City of Morgan Hill Adopted Budget FY 2016-17 and FY 2017-18

General Fund 5 Year Forecast

50.0%

41%

41.5%

40.0%

35%

34%

34%

32%

31%

30%

31.2%

30.0%

26.9%

22.5%

16.9% 20.6%

20.0%

17.6%

13.5%

10.0%

6.1%

0.0%

-1.2%

-8.4%

-10.0%

-19.1%

-20.0%

-21.4%

-30.0%

-33.1%

-35.1%

-40.0%

-49.7%

-50.0%

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

Actual

Actual

YEP

Forecast

Forecast

Forecast

Forecast

General Fund Balance

Fund Balance Goal of 25% of Revenues

Fund Balance Minimum Level of 15% of Revenues

Fully Funded Infrastructure

Funded Streets Only

Funded Buildings and Parks Only

As the chart demonstrates, it is not possible to comprehensively address the funding gap and remain in compliance with the policy set in the Sustainable Budget Strategy. For all the scenarios outlined in the chart the downward trend demonstrates that other General Fund services would need to be reduced to fund infrastructure maintenance from the General Fund or new revenue sources would need to be realized.

City of Morgan Hill Infrastructure Update

Page B18