2026/27 Budget
Fiscal Year July 1, 2026 – June 30, 2027 · Presented June 9, 2026 Key dates from planning to adoption
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
January 16, 2026 Capital Improvement (CIP) budget submittals January 22, 2026 Public safety budget meeting
May 5, 2026 City Manager review
May 8, 2026 Draft budget distributed to City Council
May 14, 2026 Budget Workshop
June 9, 2026 City Council Budget Adoption ✓
July 1, 2026 Start of new fiscal year
Fiscal
Year
Budget
Schedule
Strategic Plan
Eight priorities guiding every budget decision
Incorporation Transition
Managing a smooth shift from district
to city governance with aligned
operations and services.
Water Resources
Prioritizing long-term water reliability
and quality in response to ongoing
drought conditions.
Development
Supporting well-planned mixed-use
and commercial growth that
enhances livability and the local
economy.
Public Safety
Expanding resources and adopting
new technologies to keep the
community safe and responsive.
Transportation
Improving roads for all users and
working with partners to expand
public transit and ease congestion.
Culture & Communication
Strengthening trust through
transparent communication and
collaboration between Council, staff,
and residents.
Fiscal Responsibility
Ensuring long-term financial health
while honoring the city's unique
character and values.
Quality of Life
Investing in parks, cultural amenities,
and public spaces to support a
vibrant, inclusive community.
Budget Principles
The rules that guide how we manage your money
01 Structurally Balanced
Budget
The city cannot plan to spend
more than it earns. No deficit
spending.
02 Multi-Year Financial
Projections
We look ahead multiple years —
not just year to year — to plan
responsibly.
03 User Fees Set at Cost of
Service
Permit and service fees reflect
the actual cost to provide that
service.
04 One-Time Money for
One-Time Purposes
Special funds like grants are
used for specific projects, not
recurring costs.
05 Capital Projects Fund
Operations
Big infrastructure projects
include funding for their future
operating costs.
06 Best Practices for
Reserves
We maintain reserve funds
following best practices to
handle surprises.
07 Stable Revenue for
Operations
Core city services are funded by
reliable, recurring revenue
sources only.
08 Fiscal Impact on Every
Decision
Every staff report must include a
financial impact analysis before
approval.
Operating Budget Excellence Award FY 2025/26
Recognized by two leading government finance organizations CSMFO – CA Society of Municipal Finance Officers GFOA – Government Finance Officers Association City of Mountain House — Organization Chart
Mountain House 2026
Our community at a glance
8,200+
Homes Completed
~ 30,687
Residents
6.9 sq mi
City Area
Total Completed Housing Units
Our city is growing — and the infrastructure is aging
4,790
5,147
5,757
6,244
6,786
7,184 7,288 7,460 7,754
8,238
0 1000
2000
3000
4000
5000
6000
7000
8000
9000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
8,200+
Homes Completed (Dec 2025)
~50%
Built before 2010
15+ yrs
Average age of infrastructure
Aging infrastructure = rising repair costs year over year Mountain House
Accepted
Improvements
Built Environment — FY 2025/26
All the infrastructure the city is responsible for maintaining Water Infrastructure
• Raw water basin
• 3 water booster pump stations
• Water treatment plant & tanks
• 122 miles of water mains
• 3,311 water valves
• 844 fire hydrants
Wastewater & Stormwater
• Expanded wastewater treatment
plant
• 2 lift stations
• 88 miles of sanitary sewer lines
• 1,639 sewer manholes
• 98 miles of stormwater lines
• 2,420 catch basins
Transportation & Roadways
• 220 lane miles of paved roads • Actual 218.79 Lane Miles, 90.04 Centerline Miles. (Source: StreetSaver)
• 163 miles of sidewalks
• 47 miles of sound walls
• 19 signalized intersections
Lighting & Streetscape
• 3,150 streetlights
Community Buildings & Parks
• 19 city buildings / 155,943 sq ft
• 12 parks & playgrounds
Landscaping & Trees
• 11.9 million sq ft of landscaping
• 24,000 trees
For every $1 collected, here's who receives what
Educational Revenue Augmentation 26.1%
Lammersville Unified Schools 19.2%
City of Mountain House 18.8%
County General 17.1%
Byron-Bethany Irrigation 10.7%
S.J. Delta Community College 3.6%
County Library 1.6%
County Office of Education 1.5%
SJC Mosquito Abatement 0.7%
Tracy Cemetery 0.5%
SJC Flood Control 0.2%
Road District 5 0.0%
Mountain House only receives about 19¢ of every property tax dollar — the rest goes to schools and other agencies.
