Soaring gas prices, increased hotel room stays. and inflation is expected to increase the City of Manteca’s overall general fund revenues by $6.6 million or 10.9 percent for the fiscal year starting July 1.

The double digit growth comes on the heels of the current fiscal year  that recorded what appears to be a record 21.6 percent increase in unrestricted general funds during the current fiscal  year that ends on June 30.

The current year’s surge was fueled in part roughly half of the $15.7 million in federal COVID relief funds that flowed into city coffers this fiscal year.

The bottom line — based on this year’s preliminary city budget released Friday — is Manteca is expected to have $67.29 million to spend on general fund services such as police, fire, general government, parks, recreation, and street maintenance in the fiscal year 2023-2023 that starts in 31 days.

That compares to $60.65 million it had for the current fiscal year, $49.8 million for last fiscal year and $46.7 million for the 2019-2020 fiscal year. That means in four years the city’s unrestricted general fund revenues led by property, sales, and hotel room taxes jumped $22.5 million on an annual basis or just $1.2 million shy of 50 percent.

The surge in gas prices — they are up nearly $1.40 per gallon in year-to-year comparisons and still climbing — are a bonanza for cities and even more so for the state.

On top of every $1 spent on fuel with gasoline taxes included, 8.25 cents in sales tax is collected in Manteca.

Of that 1 cent goes to the city’s general fund, ½ cent to the public safety fund for police and fire positions, ½ cent for the countywide Measure K road and transportation tax and the remaining 6.25 cents goes to the State of California.

Given Manteca is part of the South Joaquin County that is home to the largest concentration of so-called super commuters who spend at least a combined three hours on the road during their daily commutes, the  raising gas prices will benefit local municipal budgets in Lathrop, Manteca, Tracy, and Ripon in a significant fashion.

At the same time a surge in used car values due to new car supply shortfall is increasing their value ups the city’s share of motor vehicle  in-lieu fees.

Since unrestricted revenues are increasing greater than the 8 percent rate of inflation it would prompt one to think the city is getting ahead of the game. City costs are going up but if they are hit with the same on wages and the price of goods as the private sector it would appear they are ahead of the game.

What the figure doesn’t take into account is the fact the city has been clawing itself out of a precarious financial hole it created through interfund borrowing that has to be paid back, falling to raise fees in a timely manner, as well as over the years dating back to at least 2000 not asking voters for — or adjusting  when they legally can — fees or taxes to keep pace with increased costs.

Also, there are restricted accounts where fees are supposed to support operational costs such as for wastewater, solid waste collection, and water that aren’t in good shape.

The water enterprise fund, as an example, is projected to have a $2.2 million deficit next fiscal year. That brings its ongoing deficit to $8.7 million that has been covered basically by interfund transfers that need to be repaid.

The sewer fund is anticipated to bring in $6.6 million more than is needed to cover operating expenses for the 12-month period starting July 1. However, the account is still not dealing with a $26.7 million deficit incurred last year.

Solid waste is projected to have a $1 million deficit next year.

The shortfalls are all the result of the city failing to raise rates for 12 years. They keep the funds afloat with interfund borrowing that legally has to be repaid.

Studies detailing what in the way of rate increases are needed are expected  to be presented to the council for consideration later this year.

The City Council is conducted a special meeting Wednesday at noon at the Civic center, 1001 W. Center St. to study the preliminary budget.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com