City unveils proposed FY2025‑26 budget and Measure Q spending plan; council to consider final budget June 17

City staff presented the proposed fiscal year 2025–26 budget to the Manteca City Council on June 3, laying out a draft operating plan that anticipates Measure Q sales tax revenue and proposes targeted one‑time and ongoing spending for streets, public safety and capital projects.

Why it matters: Measure Q (a 0.34 percent local sales tax approved by voters) is expected to create a new annual revenue stream for the city; the council’s early allocations will shape capital projects, staffing and services for the coming year.

Interim Director of Finance Matt Boring and Budget Manager Lana McBroom described a citywide proposed operating budget of roughly $312.6 million in revenues and $311.2 million in expenses, producing an initial citywide surplus of about $1.4 million before pending personnel adjustments. General Fund revenue was shown at approximately $80.5 million with proposed general fund expenditures near $80.8 million, including $511,000 in one‑time general fund capital. Staff emphasized the budget is a working draft and will be refined before final adoption.

Measure Q and priorities: Staff and the finance ad hoc (Mayor Singh and Vice Mayor Halford) presented a Measure Q allocation plan that dedicates $4.5 million to street improvements, $2 million for one‑time police needs and $3.65 million for fire needs in the first year. City Manager Toni Lundgren said Measure Q funds allow the city to begin staffing and capital projects residents prioritized during the measure campaign, including land acquisition and initial design work for a new police headquarters and Fire Station 6.

Personnel and operations: The draft budget proposes seven new full‑time positions and one reclassification; three positions would impact the General Fund (including a fully funded community service officer and two patrol officers partially funded by a federal COPS grant and Measure M). Staff warned adding personnel could reduce reserves and that a citywide class and compensation study is underway to address recruitment and retention.

Enterprise funds and timing: Staff noted planned water and sewer rate increases to support utility enterprise funds; short‑term deficits for sewer and water reflect timing gaps before anticipated bond proceeds. Solid waste rates implemented in FY2024 have begun to build a reserve for that fund. The budget also reflects $14 million in ARPA allocations that must be spent by the federal deadline.

Next steps and council directions: Councilmembers asked for additional detail on (1) which funds are producing the citywide surplus, (2) Great Wolf Lodge tax sharing and when the city will begin retaining larger shares of TOT, (3) golf course subsidies, and (4) development‑fund drawdowns. Staff agreed to provide fund‑level schedules, clarify Great Wolf revenue timing and carryovers, and return with the final budget for adoption on June 17. No final appropriations were made on June 3; council received the presentation and provided feedback.