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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
Major Revenue Assumptions
General Fund (010)
FY 16-17 and 17-18 revenues for the General Fund, including
transfers in, are estimated to be $36.2 million and $37.1
million, respectively. General Fund revenues continue the
upward trajectory as the City has recovered from the
economic downturn. In general, the FY 16-17 and 17-18
Budget estimates that most revenues will experience
growth over the next five years.
Sales Tax
Sales tax is imposed on retailers for selling tangible
personal property in California. The use tax is imposed on
the user of a product purchased out-of-state and
delivered for use in California. The sales and use tax rate
for Santa Clara County is 8.75 percent.
Sales tax, at $8.8 million or 24 percent of the total General
Fund revenue projected for FY 16-17, is the second largest
revenue source for the City’s general fund. This revenue
source is anticipated to increase by $0.4 million to $9.2
million in FY 17-18. Subsequent forecast years assume
steady annual growth.
Property Tax
Property tax is imposed on real property (land and
permanently attached improvements such as buildings)
and tangible personal property (movable property)
located within the State, based on the property value
rather than on a fixed amount or benefit. Properties are
distinguished as secured and unsecured—property for
which the value of the lien is not sufficient to assure
payment of the tax.
Article XIIIA of the State Constitution limits the real
property tax rate to 1 percent of the property’s assessed
value plus rates imposed to fund indebtedness approved
by the voters. Morgan Hill’s share of the 1 percent is
equivalent to 10 cents for every $1.00 collected from
property taxes. With the passage of Prop 13 in 1978,
assessed valuations are limited to a 2 percent increase
each year.
Property tax is projected at $10.0 million or 28 percent of
the total General Fund revenues for FY 16-17. It is
anticipated to grow to $10.1 million in FY 17-18. Included in
the total projected property tax revenue are the secured
and unsecured taxes, RPTTF Residual Distribution, VLF In-
Lieu of Property Tax, Former RDA Pass Through, and
Supplemental Property Taxes.
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21
Sales Tax Revenue
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21
Property Tax Revenue
44%
SchoolK-12
12%
County
11%
RPTTF*
10%
City of
MH
7%
Comm.
College
6%
Special
District
10%
Other
*RPTTF=RedevelopmentProperty TaxTrust Fund
6.5%
State
1.0%
City of
MH
0.5%
VTA
MeasureA
0.5%
1976
Transit
0.125%
VTA
MeasureB
0.125%
County
MeasureA
Allocationof Sales Tax Rate
(Current Sales Tax Rate 8.75%)