FY18-19 and 19-20 RECOMMENDED OPERATING AND CIP BUDGET - FIN

Policy Discussion Three of the City’s recreation center’s make up the largest portion of the funding gap. The Aquatics Center and Centennial Recreation Center have continually strong financial performance and replacement funding will be important to their continued success. Including the additional replacement fund costs in the annual operating budget for Recreation and Community Services would be consistent with the City’s effort of “Balancing Cost Recovery and Community Access” at the City recreation facilities. In addition, the OSC has been a driver of economic development bringing hundreds of thousands of visitors to Morgan Hill annually. The City is currently negotiating an agreement with a new operator for the OSC and the need to identify future replacement funding will be incorporated into those discussions. Overall policy questions for Building and Facility Maintenance include, but not limited to: 1. Should replacement funding at facilities be expanded to fully plan for all future capital replacement and repair costs? 2. Should fees be reviewed to assist in covering additional future replacement costs at our Recreation Facilities or should the General Fund invest more annually? 3. Who should be responsible for Outdoor Sports Center Future Replacement funding? The City? The operator? Or Both?

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INFRASTRUCTURE UPDATE REPORT CITY OF MORGAN HILL