In a 4-1 vote after a spirited conversation Tuesday, July 6, the City Council directed staff to develop a ballot measure that would give the people of Tracy the option of adding a half-cent sales tax to help plug the nearly $5 million hole in the city’s budget. The council could put the measure on the Nov. 2 ballot with a vote during its Aug. 3 meeting.
If approved, the tax would lift Tracy’s total sales tax to 9¼ cents per dollar spent, as compared to Stockton’s 9 percent and Manteca’s 9¼ percent, according to the California Board of Equalization.
While he acknowledged that many people are feeling financial pain in what’s become known as the Great Recession, City Manager Leon Churchill argues that raising more money is the only way to preserve the services Tracy provides.
The city must either raise about $5 million more in revenue or cut that same amount from its budget to operate in the black, according to city reports.
Tracy has already eliminated 90 jobs — including about 20 layoffs that have touched the police, public works and other departments — since 2008. City administrators have taken a 5 percent pay cut in the form of furloughs, Churchill said, on top of forgoing any scheduled pay increases.
The city also has changed the way it operates, combining jobs and altering the bureaucracy to save money. As examples, he pointed to a reorganization of the police department, which saved $2 million annually, and changes at the Grand Theatre Center for the Arts, which will save $300,000 while bringing more entertainment to the venue.
So far, Churchill said, the city has reduced expenses while maintaining or even improving services.
But slashing $5 million more from the budget would push the city over the precipice, he said. Even if all services that aren’t related to public safety were eliminated, Churchill said, the city couldn’t close its deficit.
The city is still working to cut expenses, Churchill explained, including discussing cuts to pay or benefits with various employee unions. He said “the unions have been great” in negotiations and have agreed to change or start paying into their pension structures.
But it will ultimately take more revenue for Tracy to have a “full-service” government, rather than a government that doesn’t add much value to the community, Churchill said. And if the City Council puts the sales tax proposal on the November ballot, voters will have that choice.
“We’re at a crossroads as a community,” Churchill said.
Tracy resident Robert Tanner spoke earlier at the Tuesday meeting and implored council members to “cut into the bone” before turning to the people for more money.
“The city is not bleeding as much as the citizens are,” Tanner said.
He was joined later by City Council candidate Larry Gamino, who stated, “Now is not the time to tax.”
Mayor Pro Tem Suzanne Tucker, who voted in favor of charging patients a fee for fire department-administered life-support services in June 2009, said the city needs to cut deeper into public employee salaries, vacation time and other benefits before putting a greater burden on taxpayers.
“As far as (those benefits are concerned), nothing has been touched,” Tucker said.
“I am opposed to a tax of any kind at this time,” she added, and she called asking people to tax themselves “an insult.”
The other four council members, including Mayor Brent Ives, supported putting the tax on the ballot.
“I don’t mind letting the voters decide,” Ives said.
He explained that raising the city’s sales tax by half a cent per dollar spent is the next step in righting the city’s financial ship — $4.8 million in city reserves will be spent in the 2010-11 to bridge a budget deficit. The sales tax, if passed by voters, would raise an estimated $4.8 million a year, according to Assistant City Manager Maria Hurtado.
That money would supplement the city’s general fund, which covers operational costs, such as the fire and police departments, as well as city employee salaries.
City Council members said they intended to spend any new tax money to keep fire and police services intact, and they favored community oversight of the spending.
There’s no guarantee, however, what the money will be spent on — once it is in the general fund, it can be spent at the council’s discretion.
If the tax either fails to be approved by the council in August or is rejected by voters in November, Ives warned that the only move left for the city will be to lay off employees. That, Ives argued, would make it impossible to provide local residents the same level of safety, protection and services they’ve grown accustomed to.
Councilwoman Evelyn Tolbert, who said she empathizes with those struggling to make ends meet, said the tax would protect the services upon which residents rely, not the benefits packages of city employees.
“Tracy is not one of those towns that, when taxes are raised, that you are enriching the people who serve you,” she said.
“We’re not mandating a new tax. … The taxpayers themselves will answer that question.”
The tax is the public’s preferred revenue raiser, according to consulting firm Godbe Research’s recent survey, which found 62 percent of likely voters would support a sales tax if it expired after five years. Only a bare majority of voters needs to approve the sales tax for it to become law.
A competing idea, to levy a parcel tax of $200 on landowners, had less public support, Godbe Research found, with 56 percent of survey responders saying they would vote against it. A parcel tax would need 67 percent voter approval to succeed.


"From discussions with various city employees, it appears there is quite a bit that goes on behind the scenes at city hall that never makes the paper."
dfras13
Like for example you are having discussions with city employees.
dfras13
If it makes you happy. You just made the paper.
:)
Besides, if there's nothing to hide then an audit would show that and it would be a good starting point to determine exactly how much of a deficit the city has and what it needs to operate every year.
I think somebody needs to audit TRAQC and all that poppy lawsuit money where it went to?
