City of Merced
Budget 2026-27
1 FY 2026/27
Budget
City Budget Overview
General Fund
Measure C
Measure Y
Other Departments
Errata
2 Overview
3 Labor Negotiation Increases
included 4%
Maintenance, Supplies, and
Services <0%-2% increase
Methodology changes:
• New Grants
• Opioid Carryover
Parks and Community
Services – Balanced but
could have future
challenges
PC and Fleet Replacement
•Not included in the General Fund
•Included in Enterprise Funds and
other Special Revenue Funds
Includes Council Direction
from 6/1/26 Public Hearing
FY 2026-27 Budget Overview
Total City Budget $461.5 million
$69.2
$210.6 $59.3
$21.1
$101.3
General Fund
Enterprise Funds
Internal Service Funds
Measure Funds
Other Operating Funds
4 FY 2026/27 General Fund
Estimated Beginning Balance – July 1, 2026 $11,813,391 $11,813,391 $0 Budgeted Revenue $68,546,849 $67,230,559 $1,316,290
Operating Expenses $66,246,189 $66,222,614 $23,575
Operating Transfers $2,300,660 $2,300,660 $0
Total Operating Expenditures $68,546,849 $68,523,274 $23,575 Revenue over/under Expense $0 ($1,292,715) $1,292,715 Below the Line (Non-operating) $431,123 $401,123 $30,000 Future Planning $2,025,000 $2,025,000 $0
Prior Year Projects $200,824 $200,824 $0
Recommended Ending Balance – June 30, 2027 $9,156,444 $7,893,729 $1,262,715 Less Committed Funds-5% Contingency Reserve $3,427,342 $3,426,164 $1,178 Total Available Funds – June 30, 2027 $5,729,102 $4,467,565 $1,261,537 5 Council
Direction
City Manager
Recommended Difference
General Fund Transfers
$’s in Millions
6 07/08A 08/09A 09/10A 10/11A 11/12A 12/13A 13/14A 14/15A 15/16A 16/17A 17/18A 18/19A 19/20A 20/21A 21/22A 22/23A 23/24A 24/25A 25/26B 26/27B Housing Admin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.08 $0.03 Airport $0.08 $0.20 $0.07 $0.10 $0.06 $0.02 $0.06 $0.05 $0.04 $0.08 $0.00 $0.04 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.37 $0.35 Development Services $0.00 $0.00 $0.57 $0.70 $0.50 $0.30 $0.96 $0.46 $0.25 $0.54 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Parks and Recreation $2.43 $1.80 $1.27 $1.10 $0.85 $0.50 $0.67 $0.75 $0.76 $1.00 $1.02 $1.32 $1.34 $1.13 $1.34 $1.21 $1.33 $1.62 $1.70 $1.78 $0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Parks and Recreation Development Services Airport Housing Admin $2.00
$1.91 $1.90
$1.41
$0.82
$1.69
$1.26
$1.05
$1.62
$1.02
$1.36 $1.34
$1.13
$1.34 $1.21 $1.33
$1.62
$2.15 $2.16
Below the Line Expenses (Non-Operating)
7 Enterprise Resource Planning (ERP) $ 60,623
Election Cost 20,000
Compensation Study 150,000
Community Funding 30,000
Arts Projects (carryover) 70,500
Bob Hart Fountain Repairs 20,000
Park Maintenance ¾ Ton Truck 80,000
Subtotal $431,123 Economic Development Opportunity Fund 405,000
Affordable Housing Fund 607,500
Trust 115-Pension 1,012,500
General Fund Reserve – 25% set aside 0 Total $2,456,123
Funding Financial Resources
8 Fiscal Year 24-25 (audited) unreserved fund balance at June 30 $ 7,939,657 Fund 1001 GF Reserve additional for FY 26-27 budget 0
5% GF Contingency Reserve for FY 26-27 budget 3,427,342 Excess over General Fund Balance $ 4,512,315
Amount Rounded $ 4,500,000
45%
45% Excess $ 2,025,000
50% of 45% excess to Trust 115 for Pension Liability $ 1,012,500 30% of 45% excess to Affordable Housing 607,500
20% of 45% excess to Economic Development Opportunity 405,000 Total $ 2,025,000
Set-Aside Balances
$’s in Millions
9 $9.16
$17.14
$10.79
$1.45 $1.17
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
General Fund GF Reserve Trust 115 Pension Ec Dev Op Fund Affordable Housing Fund FY 26/27 Balance
$1.0
$3.4
Contingency
$0.61$0.40
Measure C 10
Fund 2001-Old
Measure C
Fund 2030-Public
Safety
Fund 2031-
Roads Total
Beginning Balance 7/1/26 $3,890,521 $1,862,885 $643,266 $6,396,672 Sales and Use Tax 0 8,852,100 465,900 9,318,000
Other Revenue 158,500 0 7,420 165,920
Total Budgeted Revenue 158,500 8,852,100 473,320 9,483,920 Transfers 145,000 597 0 145,597
Operating Expenses 1,287,712 9,137,094 3,765 10,428,571 Acquisitions 0 0 530,000 530,000
Capital Improvements 1,670,388 0 0 1,670,388
Total Budgeted Expense 3,103,100 9,137,691 533,765 12,774,556 Ending Balance 6/30/27 $945,921 $1,577,294 $582,821 $3,106,036 *Meets GFOA Recommended Minimum
Measure Y
11 Police-20% Fire-20%
Parks & Rec-
20%
Discretionary–
40% Total
Beginning Balance
7/1/26
$73,014 $351,201 $179,855 $109,781 $713,851
Estimated Tax Revenue 321,590 321,590 321,590 643,180 1,607,950 Estimated Other
Revenue
5,050 16,470 2,000 8,500 32,020
