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Merced council adopts $461.5M FY2026‑27 budget amid calls for tenant aid and arts funding
Summary
Council adopted the FY2026‑27 budget (citywide $461.5M; General Fund $69.2M). Public advocates urged reallocating discretionary dollars to tenant relocation and eviction‑prevention programs; council approved the budget after debate, with one no vote.
Merced City Council adopted the FY2026‑27 budget on June 15, approving an operating plan that sets total city spending at approximately $461.5 million and a General Fund of about $69.2 million. The package includes operating transfers, measure funds and capital projects; council approved the resolutions adopting the budget and related authority budgets.
Finance Director Venus Rodriguez summarized final changes from the proposed budget, noting council‑directed adjustments, an added $30,000 for community funding and the transfer of funds from general‑fund reserves and a pension trust to balance the General Fund. The recommended ending General Fund balance was presented at roughly $9.1 million with a 5% contingency maintained.
During the public hearing, tenant advocates urged the council to reallocate discretionary funds for tenant relocation assistance and an eviction‑prevention pilot. "Use the $67,000 in affordable housing funding and the $739,000 from the general reserve fund for a tenant relocation program and an eviction protection program," said Lata Rashard. Leadership Council and several residents requested an initial $250,000 for a relocation assistance program and up to $500,000 for an eviction‑prevention pilot, urging the city to pair the newly adopted Repeat Housing Code Violators ordinance with funding for tenants.
Arts groups asked the council to restore recurring arts funding; the Arts & Culture Advisory Commission noted $70,500 in carryover with projects planned and requested the council consider restoring an annual ~$100,000 allocation in a future action.
After debate, council adopted the budget resolutions (2026‑35 and associated authority resolutions). The motion passed with Council Member Jeang voting no. Several council members said they would continue discussions on tenant assistance and arts funding and explore mid‑year adjustments or grant‑leveraging options.
What happens next: The budget appropriation is in effect; staff and council will track requests for tenant assistance pilot programs and may return with mid‑year supplemental appropriations or grant applications to fund tenant services and arts programming.
Speakers quoted in this article are from the meeting record and include public commenters and finance staff.