Please pay it back, TRAQC!!?!
I was just wondering if you know of any other lawsuits?
Could you please be specific? Otherwise I don't see how or why you could justify the expense of an additional accounting firm to be hired?
It seems somewhat unnecessary since we already knew the information you are talking about. All this information is available online and in the Tracy Press, as you can see from below.
Unless there is something more that you know?
???
Here are the articles that were printed in the Tracy Press.com (for reference):
Your Voice: Not another lawsuit
I can’t believe that the Connollys are once again telling the residents of Tracy what is good for them. I must have missed the memo where God made them the king and queen who make the decisions for the poor peasants in Tracy.
When I first moved to Tracy, I went to some Tracy Region Alliance for a Quality Community meetings, because I did feel that growth was out of hand and needed to be slowed. After I discovered the group’s real agenda, I quit.
Now, time has proved what a bad decision Measure A actually was. The real estate market took care of itself — it did not need intervention, which badly damaged business opportunities in Tracy and family recreation possibilities, among other things.
Mark Connolly lives high on his hill, yet believes he knows what is best — for Mark Connolly and Celeste Garamendi, that is. He has brought lawsuits against anyone he can think of. Les Serpa tries to build some beautiful homes in Tracy by offering to assist in building a long-needed swim center, and Connolly sues.
Now, Carnegie Park, which has been a family recreation area for years, is suddenly in his sights. We could have had a swim center open in the near future if it were not for him and Garamendi.
Next thing you know, he will be suing the sports complex because a baseball may hit a low-flying bird. His excuses and reasons for doing these things to Tracy should fall on deaf ears.
I don’t have any small children to take swimming, and I definitely don’t ride dirt bikes, but I believe those families that do should have every opportunity to do these activities in their home town. I wonder what his family does for recreation, if anything.
Those families who want to swim sometime in the near future, or ride dirt bikes, or move to a new home someday, need to tell Connolly and Garamendi that they have been dethroned, and the City Council was elected to their jobs.
Read more: Tracy Press - News, events, classifieds and businesses in Tracy, Calif.
Completely off TRAQC
For the past several years, the citizens of Tracy have told the City Council that the No. 1 thing they want is an aquatics center. Citizens approached the Surland Cos. in an effort to work together to get this accomplished.
Standing in the way every step of the way has been Celeste Garamendi, Mark Connolly and Roger Adhikari, who, from what I can tell, are the sole members of the Tracy Region Alliance for a Quality Community, which no longer has a Web site.
This town has held two elections with the aquatics center front and center as a major issue, and not once but twice rejected TRAQC’s agenda.
Adhikari (His Voice, "Ellis a misguided priority for Tracy," Feb. 11) writes about how the City Council has carte blanche after being voted into office. But the council was empowered by the citizens to do what the citizens want. Council members who supported the TRAQC agenda were voted off (or kept off) the council by the majority of this city’s residents.
The citizens are speaking loud and clear, but TRAQC turns a deaf ear to it, because that is not on its narrow agenda. And if the members can’t get their way, they sue.
Connolly is a lawyer, and lawyers sue — it’s what they do. It’s nice not to have to pay to get your picture on the front page and get some free advertising.
Adhikari said he was concerned that the city was spending its emergency reserves, but he neglects to say that the city is going to have to pay legal fees for being sued by TRAQC. I challenge TRAQC to put its money where its mouth is, and pick up the city’s legal fees if it loses this suit and the aquatics center proceeds.
Also neglected was the fact that TRAQC’s newest friend, the airport, has never been self-sustainable. I think this would be a good article: How much money has the city spent and how much does it continue to spend for this amenity?
I know I moved here to raise my children, not because Tracy had an airport.
This aquatics center is for families. How many of Tracy’s residents have used the airport compared with how many would use the aquatics center?
After listening to how dangerous and costly the airport is, perhaps this needs to be emphasized: A local airport is great, but far more people will use and enjoy the aquatics center, and at far less cost to the city.
TRAQC talks out of one side of its mouth about controlling growth and out of the other about how it needs the airport to lure Intel and Oracle to our airport.
Measure A has left Tracy very vulnerable to this weak economy. Businesses and the jobs they create will not come to a town unwilling to grow with them — they go the next town that welcomes growth.
Oddly enough, I always see full parking lots in the new businesses in Manteca. Imagine the benefits from property taxes to jobs.
Home prices are down here, which makes it more honorable that Surland would honor its original offer. TRAQC neglects to mention that no houses will be built until 2012, and the market should be much better by then. We could get a lot more bang for the buck if we start bidding and building now (and create some work for a slumping construction business).
It is funny how TRAQC members twist numbers. First they say too many homes, so Surland scales back, and now they say how we’re $15 million short of getting the full aquatics center. They go on to say the aquatics center will operate at a $1 million annual loss.
I find it odd that they state only expenses but don’t take into account any revenues. Some aquatics centers make money.
