$162,200 raised for Modesto sales tax campaign. Donors include prominent businesses
The campaign for the 1% sales tax on the November ballot has raised $162,200 in its effort to persuade Modesto voters to approve the ballot measure.
While the campaign has received contributions from the city’s public safety unions, some of the city’s prominent businesses and residents also have contributed.
For instance, entrepreneur Dan Costa and PMZ Real Estate CEO Mike Zagaris each contributed $5,000. The Beard Land Improvement Co. also donated $5,000. The company owns the Beard Industrial District, a 2,000-acre industrial park that is home to some of Modesto’s biggest companies, including the E.&J. Gallo Winery, Frito-Lay and Del Monte.
“I believe there is an objective need for additional resources,” Zagaris said in an interview. He said Measure H is an investment in the city’s quality of life.
“Two-hundred families work for me in Modesto,” he said. “Their safety is important to me, and my clients’ safety is important to me.” He has said PMZ conducts about a third of the residential real estate transactions in Modesto.
Zagaris has questioned how effectively Modesto has operated but said the city has made strides and needs additional revenue. He said there is no contradiction in ensuring the city spends it resources wisely and ensuring those resources are sufficient.
The campaign is called the Committee For a Better Modesto. The $162,200 is detailed in the most recent campaign finance forms the committee has filed with the city. The forms are available at https://public.netfile.com/pub2/?AID=mod.
The City Council voted unanimously June 28 to put the sales tax, which is called Measure H, on the Nov. 8 ballot. The measure is a general tax, which requires a simple majority to pass.
A 1% sales tax would raise Modesto’s rate from 7.875% to 8.875%. The sales tax rates in nearby cities include 9% for Stockton, 8.25% for Tracy and Manteca, 8.625% for Turlock and 10.25% for Livermore.
Modesto officials say if passed by voters, Measure H would bring in about $39 million annually for the city’s $171.4 million general fund. About 80% of the fund is spent on public safety.
As a general tax, the city could spend Measure H on any of the services it provides. The ordinance the City Council passed with the proposed tax states “this additional funding would help to improve City Services such as but not limited to:”
▪ addressing homelessness
▪ providing quicker responses to 911 emergencies, including DUIs, gang and drug-related crimes
▪ supporting neighborhood police patrols, crime prevention, traffic enforcement, fire protection, and paramedics
▪ fixing and maintaining roads and sidewalks
▪ keeping parks, recreation facilities and public areas safe and clear of trash and litter.
The ordinance also requires the council appoint a nine-member oversight board to monitor how the city spends Measure H.
The board would consist of one representative from each of the council’s six districts and three at-large members. The ordinance states the council “shall give strong preference to members that represent a cross-section of the community.”
The general fund makes up about a third of city’s annual operating budget. Besides public safety, it pays for parks and recreation and other basics.
Modesto officials say that while its general fund revenues, which are primarily sales, property and other taxes, are growing, they are not growing as fast as general fund expenses.
That has led to structural deficits since the Great Recession of more than a dozen years ago, which the city has closed each year through such measures as freezing or eliminating open positions, reducing services and delaying maintenance. For instance, city officials say Modesto has $74 million in deferred maintenance for its parks.
The general fund expenses are primarily employee compensation, including pensions. City officials say Modesto must provide competitive wages that it can afford to attract and keep good employees. Modesto belongs to the California Public Employees’ Retirement System, which determines its pension costs.
The Modesto Police Officers Association contributed $15,000 to the Measure H campaign. The Modesto City Fire Fighters Association contributed $3,000, and the Washington-D.C.-based International Association of Fire Fighters contributed $12,500.
Public officials also have contributed.
Mayor Sue Zwahlen gave $2,500, Councilman David Wright $1,000 and Councilwoman Rosa Escutia-Braaton $500. Former councilman and current Stanislaus County Supervisor Mani Grewal contributed $2,500. Nick Bavaro — running unopposed to replace Councilman Bill Zoslocki, who resigned in April — gave $10,000.
Other contributors include the J.S. West Milling Co. ($5,000), the California Association of Realtors ($8,000), Central Valley Automotive ($5,000) and Porges Management ($5,000).
The contributions are listed in the Committee For a Better Modesto’s campaign finance forms filed with the Modesto City Clerk’s Office as required by the state’s Fair Political Practices Commission.
The committee filed a 460 form Thursday for the required reporting period of July 1 through Sept. 24. The committee was not formed until July so it had no contributions to report before then. The next 460 form is due Oct. 27 and will cover Sept. 25 through Oct. 22.
The committee also reported contributions of $1,000 or more. It is required to report contributions of that size within 24 hours of receiving them on form 497.
The committee reported $19,680 in expenses. They include $10,000 to Mike Lynch Consulting and $8,400 to H&S Signs of Grass Valley.
