Our Voice: Tracy oversteps into the private sector
by The Editorial Board
Jun 12, 2009 | 2013 views | 18 18 comments | 19 19 recommendations | email to a friend | print
Welcome to the People’s Republic of Tracy, where formerly conservative folks elected to the City Council continue their headfirst dive into competition with the private sector.

It was bad enough when city administrators, with the blessing of the council, made plans earlier this year to sell advertising in a magazine the city aims to publish three times a year.

Naturally, that put a frown on our faces here at the Tracy Press, where selling ads makes us our living and covers the cost of bringing you the hometown news. You’ve probably noticed it’s a rough time to sell ads for newspapers and others not named Google, dependent as we are on the health of a business to buy ads and the economy being less-than-healthy these days.

But reversing the ill health of Tracy’s retailers is what’s driving the City Council to spend its dwindling supply of tax money by the hundreds of thousands at a time when tax revenues have fallen into a manhole.

We all know about the $400,000 the city is giving away in $500 gift card increments to anyone who buys a new car in Tracy. In that case, Tracy is using tax money to give car dealers here a leg up on dealers elsewhere, making them more competitive against auto malls in other towns.

It’s called protecting one’s turf, and one could argue about whether it is an investment or a government handout. The move is expected to bring about $200,000 in sales tax revenue to the city. Certainly critics could say no business owner would spend $400,000 to earn $200,000, but at least it can be argued that it’s an investment in the future, which is why we supported it.

The city’s reasoning for pursuing the gift card program is simple and logical: It wants no more car dealerships to close their doors in Tracy. And it wants to protect its considerable infrastructure investment at the auto mall.

The auto sales tax purse used to yield more than 20 percent of all the sales tax in the city. Not only does the city want to avoid the vacancy problem, but it also wants to protect that revenue source.

So we can reason that the gift cards are a good step. Officials will claim victory years from now if no more car dealers fall victim to a downturn that more closely resembles the Great Depression than previous recessions.

But the city wants to do more. So it is also spending more than $200,000 now in the bank to promote other retailers. Some of that spending, about $48,000, has been invested in a new Web site business directory that will allow businesses free access to an online list funded by tax dollars.

Meanwhile, those of us who pay taxes and depend on online directories and advertising for our livelihood get to compete against a government program that doesn’t have to be accountable to the bottom line.

It’s one thing to ask those in the ad-sales business to compete against the city, as distasteful as that is.

But it’s another thing to ask us and others who sell ads to make a living to go toe-to-toe against a public entity that our tax dollars support so it can hand out for free what we have to charge for — so we can pay those taxes.

The city, by giving retailers free (for now, at least) space on the new city-paid-for Web site, ShopInsidetheTriangle.com, is doing just that.

Of course, it’s not free to everyone.

That Web site will cost you, the taxpayer, $48,000, and that of course will grow, as any government-run program rarely contains its costs. After all, there is the entire weight and cost of the city bureaucracy behind it, and all bureaucracies protect themselves at all costs.

Welcome to the People’s Republic.
Comments
(18)
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FrancisHineman
|
June 19, 2009
fortheunderdog,

With the city's $500 dollar incentive and the federal incentive of $4500 dollars...

That's a $5000 dollar incentive, if you purchase a new car in Tracy, CA.

FrancisHineman
|
June 19, 2009
fortheunderdog,

I just watched on today's news - there is a similar stimulus package at the fed level that could get you thousands back on a new car purchase with better gas mileage of 10 MPG. Totaling incentive at $4500 dollars.
FrancisHineman
|
June 19, 2009
fortheunderdog,

I see. No plan.

Ok, I'll just answer the question that you had for me, here.

State fees are not the same as City revenue. Were you thinking of the article in the Tracy Press, which said that said that percent actually dipped down to 15% from 30% last year? See link below. It's now at 20%

That was why I was concerned with your lack of a contigency plan, here.

