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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
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%