By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
The challenge: Running city with 02 funding but with 12,000 more residents
Placeholder Image
Manteca’s bottom line for the fiscal year starting July is simple: Make 2002 revenue levels work even though the city now has 12,000 more residents than it did seven years ago.

That’s actually good news. If projections on property and sales tax don’t holdup in the next few months and the state succeeds in swiping another $2 million-plus this summer in property and the local gas tax this summer, funding levels for municipal service could be kicked back into the 1990s.

The Manteca City Council for the first time in memory has opted not to adopt a budget by July 1. Instead they approved a continuing resolution that pro-rates the current budget plan on a monthly basis until such time as more firm numbers are known about sales and property taxes. Those two revenue sources account for 50 percent of the municipal general fund.

The city has at least $2 million more to cut for the fiscal year that starts in 12 days. That is from a starting point of an $11.3 million deficit projected back in December.

The city is projecting property tax will drop 15 percent when the county assessor is through with his reassessment in July. If the number is higher that would mean additional cuts would be needed on top of the $2 million.

This actually isn’t the first year that the city has had the state borrow or outright take money from them. Since the early 1990s, Manteca has lost $18 million to the state in various schemes to cover previous deficit.

“There is a need for a state constitutional convention,” Councilman John Harris said adding that it is clear the system is broken.

Councilman Vince Hernandez noted there are a number of cities that would go insolvent if the state takes more money this year. He is working with other city leaders through the League of California Cities on June 26 in Sacramento to have face-to-face meetings with legislators to make them aware of what they would be doing to cities and local services.

“We’re going to have a lot more Vallejos,” Hernandez said in reference to the bankrupt Solano County municipality that ironically former Manteca City Manager Bob Adams is now serving as interim city manager.

Hernandez said if cities fail that would be taken over by counties that are in worse financial situation than municipalities.

Mayor Willie Weatherford said the loss of the $2.35 per month utility  tax on municipal garbage bills has also contributed to the city’s financial problems.

It was dropped earlier this decade. If still in place, it would be generating $1 million a year.