Modesto may spend $115K for help telling its story if it puts sales tax on ballot
Modesto could spend nearly $115,000 to get its message out regarding its financial health if city officials decide to put a 1% sales tax on the November ballot.
The City Council on Tuesday will consider amending Modesto’s agreement with the consulting firm TBWBH Props & Measures for as much as $114,634 for brochures, mailers, web content and other factual information about the city’s finances. The firm also would provide the city with additional help in reaching the public.
TBWBH would do this if the council decides to place a sales tax on the Nov. 8 ballot. The council is expected to consider that at its June 28 meeting, according to a city spokeswoman.
State law forbids elected and public officials from using tax dollars and other public resources to engage in political campaigns. But they can provide voters with factual information, though critics say cities, counties and other governments can cross the line and engage in political campaigning.
The City Council in January directed City Manager Joe Lopez to hire a consultant to survey voters regarding a potential sales tax. The city chose San Francisco-based TBWBH.
Modesto has spent $49,263 with TBWBH for a voter survey to gauge support for a 1% sales tax that would be spent on police and fire services, safer and cleaner parks and other public spaces, better traffic enforcement, reducing blight and maintaining streets and sidewalks.
The city and its consultant released the results of the survey in April. The results showed that 65% of a random sample of 1,117 registered voters likely to vote in the November election initially supported the tax increase.
That support dropped to 60% after voters heard arguments against the tax, including that residents already pay too much in taxes, now is not the time to raise taxes as they cope with the pandemic and inflation, and there are no guarantees how the city will spend the money.
Modesto is considering a general sales tax, which requires a simple majority to pass. As a general tax, Modesto could spend the tax increase on practically anything. But cities put in place nonbinding resolutions stating how they will spend the money and create citizen oversight panels to ensure that happens.
A 1% sales tax would raise Modesto’s sales tax rate from 7.875% to 8.875%. The city estimates the tax increase would bring in $39 million annually to its general fund, which primarily is spent on public safety.
City officials have said while general fund revenues are growing, they are not growing as fast as expenses. Those expenses are primarily employee compensation, including pensions.
The general fund for the city’s 2022-23 budget is $171.4 million or about a third of the city’s total 2022-23 operating budget of $508 million. The new budget year starts July 1.
The TBWBH contract amendment is among the 11 items listed on the consent portion of the council meeting agenda. Council members approve consent items all at once and without discussion unless someone asks for a discussion before the vote on an item or items.
The council meets at 5:30 p.m. in the basement chambers of Tenth Street Place, 1010 10th St. The meeting also will be livestreamed and conducted over Zoom.
This story was originally published May 23, 2022 at 7:00 AM.
