City Council/Public Finance and Economic Development Authority/Parking Authority
June 3, 2024

5/29/2024
1 City of Merced Budget 2024-25
1 FY 2024/25 BudgetCity Budget OverviewGeneral FundMeasure CMeasure Y Parks & Community ServicesOther DepartmentsPending Direction 21 2
5/29/2024
2 FY 2024-25 Budget OverviewTotal City Budget $422.5 million$62.6 $186.6 $49.9 $123.4 General FundEnterprise FundsInternal Service FundsOther Operating Funds3 Overview4Labor Negotiation Increases NOTincluded-TBDMaintenance, Supplies, and Services at a 2% increaseMaintenance and One-Time Acquisitions included in General Fund, Measure Y and Measure CParks and Community Services –creating a Sustainable BudgetPC and Fleet Replacement•Not included in the General Fund•Included in Enterprise Funds 3 4
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3 CalPERS5
-$3.7$4.5$5.7$6.4$7.2$8.2$8.2$9.7$10.1$10.6$12$13.3$6.4$3.4$3.8$4.4$4.7$4.3$4.9$5.7$5.0$4.9$4.9$5.6$5.4 Unfunded Accrued Liability
Employer Normal Costs10.9%16.4%8.2%15.9%11.25%10%9.2%12.7%4.5%4%3%7% Citywide-Largest Cost Drivers$1.3 $2.1 $2.7 $2.8 $3.4 $4.9 $2.2 $2.5 $2.4 $3.0 $3.2 $3.5 $4.0 $4.0 $5.0 $5.6 $5.8 $6.4 $9.0 $9.2 $8.8 $9.4 $11.3 $12.4 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.019/20A 20/21A 21/22A 22/23A 23/24B 24/25BGeneral LiabilityWorkers CompVehicle O&MHealth Insurance277%60%38%59%$’s in Millions65 6 5/29/2024
4 Enterprise Fund Summary$23.1 $16.0 $24.6 $23.3 $16.1 $22.3 $0.0$5.0$10.0$15.0$20.0$25.0$30.0Wastewater Water RefuseRevenueOperating Expense$’s in Millions7 Recommended Staffing8
TotalDeleteAdd Functional Area551FY 23-24 Staffing-(1)1City Manager3(1)4Police-(1)1Engineering(1)(2)1Inspection Services22Streets(1)(1)PW-Downtown MD33PW-Refuse11PW-Fleet-(1)1PW-Facilities7(7)14Total558*FY 24-25 Staffing*4 positions unfunded 7 8
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5 FY 2024/25 General Fund$11,526,743Estimated Beginning Balance – July 1, 2024$63,479,348Budgeted Revenue$59,422,897Operating Expenses$1,793,278Operating Transfers$61,216,175Total Operating Expenditures$2,263,173Revenue over/under Expense $656,635Below the Line (Non-operating)$2,051,477Future Planning$744,161Prior Year Projects$10,337,643Recommended Ending Balance – June 30, 2025$3,060,809Less Committed Funds-5% Contingency Reserve$7,276,834Total Available Funds – June 30, 20249 General Fund Summary
$31.2$33.8$33.8$33.9$42.1$41.0$41.7$45.4$44.3$52.7$57.9$59.9$61.2$31.9$32.5$36.8$36.1$40.1$40.2$43.3$46.6$52.5$53.1$58.6$55.7$63.5$30$35$40$45$50$55$60$6512/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22A 22/23A 23/24B 24/25BExpensesRevenue$64.6$’s in Millions109 10 5/29/2024
6 27%16%15%11%9%4%18%Total Revenues of $63.5 million
Sales Tax
Property Tax
Vehicle in Lieu
Other Taxes
Administration
Direct Svc Chgs
OtherGeneral Fund Revenues 11
General Fund Expenses

67.1%22.6%0.6%0.1%0.1%2.8%2.2%1.5%3.2%Total Expenses $64.7 million Personnel
M.S. & S.

