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City of Morgan Hill Infrastructure Update
Page B7
funding for future maintenance has not occurred or may not be adequate for future needs.
Currently, it is estimated that there is a $5.8 million annual maintenance funding shortfall
across all infrastructure categories. Table 3 provides a comparison of the City’s existing
funding levels and the amount required to be considered sustainable. For the purpose of this
report, the term sustainable is defined as the following: “The level of annual funding required to
ensure the City’s infrastructure is adequately maintained for use in the present, avoids
deferring maintenance costs to a later date, and funds accrues for future known replacement
over the life period of each infrastructure asset.”
Table 3. Category of Maintenance
Current Annual
Funding Level
Sustainable Annual
Funding Level
Annual Funding
Shortfall
Street Maintenance
Capital Repair and Replacement*
$ 753,000 $ 5,200,000 $ (4,447,000)
Street Maintenance
Base Services
$ 1,888,000 $ 2,066,000 $ (178,000)
Park Maintenance
Capital Repair and Replacement
$ - $ 586,000 $ (586,000)
Park Maintenance
Base Services
$ 1,027,000 $ 1,027,000 $ -
Landscape Assessment District
Capital Repair and Replacement
$ - $ 88,000 $ (88,000)
Landscape Assessment District
Base Services
$ 180,000 $ 180,000 $ -
Building Maintenance
Capital Repair and Replacement
$ 389,000 $ 903,000 $ (514,000)
Building Maintenance
Base Services
$ 2,654,000 $ 2,654,000 $ -
TOTAL
$ 6,891,000 $ 12,703,000 $ (5,812,000)
* 2014/15 includes additional one-time funding for street maintenance of $1,544,000 above the $753,000.
77%
3%
10%
1%
9%
Funding Gap - $5,812,000
Street Maintenance - Capital
Street Maintenance - Base
Services
Park Maintenance - Replacement
Landscape Assessment District -
Replacement
Building Maintenance -
Replacement