City of Morgan Hill Adopted Budget FY 2016-17 and FY 2017-18

 CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 16-17 and 17-18  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY16-17 and 17-18  The General Fund expense budget is $37.8 million and $39 million for FY 16-17 and FY 17-18, respectively. FY 16-17 salaries and benefits increased 8 percent or $1.4 million from last year amended budget primarily due to scheduled pay increases per MOU, pension and health premium costs, additional funding of 3 full-time equivalents (FTEs), and non-benefitted part-time positions including the recently approved State minimum wage increases. For FY 17-18, salaries and benefits increased 4 percent or $0.8 million compared to Adopted FY 16-17 primarily due to aforementioned reasons but without new FTE. The non personnel budget for the General Fund in the Adopted Biennial Budget increased 2 percent or $329,000 for FY 16-17 compared to FY 15-16 Amended Budget mainly due to an increase in the annual General Fund investment for street improvement projects from $750,000 to $1,000,000, funds set aside to address the City’s unfunded OPEB and pension liabilities, and service enhancements, partially offset by reduction in supplies and services. Non personnel budget for FY 17-18 increased incrementally, 2 percent or $379,000 from FY 16-17 mainly due to overall cost inflation factor. With this being said, it is important for the Council and community to understand that the City is not yet in the financial position to address its aging public infrastructure (streets, facilities, parks) in an ongoing manner that significantly reduces its deferred maintenance backlog or decreases the level of annual decline. As demonstrated on the following page, Morgan Hill has the lowest General Fund expenditures per capita compared to a sample of surrounding cities. Department Total Costs Less Dept Revenues Less Transfer In Net Costs Percent of total Police 15,233,030 $ (980,669) $ (100,000) $ 14,152,361 $ 54.9% Fire 5,288,996 (268,397) - 5,020,599 19.5% Administration 4,395,822 (2,093,888) - 2,301,934 8.9% Pavement Rehab CIP 1,000,000 - - 1,000,000 3.9% Recreation & Community Services 7,499,482 (6,762,818) (75,000) 661,664 2.6% Street Maintenance 2,064,401 - (1,452,581) 611,820 2.4% Economic Development 467,000 - - 467,000 1.8% SVRIA Public Safety 290,000 - - 290,000 1.1% Downtown Maintenance 241,610 - - 241,610 0.9% Park Maintenance 200,000 - - 200,000 0.8% OPEB 166,593 - - 166,593 0.6% PERs Rate Stabalization 166,593 - - 166,593 0.6% Environmental Programs 348,754 (203,902) - 144,852 0.6% Code Compliance 135,689 - - 135,689 0.5% Pedestrian Safety 100,000 - - 100,000 0.4% Congestion Management 75,219 - - 75,219 0.3% Future Replacement - Council Chamber Building 29,362 - - 29,362 0.1% Long Range Planning 23,100 - - 23,100 0.1% Building Maintenance - El Toro Youth Center 9,781 - - 9,781 0.0% Cable TV 48,258 (50,456) - (2,198) 0.0% TOTALS 37,783,691 $ (10,360,130) $ (1,627,581) $ 25,795,980 $ 100%

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