City of Merced
Budget 2023-24
1 FY 2023/24
Budget
City Budget Overview
General Fund
Measure C
Measure Y
Parks & Community
Services
Goals & Priorities
Errata
Pending Direction
2 FY 2023-24 Budget Overview
Total City Budget $405.7 million
$57.5
$182.5
$43.4
$122.3
General Fund
Enterprise Funds
Internal Service Funds
Other Operating Funds
3 Expense
Overview
4 Labor Negotiated
Increases
Maintenance,
Supplies, and Services
at a 4% increase
Maintenance and
One-Time Acquisitions
included in Measure Y
and Measure C
Fund 087-ARPA per
Council Direction
PC and Fleet
Replacement
•Not included in the
General Fund
•Included in Enterprise
Funds
CalPERS
5 -
$3.7 $4.5 $5.7 $6.4 $7.2 $8.2 $8.2
$9.7 $10.1 $10.6
$6.4
$3.4
$3.8
$4.4 $4.7
$4.3
$4.9 $5.7
$5.0 $4.9 $4.9
2016-17A2017-18A2018-19A2019-20A2020-21A2021-22A2022-23B 2023-24B 2024-25P 2025-26P 2026-27P Unfunded Accrued Liability Employer Normal Costs
10.9%
16.4%
8.2%15.9%
11.25%
13.6% 5.7%
6.3% 2.35% 2.21%
Citywide-Largest Cost Drivers
$1.5
$1.3
$2.1
$2.70 $2.80
$4.2
$1.6
$2.2
$2.5 $2.40
$3.00
$3.2
$3.7
$4.0 $4.0
$5.00
$5.60
$5.8
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
18/19A 19/20A 20/21A 21/22A 22/23B 23/24B
General Liability Workers Comp Vehicle O&M
180%
100%
57%
$’s in Millions
6 Enterprise Fund Summary
$22.3
$16.7
$24.4
$21.8
$15.1
$22.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Wastewater Water Refuse
Revenue Operating Expense
$’s in Millions
7 Recommended Staffing
8 Functional Area Add Delete Total
Economic Development .50 (1) (.50)
Police 2 (2) -
Engineering 1 (1) -
Planning 1 (2) (1)
Streets 1 1
Trees 1 (1) -
Facilities 1 1
Airport .50 (1) (.50)
Total 8 (8) -
FY 2023/24 General Fund
Estimated Beginning Balance – July 1, 2023 $11,488,571
Budgeted Revenue $55,667,921
Operating Expenses $54,100,004
Operating Transfers $1,462,975
Total Operating Expenditures $55,562,979
Revenue over/under Expense $104,942
Below the Line (Non-operating) $1,529,807
Future Planning $2,271,567
Prior Year Projects $440,493
Recommended Ending Balance – June 30, 2024 $7,351,646
Less Committed Funds-5% Contingency Reserve $2,778,149
Total Available Funds – June 30, 2024 $4,573,497
9 General Fund 2022-23 Mid-Year 2023-24 CM
Budget Difference
6/30/2023 Estimated Ending Balance $9,555,624 $11,488,571 $1,932,947 Operating Expense over Revenue 104,942 104,942
Non-operating Costs (1,529,807) (1,529,807)
Project Carryover (440,493) (440,493)
Future Planning (2,271,567) (2,271,567)
General Fund Reserve-5%
Contingency (2,602,054) (2,778,149) (176,095)
Unreserved, Unencumbered General
Fund Balance $6,953,570 $4,573,497 ($2,380,073)
FY 2022/23 General Fund
10 General Fund Summary
$39.3
$36.0 $35.0
$32.9
$31.2
$33.8
$33.8 $33.9
$39.4 $39.6
$41.4
$44.8 $44.3
$52.7
$56.9
$55.6
$36.7
$34.3 $33.4
$32.0
$31.9
$32.5
$36.8 $36.1
$40.1 $40.2
$43.3
$46.6
$52.5
$53.1
$51.7
$55.7
$30
$35
$40
$45
$50
$55
$60
08/09A 09/10A 10/11A 11/12A 12/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22A 22/23B 23/24B Expenses Revenue
$59.8
$’s in Millions
11 General Fund Balance
$’s in Millions
12 $-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
06/07A 07/08A 08/09A 09/10A 10/11A 11/12A 12/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22E 22/23E 22/23E General Fund GF Reserve Revenue Stabilization Economic Development Opportunity Trust 115 $13.9
$11.9
$10.7
$6.8 $7.4 $7.4 $7.4
$10.0
$8.6
$11.4
$13.7 $14.9
$17.9
$23.0
$34.1 $30.7
$26.0
$16.1
29%
16%
16%
12%
10%
5%
12%
Total Revenues of $55.7 million
Sales Tax
Property Tax
Vehicle in Lieu
Other Taxes
Administration
Direct Svc Chgs
Other
General Fund Revenues
13 General Fund Expenses
66.83%
19.89%
0.76%
0.10%
0.11%
2.45%
4.03% 2.04%
3.80%
Total Expenses $56.9 million
Personnel
M.S. & S.
