Merced Tax Transparency Commission Meeting - May 12, 2026

The Merced Tax Transparency Commission met on May 12, 2026, at 6:00 PM in the City Council Chamber. The meeting covered consent calendar approvals, quarterly financial reports for Measure C and Measure Y, review of the City Manager's recommended budgets for fiscal year 2026/2027, and updates on road pavement and street lighting projects. All votes were unanimous, with no public comments received.

Consent Calendar

• Minutes Approval (26-415): Approved the Tax Transparency Commission minutes from February 10, 2026.
• Attendance Report (26-422): Approved and filed the annual attendance report.

Public Comments & Testimony

• No public comments were submitted electronically or presented in person.

Discussion Items

• Measure C Revenue and Expense Reports (F.1): Staff presented the quarterly update as of March 31, 2026. Revenue for the fourth quarter of 2025 was $2.5 million, representing 27.9% of the annual budget of $9.1 million. Quarter-over-quarter cash basis revenue was up 9.6%, and economic basis up 9.1%. Revenue increases were attributed to new retail openings.
• City Manager Recommended Measure C Budget for FY 2026/2027 (F.2): The proposed budget includes three funds (Fund 2001 old Measure C, and two new special tax funds for public safety and roads). Beginning balance estimated at $6.4 million with $9.3 million in projected sales tax revenue. Personnel costs account for 63.7% of expenditures. Highlights include funding for four part-time code enforcement positions ($105,000 for duty weapon replacements), a shared boom truck ($200,000 for streets division), a 10-wheel dump truck ($250,000), and capital carryovers for quiet zones and safe streets lighting. A budget shortfall is expected; staff noted that seven positions were moved from the general fund into Measure C in the prior year, and an additional $2,500 in operating costs may be transferred.
• Measure Y Revenue and Expense Reports (F.3): Updated quarterly financials for cannabis tax. Revenue continues to decline, with a decrease of over $50,000 in the first quarter of 2026 compared to the same quarter in 2025. The last cannabis store on Motel Drive has not yet opened but is expected by June 2026.
• City Manager Recommended Measure Y Budget for FY 2026/2027 (F.4): Estimated FY 2025/2026 revenue is revised downward to about $1.6 million (from $1.68 million). Proposed spending allocations: Police (20%) – five part-time code enforcement officers ($100,000), fleet repairs ($75,000); Fire (20%) – cardiac monitors ($120,000), weed abatement ($80,000), narcotics kits ($11,000); Parks and Recreation (20%) – equipment purchases (mule gator, tractor, lawnmower, etc.) and programming, supplemented by grants (Central Valley Opportunity Fund, Merced City School District contract for youth sports), rate increases, and a special tax from 6,423 parcels. The remaining 40% discretionary is split between parks maintenance (tree trimming $100,000, bike path maintenance $53,000, playground deductibles $25,000) and fences at McNair and Ada Givens pools ($35,000 each). Ending balance projected at $406,000.
• Update on Road Pavement Projects (G.1): City Engineer Daryl Jordan presented a spreadsheet of road projects. Three projects are funded by Measure C: Safe Streets Light Retrofit ($735,000 remaining for 8–900 additional lights), R Street (Olive to Northwood) intersection upgrade and rehabilitation, and BNSF Quiet Zones (Highway 59, Canal Street, Glenn Avenue, M Street, K Street) to reduce train horn noise. McKee Road is under construction with concrete work and pavement rehabilitation expected over the next two months.
• Update on the Street Light Project (G.2): The LED retrofit project has replaced 2,500 lights in the first phase, added 800 lights via a previous change order, and plans a third change order for 8–900 more lights using remaining Measure C funds. Focus areas include dim neighborhoods and arterial corridors.

Key Outcomes

• All consent calendar items and action items (F.1–F.4) were approved unanimously by voice vote: Commissioners Murphy (moved), Johnson, Takar, Kistecki, and others.
• For Measure C and Measure Y budget items (F.2 and F.4), the commission voted to accept the reports as information only, rather than adopting a formal recommendation to the City Council as suggested in the agenda. This discrepancy between the agenda (which called for a recommendation) and the commission's action was noted.
• No items were added to future agendas (H.1), and commission comments were limited to a clerical remark about voting.
• The meeting adjourned at approximately 7:15 PM.