Here is the Tracy Press article:

http://tracypress.com/bookmark/2501478

http://www.ci.tracy.ca.us/modules/news/article.php?storyid=276

http://www.newsguide.us/automotive/consumer-publications/City-of-Tracy-CA-Offers-Innovative-Incentive-to-Stimulate-Car-Buying-Shopping-Locally/

fortheunderdog
|
June 19, 2009
I don't think I said I had a plan or even want to attempt to think one up. My comments only reflected the use of $400k for car dealerships and the $300 the city is going to charge us to call 9-1-1.

As far as your last question, I believe I read somewhere that approx 20% of car sales goes to any city's revenues. Can't be sure though. Now...of that 20%, does any of it go to the state for sales tax or anything else?
ConcernedNeighbor
|
June 19, 2009
Animal shelters is the litmus test for health of economy.
FrancisHineman
|
June 19, 2009
I don't see how your plan would put money back into the city services fund, like public safety, for example? And you also admitted that you don't know if the economy will get better or worse. Actually, I'd just like to ask if you know how long it would be until your plan spent down the city's reserve? I.E. What is your contigency plan?

I also know we are getting way off topic here, but can I also ask if you know what percent of revenue comes from automobile sales?

fortheunderdog
|
June 19, 2009
I think any predictions of the economy bettering itself would be premature at the least. Anyone can say that it will be better by the end of the year but I think we're all adult enough to know that we should just wait and see for ourselves. It's kind of like a meteorologist forecasting the weather. 50/50 chance of rain on any given day. haha

For one thing Skip, I wouldn't have voted to give away $400k in the form of $500 gift cards to anyone who buys a car in this town. (Although this offer is only good until Aug '09 or whenever the money offer runs out.) The $400k could have been better spent on public safety. Now you and I (if we don't pay $48 for a years service) will have to pay $300 each time we call and receive fire/EMT services. That's one way of putting the $400k back into city coffers.

At a time when the city is crying deficit it finds ways to spend what little they say we have then put the burden of repaying it on the backs of Tracy's citizens.

The only one on the council that has their head screwed on straight is Abercrombie.
FrancisHineman
|
June 19, 2009
fortheunderdog,

Probably any city (or business) would like an extra $400k right now? Could be used for a lot of things? Your guess is as good as anyone else's. Do you think we will see Ed Mcmohan showing up on the city steps anytime soon? Kidding.

But, can you predict that the economy will get better? Can you predict it will get worse? If you can I'm sure that there are Federal economists who would probably want to hear from you. Anyway, a better question would be, how would you spend the city reserves and keep them from draining $400k at a time?
fortheunderdog
|
June 19, 2009
No city want to see local businesses close, especially if those local businesses have the ability to bring in big sales tax dollars. Hopefully this ruse will pay off for the city. However, I do not condone the city's use of taxpayer money of trying to keep car dealerships afloat. That $400,000 could have been spent on public safety. This city has reported a deficit but yet it can find $400,000 to give away? And now, to help alleviate the city's deficit our moronic city government is going to impose a $300 charge anytime you dial 9-1-1 and utilize the fire departments EMT services. What a crock of crap! What's next???????
FrancisHineman
|
June 18, 2009
maybenotdumBcommenT,

Thanks for the comment! Definitely good to know.

The thing I find missing in the above TP editorial is that anyone with a website can advertise or promote the local businesses in their town. That's not a big secret.

And they could use either a free model, or charge for advertising. Either way if they charge for advertising it would pay for the website and not the taxpayers.

When I visit other cities I look to see if they also have websites which are geared toward promoting the town and the local businesses there. Not a bad idea. These types of websites offer value to both the local population and visitors.

For example. If I'm visiting a city for a business trip I start with the following websites to find out information about a city:

maps.yahoo.com

travel.yahoo.com

etc.

Then I move on to google.com to look for local websites about the city and it's businesses.

These websites provide me with information about the city's businesses for free.

Restaurants, Hotels, etc, etc, etc.

