Fiscal Year 2002/ 03
Operating and CIP Budget
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Aug 1, 2001
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ca. gov
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City of Morgan Hill
Fiscal Year 2002/ 03
Operating and CIP Budget
Morgan Hill City Council
Dennis Kennedy, Mayor
Larry Carr, Mayor Pro Tem
Hedy Chang, Councilmember
Greg Sellers, Councilmember
Steve Tate, Councilmember
J. Edward Tewes, City Manager
Helene Leichter, City Attorney
Michael Roorda, City Treasurer
Irma Torrez, City Clerk
Management Staff
Jim Ashcraft, Director of Public Works
David Bischoff, Director of Community Development
Jack Dilles, Director of Finance
Melissa Dile, Assistant to the City Manager
Tony Eulo, Assistant to the City Manager
Jerry Galvin, Chief of Police
Mary Kaye Fisher, Director of Human Resources
Julie Spier, Recreation Manager
Irma Torrez, Council Services & Records Manager
Garrett Toy, Director of Business Assistance and Housing Services
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CSMFO Award for Excellence in
Operational Budgeting
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Table of Contents
Budget Message 9- 19
General Information 21
About the City ....................................................... 23
Budget Overview ................................................... 26
Budget Process ..................................................... 29
Description of Funds ............................................. 31
Glossary ................................................................ 35
Resolution Adopting the City Budget .................... 39
Appropriation Limit Calculation ............................. 41
Resolution Adopting the RDA Budget ................... 43
Budget Summary 45
General Fund Balance Chart ................................ 47
Fund Balance Projections ..................................... 48
Interfund Transfers ................................................ 52
Cost Allocation ...................................................... 54
Revenue Charts .................................................... 56
Summary of Revenues & Transfers In .................. 57
Expenditure Charts ............................................... 62
Summary of Expenditures & Transfers Out .......... 64
Expenditures & Transfers Out ( by category) ......... 69
Comparison of Municipalities ............................... 92
Staffing 93
Citywide Organization Chart ................................. 95
Staffing Summary by Departments ....................... 96
Staffing Detail by Programs .................................. 97
Staffing Summary by Fund Type ......................... 100
Staffing Detail by Programs ................................ 101
Changes in Personel Costs ................................. 110
Council Services/ City Clerk 111
City Council ......................................................... 113
Community Promotions ....................................... 117
Council Services & Records Management .......... 119
Elections .............................................................. 123
City Attorney 125
City Manager’s Office 131
City Manager ....................................................... 133
Cable Services .................................................... 137
Communications and Marketing .......................... 139
Solid Waste Management ................................... 141
Recreation 145
Recreation ........................................................... 147
Community & Cultural Center ............................. 151
Human Resources 153
Human Resources .............................................. 155
Volunteer Services .............................................. 159
Finance 161
Finance ............................................................... 163
Utility Billing ......................................................... 167
Police 169
Administration ..................................................... 171
Patrol Operations ................................................ 175
Support Services ................................................. 179
Emergency Services ........................................... 183
Special Operations .............................................. 187
Animal Control Services ...................................... 189
Dispatch Services ............................................... 191
Community Development 193
Building Maintenance ( Community & Cultural Ctr) 195
Congestion Management .................................... 197
Planning .............................................................. 199
Building ............................................................... 203
General Plan Update ........................................... 207
Building Maintenance .......................................... 209
Public Works 211
Park Maintenance ............................................... 213
Street Maintenance ............................................. 217
Engineering ......................................................... 221
Lighting and Landscape District .......................... 225
Sewer Operations ............................................... 227
Water Operations ................................................ 221
Water Meter Reading .......................................... 235
Water Conservation ............................................ 239
CIP Administration .............................................. 241
Business Assistance and Housing
Services 245
RDA Implementation Plan, 2001 ......................... 247
CDBG Fund......................................................... 249
CDBG Housing Rehab Fund ............................... 251
Museum Fund ..................................................... 253
Mobile Home Rent Commission .......................... 255
Housing Programs .............................................. 257
BAHS Administration ........................................... 259
BAHS Economic Development ........................... 265
BAHS Capital Programs ...................................... 267
BAHS Housing .................................................... 269
ISF and Misc Programs 273
Fire Administration .............................................. 275
Asset Seizure ...................................................... 277
Employee Assistance Program ........................... 279
Information Systems ........................................... 281
Unemployment Insurance ................................... 283
Workers’ Comp ................................................... 285
Equipment Replacement ..................................... 287
General Liability .................................................. 289
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Table of Contents ( continued)
Supplemental Information 291
GASB 34 Update ................................................. 293
Cornerstone Project ............................................ 295
Financing for Street Maintenance Activity ........... 299
Current and Future Grants .................................. 301
General Fund Cashflow Analysis ........................ 302
Cashflow Analysis ( All Other Funds) ................... 309
Projected Recreation and Community & Cultural
Center Costs and Revenues ....................... 321
Final Allocation for Redevelopment Amendment
Allocation ..................................................... 323
Capital Improvement Program 325
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Dear Mayor Kennedy and Members of the City
Council:
I am pleased to submit the City Manager’s
Recommended Budget for Fiscal Year 2002/
03. The budget is a plan to meet community
needs through effective use of the City’s
available resources. It reflects the City
Council’s commitment to fiscal responsibility
through long term prudent financial planning.
