City of Merced
Budget 2025-26
1 FY 2025/26
Budget
City Budget Overview
General Fund
Measure C
Measure Y
Other Departments
Finishing Up
Options/Disscusion
2 Overview
3 Labor Negotiation Increases
included 4%
Maintenance, Supplies, and
Services <0%-2% increase
Maintenance and One-
Time Acquisitions included
in General Fund, Measure Y,
Measure C, and CFD
Parks and Community
Services – Sustainable
Budget an ongoing
challenge
PC and Fleet Replacement
•Not included in the General Fund
•Included in Enterprise Funds and
other Special Revenue Funds
No Funding Allocation:
•Community Funding
•Arts Funding
FY 2025-26 Budget Overview
Total City Budget $438.5 million
$68.4
$198.4 $53.5
$20.8
$97.4
General Fund
Enterprise Funds
Internal Service Funds
Measure Funds
Other Operating Funds
4 Citywide-Largest Cost Drivers
$1.3
$2.1
$2.7 $2.8
$3.4
$4.9
$5.8
$2.2 $2.5 $2.4
$3.0 $3.2 $3.5
$5.0
$4.0 $4.0
$5.0
$5.6 $5.8
$6.4
$6.9
$9.6
$10.4
$11.6
$12.7
$13.3
$15.7
$17.5
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
19/20A 20/21A 21/22A 22/23A 23/24A 24/25B 25/26B
General Liability Workers Comp Vehicle O&M CalPers
346%
73%
82%
127%
$’s in Millions
5 Recommended Staffing 6
Functional Area Add Delete Total Unfunded
FY 24-25 Staffing 559
City Manager (2) (2) (1)
Finance 1 1
Fire - (1)
Police 1 (2) (1) (5)
Development Services 1 (1) -
Parks & Community Services (1) (1)
PW-Parks (1) (1)
PW-Facilities 1 1
Human Resources (1) (1)
Information Technology 2 (2) -
Subtotal 6 (10) (4) (7)
PW-Streets 1 1
PW-Enterprise 6 (2) 4
FY 25-26 Staffing 560 553
FY 2025/26 General Fund
Estimated Beginning Balance – July 1, 2025 $11,776,222
Budgeted Revenue $67,117,736
Operating Expenses $65,464,947
Operating Transfers $2,082,164
Total Operating Expenditures $67,547,111
Revenue over/under Expense ($429,375)
Below the Line (Non-operating) $442,313
Future Planning $5,274,280
Prior Year Projects $476,409
Recommended Ending Balance – June 30, 2026 $5,153,845
Less Committed Funds-5% Contingency Reserve $3,377,356
Total Available Funds – June 30, 2026 $1,776,489
7 General Fund Summary
$31.2
$33.8
$33.8 $33.9
$42.1 $41.0
$41.7
$45.4 $44.3
$52.7
$57.5
$59.1
$64.7
$67.5
$31.9
$32.5
$36.8 $36.1
$40.1 $40.2
$43.3
$46.6
$52.5
$53.1
$58.1
$61.3
$63.5
$67.1
$30
$40
$50
$60
$70
$80
12/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22A 22/23A 23/24A 24/25B 25/26B Expenses Revenue
$73.7
$’s in Millions
8 25%
15%
15%
15%
10%
4%
16%
Total Revenues of $67.1 million
Sales Tax
Property Tax
Vehicle in Lieu
Other Taxes
Administration
Direct Svc Chgs
Other
Up
5.7%
General Fund Revenues
9 General Fund Expenses
66.7%
20.3%
0.6%
0.1%
0.1%
2.8%
1.0%
0.3% 1.0% 7.2%
Total Expenses $73.7 million
Personnel
M.S. & S.
