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Tentative revenue sharing agreement, budget before Council

Mike Conway

Post Date:06/02/2016

Council hears about tentative revenue sharing deal Monday

The City and Merced County have reached a tentative revenue sharing agreement that will be presented during Monday night's City Council meeting. The budget will be discussed during an earlier study session.

The meeting will be at 7 p.m. in the Council Chambers on the second floor of the Merced Civic Center, 678 W. 18th St. The study session will be held at 5:30 p.m.

This week the City and County reached an agreement after two days of intense negotiations over how to split the property taxes that will be generated after land is annexed into the City.

Revenue sharing is how cities and counties split property taxes and other revenues when land is annexed by cities. When property is annexed cities are going to be providing additional levels of services ' such as more police, fire and recreation ' but counties are going to provide services such as courts, jails and mental health to a denser population on the developed land.

Under the terms of final agreement, the city will keep the fire funding that is allocated to property in unincorporated areas. The city and the county will receive their funds after taking out the state mandated ERAF (Educational Revenue Augmentation Funds) that go to local schools.

Also on the agenda is discussion of the City's 2016-17 budget that was continued from the May 26 meeting. Reorganization, new positions and future budget issues will be discussed.

There also is a request from Building Healthy Communities to increase the funding of the Merced Youth Council from $13,000 to $75,000 to increase training, hold a retreat and give the youth on the council a stipend.

City Council meetings are streamed live on the Internet. A link to the live meeting is on the City's web site at Videos of previous meetings can be found at that link, and are tied to each agenda item. Those services are in addition to the live broadcast of the regular meeting on Comcast's Government Channel 96.

The Council agenda is posted online at and is available outside the chambers prior to the meeting. Request to Speak forms are available at the meeting or can be downloaded from the City's website. Cards must be turned in to the City Clerk in order for a person to be recognized by the Council.

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