86 / 771
85
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
Major Revenue Assumptions
(continued)
Transient Occupancy Tax
The transient occupancy tax (TOT) is imposed on
persons staying 30 days or less in a hotel, inn, motel,
tourist home or other lodging facility. The City’s current
rate is 10 percent. TOT revenue is projected at $2.7
million and $2.8 million for FY 16-17 and FY 17-18,
respectively. The City has greatly benefitted from the
activities at the Outdoor Sports Center and the Aquatics
Center which host regional events with participants
utilizing the city’s hotels and motels. The five-year
forecast period assumes growth in future years as a
result of continued tourism expansion and additional
lodging facilities.
Street Fund (202)
The Street Fund is a special revenue fund used to
account for the receipt and disbursement of State and
Federal gas tax and grant monies, and other monies
that are to be used for the maintenance, repair, and
design of streets. State gas tax funds are distributed to
cities based on population from gas taxes collected at
the point of sale. The use of gas tax funds is restricted
to street expenditures by State and Federal laws.
Revenues for street maintenance are realized in this
fund and are then transferred to the General Fund. In FY
16-17 and 17-18, gas tax revenues are expected to stay
fairly flat at approximately $0.8 million. The five-year
forecast assumes no growth in the out-years.
Community Development Fund (206)
The Community Development Fund is a special revenue
fund used to account for the collection of planning,
building, and engineering fees. The expenditures of these
funds are restricted to the costs associated with
processing building, engineering and planning
applications.
FY 15-16 Year End Projections are $0.4 million lower than
budgeted due to timing of development activity. FY 16-17
and FY 17-18 revenues are projected to be $4.4 million and
$3.7 million, respectively. The revenues for FY 17-18 are
anticipated to be lower than FY 16-17 due to less
engineering and building fees as development slows from
recent highs. Revenues collected are completely
dependent on the level of development activity.
As the fund’s reserve is anticipated to be depleted over
the next few years due to projects and expenditure levels,
the Community Development Department’s work
program includes measures to complete and implement
an updated fee study with plans to present to City Council
an updated fee schedule in the summer 2016. Fees are
anticipated to increase as a result of the study and the
revenues will be adjusted accordingly.
Wastewater Operations Fund (640)
The Sewer Operations Fund receives revenues from user
charges based on water usage. All expenditures for the
operation of the wastewater (sewer) system, including
maintenance and debt service, are charged to the
Wastewater Operations Fund. Total revenue for FY 16-17
and 17-18 are budgeted at $10.4 million and $10.8 million,
respectively.
$0
$1
$2
$3
$4
FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21
Transient Occupancy Tax Revenue
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
FY 11-12
FY12-13
FY13-14
FY15-16
FY16-17
FY17-18
FY18-19
FY19-20
FY20-21
FuelTax Revenue
$0
$1
$2
$3
$4
$5
$6
FY 11-12
FY12-13
FY13-14
FY15-16
FY16-17
FY17-18
FY18-19
FY19-20
FY20-21
CommunityDevelopment Fund Revenue