CITY COUNCIL
FUND NO. 1000
DIVISION NO. 0500
MIS
SION
The M
ayor and Council Members will continue to work collaboratively as a team to represent all Merced residents, and their respective Districts, to create an atmosphere which:
◊ Enc
ourages and fosters public input and involvement in the decision making process;
◊ Em
braces diversity in the community;
◊ Ex
hibits tolerance of different opinions;
◊ Disp
lays respect and concern on all issues;
◊ Dem
onstrates leadership by its actions;
◊ Pl
edges support or disagreement respectfully, striving to keep Merced a city where good things happen;
◊ Ens
ures that all persons appearing before the City Council are treated fairly and equally;
◊ Com
plies with both the letter and spirit of the laws and policies affecting the operations of government;
◊ Ar
e independent, impartial, and fair in their judgment and actions; ◊ Uses t
heir public office for the public good, not for personal gain; ◊ Conduc
ts public deliberations and processes openly, unless required by law to be confidential, in an atmosphere of respect and civility.
GUI
DING PRINCIPLES
In a
ddition to the adopted Mission, the City Council also adopted Guiding Principles for Fiscal Year 2026-27:
• Bui
lding community is essential in supporting the health and wellness of residents within the City of Merced – an effort that the City Council is committed to across all service areas.
Attachment 3
CITY COUNCIL
• In every way possible, the City of Merced strives to provide equal access to all its residents and supports services and programs that promote inclusivity.
• Serving the residents of the City of Merced is paramount, with a goal of providing excellent customer service across all functions.
• Maintaining City property enhances the quality of life for all residents, the City will elevate the standard of maintenance across all public resources.
2026-2027 BUDGET HIGHLIGHTS
Approved budget highlights include continued public outreach for various campaigns and events utilizing a social media professional firm , MCAG annual membership dues, LAFCo review fees for annexations, League of California Cities annual membership dues, advertisements for project -specific community meetings and City Council Town Hall meetings, as well as travel and training allocations for the Mayor and each Council Member.
CITY MANAGER
FUND NO. 1000
DIVISION N O. 1000
DESCRIPTION
The City Manager serves as the Chief Administrative Officer of the City of Merced. The City Manager’s Office is responsible for coordinating and allocating public resources through all City departments , carrying out programs , implementing policies established by the City Council, and ensuring that City Council’s goals and priorities are met . The City Manager also serves as the City Clerk. Under the City Manager’s umbrella is the City Clerk’s office, Human Resources & Risk Management, Economic Development, and Parking Authority; thereby, overseeing the goals and projects of these entities.
MISSION
The City Manager ensures that the organizational values of the City are the foundation in which City business is conducted and how the budget is formulated. These values include an outlook directed to the future; an entrepreneurial, competitive approach to city services; recognition of the value of public investment and the importance of maintaining City assets ; decision- making at the most appropriate level; and a system of accountability and efficiency through service delivery.
GOALS
Serve the residents of Merced by delivering core services, which exceeds expectations in efficiency, quality, and safety.
Assist the City Council in their role as policymakers by providing clear, concise, accurate, and unbiased professional staff work. Lead the organization by establishing goals, objectives, and measurable standards for performance, and compensate employees accordingly.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue to provide leadership to City
staff.
Encourage departments to effectively use
public resources of the organization to
meet Council’s goals and priorities.
CITY MANAGER
2. Develop and maintain positive labor
relations, including the implementation
of retention, recruitment, and
succession plans to provide future
opportunities for the City’s labor force.
Provide ongoing training opportunities
and seek out additional online training
options for staff to ensure the growth of
employee skills to meet the future
demands for quality City services. Work
in partnership with Human Resources
and other departments to develop a
positive working relationship with all
bargaining units, and negotiations for new
compensation plans. Update the
Personnel Rules and Regulations to
reflect current federal and state
employment laws.
3. Continue in a leadership role with the
Merced County Association of
Governments’ Technical Review Board
and serve as a resource for the One
Voice Program.
Continue to provide leadership to address
regional issues related to transportation,
transit, and solid waste planning. Serve
as a resource for the One Voice Program
to develop a shared platform of projects
and issues of regional significance, and
advocate for legislation or policy changes
that will benefit the region.
4. Continue public information functions
as part of the City Manager’s Office
Ongoing program of public information
activities/releases regarding City activities
and issues; includes developing
newsletters for dissemination and
continued public outreach.
Strengthen the City’s social media
presence and community engagement
through the aid of a professional firm.
5. Continue legislative advocacy functions
as part of the City Manager’s Office
Update and maintain a legislative
platform to advocate for resources to
support City functions and operations.
6. Continue grant functions as part of the
City Manager’s Office
Continue ongoing efforts to research and
apply for grants to help offset operational
expenses.
CITY MANAGER
7. Contribute to Government operational
and infrastructure investments.
Provide continued leadership and
coordination in the ongoing development
of the Enterprise Resource System
project and the development of the
reinstatement of a vehicle and computer
replacement program.
8. Natural Disaster / Flood Response a. Plan, organize, and execute a tabletop and hands-on emergency
incident exercise that includes
FEMA training.
b. Create pathway for coordinated
services to residents.
c. Evaluate regional prevention efforts
with federal, state, and local
partners.
d. Evaluate local issues and system
capacity enhancements.
2026-2027 BUDGET HIGHLIGHTS
The City Council’s goals and priorities are the foundation for the direction of the City Manager’s Office for fiscal year 2026-2027. The Deputy City Manager will provide direct support to the City Manager to further the City Council’s goals and objectives , and is involved in the management of City operations and City Council priority project . Also supporting the City Manager’s Office are a Senior Management Analyst whose primary function is to serve as the Public Information Officer, a Management Analyst, and an Administrative Assistant II . These positions will focus on legislative advocacy , grant coordination, and responding to citizen inquiries.
AIRPORT
FUND NOS. 6003 & 5006
DIVISION N O. 6500
DESCRIPTION
The Merced Yosemite Regional Airport supports the economic development of the City of Merced by offering commercial, corporate, and general aviation operations and related services; air ambulance services; flight training; aircraft maintenance and repair; and fuel sales. Commercial airline service is provided through the federally subsidized Essential Air Service (EAS) program of the U.S. Department of Transportation. The airport activities are conducted in accordance with federal and state laws and regulations, and the City’s Municipal Code and local ordinances. The airport’s runway, taxiways, terminal building, aircraft parking and hangar areas are managed by the city to ensure the safe and efficient movement of aircraft and airport customers.
The airport strives to operate in a safe and secure manner, adhering to applicable federal and state laws and regulations, as well as the City Municipal code and local ordinances.
MISSION
The Merced Yosemite Regional Airport supports the economic and physical development of the City of Merced by providing resources for commercial airline service, corporate and general aviation, air ambulance services, flight training, aircraft maintenance and repair, and fuel sales.
GOALS
• Provide sustained high quality aviation services and facilities by maintaining and operating the Merced Yosemite Regional Airport in a safe, secure, cost-effective, and financially self-sufficient manner.
• Increase the utilization of Airport assets by expanding passenger enplanement numbers and providing improved passenger experience.
• Expand awareness of the airport through marketing and events open to the public to build interest in aviation, working with the airport based general aviation and business community.
• E nter into new leases and agreements for provision of aviation related services to generate additional operating revenues.
AIRPORT
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Contribute to economic development
efforts of the city.
2. Enhance airport revenues and reduce
operational costs at the Merced Yosemite
Regional Airport. Review shared service
cost allocation per capita. Adding
sponsorship marketing to the new
terminal.
Effectively work with the federal
government, businesses, tenants, and
customers to increase activities and
revenues at the airport.
Sustain and operate the airport, reducing
reliance on the City General Fund.
3. Maintain and grow scheduled airline
service at Merced Yosemite Regional
Airport.
Airline service continues and expands;
EAS program participation continues with
no interruption to service, while requiring
advertising efforts to be employed in a
broader geographic region.
4. Maintain safe operation of the Merced
Airport.
Achieve “Excellent” results on all annual
inspection/performance reports provided
by the State of California. Work with
tenants of airport to ensure satisfactory
performance to avoid inspection violations
due to tenant action or inaction.
Proactive efforts to achieve no lost time or
employee reportable medical injuries,
aircraft incursions or accidents.
5. Continuous Improvement of Airport
facilities.
Pavement Rehabilitation Design, and
capital improvement items as described
in the Merced Airport Master Plan and as
updated in the Airport Capital
Improvement Plan on an annual basis.
AIRPORT
6. Maintain excellent Tenant and City
relationships.
Create transparency of airport operations
and policies through the Regional Airport
Authority monthly meetings, and rollout
of the new Airport website.
7. Enhance Fixed Base Operator Service to
cater to corporate and general aviation
clients expanding the clientele to the
Airport.
Develop and issue a Request for
Proposal selecting a Fixed Base
Operator through the competitive bid
process.
2026-2027 BUDGET HIGHLIGHTS
The primary highlights will continue to ongoing Airport financial sustainability, as well as increasing passenger enplanements to ensure that the passenger experience is one that travelers will wish to repeat. Necessary updates to facilities and airport operating areas will be accomplished as private, local, City, State, and Federal funding sources allow. The Airport and the EAS carrier will strive to achieve the 10,000-passenger enplanement target which would result in eligibility for $1 million in FAA Airport Capital Improvement Funding, payable in two to three years following attainment of the 10,000- enplanement goal. New Terminal to help increase revenues through sponsorship opportunities, leasing new counter space to a car rental agency or aviation related business, vending and increased passenger capacity. Existing terminal to be leased out to an aviation related business will also generate additional revenue for the Airport.
CITY CLERK
FUND NO. 1000
DIVISION N O. 1010
DESCRIPTION
The City Clerk's Office promotes open government by managing and storing official records and providing citizens with easy access to the City Council decision-making process. In addition to maintaining accurate and complete data of all matters and business pertaining to the City . The Division is responsible for staff support to the City Council, including the preparation and posting of agendas, clerking of all City Council meetings, indexing actions and documents, and preparing a detailed and accurate record of proceedings. The Division also coordinates City boards and commissions, providing consultation to support staff, noticing vacancies, managing citizen appointments, coordinating ethics training and administering oaths. The City Clerk's Office supports all departments with overseeing the processing of contracts, agreements and deeds by ensuring they are complete, executed, certified, distributed and properly maintained. The Division processes legal summons and subpoenas, and provides election services including election initiation, responding to candidates, citizen and media inquiries, mandatory campaign statement filing, and follow -up activities. The Clerk’s Office receives, tracks, and appropriately responds to Public Records Act requests and maintains all compliance with the act as required by statute.
MISSION
To build trust and confidence in local government , foster civic education and participation through effective facilitation of the legislative process , and transparent, accountable stewardship of public information and official records.
GOALS
◊ Enhance and Promote Openness, Accessibility and Transparency ◊ Promote Civic Education and Participation
◊ Encourage and Support Studious Management of Records and Archives ◊ Maintain Compliance with Legal Mandates
◊ Foster Leadership and Professionalism
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue to work with Departments
on responding to PRA’s in a timely
manner
• Open Communication and follow
up and educating on the PRA
Laws
CITY CLERK
2. Develop and mentor Boards and
Commission Clerks on the proper
way to finalizing agendas and to
clerk meetings
• Continue training with each
Board and Commission Clerk
3. Develop a PRA Policy • Work with the CA’s Office to establish a solid PRA Policy
4. Managing and Storing Board and
Commission Minutes
• Ensuring Board and
Commission Clerks provides the
Clerk’s Office with original B&C
minutes
5. Retention Schedule • Work with the CA’s Office to
update the retention schedule
2026-2027 BUDGET HIGHLIGHTS
The continued training focus for 2026-27 will be on the Assistant City Clerk achieving the designation of Certified Municipal Clerk (1 point away) and the Deputy City Clerk to start training to work towards the designation of Certified Municipal Clerk. The budget also allows for training and travel to various City Clerk’s Association of California meetings and conferences to continually expand the knowledge of the office.
Working with the Boards and Commission’s Clerks to elevate their abilities to perform Clerk duties for their assigned Boards and Commission. Provide extensive training and documentation to help them be more successful. Work with the City Attorney’s Office to provide Brown Act Training for each Clerk and to also provide Brown Act Training for each Commission.
Providing staff with Administrative Report writing training opportunities to help elevate the quality of the administrative reports that each department produces for agendas. The Clerk’s Office will work in coordination with the Deputy City Manager and provide two training modules including presenting to the City Council.
With the passing of SB 707, the Clerk’s Office will need to look into expanding our personnel to accommodate the new changes. This may look like a part time position that would help facilitate the live call ins during Council meetings, translating the agenda into a different language, writing minutes, and other duties that may arise. SB 707 will be a heavy load that the City Clerk’s and IT Office will take on. It will be the responsibility of the City Clerk’s Office to train the Board and Commission Clerks on all things SB 707. There will be a lot of time spent working with the City Attorney and IT Departments to develop and implement a
CITY CLERK
plan for all the changes that are required. There will also be trainings that the Assistant City Clerk will more than likely need to attend, which will be time away from the office.
CITY ATTORNEY
FUND NO. 1000
DIVISION NO. 1500
DESCRIPTION
The City Attorney is appointed by the City Council and acts as legal advisor and counsel for legal issues involving the City, the Public Financing and Economic Development Authority (PFEDA), the Parking Authority, the Successor Agency to the Redevelopment Agency (Successor Agency), and their committees and commissions. The City Attorney represents the City Council, City Manager, City administrative staff, PFEDA, the Parking Authority, the Successor Agency, and others as required to represent the City in litigation and to direct the City’s legal service so that policies are established, and programs are maintained within the guidelines established by city, state, and federal laws.
MISSION
The City Attorney’s office is committed to providing excellent legal services consistent with the highest professional and ethical standards, with the goal of protecting and advancing the City’s interests in serving the people of Merced.
GOALS
A. Focus on enforcement of the municipal code to improve the public health, safety, and welfare in the City with a specific focus on substandard/dangerous buildings and abandoned properties utilizing the various administrative enforcement tools available.
B. Focus on providing legal support regarding ballot measure(s), proposed revenue measures, and economic development.
C. Focus on the criminal citations process to reduce prosecution through the court system.
D. Focus on review of organization policies and procedures to ensure internal consistency and compliance with city, state, and federal laws.
E. Provide Boards and Commissions and assigned City staff with support and training on public meeting procedures and conduct.
F. Provide all City departments with the necessary legal support to accomplish the Mayor and City Council’s FY 26/27 goals and priorities.
G. Assist with organizational development and promote professional development to serve the City’s needs.
OBJECTIVES
A. S upport Code Enforcement and the Code Enforcement Task Force in bringing substandard/dangerous and vacant buildings and dwellings into compliance thus eliminating hazardous conditions, improving the housing stock, and reducing blight within the City.
CITY ATTORNEY
B. Support the City Council, the City Manager’s Office, and the Finance Officer in developing and enhancing revenue; prepare necessary documents for any proposed ballot measure(s) or revenue measures.
C. Support the Police Department through the Administrative Citations process to encourage code compliance, reduce criminal prosecution through the court system, and to generate revenue from collection of fines.
D. Provide legal support and services to all City departments necessary to assist in achieving the City Council’s policy goals and priorities for FY 26/27.
E. Provide ongoing training for all Boards and Commissions and assigned City staff on public hearing procedures and conduct.
F. Assist with Personnel Rules and personnel related administrative policies update and revision.
G. Encourage attorney and support staff participation in professional and education programs and organizations.
2026-2027 BUDGET HIGHLIGHTS
• Preserve core staffing.
• Maintain the ability to provide core, critical services. • Professional staff taking on responsibilities to preserve critical support staffing. • Supporting key City Council and organizational priorities.
FINANCE
FUND NO. 1000
DIVISION NO. 2000 & 2050
DESCRIPTION
The Finance Department collects and disburses all funds, performs all treasury functions, maintains the general and subsidiary accounting systems, prepares financial and management reports, provides centralized purchasing and central stores, maintains, and reviews all internal control policies, and compiles budget revenue and expense estimates.
MISSION
The Finance Department executes the responsibilities and obligations of fiscal administration for the City in the capacity granted in the City Charter. Those essential duties require all departmental staff to serve the public interest with professional standards, which promotes and affirms the public’s trust in the performance of the financial affairs of the City and related Agencies.
GOAL
◊ Effectively and efficiently administer the financial affairs of the City and related Agencies.
OBJECTIVES
PERFORMANCE
MEASUREMENTS/INDICATORS
1. Provide support for fulfilling
the City Council Policy
Priorities.
2. Update and implement the
necessary financial policies to
insure fiduciary soundness
and transparency.
3. Assist in the implementation
of a citywide Enterprise
Resource Planning system.
4. Assist in the administration of
the American Rescue Plan
Act based on the plan
approved by City Council in
On going
On going
Finance will continue to work in
partnership with the Information
Technology Department to complete
implementation of the approved Tyler
Technology citywide Enterprise
Resource Planning system over the
next year.
Finance will work with the City
Manager’s office and all Departments to
administer, track, and complete final
reports on funding provided to the City
FINANCE
correlation with COVID-19
impacts.
5. E xplore an Enhanced
Infrastructure Financing
District (EIFD).
6. Assist in developing a
process and strategy for
funding facility needs,
including Fire Station, Police
Headquarters, Public Works
Expansion.
7. Assist in completing and
implementing the formation of
a new Community Facilities
District for Services.
8. Implementation of Fiscal
Sustainability Plan
from the American Rescue Plan Act.
Finance will work with the City
Manager’s office, Economic
Development Department, outside
consultants to explore and/or implement
a plan to establish these districts.
Finance will work with the City
Manager’s office and the City Council to
coordinate a funding strategy.
Finance will work with Planning,
Outside Consultants, and City Council
to provide financial data to form a new
Community Facilities District for
Service.
Finance will continue to work in
coordination with the City Manager’s
office to implement the long-term plan.
2026-2027 BUDGET HIGHLIGHTS
The Finance Department began the implementation of the new Tyler Technology software in November of 2020. To date we have gone live with Financials, Open Finance (online transparency tool) EAM (public works facilities, fleet and work order modules), Inventory, VSS (vendor access and EPL (building and permitting). In the second half of Fiscal Year 25-26, we are scheduled to go live with HRM (human resources and payroll), UB (utility billing), and Bids as the final modules for completion. The project continues to require a significant amount of resources. During the next fiscal year due to finalizing implementation, working on custom reports, and additional time it will take to navigate the new programs, Finance has determined it needs two extra help (960hr) positions to assist in backfilling. The costs are included in the Finance budget.
Although, there continues to be additional work required by the Finance to complete in assisting other departments and for citywide operations and limited resources, we are not making any personnel requests for Fiscal Year 2026-27.
We are requesting additional overtime and CTO pay out for staff to be able to complete assignments.
PERSONNEL
FUND NO. 7008
DIVISION NO. 4500
DESCRIPTION
The Personnel Department is responsible for ensuring that the City’s system of recruitment, selection, hiring, labor negotiations, and employee relations is kept up-to-date and relevant to the organizational structure and purposes, and that it operates in compliance with personnel rules, regulations, and procedures. This involves studies and analysis of occupational data, job observation and employee and supervisor interviews to determine physical, mental, and training requirements of jobs. This information assists the Department to develop and maintain job descriptions and specifications, and lines of career movement.
Department staff processes employment applications, payroll status changes, administers Federal and State Leave Laws, oversees selection procedures and monitors oral interview boards to ensure compliance with applicable laws and regulations.
MISSION
The mission of the Personnel Department is to ensure fair and impartial professional and technical support services in the overall administration of the City’s personnel program.
GOALS
Establish a culture and reputation of superior customer service
Develop and maintain a program that affords staff development and retention
Disseminate information to all City departments relating to statewide litigation, federal litigation, and legislation concerning personnel administration in the City of Merced
Fill position vacancies created through various forms of turnover
Conduct a review of current City policies and update as needed
Evaluate City employee retention statistics and review options for potential compensation
HR staff will attend trainings whenever available to learn the latest tools in recruitment to foster an environment that promotes diversity and inclusion
PERSONNEL
Begin labor negotiations with the various labor groups.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Monitor all state and federal
case law and legislation that
could impact personnel
administration in the City of
Merced.
Distribution of Annual Labor Law
Posters, legislative reports and new
state and federal laws to appropriate
departments.
2. Update Policies and Personnel
Rules and Procedures
Complete the update to the City
policies to ensure they incorporate all
labor law updates and continuing to
update the Personnel Rules and
Procedures.
3. Employee Recognition
4. Work closely with departments
to fill the position vacancies
created through turnover and
new positions added in the
midyear budget.
Continue to provide employee
recognition with the annual Employee
Service Awards and to seek
opportunities for additional employee
appreciation.
Continue to fill vacancies as they open
up. Meet with departments to plan for
any upcoming retirements.
2026/2027 Budget Highlights
Recruitments are expected to remain steady during the 2026-27 fiscal year. The use of Neogov is continuing to provide benefits in terms of saving staff time, decreased postage costs, etc. Staff will continue to receive training that will ensure the City is complying with the changes in laws and regulations. Labor negotiations will begin in the summer of 2026. This will include all 5 labor groups As time allow, the department will continue to update City-wide policies. A large portion of the year will be dedicated to updating the Personnel Rules and Regulations. The City will finalize the draft in the early part of the year and meet and confer with the various union groups in the latter part of the year.
INFORMATION TECHNOLOGY
FUND NO. 7008
DIVISION N O. 4700-4740
DESCRIPTION
The Information Technology Department provides enterprise technology leadership, governance, and operational support to all City departments. The department enables the delivery of public services by implementing secure, reliable, and modern technology solutions that support the City’s strategic goals, regulatory obligations, and service expectations.
The department focuses on improving operational efficiency, strengthening cybersecurity, expanding digital services for residents, and ensuring that City staff have the tools they need to deliver high-quality services to the community.
MISSION
To serve the community by planning, implementing, and supporting innovative, secure, and sustainable technology solutions. The department fosters collaboration, transparency, and accountability, ensuring that technology investments enhance government operations and contribute to an improved quality of life for the residents of Merced.
Our service delivery objective is to provide the strategic leadership, technical expertise, and project management discipline necessary to maintain and modernize the City’s enterprise systems, infrastructure, and digital services.
GOALS
• Expand digital government services to improve community access through online platforms, mobile applications, GIS-enabled tools, and field-based technologies.
• Deliver technology projects using enterprise project management practices ensuring alignment with Citywide priorities, fiscal responsibility, risk management, and long-term sustainability.
• Maintain a secure, resilient, and scalable technology environment, ensuring that infrastructure, networks, and business systems meet performance standards and regulatory requirements.
• Strengthen vendor and interagency partnerships to maintain stable, secure, supported, and cost-effective business systems.
• Support City departments in delivering public services by providing reliable technology tools and responsive technical support.
Enterprise Systems and GIS Division
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
E1: Decommissioning Legacy ERP
system Preserve required historical
records from the legacy AS/400 ERP
environment to meet all compliance,
audit, retention obligations, and fully
decommission the legacy system to
eliminate operational risk and reduce
long-term maintenance costs.
E2: ERP Advanced Time and
Attendance Enhance the City’s payroll
processes by implementing advanced
time and attendance capabilities that
support shift swaps, call-backs, and
automated time entry for designated
departments
E3: Completion of Outstanding ERP
Project Items Finalize remaining ERP
modules and functions, including
animal licensing, inventory
management, loan tracking, and
CAFR-related reporting.
E4: Contracts Online
Implement an online platform to make
City contracts publicly accessible,
increasing transparency and ease of
access. A proof of concept will be
conducted first to identify and properly
safeguard any private or sensitive
information prior to publication.
E5: Countywide GIS Partnership
MOU Establish a shared-governance
data agreement with Merced County to
support regional GIS modernization,
This project is not anticipated to be
completed in Fiscal year FY26/27 and
will carry over to FY27/28
This project is anticipated to be
completed in Q2 of FY26/27
This project is anticipated to be
completed in Q4 of FY26/27
This project is anticipated to be
completed in Q3 of FY26/27
This project is anticipated to complete
in Q4 of FY26/27
data-sharing, and digital mapping.
