Operating and CIP Budget Fiscal Year 2015-16

Recreation revenue from membership sales, program registrations, and facility rentals continue to maintain their high levels, although future growth is limited due to many facilities reaching their maximum capacity during peak use times. To ensure the City has the resources to operate and maintain its recreation facilities, the City's membership rate strategy is to increase rates once every three years (January 2015, 2018, etc). Finally, the City is experiencing historic high revenue from TOT due to a strong economy, the regional use of the City's Outdoor Sports Center and Aquatics Center, and a burgeoning tourism economy. For FY 15-16, TOT is estimated to increase by 5 percent and then 3 percent annually for the remainder of the 5 year forecast. The Council recently approved a Hotel Market Study which will in- clude an evaluation of the City's TOT. This information will be used to project the 5 year forecast. As evidenced by the General Fund 5 Year Forecast, GF reserves remain above the Council’s 25 percent policy during the entire five year forecast. The percent change decreases annually due to the Council’s 2015 goal to invest additional discretionary revenue in the community’s streets in an effort to address the annual funding gap of approximately $4.5 million. For the community’s benefit, we have included both of the recent public infrastructure reports that were pre- sented to the Council in the Special Analysis section of the budget document.

 CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP

General Fund 5 Year Forecast

50.0%

45.0%

40%

40.0%

37%

34%

35.0%

32%

30%

30.0%

28%

26%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Actual

Year End Projection

Adopted

Forecast

Forecast

Forecast

Forecast

General Fund Balance

Fund Balance Goal of 25% of Revenues

Fund Balance Minimum Level of 15% of Revenues

CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET

17