Property
Tax
Allocations
Sales Tax Rate Comparison
Mountain House has one of the lowest rates in the entire region City of Livermore 10.25%
City of Stockton 9.00%
City of Lathrop 8.75%
City of Brentwood 8.75%
City of Tracy 8.25%
City of Manteca 8.25%
City of Lodi 8.25%
City of Mountain House 7.75%
City of Escalon 7.75%
City of Ripon 7.75%
County base rates: San Joaquin 7.75% · Contra Costa 8.75% · Alameda 10.25% How Much Money the City Will Receive
Total budget: $84.6 million across five funding streams 18%
23%
10%
31%
18%
General Fund $15.4M
For everyday city services — administration, basic operations, general city needs.
Special Assessment Funds $19.4M
Roads, medians, parks maintenance, and public safety — from special taxes on residents.
Special Revenue Funds $8.6M
Must be spent on specific purposes — like gas tax for roads or grants for transportation.
Utility Funds $25.9M
From your water, sewer, and garbage bills. Pays for those specific services.
Restricted Funds $15.4M
Tied to specific capital projects — new parks, roads, facilities. Cannot be redirected. TOTAL: $84.6 Million How the City Plans to Spend Money
Total spending: ~$85.1 million
12%
42%
14%
32%
Expensed Staff Salaries $10.6M (12%)
City workers — admin, maintenance, recreation, public works staff.
Operations & Maintenance $35.1M (42%)
Running daily services — fixing roads, maintaining parks, utility operations.
Capital Projects $11.8M (14%)
Building new things or making major improvements to existing infrastructure.
Debt Payments $27.6M (32%)
Paying back bonds and developer agreements for roads, parks, and city buildings.
Operations
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance
Funds Revenue Operations Net Balance
General & Related Funds $43,350,743 $34,019,570 $9,331,173 Enterprise Funds $12,442,550 $11,500,931 $941,619
Restricted Funds $1,370,000 $238,700 $1,131,300
Total $57,163,293 $45,759,201 $11,404,092
Operations, CIP, Debt, & Carryover
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance
Funds Carryover Revenue Operations CIP Debt Net Balance General & Related Funds $1,905,473 $43,350,743 $34,019,570 $10,100,000 $- $1,136,646 Enterprise Funds $1,662,799 $25,912,445 $11,500,931 $1,665,000 $13,859,895 $549,418 Restricted Funds $- $15,364,971 $238,700 $- $13,699,971 $1,426,300 Total $3,568,272 $84,628,159 $45,759,201 $11,765,000 $27,559,866 $3,112,364 Change in Fund Balance
Actual vs. Budget
Fund Operations Capital Outlay Net Balance
(6,000,000)
(4,000,000)
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025
Actual - General & Related Funds Acutal - Enterprise Funds Budget - General & Related Funds Budget - Enterprise Funds Future Development
Infrastructure improvements coming to Mountain House
Central Park Phase 2 Central Park Phase 3 Central Park Phase 4 College Park A College Park B Corporation Yard
Neighborhood J Park Neighborhood I Park Neighborhood L Park South Community Park North Community Park Old River Regional Park MH Creek South of Byron MH Creek North of Byron Police Improvements City Obstacles
Key financial challenges we must address
Governmental Enterprises
• Special taxes are not covering their expenses
• City is accepting many improvements in the near future • Maintenance and repair costs are increasing
• City governmental assets are over 63% depreciated
• CIP and asset management costs will increase
• Reserves will be required to maintain assets
• Property and sales taxes insufficient to cover subsidies • FY 2025/26 subsidy: ~$3.1 million
• FY 2026/27 subsidy: ~$7.2 million
• Utilities are not covering their expenses
• Maintenance and repair costs are increasing
• BBID increased rates by 28% after Prop 218 adoption
• Utility fixed assets are over 36% depreciated
• CIP and asset management costs will increase
• $15.4 million owed to the General Fund
• FY 2025/26 subsidy: ~$2.5 million
• FY 2026/27: No subsidy needed, but CIP reserves draw down by $1M
• Updated Rate Study to ensure full cost recover
City Actions
What the city is doing to address these financial challenges Governmental Enterprises
Pursue Vehicle License Fee (VLF) tax revenue (2 – 4 Years) Grow sales tax revenue through commercial development (Over the next 10 Years)
Maintain lean staffing levels (Foreseeable future)
Pursue assessment districts for future parks (Before parks are built) Consider local sales tax in future (2 – 3 Years)
Complete a Prop 218 rate study in (FY 2026/27)
Ensure rates include future CIP costs and rising maintenance expenses (FY 2026/27)
Ensure rate study accounts for the $15.4M owed to General Fund (FY 2026/27)
Total: 179.3 positions across all departments
Landscaping 26
Administrative
Department 29.7
Fire and Emergency
Services 24.5
Public Works
Department 18
Garbage Disposal 14
Utility Operations 16
Community
Development 13
Sheriff 13
Library Services 8.6
Rank Security 8.5
Traffic Signal/Street
Light Maint 8
Most service delivery is contracted — keeping costs lower than direct employment.