E6: Data Classification Framework
Implement a standardized data
classification model to support
cybersecurity controls, retention
practices, maintain regulatory
compliance, and position the City to
responsibly leverage its data for future
AI initiatives.
This project is anticipated to complete
in Q3 of FY26/27
E7: Artificial Intelligence: Internal
Administrative & Records Support
Tool Implement an internal AI tool to
assist staff in accessing historical
records and preparing action timelines,
board briefings, staff reports, policy
analyses, budget narratives, and
drafting meeting minutes.
E8: Artificial Intelligence: Website
Chatbot – Resident-Facing Virtual
Assistant Implement a public-facing
chatbot on the City’s website and
Merced Connect to provide residents
with self-service access to information,
answer common questions, assist with
navigation to online services and
forms, and route more complex
inquiries to appropriate City
departments
E9: Microsoft Co-Pilot AI – Licensing
and Adoption Implement Microsoft
Co-Pilot AI, pending contractual
approval through the State CDT
program and confirmation that licensing
is bundled for free as part of the State
contract. If approved, support
departmental adoption to improve
productivity, streamline workflows, and
enhance day-to-day operations across
the organization.
This project is anticipated to complete
in Q2 of FY26/27
This project is anticipated to complete
in Q2 of FY26/27
This project is anticipated to complete
in Q1 of FY26/27
E10: AI and Automation Training
Program for City Staff Procure and
deliver training to equip staff with the
knowledge and skills needed to
effectively use AI tools and automation
technologies in support of daily
operations and service delivery.
Network Services and Service Desk
Division
N1: Data Center Flooring and
Generator Replacement Replace the
aging raised floor and end-of-life
backup generator in the City’s primary
data center to improve stability, support
modern equipment needs, and ensure
reliable continuity of critical City
operations.
N2: Fire Suppression system
Replacement – Halon Replacement
Program Transition legacy Halon
system to a modern, NFPA-compliant
fire suppression solution.
N3: POTS Line Replacement
Program Replace remaining copper
telephone with IP-based alternatives
for alarms, elevators, gates.
N4: End-of-Life Technology
Replacement (Servers, Wireless,
Network, etc.) Replace aging and
unsupported equipment to reduce
service disruptions and maintain a
secure, reliable technology
environment.
This project is anticipated to complete
in Q2 of FY26/27
This project is anticipated to complete
in Q4 of FY26/27
This project is anticipated to complete
in Q4 of FY26/27
This project is anticipated to complete
in Q3 of FY26/27
This project is anticipated to complete
in Q3 of FY26/27
N5: Backup & Recovery
Enhancements (City Partnership
MOU evaluation)
Strengthen backup infrastructure, cloud
integration, and interagency disaster
recovery options.
N6: Endpoint Device Enhancements
Improve device management and
security through modern endpoint tools
that standardize configurations,
automate compliance.
N7: Cybersecurity Vulnerability
Management Platform Creation
Continuously identifies and prioritizes
technology weaknesses across City
systems and enables timely
remediation, reducing the risk of data
breaches and compliance findings.
N8: Operational Technology
Network Platform Modernization
Transitions the City’s OT network
environment to a modern platform,
resilience, and long-term operational
sustainability.
N9: Upgrade Computer Aided
Dispatching system
This project is anticipated to complete
in Q2 of FY26/27
This project is anticipated to complete
in Q3 of FY26/27
This project is anticipated to complete
in Q4 of FY26/27
This project is not anticipated to be
completed in Fiscal year FY26/27 and
will carry over to FY27/28
This project is anticipated to complete
in Q4 of FY26/27
PEG ACCESS FEE
FUND NO. 3004
ACCOUNT NO. 4 730
PROGRAM
This fund accounts for Public, Education, and Government (PEG) access fees received under state cable franchise agreements. These revenues support capital equipment purchases, A/V modernization, and video production systems used to broadcast City Council meetings, public hearings, and community programming on the City’s PEG channels.
RISK MANAGEMENT AND SAFETY
FUND NOS. 7002, 7001, 7003 & 7008
DIVISION N OS. 4520, 4520, 4520, & 4500
DESCRIPTION
The City of Merced Risk Management and Safety program encompasses two operational divisions.
The Workers’ Compensation Division administers the self-insured workers’ compensation program, including preparation of reports for management, benefit approval and payment authorization, coordination with a third-party workers’ compensation administrator, and coordination with the City Attorney’s office in litigated claims. The workers’ compensation self-insurance retention is $350,000.
The Liability Insurance Division provides a mechanism through which the City purchases general liability, property and fire, boiler and machinery, fidelity, Public Official bonds, and airport liability. Expenses are allocated to departmental operating accounts and transferred into the liability insurance fund from which the expenses are paid. The general liability insurance is funded through the Central San Joaquin Valley Risk Management Authority (CSJVRMA). This is a risk sharing pool with a self-insurance retention of $100,000 for general liability. City staff coordinates efforts with a third-party administrator. Employment practices coverage is also available under the CSJVRMA through the Employment Risk Management Authority (ERMA) with a self-insurance retention of $100,000. The commercial property, fire, and boiler and machinery coverage is purchased through the Alliant Property Insurance Program. The commercial property and fire carry a $25,000 deductible, and the boiler and machinery have a $25,000 deductible. The fidelity coverage (crime/dishonesty employee bond) has a $1 million limit per loss with a $20,000 deductible. The City’s airport is fully insured for $25 million combined single limit per aircraft/per occurrence, with no deductible.
RISK MANAGEMENT AND SAFETY
INSURANCE ADMINISTRATION
The City of Merced Insurance Administration Division includes all personnel with assignments in the risk management area, as well as accompanying operational expenses.
MISSION
The mission of the Insurance Administration Division is to provide technical support for the administration of the insurance function.
GOALS
◊ Review and evaluate alternate methods of providing adequate insurance coverage in all areas of City needs.
◊ Administer a citywide wellness program.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Review insurance coverage obtained
in all areas of City needs.
Meet with Broker of Record annually in
month of May for all lines of coverage
to ensure premium are cost effective in
the insurance marketplace.
2. Provide health education to all City
employees.
Conduct a Health Fair each Fall in
conjunction with annual open
enrollment of employee benefits in
October.
3. Citywide Wellness Program.
Improve overall employee participation
to at least 15% in various wellness and
fitness related programs with the use of
the Corporate Wellness Strategic Plan.
RISK MANAGEMENT AND SAFETY
WORKERS’ COMPENSATION
MISSION
The mission of the Workers’ Compensation Division is to provide professional and technical support for the administration of the self-insured workers’ compensation program.
GOALS
◊ Ensure employees receive the best medical care and treatment while working to get the employee back to work and released to fully duty as soon as possible.
◊ Ensure that the City is receiving the most competitive workers’ compensation excess insurance coverage and premium levels that can be obtained in the open market.
◊ Maintain a high quality of service to employees and ensure that price and service levels are competitive for third party administration. ◊ Process all claims in a timely manner. Provide aid and support to City Employees throughout the Workers Compensation process.
◊ Prevent accidents/reduce personal injury/occupational injury by maintaining an Injury and Illness Prevention Program.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. In-house administration of claims
and employee training.
Reduction in the number of active files
by effective claims administration and
supervision/manager training.
2. Review the work product of the
third-party claim’s administrator.
Meet quarterly with the third-party
administrator to monitor litigated and
non-litigated claims and insure there
are no violations of regulations.
RISK MANAGEMENT AND SAFETY
LIABILITY
MISSION
The mission of the Liability Insurance Division is to provide adequate insurance coverage and establish risk management practices to reduce liability exposure where possible.
GOALS
◊ Improve risk management practices to reduce liability exposure when possible.
◊ Ensure that the services of the third-party claim’s administrator meet the City’s needs and the needs and requirements of the liability excess insurance carrier.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Review work product of the third-
party claim’s administrator for
efficiency and reliable claims
administration.
Meet and review claims on a quarterly
basis with the third-party administrator
to monitor effectiveness, and reduction
in litigation.
2. Review effectiveness and cost-
savings for liability claims filed
against the City of Merced and
improve efforts of cost recovery for
property damages and workers’
compensation claims, when
applicable.
10% reduction in liability claims and
increase in cost savings through
training provided by continued
membership and coverage through the
Central San Joaquin Valley Risk
Management Authority. Quarterly
review with Insurance Department staff
to monitor efficiency and effectiveness
of in-house subrogation demands.
3. Review effectiveness and cost-
reduction efforts for employment
practices claims.
Elimination or reduction in claims for
unlawful employment practices through
training provided by continued
membership and coverage through the
Employment Risk Management
Authority (ERMA) offered through the
CSJVRMA.
4. Review effectiveness and cost
savings for property insurance and
boiler and machinery coverage.
Monitor current and new City
acquisitions annually in March to insure
proper coverage.
RISK MANAGEMENT AND SAFETY
UNEMPLOYMENT INSURANCE
MISSION
The mission of the Unemployment Insurance Division is to provide benefits to employees who have left the City services and qualify for unemployment compensation.
GOALS
◊ Maintain adequate financial reserves to protect the City against any unknown and unpredictable monetary demands on this fund in any given fiscal year. ◊ Ensure that former employees are qualified to receive benefits.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Monitor all unemployment claim
pay-outs to ensure the accuracy of
charges being made against the
City’s self-funded account by the
State of California EDD office.
Payments only made to approved
claims.
2. Investigate and challenge
unauthorized filings.
No payments to unauthorized past-
employees.
2026-2027 BUDGET HIGHLIGHTS
The Insurance Division continues to review safety and workers’ compensation programs as outlined in the Injury and Illness Prevention Program (IIPP) to ensure the organization is in compliance with state and federal regulations.
The Insurance Division will continue to work with our group health insurance carrier (Anthem) to increase employee awareness and participation in the corporate wellness program.
EMPLOYEE BENEFITS
FUND NO. 7004
DIVISION NO. 4500
DESCRIPTION
The Employee Benefits budget provides the mechanism through which the City pays the cost of health, long-term disability, life, dental and vision insurance for all eligible employees. Monies are budgeted in departmental operating accounts and then transferred during the year into the Employee Benefit fund from which benefit payments are actually made.
The City Council has established an Employee Benefits Committee. The Committee is advisory to the City Council on health and welfare issues and is comprised of representatives from each of the City’s bargaining units and unrepresented management.
MISSION
The mission of the Employee Benefits Division is to provide negotiated benefits to City employees while recognizing cost containment needs.
GOAL
◊ Review and evaluate employee benefit cafeteria plan and Section 125 tax deferred plan and make changes/enhancements as needed going forward.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue to provide city-wide
cafeteria and Section 125 tax
deferred plan for employee benefits.
Re-evaluate on an ongoing basis the
employee benefit cafeteria plan and
Section 125 tax deferred plan and
make changes/enhancements when
indicated.
2. Establish and maintain an adequate
reserve fund.
At the end of the fiscal year, June 30,
2026, an adequate reserve fund will be
available for year-to-year stability within
the self-insured employee benefits
program.
EMPLOYEE BENEFITS
2026-2027 BUDGET HIGHLIGHTS
There are no anticipated significant changes in program direction, expenditures, or revenues contingent upon fiscal stability. Group medical benefits for active, temporary, and retired employee will meet Affordable Care Act requirements.
ENGINEERING DEPARTMENT
FUND NO. 3000
DIVISION N O. 5000
DESCRIPTION
The Engi neering Department is responsible for the development, implementation, and management of the Capital Improvement Program (CIP). The Engineering Department undertakes design, construction, and contract /project management of CIP-related projects and professional services in conformance with the City of Merced (City) Charter and Municipal Code.
The CIP is a multiyear forecast to rehabilitate, restore, improve, and add to the City’s capital facilities. Such improvements include water and sewer facilities and pipelines, storm drainage and flood control facilities, streets, lights , traffic signals, sidewalks, bikeways, bridges, park and recreation facilities, police and fire facilities, and airport facilities.
Additionally, t he Engineering Department provides the following services: encroachment, transportation, and grading permit issuance; pre -development and engineering review of infrastructure improvement plans within the public right -of-way; chair and administer Traffic Committee; Member of the Site Plan Review Committee; Member of the Minor Subdivision Committee; maintain records and archives of maps, streets, benchmarks, certificates of compliance, easements, and deeds ; prepare and review subdivision maps, deeds, legal descriptions, and records of survey ; maintain, preserve, and replace monuments; and conduct environmental assessments, real estate acquisitions, investigations, and research in support of City operations.
MISSION
The Engineering Department strives to provide engineering services including technical and operational support, design, and construction for the development of public infrastructure and facilities while maintaining the safety, health, and welfare of the public.
GOALS
∗ Provide quality, safe, reliable infrastructure, and related services; ∗ Provide timely and efficient delivery of projects;
∗ Effect change and promote innovation; and
∗ Increase departmental effectiveness, resiliency, and expand individual employee expertise.
ENGINEERING DEPARTMENT
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Manage the development of
infrastructure though the Capital
Improvement Program and Pavement
Management System
• Coordinate with other Departments to develop
the Capital Improvement Program Projects
• Create opportunities for more City Council and
public involvement with projects
• Administer the Pavement Management System
to select street maintenance treatments and
locations objectively and optimally.
• Deliver high quality projects in the most cost
effective and efficient manner to serve the
public.
2. Assist with the Wastewater Collection
System (Sewer) Master Plan
• Manage and coordinate design and
construction for the Wastewater Collection
System Master Plan.
3. Promote teamwork and innovation • Collaborate with City Departments in a team environment to improve overall effectiveness,
efficiencies, and establish common goals for
the public good.
• Partner with outside industry to utilize new
technology and information systems in support
of the City’s infrastructure.
4. Continue to identify and implement
sources of funding for the CIP
• Work with local, regional, state, and federal
agencies to identify funding and grants:
Local;
Measure V;
SB1;
Community Development Block Grant
(CDBG);
Congestion Mitigation and Air Quality
(CMAQ); and
Local Transportation Funding (LTF)
Active Transportation Program (ATP).
5. Ensure compliance with the Local
Business Enterprise (LBE) Outreach
and Disadvantaged Business
Enterprise (DBE) Programs
• Set project LBE and DBE goals;
• P ost goals in the Notice Inviting Bids;
• D iscuss goals with interested contractors;
during the pre-bid meeting; and
• E nsure compliance with LBE and DBE
requirements.
6. Monitor AB1600, Chapter 927 Statute
of 1987 Impact Fees.
• Review the estimated cost of public
improvements identified in the CIP budget and
the Public Facilities Financing Plan.
ENGINEERING DEPARTMENT
• Conduct an annual Public Hearing to present
the updated resolution to the City Council.
7. Increase overall efficiency and
effectiveness of the Department
• Actively recruit and retain staff.
• Provide training opportunities for staff
• Create a positive and supportive environment
that encourages professional growth for all
employees.
2026-2027 BUDGET HIGHLIGHTS
As part of the FY 2026-2027 Proposed Budget, Engineering will work with appropriate agencies in managing water, wastewater, and storm drainage master planned activities: keeping apprised of regional, state, and federal requirements regarding regulation and permitting of water, wastewater, and storm drainage facilities. Engineering will participate with the continued implementation of the Storm Water Management Programs as dictated by new State mandates and NPDES Permit.
Engineering will coordinate with other departments to develop the Capital Improvement Program Projects identified in the annual budget, and to carefully plan for future projects in the 5-year plan.
Engineering will also work with regional agencies to plan and develop projects that will provide regional infrastructure and financing thereof.
Infrastructure projects planned for construction in FY 2026-2027 include:
∗ Sidewalk Infill at Various Locations;
∗ Street Maintenance (Slurry Seals, Chip Seals) Various Locations; ∗ R Street (16
th to 18th St) Roadway Rehabilitation;
∗ R Street – Olive Ave. to Northwood Dr.;
∗ E 20th Street Mainline Replacement
∗ Canal/Childs Sidewalk Improvements;
∗ Cherokee & Black Rascal Culvert Replacement;
∗ Sewer Main Replacement;
∗ Water Main Replacement;
∗ Well Site Modifications;
∗ Bear Creek Slide Embankment Repair;
∗ MCE Pavement Rehabilitation;
∗ Hawk Training Center;
∗ M Street Sidewalk Replacement;
∗ Collins Drive Rehabilitation
It should be noted that sidewalks and access ramps are upgraded to comply with current ADA requirements on most roadway rehabilitation projects.
In addition to these projects, other projects will continue to be developed and prioritized with the use of the completed Pavement Management System (PMS). The PMS is providing vital
ENGINEERING DEPARTMENT
pavement condition data to support current and future decision-making regarding roadway improvements, including selection of Measure V and SB1 funded projects.
PLANNING
FUND NO. 3000
DIVISION NO. 5020
DESCRIPTION
The Planning Division of the City’s Development Services Department is primarily responsible for developing and maintaining the City’s General Plan (the City’s long-term vision for growth and development), processing applications for new development, and ensuring compliance with the City’s zoning code and other state and federal regulations. In addition, the Division provides customer assistance, maintains a “one-stop” permit process for new commercial, industrial, and residential projects, assists new businesses in meeting City regulations and State environmental requirements, and prepares neighborhood plans and other special projects. The Division provides a professional level of development services support to the general public, applicants for new development projects, new and current business owners, City departments, Bicycle and Pedestrian Advisory Commission, Planning Commission, Citizen Advisory Focus Group, Historic Preservation Commission, Design Review Commission, and the City Council.
MISSION
The Planning Division guides the community as it grows in meeting its long-range vision, land use, circulation, public facilities and infrastructure needs, and maintaining its high quality of life.
GOALS
◊ Continue work on Comprehensive General Plan Update.
◊ Implementation of the current General Plan that is used by citizens, local officials, and agencies as the primary policy framework for City growth and development.
◊ Facilitate and continue processing Annexation Applications to LAFCO for UC Villages, Branford Point, Baxter Ranches, CP 42 North, University Vista, Ardison, Old Dominion, Yosemite Lakes Estates, M Street, and The Reserve. ◊ Completion of Zoning Ordinance revisions to address changes to State law, implement Housing Element programs, to streamline affordable housing and support mixed use development.
◊ Continued Implementation/Monitoring of Commercial Cannabis Business Ordinance/Permits, Inspections, and Ordinance Updates.
◊ Process development applications through the new Tyler system for online submittals with a commitment to efficiency, problem solving, and flexibility.
PLANNING
◊ Efficiently manage the City’s development review process and ministerial projects.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Annexation Applications and
Preapplications
Facilitation and completion of the Applications
to the Local Agency Formation Commission
(LAFCO) for Annexation of UC Villages,
Branford Point, Baxter Ranches, CP-42 North,
University Vista, Ardison, Old Dominion,
Yosemite Lakes Estates, M Street, and The
Reserve. Ongoing work on other annexations
and annexation pre-applications as submitted.
2. Comprehensive General Plan Update Continue working actively on the General Plan Update which is expected to take 2-3 years to
complete. Continue working with the
contractor, facilitating the Citizen Advisory
Focus Group, and increasing public outreach
and participation of all residents from all
demographics and neighborhoods.
3. Zoning Ordinance revisions to address
changes in State law, Housing Element
programs, affordable housing and mixed-
use development streamlining efforts.
Various amendments to the Zoning Code will
be required to implement program and
address issues identified in the Housing
Element as well as changes in State law and
updates to streamline affordable housing and
mixed-use development. These changes
should be adopted during the fiscal year.
4. Housing Element Update and
Implementation
A revised draft of the Multi-Jurisdictional
Housing Element is currently under State
review. It is anticipated that the Housing
Element will be adopted by Summer 2026. In
order to meet the City’s Regional Housing
Needs Allocation (RHNA), the City rezoned
multiple properties. These rezones needed to
be completed prior to the Housing Element
Adoption per State law. Once certified,
additional zoning code changes will need to be
made to implement the programs.
PLANNING
5. Annual inspections of Cannabis facilities.
Continue contracting with a consultant to
perform the required inspections of
Cannabis facilities.
6. Continue perfecting the daily
implementation of the Tyler Online
Planning Permit Application Process
Work on designing a method of gaining
public feedback on the portal use.
7. Complete improvements to the
Subdivision Map Process
Extend the approval time for Tentative Maps
to the maximum allowed under State law.
This change will require a revision to the
Subdivision Ordinance and should be
completed by Winter 2026.
8. Continue to process major development
applications (such as general plan
amendments, zone changes, subdivision
maps, conditional use permits,
annexations, environmental reviews,
CFD annexations, etc.)
Ongoing. Continue to bring the projects
before the decision-makers (City Council,
Planning Commission, etc.) in a timely
manner. Use consultants to support staff as
needed, via the RFQ applicants’ skill sets.
9. Continue to process minor development
applications, such as Site Plan Approval
applications, Minor Subdivisions, etc., as
well as building permits and new
business licenses.
Ongoing. Continue to process applications
expeditiously. Continue to explore
streamlining opportunities to make all
processes more efficient.
10. Continue to provide staff support to the
City Council, Planning Commission, the
Bicycle and Pedestrian Advisory
Commission (BPAC), the Building &
Housing Board of Appeals (BAHBA),
Citizen Advisory Focus Group, Historic
Preservation Commission, and Design
Review Commission.
Agenda packets for meetings are made
available at least 3 days prior to meetings.
City Council and Planning Commission
meet twice a month. BPAC meets 6 times
per year. Other commissions and groups
meet as needed throughout the year.
11. Update website pages for Planning and
General Plan to provide increased
customer engagement and an improved
user experience.
Regularly schedule website review,
maintenance, improvements, and updates.
12. Continue to seek opportunities for grant
funding for Planning, Housing, and
supporting City-wide efforts.
Continue to meet regularly with City grant
team. Submit and follow through with
applications when grant funding
opportunities are found.
PLANNING
13. Improving Division efficiencies and
effectiveness by participating in trainings
and enhancing coordination with
development-related internal and
external agencies.
Continue with implementation and project
tracking. Seek training opportunities as
warranted and time allows.
PLANNING
2026-2027 BUDGET HIGHLIGHTS
♦ Complete LAFCO Applications for various annexations (UC Villages, Branford Point, Baxter Ranches, CP 42 North, University Vista, Ardison, Old Dominion, Yosemite Lakes Estates, M Street, The Reserve, and others).
♦ Continue work on the comprehensive General Plan Update. ♦ Adoption of Multi-Jurisdictional Housing Element, Associated Rezones, Zoning Ordinance Revisions and begin program implementation. ♦ Streamlined development process and improvements to procedures, including subdivision maps, on-line Planning applications, counter public processes, website improvements, and user interactions.
HOUSING
FUND NOS. 1020, 2500, 2501, 2502, 2503, 2504, 2505, 2506, 2507, 2508, 2509, 2510, 2512, 2513, 2514, 2515, 5009, & 8008
DIVISION N OS. 5500, 5510, & 8000
DESCRIPTION
The City of Merced Housing Division receives yearly allocations of federal Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD) on a formula basis, as well as infrequent special funding allocations to formula grantees (such as 2020 CARES Act and 2021 American Rescue Plan Act distributions). The amount is dependent upon the appropriation level established by the U.S. Congress and the allocation formula HUD uses to calculate distributions to agencies and jurisdictions nationwide.
The use of CDBG and HOME funds must be managed within the parameters of HUD’s established guidelines and statutory regulations, which include the requirement that funds address the highest prioritized needs of low- to moderate-income (LMI) individuals and households within the City of Merced. Through the assurance of compliant use of funding sources, the Housing Division ensures that the use of federal funds (and also state and local funds, if combined) towards housing, service, infrastructure, and other eligible project activities will not have a harmful effect on the community, neighborhoods, the natural and existing man-made environment, and on project occupants, existing land uses, and service program beneficiaries and participants.
Every five years, through a comprehensive needs assessment process that involves residents, community stakeholders, census and other statistical data, and local, county, and state agency input, the Housing Division determines a final set of overarching five- year goals and priorities to address during the implementation of the five-year Consolidated Plan (Con Plan), which includes a “first-year” Action Plan that sets these goals and priorities into motion during the first of the five years the Con Plan spans.
