Report Prepared by: Jeff Frederick, Public Works Manager-Tax Services
Title
SUBJECT: Public Hearing Assessment Ballot Proceeding - Campus North, East College Homes, Fahrens Park I, Hansen Park, Merced Auto Center, Northwood Village, Oakbrook, Oakmont #3, Olivewood, Pleasanton Park, Quail Creek, and Ridgeview Meadows Maintenance Districts
REPORT IN BRIEF
Considers conducting a public hearing to hear public testimony regarding proposed assessment increases on January 20, 2026, and continue hearing to allow staff sufficient time to tally the ballots, and report the results at the February 2, 2026, Council meeting.
RECOMMENDATION
City Council - Adopt a motion:
A. Conducting a Public Hearing for the Campus North, East College Homes, Fahrens Park I, Hansen Park, Merced Auto Center, Northwood Village, Oakbrook, Oakmont #3, Olivewood, Pleasanton Park, Quail Creek, and Ridgeview Meadows Maintenance Districts to allow for public testimony on proposed assessment increases; and,
B. Continuing Public Hearing until Monday, February 2, 2026, to allow staff sufficient time to tally the ballots and report the results at the February 2, 2026, City Council Meeting.
Body
ALTERNATIVES
1. Approve as recommended by the Director of Public Works; 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 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.
CITY COUNCIL PRIORITIES
Addresses Council’s priority of Financial Strategy and Outlook by conducting the Proposition 218 process to address unsustainable maintenance districts.
DISCUSSION
It has been determined the Campus North, East College Homes, Fahrens Park I, Hansen Park, Merced Auto Center, Northwood Village, Oakbrook, Oakmont #3, Olivewood, Pleasanton Park, Quail Creek, and Ridgeview Meadows Maintenance Districts do not have sufficient Fund balances to cover necessary operation and maintenance service costs to these Districts.
In order to increase levies an assessment ballot proceeding must be held to obtain property owner approval in advance of any increase in annual levy.
On November 3, 2025, Council adopted Resolution No. 2025-64, authorizing an assessment ballot proceeding for Campus North, East College Homes, Fahrens Park I, Hansen Park, Merced Auto Center, Northwood Village, Oakbrook, Oakmont #3, Olivewood, Pleasanton Park, Quail Creek, and Ridgeview Meadows Maintenance Districts do not have sufficient Fund balances to cover necessary operation and maintenance service costs to these Districts.
A summary of the current and proposed assessment amounts required to maintain the current level of service are listed below:
District Name Current Assessment Proposed Assessment
Campus North $43.13 $138.36
East College Homes $27.64 $52.91
Fahrens Park I $31.58 $414.82
Hansen Park $57.22 $109.61
Merced Auto Center $126.39 $138.95
Northwood Village $39.46 $81.01
Oakbrook $11.09 $18.34
Oakmont #3 $115.97 $191.20
Olivewood $51.95 $203.34
Pleasanton Park $59.06 $157.27
Quail Creek $142.07 $198.18
Ridgeview Meadows $32.48 $78.03
Voting is determined by the proportionate share of each ballot cast based on a property’s assessed value of public improvement and services. Law prohibits opening or tallying of the ballots prior to the start of the Public Hearing.
As a result of this law and due to the large number of anticipated ballots, the Public Hearing will be continued and staff will tally the ballots and report the results at the scheduled City Council meeting on Monday, February 2, 2026. The City Clerk’s Office will count the ballots beginning at 8 AM on Wednesday, January 21, 2026, in the Sam Pipes Room located on the first floor of City Hall, 678 W. 18th Street, Merced, CA. The count will be open to the public.
If ballots are successful, Council will adopt a resolution approving, confirming, and adopting the Engineer’s Reports for that particular District with the Fiscal Year 2026/2027 budgeting process, and the new levy will appear on the property owners’ tax bill.
If the ballots are unsuccessful, there would be insufficient funds to cover the anticipated costs associated with the operation of the District and current level of service would have to be reduced to match existing revenues.
IMPACT ON CITY RESOURCES
Council approved an appropriation of $16,546 from the General Fund at the November 3, 2025, Council meeting. Balloting expenses are recovered in the approved assessment levy from the District’s operating Fund, if successful. Conversely, if unsuccessful the General Fund will cover the expense.
ATTACHMENTS
1. Budget Summaries
2. District Boundaries Maps
3. Presentation