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Mountain House adopts $84.6 million FY2026–27 budget; council to pursue utility rate study
Summary
Council unanimously adopted the city and CSD budgets for FY 2026–27, approving operations, CIP priorities and a staffing plan. Total revenues across funds are about $84.6 million; staff said a Prop 218 utility rate study and revenue options will be brought back later this year.
Mountain House approved its fiscal year 2026–27 budgets for the city and the Community Services District (CSD) on June 9, with unanimous roll-call votes to adopt the spending plans and related resolutions.
Finance staff presented an overview showing total expected revenues across all funds of approximately $84.6 million. Key line items included: General Fund revenues of about $15.4 million, utility fund revenues of about $25.9 million (including debt service), operations and maintenance projected at roughly $35.1 million, capital projects at $11.8 million and debt service around $27.6 million.
City staff described the financing structure for developer-funded improvements (restricted funds) and noted that development-driven debt is sizable while the city’s operating reserves remain adequate. The city manager and finance staff told council a Prop 218 utility rate study will be initiated later this year to evaluate rates for water, sewer and storm utilities and to plan repayment of amounts borrowed from the general fund.
The council discussed long-term infrastructure needs including pavement management, tree trimming, restroom improvements in neighborhood parks, and an aquifer storage and recovery project. Council members asked for early involvement in the Prop 218 process and for clearer cash‑flow modeling tied to buildout and debt repayment schedules.
Council approved two separate motions that evening to adopt the city budget and the CSD budget. Staff will return with more detailed Prop 218 rate recommendations and additional cash-flow information later this year.
What’s next: Staff will prepare the Prop 218 rate study for presentation by the end of the calendar year and will continue multi-year CIP planning; council requested additional cash‑flow detail tied to buildout scenarios and utility debt timelines.