Property
Administration
Direct Svc Chgs
Transfers
Debt
Capital
Future Planning
14 General Fund Transfers
$’s in Millions
15 07/08A 08/09A 09/10A 10/11A 11/12A 12/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22A 22/23B 23/24B Airport $0.08 $0.20 $0.07 $0.10 $0.06 $0.02 $0.06 $0.05 $0.04 $0.08 $0.00 $0.04 $0.00 $0.00 $0.00 $0.00 $0.00 Development Services $0.00 $0.00 $0.57 $0.70 $0.50 $0.30 $0.96 $0.46 $0.25 $0.54 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Parks and Recreation $2.43 $1.80 $1.27 $1.10 $0.85 $0.50 $0.67 $0.75 $0.76 $1.00 $1.02 $1.32 $1.34 $1.13 $1.34 $1.34 $1.34 $0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Parks and Recreation Development Services Airport
$2.00 $1.91 $1.90
$1.41
$0.82
$1.69
$1.05
$1.62
$1.02
$1.36 $1.34
$1.13
$1.34 $1.34$1.34
$1.26
Below the Line Expenses (Non-Operating)
16 Enterprise Resource Planning (ERP) System $ 428,589
Community Funding $ 30,000
Parks Vehicles $ 110,000
Art Projects $ 100,000
Dash Cams Hardware & Body Cam Storage $ 77,410
South Merced Improvements $ 350,000
City Attorney Contract $ 165,766
IT Replacement Generator $ 121,567
IT Cyber Security Upgrade $ 40,162
IT Website Update $ 106,313
Trust 115-Pension $ 789,750
Economic Development Opportunity Fund $ 425,250
General Fund Reserve – 30% set aside $1,056,567
Total $3,801,374 Measure Y
17 Police-20% Fire-20%
Parks & Rec-
20%
Discretionary–
40% Total
Beginning Balance
7/1/23
$141,143 $434,025 $0 $0 $575,168
Estimated Tax
Revenue
373,760 373,760 373,760 747,520 1,868,800
Estimated Other
Revenue
4,600 7,080 8,850 11,730 32,260
Estimated Transfers 385,957 (385,957) 0
Estimated Expenses 506,463 750,000 768,485 0 2,024,948
Ending Balance
6/30/24 $13,040 $64,865 $82 $373,293 $451,280
Measure Y-Cannabis Tax by Fiscal Year
18 $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2019/20A
2020/21A
2021/22A
2022/23E
2023/24B
Measure Y - Police/Fire
19 Fire 20%
Refurbish One Fire Reserve Engine
Ambulance Purchases
Police 20%
Reserve Officer Program
New K-9, Equipment & Training
Parcade Office Utilities
Real Time Crime Center Room
Vests
Quick Deploy Cameras (LPR’s)
Rifles and Scopes
Laser Shot (Training Simulator)
Measure C -
20 Police
Moved 1 Police Officer to CFD
Ballistic & Night Vision Helmets
$49,500
Record Management System
Upgrade $99,000
Server Software $32,000
Other
Ballot Measure $70,000
Fire
Female Academy $10,000
Paint Fire Station 51 $25,000
Streets
GPS Opticom $210,000
Phase 2 Safe Streets Project –
$1 million
Parks & Community Services
21 Parks &
Community
Services
Parks & Rec-
20% Total
Beginning Balance 7/1/23 $161,803 $0 $161,803
Cannabis Tax 0 759,717 759,717
Program Revenues 340,792 8,850 349,642
General Fund Transfer 1,335,600 0 1,335,600
Prop 64 Grant 336,043 0 336,043
CFD Revenues 175,556 0 175,556
Total Revenues 2,187,991 768,567 2,956,558
Total Expenses 2,861,414 768,485 3,629,899
Ending Balance 6/30/24 ($511,620) $82 ($511,538)
Parks & Community Services Expenses
51.88%
32.07%
1.52%
3.80%
0.35%
0.9 9.43%
Expense Type
Personnel
M.S. & S.
