sent to Collections Unlimited.

Reconciliation
At the end of each month, the Accountant I downloads the bank statement for the Wells Fargo Lockbox account. S/he also receives a “Daily Cash Sheet” or “Batch Sheet” for the month that summarizes all of the payments processed in AVR for the previous billing cycle via e-mail from an Inframark representative. The report lists payments by date and payment type only, but the totals agree to the AVR reports for the previous billing cycle. Using these two reports, s/he determines the transactions that posted to either the bank account or AVR but not both and completes a reconciliation identifying the reconciling differences between the two. After adjusting for outstanding items, the balance in the Wells Fargo Lockbox account should agree to the ending balance of undistributed overpayments per the AVR End of Month Recap, since the undistributed overpayments should be retained in the lockbox account until they are ultimately distributed to the various categories of collections (i.e. garbage, water operating, water

ETHICAL STANDARDS OF CONDUCT
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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 307 Prohibited Practices
The following practices are specifically prohibited in performing purchasing activities on behalf of the City:
- 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. Inexpensive advertising items bearing the name of the firm—such as pens, pencils, paper weights or calendars—are not considered articles of value or gifts in relation to this policy.
- 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.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 308

POOLED CASH
The purpose of these guidelines is to set forth standards, responsibilities and procedures for the prudent investment of pooled cash and cash held by fiscal agents.

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 Treasury 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 below. The “O TSIDE AGE CIES” section of the County’s policy provides that all agencies placing funds in the County pool must comply with the County’s investment policy.

INTERFUND LOAN POLICY
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:
- 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.

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 Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 309 the loan amount, term, rate of interest, and amount of interest due on the total amount of the loan.

Interfund loan agreements will be reviewed and approved by the Board annually.

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.

DEBT MANAGEMENT POLICY
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.

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 creditworthiness.

Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 310 - 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.

Purposes for Which Debt May Be Issued
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. - Long-term debt financings are appropriate when the following conditions exist:
o When the project to be financed is necessary to provide basic services. o When the project to be financed will provide benefit to constituents over multiple years.
o When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
o 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. - Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
- The City may use long-term debt financings subject to the following conditions:
o The project to be financed must be approved by the City Council . o 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%.
o The City estimates that sufficient revenues will be available to service the debt through its maturity.
o The City determines that the issuance of the debt will comply with the applicable state and federal law.

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 cash flow balance. Short-term debt may also be used to Item 3.

City of Mountain House | Fiscal Year 2026/27 Budget 311 finance short-lived capital projects; for example, the City may undertake lease-purchase financing for equipment.

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.

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.

Mountain House City CouncilMay 14, 2026

Mountain House City Council
May 14, 2026