Each successive year, with preparation of an Annual Action Plan, a similar needs assessment process is carried out that essentially updates the Con Plan’s needs data and continues carrying out the goals and project priorities strategized under the Con Plan’s umbrella.
The Con Plan lays broad expenditure and outcome goals over a specific five-year period based on the assessed community needs. Each Annual Action Plan lists the available funding resources, identifies specific projects within the established ConPlan priority goal areas, seeks partnership with local non-profit organizations to carry out projects, and estimates the anticipated outcomes from each of the projects upon completion.
Though the long-standing goal is one hundred percent, HUD requires that a minimum of 70 percent of the annual CDBG fund allocation be directed to LMI and special needs populations and low-income geographic/census tract areas within the city limits, through
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meeting specific “National Objectives” for the various eligible project types carried out by the City under the plans. Comparatively, one hundred percent of the City’s allocated HOME funds are required to be directed to LMI households for eligible housing-related activities.
HUD regulations place a strict limit on the amount of funds that can be spent on these specific expenditure types each year:
• CDB
G Public Service partnership projects with non-profit organizations: annual programming and expenditures are limited to 15% of the total of HUD allocation plus the prior year’s CDBG program income (“PI”) received. PI is typically received from monthly payments or complete payoff of CDBG-assisted housing loans in the City’s loan receivables portfolio. HOME funds do not allow public service programs but do allow the City to partner with non-profit entities to generate LMI housing units.
• CDBG/HOME Administration and Planning projects: both grant types limit the amount of funds that can be spent on administration and planning activities, which normally includes Housing Division staffing, indirect costs, consultant services, and strategic planning and data collection (such as homelessness data collected during the annual “Point-in-Time” count conducted by the Merced City and County Continuum of Care). CDBG is capped at 20% and HOME is capped at 10% of each of the respective annual allocations.
P
er HUD’s requirements, both the five-year and annual plans attempt to effectively address the community’s housing, public service, economic development, and public facility and infrastructure needs. Examples of eligible activities are sewer, water, and sidewalk/street infrastructure improvement projects, public park or neighborhood facility construction and accessibility improvements, homelessness prevention, youth and elderly public services programs, and the financing of multi-family affordable housing developments and single- or multi-family rehabilitation projects.
The Housing Division also looks for State of California Housing and Community Development (CA HCD) grant funding opportunities to further address the housing and service needs of the community, often in combination with yearly federal funding distributions.
The Housing Division also manages a first-time homebuyer (FTHB) and rehabilitation loan portfolio, generated from Federal and State funds and programs for residents who were able to take advantage of the funding when it was available.
MISSION
The City of Merced Housing Division strives to provide and maintain affordable housing, public services, infrastructure and park improvements, and public facilities for LMI residents by using federal, state, and local funding resources and strategies, as well as ensuring that Merced residents have equitable and fair housing opportunities.
HOUSING
GOALS
• Through CDBG funding, provide public service/supportive service grants to local agencies and non-profit organizations towards programs and activities that address the community’s greatest and most urgent needs, including but not limited to programs and planning to prevent homelessness, improve the affordability and accessibility of housing and vital services, and to prevent and address housing discrimination.
• Continue to seek funding opportunities, supportive programs, and establish deeper partnerships with local agencies and organizations to help respond to the community’s housing or service needs, including any unexpected or urgent needs that occur as a result of natural, manmade, or public health emergencies.
• Partner with public housing agencies, affordable housing developers, and non- profit organizations to subsidize, construct, and manage permanent affordable housing and the ‘wrap-around’ permanent supportive services necessary to serve special needs populations where they are housed.
• Continue to look for new funding resources and streamlining mechanisms to help increase the number of safe, rentable housing units in the City.
• Explore options to continue to provide first time homebuyer funding assistance and education to qualified low-income households using on-hand funding that has been generated by repayment of existing housing loans over time.
• Strive to preserve and maintain our current housing stock by the creation of successful partnerships with State agencies and community-based organizations to provide owner-occupied rehabilitation grants or loans for low-income homeowners.
• Improve the current delivery of fair housing services information, resources, and education to area residents, and look for ways to increase the accessibility and effectiveness of tenant and/or landlord education and housing stabilization data and resources to Merced area residents and housing providers.
• Continue to set aside HUD and State funding for public facilities and infrastructure improvement projects that will enable parks and recreation facilities, streets, sidewalks, and other public infrastructure to become more energy efficient, safe, and accessible to all residents, especially to those in lower income and older areas and neighborhoods within the City.
HOUSING
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Grant Opportunities Continually seek State, Federal, and other grant opportunities, and
partnerships with local organizations for
the increased development,
preservation, and maintenance of the
City’s housing inventory.
2. Rehabilitation of properties either Partner with community based vacant or occupied by Low to organizations and homeowners to Moderate Income households rehabilitate properties needing health and safety repairs.
3. Provide First Time Homebuyer Partner with community based Loans to Low and Moderate organizations to provide new loans to Income Households qualified first time homebuyers using existing or new funding sources.
4. NSP3 Program (HUD) Work with HUD to close out the NSP3 Grant and transfer residual income to
Community Development Block Grant
program.
5. Long Term Housing Compliance Continue to establish a largely in-house annually reoccurring, consultant-
informed long-term rental housing
monitoring program of all the City’s
federal, state, and locally funded rental
housing projects, which ensures
continual compliance with funding
source, income limit, and regulatory/loan
agreement requirements, as well as
ensuring that all rental housing
properties are maintained in a safe and
habitable state.
6. Subrecipient Project Monitoring Renew efforts to conduct performance monitoring of public service projects to
ensure that all HUD regulations and
agreement conditions are being
complied with in carrying out Con Plan
and Annual Action Plan goals,
objectives, and expected outcomes, and
that federal financial management
standards are being adhered to in the
responsible use of federal assistance.
When needed, provide more frequent
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guidance to subrecipient organizations
implementing the projects to ensure the
required compliance.
7. Fair Housing Continue our partnership with a qualified vendor to provide fair housing services
and look for ways to educate property
managers and renters regarding Fair
Housing Act anti-discrimination rights,
best practices, and related regulations.
8. Grant Administration Continue to administer each federal and state grant or federal Section 108 loan
received based on each grant’s specific
policies, procedures, guidelines, and
regulations, including closeout of grants
once all related expenditures and
required actions have been completed
for each grant/loan.
9. Housing Assets (Fund 2513/5009) Continue to facilitate partnerships with local non-profit and affordable housing
organizations to develop affordable
housing.
2026-2027 BUDGET HIGHLIGHTS
• CDBG, HOME
Non-profit community-based
housing developers and other
qualified organizations
Low-income/affordable housing
projects
Work with non-profit community-based
housing developers and organizations to
acquire existing residential properties or
vacant land for rehabilitation or
construction of low-moderate income
rental housing.
Assist developers with obtaining federal,
state, local, and privately funded grants
and establishing partnerships with
community service providers.
Update and repost the existing
Continuous Request for Qualifications
(RFQ) to enable a source of pre-
qualified housing developers and
CEQA/NEPA environmental consultants
from which to partner on affordable
housing projects.
HOUSING
• CDBG, HOME & California HCD
Rehabilitation and/or
reconstruction of owner-occupied
housing units
Rehabilitate and/or reconstruct low-
moderate income units, including ADU
units. Continue partnership with Habitat
for Humanity and/or other qualified
nonprofit organizations for owner-
occupied rehabilitation projects and
preservation of housing.
• HCD/CalHome 06, 12
First Time Homebuyer Assistance
(FTHB)
Explore options to continue partnering
with a qualified organization, such as
Self-Help Enterprises, to provide
downpayment assistance or gap
financing and closing costs to qualified
FTHB applicants with the program
income that has been received from
existing and paid off loans.
• HOME, HOME-ARP, ARPA,
California HCD/Homekey
Multi-Family Development Projects
Work with development partners and
other City departments and Divisions to
ensure these projects are moving
forward.
• CDBG
Public Service Programs
Use funds for eligible HUD allowable
public service programs to help address
the greatest community needs, identified
through community surveys, meetings,
and other public input.
• CDBG, HOME
Permanent Supportive Housing
When feasible and when appropriate
funding is available, partner with
community non-profit organization(s)
with the acquisition, rehabilitation and/or
construction of affordable and/or
permanent supportive housing units (1-
to 4-unit projects).
• CDBG
Public Facilities, Parks, and
Infrastructure Improvement
projects.
Continue to work with other City
Departments to design, fund, install, and
improve sewer and water mains, storm
water systems, sidewalks, parks and
recreation, and other City public facilities
in order to provide and improve place,
safety, and accessibility in
neighborhoods and public areas.
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CA HCD Grants
o Permanent Local Housing
Allocation (PLHA) funds
o Regional Early Action Planning
(REAP
o Homekey/Homekey+
o General Plan –
Multijurisdictional Housing
Element
o Other not listed/tbd
Coordinate with other Development
Services Department staff and
developers to continue implementing all
State housing grant awards and
required planning documents (i.e.
Housing Element), to encourage and
enable the production of affordable
housing units. This includes
continued/future monitoring by
Department and Housing Division staff
of all housing projects built and/or
rehabilitated with these awards to
ensure project goals continue to be
carried out and maintained properly.
Affordable Housing Fund Policy (Fund
1020)
Activities supporting the development
of affordable housing:
o CEQA/NEPA environmental
o Non-HUD project costs
o F irst time homebuyer admin
o CalHome rehabilitation project
admin
o Request For Qualification
update
o Rental housing long-term
monitoring
The Housing Division will utilize Fund
1020 for the tracked project-based
hours spent on conceptual, preliminary,
currently active, and/or completed
projects relating to the types of activities
approved and listed in the current policy,
and only when these tracked hours
cannot be charged to another funding
type as Activity Delivery (federal, state,
etc.).
FUNDS AND ACCOUNTS
The various program-funding sources described above are handled through the following funds and accounts in the City’s financial system:
FUND ACCOUNT PROGRAM
1020 5500 Affordable Housing Fund
2500 5500 Housing Admin
2501 5500 CDBG Program
2502 5500 HOME Program
2503 5500 Unrestricted Program Income
2504 5500 BEGIN 94 Program
2505 5500 State HOME Funds, 1992
2506 5500 State HOME Funds, 1993
2507 5500 CalHome-06 Program
2508 5500 BEGIN 06 Program
2509 5500 Neighborhood Stabilization (NSP1)
2510 5500 Neighborhood Stabilization (NSP3)
HOUSING
2512 5500 CalHome-12 Program
2513 5510 LMI Housing
2514 5500 Affordable Housing Sustainable Communities
2515 5500 CalHome-21 Program
5009 5510 LMI Housing Capital Improvement Projects
8008 8000 Housing Debt Service (HUD 108 Loan)
INSPECTION SERVICES
Budget Org. 30005010
DESCRIPTION
The Inspection Services Division is responsible for the review of plans, issuance of building permits, and inspection of all private/public building construction projects, for new construction, additions and alterations within the City of Merced.
The Inspection Services Division ensures compliance with federal, state, and local laws, as well as the municipal codes regulating the design, construction, material standards, intended use and occupancy, locations, and maintenance of structures. The objective is to provide our citizens with standards to safeguard life, health, property, and the public welfare, while providing the highest level of customer service possible. The Division investigates violations of these laws and codes as requested by other agencies, other City departments, or the general public through an inquiry. Inspection Services is also responsible for compliance with special architectural, landscaping, capital improvement plan review and inspection, or sign conditions required by the City Council, state, local law or various City Commissions. Inspection Services is a member of the Development Services One-Stop Shop Permit Processing Center enhancing the City’s ability to provide customer service.
MISSION
Inspection Services is responsible for the administration and enforcement of the California Building Standards Codes and related federal, state, and City adopted laws and ordinances. This responsibility is for the purpose of life safety as it relates to building construction, fire sprinkler and alarm design and specialized systems, thereby assuring all structures meet or exceed the minimum life safety standards of the aforementioned codes, laws, and ordinances. This Division assures these standards by providing organized procedures for the review of plans and specifications and field inspections of construction projects.
GOALS
◊ Strive for a higher level of customer service which meets or exceeds expectations without compromising public safety.
◊ Perfecting the use of electronic capabilities, including A.I. tools to assist and aid in information exchange, plan reviews, building permits, and inspections, incorporating GIS tools.
◊ Maintain active involvement in technical and interpersonal training that will enhance Inspection Services staff's expertise. This improves the City-Wide ISO (Insurance Services Office) rating.
INSPECTION SERVICES
◊ Continued support to Housing Division with programs needing Plan Review and Inspections. Affordable Housing being the focus.
◊ Continued support to the Engineering Department for projects that have structures in need alterations, repairs or new structures, that are required to have Plan Review and Inspections
OBJECTIVES
PERFORMANCE
MEASUREMENTS/INDICATORS
1. Engage in processes and
procedures that will sustain level
of service to our applicants and
community.
Implement fees, with City Council
approval, associated with the fee study
for Inspection Services, Planning and
Engineering. A fee study for which has
not been done in 15 years. Our goal is
to capture the revenue that was not
included in the previous fee study,
thereby, maintaining service levels to
our applicants and community.
2. Continued active involvement with
the Code Enforcement Task
Force.
3. Supporting the Housing Division,
with the focus being on Affordable
Housing.
4. Supporting the Engineering
Department when needed for
projects involving structures.
The Code Enforcement Task Force is a
cross-departmental effort. There have
been several successful abatements,
greatly benefiting the citizens and the
City as a whole.
Projects throughout the City, that are
rehab projects and new projects with
the focus being affordable housing,
Inspection Services ensures these
projects are safe and comply with all
local, state and federal requirements
through plan review and inspections.
Provide plan review and inspections for
Projects that involve City-Owned
structures, ensuring the safety to the
public through plan review and
inspections.
INSPECTION SERVICES
5. Continue to perfect the electronic
permitting, plan review, and permit
issuance process with the City-
wide system Tyler EPL.
Introduced A.I. tool for plan
review, counter assistance and
inspectors.
Inspection Services has been using the
Tyler EPL Permitting system and we
are actively engaging with all users,
both in house and our customers
(Applicants, Designers, Homeowners,
and Contractors) to enhance the
experience for ease of use. We are
using A.I. for plan review, to answer
technical questions and help
communicate code requirements in the
field during inspections.
6. Maintain active involvement in
technical training to enhance
Inspection Services staff's
expertise.
Continue to evaluate employee
certifications yearly. Provide access to
all staff, for at least one CALBO, ICC,
or CBOAC event per year, for each
employee, to ensure state mandated,
continuing education requirements are
met. 100% of Inspection Services Staff
currently have active certifications.
Keeping current, and active improves
the City’s ISO rating.
7. Perform the highest level of
customer service, permitting,
consistent building plan review
and inspections.
With the implementation of the City-
wide system, it has brought
transparency to the forefront, having
greater interaction for customers, being
able to track project process from
beginning to end. Inspection Services
continues to actively train new
customers with the electronic tools
available. The retention of full-time staff
to meet demands, has also helped in
foster relationships with inspection
services customers.
INSPECTION SERVICES
8. Maintain 2 to 3 week plan review
turnaround times for first check
and 1 to 2 weeks for back check.
Continue to monitor, prioritize, and
coordinate plan reviews. Inspection
Services also continues to coordinate
certain projects with Development
Services and those members involved
from other Departments. Adding (1)
Development Services Technician will
be to the advantage of plan review
times, taking some of the
administrative burden off plan review
staff so they can concentrate on plan
review.
BUDGET HIGHLIGHTS AND LOOKING FORWARD TO
2026-2027
Inspection Services is looking forward to keeping up with the demand of increased residential multi-family and commercial construction as the City of Merced continues to grow towards the future. Given the continued growth in multi-family units, affordable housing units, and commercial, this year and beyond, the Inspection Services Division is engaging in a fee study and has hired permanent staff to provide more plan review in house, both of which, will increase revenue.
Multi-family units
This past calendar year we have experienced growth in the construction of Privately and Publicly funded multi-family units, The privately funded project known as the HUB on E. Yosemite has seen Occupancy granted for 200 housing units and mixed-use commercial. Compass Pointe II, another privately funded project has added 218 new housing units. 200 housing units for Gateway Commons resuming construction after the occupancy of Compass Pointe was granted. Publicly funded projects such as S. R Street, providing 22 housing units and services for veterans was granted occupancy. Another publicly funded project granted occupancy was Devonwood, providing 156 housing units.
Publicly funded projects having permits issued and under construction include, 66 housing units and services Mercy Village (3015 Park) and 108 housing units (Bella Vista on Parsons). Those on the horizon include; Linc Housing, Housing successor Land, 54 Units; Emerald Village, 228 Units.
New Single-family dwelling units
Highlights include permits issued for this 1
st half of fiscal year total 270, these
numbers are double last year during the same period, for the Calendar year total is 459, the highest since 2022, this leads to the request for (1) new staff member (Development Services Technician) to assist with processing these types of permits and carrying out administrative functions for plan review staff.
INSPECTION SERVICES
In the passing of SB 130, the State provided for the continued use of existing Master plans for all residential units. What this means? The City preapproved ADU, Duplex’s and Triplex’s may continue to be used until the year 2031. This also applies to current subdivisions under construction, making it easier for all to use existing Master plans under the 2022 codes, thereby creating the need for additional staff for processing, freeing up Plan review Staff time to perform plan review.
Since July 2025 through November 2025, the Inspection Services Division saw commercial growth
New Commercial Structure permits
• (2) Industrial permits:
8 silos at existing Pistachio plant
11,478 Square Foot Frito Lay Distribution Center
• ( 3) Office permits:
2980 SF Show room
1224 SF New Office and mixed use at existing Apartment complex 8000 SF Offices and community building for New Bella Vista Affordable Housing
• (1) Shell permit:
3484 SF for future tenant space
23 Tenant Improvement permits
6 for various Office uses
5 for Restaurant uses
2 Vanilla shell, future uses to be determined
6 Retail spaces
2 Gym uses
1 Cannabis grow facility
1 Laundromat
This fiscal year will continue to be balanced for the Inspection Services Division, with slightly higher than average permits issued for Single-family dwellings and the continued growth with Multi-family and Commercial permits being issued. The Division’s plan review team continues to provide a 2 to 3 week turnaround time on average for the first review. Due to current work-load, and with current staffing levels, the Inspection Services Division has supplemental contracts in place to assist with plan review and is asking for an additional Development Services Technician, which will allow for more plan review to be performed in-house rather than using consultants.
FIRE DEPARTMENT
FUND NOS. 1000, 2030, 2003 & 4502
DIVISION N OS. 3000/3010
DESCRIPTION
The City of Merced Fire Department (MFD) provides essential public safety services focused on protecting life and property. The department has strengthened its emergency medical response capabilities through the implementation of new Advanced Life Support (ALS) services, allowing for faster, higher-level medical care in the field.
MFD also delivers fire suppression and all-hazard emergency response, while supporting community risk reduction through fire prevention, code enforcement, investigations, and public education programs. In addition, the department is actively planning for a new fire station in North Merced to improve service coverage and meet the needs of the community’s growth.
VISION
The Merced Fire Department is a progressive organization unified in creating a safe and secure community.
MISSION
The Merced Fire Department’s members will prevent, prepare for, and mitigate emergencies to protect the citizens of the City of Merced through exceptional service and visionary leadership.
GOALS & OBJECTIVES
Protect Lives and Property (General Fund)
• The MFD’s primary mission is to protect the lives and property of City of Merced residents and visitors.
Create the appropriate staffing model to fulfill the needs of the Merced Fire Department and best serve the community.
• Evaluate historical data compared to staffing, especially in light of the new advanced life support delivery model
o Analyze historical data compared to staffing
o Identify issues and gaps in present staffing model
o Compare analysis to industry standards and similar-structured organizations
• Identify Recruitment and Retention Challenges
o Engage employees on current recruitment and retention programs
o Analyze staffing to determine trends around retention o Evaluate effectiveness of current recruitment
o Propose recruitment and retention improvement Plan
• Develop an Appropriate Staffing Model
o Evaluate workload across the MFD
o Develop an implementation plan for an increase in paramedics o Ensure proposed staffing plan is designed for longevity to continue to meet the needs of the community
o Present proposed staffing model to MFD
Respond to Emergencies:
• The MFD responds to a wide range of emergencies, including fires, medical emergencies, hazardous events, and natural disasters.
Advance Fire Safety:
• The MFD promotes fire safety though fire prevention, investigation, and education programs.
Minimize Damage:
• The MFD strives to minimize damage to persons and property during emergencies.
Reduce the Risk of Fire Incidents:
• The MFD strives to reduce the risk associated with fire incidents.
Promptly Respond to Emergencies:
• The MFD aims to respond promptly to fires and other emergencies.
Provide High-Quality Emergency Medical Service to Include Advanced Life Support Services:
• The MFD strives to provide high-quality emergency and advanced life support services.
Public Education:
• The MFD continually educates the public on fire safety, life safety, and disaster preparedness.
Enforce Fire Safety Codes:
• The MFD enforces fire safety codes.
Fire Prevention:
• The MFD is committed to fire prevention, investigation of fire causes, and the elimination of fire and life safety hazards.
Focus on Vulnerable Populations:
• The MFD focuses on educating the City’s most vulnerable populations about fire prevention and disaster response.
Training and Equipment:
• The MFD continuously updates its training and equipment to meet the demands of a changing environment.
Partnerships / Collaboration:
• The MFD collaborates with organizations such as: Mercy Hospital, UC Merced, Merced City School District, Merced Union High School District, Merced County Fire, Merced County EMS Agency, PG&E, Merced Irrigation District, American Medical Response (AMR), and many other vital community partners.
Staffing (General Fund)
• Invest in Employee Development and Organizational Excellence. Recognize employees as the department’s most valuable asset and provide continuous opportunities for professional growth and advancement. Regularly reevaluate and update job descriptions to ensure roles, duties, and expectations align with current industry standards and departmental needs. Strengthen workforce development by revising training schedules, promoting career progression through the ranks, and preparing members for future administrative and leadership roles. Implement paramedic-trained Firefighter II, Fire Engineer II, and Fire Captain II positions to expand advanced life support capabilities throughout the community. Ensure comprehensive development that begins with new recruits and extends through senior personnel, fostering a consistence culture of excellence across all levels of the department. Maintain proper staffing and training levels to deliver the highest standard of service and remain aligned with current best practices in the fire and emergency services profession.
• Ensure Adequate Staffing to Meet Community Needs. Maintain sufficient staffing levels to provide effect emergency response and ensure the safety of both the community and department personnel. Successfully implement the $8.9 million Federal Emergency Management Agency (FEMA) grant awarded in 2024 to support the hiring of 24 additional Firefighter I/II positions. Continually evaluate and refine staffing models to enhancing operational effectiveness and improve firefighting response across the city. Strengthen fireground performance by increasing staffing and ensuring an “Effective Fire Force,” resulting in improved fire outcomes, reduced property damage, and measure savings in community insurance costs.
• Strengthening EMS Service Delivery. Maintain EMS as a cornerstone of emergency response by ensuring high-quality, timely service throughout the city. Build on the successful implementation of Advanced Life Support services in by expanding ALS coverage to east and south Merced in 2026.
Improve community outcomes by increasing access to advanced pre-hospital care across all service areas.
Strengthen Youth Outreach and Community Engagement (General Fund) • Continue providing Merced’s youth with high-quality programs and services that promote safety, education, and positive community relationships. Maintain and expand the fire department’s role as a strong community partner by enhancing outreach efforts and education initiatives that support youth development and prepare them to become future community leaders. Increase participation in high school programs to support local recruitment efforts, promote career pathways with the fire service, and build a strong connection with Merced’s youth.
Future Planning for Infrastructure & Resources
• Improve delivery service by continued planning for the adding/relocating fire station(s), which will require a capital plan for rebuild/replacement, or addition of fire stations.