Property
Administration
Direct Svc Chgs
Transfers
Debt
Other Non-Op
Capital
Future Planning
10 Operating
up 10.3%
General Fund Transfers
$’s in Millions
11 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 22/23A 23/24A 24/25B 25/26B 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 $0.00 $0.37 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 $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 $1.21 $1.33 $1.62 $1.64 $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 $1.21
$1.33$1.34
$1.62
$2.01
$1.26
Below the Line Expenses (Non-Operating)
12 Enterprise Resource Planning (ERP) System $ 147,352 City Clerk Remodel $ 100,000
Community Park 42 Maintenance $ 129,961
Civic Center Skylight Replacement $ 15,000
Civic Center Exhaust Replacement $ 50,000
Subtotal $442,313 Economic Development Opportunity Fund $ 675,000
Affordable Housing Fund $1,012,500
Trust 115-Pension $1,687,500
General Fund Reserve – 30% set aside $1,899,280
Total $5,716,593
Set-Aside Balances
$’s in Millions
13 $5.15
$20.26
$9.66
$0.95 $1.05
$-
$5
$10
$15
$20
$25
General Fund GF Reserve Trust 115 Pension Ec Dev Op Fund Affordable Housing Fund FY 25/26 Balance
$1.9
$1.7
$3.4
Contingency
$1.01$0.67
Measure C 14
Fund 2001-Old
Measure C
Fund 2030-Public
Safety
Fund 2031-
Roads Total
Beginning Balance 7/1/25 $4,070,539 $1,090,852 $445,666 $5,607,057 Sales and Use Tax 0 8,678,000 457,000 9,135,000
Other Revenue 214,840 104,898 1,070 320,808
Total Budgeted Revenue 214,840 8,782,898 458,070 9,455,808 Transfers 157,652 577 0 158,229
Operating Expenses 0 8,412,005 32,102 8,444,107
Acquisitions 200,000 412,933 300,000 912,933
Capital Improvements 1,812,386 0 0 1,812,386
Total Budgeted Expense 2,170,038 8,825,515 332,102 11,327,655 Ending Balance 6/30/26 $2,115,341 $1,048,235 $571,634 $3,735,210 *Meets GFOA Recommended Minimum
Measure C Ballot Requirement
15 Police and Fire Levels of Spending
FY 2021-22
Fund 1000 4502/4503 2002/2003 2010 2001
Description General Fund CFD Measure Y
Abandoned
Vehicle
Abatement
Total Public
Safety Measure C
Fire $ 11,654,420 $ 703,512 $ 600,209 $ 12,958,141 $ 3,122,742 Police 22,167,181 1,378,206 343,524 51,578 23,940,489 4,166,379 Total Public Safety Expense $ 33,821,601 $ 2,081,718 $ 943,733 $ 51,578 $ 36,898,630 * $ 7,289,121 Total Fund Expenses $ 53,133,114 $ 2,081,718 $ 943,733 $ 51,578 $ 56,210,143 $ 7,515,982 Percentage of Expense 64% 100% 100% 100% 66% 97%
FY 2025-26 CM Recommended Budget
Fund 1000 4502/4503 2002/2003 2010 2001/2030
Description General Fund CFD Measure Y
Abandoned
Vehicle
Abatement
Total Public
Safety Measure C
Fire $ 16,092,907 $ 1,379,930 $ 698,067 $ - $ 18,170,904 $ 4,048,680 Police 30,649,798 3,320,796 440,844 50,000 34,461,438 5,223,473 Total Public Safety Expense $ 46,742,705 $ 4,700,726 $ 1,138,911 $ 50,000 $ 52,632,342 * $ 9,272,153 Total Fund Expenses $ 73,740,113 $ 4,700,726 $ 1,138,911 $ 50,000 $ 79,629,750 $ 10,995,553 Percentage of Expense 63% 100% 100% 100% 66% 84%
Meet or Exceeds by Dollar $ 15,733,712
Meet or Exceeds by Percentage 0%
Measure Y-Cannabis Tax by Fiscal Year
16 $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
2022/23A
2023/24A
2024/25B
2025/26B
Measure Y
17 Police-20% Fire-20%
Parks & Rec-
20%
Discretionary–
40% Total
Beginning Balance
7/1/25
$140,496 $449,693 $66,890 $0 $657,079
Estimated Tax Revenue 337,300 337,300 337,300 674,600 1,686,500 Estimated Other
Revenue
6,510 16,220 440 12,950 36,120
Estimated Transfers-In 311,155 (311,155) 0
Estimated Transfers-Out 385,646 337,300 722,946
Estimated Expenses 440,844 698,067 310,972 0 1,449,883
Ending Balance 6/30/26 $43,462 $105,146 $19,167 $39,095 $206,870 Parks & Community Services
Balancing the Operating Budget
