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Orchard Valley owners pitch in $2,000 for effort to hike sales tax
police station
A rendering of the proposed police station

Grupe Holding Co. — part of the Stockton organization that bought the Promenade Shops at Orchard Valley several months ago — has contributed $2,000 to the effort to pass Measure Q on Tuesday’s ballot.

It is the latest in a number of business concerns, including the 300-plus member Manteca Chamber of Commerce, that would be impacted by the temporary 20-year three-quarter of a cent sales tax hike that have either endorsed or donated money for the campaign to pass the measure.

The Grupe contribution on Thursday brought the Yes on Measure Q total to $106,549.

If the tax is passed, it would go into effect in January with the city seeing the first tax receipts about mid-year.

The tax would end in 2045 unless voters extend it.

It applies only to taxable items.

Excluded from the tax are real estate transactions and rent, basic food at grocery stores that is not prepared fresh such as at a deli, services such as beauty salons and barber shops, and medical care.

There is organized opposition to the measure but they do not expect to spend more than $1,000 so they are exempt from state campaign reporting laws.

The opponents believe the tax needs to be restricted in how it can be spent such as the Measure M public safety half cent tax voters approved in 2006.

That money can only be used to hire and equip frontline firefighters and police officers.

Passage of the measure would generate between $10 million and $13 million annually over the next 20 years.

The city has indicated the additional funding — that will be separated from the basic one cent sales tax and half cent public safety sales tax in how it is accounted for with expenditures overseen by a citizens committee — will first and foremost be public safety and stepping up street improvements.

Nothing is cast in concrete per se, but the city has set in motion what will likely be the four major uses of the additional money:

*The hiring of nine firefighters to man a sixth engine company 24/7.

*The construction of a sixth fire station in southwest Manteca.

*Picking up the hiring of five police officers with a 28 percent local match to a federal grant already secured and then covering 100 percent of the cost of those positions going forward.

*Bonding for 20 years for a new $56 million police station that will utilize growth fees for its construction.

Property tax ($26 million) and sales tax ($19 million) account for $47 million in the current budget to go toward day-to-day municipal services.

That doesn’t cover the $49 million tab the city’s three biggest departments — police, fire and public works (streets). The overall general fund budget is $73.8 million

Finance Director Shay Narayan during a City of Manteca Facebook townhall meeting on Wednesday said that sales and property tax revenue haven’t kept pace with the city’s day-to-day expenses.

In 2020, the city covered the shortfall with a onetime funding gain by reducing city reserves from 30 percent to 25 percent.

Since then the city has delayed replacing aging equipment and vehicles.

The City Council also did not fund positions department requested to allow them to meet growing service demands.

And while the budget is balanced by dipping into reserves that are drawing them down below the 25 percent mark, Narayan noted that is not attainable.

That means sooner than later the city will be forced to consider service and taxing cuts.

If Measure Q fails, the earliest another tax election can be conducted under California law is March of 2026.

 

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com