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

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.”

Current Annual Funding Level

Sustainable Annual Funding Level

Annual Funding Shortfall

Table 3. Category of Maintenance

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 Landscape Assessment District Base Services Building Maintenance Capital Repair and Replacement

$ - $ 88,000 $ (88,000)

$ 180,000 $ 180,000 $ -

$ 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.

Funding Gap - $5,812,000

77%

Street Maintenance - Capital

Street Maintenance - Base Services Park Maintenance - Replacement Landscape Assessment District - Replacement Building Maintenance - Replacement

3%

9%

10%

1%

City of Morgan Hill Infrastructure Update

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