In order that future growth doesn’t further deteriorate public safety levels and street maintenance, new single family homes built in Manteca need to be slapped with an annual assessment upwards of $1,152 beyond the standard property tax charges.
The City Council on Tuesday moved a process forward that may do just that.
But in doing so the council made it clear they want to first determine service levels that the added assessment through a future community facilities district would accomplish.
Councilman Charlie Halford noted in a thorough look at the study by NBS Consulting that the $1,152 figure was based on “Cadillac” fire service that called for staffing, equipment, and facilities for a four-minute response time instead off the current five minutes.
At the same time the police staffing was based on current service levels that he dubbed as being more like a “Chevrolet”.
Staff will examine various service level scenarios and return with different fee charges the council can select from. However, based on the analysis the highest fee that could possibly be put in place would be $1,152 per single family home.
The NBS analysis projected by 2050 the city would have an annual shortfall of roughly $6.9 million needed to cover basic public safety and street maintenance from the general fund.
Halford also wanted to make sure the narrative that takes hold isn’t one where growth isn’t paying its way when it comes to general fund services.
“Growth is subsidizing older homes,” Halford noted.
He pointed out that he has a rental home in Powers Tract that he pays $750 a year in taxes on. But if someone today were to buy an existing home at the city’s median closed escrow price of $650,000, they would be paying $6,500 a year in property taxes.
That’s $750 for a home that hasn’t changed hands in decades versus $6,500 for a home purchased today. The newer homeowner is paying roughly nine times more in property taxes. The bulk of that goes to other government agencies with the city receiving only 17 percent of what a homeowner pays in annual property taxes.
Halford noted as time goes on and someone who buys a house today near Woodward Park for $650,000 and stays put for two to three decades, they ultimately will be subsidized by future homebuyers as well.
The bottom line is the council is moving toward having all future residential units that aren’t deed restricted as being affordable as well as industrial properties to be assessed annual charges for street work as well as police and fire protection via a community facilities district to raise money for such purposes.
The annual charge for multiple family projects such as apartments and duplexes would be $979 per unit. Industrial rates would be $2 per square foot.
Commercial areas would not be assessed as they generate more than enough city revenue to cover their impacts on both public safety and streets.
The proposed fees are based on a financial analysis of anticipated growth through 2050.
It assumes police and fire in Manteca currently provides services to 97,984 people. That figure includes 87,319 residents plus an adjusted employee population of 10,665 reflecting people who work in Manteca but do not reside here.
By 2050 the residential population is pegged at 131,361 along with 14,450 workers who have jobs in Manteca but do not reside her for a “persons served” population of 145,911.
Based on current service levels, Manteca in the year 2050 would be $6.9 million short annually.
The NBS Consulting Study commissioned by the city penciled out the cost of desired police, fire and street maintenance service levels and determined it justified a $1,152 per single family home annual assessment.
That would be accomplished by placing all new development moving forward into a community facilities district with police, fire, and street maintenance districts.
The city already requires new development to have CFDs that make annual assessments for neighborhood park upkeep, landscape maintenance and in some cases neighborhood street lighting upkeep and maintenance.
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