Merced City Council Strategic Planning Session on Goals and Priorities, January 31, 2026

On Saturday, January 31, 2026, the Merced City Council held a special strategic planning session from 9:00 AM to 11:38 AM at the Merced Civic Center to discuss FY 2026/2027 goals and priorities, the five-year financial forecast, capital improvement funding, and carryover projects. The session was discussion-only. City Manager Scott McBride and Finance Director Venus presented the budget outlook; councilmembers shared individual priority lists; Fire Chief Casey Wilson reviewed the SAFER grant and fire station issues. Broad consensus emerged on continuing existing priorities rather than adopting large numbers of new initiatives.

Budget and Five-Year Forecast Presentation

• Finance Director Venus presented a preview of the five-year forecast, with more detail scheduled for the next Monday evening council meeting. Revenue assumptions included: most smaller revenues growing 1–3%; sales tax 3% per year; property tax 5–6% per year; 2% RDA residual growth; no new grants; no revenue included after the county fire service stopgap agreement expires in December 2026; SRO contracts assumed to continue; and parks program revenues based on council-approved December 2025 fees.
• Expenditure assumptions included no new positions or programs, labor increases only in the first year because MOUs expire, benefit increases of 10–11%, workers' compensation increases of 8%, general liability increases of 10–12%, CalPERS unfunded liability charges of 29–50% of salaries, 2% non-personnel inflation, 4% annual general fund transfers to parks, and the 25% general fund reserve set-aside. No funding was included for PC/fleet replacement or economic development/affordable housing set-asides.
• Key projected challenges: SAFER grant expiration in March 2027, equal to $3–4 million per year for 24 firefighters; removal of the county fire agreement of a little over $300,000 per year; a parks and recreation position costing about $112,000 annually losing grant funding; a zookeeper position partially funded by a $200,000 private donation over three years; cannabis tax continuing to decline; Measure C unable to support the seven added public safety positions by 2027–28 and failing to meet the GFOA recommended minimum in all five years; development services running a deficit of about $1.5 million per year, with a fee study potentially adding about $1 million; and general fund deficits in the last three years of the forecast once reserves and the 5% contingency are set aside. Personnel is about 75% of general fund expenditures.
• CIP and road funding available for the next budget was presented as about $9.9 million for roads and about $125 million total for other capital categories including airport, public safety, wastewater, water, and facility charges.
• Mitigation options included increasing development services and airport fees, reviewing a new CFD and special tax rate, business license audit and tax restructure, managing fleet additions, using RDA residual, and evaluating the feasibility of a ballot measure.

Fire, SAFER Grant, and Station Discussions

• Fire Chief Casey Wilson said SAFER funds 24 firefighter positions until March 2027. Not all 24 positions would need to be fully replaced because of vacancies and transitions; 16–19 personnel would be needed to open Station 6 and maintain current staffing including Squad 53. Approximately 12 personnel are needed to staff a station, plus six for the squad, plus relief coverage.
• The city will likely apply for the next SAFER grant NOFO in April 2026, but back-to-back SAFER awards are uncommon and the city is not banking on it.
• The county mutual aid contract expires at the end of calendar year 2026, and negotiations are expected to begin soon. New AMR advanced life support service at all five stations is expected mid-year.
• Station 54 relocation to southeast Merced is underfunded and requires a study; Station 56 remains a high priority with a roughly $3 million funding gap. City Manager McBride mentioned exploring the HUD 108 program to help close that gap.

Councilmember Goals and Priorities

• Councilmember DuPont synthesized department management goals and objectives into five priorities: ethical leadership and open government; high-quality core services and public safety; infrastructure maintenance and asset stewardship; housing, community wellness, and economic development; and long-term fiscal health and workforce stability. He recommended aligning council priorities with department objectives rather than adding new unfunded directions.
• A District 2 councilmember highlighted lighting, park safety, roads, sidewalks, drainage, crosswalk and bike lane safety, police staffing, and youth development programs, citing specific District 2 locations such as MLK/11th/12th Street crossings, Canal/Chow and M/Chow flooding, A Street near Tenaya Middle School, and dark park areas.
• Councilmember Harris urged increasing revenue, particularly by developing commerce along Highway 99 and supporting a potential high-speed rail station in southeast Merced. He argued downtown revitalization alone would not generate enough revenue, supported grant-writing capacity, Safe Streets and Roads for All grants, UC Merced partnerships to make downtown more of a college town, public safety partnerships, Station 56 financing, and community events such as a Renaissance Fair at Applegate Park.
• Councilmember Smith supported finding a pathway for street lights in neighborhoods without them, including neighborhoods in District 4 around Alexander Olive. He favored a standing committee to develop a lighting district or assessment structure, but cautioned against always asking residents to pay more. He advocated focusing on carryover tasks such as county island annexation, Station 56, and high-speed rail rather than new initiatives, and asked again for a council internship program, suggesting the youth council may be past its time.
• Mayor Pro Tem Boyle emphasized bike path lighting, especially Black Rascal Creek under the G and R Street bridges, code enforcement, and a 'doing business with the city' workshop to help small and food vendors get business licenses and connect with county resources.
• Councilmember Jean gave a detailed list including post-SAFER fire planning, high-speed rail, more department staffing, a dedicated grant writer, Merced Connect app accountability, county island annexation, public EV charging, a special events ordinance to reduce police overtime, graffiti abatement and higher arts funding, pedestrian safety and sidewalks on G Street, youth jobs funding, Valley Children's Hospital property accountability, more trash bins, local homeownership, parks and community services as the face of city events, park restrooms, lights and drinking fountains, and re-evaluation of the M/Buena Vista/Donna intersections and the M Street bike path.
• The Mayor added priorities including animal control volunteer partnerships, Bear Creek safety and cleanup, expanding the downtown ambassador model to the creeks, Bellevue Ranch and vacant park sites, downtown parking enhancements, MLK entry improvements, surplus land disposition, a wrong-way bicyclist ordinance, park rangers as a possible police relief, a Parsons corridor decision, Bob Hart Square activation, and anti-violence and youth programs. On downtown parking, he noted about 96 new diagonal parking spots, roughly 10 lost at Bob Hart Square, for a net gain of about 86.

City Manager's Additional Items and Next Steps

• City Manager McBride listed spring 2026 items needing attention before the next fiscal year: extending the county tax-sharing agreement that expires in August; supporting new social media staff; considering bonding against Measure V allocations for large road projects, potentially $10–15 million on a one-time basis; closing the Station 56 gap via HUD 108; deciding what to do about the remaining unapproved maintenance districts; improving the Merced Connect app; and applying for school-area pedestrian safety funding in the spring.
• During a streetlight funding discussion, a city official noted five of 12 maintenance districts voted to increase rates; later, City Manager McBride described five of seven maintenance districts as approved. The transcript is inconsistent on this point and the discrepancy was not resolved during the meeting.
• No formal votes were taken. The City Manager recommended forming a council subcommittee to refine the priorities, as was done last year. Councilmembers broadly agreed to continue that process. The meeting adjourned at 11:38 AM.