• Exercise the diversity of the fleet of apparatus to include equipment that can ably respond to difficult to access areas within the city and immediate surroundings which include the miles of strip parks, bike paths, and the UC Merced campus. • Expand advanced life support EMS care to the southern and eastern areas of the community.
• Continue the development and formalize partnerships for the Hawk Regional Training Center to serve the needs of the public safety community, the City of Merced workforce, and the community at-large. The Hawk Regional Training Center is a community project with participation and support from our partners at Merced College, Merced Unified High School District, and Merced City School District.
Downtown
• Provide efficient permitting, inspection, and public education to ensure a safe- built environment, promote fire prevention, and support emergency response to protect the citizens and visitors of our downtown district.
Regional Transportation
• The fire department will continue to partner with regional transportation providers in developing improved responses and a better understanding of transit-specific concerns as well as resources that transit might provide in the case of a community emergency.
Sustainability
• Fire department will continue to promote public awareness regarding flood prevention readiness, emergency alerts and preparedness; the importance of family disaster plans for floods; awareness of streams and drainage channels in nearby neighborhoods, locations of sandbags, and to provide timely information on road closures.
• Leverage available grant funding to support the growing needs of the community.
The Department was awarded an $8.9 million grant to fund 24 Firefighter I/II positions to be better able to respond to requests for emergency assistance.
These Firefighter I/II positions will be the future leaders of the agency and will staff Fire Station 56 once built.
Housing and the Unhoused
• Fire department will continue to deliver medical service to the unhoused and ensure that unhoused facilities meet fire and life safety standards for the safety of its residents.
Quality of Life
• Continue to promote fire and safety education and awareness programs in neighborhood watch programs.
• Continue to provide comprehensive emergency and non-emergency services to its citizens.
• Fire department will more effectively educate the public about fire and life safety by creating opportunities for fire stations to open their doors to the community and attend events with the greatest proven impact.
• To continue to foster community involvement, understanding, and education of the department, the department will strive to increase departmental positive awareness about its Ride Along program.
Agency Partnerships
• Continue to partner with neighboring fire and EMS agencies to improve services and the level of service in a cost-efficient manner.
• Fire department will continue its collaborative efforts with UC Merced, Merced College and Merced Union High School District to provide opportunities leading to invaluable job skills for its students.
• Continue the cooperative relationship with Merced College’s Fire Technology Program and Emergency Medical Care Program to provide an educated recruit base for the fire department.
• Strengthen community relationships to improve infrastructure and enhance resiliency during emergency events.
• Continue to partner with neighboring fire agency to ensure automatic aid and mutual aid services are refined to ensure all community members have access to adequate emergency services while ensuring agreements are fair and equitable.
OBJECTIVES
PERFORMANCE
MEASUREMENT/INDICATORS
1. Promote an environment of
respect, trust, professionalism,
and integrity.
This will be accomplished through
developing peer-to-peer relationships,
professional development, and team
building exercises. Ongoing
2. Promote succession planning to
ensure the sustainability of the
organization with qualified
internal candidates.
This will be accomplished through
developing, training and mentoring
personnel for the next level of
succession. We will partner Firefighter
I/II and Fire Engineer I/II with Fire
Captain I/II (program coordinators) to
have multiple members trained and
knowledgeable in the programs we
administer for seamless transitions
when a member retires, promotes, or is
injured. Fire Administration will work
with all employees to reach this
objective. Ongoing
3. Aggressively research and
identify alternative and stable
funding models to diversify
funding sources.
We will continue to submit applications
to secure grant funding for programs
and equipment to meet the needs of
the department and community.
Ongoing
4. Understand the gaps in
operations and resources as
identified in the Standards of
Cover (SOC) and determine how
best to proceed to improve the
departments operations and
services in the future.
Full implementation of the
recommendations contained in the
SOC would involve a substantial
investment in capital and operating
costs. Therefore, to move towards this
objective, the department will keep city
council apprised of the fire
department’s performance and if
funding becomes available, we will
prioritize which recommendations
should be acted upon first. Ongoing
5. Provide training to City of
Merced personnel consistent
with National Incident
Management System standards.
Conduct training and simulations
for City Staff on the Operations
in the City Emergency
Operations Center (EOC)
This will be accomplished through
simulated tabletop and functional
emergency exercises in the EOC.
Ongoing
6. Amend the Disaster Council
Ordinance to formalize
interagency coordination
protocols with adjacent cities and
Merced County, ensuring that
administrative structures,
communication channels, and
operational procedures are
aligned to support timely,
efficient, and effective City staff
response to emergencies and
critical incidents.
Collaborating with the County and
adjacent cities to develop organized
coordination protocols and then
amending the Disaster Council
Ordinance. Complete by 2027
7. Develop and maintain an
adequate and appropriately
trained support staff for non-
emergency programs, including
prevention, training, and
administration.
Evaluate potential department
efficiencies to meet future and existing
need. Ongoing
Ensure operations are in alignment
with best practices and partner
jurisdictions. Ongoing
Establish favorable policies and
environment for retention and hiring of
staff. Ongoing
Obtain financial resources to meet
needs. Ongoing
8. Collaborate with the new
ambulance provider, AMR to
ensure that the closest and most
appropriate medical responder
provides immediate service to
the customer.
9. Formalize mutually beneficial
partnerships with AMR to ensure
a high level of emergency care is
provided to the citizens of
Merced.
Monitor average response time to
medical emergencies after
implementation of coordinated dispatch
with AMR. Ongoing
Establish mutually beneficial
agreements with AMR to utilize MFD
Firefighter Paramedics to support EMS
response in the community while
ensuring cost for services are
recovered at a fair and equitable
manner.
10. Develop programs to acquire,
maintain and replace equipment,
facilities and vehicles.
Reduce repair costs and preserve the
service life of apparatus through a
program of regularly scheduled
preventative maintenance service of all
pumping and aerial apparatus
performed by an ASE Level 3 certified
mechanic in accordance with NFPA to
reduce repair costs and preserve the
service life of apparatus through a
program of regularly scheduled
preventive maintenance. Ongoing
Identify external funding opportunities
and pursue budgetary efficiencies
through public/private and non-profit
partnerships. Ongoing
Collaborate with Fleet to develop an
effective maintenance and repair
program and a planned apparatus
replacement program. Ongoing
11. Implement sustainability
programs for the acquisition,
maintenance and replacement of
equipment, facilities, and
vehicles.
Identify a projected Vehicle
Replacement program. Ongoing
12. Recruit, develop and retain a
Professional and Diverse
Workforce.
Design preparatory programs to assist
recruit candidates throughout the hiring
process. Ongoing
Create a formalized employee
development program to guide,
counsel, and mentor members seeking
professional development and growth.
Ongoing.
Develop minimum skill requirements
and knowledge for acting positions.
Ongoing
Identify the core competencies of all
department positions to optimize skill
sets. Ongoing
Identify and further enhance training
collaboration opportunities with
community and regional partners like
US Fish & Wildlife, CAL FIRE, Merced
County Sheriff’s, Merced College, etc.
Ongoing
13. Maintain or improve upon the
Class 2 rating through the
Insurance Service Office (ISO).
Ensure resources are strategically
placed to minimize response times.
Ongoing
Increase the effective firefighting force
to incidents. Ongoing
Ensure records and resources meet
the requirements. Ongoing
Improve firefighting training. Ongoing
Support call center handling. Ongoing
Test and support maintenance of water
distribution. Ongoing
Increase number of fire stations.
Ongoing
2026-2027 BUDGET HIGHLIGHTS
Our continued success is contingent upon our ability to anticipate and respond to shifting operational and fiscal conditions. A key factor is the scheduled expiration of the $8.9 million SAFER grant in March 2027. In preparation, we are working closely with the City management team to identify sustainable funding strategies and service deliver options that will maintain performance amid rising call volumes. This planning is especially critical as we expand ALS capabilities to all five fire stations further elevating service expectations and resource needs across the department.
Due to age of equipment and facilities, from fire hose to Firehouse, a continued emphasis on an equipment and facility replacement plans must be implemented to ensure that the department has the necessary resources to meet the City Council’s priority of Public Safety.
During this fiscal year, the Department will continue to promote professionalism, efficiency, integrity, and safety to its members while providing excellent service to the citizens of Merced while being mindful of public health restrictions. Our primary focus was to promoting safety through prevention efforts. We work ed with businesses during inspections and the permitting process to ensure a safe work environment for those working and shopping in our community. We will continue to work in conjunction with the school districts, educating the children in fire prevention measures through creative and interactive lesson plans. The Department will continue to reach out to the citizens of Merced by partnering with Red Cross and our CERT team to install smoke alarms and carbon monoxide alarms in residences. We will provide emergency services efficiently and effectively. The Department will work diligently to provide the highest level of service while remaining fiscally responsible. The Department will continue to promote education and training to ensure its members are highly trained and in a state of readiness to meet the needs of the community.
MEASURE “C” FUND-PUBLIC SAFETY, FIRE
FUND NOs. 2001 & 2030
DIVISION NO. 3000
PROGRAM
Measure C Fund accounts for one-half cent new transactions and use taxes effective July 1, 2024. The Measure was approved by area voters. Divis ion 3000 is used for the Fire Department related expenditures from the revenues.
MEASURE “Y” 20% FUND-PUBLIC SAFETY, FIRE
FUND NO. 2003
DIVISION NO. 3000
PROGRAM
Measure Y Fire 20% Fund accounts for taxes associated with commercial cannabis business within the City limits. Measure Y was approved by area voters on June 5, 2018.
This fund is used for the Fire Department related expenditures from 20% revenues plus any amount of the 40% discretionary revenues as directed by City Council. Related expenditures consist of equipment and supplies to support fire department.
MERCED POLICE DEPARTMENT
FUND NOS. 1000, 2700-2704, 1019, 2002, 2030, 4503, 5004 DIVISION N OS. 3500-3570
DESCRIPTION
The Merced Police Department provides public safety services to the residents of, and visitors to, our community.
Our VALUES: To be a caring, compassionate, dedicated, professional, courageous, ethical and community-focused agency.
Our MISSION: To improve the quality of life for all citizens of Merced.
Our GOALS:
1. To reduce crime and improve the quality of life in Merced.
2. To develop a high performing organization through succession planning and leadership development.
3. To continually invest in our community relationships.
Our VISION: In partnership with the community, we will be a leader in intelligence policing, providing exceptional police service to our citizens.
OUR FOUNDATION FOR SUCCESS:
We will work hand-in-hand to develop public and private partnerships to better serve our community through:
• Building trust
• Developing community relationships
• Listening to concerns
• Working towards a safer community
How we will succeed:
The Merced Police Department will be a leader in intelligence-led policing, using data- driven real time crime statistics to best utilize our resources. We will continue our efforts to become more efficient in our deployment, understanding the needs of our community. The Merced Police Department will remain steadfast in its commitment to professionalism and compassion in serving our great community.
POLICE DEPARTMENT
Goal #1: Reduce Crime and Improve the Quality of Life in Merced Objective:
• Proactive deployment of resources
• Utilize technology to maximize efficiency
• Utilize education to assist in crime reduction
• Relentless pursuit of criminal activity
Goal #2: Develop a High Performing Organization through Succession Planning and Leadership Development
Objective:
• D evelop future leaders in the organization
• Enhance organizational health and wellness
• Hire the right people
• Strive to be trusted, and accountable
Goal #3: Continually Invest in Our Community Relationships.
Objective:
• Increase community trust
• Increase public and private partnerships
• Invest in our youth and the next generation
• Work collaboratively with our community to provide for a safer Merced
Our EXPECTATIONS:
TO BE:
• An example of professionalism
• Safe, always remembering our training and best practices • Part of the team no matter where you sit in the organization • Invested in our community and its youth
• Willing to treat everyone like a member of your own family
TO SEE:
• The vision of where we want to go as an agency
• How we can best forward our mission together
• How we can always be looking to improve
• How we can continually look for opportunities to engage with our community
TO SHOW:
• Others respect and kindness, treating every encounter as an opportunity. • Service over self
• Courage in action
• Our citizens, our full potential
POLICE DEPARTMENT
GOALS
Goal #1: Reduce Crime and Improve the Quality of Life in Merced
• Reduce property crimes by 10%
• Install Cameras in 2 more parks to include CP42.
• Purchase two Camera Trailer one to each area command. • Conduct 5 ABC/Tobacco compliance checks.
• Expand our Red-Light Camera Program
• Reduce traffic accidents by 5%
• Reduce gang related crime by 10%
Goal #2: Develop a High-Performing Organization Through Succession Planning and Leadership Development
• Bring at least two training opportunities to Merced.
• Redesign our testing and hiring process.
• Have our SWAT/ BOMB teams train with neighboring agency with new Vehicle. • Expand our K9 Team.
• Send at least 3 Sergeants to SLI.
• Bring an Interview and Interrogation School to Merced • Send two supervisors to HNT command School.
• Conduct one Full Uniform Department Inspection.
Goal #3: Continually Invest in Our Community Relationships
• Conduct one Police Town Hall
• Conduct two Community Academies and two Spanish Academy plus Hmong. • Expand our RTIC video program.
• Conduct 4 Mobile PD report/communication events (1 in each area) • Conduct two MPD Employee appreciation events.
• Quarterly Breakfast/Lunch with the Police.
• Partner with our PAL for a youth activities event.
• Have officers do walk to school with kid’s events quarterly.
POLICE DEPARTMENT
2026-2027 BUDGET HIGHLIGHTS
For fiscal year 2026-2027 the Merced Police Department will further its commitment to quality policing through the recruitment of the very best candidates available, creating a work environment that supports retention of a well-qualified workforce, and conducting ongoing, quality training that reflects superior policy, practices and philosophies that develop employees throughout their careers.
The men and women of the police department will continue to welcome opportunities to participate in appropriate community outreach activities and events, using those opportunities to engage with community members and visitors in a positive way building trust and fostering an environment of collaboration. The Merced Police Department will strive to be PART of the community they serve and foster relationships through that process.
With any police agency there comes a time when equipment becomes obsolete and needs to be replaced. During the 26/27 budget timeframe the police department handgun platform will reach its ten-year mark which is typically the end of life for a department issued handgun. This budget year the police department is requesting to update our handgun system by making a one-time purchase to replace outdated handguns with updated equipment. Since we still have some value in our current equipment, part of the cost of the upgrade would be offset by participating in a buy-back program where the vendor issues partial credit for old weapons. Acting now to make this essential upgrade to our weapons allows us to take advantage of available credits and will update the department for another ten years.
The Merced Police Department desires to be a leader in intelligence led policing by utilizing state of the art police technology to best maximize our efficiency. In our 26/27 budget we would like to purchase two additional blue light camera trailers. This purchase would allow us to deploy four workable cameras units one for each area of command.
We are requesting to purchase up to ten new police vehicles which will replace old, marked and unmarked police units which have exceeded recommended end of life. We propose replacing five unmarked units, three marked units and two motorcycles.
For the 26/27 fiscal year, the police department is asking to increase our temporary help staff by (3) three Community Service Officers. These CSO’s will be assigned to work Code Enforcement and Community Outreach. Funding these positions will provide a stable level of support for these units and a higher level of service to the community.
This year we are also requesting to add a new budget line that will allow us to address long neglected building maintenance and ADA issues at the Central Police Headquarters. Since a new police headquarters will not be built for several years, it has become increasingly urgent to update paint, carpet, and lighting and to make restrooms
POLICE DEPARTMENT
ADA compliant. We are asking for a reasonable budget to begin making these overdue repairs and upgrades not only for the safety and well-being of our employees, but also for the public who visit our facility.
POLICE DEPARTMENT
MEASURE “C” FUND-PUBLIC SAFETY, POLICE
FUND NOs. 2001 & 2030
DIVISION N O. 3510
PROGRAM
Measure C Fund accounts for one- half cent new transactions and use taxes effective July 1, 2024. The Measure was approved by area voters. Division 3510 is used for the Police Department related expenditures from the revenues. Related expenditures consist of salary, benefits, equipment and supplies to support police officers, sergeants, lieutenants, and clerks.
POLICE DEPARTMENT
MEASURE “Y” 20% FUND-PUBLIC SAFETY, POLICE
FUND NO. 2002
DIVISION N O. 3510
PROGRAM
Measure Y Police 20% Fund accounts for taxes associated with commercial cannabis business within the City limits. Measure Y was approved by area voters on June 5 , 2018. This fund is used for the Police Department related expenditures from 20% revenues plus any amount of the 40% discretionary revenues as directed by City Council. Related expenditures consist of equipment and supplies to support police department.
PUBLIC WORKS DEPARTMENT
“CUSTOMER SERVICE WITH QUALITY CARE”
DESCRIPTION
Through a continuing process of employee involvement, the Public Works Department has adopted the following mission and value statements as a foundation for all of the Department’s activities.
OUR VISION
To be known as an exceptional organization providing a wide variety of essential services to the Merced Community and one another , with the highest level of safety, integrity, selflessness, professionalism, and efficiency.
MISSION
In order to accomplish our vision we are committed to:
◊ Provide exceptional customer service through a unified team of dedicated, professional and selfless employees.
◊ Enhance our quality workforce through training, development and advancement opportunities.
◊ Provide a safe and healthy working, living and growing environment for all.
◊ Build collaborative partnerships with those we serve.
◊ Partner with and support other first responder organizations to address emergency needs (floods, storm and wind damage, major incident traffic control) within the community when they occur.
◊ The Department strives to protect the City’s investment in its infrastructure and public facilities, plan for future improvements to address changing needs, and ensure the health and safety of the community in the most efficient and cost effective manner.
◊ Finally, but not least, working in close concert with achieving the goals and priorities set forth in the City Manager’s fiscal year budget and as well as those set by the Council.
PUBLIC WORKS - ADMINISTRATION
FUND NO. 7000
DIVISION NO . 6000
DESCRIPTION
The Public Works Administration Division provides administrative support to the Fleet, Facilities, Refuse, Streets, Parks, Trees, Water, Storm Drains, Sewer, Water Quality Control, and the Wastewater Treatment Divisions, while providing responsive quality service to the general public.
MISSION
Provide and maintain excellent customer service through strategic planning, budgeting, administrative management, and service support for the Public Works Department. Ensure employee health and safety is maintained, while providing quality customer service to both internal and external customers.
GOALS
◊ Establish a culture and reputation of providing superior customer service to both internal and external customers.
◊ Continue to promote and conduct trainings for a safe working environment for Public Works employees.
◊ Pursue grant opportunities and improve cost efficiency to ensure customers receive the highest level of energy-efficient, environmentally friendly service at the lowest cost when compared to other agencies, both public and private.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Enhance customer relations.
Continue to upgrade and utilize the
Public Works web pages, Merced
Connect application, and Subscribe
Merced feature; providing up-to-date
information regarding operations,
services, and activities. Monitor and
post useful Public Works information
on the City of Merced Public Works
Facebook page.
PUBLIC WORKS - ADMINISTRATION
2. Promote safety in the workplace.
Conduct general and OSHA required
safety training programs for new hires
and annually for all Public Works
personnel, including annual refresher
course of the Injury and Illness
Prevention Program.
Monitor and review both vehicle and
personnel accidents with the Public
Works Safety Committee monthly to
identify causes and implement loss
prevention methods.
Hold “All-Hands” safety training
meetings once quarterly.
Promote workplace safety through
coordination with the Risk Management
Authority by hosting and/or attending
risk management training events. Host
one RMA event per year.
3. Provide appropriate training
opportunities consistent with the
needs of the Administration staff.
4. Collaborate with Engineering to
identify areas where Public Works
Standards need revision.
Maintain Standard Operating
Procedures Manual to aid in training
Administrative staff. Revise and add
procedures as needed.
Review standards, which apply to
Public Works, annually and coordinate
needed revisions with Engineering
Department.
5. Utilize Tyler Software for financials
and Public Works asset
maintenance/work order system.
Continue to utilize the Tyler software
for entry of contracts, requisitions,
processing of invoices and inventory
items, as well as for entering work
orders for Public Works staff and
tracking of assets maintained by all
Public Works departments.
PUBLIC WORKS - ADMINISTRATION
2026/2027 BUDGET HIGHLIGHTS
Customer service is a high priority of the Public Works Administrative staff. The Merced Connect application, which offers residents a means to report potholes, illegal dumping, and other related Public Works concerns, has been replaced with an application in the newly implemented Tyler software. Administrative staff will continue to utilize the Subscribe Merced notification system to keep the public informed of street closures and water line breaks, as well as useful information related to Public Works programs and goals. Through the use of our Facebook page, Merced Connect, and Subscribe Merced, Public Works Administrative staff will continue to provide prompt and courteous customer service for the increased service demand throughout the upcoming 2026/2027 year.
STREET AND STREETLIGHT MAINTENANCE
FUND NO. 3001
ACCOUNT NO. 6 015
DESCRIPTION
The Street and Streetlight Maintenance Division performs all necessary maintenance and repairs to all C ity infrastructure located within the City’s public right-of-ways, to include C ity streets, alleys, sidewalks, curb and gutters, street lights, traffic signals, signs, and pavement markings.
MISSION
Perform all maintenance with a high level of professionalism and quality, ensuring the City’s infrastructure is maintained in a safe, reliable, and consistent manner.
GOALS
◊ Ensure our street and sidewalk work orders are inspected, repair ed, or preventive maintenance is performed in accordance with best management practices, as revenue and staffing are available.
◊ Continue to implement new procedures, private contracts , and technologies to enhance the efficiency and productivity of the division that will provide the highest level of customer service and minimize costs.
◊ Continue management and assist Street Sweeping Division with the annual leaf collection program.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue ongoing Street
Maintenance Program to maintain
street integrity through an
aggressive inspection and
replacement program.
Replace 1 0,000-sq. ft. of asphalt ,
utilizing City forces, weather permitting
and staff availability, by June 20 27.
Contingent on availability of funding.
Fill potholes within two working days of
being reported or work order creation .
Aggressively inspect streets weekly for
potholes on major streets.
Work closely with the Engineering
Division on capital improvement
projects t o ensure all aspects of plans
are addressed prior to construction.
STREET AND STREETLIGHT MAINTENANCE
2. Continue Sidewalk Maintenance
Program to remove tripping
hazards, using City forces and
private contractors.
Grind 500 trip hazards by June 2027.
Remove and replace trip hazards
utilizing the SB1 Sidewalk
Replacement Program.
Replace temporary patches du e to
utility cuts in streets , asphalt repairs as
weather conditions permit.
3. Continue Traffic Signal and
Streetlight Maintenance Program.
Continue 2-hour maximum response to
reported traffic signal problems and 48-
hour maximum response time to
reported streetligh t outages. Tracking
of completed tasks through current
work order system and ESRI
Enterprise GIS.
Continue to research technological
improvements to determine how they
may benefit the C ity’s Traffic Signal
and Streetlight Maintenance Program.
4. Continue Street Signs and Traffic
Pavement Markings Maintenance
Program and MUTCD regulatory
retro-reflectivity standards.
Complete annual repainting of all stop,
centerline, bike lane, and f og line
striping and markings by June 2027.
Conduct annual sign survey and
reflectivity testing to identify ne cessary
repairs or replacements.
Coordinate with Traffic Committee and
Engineering Division
to ensure
completion of all new sign ordinance
changes and requests within one
month of allowed installation date.
5. Coordinate and implement the
Pavement Management System, as
well as continue coordination of
Measure V activities.
Coordinate with Merced County
Association of Governments (MCAG)
and the City Engineering Division to
oversee the Pavement Management
System (PMS) for prioritization of
roadway rehabilitation projects.
STREET AND STREETLIGHT MAINTENANCE
Continue with coordination of Measure
V activities, including roadway repairs,
filling potholes, replacing or ramping
sidewalks, sign repair or replacement,
and signal repair.
2026/2027 BUDGET HIGHLIGHTS
SB1, Measure C, and Measure V add much needed funding to the Street Division, the addition of two maintenance worker positions will allow the Street Division and Engineering Division to address some of the road maintenance/repairs that have been deferred due to lack of funding. The Polara Audible Pedestrian crossing project is to replace 12 signalized intersections with audible pedestrian buttons in order to become ADA compliant.
