FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

City Manager’s Office 17575 Peak Avenue Morgan Hill, CA 95037 TEL: 408.779.7271 Fax: 408.779.1592 www.morganhilll.ca.gov

Date: July 1, 2018

Subject: Fiscal Year (FY) 2018-19 and 2019-20 Adopted Budget Transmittal

Honorable Mayor, Councilmembers, Community of Morgan Hill, and City Teammates,

On behalf of the Morgan Hill City Council, it is a privilege to present the Adopted FY 18-19 and FY 19-20 Biennial Operating Budget and FY 18-19 through FY 23-24 Capital Improvement Program Budget (CIP).

The total FY 18-19 and FY 19-20 budgets are $157.2 million and $135.5 million, respectively.

Since the City Manager’s recommended budget release on April 27, 2018, several changes have been made through the Council Workshop and Public Hearing discussion and direction from the City Council prior to adoption on June 6, 2018. These changes include:

Operating Budget •

Included an ongoing expense of $176,000 for the hiring of one School Resources Officer (SRO); offset by $60,000 in revenue from the Morgan Hill Unified School District for FY 19- 20 • Included a one-time expense of $78,000 in FY 19-20 for the purchase and build out of a police vehicle and other start-up costs for the additional Police Officer in FY 19-20. The expense will be funded by the General Fund initially but will be reimbursed by the Police Impact Fee Fund once the Police Impact Fee Fund has a sufficient balance. • Included an ongoing additional expense of $57,500 in janitorial services, which results in an increase in various operating departments to pay the additional internal service charge • Included an ongoing additional expense of $700 for Community Promotions funding as approved at the May 16, 2018 City Council meeting • Included $33,315 in FY 18-19 for new Fire Emergency Medical Services (EMS) mandates (one- time and 100% reimbursable) for hardware and services that support Comprehensive EMS Patient Care Data System implementation • Included $15,000 in FY 18-19 for a new mandate requiring the use of video laryngoscopes in the field by EMS First Responders with a $4,000 offsetting reimbursement (one-time) • Included $7,200 for the newly created Airline Noise Roundtable (ongoing) • Removed the Monterey Road Underpass Enhancement ($45,000 one-time and $5,000 annually). Staff will return to the City Council after further researching options for improvements and potential funding sources.

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