City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Director of Finance |
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Date: |
October 6, 2026 |
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Subject: |
New Police Department Building and Fire Station No. 6 Proposed Lease Revenue Bond Financing update and discussion on other Measure Q priorities |
Recommendation:
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Receive the informational presentation and provide comments regarding the proposed financing of a portion of the new Police Department building and Fire Station No. 6. Staff will return at a later meeting for consideration of bond approval.
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Background:
The city needs new public safety facilities because of population growth and increased service needs. Tonight's proposal calls for funding the construction of a new Police Department building and Fire Station No. 6. Portions of these facilities are eligible for funding through impact fees paid by new development; however not all costs are able to be covered by development impact fees. For the Police Department building, approximately 40% of the cost can be paid from the Government Facilities Fees. Fire Station No. 6 can be funded 100% from the Fire Impact Fees; however, the Fire Impact Fee Fund does not have sufficient funds to cover construction costs at this time. The current proposal is to issue lease revenue bonds to fund the additional amounts needed to complete these projects before projects cost rise. Important information to note: the information presented tonight is informational only. A separate item will be brought to Council at the October 20, 2026, meeting to seek authorization and final approval from the Manteca Financing Authority and the Manteca City Council to issue the bonds.
Police Facilities
The original Police Department building at City Hall opened in 1976, when the city had 35 police personnel and a population of 20,100. Since then, additional buildings have been constructed to house more staff, with buildings opened in 1989-1990, modular buildings added in 2005-2006, and modular evidence building in 2015. The current square footage of existing Police buildings at City Hall is 20,155 sq ft, while the proposed new facility will be 52,898 sq ft. The new facility will help the department house current staff and provide room for additional staff needed as the city continues to grow as well as being a state-of-the-art facility that the Manteca community will be proud of.
Fire Station No. 6
Fire Station No. 5, the most recently opened station, was completed in 2020. At that time, calls for service totaled 9,052. The projected calls in 2026 are expected to reach 12,851, an increase of approximately 42% since 2020. Fire Station No. 6 will add capacity to the department and help improve response times throughout the city, especially in the growing southwest section of Manteca.
Proposed Financing for Consideration at Future Council/Board Meeting
At a future meeting, the Manteca Financing Authority Board and the City Council will consider approving the issuance of lease revenue bonds, and the proceeds would fund a portion of the construction costs. The city would lease property and make scheduled lease payments from any legally available General Funds used to repay principal and interest on the lease revenue bonds. Financing provides construction funds upfront (avoiding further rising construction costs) and spreads repayment over years of facility use, while adding interest and financing costs. The city expects to use certain earmarked, but not pledged, revenues (Measure Q) toward Lease Payments supporting debt service.
Measure Q and development contributions.
The projects advance the city's commitment to using Measure Q for community priorities, including public safety. The plan anticipates using a portion of Measure Q for the lease payments. Government Building Facilities Fees would contribute to eligible police building costs, and Fire Impact Fees would contribute to eligible station costs. These contributions ensure new development pays for its share of costs attributable to growth. Staff will present the eligible amounts and anticipated Measure Q resources needed at the October 20, 2026, meeting.
Fiscal Impact:
Receiving this presentation does not authorize bond issuance or a new appropriation. Staff will present funding contributions, estimated repayment schedule, and the proposed financing documents at the October 20, 2026, meeting.
Documents Attached:
Attachment 1 - Presentation