STREET AND STREETLIGHT MAINTENANCE
MEASURE “C” FUND-PUBLIC WORKS
FUND NO. 2001
ACCOUNT NO. 6015
PROGRAM
Measure C Fund accounts for one-half cent new transactions and use taxes effective April 1, 2006. The Measure was approved by area voters. Account 2001-6015 is used for the public works related expenditures from the collected tax revenues.
STREET AND STREETLIGHT MAINTENANCE
MEASURE “V” FUND-PUBLIC WORKS
FUND NO’s. 2008-2009
ACCOUNT NO. 6015
PROGRAM
Measure V Fund accounts for one-half cent new transactions and use taxes effective April 1, 2017. The Measure was approved by area voters. Accounts 2008-6015 and 2009-6015 are used for the public works related expenditures from the revenues.
STREET AND STREETLIGHT MAINTENANCE
CAPITAL IMPROVEMENT PROJECT FUND
FUND NO. 5005
ACCOUNT NO. 6015
PROGRAM
Funds received from State and Federal services are held in separate fund accounts until projects are awarded, necessitating their expenditure. Project funds are then transferred to the Streets and Signals CIP Fund for project tracking and expenditure.
The revenues are accounted for in separate fund accounts to meet the subventing agencies’ auditing and accounting requirements.
PARKS MAINTENANCE
FUND NO. 1001, 2004, 4504
ACCOUNT NO. 6010 & 4000
DESCRIPTION
The Parks division is responsible for the landscape maintenance of approximately 342 acres of municipal parks, landscaped areas, street medians, athletic fields, and open land areas, while maintaining approximately 19 miles of associated Class I bike paths.
MISSION
Parks Maintenance mission is to enrich the quality of life for Merced citizens and Merced communities. This will be achieved by providing exceptional parks and diverse recreational experiences for all patrons, building community image and sense of place, while preserving and protecting the City's natural resources.
GOALS
◊ Continue providing support to the Parks and Community Services Department and to the public for recreational needs. Improve the health and condition of all public landscape areas throughout the City.
◊ Continue to m aintain a comprehensive herbicide and pesticide application program to sustain the health and condition of landscape areas, parks, and urban forest, while enhancing the usefulness of public facilities and open space.
◊ Collaborate with UC Merced, Merced College, and Community Service groups on beautification projects and public outreach events throughout the community.
◊ Promote health and encourage exercise among residents and visitors by maintaining and upgrading the bicycle and footpath system throughout the City.
◊ Ensure Maintenance D istricts and Community Facility Districts (CFD) are maintained by private landscape contractor(s) as specified by their contract.
PARKS MAINTENANCE
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Irrigation repairs and upgrades
of irrigation controllers, booster
pumps and systems as needed.
Inspect all parks, adhere to
maintenance schedule for clocks,
sprinklers, and pumps.
2. Vegetation and fire reduction
management within the City
utility right-of-ways.
Apply herbicide applications annually, in
response to a customer service request,
or as needed. Work in conjunction with
California Department of Forestry to
manage large vegetation and landscape
areas.
3. Ensure Maintenance District and
CFD landscape areas are
maintained by private landscape
contractors as specified by
contract language.
4. Continue Maintenance District
and CFD tree trimming areas by
private contractors.
Inspect Maintenance District and CFD
landscaping bimonthly to monthly.
Document findings in monthly reports to
contractor and Department Head, as
well as ensuring deficiencies are
corrected within an acceptable period.
Inspect Maintenance Districts and CFD
tree trimming weekly to ensure work is
per contract and
follows ISA best
management practices.
2026/2027 BUDGET HIGHLIGHTS
The replacement of service truck will assist with facilitating timely repairs and upgrades of irrigation systems in parks, street medians, maintenance districts, community facility districts, city facilities, and various projects. Having additional Park workers, would permit the Parks division the ability to have different crews perform more preventive maintenance tasks that are deferred in the CFD’s and MD’s
STREET AND SUBDIVISION TREES
FUND NO. 6002
ACCOUNT NO. 6050
DESCRIPTION
The Street Tree Division is responsible for the maintenance of over 44,000 public trees. The Tree division provides a full range of tree care services throughout the City, including scheduled tree pruning, dead wood removal, mistletoe abatement, stump removal, reforestation, hazard elimination, chemical treatments, and corrective measures, as identified by our tree program , 8 year management plan objectives or by customer requests.
MISSION
To maintain the health and vitality of the urban forest through a comprehensive inspection, maintenance, and reforestation program that is designed to ensure public safety, and provide excellent customer service, while beautifying the City of Merced.
GOALS
◊ Implement new area pruning, continue mistletoe removal, and tree plant/removal programs to maintain the City’s urban forest.
◊ Identify and replant trees that succumbed to the statewide drought.
◊ Respond to emergency tree/limb incidents in a timely manner while maintaining the health and condition of our urban forest.
◊ Coordinate with developers, PG&E , and MID for proper species and placement of street trees throughout the City.
◊ Promote participation in the Arbor Day events involving more schools and public agencies through education and promotion of a healthy urban forest and maintain the Tree City USA designation.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. With the addition of the Urban
Forestry Inventory and Management
Plan, the City will be able to build a
strategy for managing and m aintain
the health and condition of the urban
forest.
Monitor tree trimming (8 year trimming
cycle), mistletoe abatement (ongoing),
stump removal and reforestation
(ongoing), and emergency tree/limb
removal throughout the City, and
provide monthly maintenance reports to
the department.
STREET AND SUBDIVISION TREES
2. Continue responding to emergency
tree/limb incidents in a timely
manner.
Staff assigned to standby duty will arrive
to emergencies within 30 minutes.
Inspect trees for health and condition
when they are pruned, and immediately
correct all tree hazards when found.
When notified of hazards by citizens,
perform inspection within one business
day. When hazard is verified
, take
corrective action immediately.
3. Continue Mistletoe Abatement
Program in conjunction with
implementing new Area Prune
Program and 8 Year Management
Plan priorities.
Continue aggressive preventive
maintenance work on eradicating
mistletoe on all C ity trees, t o be
ongoing.
4. Continue the 8-year Area Prune
Program cycle.
Continue area -pruning program of
approximately 5 ,500 trees per year
utilizing City forces.
5. Promote the benefits of a healthy
urban forest, and maintain Tree City
USA designation.
6. Continue to divert woodchips at
disposal sites that will accept
them at no charge, with all
weather disposal capabilities.
Continue participation in the Arbor Day
event by involving UC Merced, Merced
College, public schools, community
organizations, and public agencies.
Continue to identify strategically
located sites that accept woodchips at
no charge.
2026/2027 BUDGET HIGHLIGHTS
With t he addition of Measure Y funds, Priority 1 tree trimming, and removal identified by the Urban Forestry Inventory and Management Plan, the Trees Division will be able to continue phase t hree and expand the needed City tree maintenance.
PCE CLEAN UP WATER CIPS
FUND NO. 5007
DIVISION NO. 60 00
PROGRAM
Accounts for capital projects related to tetrachloroethylene (PCE) remediation.
MTBE Settlement
FUND NO. 5008
DIVISION NO. 60 00
PROGRAM
Accounts for costs and capital projects related to methyl tert-butyl ether (MTBE) remediation.
RESTRICTED WATER SYSTEM
FUND NO. 6007
DIVISION NO. 60 55
PROGRAM
The Restricted Water System Fund is used to finance all growth-related system improvements funded through water facility charges.
RESTRICTED WATER MAINS
FUND NO. 6008
DIVISION NO. 60 55
PROGRAM
The Restricted Water Mains Fund is used for collection of over sizing components of Water Facility Charges. Refunds are made to the original contributor at such time additional development occurs.
WATER SYSTEM
FUND NO. 6001
DIVISION NO. 6060
DESCRIPTION
The Water Division is responsible for the operation and maintenance of the City’s drinking water production and distribution systems. Each member of the Water Division is an integral part of a professional-grade team that strives to diligently, safely, and efficiently maintain the water system well above the standards set by the State Water Resource Control Board (SWRCB). Every aspect of the system’s quality and reliability is maintained to the highest of standards by well trained, well equipped, highly motivated Water professionals that are ready to respond at a moment’s notice, 24-hours a day – every day of the year.
The production system consists of 21 ground water pumping sites. Each site can produce over 1,500 gallons per minute. The system regularly pumps 35 million gallons per summer day, dropping to about 12 million gallons per winter day. The City of Merced’s population of nearly 100,000 has an annual average demand of almost 7 billion gallons, meeting the residential, commercial, industrial, and irrigation needs of Merced.
The distribution system consists of nearly 500 miles of water mains that range in size from 6” to 16” in diameter. The distribution system includes over 3,000 fire hydrants, 7,000 main line valves, over 2,500 backflow devices, and over 25,000 metered service connections. Each meter has a Badger “Beacon” register that is monitored through a cellular transmission to a CLOUD based system known as Eye On Water. This system allows the customers and City staff to monitor flow data automatically.
The Water Division must also meet the State’s compliance requirements concerning water quality and supply assurance. A heavy regiment of source sampling and reporting coupled with active cross-connection protection and a robust conservation program are used to ensure the continued quality and availability of drinking water for the City of Merced. Sampling and reporting are performed 100% “in house” by specially trained and certified professional Water Staff. In compliance with the State’s Cross Connection Control Policy Handbook, City water has developed a Cross Connection Control Plan that is administered by the Cross Connection Control Specialist and the dedicated 2-man Backflow Technician team. Conservation is promoted, monitored, and enforced by the Conservation Specialist. Each of these dedicated professionals do their part to keep the City of Merced Water System compliant with all applicable Federal, State, and Local regulations.
MISSION
To provide the City of Merced with a continuous supply of safe and aesthetically pleasing drinking water, as efficiently as possible, while promoting conservation.
GOALS
◊ Monitor the drinking water system through a comprehensive sampling, testing, and reporting program to meet Federal, State, and Local regulatory requirements.
◊ Explore the feasibility of implementing new procedures and technologies to enhance the efficiency and productivity of the division, while providing the highest level of customer service and water system security.
◊ Promote and ensure water conservation measures through projects, public education, notifications, and water metering advantages.
◊ Continue the successful crew rotation system that has greatly increased Water Technician skills and understanding of the entire water system, as well as a noticeable improvement in morale.
◊ Look for tools and opportunities to reduce unmetered water loss.
◊ Continue to collaborate with the Merced Irrigation-Urban Groundwater Sustainability Agency (MIUGSA) and Integrated Regional Water Management Plan (IRWMP) to prepare and facilitate compliance with the Sustainable Groundwater Management Act (SGMA).
OBJECTIVES PERFORMANCE
MEASUREMENT/INDICATORS
1. Valve exercising and water main
flushing program.
Maintain water quality, improve mapping,
and improve well balance.
2. Cross connection control.
Comply with the State of California Cross
Connection Control Policy Handbook.
WATER SYSTEM
3. Source water protection /
contingencies.
Acquire land for surface water treatment
plant and future well sites in strategic
locations, as set forth in the Water Master
Plan. Working through the SGMA
framework.
4. Conservation.
Comply with State mandates concerning
water use and conservation. Continue to
aggressively engage in public outreach
and education.
5. Customer Service.
The Public Works/Finance Liaison and
dedicated Public Works Admin greatly
enhance the Water Division’s primary
focus on customer service.
2026/2027 BUDGET HIGHLIGHTS
Production: Con tinue the Well Assurity Program to maintain optimal performance of existing Wells. Prepare for system expansion into areas of growth.
Distribution: C
ontinue main line replacement program. Develop NO DES mainline flushing route. Prepare for system expansion into areas of growth.
Water Supply A
ssurance: Monitor and plan for extreme drought conditions by actively participating in applicable basin programs. Participate in Integrated Regional Water Management and Sustainable Groundwater Management Act compliance. Work with Merced Irrigation District (MID) to change some parks to surface water irrigation.
Continue to foster a citywide culture of conservation.
WATER SYSTEM
WASTEWATER/SEWER SYSTEM
FUND NO. 6000
ACCOUNT NO. 6065
DESCRIPTION
The Wastewater Sewer Division’s Mission, Goals, and Objectives described below, covers the period from Fiscal Year 2026-27. The document will ensure the Division is working toward the cost-effective collection and maintenance of the infrastructure consisting of 21 Sewer Lift Stations and over 287 miles of pipe ranging from 4 inch to 48 inches. The Wastewater Sewer system conveys an average dry weather flow of approximately 7.12 million gallons a day (MGD) from homes, businesses, institutions, and industry to the City of Merced Wastewater Treatment Facility.
MISSION
To protect public health and the environment through the safe, reliable, and cost- effective collection and conveyance of wastewater for treatment at the Wastewater Treatment Plant.
GOALS
The City Goals supports its Mission and establishes a foundation for achieving its vision.
◊ Maintain our infrastructure by completing our annual comprehensive sewer line inspection, repair, and preventive maintenance program elements.
◊ Continue to explore the feasibility of implementing new procedures and technologies that will foster the efficiency and productivity of the division.
◊ Comply with the Sewer System Management Plan (SSMP) to reduce back- ups and have zero reportable overflows, as required by the State of California.
◊ Enhancing safety and development of team members’ skills that will provide exceptional customer service.
◊ Continue GIS integration of sewer assets with the use of iPhones, iPads, and GIS Trimble unit for live real time updates.
◊ Meet all five goals while remaining within the budget.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue Sewer Trunk and Main
line Inspection program to identify,
and repair deteriorating conditions.
Hydro Flush and Closed-circuit video
inspect 14 miles of Sewer main lines.
2. Ensure new sewer line construction
meets City design standards and
provide a benchmark for future line
condition comparison.
Contractor will video all new sewer line
construction. All new construction is
video inspected and evaluated for
compliance with the city standards by a
city employee before any sub-division
roads are paved. All inspection logs are
recorded, and a video log printout is
submitted to Engineering/Inspection
Services. Inspections will be performed
within one week of notification from
Inspection Services.
3. Continue to be environmentally
conscious protecting the public
against sewage backups/overflows.
City to foster the State mandated Sewer
System Management Plan (SSMP).
Continue training in rapid response
program with 24-hour response
availability, as per the Emergency Spill
Response Plan. In-
house training to be
conducted twice a year. Throughout the
year, the crew will be sent to an outside
vendor for training.
4. Support Sewer System
Management Plan (SSMP)
implementation to meet General
Waste Discharge Requirements
(GWDR).
Preserve and monitor appropriate
SSMP maintenance and operation
program and reporting procedures.
Reportable sanitary sewer spills
(SSSs) are reported monthly, or as
required. Continue to keep reportable
SSSs to zero.
5. Continue sewer line flushing, root
cutting, foaming and grease
removal; flush all restaurant trunk
lines on a regular scheduled
monthly maintenance rotation.
Hydro-flush 300 miles of city mains
biennially. Hydro-flush 32 sewer
enhanced areas
(restaurants/apartment complexes)
monthly, 7 every other month, and 1
SEA quarterly. Grease and root buildup
will be kept at a minimum resulting in
maximum capacities to be always
maintained.
WASTEWATER/SEWER SYSTEM
6. Identify Capital Improvement
Projects necessary to upgrade the
City’s aging sewer infrastructure.
Continue routine sewer pipe main line
assessment including video and visual
inspection. Observations and
documentation to catalog the sewer
infrastructure and prioritize areas
needing improvement. Observations
would include offset joints, cracks,
chips, wall scaling, deterioration, and
overall condition.
7. Remove and replace West Avenue
sewer main south of Heritage Drive.
Remove and replace 7,200 feet of
sewer main. Project to be completed by
June 2027.
8. Remove and replace 12th / 13th alley
sewer main between MLK and
Canal Street.
Line 225 feet of sewer main. Remove
and replace 700 feet of sewer main.
Project to be completed by June 2027.
9. Remove and replace Kibby Road
sewer main between Gerard
Avenue and Childs Avenue.
Remove and replace 2,700 feet of
sewer main. Project to be completed by
June 2027.
10. Build geo database of assets to
include attribute information for
continued routine inspections and
State reporting.
11. Replace pumps at R street lift
station.
Sewer GIS data to be checked for
accuracy. Current data is about 92%
and planned inspections to improve
accuracy by 3% in FY 2026/2027.
Remove and replace pumps and
valves at the San Francisco ave lift
station. Put in new chopper style
pumps. Project to be completed by
June 2027.
2026/2027 BUDGET HIGHLIGHTS
Sewer System Management Plan (SSMP) adopted by Council requires more stringent legal authority, design provisions, operations and maintenance practices, and emergency overflow response and spill reporting procedures.
Maintain Sewer Lift station pumps, valves and SCADA system ensuring reliability. Scrutinize preventative maintenance efforts of 21 sewer pump stations weekly to ensure reliable operation.
WASTEWATER/SEWER SYSTEM
STORM DRAINS
FUND NO. 6000
ACCOUNT NO. 6080
DESCRIPTION
The Wastewater Sewer/Storm Division operates and maintains the City’s storm drainage conveyance system. The storm drainage system consists of 148 miles of underground storm drain lines, 58 storm drain pump stations and 52 detention ponds totaling 143 acres. The crew maintains 3,684 storm drain catch basins, and 130 Storm drain pumps. The system is designed to reduce flooding in the community.
MISSION
The City’s strategic plan to protect public health and the environment for the community it serves through, scheduling, maintenance, and repair, as required by Federal and State laws through City Ordinance, Municipal Separate Storm Sewer Systems (MS4), and the National Pollutant Discharge Elimination System (NPDES) requirements.
GOALS
◊ Ensure an uninterrupted storm drain inspection, repair, and preventative maintenance program in accordance with NPDES and MS4 storm water permit objectives.
◊ Continuously improve the implementing of new procedures and technologies to enhance the efficiency and productivity of the division that will provide the highest level of customer service and efficient operation.
◊ Continue storm drain main line closed-circuit television (CCTV) inspection program to identify deteriorating conditions, including storm drain mains, laterals, and culverts using CCTV and hydro-flush television equipment.
◊ Continued GIS integration of storm assets with the use of iPads and Trimble data collecting for live real time update.
◊ Preserve collected data of installed storm drain catch basin markers.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Hydro-flush and clean storm drain
system, as identified by the
inspection program.
Hydro-flush 10 miles of City mains
annually and 45 enhanced areas as
needed. Grit, debris, and root buildup
will be kept to a minimum, resulting in
maximum flow capacities to be always
maintained.
2. Maintain storm drain catch basins
and continue to collect data to
update our records.
Prepare for any storm event by
cleaning a minimum of 1000 storm
drain catch basins annually including
46 storm catch basins in enhanced
areas.
Monitor storm water basins, being extra
vigilant through leaf collection season
(November through January) to ensure
leaves and debris will not be allowed to
accumulate at storm drain catch
basins, which would result in water
backing up in City streets or private
property.
3. Maintain weeds around all storm
drain sites, including retention
basins, drainage ditches, roads,
and pump sites. Ensure 18 miles of
creeks continue to flow without any
blockages.
Herbicide applied as needed (3”
maximum growth); thereby, mitigating
weed growth. Excessive growth is
removed before becoming a fire hazard
and inhibiting free flow of storm water.
Staying within MS4 guidelines,
preventing application of chemicals
during irrigation or within 48 hours of
predicted rainfall with greater than 50%
probability, as predicted by NOAA.
Develop and implement a program to
prevent or reduce the amount of
pollutant runoff from storm drain
operations through implementation of
best management practices (BMPs).
STORM DRAINS
4. Optimize the efficiency of storm
water system pumps and valves.
Monitor preventative maintenance and
operation of 130 storm pumps and
valves thereby, alleviating pump and
valve malfunctions.
5. Implement control program for West
Nile Virus.
46 storm ponds shall be pumped down
immediately following a storm event,
not allowing for any standing water to
settle into storm pond basins. Standing
water and/or debris is removed from
the storm drain catch basins and
bubble-ups. Potential breeding sites
are removed, which in turn will control
the outbreak of West Nile Virus.
Coordinate mosquito control and West
Nile Virus efforts with Merced County
Mosquito Abatement District. Mosquito
Abatement District shall implement
their annual altosid and vecto-lex
monthly pellet applications from May
through October. Applications are
scheduled to avoid overlap with the
City’s 21 storm drain catch basin
cleaning areas.
6. Support City Engineer in the
implementation of Storm Water
Management Program (SWMP) to
meet Phase II NPDES permit
requirements.
Track program success using
performance indicators such as: public
education and outreach, public
involvement, Illicit Discharge Detection
and Eliminations (IDDE); construction
site run off control; post-construction
run off control; and pollution
prevention/good housekeeping
contained within the SWMP.
STORM DRAINS
7. Ensure new storm drain line
construction meets City design
standards and provide a benchmark
for future line condition comparison.
Contractor will video all new storm
drain line construction. All new
construction is video inspected and
evaluated for compliance with City
standards by a City employee
immediately after completion of the
project. All inspection logs are
recorded, and a video log printout is
submitted to Engineering/Inspection
Services. Inspections will be performed
within one week of notification from
Inspection Services.
8. Optimize accuracy, scope, and data
utilized to maintain storm drain
infrastructure.
Continue routine pipe assessment,
including video and visual inspection
observations and documentation to
catalog the storm drain infrastructure
and prioritize areas needing
improvements. Observations will
include offset joints, cracks, chips, root
intrusion, and overall condition.
9. Service for Community Facility
Districts (CFD) and Maintenance
Districts (MD).
Service for CFD’s and MD’s that are
not fully developed or funded continues
to be a challenge. Storm drain basin
weed control and storm drainage
cleaning will not be as frequent in these
areas. Pumps will be maintained with
available funding. Only excessive
growth will be removed as needed to
reduce fire hazard and allow free flow
of storm water. Herbicide will be
applied before excessive weed growth
occurs, and storm drainage cleaning
will be done while rotating through the
City’s designated areas 1 through 21.
Maintain spraying events within MS4
guidelines.
STORM DRAINS
STORM DRAINS
10. Ensure effective BMPs for
preventing or reducing the amount
of storm water pollution generated.
Track BMP success using performance
indicators such as: evaluation of
pesticides, herbicides, and fertilizers
use; rodent and subsequent erosion
control; installation of trash racks and
filtration separation drainage systems.
11. Remove and replace Black Rascal
Creek culvert at Cherokee Avenue.
Remove and replace 225 feet of creek
culvert. Project to be completed by
June 2027.
12. Build geodatabase of assets to
include attribute information for
continued routine inspections and
state reporting.
13. Reinforce the perimeter of pond
basins to eliminate bank erosion.
Storm Drain GIS data to be checked for
accuracy. Current data is
approximately 70% and planned
inspections improve accuracy by 5% in
FY 2026/2027.
Continue to purchase 4-8” drain rock
and Waddles to protect the pond
embankments.
2026/2027 BUDGET HIGHLIGHTS
Critical maintenance for storm drainage facilities, implementation of the Storm Water Management Plan (SWMP), and compliance with the MS4 National Pollutant Discharge Elimination System (NPDES) Phase II Permit. The Municipal Separate Storm Sewer Systems (MS4) permit and requirements will have significant impact on expenditures.
Update deteriorating infrastructure to current engineering standards and meet MS4 goals.
Continue to record the maintenance and historical data of the storm drain system through the GIS online database.
WASTEWATER TREATMENT FACILITY
FUND NO. 6000
DIVISION N O. 6070
DESCRIPTION
The Wastewater Treatment Facility (WWTF) is recognized as the City of Merced’s largest capital asset. Investment in this facility resulted in a treatment process that meets Title 22 drinking water quality standards for effluent and recycled water. As of November 31, 2025, the WWTF treated 2.31 billion gallons of water, removed 6.11 million pounds of Biochemical Oxygen Demand (BOD) material, and 5.92 million pounds of Total Suspended Solids (TSS), while achieving 100% National Pollutant Discharge Elimination System (NPDES) permit compliance. This superior level of treatment prevents pollution of our community’s waterways and benefits downstream users.
