Operating and CIP Budget Fiscal Year 2015-16

 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 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  FY15-16  OPERATING AND CIP BUDGET  CITY From a dollar standpoint, the GF’s fund balance is forecasted to decrease from $12 million at the conclusion of FY 14-15 to $9.7 million by the end of FY 19-20 primarily due to the aforementioned additional investments in the City’s street infrastructure and unfunded OPEB and PERS liabilities (all of which are further explained in subsequent sections of the Budget Message). From a spending perspective, the Council has discretion on how to spend approximately $23.3 million of the $33.7 mil- lion in GF revenue. This is due to the fact that over $10 million in GF revenue is related to a specific service and can only be used to provide that service (e.g. recreation services). The City Manager's budget recommends that the Council allocate its discretionary funds as depicted in the following chart. As demonstrated, public safety continues to be the number one priority as 79 percent will be for Police and Fire services. The remaining 21 percent of discretionary reve- nue is appropriated to pay for economic development, finance, human resources, City Clerk, recreation services, envi- ronmental services, street, parks, public facility, and downtown maintenance, City Attorney, and City Manager ser- vices. Year End Projection Adopted Forecast Forecast Forecast Forecast 14-15 15-16 16-17 17-18 18-19 19-20 Beginning Balance $12.82 $12.19 $11.57 $11.00 $10.53 $10.08 Revenues/Transfers In 33.25 33.73 34.34 35.42 36.65 37.68 Expenditures/Transfers Out* (33.88) (34.36) (34.91) (35.90) (37.09) (38.00) Ending Balance $12.19 $11.57 $11.00 $10.53 $10.08 $9.77 GF Fund Balance/Reserves (%) 37% 34% 32% 30% 28% 26% Operating Margin $(0.63) $(0.62) $(0.57) $(0.47) $(0.44) $(0.31) *Includes Anticipated Salary Savings General Fund 5 Year Forecast (in millions of dollars)

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