Measure Y 20% Parks and Recreation $337,300
Measure Y 50% of 40% Discretionary $337,300
General Fund Transfer
$22,650 1.4% annual increase
$1,642,003 Total GF Transfer
New CP42 Maintenance $83,440
Extra Help $15,840
Utilities $47,000
Paint, tools, etc. $9,600
Turf Tank $11,000
18 Program Impacts
Boys & Girls Club Lease-reduce $25k
Other Community Center leases-reduce
$5k
Delete Full Time Zookeeper
Eliminated Summer Camp
Eliminated Stick to Fitness Sports Clinics
Eliminated Block Party Trailer for
Community Reservations
MCSD Contributions for Youth Sports $80k
Parks & Community Services
61%
7%
25%
7%
0.4% 0.3% Expense
Personnel $2M
M.S. & S. $221k
Internal Svc Chgs
$790k
Administration $205k
Direct Svc Chgs
$13k
Transfers $9k
19 Total Expenses $3.2 million
16%
51%
11%
11%
7%
2%
2%
Revenue Program Fees $505k
General Fund
$1.6M
Measure Y-20%
$337k
Measure Y-40%
$337k
CFD $225k
MCSD
Contributions $80k
State Grant $59k
Police
20 General Fund
Deleting Lead Dispatcher
Deleting Parking Enforcement
Officer/Adding CSO
Unfunded additional Police
Officer (total of 4)
Unfunded one Dispatcher
Total Funded Positions =109.30
(67.3 sworn/42 non-sworn)
Measure C
Total Positions = 17.49
(16.49 sworn/1 non-sworn)
Operating Budget –GF $76k
CFD
Total Positions = 10.21 sworn
8 Replacement Vehicles $500k
Measure Y
Operating Budget – GF $124k
Reserve Officer Program -$80k
Temp Dispatcher $32k
Temp Sergeant $58K
Fleet Repairs (unanticipated)
$76K
Fire
21 General Fund
Unfunded 1 Firefighter
SAFER Grant Positions -24
FEMA Waiver
Total Non-SAFER Funded
Positions =52.18 (47.18
sworn/5 non-sworn)
Measure C
Total Positions = 10.3 sworn
Type 6 Engine 50%-$200k
Operating Budget –GF $75k
CFD
Total Positions = 5.52 sworn
Measure Y
Operating Budget – GF $50k
Thermal Imaging Cameras -
$21k
Self-Contained Breathing
Apparatus Bottles-$18k
Type 6 Engine 50%-$200k
Parks & CS
Public Facilities Financing Plan
(impact fees)
Community Park 42 $200k
Fence and Water
Infrastructure
Move Parks and Community
Service Administration to Senior
Center $114k
$28K (24.6%) PFFP
$86k CY Operating Savings
22 Administration
City Manager
Unfund 2 (.5) Peer Support Specialists
Delete 2 Peer Support Specialist
Recreation Coordinator (Prop64)
CalVIP Grant Expires 06/30/25
City Clerk
City Clerk Safety Improvements $100k
Finance
Add Assistant Buyer
80% Admin Cost Recovery
Reduce Extra Help
Net $6,000 additional GF costs
23 Administration
24 Human Resources
Delete HR Technician-vacant
Info Technology
Delete GIS Coordinator/Add IT Manager
Net increase $9,000
Delete GIS Technician/Add Systems Technician I/II/III No cost difference
Data Center Floor Replacement $135k
Microsoft Software Licenses $461k (15% increase)
ERP Allocation $272k
GF Allocation $147k
Other
$1 million RDA Residual revenue
No allocation of Community Funding
No allocation for Arts Projects
Development
Services/Housing
Remove Deputy Development Services
Director for Planning Manager
Use of Fund Balance $1.3 million
Fee Study in progress
Housing Deficit
Current Year FY 24/25 ($292,000)
Revise Affordable Housing Policy
Federal Budget Proposed Cuts
CDBG $1-$2.6M
HOME $447k-$2.8M
25 Downtown/Economic
Dev/Airport
Property Based Improvement
District (PBID)
Tourism Based Improvement
District (TBID)
Small Business Grant
Airport Deficit
FAA-Cares Act Grant
Expired
Landing Fees increase
$60k
GF Transfer $367k
Other Opportunities to
increase revenue
26 Public Works-Staffing
27 Delete 1 Park Worker
Add 2 Maintenance Worker I/II-Streets and
Refuse
Delete Sewer/Storm Drain Worker and add
Lead-Sewer/Storm Drain
Delete Instrumentation Control/Electrician Tech
and add Lead-WWTP Maintenance
Add 1 Lead Instrumentation Control/Electrician
Tech (water)
