A proposed one-cent sales tax that could be used to protect public safety services – while addressing a range of community needs from potholes to parks – will be decided by Merced voters on the Nov. 3 ballot.
Called the Vital Services Protection Measure, city officials say the sales tax will be used to make up for projected revenue losses in the coming years.
The Merced City Council approved placing the measure on the November ballot during Monday’s meeting, on a 6-1 vote. District 6 Councilmember Fue Xiong cast the lone dissenting vote.
The decision to put the measure on the ballot comes roughly one year after the Merced City Council decided to poll residents about the city’s top priorities and needs, in addition to putting together a subcommittee to study the issue.
For every dollar spent within city limits, one cent will be taxed, City Manager Scott McBride said during Monday’s city council meeting. If approved, it’s estimated to generate $18 million annually.
Because the measure is a general tax, the money that’s generated can be used for any purpose, with the city council determining how it would be spent.
Under state law, general taxes require approval by a simple majority of voters. In contrast, special taxes – which are earmarked for a specific purpose – require support by two thirds of voters.
Although how the money would be spent would largely be left up to city leaders, they were keen to detail a wish list of top needs.
Mainly, that includes the potential loss of firefighting personnel amid sunsetting federal grants, police staffing that hasn’t kept up with population growth, deteriorating roads and undeveloped park sites.
McBride said those top needs, which are outlined in the proposed ballot language, are parallel with the feedback the city received from residents.
The ballot language would ask voters to respond “yes” or “no” to the following question:
“Shall the measure to maintain local quality of life/general city services such as 911, police, emergency, medical, natural disaster response, responding quickly to neighborhood fires, retaining firefighters, gang prevention, addressing homelessness, fixing roads (and) potholes, and keeping parks safe/clean by establishing a one cent sales tax, providing approximately $18 million annually until ended by voters, with public disclosure, independent audits, citizen oversight, and all funds for Merced, be adopted?”
District 4 Councilmember Shane Smith, who sat on the measure subcommittee with Mayor Pro Tem Sarah Boyle and District 1 Councilmember Darin DuPont, said he believes it would be “a real mistake” not to give voters a chance to weigh in on that question – particularly since the city spent over $200,000 of general fund money conducting polling, surveys and research.
“The community told us what they want us to do more of. That’s how we populated this list,” Smith said. “This is a way for the residents to get more out of the city that they want.”
Smith also mentioned the recently-passed slumlord ordinance as a law that will require more funding, in order to be adequately enforced. “Our code enforcement department in 2025 had almost 2,000 calls. Halfway through the year they’ve already got 1,500. We need more code enforcement,” he said.
Questions arise about how money will be spent
Despite McBride’s presentation, some people raised doubts about how the money will be allocated, should the ballot measure pass.
In voting against putting the measure on the ballot, Councilmember Xiong said he doubts the city would use the money for anything other than the public safety departments.
“All of that money is just going to be used for police and fire. We know it,” Xiong said. “It’s disingenuous to include items in here, where we have no intention of actually putting money there. Parks – we know it’s not going to ever go there. It never has…We’re going to say these things and not actually mean it.”
Responding to Xiong, Merced Mayor Matt Serratto said while the police and fire departments certainly have important needs, he wanted to go “on record” as saying “there’s no way, I think, if this passes, everything should go to police and fire.”
Councilmember Boyle, who represents District 5, said funding is ultimately going to be needed to maintain parks and community resources, like the upcoming $10 million sportsplex in south Merced, Community Park 42, more commonly known as CP 42.
“All of that money is just going to be used for police and fire. We know it.”
Councilmember Fue Xiong
“Councilmember Xiong, you have a park in District 6 that hasn’t even been built yet. And so I feel like this money generated is going to help build those parks,” Boyle said. “We’ve heard it from many people over time (that) it always comes down to money…To say that everything is going to go to police and fire is just not true.”
Councilmember DuPont said while he doesn’t like the idea of increasing taxes, he supports letting the voters decide for themselves.
Still, DuPont said the city could do a better job marketing itself and bringing in new business, rather than putting the burden on taxpayers to increase revenue. “I challenge the city to bring better economic development, better marketing (and) better connections,” DuPont said.
Monday’s meeting attracted several critics of the measure who said the tax will lack real investment in local communities.
Some residents said during public comment that funding more fire and police personnel will not bring more affordable housing or parks projects to the city.
“I feel like we need more youth programs, more youth education, jobs,” said Adam Shane, a registered nurse in Merced. “I think that’s something we can all agree on – we would like to leave a better world for our kids and our grandkids.”
Another person who spoke during public comment said quality of life is not only measured by the number of officers on patrol.
“Councilmember Xiong, you have a park in District 6 that hasn’t even been built yet. And so I feel like this money generated is going to help build those parks.”
Mayor Pro Tem Sarah Boyle, responding to Councilmember Fue Xiong
“It’s measured by whether a young person has somewhere safe to go after hours, whether a family can find an affordable place to call home, and whether a parent can go to work without owning a car,” the resident said.
Prior to the council vote, District 3 Councilmember Mike Harris specifically asked for the ballot measure language to include youth services as one of the priorities that could benefit. On a motion from Smith, the council supported the inclusion of that ballot language.
SAFER Grants set to expire
A series of community discussions last fall and earlier this month illuminated the need to respond to a variety of public concerns, city officials said.
City staff conducted community surveys through the “Let’s Talk Merced” outreach program. About 59% of respondents said they would support the measure.
City expenses are expected to outpace revenue in the next five years. That comes as the federal SAFER grant for firefighters is set to expire in March 2027.
Without this funding, 24 city firefighter positions are at risk. Plus, even with new positions added over the last few years, police department staffing remains below where it was in 2009, city officials said.
“We don’t want to raise taxes, but we have to so that way we can provide these resources to our constituents,” District 2 Councilmember Yang Pao Thao said.
If approved, an existing citizens oversight committee will be involved, and spending will be disclosed and audited annually, city officials said.
The measure, if approved, would be in addition to the city’s public safety tax, Measure C, which was renewed in 2024. That half-cent sales tax will expire in 2044. City officials previously estimated that Merced would face a $7 million shortfall without the tax.
City officials haven’t said whether fire department officials will reapply to the SAFER grant.
