Operating and CIP Budget Fiscal Year 2015-16

hundreds of hours of Administrative Services, City Manager, City Attorney, Public Works, and Community Services staff time will be required. This Council initiative will be one of the highest organizational priorities.

 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

Furthermore, the Council adopted a strategy for 2015 that it would like the City Manager to recommend additional infrastructure funding in the FY 15-16 operating and capital budgets. As previously noted in the Budget Message, it is being recommended that the GF contribution for street improvement projects be tripled from $250,000 to $750,000 annually. For FY 15-16, the City is also fortunate to receive a One Bay Area Grant in the amount of $1,379,000. Thus, the total estimated investment in the City’s pavement rehabilitation program is $2.5 million. However, unless new revenue sources can be obtained in future years, the CIP only includes $1.1 million annually for fiscal years 16-17 through 19-20 as depicted below.

FY 15-16

FY 16-17

FY 17-18

FY 18-19

FY 19-20

Pavement Investment

$2,500,000

$1,100,000

$1,100,000

$1,100,000

$1,100,000

Even though this level of funding is a step in the right direction, it still does not provide the necessary funds to address the fact that the City’s infrastructure is underfunded. As depicted in the following chart, this is causing the City’s street condition to decline and the deferred maintenance amount to increase. Thus, the need to find a sustainable and finan- cially prudent solution is necessary.

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

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