455 / 493
REVENUE ANALYSIS
8
| CITY OF MORGAN HILL
At some point, the City will need to address deferred maintenance and will likely need to fund new
capital improvements or reinvest in existing facilities. Existing revenue sources are not adequate to
address these expenses. Because the most promising funding options (e.g. special taxes, assessment
districts or bonds) require voter approval, the City should assess the community’s tolerance for these
funding options. Similarly, the City should explore community tolerance for increased user fees to
adequately fund a “sinking fund” that can pay for maintenance and replacement costs.