FY 24-26 ADOPTED BUDGET

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

July 1, 2024

Subject: Fiscal Years (FY) 2024 - 25 and 2025 - 26 Adopted Budget Transmittal

Honorable Mayor, Councilmembers, Community Members, and City Teammates,

On behalf of the City of Morgan Hill City Council, it is a privilege to present the Adopted FY 24 - 25 and 25 - 26 Biennial Operating Budget and FY 24 - 25 through 29 - 30 Capital Improve ment Program Budget (CIP).

The total FY 24 - 25 and 25 - 26 budgets are $207.9 million and $254.4 million, respectively. Since the City Manager ’ s recommended budget release on May 3, 2024, several changes have been made through the Council Workshop and Public Hearing discussion and direc tion from the City Council prior to adoption on June 19, 2024. These changes include:

Operating Budget

• Community Funding - Added $18,331 for Community Funding in FY 2024 - 25, less $20,000 each year, which was moved to Park Operations for Villa Mira Monte • Park Operations - Added $35,000/year for ongoing maintenance at Villa Mira Monte • California Highway Patrol (CHP) Cannabis Tax Grant - Added $344,230 in grant funding from CHP's Cannabis Tax Fund Grant Program for Morgan Hill Police Department to reduce and mitigate the impact of impaired driving in our Community • Environmental Programs - Added $153,500 in revenue and $110,108 in expenditures to provide part - time staffing support to the City of Gilroy, Environmental Programs • Equipment for Fire/Building Inspector - Added $42,700 for the purchase of necessary equipment, including a vehicle, should we move forward with the hiring of the Fire/ Building Inspector position

9