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

Summary Steady revenue growth has put the City in a more stable financial position. This is due primarily to the fiscally responsible actions taken in prior fiscal years by the Council including continuing to adhere to the sustainable budget strategy, prudently investing in service level enhancements as resources allow, and addressing areas of financial concern. This results in the ability to include additional near-term funding for maintaining street and public facility infrastructure, enhance public safety services, provide quality youth and senior services, continue to address unfunded OPEB and pension obligations, and undertake many exciting and needed capital improvement projects. There are other significant needs in a variety of areas such as funding additional public safety resources, maintaining adequate levels of park maintenance funding , and addressing aging infrastructure, which will require additional revenue sources. Staff will be working with the Council to engage the Community to both educate and strategize the best way to move forward with a sustainable funding source for infrastructure, public safety, and general services. This community focused effort will allow us to meet our community’s needs and maintain our high quality of life, so that Morgan Hill remains a highly desirable place to live, work, play, and do business.

I would like to express appreciation to the Council and to all staff for their cooperation and assistance in the development of this budget. In particular, I want to thank the Department Heads and Budget Team for their constant support in the preparation of this document.

Respectfully submitted,

Christina Turner City Manager

RECOMMENDED BUDGET MESSAGE 31