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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
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
Park Maintenance Fund
Morgan Hill funds its park maintenance activities from the City’s Park Maintenance Fund. The revenue for
this fund is derived from the City’s Residential Development Control System (RDCS) process and represents
"voluntary" payments that assist developers in gaining points for housing allocations. When this fund was
established more than 10 years ago, the goal was to "endow" park maintenance so that it would not rely on
the General Fund. However, to make this a reality, the fund would need to grow to at least $30 million so
the annual interest would cover the cost of park maintenance expenses. Today, this fund has a balance of
approximately $5.4 million.
Since this laudable goal would take many years to achieve, the Council decided to pay for park maintenance
directly from this fund and then augment its funding sources through a $200,000 annual contribution from
the General Fund. The Adopted Biennial Budget and subsequent forecast years assume this transfer.
Capital Improvement Program (CIP)
The Adopted FY 16-17 through FY 21-22 CIP totals $107.4 million. The primary project categories include 1)
Parks and Recreation ($20.6 million), 2) Public Facilities ($3.6 million), 3) Storm Drainage ($6.0 million), 4)
Streets & Roads ($16.5 million), 5) Wastewater ($45.0 million), and 6) Water ($15.7 million).
FY 16-18 CIP is appropriated as part of the FY 16-18 Biennial Budget approval and it totals $57.4 million. Some
of the project highlights include the following:
1. Downtown Parks and Trails ($4.1 million): Create parks and trails in the Downtown that are
integrated as part of Downtown revitalization.
2. Library Expansion ($3.4 million): Design and construction for the expansion and improvement
of the Morgan Hill Library that includes space modification and improvements.
3. Pavement Rehabilitation Program ($3.3 million): Ongoing program to address the City's
pavement rehabilitation needs (see additional information in next section).
4. Hale Avenue Extension ($3.9 million): The extension would provide relief for congestion along
Monterey Road through the Downtown and relief for the residential areas west of the
Downtown. It is important to note that the majority of project funding will need to be secured
prior to commencing construction.
5. Sewer Plant Improvement ($1.3 million) and Sewer Plant Expansion Project ($2.0 million): These
projects are for the City's 41.9 percent share of the improvement and expansion costs at the
South County Regional Wastewater Authority (SCRWA) treatment plant which is co-owned with
the City of Gilroy.