Property
Administration
Direct Svc Chgs
Transfers
Capital
22 35%
19%
1%1%3%
11%
3%
3%
1%
3%
9%
11%
Programs
Administration
Zoo
Special Events
Mobile Recreation
Youth Sports
Building & Shelter Rentals
After School/Summer Rec
Pools/Swimming
Other Youth Programs
Adult Sports
Prop 64
Parks
Total Expenses $3.6 million
Parks & Community Services-Options
General Fund Transfer
Base increase $1,335,600
Base with CPI $1,430,695
Other amount?
Measure Y-Discretionary 40%
Available $373,293
Program Revenue Increases
Estimated $110,000
Budget Cuts
Parks and Community Services
Other General Fund Expenses
23 Measure Y – Parks & Recreation
Parks & Recreation – 20%
Need Council Direction to address
the shortfall in operating budget
Discretionary-40%
Tree Trimming
Bike Path Maintenance
24 General Fund Staffing/Admin
Police
Added 1 Police Lieutenant
Deleted 1 Police Captain
Added 1 Community Services
Officer
Deleted 1 Police Records Clerk
Outside City Attorney
Positions and Contract Attorney
$1M
25 Administration
Info Technology
Replacement Generator
$300k
Cyber Security
Enhancements $180k
Website Update $225k
ERP Allocation $1M
26 Downtown/Economic
Dev/Airport
Property Based Improvement District
(PBID)
ARPA
Bob Hart Square Expansion $800k
Streetscaping $200k
Main St one-way redesign $750k
South Merced Industrial Park Study
Small Business Grant
Remove 1 Economic Development
Manager
Remove 1 Airport Manager
Add 1 Business & Aviation Manager
27 Development
Services/Housing
Remove Engineering Project Manager
for Senior Engineer
Remove Planning Manager and
Associate Planner for Deputy
Development Services Director
Additional $1M for General Plan
Update
First Time Homebuyers Program $2.5M
67 unit Affordable Housing Project
$1.3M
95 unit motel conversion $24M
21 unit container housing $4.2M.
ARPA Allocation $7.5M
28 Public Works/Beautification
Staffing
Added 1 Maintenance Worker-
Streets
Remove 1 Tree Trimmer for
Maintenance Worker-Trees
Added 1 Custodian-Facilities
29 Public Works/Beautification
Wastewater /Water
Wastewater Rate Study
Water Rate Study
Water Rate Increase (July 2023)
6% Increase
Staff recommend no increase
Council Direction
30 Public Works/Beautification
Streets
Over $2.3M new Measure V and SB1
Project Funding
Collins Dr Rehab
M St/Buena Vista Roundabout Design
Fiber Slurry various arterials
Public Art $100k
Murals on CalTrans Facilities $350k
South Merced Improvements $350k
31 Community
Funding
32 Historically, the City Council has awarded an
average of $23,000 to community groups for one-
time projects, last year $60,000 was awarded
Council direction was to establish a transparent
process to evaluate proposals from the
Community
Proposals were received April 1st through April
28th
Applications are being reviewed by the Budget
Sub-Committee, report on June 5th
Summary of Proposals
33 Organization Name Project Description Term Amount
League of United African American Citizens
(LUAAC) anti-bullying / fentanyl awareness 1 year $ 35,000.00 Merced Youth Soccer Association (MYSA)
help high school students prepare for
college/career 1 year $ 25,650.00
Merced Lao Family Community
Hmong traditional music & cultural
instruction 1 year $ 15,000.00
Calvary Assembly Isaiah Project 1 year $ 5,200.00
Robert Rojas Foundation opiate education & training 1 year $ 119,481.60 Merced County Nut Festival 2023 Merced County Nut Festival 1 year $ 7,000.00 Total $ 207,331.60
Errata
34 General Fund
ARPA-Administration $65,000
ARPA Adjustments
-Affordable Housing $1M
-Job Training $1.175M
-
Applegate Restroom $425k
-Community Park 42 $3.35M
-Stimulus Payments ($230K)
-Water Infrastructure ($2.5M)
-Broadband Infrastructure ($1.5M)
-Administration ($288K)
Council Direction
35 Water Rates
Parks and Community Services Fees and Shortfall
Community Funding
Council Budget Direction