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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
Personnel
One of the City’s most significant annual investments is personnel costs as they account for approximately $30.5 mil-
lion or 24 percent of organizational wide expenses. Of this dollar amount, 67 percent is related to salaries and the re-
maining 33 percent is attributed to benefits (health insurance, retirement, etc.). As a percent of total costs, Morgan
Hill continues to contain its personnel expenses due to the fact that it has a long and successful history of working
with other organizations to collaboratively deliver services. Most notably, with the YMCA for recreation services, Cal
Fire for fire/emergency medical services, and the City of Gilroy for wastewater services. This results in lower short
term and long term personnel costs that are offset by an increase in contractual services, though for a lower cost. As
part of this, the City does not have any obligation for future employee benefits and retirement of non-City personnel.
As a result of the 2013 labor negotiations and the Council adopted Management Resolution and Council-Appointed
Officer contracts, all City employees now equally share any annual increases to the City’s retirement (CalPERS) contri-
bution rates. A special thanks to all employees is deserved for working with the City. Their actions demonstrated their
dedication and commitment to the Morgan Hill community and, as importantly, their understanding that fiscal sustain-
ability into the future requires the City and its employees to share the burden. This significant change will positively
impact the City’s ability to meet the community’s service level needs and should not go unnoticed.
Beginning in FY 15-16, the following personnel changes are being proposed to enhance services.
New Positions:
Records Specialist (1 FTE) in the Police Department
Economic Development Coordinator (1 FTE) in the City Manager's Office
Municipal Services Assistant (1 FTE) in the Housing Division
Senior Services Supervisor (1 FTE) in the Community Services Department
Increase to Existing Position:
Passport Office Assistant II position from 0.5 FTE to 1 FTE in the Council Services Division
In FY 14-15, the City Council approved a full-time, two year Building Inspector position to assist with the above average
workload. The Council approved this position because the City was unable to find a qualified contractor due to the
demand for these services during a strong economy. The City also has a part-time Fire Inspector as part of the new
agreement with Cal Fire where the City took a more direct role in some fire inspection areas. Starting in FY 15-16, it is
recommended the two year, full-time Building Inspector be made permanent and that we eliminate the part-time Fire
Inspector position. This would have an initial net savings for the first fiscal year and then it would have an approxi-
mately $80,000 annual fiscal impact thereafter. This is being recommended because staff believes that this is a sound
strategy and prudent use of a full-time teammate from a consistency, training, and succession planning standpoint.