Staff &
Contracted
Positions
FY 2026/27
The total FTEs include the additional 5 FTEs that were included in the Operational Framework for the Tennis Center.
City Debt — What We Owe for Infrastructure Projects
This debt built the infrastructure the community uses every day Mountain House could not have been created without debt. When public improvements are completed, the city accepts them and pays back the development community as funds become available. All debt is tied to capital improvements that increase the city's assets.
Utility Debt
Water, sewer & stormwater bonds
Revenue Bonds 2019 A&B $27,255,000
Revenue Bonds 2020 A&B $126,945,000
2023 Utility Revenue Bonds $42,775,000
Total Bonded Debt $196,975,000
Utility Subsidies Payable $15,424,097
TOTAL UTILITY DEBT $212,399,097
Development Debt
Financed city growth & infrastructure
2021 Lease Revenue Bonds $33,160,000
Developer Notes Payable $65,980,770
TOTAL TIF DEBT $99,140,770
This debt built real assets — roads, parks, water systems — that the community uses every single day.
What We Plan to Build — The Next 5 Years
Capital Improvement Program (CIP): $29.8 million over 5 years 12 10
5 3
0 0
2 4
6 8
10 12
14 Roads &
Transportation
Facilities &
Equipment
Utility
Upgrades
Landscape
& Parks
Public
Safety
Roads & Transportation $12.4M
Facilities & Equipment $9.5M
Utility Upgrades $4.8M
Landscape & Parks $2.6M
Public Safety $456K
TOTAL: $29.8M · Future pipeline: $18M more
CIP Projects 2026/27 — Highlights
Capital Improvement Program: Key Projects Funded This Fiscal Year 01 Annual Tree Trimming Program
Budget: $276,000 02 Pedestrian & Traffic SafetyBudget: $1,136,582 03 Bikeway Safety Improvements
Budget: $1,863,000
04 Neighborhood Parks Restrooms
Budget: $3,000,000
05 Sidewalk Repair & Replacement
Budget: $400,000
06 Pavement Management Program (PMP)
Budget: $3,467,880
07 Red-Light Camera Enforcement Program
Budget: TBD
08 Aquifer Storage & Recovery Project
Budget: $5,001,581
City Actions to Adopt Budget
• Resolution adopting the fiscal year 2026/27 budget with any Council approved changes and the addition of five FTEs positions that were included in the Operational Framework for the Tennis Center
• Resolution establishing Proposition 4 for fiscal year 2024/25 and fiscal year 2025/26 appropriation limits based on auditor’s calculations and establishing Proposition 4 for fiscal year 2026/27 appropriation limits for the City of Mountain House • Resolution establishing schedule of fees for services • Certification of assessments
• Resolution approving updated financial management manual District Actions to Adopt Budget
• Resolution adopting the fiscal year 2026/27 budget
• Resolution establishing Proposition 4 for fiscal year 2024/25 and fiscal year 2025/26 appropriation limits based on auditor’s calculations and establishing Proposition 4 for fiscal year 2026/27 appropriation limits for the Mountain House Community Services District
Thank You!
Questions & Discussion
Operations & CIP
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance
Funds Revenue Operations CIP Net Balance
General & Related Funds $43,350,743 $34,019,570 $10,100,000 -$768,827 Enterprise Funds $12,442,550 $11,500,931 $1,665,000 -$723,381 Restricted Funds $1,370,000 $238,700 $- $1,131,300
Total $57,163,293 $45,759,201 $11,765,000 -$360,908
Operations, CIP, & Debt
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance
Funds Revenue Operations CIP Debt Net Balance
General & Related Funds $43,350,743 $34,019,570 $10,100,000 $- -$768,827 Enterprise Funds $25,912,445 $11,500,931 $1,665,000 $13,859,895 -$1,113,381 Restricted Funds $15,364,971 $238,700 $- $13,699,971 $1,426,300 Total $84,628,159 $45,759,201 $11,765,000 $27,559,866 -$455,908 Special Assessment Funds
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance Funds Carryover Revenue Operations CIP Transfer Net Balance Special Tax No. 1: Roads $- $11,435,865 $4,766,297 $- -$6,669,568 $- Special Tax No. 2: Public
Safety $- $5,786,709 $11,747,056 $- $5,960,347 $-
Special Tax No. 3: Parks $- $1,129,836 $6,355,891 $1,100,000 $6,326,055 $- Special Tax No. 4: Public
Works $673,972 $1,069,334 $1,342,622 $1,952,535 $1,551,851 $- Total $673,972 $19,421,744 $24,211,866 $3,052,535 $7,168,685 $- Special Revenue Funds
Revenue vs. Spending
Fund Operations Capital Outlay Net Balance Funds Carryover Revenue Operations CIP Transfer Net Balance Development Services $- $1,780,000 $5,080,411 $- $3,300,411 $- 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 $1,231,501 $8,555,964 $6,040,411 $7,047,465 $3,300,411 $-