City Council/Public Finance and Economic Development Authority/Parking Authority
June 5, 2023

5/31/2023
1 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 21 2
5/31/2023
2 FY 2023-24 Budget OverviewTotal City Budget $405.7 million$57.5 $182.5 $43.4 $122.3 General FundEnterprise FundsInternal Service FundsOther Operating Funds3 Expense Overview4Labor Negotiated IncreasesMaintenance, Supplies, and Services at a 4% increaseMaintenance and One-Time Acquisitions included in Measure Y and Measure CFund 087-ARPA per Council DirectionPC and Fleet Replacement•Not included in the General Fund•Included in Enterprise Funds 3 4
5/31/2023
3 CalPERS5
-$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$4.92016-17A2017-18A2018-19A2019-20A2020-21A2021-22A 2022-23B 2023-24B 2024-25P 2025-26P 2026-27P Unfunded Accrued Liability
Employer Normal Costs10.9%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 $7.018/19A 19/20A 20/21A 21/22A 22/23B 23/24BGeneral LiabilityWorkers CompVehicle O&M180%100%57%$’s in Millions65 6 5/31/2023
4 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$30.0Wastewater Water RefuseRevenueOperating Expense$’s in Millions7 Recommended Staffing8
Functional Area Add Delete TotalEconomic Development .50 (1) (.50)Police 2 (2) -Engineering 1 (1) -Planning 1 (2) (1)Streets 1 1Trees 1 (1) -Facilities 1 1Airport .50 (1) (.50)Total 8 (8) - 7 8
5/31/2023
5 FY 2023/24 General FundEstimated Beginning Balance – July 1, 2023 $11,488,571Budgeted Revenue $55,667,921Operating Expenses $54,100,004Operating Transfers $1,462,975Total Operating Expenditures $55,562,979Revenue over/under Expense $104,942Below the Line (Non-operating) $1,529,807Future Planning $2,271,567Prior Year Projects $440,493Recommended Ending Balance – June 30, 2024 $7,351,646Less Committed Funds-5% Contingency Reserve $2,778,149Total Available Funds – June 30, 2024 $4,573,4979 General Fund 2022-23 Mid-Year 2023-24 CM Budget Difference6/30/2023 Estimated Ending Balance $9,555,624 $11,488,571 $1,932,947Operating Expense over Revenue 104,942 104,942Non-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 Fund109 10 5/31/2023
6 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$6008/09A 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 23/24BExpensesRevenue$59.8$’s in Millions11 General Fund Balance
$’s in Millions12 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.006/07A 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 22/23EGeneral FundGF ReserveRevenue StabilizationEconomic Development OpportunityTrust 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$16.111 12 5/31/2023
7 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
OtherGeneral 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 Planning1413
14 5/31/2023
8 General Fund Transfers
$’s in Millions1507/08A 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 23/24BAirport$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 $0.00Development 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 $0.00Parks 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$3.00Parks and RecreationDevelopment ServicesAirport $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)16Enterprise Resource Planning (ERP) System $ 428,589Community Funding $ 30,000Parks Vehicles $ 110,000Art Projects $ 100,000Dash Cams Hardware & Body Cam Storage $ 77,410South Merced Improvements $ 350,000City Attorney Contract $ 165,766IT Replacement Generator $ 121,567IT Cyber Security Upgrade $ 40,162IT Website Update $ 106,313Trust 115-Pension $ 789,750Economic Development Opportunity Fund $ 425,250General Fund Reserve – 30% set aside $1,056,567Total $3,801,374 15 16
5/31/2023
9 Measure Y17Police-20% Fire-20%Parks & Rec-20%Discretionary–40% TotalBeginning Balance 7/1/23$141,143 $434,025 $0 $0 $575,168Estimated Tax Revenue373,760 373,760 373,760 747,520 1,868,800Estimated Other Revenue4,600 7,080 8,850 11,730 32,260Estimated Transfers 385,957 (385,957) 0Estimated Expenses 506,463 750,000 768,485 0 2,024,948Ending Balance 6/30/24 $13,040 $64,865 $82 $373,293 $451,280 Measure Y-Cannabis Tax by Fiscal Year18$0$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,0002019/20A2020/21A2021/22A2022/23E2023/24B17 18 5/31/2023
10 Measure Y - Police/Fire19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 19 20 5/31/2023
11 Parks & Community Services21Parks & Community ServicesParks & Rec-20% TotalBeginning Balance 7/1/23 $161,803 $0 $161,803Cannabis Tax 0 759,717 759,717Program Revenues 340,792 8,850 349,642General Fund Transfer 1,335,600 0 1,335,600Prop 64 Grant 336,043 0 336,043CFD Revenues 175,5560175,556Total Revenues 2,187,991 768,567 2,956,558Total Expenses 2,861,414768,4853,629,899Ending Balance 6/30/24($511,620)$82($511,538) Parks & Community Services Expenses

51.88%32.07%1.52%3.80%0.35%0.99.43%Expense Type
Personnel
M.S. & S.

Property
Administration
Direct Svc Chgs
Transfers
Capital2235%19%1%1%3%11%3%3%1%3%9%11%ProgramsAdministrationZooSpecial EventsMobile RecreationYouth SportsBuilding & Shelter RentalsAfter School/Summer RecPools/SwimmingOther Youth ProgramsAdult SportsProp 64ParksTotal Expenses $3.6 million 21 22 5/31/2023
12 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 Expenses23 Measure Y – Parks & RecreationParks & Recreation – 20%Need Council Direction to address the shortfall in operating budgetDiscretionary-40%Tree TrimmingBike Path Maintenance 2423
24 5/31/2023
13 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 $1M26 25 26
5/31/2023
14 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 Manager27 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 2827
28 5/31/2023
15 Public Works/BeautificationStaffing Added 1 Maintenance Worker-StreetsRemove 1 Tree Trimmer for Maintenance Worker-TreesAdded 1 Custodian-Facilities29 Public Works/BeautificationWastewater /WaterWastewater Rate StudyWater Rate StudyWater Rate Increase (July 2023)6% IncreaseStaff recommend no increaseCouncil Direction30 29 30
5/31/2023
16 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 $350k31 Community Funding32
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 1stthrough April 28th
Applications are being reviewed by the Budget Sub-Committee, report on June 5th 31 32
5/31/2023
17 Summary of Proposals33Organization Name Project Description Term AmountLeague 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/career1 year $ 25,650.00 Merced Lao Family CommunityHmong traditional music & cultural instruction 1 year $ 15,000.00 Calvary AssemblyIsaiah Project 1 year $ 5,200.00 Robert Rojas Foundationopiate education & training 1 year $ 119,481.60 Merced County Nut Festival2023 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) 33 34
5/31/2023
18 Council Direction35
Water Rates
Water Rates
Parks and Community Services Fees and Shortfall
Parks and Community Services Fees and Shortfall
Community Funding
Community Funding
Council Budget Direction
Council Budget Direction
35