Bond underwriters are bullish on Manteca and the city’s fiscal discipline.

That is translating into allowing the city to stretch the buying power of the three-quarter cent Measure Q sales tax even farther.

City Manager Toni Lundgren confirmed Tuesday bonding experts now anticipate the city’s AA bond rating will allow Manteca even more favorable bonding rates than originally projected in May as the city moves closer to issuing bonds for the 46,100 square-foot state-of-the art police station projected to cost $92 million to build in the 600 block of South Main Street.

It may now cost $6 million annually to retire an 18-year bond.

The initial calculus projected an annual payment of $8 million.

That has numerous positive ramifications for Manteca.

*It could reduce borrowing costs by almost $36 million to build the police station.

*It would allow the city to bond to cover the funding shortfall from growth fees to build a new fire station in southwest Manteca that may cost upwards of $15 million.

*It has the potential to allow the city — when combined with community parks fees already on hand that has been collected from growth — to bond for one or two recreation amenities.

The City Council has yet to give direction on what recreation amenities are of the higher priority.

Receiving a lot of chatter have been items such as a community center and an aquatics center.

Municipal financial staff and consultants are in the process of projecting future growth fees as well as unrestricted funds in development agreements for new neighborhoods that will help determine how much in terms of the cost of recreation amenities and associated borrowing costs are manageable for the city to pursue.

Measure Q revenue — originally projected to generate $13 million on an annual basis in the lead up to the 20-year, three-quarter cent sales tax vote in November 2024 — is now tracking to be in excess of $15 million a year.

The bond payment is the only reoccurring debt besides the funding of nine additional firefighter positions and three additional police officer positions tied to the 20-year sales tax.

The city plans to work on other revenue streams to cover the $2 million additional public safety payroll cost before the sales tax ends.

The surge in commercial, dining and such development in Manteca will mean Measure Q receipts — as well as the city’s basis one cent general sales tax and the half-cent Measure M sales tax passed in 2026 now funding 38 of the city’s 147 frontline public safety personnel — will increase beyond the rate of inflation.

That said, there is a funding source already in place that will be available in the same year the Measure Q tax expires that would provide $1.8 million in 2026 dollars that could basically cover the payroll costs of the 12 public safety positions.

It’s the end of the tax split agreement a previous council led by then Mayor Steve DeBrum made with Great Wolf for room tax being collected on those that stay at the 500-room resort.

The city is already receiving a share of the room tax revenue split that helped snare the indoor water park. It is 75-25 in the first 10 years favoring Great Wolf. It goes to 50-50 in the 11th through 25th year and ends in the 26th year.

Going forward and doing so with constant 2026 dollars in terms of revenue and the price of commodities and construction will have $9 million plus a year going forward after bonding for the police station is taken into account in remaining Measure Q to address other needs.

The city is now working toward a September ground breaking on four acres in the 600 block of South Main Street to replace existing 21,000 square foot station built in the late 1970s.

Since then, space needs have worsened and aging infrastructure has created more problems.

The security upgrades are numerous. And it is more than just bullet proof glass.

The station, as an example, will be secured behind an 8-foot concrete masonry with wrought iron railing on top.

It’s a significant upgrade from the current wrought iron fence with large gaps between bars where — in the past — people have been able to reach over the top to unlock gates.

That said, the city worked to keep costs down without sacrificing security and function.

One example is instead of a sally port — a secured area where suspects can be transferred to and from vehicles — there will be a sally court.

It will still have walls and doors that can be secured once a patrol unit is inside.

But by going sans roof — which would have required mandated and expensive exhaust systems to deal with vehicles — the cost was reduced significantly. Instead, it will have a canopy style roof.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com