Add 1 Water Distribution Quality Assurance
Tech
Add 1 Tree Trimmer
Add 1 Custodian I/II
PW-Enterprise Fund Summary
$28.6
$16.1
$25.3
$22.6
$17.0
$23.8
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Wastewater Water Refuse
Revenue Operating Expense
$’s in Millions
28 Rate Studies in progress for all utilities.
Public Works
Admin & Corp Yard
Building Repairs $166k
Fleet Building
Improvements $80k
Civic Center Skylight
Replacement $15k
Civic Center Exhaust
Replacement $50k
29 Public Works
Road Grinder $300k (M.C.)
Vehicle Acquisitions
Streets-1 Truck $75k
Facilities-1 Van $43k
Water-3 Trucks $270k
Refuse-1 Rear Loader for
Organics $225k
30 PW Parks-Measure Y Discretionary
Tree Trimming $100,000
Bike Path Maintenance $60,000
Park Improvements
Park Maintenance $50,000
Zoo Roof Repair $6,000
Joe Herb Upper $25,000
Park Restroom partitions, security
latches, and handle replacements city-
wide $69,000
31 Capital Projects
32 Streets
Replace School Flashing Beacons-add $120k
APS Polara-Push Buttons @ Schools-add $100k
Controllers 2070 Replacement-add $48k
Downtown Concrete Light Poles-new $40k
Engineering
McKee Road Rehabilitation $1.2 million
Finishing Up…
33 Fire
•Type 1 Engine Delivery July 2025
(FY22/23)
•Type 1 Stock Engine Delivery July
2025 (FY24/25)
•Hawk Fire Training Center
Construction Fall 2025 (FY22/23)
•Station 51 Kitchen Remodel
complete July 2025 (FY24/25)
•Station 52/53 Bathroom/Kitchen
Remodel complete Fall 2025
(FY24/25)
•Addition of Paramedic (ALS) on
Engine 51 August 2025 (FY21/22)
Police
•Armored Vehicle put in service
December 2025 (FY22/23)
•Red Light Camera revenue
recognition (FY24/25)
•10 Replacement Vehicles will be
put in service (FY24/25)
Admin
•Tyler Implementation (FY20/21)
•HR/Payroll October 2025
•Utility Billing March 2026
•Launch New Website
September 2025 (FY24/25)
Finishing Up…
Parks and Community Services
Rec Trac Online Recreation Registration/Reservation System Fall 2025 (FY20/21)
Merced Regional Sports Complex (CP42) Summer 2025
(FY21/22)
Merced Applegate Zoo construction Spring 2026 (FY21/22) Kiddieland Winter 2025 (FY22/23)
PROS Parks, Rec, Open Space Master Plan complete Feb
2026 (FY24/25)
General Van Pao Park Phase 1 open Spring 2026 (FY23/24) Fahren’s Park Nature Trail complete Summer 2026
Economic Development
Merced Airport Terminal Completion Fall 2025 (FY21/22) Completion of Sears Renovation December 2025
34 Finishing Up…
35 Engineering
Yosemite Ave Reconstruction (FY19/20)
Mainstreet Direction Project (FY22/23)
Bob Hart Square Expansion (FY21/22)
Childs Multi-Use Path (FY21/22)
Santa Fe Strip Park (FY21/22)
Traffic Sync (FY 21/22)
Safe Streets Light Retrofit (FY22/23)
Stowell School Pedestrian Improvements
(FY24/25)
IT Generator project (FY23/24)
Public Works
Dennis Chavez Park Improvements (FY24/25)
Diego Rivera Park Improvements (FY24/25)
Utility Rate Studies (FY23/24)
Fiscal Stability-Revenues
36 Adopt new CFD for Services
Increase Base Tax Rate
Adopt new Development Services Fee Study
Business License/TOT/Cannabis Audits
Identify Other Potential Cost Recovery Areas
Budget Options
37 Leave As Is
• $429k out of
balance
• Credit rating
impact
Add Trust 115
Transfer In Revenue
to fill the Gap
• A few years fix
NOT a forever fix
Add back certain
positions
• Leave out of
balance
• Add Trust 115
• Other identified
expense
reductions
Questions?
38 Council Budget Discussion