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Cit
y of Merced
Community Facilities District No. 2003-2
(Services)
Senate Bill 165 Reporting Requirements for
Fiscal Year 2024-25
Januar
y 14, 2026
Attachment 1
Community Facilities District No. 2003-2
Senate Bill 165 Reporting Requirements
Fiscal Year 2024-25
TABLE OF CONTENTS
Section Page
I. Introduction ...........................................................................................................................1
II. Senate Bill 165 Reporting Requirements ..............................................................................2
Appendix A: CFD No. 2003-2 Balance Sheet as of June 30, 2025 City of Merced Community Facilities District No. 2003-2 (Services) Senate Bill 165 Reporting Requirements Page 1
I. INTRODUCTION
City of Merced Community Facilities District No. 2003-2 (Services)
The City of Merced Community Facilities District No. 2003- 2 (the “CFD” or “CFD No. 2003- 2”) is located in the City of Merced (the “City”), in Merced County, in the State of California, approximately 132 miles south of Sacramento. On January 5, 2004, the City passed Resolution No. 2004-3, forming CFD No. 2003- 2. A successful landowner election was then held, authorizing the levy of the special tax. T he special tax funds general services authorized under the Mello-Roos Act which include, but are not limited to:
1) Public safety services, including police and fire protection. 2) Landscaping, sidewalk, park, and parkway maintenance (including lighting). 3) Flood control services.
4) Miscellaneous administrative fees and expenses.
CFD No. 2003-2 currently is made up of 51 distinct improvement areas throughout the City. As additional new areas within the City apply for development approval , those development areas will annex to CFD No. 2003-2.
The Mello-Roos Community Facilities Act of 1982
The California State Legislature approved the Mello -Roos Community Facilities Act of 1982 that provides for the levy of a special tax within a defined geographic area, namely a community facilities district, if such a levy is approved by two -thirds of the qualified electors in the area.
Community facilities districts can generate funding for a broad range of facilities and eligible services. These services include police protection services, fire protection and suppression services, library services, recreation program services, maintenance of roads, parks, parkways and open space, and flood and storm protection services. Special taxes can be allocated to property in any reasonable manner other than on an ad valorem basis.
City of Merced Community Facilities District No. 2003-2 (Services) Senate Bill 165 Reporting Requirements Page 2
II. SENATE BILL 165 REPORTING REQUIREMENTS
On September 18, 2000, former Governor Gray Davis approved Senate Bill 165 which enacted the “Local Agency Special Tax and Bond Accountability Act”. In approving the bill, the Legislature declared that local agencies need to demonstrate to the voters that special taxes and bond proceeds are being spent on the facilities and services for which they were intended. To further this objective, the Legislature added Section 50075.3 to the California Government Code setting forth annual reporting requirements relative to special taxes collected by a local public agency. The amount of special taxes collected and e xpended for the fiscal year 2024- 25 special tax levy is set forth in the table on the following page:
City of Merced Community Facilities District No. 2003-2 (Services) Senate Bill 165 Reporting Requirements Page 3
Fiscal Year 2024-25 Revenues*
Charges for Services $7,633,874
Investment Earnings $590,105
Miscellaneous $57,972
Total Revenues Collected $8,281,951
Fiscal Year 2024-25 Expenditures*
General Government $13,611
Public Safety $3,223,436
Public Works $1,258,188
Parks $4,537
Capital Outlay $20,014
Debt Service – Interest $6,268
Total Expenditures $4,526,054
Revenue Over (Under) Expenditures $3,755,897
Other Financing Sources (Uses)*
Transfer In $531,445
Transfer Out ($1,320,273)
Total Other Financing Sources (Uses) ($788,828)
Beginning Fund Balance $8,482,635
Ending Fund Balance $11,449,704
Net Change in Fund Balance $2,967,069
* Note: This is unaudited financial information.
APPENDIX A
CFD No. 2003-2 Balance Sheet
as of June 30, 2025
City of Merced
Balance Sheet
June 30, 2025
CFD Services
ASSETS
Cash, cash equivalents and investments 11,292,256
Receivables:
Interest Recievable 61,056
Due from other governments 515,645
Total assets 11,868,957
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 68,072
Other payables 61,412
Advance from other funds 289,769
Total liabilities 419,253
Fund Balance 11,449,704
Total liabilities and fund balance 11,868,957