City of Morgan Hill Economic Blueprint.docx

Economic Profile

This section provides an analysis of fiscal and economic characteristics or trends in Morgan Hill. The analysis uses data from a variety of sources including the City budget, the American Community Survey (ACS), the California Economic Development Department (EDD), market reports from brokers, and other private sector resources.

The General Fund

The City of Morgan Hill total 2016-17 budget is $126.2 Million. The General Fund, which supports most of the City's major services including police, fire, recreation, street maintenance, municipal governance, and administrative services, accounts for less than 30 percent of this total. The

remaining 70 percent of the budget is comprised of Special Revenue Funds, Capital Project Funds, Enterprise Funds (such as sewer and water), and Internal Service Funds; all funds that are restricted to the specific uses for which they were collected.

Figure 1. Total Morgan Hill Budget by Fund, FY 2016-2017

Bond Proceeds/Use of Reserves 11.0%

Total Resources

General Fund 29.0%

Agency Funds 0.5%

Internal Service Funds 8.0%

Special Revenue Funds 13.0%

Enterprise Funds 25.0%

Debt Service Funds 0.5%

Capital Project Funds 13.0%

taxes, property taxes, and transient occupancy (hotel) taxes – account for 64% of General Fund revenues . Current services, which include fees for services such as recreation, generate another 21.7%.

Total budgeted General Fund revenues in FY 2016-17 were $36.2 Million. Revenue sources that are directly tied to land use and economic growth – including sales

15