Merced city officials plan to leave some city positions unfilled during the next fiscal year so that it can balance its $438.5 million budget.
“We’ve had some challenges in balancing the budget,” said Venus Rodriguez, finance officer for the city of Merced, explaining that there will be deferred maintenance. “It’s not a lot of big new things in this budget. It really does maintain a status quo-type of a budget, mostly for operating costs.”
The proposed 2025-26 budget, presented by the city manager and finance officer last week at the Merced City Council meeting, funds 553 positions, seven fewer than the total number of proposed positions. Those positions, including four police officers and a dispatcher, affect the general fund, which stands at $68.4 million and faces a nearly $430,000 deficit in the proposed budget.
After negotiations with labor groups this last year, the city is facing rising costs due to a 4% increase to base salaries for city employees.
Additionally, maintaining a sustainable parks and community services budget remains a challenge for the city, especially as cannabis tax revenue lags this year at $1.6 million, about $200,000 less than last year. That decrease means less funding for recreation programming.
Those proposed cuts include a full-time zoo keeper position and the elimination of summer and sports camps.
The city budget will be discussed at two more city council meetings before coming to a vote, scheduled for the second meeting in June. For more information on the proposed budget, watch the meeting and view the presentation on the city’s website.