MISSION
Our mission is to protect public health, the environment, and Merced’s vital water resources by delivering the highest achievable level of wastewater treatment. We are committed to using advanced instrumentation, data- driven analysis, and optimized process control to ensure exceptional water quality and operational efficiency. With a team of qualified and well -trained professionals, we strive to preserve, enhance, and restore our community’s water resources while maintaining full compliance with all State and Federal regulations.
GOALS
• Maintain compliance with the National Pollutant Discharge Elimination System (NPDES) permit and Waste Discharge Requirements (WDR).
• Operate and maintain facilities in a safe, efficient, and professional environment.
• Research new technologies to improve efficiency to maintain compliance.
• Provide and promote employee training to increase staff knowledge and maintain required certifications.
• Provide comprehensive support to the wastewater treatment process through high-quality mechanical, electrical, instrumentation maintenance and repair services.
WASTEWATER TREATMENT FACILITY
• Ensure all plant and lift station equipment is routinely inspected, serviced, and maintained to promote safe, efficient, and reliable operation. • Perform timely replacement of hydraulic rams, UV lamps, and other components of the UV disinfection system, as well as conduct all associated preventive maintenance to ensure optimal system performance.
• Replace outdated variable frequency drive (VFD’s). Update the dissolved oxygen probes and aeration basin monitoring to the newest technology.
• Provide certified laboratory results for operational control and monthly compliance with the State under Title 22, 40 CFR, and NPDES requirements.
OBJECTIVES PERFORMANCE
MEASUREMENT/INDICATORS
1. Execute process control benchmarks
to maintain compliance.
Produce exceptional water quality that
results in 100% effluent compliance with
National Pollutant Discharge Elimination
System (NPDES) discharge limitations.
2. NPDES Permit Special Studies
Coordinate studies for CV-SALTS salinity
minimization and nitrate control programs.
3. Identify potential impacts to treatment
processes during Phase VI
construction and determine solutions
to minimize impacts.
Coordinate with engineers to determine
the most critical path for sustaining
wastewater treatment compliance. Work
with contractors to prevent interruptions to
plant processes during construction.
4. Provide in-house and external training
opportunities.
Seek out private consultants and
manufacturers to provide ongoing
technical training, and encourage
participation in professional organizations
to expand educational opportunities.
5. Support current sewer lift station
operation and oversee construction of
new sites.
Continue to support collections in
maintaining sewer lift station operation.
Replace aging dry well/wet well stations
with safer submersible pump stations.
WASTEWATER TREATMENT FACILITY
6. Provide Laboratory support to Water
and Wastewater Divisions.
Maintain all necessary elements to satisfy
Environmental Laboratory Accreditations
Program (ELAP/TNI) and certifications.
This includes four fields of testing for
inorganic chemicals and microbiology for
both drinking water and wastewater.
Maintain annual equipment calibration
services including the DI water system
service contract and upgrades to comply
with new regulations and improve
efficiency.
7. Participate in proficiency testing
annually.
Perform the annual water supply and
water pollution studies as required for
ELAP certification renewal. Add new blind
study using certified materials to
document staff initial and annual training
IDOC/ initial demonstration of capabilities.
8. Continue improving methods to
comply with the National
Environmental Laboratory
Accreditation Conference (NELAC).
Use a laboratory information management
system (LIMS) to manage and track lab
results for compliance audits and monthly
reporting. Invest in staff training to ensure
they can effectively use the new system.
Contract an Onsite Assessment (OSA)
per a new NELAC requirement.
9. Develop and support reduce,
recycled, and reuse efforts.
10. Update PLC legacy equipment.
Provide recycled water for land-
application irrigation and for use in the
wildlife management area.
Install the latest PLC hardware and
operating software for all processes
across the plant. Provide training for
personnel so they can access and modify
the new software associated with the
updated PLC controllers.
WASTEWATER TREATMENT FACILITY
2026/2027 BUDGET HIGHLIGHTS
Continue design efforts for the future Phase VI plant expansion, along with replacing failing lift stations and upgrading them to wet-well style pump stations. Perform maintenance on critical process equipment, including preventative maintenance on centrifuges and required servicing of blowers. Replace deteriorating Ferric Chloride and Sodium Hypochlorite chemical tanks to ensure safe and reliable operations. Upgrade laboratory equipment to support increased capacity and meet enhanced regulatory requirements, including acquiring a new furnace for total solids testing and percent removal, installing a new rotary evaporator to improve volatile acid analysis for monitoring the two-digester system, and replacing outdated instruments with a new VIS spectrophotometer for Nitrite and COD analysis.
WATER QUALITY CONTROL
FUND NO. 6000
DIVISION N O. 6075
DESCRIPTION
The Water Quality Control Division (WQCD) provides the programs necessary to adequately protect the Publicly Owned Treatment Works (POTW), the City of Merced employees, the community, and the surrounding environment through monitoring and regulation of discharges to the sanitary sewer and storm drain systems.
MISSION
To protect the POTW, employees, the public, and the environment through coordinating and implementing wastewater and storm water pollution control programs, as required by Federal and State laws through City ordinance. To ensure compliance of these laws by the City of Merced, its residents, and dischargers regulated by the City.
GOALS
• Ensure compliance with the National Pollutant Discharge Elimination System (NPDES) permit requirements for the Wastewater Treatment Plant (WWTP) through a monitoring and reporting program.
• Monitoring the quality of industrial discharges to the POTW by the implementation of the Industrial Pretreatment (IPT) program which includes permitting, monitoring, inspecting, and reporting.
• Work with the Merced County Division of Environmental Health (MCDEH) to ensure compliance of septic waste haulers through permitting and monitoring of discharges to the WWTP.
• Maintain the Fats, Oils and Grease General Wastewater Discharge permit program through monitoring, inspecting, and reporting Food Service Establishments (FSEs). Educating FSEs on how to handle kitchen cleanups and spills while executing Best Management Practices (BMPs), training staff, and reporting.
• Maintain the Municipal Separate Storm Sewer System (MS4) Phase II permit program through interdepartmental coordination, implementation of storm water Best Management Practices (BMPs), training, monitoring, and reporting.
• Provide public education and outreach of pollution prevention programs to promote the local FOG ordinance and fulfill MS4 requirements.
WATER QUALITY CONTROL
• Work with Water Department staff to ensure compliance with the State of California’s Drinking Water Program through sampling and reporting.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. WWTP compliance monitoring and
reporting per the NPDES permit
requirements.
Implement NPDES Monitoring and
Reporting Program. Complete sample
and meter monitoring of various
monitoring points throughout the
WWTP and submit monthly, quarterly,
semi-annual, and annual discharge
monitoring reports to the Regional
Water Quality Control Board (RWQCB)
and the Environmental Protection
Agency (EPA) via the California
Integrated Water Quality System
(CIWQS). A new permit will be issued
in 2026 with updated monitoring and
reporting requirements.
2. Operate EPA approved IPT
Program per the Merced Municipal
Code (MMC) 15.24 and Federal
Regulations 40 CFR 403.
Annually review EPA pretreatment
program regulations and apply any
changes or corrections to the program.
Regularly review incoming
businesses/industries for potential
discharges to the POTW. Permit,
inspect, monitor, and report on new
and existing industrial dischargers.
Complete and submit annual IPT
reports to the EPA and RWQCB via
CIWQS.
3. Enforce the FOG Program General
Wastewater Discharge permit
requirements per Merced Municipal
Code 15.30.
Permit new and existing Food Service
Establishment (FSE) wastewater
dischargers. Enforce FOG ordinance,
kitchen Best Management Practices
(BMPs) requirements, and grease
interceptor maintenance to minimize
the introduction of fats, oils, and grease
into the sanitary sewer system.
WATER QUALITY CONTROL
4. Continue State Water Resource
Control Board (SWRCB) MS4
Phase II permit requirements.
Coordinate with all City of Merced
departments to assure proper
monitoring, BMP implementation, and
documentation for storm water pollution
prevention measures. Continue to
investigate illicit discharges. Complete
and submit annual reports and other
required submittals to the Water Board
via the Storm Water Multiple
Applications and Report Tracking
System (SMARTS). Continue
subsequent On-Land Visual Trash
Assessments for Priority Land Use
areas. Implement the Central Valley
Water Board approved Pyrethroid
Management Plan for control of
pyrethroid discharges to local receiving
waters per the San Joaquin River
Basin Plan Amendment. Continue
education and outreach requirements.
5. Support Collections Division in
meeting General Waste Discharge
requirements (WDR) regulated by
the SWRCB.
Enforcement of the FOG and IPT
program requirements, investigation of
incidents that affect the sewer and
storm drain systems, and public
outreach campaigns (i.e. Don’t flush
“flushable wipes”, “Can it, Cool it, Bag
it, Trash it” and “Only Rain Down the
Storm Drain”)
6. Continue groundwater monitoring
program through well application,
permitting, and inspection
processes per CA State Standards
and the MMC on well installations
and destructions.
Review and process well permit
applications for well installations,
destructions, and soil borings. Perform
grout inspections and obtain reports
from remediation sites for historical
archives.
7. Ensure septic hauler business
operational compliance with
MCDEH requirements and the
Merced Municipal Code.
Work with MCDEH in the septic hauler
waste discharge permit process and
monitor waste discharges through
periodic sampling events.
WATER QUALITY CONTROL
8. Assist Airport staff with managing
the City of Merced Industrial Storm
Water Permit.
9. Contract with Laboratory Services
to analyze samples taken for the
NPDES, IPT, MS4, PCE
Groundwater Project and Municipal
Drinking Water Programs for FY
24/25 through 26/27.
10. Maintain the City of Merced
Drinking Water Monitoring program
Coordinate with Airport staff to monitor
for Qualified Storm Events and, in turn,
collect storm water samples when
required. Once construction of new
terminal is complete, work with hired
consultant to develop a new Storm
Water Pollution Prevention Plan
(SWPPP) and Monitoring Plan. Keep
up to date with permit requirements
and submit sample and monitoring
reports to the California Stormwater
Multiple Application and Report
Tracking System (SMARTS).
Coordinate with the WWTP, WWTP
Lab, the Water Division, and the
Environmental Project Manager for
sampling needs to prepare an RFP for
Contracted Laboratory Services.
Coordinate with the Water Division staff
to organize sample events at all
drinking water wells that service the
City, as well as, at the Wastewater
Treatment Plant per the State Water
Board’s drinking water monitoring
schedule. Keep up to date with new
regulations and constituents of
concern. Annually, sample and gather
drinking water data for the Consumer
Confidence Report (CCR) which
informs residents of the quality of their
drinking water.
2026/2027 BUDGET HIGHLIGHTS
The NPDES permit requires personnel to continue weekly, monthly, quarterly, semi-annual, and annual sampling, monitoring, and reporting. The current permit expired May 31, 2025, but continues to be the current regulations until the Regional Water Board issues the new permit, expected in February 2026 with revised requirements. Staff will review those requirements and make adjustments necessary to the monitoring program for continued compliance.
The IPT Program is sustained by current rates and WQCD staff annually updates industrial sewer rates for permitted industries that operate and discharge within City limits.
WATER QUALITY CONTROL
The FOG Program requires personnel to monitor, enforce, permit, and inspect new and existing Food Service Establishments for proper handling and disposal of cooking waste. The WQCD is implementing a cloud-based software application to execute the program efficiently.
WQCD personnel will continue to endeavor and meet the requirements of the State unfunded mandates regarding the Municipal Separate Storm Sewer System (MS4) Phase II Permit. These requirements include the Trash Provision with semi-annual On-Land Visual Trash Assessments (OVTAs), the Pyrethroid Control Program, and other multi-departmental required monitoring and reporting.
Pollution Prevention Programs that fall under the Water Quality Control Division, such as the Fats, Oils, and Grease (FOG) Program and MS4 Storm Water Phase II permit, require public outreach and education to the citizens and businesses of Merced. Staff will continue efforts to provide effective Public Outreach as per the program requirements. The MS4 permit with programs such as the trash provision and the pyrethroid management plan through an Integrated Pest Management (IPM) Advocacy require increased outreach and education which will impact personnel and budget. Staff will utilize media most effective in reaching the City of Merced businesses and citizens, for example, staff will use digital marketing, radio commercials, billboards, in-person outreach events like the Merced County Fair and downtown events, and mailers.
The State Water Board’s drinking water monitoring program requirements will continue to be met with staff and resources provided to collect samples throughout the year on a monthly, quarterly, semiannual, annual, or triennial, sexennial, or novennial basis in conformity with the State’s monitoring schedule.
LAND APPLICATION
FUND NO. 6000
DIVISION NO. 6085
DESCRIPTION
The 580-acre Land Application site provides on-site disposal of biosolids. The sale of crops grown from biosolids disposal offsets most operating costs of the land application operation.
MISSION
The Land Application program employs an environmentally acceptable means of recycling biosolids as fertilizer.
GOALS
Identify crops that are compatible with biosolids application that will produce the highest yield of tonnage to offset operating costs.
Ensure biosolids are properly disposed of in accordance with all applicable federal and state requirements.
Irrigate 580 acres in the Land Application Area (LAA) and 100 acres of additional Wastewater Treatment Facility property using tertiary treated wastewater.
Maintain year-round crop production that will successfully utilize the available nitrogen in the soil from biosolids application.
Perform weed abatement activities throughout the year in the LAA and assist other City departments with weed control via lot discing. Report pesticide and herbicide spraying to the Merced County Department of Agriculture.
Maintain accurate records and procedures to monitor and report biosolids loadings. Track nitrogen uptake rates by sampling and testing nitrogen content within the soil and plant tissue.
Develop and implement an integrated pest management system for the LAA operation
LAND APPLICATION
OBJECTIVES PERFORMANCE
MEASUREMENT/INDICATORS
1. Offset the cost of operating the land
application program.
Produce fodder crops to generate
revenue that meets or exceed budget
expenditures for fiscal year 2026/2027.
2. Dispose of biosolids in compliance
with NDPES requirements and EPA
title 40 [CFR], Part 503.
Verify through plant and soil sampling
throughout the year. Utilize biosolids for
fertilization needs twice a year.
3. Increase the support for reduce,
recycle, and reuse efforts.
Continue to use recycled water to irrigate
the 695 acres of farmland and provide
water to the Wildlife Management Area.
4. Improve the Wildlife Management
Area and habitat for native wildlife
species.
Invasive weed eradication; reduce
vegetation overgrowth. Identify hot spot
areas and target pest species, spray, and
flood continuously. Continue adding
wood duck boxes (Every year the wood
duck population is increasing
significantly).
5. Remove residual nitrogen in former
drying bed area.
Plant winter crops that will utilize soil
bound nitrogen. Collect soil samples and
compare results to previous years.
Continue groundwork to aerate the soil
and mix various layers.
7. Reduce pesticide/herbicide usage
on land application fields.
Evaluate alternative methods of pest
control such as early crop harvest,
organic options, and adopt a more
ecological approach.
2026/2027 BUDGET HIGHLIGHTS
Benefit from the reuse of biosolids through management of solids loadings, metals, salts, and nitrogen in accordance with Federal regulations. Continue to offset biosolids disposal costs through the sale of fodder crops. Maintain all equipment used for farming to reduce time and maintain high yield returns on all crops.
WASTEWATER TREATMENT LINES COMPONENT
IMPROVEMENT FUND
FUND NO. 6004
DIVISION NO. 60 90
PROGRAM
The Wastewater Treatment Lines Component Fund is used to collect fees from new growth. Funds will be used in the future to expand lines, pumps, and force mains required due to growth. Fees to support the system for new growth were adjusted in FY 2010.
WASTEWATER TREATMENT PLANT COMPONENT
IMPROVEMENT FUND
FUND NO. 6005
DIVISION NO. 60 95
PROGRAM
The Wastewater Treatment Plant Component Fund is used to collect fees from new growth. Funds will be used in the future to expand the capacity of the Wastewater Treatment Plant that will be required due to growth. Fees to support expansion of the plant, as a result of new growth, were adjusted in FY 2015.
WASTEWATER REVOLVING FUND
FUND NO. 6006
DIVISION NO. 60 00
PROGRAM
The Wastewater Revolving Fund was established for the purpose of providing financing for owners of single-family residences to connect property to the sewer line. Loans will be made available to owners based upon income limits established by the U.S. Department of Housing and will be repaid over ten annual installments plus interest at a rate equal to the average rate earned on the City’s investments.
REFUSE COLLECTION
FUND NO. 6002
DIVISION NO. 6025
DESCRIPTION
The Refuse Division is responsible for all solid waste collection within the City limits.
This includes scheduled and unscheduled service for both residential and commercial customers, as well as programs for Assisted Refuse Pack-Out Service, Illegal Dumping Cleanup, and Drop-Off Site Disposal.
MISSION
To provide the citizens of Merced excellent solid waste services, which protect public health, enhance the City’s general appearance, preserve quality of life, and meet State mandates.
GOALS
• Provide regular collection of residential and commercial solid waste in the most efficient and cost-effective manner.
• Continue to audit service routes for appropriate service levels, as well as productivity.
• Continue to audit refuse customer accounts for appropriate service levels.
• Continue to partner with Merced Police Department for encampment cleanups.
• Continue to educate and service the community regarding illegal dumping.
• Continue to partner with 3
rd party litter abatement services for small rubbish
removal.
• Prepare and adjust for current and future growth of our customer base to keep appropriate service levels.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. To monitor and adjust service routes to
accommodate growth, customer needs,
and improve productivity.
All routes/services will be continually
audited and adjusted for appropriate
service during the fiscal year.
REFUSE COLLECTION
2. Monitor illegal dumping activities and
homeless encampment cleanups.
Report to Council tonnages/level of
activity to address community
needs/costs of service.
2026/2027 BUDGET HIGHLIGHTS
Total tonnage generated by the City has decreased slightly by 477 tons as compared to the previous fiscal year. This decrease is mainly contributed to the diversion of food waste out of the general waste stream. With continued diversion and an increase of participation of recycling, food, and green waste, the general waste stream tonnage will hopefully continue to decrease.
Staff remains diligent in searching for ways to reduce internal costs; however, unfunded legislative and regulatory mandates to the landfill, to the City, and to businesses will continue to negatively impact costs. Proactively, staff has been working with a consultant to optimize the inspection process due to the increased workload from SB1383 requirements.
Other items expected to continue to negatively impact Refuse costs include illegal dumping/homeless encampment cleanups, additional personnel to accommodate growth, and compliance with Assembly Bills AB341 (the mandatory commercial recycling law), AB1826 (the commercial organics law), and Senate Bill SB1383 (the mandatory organics diversion law), which has affected both commercial and residential customers. The Regional Waste Authority (RWA) will be conducting its own rate study and potentially increasing its fees in the coming years as well as the potential for increase from the third-party vendor (Agromin) managing the organics diversion program to meet AB1826 and SB1383 requirements. To maintain adequate funding for these increases, the Refuse division has conducted a rate study to accommodate the next five years and these impending increases.
The year-round Bulky Item Drop-off site (corner of N. Hwy 59 and Yosemite Ave where residential customers can bring bulky items, tires, and e-waste to be disposed of) has proven to be a successful program with 12,665 vehicles serviced in the last calendar year, an increase from the previous year. The site is open for 12-hours a week and 2 Saturdays a month. This site, as well as the community clean up events, has allowed us to eliminate our traditional Spring Clean-up event that was extremely taxing on staff and equipment. The site has moved 597 tons of general waste and recycled 34 tons of comingled recycling, 84 tons of wood waste, 196 tons of metal, 2,572 appliances, 3,203 mattresses and 2,109 tires. Staff is working on adding to the list of acceptable items for diversion to further grow the program. In January 2025 staff was able to add small battery drop off recycling through a Department of Energy grant inclusively with RWA.
Even though participation for the drop site was opened up to City residents that reside in multi-unit complexes, the tonnage amounts only increased slightly. This aids in our efforts to decrease illegal dumping.
GREEN WASTE COLLECTION
FUND NO. 6002
DIVISION N O. 6035
DESCRIPTION
The Green Waste Division is responsible for all green and organic waste collection within City limits. This includes scheduled and unscheduled service for residential and commercial customers, Christmas Tree Removal program and an organic waste reduction program per State mandates for Assembly Bill (AB)1826 and Senate Bill (SB)1383.
MISSION
To provide the citizens of Merced excellent green waste collection service, which helps to meet waste diversion goals in regard to State mandates, in addition to enhancing the City’s general appearance and preserving quality of life.
GOALS
• Provide regular collection of residential and commercial green and organic waste in the most efficient and cost-effective manner.
• Partner with businesses to promote commercial organic recycling that meets the requirements of California Assembly Bill (AB)1826 – Mandatory Commercial Organic Recycling.
• Progressing with program to meet compliance requirements with California Senate Bill (SB)1383 Short-Lived Climate Pollutants (SLCP): Organic Waste Methane Emissions Reductions.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. To monitor and adjust service routes to
accommodate growth and improve
productivity.
All routes/services will be continually
audited and adjusted for appropriate
route service during the fiscal year.
2. Track diversion of material from the
landfill and businesses meeting
standards, as mandated by the State of
California.
Track tonnage of green waste and
organic waste collected, contamination
percentage and audit businesses.
GREEN WASTE COLLECTION
3. Promote waste diversion in both the
residential and commercial sector and
increase participation.
Educating residents on good waste
diversion practices and businesses on
AB1826 and SB1383 requirements, the
City’s organic program and conducting
the waste diversion survey with an
annual report to our jurisdiction
representative.
4. Maintaining SB1383 inspection and
record keeping requirements.
5. Contamination Notices.
Perform required inspections,
documentation, outreach, and record
keeping for annual reporting to our
jurisdiction representative and
CalRecycle.
Review contamination reports from
route inspections/driver logs and
generate notices.
2026/2027 BUDGET HIGHLIGHTS
To be in compliance with SB 1383, our green waste programs has been converted to our Organic Waste program effective January 1
st, 2024. SB1383 requires organic
waste material be diverted from the general waste stream to meet statewide mandated goals.
As it pertains to CalRecycle, SB1383 establishes targets to achieve a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025. Staff is continuing to work with the Regional Waste Management Authority (RWA) to increase food waste disposal in the green waste/organic services available at the landfill. As a temporary fix and to be in compliance with State regulations, food waste and soiled paper products are bagged and placed in the green waste can. At the landfill, the food waste bags will be removed and transported to another facility for processing until such time that it can be processed at RWA landfill. We are anticipating that this change will be in effect in the next twelve to eighteen months. Once processing services are in place, a proactive outreach/education program will be enacted to aid in participation and contamination awareness. As part of SB1383 requirements, staff has developed a food recovery program with continued education and outreach.
Our Recycling Coordinator, along with the Solid Waste staff, are aiding businesses in meeting state mandates related to AB1826 and SB1383. The Solid Waste division is auditing the commercial accounts to meet reporting needs and educate businesses on organic waste diversion requirements. In conjunction with meeting SB1383 requirements Refuse staff will increase State required in field container inspections and tracking for both residential and commercial customers to monitor contaminations
GREEN WASTE COLLECTION
and customer participation; City staff had to go in a new direction for tracking and utilizes the GPSTrackit application already in use for our route documentation. The use of the GPSTrackit forms allows City staff to log and photo document the inspection. The report created from this inspection is reviewed and when needed, generates contamination notices.
With any new drastic change comes an influx of contaminations. With the changes to organic service the tonnage has continued to increase by 1,022 tons from the previous fiscal year along with the tonnage rate increasing for disposal/processing. To maintain adequate funding for these increases, the Refuse division has conducted a rate study to accommodate the next five years and these impending increases.
City staff has resumed sending contamination notices, beginning with an oops postcard notice. Contamination fines will resume January 1 st, 2026.
Staff remains diligent in searching for ways to reduce internal costs. However, unfunded legislative and regulatory mandates affecting the County landfill, the City, and businesses are expected to adversely impact rates and operations.
RECYCLING PROGRAM
FUND NO. 6002
DIVISION NO. 6030
DESCRIPTION
The Recycling Division is responsible for collection of all recyclable material within City limits. This includes scheduled and unscheduled service for residential and commercial customers.
