Report Prepared by: Juan Olmos, Deputy Director of Public Works Department
Title
SUBJECT: Approval of a Supplemental Budget Appropriation from the Unreserved, Unencumbered Fund Balance of the General Fund in the Amount not to Exceed $1,346 and Transferring to the Fahrens Park Maintenance District to Cover the Assessment Balloting Proceeding Noticing Costs
REPORT IN BRIEF
Considers approving a supplemental budget appropriation from the Unreserved, Unencumbered Fund Balance of the General Fund in the amount not to exceed $1,346 and transferring to the Fahrens Park I Maintenance District to cover the assessment balloting proceeding noticing costs.
RECOMMENDATION
City Council - Adopt a motion approving a supplemental budget appropriation from the Unreserved, Unencumbered Fund Balance of the General Fund in the amount not to exceed $1,346, transferring to Fund 4021- Fahrens Park Maintenance District and appropriating the same to cover the assessment balloting proceeding noticing costs.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Return to staff with specific direction; or,
3. Deny.
AUTHORITY
Chapter 26 of Part 3 of Division 7 of State of California Streets and Highways Code provides the applicable general law for Maintenance Districts; and,
Article I (alternative method for the levy of benefit assessments) of Title 13, Division VIII, of the Merced Municipal Code (MMC) dealing with Maintenance Districts, provides for subsequent modification to existing Maintenance Districts; and,
Initiative Measure (Proposition 218, Sections 2,3,4,5, and 6) approved at the November 5, 1996 election, and also known as the “Right to Vote on Taxes Act” provides for assessment ballot proceedings.
DISCUSSION
Public Works staff presented to the Public Works, Road, and Infrastructure Subcommittee of City Council on September 30, 2026, to discuss and seek direction regarding the seven Maintenance Districts identified as underfunded following the completion of the Fiscal Year 2026-2027 budget. At that meeting, the direction received from the subcommittee was to proceed with the process of a potential assessment increase for the Fahrens Park I Maintenance District beginning after the November election. The other Maintenance Districts identified as underfunded will be revisited later in the Fiscal Year.
The City Council authorized an assessment ballot hearing for Fahrens Park I in 2025. Consequently, the property owners voted not to approve an increase to their assessment.
Since that time, the Public Works staff has provided the most service allowed to Fahrens Park I by the limited revenue available. Irrigation systems have been turned off except for the months of June, July, and August; the landscape maintenance services contract has been reduced to quarterly service; and the City’s employee labor hours for irrigation repairs and the District’s storm pump station have been reduced.
Although these stringent measures were adopted, an assessment ballot proceeding is necessary to sustain existing landscaped areas and cover storm drain pump maintenance and operation expenses.
Prior to the formal ballot assessment proceeding, staff will conduct various forms of outreach and hold informational meetings with the property owners regarding the proposed assessment increase. These efforts will focus on educating property owners on the formation of the District, expenses covered by the District Assessment, and providing ample time for questions and conversations regarding the services and maintenance provided. Public Works staff will come back to Council at the conclusion of these efforts to share outcomes, the proposed District Assessment, and resolution to be adopted that will authorize the ballot assessment proceeding and set the public hearing date.
IMPACT ON CITY RESOURCES
Balloting expenses are recovered in the approved assessment levy from the Maintenance District’s operating Fund, if successful. Conversely, if unsuccessful the General Fund will cover the expense.
The supplemental appropriation will require 5 affirmative votes.
Council will have the opportunity to consider a motion on the Fahrens Park I budget following the close of the public hearing.
ATTACHMENTS
1. Presentation