Estimated Transfers-In 348,101 (348,101) 0
Estimated Transfers-Out 321,590 321,590 643,180
Estimated Expenses 378,441 483,111 442,101 0 1,303,653
Ending Balance
6/30/27
$21,213 $206,150 $87,855 $91,770 $406,988
Parks & Community Services
Balancing the Operating Budget
Measure Y 20% Parks and Recreation $321,590
Measure Y 50% of 40% Discretionary $321,590
General Fund Transfer
$68,284 4% annual increase
$1,775,372 Total GF Transfer
Field Equipment
Mule Gator $20,000
Tractor $30,000
Lawn Mower (16ft wide) $20,000
Turf Tank Lease $15,000
Storage Container $5,000
Trailer $2,500
12 Additional Revenues
Council Approved Rate Increases
CP42 Field Rentals $60,000
Zookeeper 3 yr Donation
Yr 2 cost of zookeeper $76,200
MCSD Contribution
Youth Sports $196,850
CVOF Grant
Outdoor Recreation Program $124,725
CFD Special Tax
6,423 Parcels to be Levied $240,640
Police – 143 Positions (98 sworn officers)
13 General Fund
Total Funded Positions =109.30
(67.3 sworn/42 non-sworn)
Measure C
Total Positions = 23.49
(20.49 sworn/3 non-sworn)
4 Part-Time CSO’s for Code
Enforcement
Duty Weapon Replacements
$105k
Operating Costs $1M -18%
increase
CFD
Total Positions = 10.21 sworn
Measure Y
5 Part-Time CSO’s for Code
Enforcement
Fleet Repairs (unanticipated)
$75K
Fire – 93 Positions (88 sworn officers)
14 General Fund
Delete 2 Battalion Chiefs (40
hr)
Add 2 Division Chiefs
Fire Chief Equity Salary
Adjustment (9%)
SAFER Grant Positions -24
Grant Expire March 2027
Total Non-SAFER Funded
Positions =52.18 (47.18
sworn/5 non-sworn)
Measure C
Total Positions 11.3 sworn
Operating Costs $1.1M-
8% increase
CFD
Total Positions = 5.52 sworn
Measure Y
2 Cardiac Monitors $120k
Weed Abatement $80k
Narcotics Safe $11k
Administration
City Council
Recommended Stipend $1000/$1,250
month
Added $23,575 for increase
City Manager
2 Part-Time Interns
Delete 2 Peer Support Specialist
CalVIP Grant Expired 12/31/25
Compensation Study $150k
City Clerk
1 Part-Time Deputy City Clerk
SB707 and Public Records Requests
15 Administration
16 Human Resources
Add HR Director $217K
GF (44%) 95K
Other Funds (56%) $122K
Info Technology
Add Cyber Security Specialist II $154k
GF (45%) $69k
Other Funds (55%) $85k
End of Life Server Replacements $80k
End of Life Wireless Access Point Replacements $30k
ERP Allocation $0
Other
$2 million RDA Residual revenue
Arts funding carryover $70,500
No allocation for Community Funding (Added $30k
per Council Direction)
Downtown/Economic
Dev/Airport
Property Based Improvement
District (PBID)-2% increase
Tourism Based Improvement
District (TBID)-3% increase
Sale of Bell Station
(added 3-month budget $28k)
Airport Deficit
Completion of new
Terminal
New carrier-Contour Air
GF Transfer $354k
Other Opportunities to
increase revenue
$20k Contingency
17 Public Works-Staffing
18 Add 3 Maintenance Worker I/II-Streets (1) and
Refuse (2)
Delete Water Distribution Quality Assurance
Tech and add Water Distribution Operator III
Add Storekeeper-Fleet Maintenance $94k
GF (17%) $17k
All other funds (77%) $77k
Parks
Measure Y -40%
Bike Path Maintenance $53K
Tree Trimming $100k
Park Maintenance $75k
McNamara Pool Fence $35k
Ada Givens Pool Fence $35k
Playground Deductibles
Frederick Douglas $25k
Kingsland $25k
Cellular Tower Agreement
Rahilly Park $30,000
19 Capital Projects
20 Streets
Bellevue Road Bike Path-New $300k
(UCM)
APS Polara-Push Buttons @ Schools-add
$100k
Downtown Concrete Light Poles-add
$40k
Craig Drive Rehab-New $200k
Roads Projects Available Funding
Fund Funding Source PTBD Unappropriated Total
2007 Gas Tax-SB1 $ 3,315,841 $3,315,841
2008 Measure V-Alternative Modes 759,145 759,145 2009 Measure V-Local Transportation 3,794,680 3,794,680 2031 Measure C-Roads 582,822 582,822
3006 Surface Transportation Program (STP) 3,241,991 3,241,991 3007 Local Transportation 209,269 209,269
Total $11,320,926 $582,822 $11,903,748
21 Errata List
22 Description Amount
Add Increase to Council Stipend $23,575
Add Community Funding $30,000
General Fund Reserve-5% Contingency increases based on
increasing operating expenses $1,178
Add Transfer from General Fund Reserve to General Fund to cover part of the deficit. $733,682
Add Transfer from Trust 115 for Pension to General Fund to cover balance of the deficit. $582,608
Add Bell Station budget $27,690
Revise CDBG HUD Allocation $145,361
Revise HOME HUD Allocation $102,366
Next Steps
23 Re-open the Public Hearing
Take Public Comment
Adopt a Motion Approving
the FY 2026/27 Budget
24 Questions