MISSION
To provide the citizens of Merced excellent recycling services, which help meet waste diversion goals in regard to State mandates, in addition to, enhancing the City’s general appearance and preserving quality of life.
GOALS
• Provide regular collection of residential and commercial businesses co-mingled recyclables in the most efficient and cost-effective manner.
• Partner with businesses to promote commercial recycling that meets the requirements of California Assembly Bill (AB)341 - Mandatory Commercial Recycling.
• Progressing with program to meet compliance requirements with California Senate Bill (SB)1383 Short-Lived Climate Pollutants (SLCP): Organic Waste Methane Emissions Reductions.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. To monitor and adjust service
routes to accommodate growth and
improve productivity.
All routes/services will be continually
audited and adjusted for appropriate
route service during the fiscal year.
2. Track diversion of material from the
landfill and businesses meeting
standards, as mandated by the
State of California.
Track tonnage of recyclables collected,
contamination percentage, and audit
businesses.
RECYCLING PROGRAM
3. Promote waste diversion in both the
residential and commercial sector
and increase participation.
Educating residents on good waste
diversion practices, and businesses on
AB341, AB1826, and SB1383
requirements, the City’s waste
diversion programs, and conducting the
waste diversion survey with an annual
report to our jurisdiction representative.
4. Maintaining SB1383 inspection and
record keeping requirements.
5. Contamination Notices.
Perform required inspections,
documentation, outreach, and record
keeping for annual reporting to our
jurisdiction representative and
CalRecycle.
Review contamination reports from
route inspections/driver logs and
generate notices.
2026/2027 BUDGET HIGHLIGHTS
Our Recycling Coordinator, along with the Solid Waste staff, will continue to add new businesses to recycling service, and aid them in meeting state mandates related to AB341 Mandatory Commercial Recycling, AB1826 - Mandatory Organic Recycling, and SB1383 - Short-Lived Climate Pollutants (SLCP) organic waste methane emissions reductions.
The Solid Waste division is continuing the audit of commercial accounts to meet reporting needs and educate businesses on recycling requirements. In conjunction with meeting SB1383 requirements Refuse staff will increase state required in field container inspections and tracking for both residential and commercial customers to monitor contaminations and customer participation. City staff had to go in a new direction for tracking and utilizes the GPSTrackit application already in use for our route documentation. The use of the GPSTrackit forms allows City staff to log and photo document the inspection. The report created from this inspection is reviewed and when needed, generates contamination notices.
City staff has resumed sending contamination notices, beginning with an oops postcard notice. Contamination fines will resume January 1
st, 2026.
Staff remains diligent in searching for ways to reduce internal costs. However, unfunded legislative and regulatory mandates affecting the landfill, the City, and businesses will likely continue to negatively impact the waste diversion programs.
STREET SWEEPING
FUND NO. 6002
ACCOUNT NO. 6045
DESCRIPTION
The Street Sweeping Division is responsible for the removal of dirt and debris from city streets. This includes the annual leaf collection program. The program helps the City meet air pollution and storm water pollution requirements.
MISSION
To preserve the quality of life in Merced by providing street sweeping services that meet the Clean Air Act mandates and Phase II NPDES requirements.
GOALS
◊ Continue providing a well- developed systematic street sweeping schedule in residential areas (twice per month) and business districts ( 3 times weekly) in the most cost effective and efficient manner possible.
◊ Continue the collection of leaves from city streets during the annual leaf collection program.
◊ Continue Best Management Practices diverting sediment, trash, debris, and pollutants from the storm drainage system and improving the water quality.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Continue to dispose of leaves at
disposal sites that will accept leaves
at no charge, with all-weather
disposal capabilities.
Continue to identify strategically
located sites that accept leaves at no
charge or consider creating compost
for future uses throughout city facilities.
2. Seek methods to improve the
quality of street sweeping and right-
sizing of routes to improve
productivity.
Maintain contact with sweeper
manufacturers to remain familiar with
current technology, as well as machine
capability, and arrange for on-site
demonstrations of such machines
when available.
STREET SWEEPING
3. To significantly divert sediment,
trash debris and other pollutants
from the storm drainage system and
improve storm water quality.
Implement Best Management Practices
and measurable goals to improve
pollutant removal from streets and
gutters. Provide report to Public Works
Administration on quarterly basis.
2026/2027 BUDGET HIGHLIGHTS
The replacement of tractor loader will assist with facilitating Leaf Collection Program, removing debris from streets and various projects.
REFUSE CAPITAL EQUIPMENT FUND
FUND NO. 6009
DIVISION NO. 6000
PROGRAM
The Refuse Capital Equipment Fund is used for the accumulation of refuse charges on new residential (MMC 8.04.235) and new industrial/commercial (MMC 8.04.265) growth for the purchase of refuse containers and equipment to meet the needs generated by new growth which is financed through fees collected from new customers.
FLEET MANAGEMENT
FUND NO. 7005
DIVISION N O. 6020
DESCRIPTION
The Fleet Maintenance Division is responsible for the maintenance, repair, and replacement of more than 600 vehicles and equipment utilized by all City departments with a staff of 13. This includes police vehicles, fire apparatus, public works equipment, and other specialized vehicles. The Fleet Division ensures the safe, reliable, and cost- effective operation of the City’s fleet.
MISSION
Fleet Services is committed to maintaining an exceptional level of operational readiness. We strive to provide the best services possible within our fiscal constraints by providing safe, reliable, and cost-effective fleet services to all city departments, ensuring optimal vehicle and equipment performance to support the delivery of essential services to our community.
GOALS
• Maximize Vehicle Uptime: Minimize vehicle downtime through proactive maintenance and efficient repairs.
• Control Fleet Operating Cost: Manage and reduce overall fleet expenses.
• Ensure Fleet Safety and Compliance: Maintain vehicles in safe operating condition and comply with regulations.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Optimize Maintenance
Scheduling: Implement a data-
driven approach to minimize
disruptions and maximize vehicle
uptime.
• Average vehicle downtime
• Total fleet operating costs
• Percentage of PMs completed on
schedule
• Number of regulatory compliance
violations
• Fuel consumption
2. Improve Repair Turnaround
Time: Reduce the time it takes to
complete repairs while maintaining
quality.
FLEET MANAGEMENT
2026/2027 BUDGET HIGHLIGHTS
Fuel
In the last calendar year, City vehicles consumed 261,455 gallons of diesel (3,225 less gallons than 2023), 187,990 gallons of unleaded (6,831 more gallons than 2023, and 2,019 Gas to Gallon Equivalent (GGE) of compressed natural gas (1,469 gallons less than 2023). With the growth of all City departments, the City fleet continues to grow and fuel consumption increased by 2,137 gallons across all three commodities. With increased fuel prices our costs will continue to grow.
Vehicle Replacement & ZEV Transition
Replacement charges for departments funded by discretionary funds have ceased or reduced for the past eighteen budget years. Meeting California Air Resource Board (CARB) compliance for Zero Emission Vehicles (ZEVs) present a significant challenge.
The transition to ZEVs will increase vehicle replacement costs exponentially compared to traditional combustion engine vehicles. The current budget allocation for vehicle replacement is insufficient to accommodate this mandated shift. Furthermore, the availability of ZEV infrastructure (charging stations, maintenance facilities) and trained technicians is limited, requiring substantial investment.
Fleet Cost Reduction Practices
• Preventative Maintenance Program Enhancement: Implement a more robust preventative maintenance program to expand the lifespan of existing vehicles and reduce costly emergency repairs.
• Strategic Sourcing and Procurement: Explore cooperative purchasing agreements to leverage buying power and negotiate better prices for parts and supplies.
• Lifecycle Cost Analysis: Conduct thorough lifecycle analyses before vehicle purchases to ensure the most cost-effective options are selected, considering not just purchase price, but also maintenance, fuel, and resale value. • Technology Implementation: Implement fleet management software to optimize vehicle utilization, track maintenance schedules, and monitor fuel consumption.
Budget Challenges
• Rising Costs: The costs of parts, equipment, and labor has been steadily increasing, putting pressure on the existing budget.
• ZEV Transition Cost: As mentioned above, the transition to ZEVs will dramatically increase vehicle replacement expenses.
• Aging Facility: The current shop, built in 1959, is outdated and cannot accommodate the growing fleet, particularly larger modern vehicles and the specialized equipment needed for ZEV maintenance. It also lacks adequate space for parts storage and staff.
FLEET MANAGEMENT
• Staffing Needs: As the fleet grows and becomes more complex (including ZEVs), additional trained technicians and Parts Specialist staff will be required.
The current budget does not adequately address these staffing needs.
“State and local agencies. State and local government fleets, including city, county, special district, and State agency fleets, are required to ensure 50 percent of vehicle purchases are zero-emission beginning in 2024 and 100 percent of vehicle purchases are zero-emission by 2027. Small government fleets (those with 10 or fewer vehicles) and those in designated counties must start their ZEV purchases beginning in 2027. Alternately, State and local government fleet owners may elect to meet ZEV targets using the ZEV Milestones Option as shown in Table 1. State and local government fleets may purchase either ZEVs or near- ZEVs, or a combination of ZEVs and near-ZEVs, until 2035. Starting in 2035, only ZEVs will meet the requirements.”
• Need for Additional Parts Specialist:
o Current parts workflow causes delays in technician productivity o Increased complexity of sourcing ZEV components and specialty items o Inventory volume at 2 separate locations has exceeded efficiency of one Parts Specialist
o A dedicated second Parts Specialist will improve repair turnaround time and reduce fleet downtime
• Need for Mechanic III Position:
o Modern fleet assets require advanced diagnostic and repair skills that a Mechanic III will provide
o Provides assistants to lead in diagnostics of fire apparatus, heavy equipment, and ZEV technologies
o Established upward mobility for existing mechanics, improving retention o Reduces reliance on costly outsourced repairs for specialized work
FLEET MANAGEMENT
FLEET REPLACEMENT FUND
FUND NO. 7006
ACCOUNT NO. 6020
PROGRAM
This fund was created to accumulate money to replace City vehicles. Fleet operation and maintenance activities are accounted for in Fund 7005.
FACILITIES MAINTENANCE
FUND NO. 7007
DIVISION N
O. 6005
DESCRIPTION
The Facilities Maintenance Division – currently comprised of eight (8) Custodians and four (4) Building Maintenance Workers – is responsible for the maintenance, repair, and sanitation of 75 City facilities, totaling 194,448 square feet of building and structures. This includes, City Hall, public safety facilities, community center, park restrooms, recreational buildings, and other municipal properties.
As facility systems have become more complex – particularly HVAC, electrical, plumbing, and digital controls systems – the division’s generalist staffing model is no longer sufficient. Many routine and critical repairs now require licensed or certified specialists. The addition of an HVAC Technician, Plumber, and Electrician is essential to maintaining operational reliability, meeting safety and code requirements, reducing contractor dependence, and managing aging City infrastructure.
MISSION
To provide safe, well-maintained, and functional facilities that support essential city services and enhance community quality of life.
GOALS
• Maintain Safe and Functional Facilities: Ensure all City facilities meet safety standards, remain accessible, and operate reliably.
• Optimize Facility Operations: Increase efficiency and reduce downtime by expanding in-house technical expertise and reducing reliance on contracted repairs.
• Extend the Lifespan of City Assets: Improve preventative maintenance and system diagnostics through specialized personnel to reduce long-term capital expenditures.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Provide high-quality custodial and
Facility maintenance services:
Completion of all priority work order
requests within 3 business days.
Monthly review of open work orders
and audit of closed work orders.
FACILITIES MAINTENANCE
2. Ensure facilities under the care of
the division are properly cleaned
and safely maintained for all clients.
3. Provide direction and assistance for
approved construction projects.
Facilities are regularly inspected by the
supervisor and annually inspected by
the Fire Department.
Monitor and report total construction
progress to the Public Works Director,
document as-built changes to City
facilities and report them to the
Engineering Division within 30 days of
completion.
2026/2027 BUDGET CHALLENGES
• Aging Facilities: Many building require advanced repairs beyond current staffing capabilities.
• Vandalism: Vandalism to City facilities results in unexpected expenses for repairs and replacements, diverting funds from planned maintenance activities.
• Increased Maintenance Costs : Outsourcing HVAC, plumbing, and electrical repairs significantly increase costs.
• Low Staff Levels & Lack of Specialized Trades: The absence of dedicated trades professionals leads to increased downtime, safety risks, and delays.
• Major Upgrades and Repairs : HVAC, electrical, and plumbing system upgrades remain major cost drivers.
Strategies for Addressing Budget Challenges:
• Add specialized trades personnel (HVAC, Plumbing, Electrical) • Prioritize maintenance based on risk and lifecycle costs • Perform regular facility condition assessments
• Increase energy efficiency through optimized building systems •
By implementing these strategies, the Facilities Maintenance Division can address its budget challenges and ensure the city facilities are well-maintained and support the needs of the community.
STAFFING & VEHICLE REQUEST JUSTIFICATION
The Facilities Maintenance Division requests the addition of three specialized positions – HVAC Technician, Plumber, and Electrician – based on:
• Increasing reliance on contractors
• Growing complexity of building systems
• Regulatory and code compliance needs
• Operational efficiency and reduced downtime
FACILITIES MAINTENANCE
• Long-term cost reduction
• Replace aging vehicles and equipment and add for new positions
PARKS & COMMUNITY SERVICES
FUND NOS. 1018, 2004 & 5000
DIVISION NOS. 4000-4060
P&CS M ISSION
To plan, facilitate, promote, maintain, and develop activities and facilities that enhance the quality of life in Merced.
GOAL 1: Leadership
Increase youth & adult leadership in the field of Parks & Community Services Objective Performance Indicators
Strengthen leadership opportunities for Parks &
Recreation Commission members through
revised recruitment, training, and participation
practices
The department will work with Clerks and Attorney office to create training to help Recreation Commission understand role and opportunities to drive Commission discussions
Send Recreation Commissioner with staff to
attend California Parks & Recreation Society
Conference
Training will need to be prioritized for next year if Department Staff and Commission capacity are to grow
Build capacity of Youth Council to lead and
advise Parks & Community Services
Youth Council have begun to hone focus on Parks & Community Services initiatives which will better align with Dept. ability to support them.
Recruit and hire Youth Advisor to coordinate
Youth Council participation with graduation
requirements or HS ASB membership
Dept will dedicate a part time position to the recruitment of a youth advisor for the Youth Council to ensure recruitment, retention and activities are providing the intended impact.
GOAL 2: Field & Facility Management
Increase utility, reduce cost, and maintain the highest value of services offered through facilities Facility Contracts
Objective Performance Indicators
Assist youth-serving organizations with
marketing opportunities and programs through
City platforms
The department is recruiting part time staff with video editing experience to bolster the capability to advertise its own services and also those of facility users (youth service orgs)
Reduce expenses and increase revenues by
eliminating co-sponsored mandates and
instituting new fee schedule
The department will focus on reducing costs affiliated with co- sponsored and non-profit facility use and instituting new fee schedule and naming rights for recreation facilities
Carry out capital improvements or necessary
repairs at rentable facilities to ensure utility for
community.
Roofing repairs at Senior Community Center. Major renovation of Joe Herb softball fields, maintenance yard and lower park restroom Continue investments in staffing, coordination
and equipment dedicated to Recreation Field
and Facilities to keep sports venues in desirable
condition and limit liability.
Reclassify Rec Leader positions dedicated to Groundskeeping to Rec. Field and Facility Workers to specific roles and expectations within the division. Purchase ABI Force infield machine for infield maintenance and outfield annual repairs.
Create Annual Field/ Facility Maintenance schedule for Public Works Parks & Facilities Division to better inform seasonal support of sports facilities in parks.
Safety at Facilities and Fields
Objective Performance Indicators
Coordinate with MCPD to install cameras and
ensure monitoring of existing systems
MCPD has installed cameras at several parks with others in the work for the remainder of 2026
Coordinate with Public Works to create field and
facility maintenance plan.
For recreational fields and facilities to be sought after community amenities weekly, monthly and yearly maintenance schedules are required. P&CS will create an annual maintenance plan to guide the efforts of Public Works to ensure fields and facilities are safe and sought after.
Continue coordination with DART to ensure
field/facility availability and positive user
experience.
Field/facility reservations continue to be difficult to handle without appropriate fencing or patrols. Need to study feasibility of hiring security company or creating a Park Ranger program to patrol park assets to reduce repair/ replacement costs.
GOAL 3: Recreational Opportunities
Offer youth & adult sports and outdoor recreation programs that meet community needs Objective Performance Indicators
Onboard Recreation Trac software Allow for Point of Sale at satellite locations such as Zoo and online payments and reservations to be made online.
Ensure affordability by offering scholarships for
recreation programs
Maintain contracts with MCSD to cover cost of program participation for students K-6th grades and maintains a scholarship for all other youth. Continue to explore potential services for Weaver School District.
Analyze Aquatic Programs viability (rec swim
and swim lessons) and determine if alternative
water based activities meet more of community
need
Price of pool operation maintenance and staffing have increased significantly while community use has dwindled. Increasing cases of trespassing make pool security difficult to keep up and has become an ongoing community concern the last several years.
Coordinate with CBOs, government, and private
organizations to reinstate the outdoor
recreation program
The department is continuing to search for collaborative partners to support its outdoor recreation
Ensure Leisure classes are meeting community
needs
Create Leisure Class Monitoring Tool to assess viability of continued use of space, development marketing template for all leisure classes to advertise openings
GOAL 4: Cost Reductions or Revenue Increases
Increase sustainability of summer programs, leisure classes, and the Zoo through partnerships Objective Performance Indicators
Contract with school districts for sports and
outdoor recreation at school sites
Work on Summer camp options as well as outdoor recreation workshops
Optimize staffing models to ensure each
division maintains the same support and roles
among staffing levels across divisions
Shift appropriate tasks from full time to part time. Train part time staff more routinely to carry roles
Increase amount of sponsorships brought in
through use of Sponsorship Catalogue by 50%
Market more banner sponsors to local business and development facility naming opportunity with terms (5 year/10 year options) instead of forever options. Add facility naming to Sponsorship Catalogue
GOAL 5: Quality of Life
Increase the utility of parks, open space, and playgrounds through coordinated improvements Objective Performance Indicators
Complete the PROS (Parks, Recreation & Open
Space) Master Plan Update
The department hired 110% to carry out the PROS plan development.
Hosted 5 community focus groups across various sectors of the community, conducted park/field/facility assessment, and is reviewing cost recovery models to provide draft master plan by end of winter. Will look to adopt new PROS plan by Council in March 2026 Coordinate community support for Fahrens
Basin Nature Trail installation
Council has approved the designation of Fahrens basin to house a nature trail for active recreation use but the Department needs to build capacity and acquire resources to construct the new amenity.
This has not been pursued heavily this year
Acquire funding for McNamara Turf
replacement
The Turf at McNamara Park is on year 13 of a 10 year lifespan. The Department is working with CPPG to acquire a grant to renovate both the turf and the grass at McNamara sports fields. The funding request will be upwards of $5 million
Complete Merced Regional Sports Complex
(CP42 South), General Vang Pao Park, and
Applegate Zoo
CP42 South is expanding its scope to include JPA funding of a 5th soccer field, more pathway lighting, auxiliary parking, and potentially a second restroom.
GVP Park was awarded a CA Arts in Parks Grant and is in 85% design review. Plan to complete phase 1 by Summer 2026.
Applegate Zoo Design Build contract was awarded and plans are in review by City Building Department. Goal is to be done by Summer 2026
Major Projects and Priorities for 26 -27
• Adopt and Implement Parks, Rec. & Open Space Master Plan • Acquire Funding to Renovate McNamara Turf- Looking for minimum of $1.3 Million in Grants • Complete CP42 South, Phase 2- form Joint Power Authority • Complete General Vang Pao Park, Phase 1- Aletha June Playground • Complete Roof Restoration at Merced Senior Community Center- $100,000 • Break ground on HUD CDBG renovation of Joe Herb Sports Fields • Replace Fencing for Security of City Facilities and Amenities- Ada Givens & McNamara Pools, Joe Herb Sports Field Maintenance Yard- $150,000 ($50,000 each facility) • Replace lower Joe Herb Park Restroom with new unit- $150,000
2026-2027 BUDGET HIGHLIGHTS
In order to inform investment across programs, projects, and facilities P&CS acquired funding to update the Parks, Recreation & Open Space Master Plan. This document will be a comprehensive tool to guide the departments Mission Goals and Objectives for the next 10 years. The PROS Plan will be complete in the Spring of 2026 and will be reviewed regularly to help evaluate our progress and the plans relevance as it relates to changing community priorities, community conditions, and funding realities.
The past several years have been focused on building or renovating facilities which will help drive use. To capitalize on these investments this years budget requests reflects the required staffing, partnerships, equipment, and continued enhancements to protect those investments. Department staffing and training will be a significant focus over the next fiscal year to ensure the successful implementation of the PROS Master Plan.
PARK RESERVE FUND
FUND NO. 5001
DIVISION NO. 4020
PROGRAM
In accordance with the Merced Municipal Code, as a condition of approval of a final subdivision map or parcel map, a developer must dedicate land; pay a fee in lieu thereof, or both, at the option of the City, for neighborhood and Community Park or recreational purposes.
All in-lieu fees collected are deposited into this fund and may only be used for the purpose of acquiring necessary land and developing new or rehabilitating existing park or recreational facilities reasonably related to serving the subdivision.
The Development Services Department has completed an update to the Open Space Master Plan. This Plan is a significant tool in making decisions regarding when and where facilities are constructed.
DOWNTOWN FUND
FUND NO. 2000
DIVISION NO. 2540
DESCRIPTION
In the past, the Downtown Fund provided financial support under California law for the promotion, capital improvements, and administration of the downtown area.
Funds from the double-license fee were passed through to the Merced Main Street Association. With the successful formation of the Property Based Improvement District, the Business Improvement Area fee is suspended.
MISSION
Make Downtown Merced the vibrant urban center for the city and the region, a friendly place to live, work, shop, dine, and celebrate.
GOALS
◊ Support the delivery of Downtown Services through the newly formed Property Based Improvement District (PBID).
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Serve as a point of contact and
support the efforts of the PBID
to provide security, cleanliness,
and market Downtown Merced.
Share resources that will assist the
PBID with completing tasks in the
adopted Management Plan.
2. Promote investment in
Downtown Merced focusing on
housing, entertainment, and
nightlife.
Center on development and investment
opportunities based upon the California
Arts and Culture designation and
completing of placemaking project
such as the Bob Hart Square
Expansion.
3. Evaluate the possibility timed
parking in the Downtown Core.
Coordinate with the Merced Main
Street Association and Property Based
Improvement District to determine
where timed parking is needed in the
Downtown Core.
DOWNTOWN FUND
2026-2027 BUDGET HIGHLIGHTS
The newly formed Property Based Improvement District (PBID) will be managed by downtown property owners. Efforts will continue to center on cleanliness, safety, Main Street certification, and the promotion of Downtown Merced. Existing police patrols and calls to service, along with services for tree trimming, refuse pickup, street sweeping, and lighting will be maintained by the City.
BUSINESS IMPROVEMENT DISTRICTS
FUND NOS. 4950 & 4951
DIVISION NO. 2500
DESCRIPTION
Annual assessments to business property owners within commercial areas designed to pay for public safety enhancement, maintenance services, property beautification programs, and tourism activities.
Property Based Improvement District (Fund 4950) was formed by Resolution No. 2023-53 to fund activities to enhance public safety, maintenance services, and beautification programs for properties within Downtown Merced above and beyond services already provided by the City of Merced. Assessments are based upon an allocation of program costs and a calculation of lot square footage, first floor building square footage plus upper floor building square footage and linear footage for each of the respective three benefit zones. The first year of the PBID assessment was from January 1, 2024 to December 31, 2024. The annual assessment for subsequent years may be adjusted by a percentage rate not to exceed a maximum of five (5%) percent per year.
Tourism Based Improvement District (Fund 4951) was formed by Resolution No. 2024-112 to fund activities that vitalize the hospitality industry and promote tourism and destination activities. Assessment is 2% of the gross receipts reported on the lodging properties’ transient occupancy tax schedule.
