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

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 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 

Major Revenue Assumptions (continued)

Transient Occupancy Tax The transient occupancy tax (TOT) is imposed on persons staying 30 days or less in a hotel, inn, motel, tourist home or other lodging facility. The City’s current rate is 10 percent. TOT revenue is projected at $2.7 million and $2.8 million for FY 16-17 and FY 17-18, respectively. The City has greatly benefitted from the activities at the Outdoor Sports Center and the Aquatics Center which host regional events with participants utilizing the city’s hotels and motels. The five-year forecast period assumes growth in future years as a result of continued tourism expansion and additional lodging facilities.

Community Development Fund (206) The Community Development Fund is a special revenue fund used to account for the collection of planning, building, and engineering fees. The expenditures of these funds are restricted to the costs associated with processing building, engineering and planning applications. FY 15-16 Year End Projections are $0.4 million lower than budgeted due to timing of development activity. FY 16-17 and FY 17-18 revenues are projected to be $4.4 million and $3.7 million, respectively. The revenues for FY 17-18 are anticipated to be lower than FY 16-17 due to less engineering and building fees as development slows from recent highs. Revenues collected are completely dependent on the level of development activity. As the fund’s reserve is anticipated to be depleted over the next few years due to projects and expenditure levels, the Community Development Department’s work program includes measures to complete and implement an updated fee study with plans to present to City Council an updated fee schedule in the summer 2016. Fees are anticipated to increase as a result of the study and the revenues will be adjusted accordingly.

Transient Occupancy Tax Revenue

FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21

Street Fund (202) The Street Fund is a special revenue fund used to account for the receipt and disbursement of State and Federal gas tax and grant monies, and other monies that are to be used for the maintenance, repair, and design of streets. State gas tax funds are distributed to cities based on population from gas taxes collected at the point of sale. The use of gas tax funds is restricted to street expenditures by State and Federal laws. Revenues for street maintenance are realized in this fund and are then transferred to the General Fund. In FY 16-17 and 17-18, gas tax revenues are expected to stay fairly flat at approximately $0.8 million. The five-year forecast assumes no growth in the out-years.

CommunityDevelopment Fund Revenue

FY 11-12

FY12-13

FY13-14

FY15-16

FY16-17

FY17-18

FY18-19

FY19-20

FY20-21

Wastewater Operations Fund (640) The Sewer Operations Fund receives revenues from user charges based on water usage. All expenditures for the operation of the wastewater (sewer) system, including maintenance and debt service, are charged to the Wastewater Operations Fund. Total revenue for FY 16-17 and 17-18 are budgeted at $10.4 million and $10.8 million, respectively.

FuelTax Revenue

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000