City of Merced
Budget 2025-26
1 FY 2025/26
Budget
City Budget Overview
General Fund
Measure C
Measure Y
Other Departments
Council Direction
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 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
5 General Fund Transfers
$’s in Millions
6 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)
7 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
Measure C 8
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 Y
9 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
10 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 & 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
11 Senior Center and McCombs Youth
Center
FY 23/24 Senior Center
Rental Revenue $ 73,206
Expense
Staffing
2 Temp Rec. Leaders at 960 @
$16.00 31,565
Utilities PG&E /MID/Wifi 27,375
AT&T Annual total of Monthly Service 672
Inter/dept Facilities Fees Custodial/Maintenance 93,384 Cleaning Fee(Service
Masters) Event cleaning fee
10,613
Total Expense 163,609
Expense over Revenue $ (90,403)
FY 23/24 McCombs
Youth Sports Jr. Warriors $ 25,290
Sports Camps Pickleball/Badminton 5,245
Total Revenue 30,535
Expense
Annual Lease
Agreement Boys&Girls Club 35,000
AT&T
Annual total of Monthly
service
380
Inter/dept Facilities Fees Custodial/Maintenance 5,013
Total Expense 40,393
Expense over Revenue $ (9,858)
12 Fitness Equipment in Parks
Equipment Quote (YLI) $200,000
Add installation costs
Add Field Prep costs
PROS Plan
Identify Community Needs
Strategic Approach
Incorporate this request into plan
13 Police
14 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
15 General Fund
Unfunded 1 Firefighter
SAFER Grant Positions -24
FEMA Waiver
Public Safety Hiring
Freeze
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
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
16 Administration
17 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
18 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
19 City PBID
Assessments
FUND 9100-PARKING AUTHORITY $34,642
FUND 6000-WATER OPERATIONS $312
FUND 1000-GENERAL $31,947
(INCLUDES 2% PUBLIC BENEFIT ASSESSMENT)
TOTAL $66,901
20 Public Works-Staffing
21 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
Public Works
Admin & Corp Yard
Building Repairs $166k
Fleet Building
Improvements $80k
Civic Center Skylight
Replacement $15k
Civic Center Exhaust
Replacement $50k
22 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
23 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
24 Capital Projects
25 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
Roads Projects Funding
Fund Funding Source PTBD Unappropriated Total
2007 Gas Tax-SB1 $ 1,511,935 $1,511,935
2008 Measure V-Alternative Modes 416,297 416,297
2009 Measure V-Local Transportation 2,175,946 2,175,946 2031 Measure C-Roads $571,634 571,634
3006 Surface Transportation Program (STP) 1,693,791 1,693,791 3007 Local Transportation 71,017 71,017
Total $5,868,986 $571,634 $6,440,620
26 Council Direction
27 Community
Funding
•Historically $28k-$50k
•Non-operating/does not impact deficit
•Will reduce amount projected to be available at the end of the fiscal year.
Arts Projects
•Historically $100k
•$92k from current year carrying over into next year.
•$64.5k allocated/$27.5 unallocated
•Non-operating/does not impact deficit
•Will reduce amount projected to be available at the end of the year.
Council Directions
28 Police Positions
• Police Officer
$155,869 each
• Four Police
Officers =$623,476
• Dispatcher
$106,082
• Increases deficit
Fire Position
• Firefighter $143,145
• Increases deficit
Deficit
• Leave out of
balance
• Add Trust 115
• Other identified
expense
reductions
Questions?
29 Council Budget Direction