Property
Administration
Direct Svc Chgs
Transfers
Debt
Capital
Future Planning1211
12 5/29/2024
7 General Fund Transfers
$’s in Millions1307/08A 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 22/23A 23/24B 24/25BAirport$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 $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 $0.00 $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 $1.21 $1.44 $1.62$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$1.21$1.44$1.34$1.62$1.26 Set-Aside Balances
$’s in Millions14$10.34$18.36$7.60$0.30$1.00 $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20General Fund GF Reserve Trust 115 Pension Ec Dev Op Fund Affordable Housing FundFY 24/25 Balance$1.6$0.19$3.0 Contingency$0.12$0.07 13 14
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8 Below the Line Expenses (Non-Operating)15Enterprise Resource Planning (ERP) System $ 281,635Community Funding $ 50,000Elections $ 100,000Civic Center HVAC Chiller Repair $ 100,000Civic Center HVAC Boiler Repair $ 50,000Shannon Parcade HVAC Chiller Repair $ 75,000Economic Development Opportunity Fund $ 77,400Affordable Housing Fund $ 116,100Trust 115-Pension $ 193,500General Fund Reserve – 30% set aside $1,664,477Total $2,708,112 Measure C16TotalFund 2031-Roads Fund 2030-Public SafetyFund 2001-Old Measure C$9,989,209$0$0$9,989,209Beginning Balance 7/1/249,100,000455,0008,645,0000Sales and Use Tax 267,0850131,035136,050Other Revenue9,367,085455,0008,776,035136,050Total Budgeted Revenue180,3490557179,792Transfers7,401,34407,399,0162,328Operating Expenses1,435,069001,435,069Acquisitions2,993,192002,993,192Capital Improvements12,009,95407,399,5734,610,381Total Budgeted Expense$7,346,340$455,000$1,376,462$5,514,878Ending Balance 6/30/25*Meets GFOA Recommended Minimum 15 16
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9 Measure C -17Police AXON/Taser Agreement $212kReplaces 98 devicesVehicle Replacements10 Patrol $875k2 Code Enforcement $169k3 Community Service Officer $178kFire Station 53 Renovation $235kPlumbing RepairsBathroom RemodelWindow ReplacementApparatus Replacement4-5 Truck/Engine Needed4-5 year delivery timesDebt Options Measure C-RoadsProject CarryoversR St (Olive to Northwood)Quiet ZonesHighway 59Glen AveM StCanal StSafe Streets lighting 1817
18 5/29/2024
10 Measure Y19TotalDiscretionary–40%Parks & Rec-20%Fire-20%Police-20%$428,778$81,554$88,900$92,620$165,704Beginning Balance 7/1/241,880,000752,000376,000376,000376,000Estimated Tax Revenue50,82025,7705,35011,8707,800Estimated Other Revenue0(446,764)446,764Estimated Transfers-In775,984376,000399,984Estimated Transfers-Out1,272,5960447,299346,585478,712Estimated Expenses$311,018$36,560$69,731$133,905$70,822Ending Balance 6/30/25 Measure Y-Cannabis Tax by Fiscal Year20$0$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,0002019/20A2020/21A2021/22A2022/23A2023/24B2024/25B19 20 5/29/2024
11 Measure Y - Police/Fire21Police 20%Reserve Officer Program $66kTemp Dispatcher $31kTemp Sergeant $54kReplace HVAC Boiler $45kReal Time Info Center Cameras and Drones $58kK-9 Police Dog $12kFleet Repairs (unanticipated) $75kFire 20%HVAC Replacement $20k Station 51 Renovation $90kKitchen RemodelCarpet RemovalInterior PaintingStation 52 Renovation $235kPlumbing RepairsBathroom RemodelWindow ReplacementInterior Paint Measure Y – Parks & RecreationParks & Recreation ProgramsSummer Tennis HITSJunior GiantsTeal Top Street HockeyPickleballMovies in the ParkBlock Party TrailerCommunity Program ScholarshipsApplegate Zoo Supplement22DiscretionaryRecreation Programs $376kBike Path Maintenance $60kTree Trimming $100kAda Givens Pool Restoration $71.7KPark ImprovementsApplegate-Basketball Renovation $50k (50%)Rahilly-Playground $50kDennis Chavez-Playground $25kDiego Rivera-Playground $40k 21 22