For shopping in Tracy California we now have an additional website resource available, free:

http://www.shopinsidethetriangle.com/retailers.asp

=====================================================

Search by Category

* Apparel and Accessory Stores

* Restaurants, Cafes and Bars

* General Merchandise Stores

* Automotive Dealers and Gasoline Service Stations

* Building Materials, Hardware, Garden Supply and Mobile Home Dealers

* Home Furniture, Furnishings and Equipment Stores

* Groceries and Food Stores

* Other

or,

Search by Alphabet

=====================================================

maybenotdumBcommenT
|
June 18, 2009
Francis, Did you know you can advertise your garage sales for free on www.gooddaysacramento.com?
FrancisHineman
|
June 17, 2009
TP,

BTW found another Tracy, CA advertisement (FREE, not paid)... on YouTube..

http://www.youtube.com/watch?v=kwC_D0mzXIk&eurl=http://shopinsidethetriangle.com/shoptracy.asp&feature=player_embedded

Just FYI.
FrancisHineman
|
June 17, 2009
Wait a minute...

"all bureaucracies protect themselves at all costs."

???

Has anyone created a list of how many Newspapers are not keeping up with times. They are obviosly not 'protecting themselves'? How many are facing bankruptcy?

One may want to take a look as far as CraigsList.com to find the answers.

There you will find a new revolutionary model of FREE ADVERTISING.

Someone once said it like this: "Who wants to do it for free?"

It is free content. Free advertising. And peer-to-peer business relationships that the city is keeping abreast of.

Others, including news-bureaucracies seem to be falling behind the times?

Anyway, here's some real news. There is a map on

ShopInsidetheTriangle.com that shows an open rectangle saying the words: "opportunity".

http://shopinsidethetriangle.com/map.asp

Perhaps we could read this kind of exciting news in the local newspaper?

Instead of innuendos about the "Peoples Republic" and ...

"all bureaucracies protect themselves at all costs."

??

FrancisHineman
|
June 16, 2009
Tracy Press,

Just doing the math...

How much does an advertisement cost and why does the front page of the local paper's website say there are less than 180 followers of their news stories on Twitter.com?

FrancisHineman
|
June 15, 2009
I just got an email/RSS feed a few hours ago and was still able to post the news here, first. Before it got to press, or the local news' website:

Here's how I get the scoops before the media provides it for us, here:

http://feeds.feedburner.com/TracyCMUpdate

http://feeds.feedburner.com/CityOfTracyNews

FrancisHineman
|
June 15, 2009
Wait a minute.

If selling ads were the way the Tracy Press made a "living" shouldn't the local paper look fatter than a Penny Saver? How many years old is this paper? After all, one might be misled to believe after reading the above, politically-charged, editorial, that they just opened their doors and were phobic of a little competition?

I wonder, do FedEx or UPS executives lose sleep over being in competition with the US Post Office?

???

Anyway, what about more balanced editorials instead of years of politically-charged, special-interest, favored, editorials?

Honestly, if you take years of this and additionally couple that with the lawsuits, I think this has been less of a STRAIGHT LINE anyway. And perhaps a lot more like a MARBLE CAKE? Please show receipts?

Anyway, I was just wondering if anyone else noticed that the city has been emailing/RSS'ing more news than the Local news-paper? You can sign up for email/newsfeeds from the city's main website. Good way to get up to the minute news. Not just twice a week?

maybenotdumBcommenT
|
June 14, 2009
I can understand the Tracy Press position. I had a brand new business. I advertised locally of which the total came to about $300 for a specified amount of time and letters. I received 4 phone calls from this ad. None of which worked for me. In other words, I got nothing for $300. I had to shut my business down because it really was the only way to advertise and get the word out.

Tracy Press has the advantage to say what ever they want if someone crosses them. We are all hurting.
shurban
|
June 12, 2009
Well the government competes agianst private business all the time. Take public schools as an example. It's hard to compete against "free" services. Even though the services are hardly free. So is the Press now abandoning the Obama approach? They endorsed him who dictates ( dictator) to how companies should run their business and who should own what. Maybe government at all levels should stop interfering with compnaies entirely as they have no expertise to do the job better. Is the Press with me on this?


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