TRAQC’s tactic is to constantly delay, regardless of what the majority of the citizens want, and for that, it needs to be held accountable.
It is sad that sore losers are continuing to keep this amenity from the citizens of Tracy.
Read more: Tracy Press - Completely off TRAQC
"I believe many of these suits were initiated by local attorneys who took issue with various growth and development plans. I also believe these attorneys have challenged other issues in Tracy."
dfras13:
Can you point us to any articles related to this matter?
???
Is this one of the articles you are talking about?
???
Completely off TRAQC
http://www.tracypress.com/pages/full_story/push?article-Completely off TRAQC &id=5558754
Not Another Lawsuit
http://www.tracypress.com/view/full_story/5504815/results?widget=search_bar&string=auto
Makes lot of sense during my research and your comment.e
So if these lawsuits didn't happen, the thought of raising half cent tax would not have taken place? Same with.... "charging patients a fee for fire department-administered life-support services in June 2009".
It would not have even been thought of if the lawsuits didn't have any bearings on the city's finances? Maybe Taxpayers would like to know.
All the more reason for an audit of all books, including books on lawsuits.
Thanks.
CN
In some small towns, the city attorney is usually a lawyer in private practice and handles only governmental matters.
In other small towns the city attorney also prosecutes minor crimes.
A city attorney generally handles all legal matters for the city, from traffic tickets to civil lawsuits to acting as a general counsel, giving legal advice for city departments.
Areas of focus may include:
Civil claims against city (such as claims against the city police department)
Criminal - prosecute misdemeanors and violations (felonies are usually prosecuted by a district attorney, State's Attorney or Commonwealth's Attorney)
Real estate - drug/alcohol nuisance, substandard housing or code enforcement.
That sounds like a small town city attorney, maybe that is what your city attorney does? No?
CN
Provides legal advice and support to the City Council, Mayor, various City commissions and boards, and to City divisions and departments.
Provides staff support in claims and risk management issues within the City of ......
Represents the City in some civil litigation such as injunctive relief proceedings.
Responsible for drafting contracts, easements, and other real estate documents where the City is a party.
Responsible for drafting municipal ordinances and resolutions.
Prosecutes infraction and misdemeanor offenses occurring within the City limits under State and local codes that are investigated by the ................. Police Department or code enforcement agents.
Investigates and processes claims by and against the City, including but not limited to accidents involving City personnel, vehicles and facilities.
Handles some code enforcement issues, including the abatement of dangerous buildings.
Provides technical legal research and performs a variety of legal duties in support of the City Attorney and the City ...............
Is in charge of developing, implementing and coordinating a risk management program as well as loss prevention duties."
..................................................
Is that pretty much what Tracy's City attorney does, all of that listed above?
Does Tracy's City Attorney defend Tracy in the court?
If not, I guess that is why they hire outside Lawyers to defend the city? No?
Just curious.
CN
I believe many of these suits were initiated by local attorneys who took issue with various growth and development plans. I also believe these attorneys have challenged other issues in Tracy.
How could one lawyer start so many lawsuits? There ought to be a law against this kind of thing?
What was the purpose of all those lawsuits? Someone out to make a buck of the taxpayer's dime?
Who did you say this guy's name was?
Who was the lawyer who brought the lawsuit against the city?
Was it the same lawyer who brought the measure a lawsuit? The sports park lawsuit? The swim center lawsuit? The Carnegie Park lawsuit? The Poppie seed lawsuit? What was the connection with walmart / Winco lawsuit?
Was it the same lawyer who authored Measure A?
Was the lawsuit mentioned during the mayoral debate sponsored by the Tracy Press?
Do you have the numbers?
I think an audit for expenditures and savings would be the only way to go. This would give us a clear picture of every dollar the city takes in and spends. It would also help clear the air regarding any questions about how taxpayer dollars are used.
How much for that, the city's time to prepare the defense only to have it dismissed due to the lawyer's failure to do his job fully?
Money drain, that is costly over a time!!!
CN
Additionally, you mentioned a newspaper lawsuit. And so I doubt you will ever read about that sorts thing in this newspaper? Right Jon?
Not an audit on "money set aside", we were referring to an audit to look at the whole picture, all the books, all the city's expenditures.
It might even help the city catch their own mistakes, their own waste, their own oversight, their own over payment, and so on....
We are not looking for any "criminals" and in those who filed the lawsuits who may have skewered the finances of the city.
Lawsuits against the police department cost the city how much? Lawsuits against any department cost how much? Lawsuits from obstructs cost how much? Manpower hours in preparing suits, how much?
Lawsuit from Tracy Press, how much?
Now, if an auditor finds the reason to plug the holes and save the city the money, future taxpayers, too, the city would welcome the idea, no?
I don't think the city's auditor saw all the books.
It seems the consultants were called in to consult many times, and yet the plans would be postponed, shelved, or killed.
How much money for the consultants on plans that did not manifest?
Are the obstructs responsible for most failed plan or poor financial planning? An audit would show that, no?
CN