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12 Parks & Community Services-Balancing the Operating BudgetMeasure Y20% Allocation $376,00050% of 40% Discretionary $376,000 (ongoing)General Fund Transfer$28,811=2% annual increase ($1.46M)$150,000 =10% additional$1,619,353 (12%) Total GF Transfer (new base)Budget Revisions $160,000Sponsorship and Ballfield revenue increasesExtra Help Expense reductionsReduce Boys & Girls Contract $10,00023 Parks & Community Services
59%20%16%5%0.4%0.3%Expense
Personnel $1.8M
M.S. & S. $617k
Internal Svc Chgs$507k
Administration $170k
Direct Svc Chgs$13k
Transfers $8.8k24Total Expenses $3.2 million 16%51%12%12%6%3%RevenueProgram Fees$490kGeneral Fund$1.6MMeasure Y-20%$376kMeasure Y-40%$376kCFD $197kState Grant $107k 23 24
5/29/2024
13 General Fund Staffing/AdminCity ManagerDelete 1 Records Clerk I/IIAdd 1 Administrative Asst I/IIUnfund 1 Peer Support Specialist (CalVip)Recreation Coordinator (Prop64)PoliceUnfund 3 Police OfficersAdd 1 Community Service OfficerAdd 1 Crime AnalystAdd 1 Administrative Asst I/IIDelete 1 Police Records SupervisorAdd 1 Management Analyst 25 Administration26
Info TechnologyReplacement of Storage Area Network $550kPC Replacements $120kMicrosoft Software Licenses $400kERP Allocation $670kGF Allocation $280k 25 26
5/29/2024
14 Downtown/Economic Dev/AirportProperty Based Improvement District (PBID)ARPA Bob Hart Square Expansion $800kMain St one-way redesign $750kSouth Merced Employment Center StudySmall Business GrantMCE Terminal ConstructionArt Projects 27 Development Services/HousingRemove Senior Engineer for Management AnalystRemove Building Inspector I/II and Development Services Tech I/II for Assistant Building OfficialHousing Element Update $125kLocal Road Safety Plan $50kCarryover of $1M for General Plan UpdateARPA Allocation $7.5M 2827
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15 ParksPark ReserveFahrens Park Disc Golf Course parking lot $100kJoe Herb Sports Field Renovation $300kApplegate Park Basketball Court Renovation $50k (50%)Public Facilities Financing Plan (impact fees)General Vang/Aletha June Park Construction $450kCommunity Park 42 $200kFinal funding through Phase 2 29 Public WorksStaffing Delete 1 Park Worker I/II- Downtown Maintenance DistrictAdd 2 Maintenance Worker I/II-StreetsAdd 3 Maintenance Worker I/II-RefuseAdd 1 Mechanic-FleetDelete Custodian I/II and add 1 Lead Custodian-Facilities30 29 30
5/29/2024
16 Public WorksWastewater /Water/Refuse Rate Studies in processMotor Control Centers Replacement $1MWWTP Roof Replacement $150KDrive on Scale $120kShannon Parcade Elevator Repairs $350k31 Public Works32
Streets (new)Replace School Flashing BeaconsAPS Polara-Push Buttons @ SchoolsTraffic Signal AssessmentControllers 2070 Replacement 31 32 5/29/2024
17 Public Works-EngineeringStreets (continuing projects)South Merced Improvements Santa Fe Strip Park Speed TableYosemite M to R Reconstruction18thSt-R to V ImprovementsLoughborough Curb & Gutter ReplacementsFiber Slurry various arterialsG St Undercrossing Crash CushionCollins Dr Rehab and ReconstructionCanal/Childs Sidewalk ImprovementsHwy 59 WideningHwy 59 Black Rascal BridgeMission Ave Widening 33 Questions?34
Council Budget Direction
Council Budget Direction33
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