MISSION
PBID - Enhance Downtown Merced’s vitality by supporting PBID’s efforts to provide marketing, sanitation, beautification, and security services.
TBID – Reinvest tourism revenue locally for marketing, economic growth, drawing more visitors to Merced and increasing spending.
GOALS
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Support activities as detailed in
the PBID Management Plan.
Provide the resources and cooperation
as needed for the PBID board to
successfully execute their annual plan.
2. Support activities as detailed in Provide the resources and cooperation
PBID & TBID DISTRICTS
the TBID Management Plan
as needed for the TBID board to
successfully execute their annual plan.
3. Continue providing
representation on the respective
PBID and TBID boards.
The Public Works Director will serve as
the City representative to the PBID
board and Airport Manager will serve
as the representative to the TBID
board.
4. Finance Department remains
the pass-through department for
PBID assessment received from
the County and TBID
assessment as paid by the
hotels.
Provide the contracted services to the
PBID and TBID Boards.
2026-2027 BUDGET HIGHLIGHTS
The Finance Department is paid $2,000 by the PBID and $2,000 by the TBID for passing through the collected assessments. Economic Development continues to serve as the point department for PBID and TBID inquiries.
MAINTENANCE DISTRICTS
FUND NOS. 4000-4039 & 4499
ACCOUNT NO. 6 100
DESCRIPTION
Annual assessments within each district are to pay for maintaining and operating public improvements, including landscape, irrigation and/or storm drainage.
Assessments are calculated and levied on parcels, units, acreage or other basis depending on the nature and configuration of the district. Annual assessments are reviewed and approved by the City Council.
Campus North Maintenance District (
Fund 4024) was formed by Resolution No.
92-116 to maintain storm drainage, landscaping, street trees, and irrigation in a subdivision located on the west side of G Street, north of Black Rascal Creek.
Cypress Terrace Maintenance District (
Fund 4028) was formed by Resolution
No. 2003-13 to pay for the maintenance of storm drainage, street trees, landscaping, irrigation, and parks and open space systems in an area located north of Gerard Avenue, east of South “N” Street and west of South Highway 59.
Davenport Ranch Maintenance District (
Fund 4034) was formed by Resolution
No. 2002-94 to maintain street lights, storm drainage, landscaping, street trees, and irrigation in an area located on the north side of Cottonwood Creek.
Deer Park Storm Drainage Maintenance District (
Fund 4015) was formed by
Resolution No. 90-4 to maintain the storm drainage system and other public improvements located south of Yosemite Avenue and north of Donna Drive and adjacent to the Paulson Road frontage.
Downtown Maintenance District (
Fund 4019) was formed by Resolution No. 81-
148 in which annual assessments are made by square footage to pay for maintaining public improvements within the City’s downtown commercial area.
The area is westerly from G Street to V Street, bounded on the north from 18th Street and on the south from 16th Street. Downtown General Maintenance Service was formed to track the costs to maintain public improvements to downtown parking lots, Bob Hart Square, and the Arbor Walkways. This function is funded from the General Fund. Downtown Maintenance District will have some financial changes due to newly form PBID District.
East College Homes Subdivision Storm Drainage Maintenance District ( Fund
4007) was formed by Resolution No. 86-122 for maintenance of storm drain systems installed as part of the East College Homes Subdivision which is located on the westerly branch of Queens Circle along East Olive Avenue.
MAINTENANCE DISTRICTS
Fahrens Park Maintenance District (Fund 4021) was formed by Resolution No. 90-99 to pay for the maintenance of storm drainage, street trees, landscaping, irrigation, and parks and open space systems installed as part of the Fahrens Park Subdivision, located west of R Street and north of Buena Vista Drive.
Fahrens Park #2 Maintenance District (
Fund 4032) was formed by Resolution
No. 2000-99 to pay for the maintenance of storm drainage, landscaping, irrigation, walls, flood channels, street trees, and parks and open space systems installed as part of the Fahrens Park Subdivision, located east of Highway 59 and south of Yosemite Avenue.
Glenhaven Park Subdivision No. 1 and 2 Maintenance District ( Fund 4009)
was formed by Resolution No. 85-86 to pay for maintenance of storm drain systems and all other public improvements on the extension of G Street south from Childs Avenue to Cone Avenue.
Hansen Park Maintenance District (
Fund 4026) was formed by Resolution No.
93-111 to maintain storm drainage, landscaping, street trees, irrigation, park and open space along Hansen Avenue west of Nottingham Avenue. In 1996-97, Lot 49A was annexed to the District by Resolution No. 96-58.
La Bella Vista Maintenance District (
Fund 4033) was formed by Resolution No.
2002-78 to maintain street lights, storm drainage, landscaping, street trees, and irrigation in an area located on the south side of Gerard Avenue, east of State Highway 59.
Landscape Maintenance District No. 1 (
Fund 4018) was formed by Resolution
No. 76-98 as part of the Southern Industrial Park along Cooper Avenue.
Las Brisas Maintenance District
(Fund 4029) was formed by Resolution No. 98-
90 to maintain storm drainage, street lights, landscaping, park and open space in the Las Brisas Subdivision between Cone Avenue and Gerard Avenue.
Lowe’s Maintenance District (
Fund 4037) was formed by Resolution 2004-116 to
maintain storm drainage, landscaping, street trees, irrigation, parks and open space in the Lowe’s shopping area between Olive Avenue, Austin, Devonwood, and Loughborough.
Mansionette Maintenance District (
Fund 4025) was formed by Resolution No.
94-13 to maintain storm drainage, park and open space and landscaping along Mansionette Drive south of Mercy Ave.
MAINTENANCE DISTRICTS
Merced Auto Center Landscape and Storm Drain Maintenance District (Fund 4016) was formed by Resolution No. 89-3 to maintain landscaping and the storm drainage system located north of Highway 99, south of Southern Pacific Railroad, and bounded on the west by Bear Creek and on the east by V Street.
Moss Landing Storm Drainage Maintenance District (
Fund 4011) was formed
by Resolution No. 88-24 to pay for maintenance of storm drainage systems and landscaping included in the Moss Landing Subdivision located south of Highway 140.
Northwood Village Unit 1, Phase 2, Subdivision Landscape Maintenance District (Fund 4004) was formed by Resolution No. 86-19 to pay for public improvements, maintenance and operations at the southwest corner of Yosemite Avenue and G Street.
Oakbrook Subdivision Storm Drainage Maintenance District ( Fund 4010) was
formed by Resolution 86-20 for maintenance of all public improvements north of Yosemite Avenue and east of Fahrens Creek.
Oakmont Village No. 3 Landscape Maintenance District (
Fund 4003) was
formed by Resolution No. 90-98 to pay for the maintenance of storm drainage system, street trees, parks, and public landscaping included in the Oakmont Village No. 3 Subdivision.
Oakmont Village Storm Drainage Maintenance District (
Fund 4013) was
formed by Resolution No. 87-88 to pay for maintenance of storm drainage system included in the Oakmont Village Subdivision.
Olivewood Maintenance District (
Fund 4023) was formed by Resolution No. 93-
5 to maintain storm drainage, park and open space, and landscaping along Loughborough Drive and Olivewood Drive. Two commercial parcels were annexed to the district in 1994-95.
Paulson Place Maintenance District (
Fund 4030) was formed by Resolution No.
2000-72 to maintain storm drainage, park and open space, and landscaping in Paulson Place Subdivision along the south side of Yosemite Avenue and along the east side of Paulson Road.
Pleasanton Park Landscape Maintenance District (
Fund 4014) was formed by
Resolution No. 83-61 to provide landscape and irrigation improvements installed along the south side of Childs Avenue from Canal Street to N Street and along M Street, south of Childs Avenue.
MAINTENANCE DISTRICTS
Quail Creek Landscape Maintenance District (Fund 4000) was formed by Resolution No. 92-53 to maintain parks, open space, landscaping, wall, irrigation and street trees north of Yosemite Avenue between Mansionette & Gardner. In 1995-96, the Cottonwood Unit #1 Subdivision was annexed to Quail Creek by Resolution No. 96-20.
Quail Run Storm Drainage Maintenance District (
Fund 4017) was formed by
Resolution No. 89-14 to maintain the storm drainage system and other public improvements located north of Yosemite Avenue, west of Gardner Avenue, and east of Mansionette Drive. In 1995-96, the Cottonwood Unit #1 Subdivision was annexed to Quail Run by Resolution No. 96-19.
Ridgeview Meadows Maintenance District (
Fund 4020) was formed by
Resolution No. 83-81 to maintain the storm drainage, landscaping and irrigation along the south side of Childs Avenue and east of Parsons Avenue. In 1994, Starlight Estates was annexed to the district.
Ronnie Maintenance District (
Fund 4031) was formed by Resolution No. 2001-
09 to maintain the storm drainage, landscaping, walls, streetlights, and street trees within the Ronnie Subdivision south of Merced Avenue between Carol Avenue and Highway 99.
Sequoia Hill Maintenance District (
Fund 4035) was formed by Resolution No.
2003-17 to maintain street lights, storm drainage, landscaping, street trees, and irrigation in a subdivision located on the north side of Childs Avenue, east of Parsons Avenue.
Silverado Maintenance District (
Fund 4002) was formed by Resolution 91-69 to
maintain storm drainage, landscaping, street trees, irrigation, parks and open space in subdivision located south of Yosemite Avenue, between Parsons and McKee.
Skymoss Maintenance District (
Fund 4036) was formed by Resolution 2004-25
to maintain storm drainage, landscaping, street trees, irrigation, parks and open space in subdivision located on Lopes Avenue east and west of Massasso Court.
Sunset West Storm Drainage Maintenance District (
Fund 4008) was formed by
Resolution No. 84-30 for storm collection, pumping and discharge station location south and west of Bear Creek Drive, near the Santa Fe Railroad.
Villa Santa Fe Maintenance District (
Fund 4022) was formed by Resolution No.
90-88 to maintain landscaping and storm drainage system bounded by G Street on the west, Santa Fe Drive on the north and east, and by the Atchison, Topeka and Santa Fe Railroad on the south.
MAINTENANCE DISTRICTS
Village Landing Subdivision Landscape Maintenance District (Fund 4005) was formed by Resolution No. 86-100 to pay for maintenance of landscaped areas at the northeast corner of Yosemite Avenue and San Jose Avenue.
Village West Subdivision Storm Drainage Maintenance District ( Fund 4006)
was formed by Resolution No. 86-3 to maintain the storm drainage systems and other public improvements west of West Avenue, south of Heritage Drive, and north of Lopes Avenue.
Vista Del Sol Maintenance District (
Fund 4039) was formed by Resolution 2004-
81 to maintain storm drainage, landscaping, street trees, irrigation, parks and open space in a subdivision on the south side of Gerard and east of South M Street.
West Creek Homes Maintenance District (
Fund 4001) was formed by
Resolution No. 91-58 to maintain storm drainage, parks and open space and landscaping north of Highway 140 and east of Massasso.
Yosemite Gateway Maintenance District (
Fund 4038) was formed by Resolution
No. 2004-80 to pay for maintenance of storm drainage, parks and open space and landscaping in an area between Pacifica Drive, El Redondo and San Augustine.
Yosemite Village Storm Drainage Maintenance District (
Fund 4012) was
formed by Resolution No. 87-47 to pay for maintenance of storm drainage system included in Yosemite Village Subdivision.
COMMUNITY FACILITIES DISTRICT
FUND NOS. 4500-4504, 4510-4553
ACCOUNT NOS. 3000, 5020, 3510, 6010, 6105
PROGRAM
In January 2004, the City Council adopted Resolution No. 2004-3, establishing Community Facilities District (CFD) 2003-2 (Services) and authorized levy of a Special Tax.
Fund 4500 is used to account for the cost of annexing developments into the CFD, and Fund 4501 is used to account for the costs to administer the districts.
Funding comes from developers upon request to annex.
Funds 4502, 4503, 4504 and 4510-4558 are used to account for certain authorized public services, including fire and police protection, parks maintenance, landscaping, storm drain, and flood control, that are likely to benefit the property. Funding comes from the annual special tax apportioned among the lots or parcels within the district.
Staffing details directly associated with Funds 4502, 4503 and 4504 are displayed with Fire, Police and Parks Maintenance--the primary funding sources for those departments.
NORTH MERCED SEWER REFUNDING
FUND NO. 8000
DIVISION NO. 6000
PROGRAM
Fund used for collection of assessments on parcel holders in the North Merced Sewer Improvement area and for disbursement of monies to trustee for payment of debt service to bond holders.
LIBERTY PARK
FUND NO. 8099
DIVISION N O. 8000
PROGRAM
This is the debt service fund for the Liberty Park subdivision. Assessments collected are for the payment of scheduled debt service.
16TH STREET ASSESSMENT DISTRICT FUND
FUND NO. 8098
DIVISION N O. 8000
PROGRAM
This is the debt service fund for the 16th Street Assessment District.
Assessments collected are for the payment of scheduled debt service.
FAHRENS PARK
FUND NOS. 8003
DIVISION N O. 6000
PROGRAM
Fund 342 is the debt service fund for the Fahrens Park Assessment District.
Assessments collected are for the payment of scheduled debt service.
COMMUNITY FACILITIES DISTRICT
FUND NOS. 4500-4504, 4510-4559
DIVISION NOS. 3000, 5020, 3510, 6010, 6105
PROGRAM
In January 2004, the City Council adopted Resolution No. 2004-3, establishing Community Facilities District (CFD) 2003-2 (Services) and authorized levy of a Special Tax.
Fund 150 is used to account for the cost of annexing developments into the CFD, and Fund 155 is used to account for the costs to administer the districts. Funding comes from developers upon request to annex.
Funds 156, 157, 158 and 164-194 are used to account for certain authorized public services, including fire and police protection, parks maintenance, and landscape, storm drain, and flood control, that are likely to benefit the property.
Funding comes from the annual special tax apportioned among the lots or parcels within the district.
Staffing details directly associated with Funds 156, 157 and 158 are displayed with Fire, Police and Parks Maintenance--the primary funding sources for those departments--elsewhere in the budget document.
BELLEVUE RANCH EAST DEVELOPMENT CFD
FUND NOS. 8004
DIVISION N OS. 6115
PROGRAM
Fund 8004 is the debt service fund for the Bellevue Ranch East Development Assessment District. Assessments collected are for the payment of scheduled debt service.
BELLEVUE RANCH WEST DEVELOPMENT CFD
FUND NO. 8006
DIVISION N O. 6120
PROGRAM
Fund 8006 is the debt service fund for the Bellevue Ranch West Development Assessment District. Assessments collected are for the payment of scheduled debt service.
MORAGA DEVELOPMENT CFD
FUND NO. 8007
DIVISION N O. 6110
PROGRAM
Fund 8007 is the debt service fund for the Moraga Development Assessment District. Assessments collected are for the payment of scheduled debt service.
WAHNETA HALL TRUST FUND
FUND NO. 8504
DIVISION NO. 4000
PROGRAM
The City Council was named trustee for funds bequeathed by Wahneta Hall for two specific purposes:
1. The operation of a train in Applegate Park; or
2. Public concerts in Applegate Park.
An administrative policy has been established regulating the annual disbursement of trust income to qualified applicants. The amount of the annual distribution is all interest earnings in excess of the original principal amount of $167,278.
ECONOMIC DEVELOPMENT
FUND NO. 1000
DIVISION N O. 2500
DESCRIPTION
The Economic Development Department oversees the following divisions: Office of Economic Development, Downtown Fund, Bell Station, Merced Regional Airport, Airport Industrial Park, and the Parking Authority.
The Office of Economic Development stimulates and enhances the community’s economic base. Business development and job creation programs include recruitment of new businesses, expansion of existing businesses, and retention of existing businesses by maintaining a mutually beneficial relationship between the client company and local government.
The department coordinates economic development, business development, and marketing activities with local, regional, and state economic development organizations.
By participating in trade shows, conducting missions, attending conferences, and hosting promotional events, the office fosters relationships with site location consultants, brokers, and corporation real estate officers. The Office of Economic Development also serves as the City’s lead agency for the High Speed Rail Station Planning.
The City’s partnership with the University of California Merced, Small Business Development Center, WorkNet of Merced County is focused on retaining UC Merced graduates, clustering innovative business start-ups, job creation, and fostering local small business development.
MISSION
Keep Merced as the Center. Implement strategic actions that will have the most direct impact on improving the City of Merced’s economic growth and which continues to build Merced’s role as the region’s center for education, medical services, industry and professional/commercial services.
GOALS
◊ Facilitate business development (job creation and investment) and catalyst projects in Merced’s economic centers.
◊ Market Merced advantages to key markets, businesses, developers and site selectors to attract new investment and jobs.
◊ Collaborate with partners to create a positive business image and provide exceptional business support.
◊ Coordinate real estate and infrastructure development that will assist in expanding and attracting new business investment and jobs.
ECONOMIC DEVELOPMENT
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Center on a business-friendly
culture branding Merced as a go
to City for business investment.
Continue working with staff,
stakeholders, and partners making
enhancements to the entitlement and
permitting processes.
2. Engage the community with
regular updates on new projects,
happenings, and events related
to local economic development.
Provide information to the public
regarding economic development
efforts, projects, and programs on a
quarterly or more frequent basis using
social media and other forms of online
and personal outreach.
3. Coordinate High Speed Rail
Continue to be the clearinghouse for
High-Speed Rail and assist in station
planning as well as community impact.
4. Re-evaluate sites for future
industrial/business park
development potential.
Engage with local economic
development agencies about strategic
industrial/business park locations
including opportunities to form regional
facilities.
5. Participate in WorkNet of
Merced County and other job
training agencies to ensure the
local workforce is trained and
available for new jobs.
6. Partner with North Valley Thrive
and Merced County groups
7. Developing an inventory of
available sites to support
opportunities within the
community.
8. Continue working with a retail
consultant to conduct market
analyses, identify retail
opportunities, and assist in
conversations with developers
and retailers.
Advance ongoing job development and
attraction efforts between the
Department of Workforce Investment,
WorkNet of Merced County, Merced
County, and the California Jobs First
Fund program.
Meet quarterly with all countywide
Economic Development professionals
for strategizing alignment of studies.
Update local inventory opportunities
and creating a centralized source of
information for staff, leadership, and
external partners.
Meet monthly to review and exchange
information and needs of clients,
partnering at tradeshows, and updating
Merced demographics and analyses.
ECONOMIC DEVELOPMENT
2026-2027 BUDGET HIGHLIGHTS
The Office of Economic Development budget is transitioning to a staff level consisting of one Economic Development Associate and an Economic Development Administrator.
The Division will be overseen by the Deputy City Manager but will rely on the Administrator for the day to day activities. The core program of the Office of Economic Development emphasizes job creation through attraction, expansion, and competitive readiness. Resources will be committed to future economic development planning efforts such as focus studies for a new industrial/technology park, California High Speed Rail, and working with consultants to strengthen partnerships and Merced’s overall outreach. Completing identified goals and objectives relies upon support from economic development and site consultants.
AIRPORT INDUSTRIAL PARK
FUND NO. 5003
DIVISION NO. 6510
DESCRIPTION
The Economic Development Department promotes economic development activity in the Airport Industrial Park consisting of land sales and expansions of existing businesses. Installation, improvement, and maintenance of infrastructure are programs undertaken to assure existing, expanding and future industrial tenants will be well served in the Airport Industrial Park.
MISSION
The Airport Industrial Park provides opportunities for economic growth in Merced through sale of land to job generating industries that will benefit the community.
GOALS
◊ Encourage new job generating industry to locate at the Airport Industrial Park. ◊ Accommodate the expansions or necessary relocations of local industries.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Identify land in the Airport
Industrial Park owned by the
City requiring Surplus Land Act
clearance.
Prepare land for sales via clearance
through the California Surplus Land
Act.
2. Focus on investment
opportunities in the Airport
Industrial Park.
Continue marketing the Airport
Industrial Park and work with
businesses in the AIP for expansion
opportunities.
3. Re-evaluate the value of the
properties owned by the City of
Merced in the Airport Industrial
Park.
Contract for an Opinion of Value and
once completed, approach Council to
set new pricing at market rate levels.
4. Evaluate the environmental
condition of property located on
Hawk Drive.
Contract with a consultant to evaluate
the level of lead and mitigation on the
sites.
AIRPORT INDUSTRIAL PARK
2026-2027 BUDGET HIGHLIGHTS
The proposed budget for fiscal year 2026-2027 is substantially like that of the previous year. Professional services will include an environmental investigation and possible remediation of properties along the north side of Hawk Drive.
PARKING AUTHORITY
FUND NO. 9100
DIVISION NO. 2505
DESCRIPTION
The Economic Development Department oversees City owned parking facilities.
MISSION
The first priority in parking is to welcome customers and visitors with abundant, convenient parking; and secondly, to strive to meet the parking needs of employers and employees.
GOALS
◊ Provide abundant, convenient, and safe parking.
◊ Accommodate ever changing parking needs by adjusting and refining various designations of the existing parking supply to better serve the public.
OBJECTIVES PERFORMANCE
MEASUREMENTS/INDICATORS
1. Cater to customer and visitor parking
needs by evaluating time limit parking in
high demand and impacted lots, and
update the Municipal Code where
parking is concerned.
Establishing and implementing parking
time limits in heavily used areas.
2. Update signage in City-owned parking
lots complimenting the new welcome
signage.
Identify signage in City-owned parking lots
and parking garages that will need to be
replaced.
3. Reallocate parking inventory to ensure
sufficient public access and improve
overall utilization
Evaluate parking agreements and
negotiate the number of spaces as well as
space location in downtown parking
structures.
PARKING AUTHORITY
2026-2027 BUDGET HIGHLIGHTS
This budget is substantially similar to previous. As projects come to completion, new construction starts, and land uses intensify, demand for parking in the Downtown Core will continue to increase. Staff will consider the potential reallocation of parking in parking structures to accommodate the growing demand with an emphasis on serving customers and visitors.
TECHNOLOGY REPLACEMENT AND MAINTENANCE
FUND NO. 7009
DIVISION NO. 4700
PROGRAM
The Technology Replacement and Maintenance Fund is designed to support the upgrade of obsolete, malfunctioning, or outdated technology. Over time, as technology has become more integral to operations, the range of devices eligible for replacement through this fund has expanded. Items that qualify for replacement include PCs, large- scale printers, servers, storage devices, networking infrastructure, telephone systems, and more.
In 2008, The Technology Replacement and Maintenance Fund, was frozen to general fund departments due to austerity measures. Enterprise fund departments continued to contribute to the fund.
PUBLIC SAFETY CAPITAL IMPROVEMENT FUNDS
FUND NO. 5004
DIVISION NO. 3000
PROGRAM
Construction funding for new fire stations.
PUBLIC SAFETY CAPITAL IMPROVEMENT FUNDS
FUND NO. 5004
DIVISION NO. 3500
PROGRAM
Construction funding for new police stations.
REDEVELOPMENT AREA SUCCESSOR AGENCY
FUND NO. 8100
DIVISION NO. 2500
PROGRAM
City Council approved the City of Merced to be acting on behalf of the Successor Agency to the Redevelopment Agency for the City of Merced September 17, 2023. On behalf of the Successor Agency, the City now takes over the duties of preparing a “Recognized Obligation Payment Schedule (ROPS)” for the remediation of the former Redevelopment Property on R Street and provide administrative overview. After submission and approval of the ROPS, the City will receive funds from the State of CA Department of Finance to continue the R Street remediation project and the annual debt service payment of the Gateways 2015 Tax Allocation Refunding bond that is set to conclude in fiscal year 2038-2039.
These funds shall be used for the following:
1. Remediation Project; and
2. Administrative Charges; and
3. Bond Payments
UNIVERSITY CAPITAL CHARGE
FUND NO. 8005
DIVISION NO. 6000
PROGRAM
University Capital charges are paid by UC Merced to amortize the loan from the Infrastructure Bank for installation of water and sewer lines to the campus.