The ask is for a penny increase in sales tax.

The amount it would generate is $21 million a year.

And what it will pay for is enhanced fire and police protection, street repairs, maintain youth and senior programs, further address homelessness, and maintain or enhance other quality-of-life amenities and services.

The City of Manteca Friday confirmed what it had already signaled it would do — consider placing a measure on the Nov. 5 ballot to increase the city’s overall sales tax by 1 percent going from 8.25 percent to 9.25 percent.

What wasn’t clear was what the city’s request for voters to consider passing would be.

The debate was between a half cent sales tax hike that would have limited impacts outside of public safety due to pressing police and fire needs or a full cent that would allow the city to tackle more municipal needs.

“This modest increase would play a vital role in addressing the City’s ongoing challenges; particularly those impacted by rising inflation and subsequently higher interest rates,” said City Manager Toni Lundgren.

Lundgren said city officials are considering asking Manteca voters to authorize a sales tax rather than addressing the City’s fiscal challenges through some other funding mechanism such as a parcel tax or citywide community facilities district  — both of which are assessed on property — for the following reasons:

*Not only would Manteca residents shopping in local stores pay the extra one percent increase but so would those who reside outside the city that shop in Manteca especially at large sales tax generators such as Costco, Bass Pro Shops, Living Spaces, and gas stations/convenience stores.

*A localized city sales tax provides funding that cannot be taken by the State of California

*Most foods (groceries) and medicines (prescription drugs) are exempt from being charged a sales tax.

 Lundgren said the basic needs that have led city officials to consider placing a funding measure on the local ballot include:

*the need to enhance neighborhood police patrols and crime prevention efforts

*the need to enhance fire protection services and maintain emergency response times in the city

*the need for street and road repairs including potholes. 

*the need to keep public spaces safe and clean

*improving traffic flows and reduce congestion

*maintaining youth and senior programs in the city

*further addressing homelessness in Manteca.

*maintaining and/or enhancing other quality-of-life amenities and services.  

 “We are using our limited reserves to pay for operating costs, and have been for some time now, the Lundgren noted.  “City reserves are intended to be used when the city is faced with unforeseen emergencies, like natural disasters such as earthquakes or a severe economic downturn.  These are one-time funds . . . once they are used, they are gone, forever.”

In addition, the city's infrastructure is in decline due to deferred maintenance, and there is a lack of available funds for such things as the replacement of vehicles, ranging from lawnmowers to fire trucks.  

Lundgren said over the last 20 years, the city has managed to maintain essential services as best it could, such as water and sewer treatment, as well as park equipment.

“But those days are behind us,” Lundgren said.

 Some residents question how there can be a shortage of revenue in light of all the new development occurring in the city.  

Homeowners pay property tax annually equal to 1% of the assessed property value; with Manteca receiving 20% of that amount. Thus, for a home valued at $450,000, the property tax is approximately $4,500 per year; the City receives only $900 from these funds.

 “In essence,” Lundgren explains, “the positive impact of new development on the general fund is marginal.”  

Recently, the city negotiated a new property tax agreement with San Joaquin County and their rate of new growth will be 40% of the 1% received, which will apply to new development. 

The city is essentially doing more with less and not pursuing initiatives and amenities that have long-range impacts on maintaining and improving the quality of life inn Manteca.

 Of the current 8.25% sales tax rate presently being charged for purchases made in Manteca:

*4% goes to the state.
*2.75% to San Joaquin County including 0.5 percent to Measure K for transportation infrastructure such as the 120 Bypass/Highway 99 improvements breaking ground this summer.

*1.5% goes to the City; one-third of that (0.5%) goes to Measure M Public Safety Sales Tax.

Measure M was passed by the Manteca voters in 2006. It currently funds 36 public safety positions; 18 police officers and 18 firefighters.

Passage of such a funding measure requires a simple majority of support of the voters (50 percent +1 yes vote).

Revenues generated from a successful funding measure will be placed in the city’s General Fund.

If the funding measure under consideration passes, a five-member Citizen Oversight Committee will be created to monitor expenditures and recommend a spending plan.

An outside audit of sales tax spending will be conducted annually; a report will be produced and made public.

Sales tax rates in nearby cities are 9 percent for Stockton, 8.88 percent for Modesto, 8.75 percent for Lathrop, 8.25 percent for Tracy, and 7.75 percent for Ripon.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com