Merced City Council Meeting - June 2, 2025

The Merced City Council met on June 2, 2025, starting at 6:00 PM and adjourning at 11:41 PM, to conduct a public hearing on the proposed Fiscal Year 2025-26 budget, take action on employee salary amendments, public safety positions, and funding for the Stephen Leonard Youth Center, among other items. The meeting included ceremonial proclamations, public comments, and the adoption of the City Council's FY2025/26 Goals and Priorities.

Consent Calendar

• Approved the consent calendar with a 7-0 vote, pulling items F.7 (city attorney/manager/finance officer salary amendments), F.10 (police patrol unit equipment), and F.13/F.14 (Crossing at River Oaks Phase 5 & 6 final maps) for separate consideration.
• F.7: Approved 6-1 (Council Member Xiong dissenting) to adopt resolutions amending salary ranges for City Attorney, City Manager, and Finance Officer, effective June 9, 2025. City Attorney stepped out during the vote.
• F.10: Approved 6-1 (Council Member Xiong dissenting) to award a contract to Dana Safety Supply for $187,377.78 to outfit 10 new patrol units.
• F.13 & F.14: Approved 6-0 (Council Member Smith recused due to a conflict) the final subdivision maps and subdivision agreements for 32 and 20 lots respectively.

Public Comments & Testimony

• Kim Garner (Central Valley Opportunity Fund) reported on stakeholder meetings for the Parks Open Space Master Plan, noting enthusiasm and progress.
• Erick Serrato (Merced Downtown Neighborhood Association) thanked the council for downtown investments and advocated for beautification, quiet zone advancement, and neighbor connections.
• Brian Arechiga urged the city to address feral cat overpopulation, citing potential violation of the Endangered Species Act, and requested a trap-neuter-return program.
• Nathan Alonzo (PG&E) announced that PG&E filed a general rate case with no increase for 2027-2030 and reported lower residential electricity prices.
• During the budget public hearing, several residents spoke:
  • Eddie Rodriguez encouraged sustained arts funding.
  • Hugo Castro-Ponce opposed using affordable housing funds to cover deficits, advocated for a rental registry/inspection program.
  • Ana Quintana-Ceja supported rental registry, home rehabilitation, homebuyer assistance, South Merced projects, and suggested reallocating Measure Y discretionary funds to parks.
  • Maria Calderon raised concerns about water, sewage, and road conditions on South P Street.
  • Robert Rodriguez described lack of management and maintenance at his apartment complex.
  • Andrea Uribe urged $5M for street improvements in disadvantaged communities and $1.5M for a South Merced community-specific plan.
  • Ashley Marie Suarez requested better community engagement, a rental registry, $2M for mobile home rehabilitation, and $800,000 to expand the first-time homebuyer program.
  • Curtis Thomas criticized sprawl and requested a citywide value-per-acre analysis for the General Plan update.
  • Colton Dennis advocated for arts funding, noting that art installations reduce vandalism costs.
• For agenda item H.4, Colton Dennis and Merced County Supervisor Josh Pedrozo spoke in support of a lighting upgrade grant for the Merced Multicultural Arts Center.

Discussion Items

• FY 2025-26 Budget Public Hearing (G.1): Finance Officer Venus Rodriguez presented the proposed $438.5 million citywide budget, with a general fund deficit of $430,000. Key issues: freezing police and fire positions, using Measure C funds, Trust 115, and reserve policies. Council held extensive debate and passed several motions (see Key Outcomes). The hearing was continued to June 16, 2025.
• Maintenance Districts (H.1): Deputy Director Juan Olmos presented Engineer’s Reports and budgets for 39 districts. Council approved a motion seeking public input without action, setting the public hearing for June 16.
• Stephen Leonard Youth Center (H.2): City Surveyor Joe Cardoso presented a $504,291 funding request ($350,000 from South Merced General Fund, $154,291 from Economic Development Opportunity Fund) for repairs and upgrades. Council debated the use of economic development funds; a motion to approve $350,000 plus $29,000 for a room divider passed 6-1, with a direction to return with a stronger proposal for the remainder.
• City Attorney Receivership Report (I.1): City Attorney Craig Cornwell reported on 11 receivership cases, noting a $96,354.93 financial recovery this fiscal year. Key cases include 131 Main Street (challenges with defunct corporation and receiver replacement) and Merced Inn & Suites (owner making progress under court supervision).
• FY 2025/26 Goals and Priorities (H.7): City Manager Scott McBride presented the document covering fiscal stability, public safety, future planning, economic development, pedestrian safety, affordable housing, capital projects, governance, and parks. Approved 6-1 (Council Member Xiong dissenting).

Key Outcomes

• Public Safety Positions:
  • Motion to fund one frozen firefighter position using Measure C funds passed 6-1 (Xiong dissenting).
  • Motion to fund all listed General Fund positions (lead dispatcher, community services officer, additional police officer, and one dispatcher) using Measure C passed 5-2 (Mayor Serratto and Council Member Xiong dissenting).
• General Fund Reserve Policy: Motion to explore reducing the reserve policy passed 7-0.
• Affordable Housing Trust Fund: Motion to change policy to allow administrative services for affordable housing projects passed 6-1 (Xiong dissenting).
• Zookeeper Position: Motion to retain the full-time zookeeper pending available funds passed 6-1 (Xiong dissenting).
• Arts Funding: Motion to allocate $75,000 to arts projects passed 7-0.
• Community Funding: Motion to allocate $30,000 for community funding passed 5-2 (Council Members Dupont and Smith dissenting).
• Stephen Leonard Youth Center: Motion to approve $350,000 from South Merced General Fund and $29,000 from Economic Development Fund for the room divider, with staff to return with a stronger proposal for remaining funds, passed 6-1 (Xiong dissenting).
• Grants Approved:
  • H.3: $12,585 from SHSGP for police radio system unanimous.
  • H.4: $14,428 from Merced County for Multicultural Arts Center lighting unanimous.
  • H.5: $84,103 CMAQ grant for multi-use path preliminary engineering passed 6-0 (Xiong absent).
  • H.6: $750 USTA grant for tennis equipment unanimous.
• Adjournment: 7-0 at 11:41 PM.

Future Agenda Items

• Council Member Smith requested discussion on Goals & Priorities, Town Hall process, and a potential two-year budget cycle at the first meeting in August (seconded by Harris).
• Smith also requested discussion on ceremonial matters and letters of support at the first meeting in July (seconded by Dupont).