Los Banos Rotary Club History
Merced City Manager Is Rotary Club Speaker

William Richards, city manager of the City of Merced, Tuesday noon gave members of the Los Banos Rotary Club a brief word picture of the problems of city government, mostly caused by the expansion of services that are demanded by the public and which must be financed by taxation.

Using Merced as an example of the average California city. Richards told of the many new services that have been provide here in the past several years and of the many difficulties that have beset the city council in trying to expand city functions and services in keeping with the increased population. As an example, he cited the $250,000 expansion of the city fire department, accomplished, by bond issue, to provide three new fire engines, new fire station and two branch fire stations. Also a similar bond issue to construct a new sewage disposal plant, and of the construction last year of Merced's first municipal swimming pool.

City streets are also an increasing headache, Richards said, mostly created by expansion of city limits and development of new residential streets. Merced has 57 miles of streets that must be built and cared for.
In the matter of taxes, Richards pointed out that city taxes, which provide police and fire protection, street maintenance and sanitation, airport facilities, sewage disposal, recreational facilities and numerous other services, actually amount to only about 1-12 of John Public's total tax bill. The rest comprises taxes at county, state and federal levels.

Richards also called attention to the fact that whereas incorporated cities finance these "close to home" services by city taxation, many urban communities in the state have found that by remaining unincorporated they can demand and receive most of these same services at the county level – for which taxpayers in incorporated areas are also footing the bill. Though this problem is not serious in Merced county, Richards said it is becoming increasingly so in other counties and that the state legislature is now considering legislation which would prohibit the expenditure of county funds in unincorporated areas of specified population density, but would provide for establishment of such services in such communities by enabling the formation of special tax districts.

Commenting briefly on the city manager plan of government under which Merced has operated for the past two years, Richards stated that it is but one of several types of proven effectiveness and that it has both its advantages and disadvantages. As far as Merced is concerned, Richards concluded, their new type of government has proved economically practical and desirable.

March 2, 1951

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