The goals of this strategy are to maintain a
prudent level of reserves, to cost effectively
provide municipal services, and to pre- fund
known expenditure expectations.
The current budget document and Capital
Improvement Program ( CIP) provide a
proactive, forward- looking program to address
the dynamic needs of our City. We have the
opportunity, based on the City’s revenue
stream and financial reserves, to maintain a
high level of services to the public and to move
forward on a number of fronts to effectively
plan and implement public programs and
services.
Nonetheless, this recommended budget
reflects a continuing slowdown in revenues. It
was necessary to hold vacant positions open
and unfilled and to significantly cut back on
investment in capital equipment. Additional
revenues were achieved through an update
of the cost allocation plan. The budget also
proposes staffing, operational costs, and
revenues needed to open the new Cultural and
Community Center. In the end, it was still
necessary to use $ 262,564 from the reserve
Designated for Economic Uncertainty.
ECONOMIC AND DEMOGRAPHIC
PROFILE
The City of Morgan Hill provides a high quality
residential community for our many citizens
who commute north to their jobs. Population
increased by 2.08% as of January 1, 2002
compared to the prior year, to a level of 34,785,
according to the State Department of Finance.
The economic success of Silicon Valley
impacts our residents through relatively high
family income. However, the recession has
caused higher unemployment throughout the
Silicon Valley and a reduction in sales and
business visitors. The top 40 employers
employed approximately 6,000 persons in
Morgan Hill at July 2001, as reported to the
City on business license tax returns. The
median price for a single family home in
Morgan Hill fell from $ 519,000 for calendar
2000 to $ 507,000 in calendar 2001 and the
monthly median during
2002 has ranged from
$ 460,000 in February
to $ 535,000 in March.
An encour- aging sign is
that, after falling from a
monthly average of 37
sales for 2000 to a
monthly average of 25
for 2001, the average
monthly sales volume
for the first three
months of 2002 has
risen to 51.
The City provides a broad range of services,
including police protection, development and
housing, water and sanitation services, streets
and parks construction and maintenance,
planning, engineering, code enforcement,
recreation, general city administration, and
support services. The City has contracted with
Santa Clara County to provide fire protection
services and with South Valley Disposal and
Recycling to provide solid waste collection
services.
As the local economy slowed, the City’s policy
of establishing prudent reserves makes good
financial sense. The State of California is
currently struggling to confront a deficit
estimated at $ 20 billion, so it is unlikely that
the City will receive significant new financial
assistance from the State in the near future
and it is possible that the State might divert
revenue that would normally go to local
DATE: July 1, 2002
TO: City Council
SUBJECT: Fiscal Year 2002/ 03
CITY MANAGER’S OFFICE
17555 PEAK AVENUE
MORGAN HILL, CA
95037- 7128
TEL: 408- 779- 7271
FAX: 408- 779- 1592
WWW. MORGAN- HILL. CA. GOV
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Budget Message ( continued)
government. Sales tax revenue has declined
by approximately 6% in FY 2001/ 02, as
projected, to a level of approximately $ 5.2
million. Growth of approximately 2.5%, to a
new level of $ 5.3 million, is projected for 2001/
02. Transient occupancy tax revenue has
plummeted by 36% in 2001/ 02, as projected,
to a new level of $ 870,000. Growth of
approximately 2.5%, to a new level of
$ 892,000, is estimated for 2002/ 03.
BUDGET PROCESS
The Fiscal Year 2002/ 03 Budget is based
upon an in- depth analysis of actual and
projected fund balances, revenues, and
expenditures. Each City department prepared
line item detail for each of their activities and
recommended certain service levels and
activity goals for the 2002/ 03 Budget year. The
Finance Department prepared revenue
projections based upon input from other
departments. The City Manager then
reviewed individual departmental requests,
prioritized activities based upon City Council
policy, and made certain adjustments. At the
conclusion of this process, the proposed
budget was prepared and is being submitted
to the City Council for review.
BUDGET HEADLINES
• Pursue State funding
for new Library
• Complete construction
of new Community &
Cultural Center and
Playhouse
• Complete preliminary/
final design for: Indoor
Recreation Center,
Library, Aquatics Cen-ter,
& Sports Complex
• Acquire property &
work with Santa Clara
County to develop
Morgan Hill
Courthouse
• Assist Morgan Hill
Community Health
Foundation to provide
medical services
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• Implement 40 Develop- mental Asset
Approach as framework to guide youth-related
programs
• Support Morgan Hill Community
Foundation to further recreation and arts
programs
• Expand the Police Officer Housing
Assistance Program to include teachers
and city employees
• Meet emerging community expectations
by implementing an e- government
strategic plan
• Open the Community & Cultural Center
& begin classes, activities and special
events
• Assign a second school resource officer
within Police Department
• Complete Gateway Plan and Design
Guidelines for the entry points to
community
• Complete Update of Downtown Plan
• Complete Greenbelt Study
• Develop voter amendments
to City’s Residential
Development Control
System ( Measure P)
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• Complete Murphy Avenue Corridor
Study
• Implement an auto dealer marketing
strategy
• Implement audit recommendations from
development processing audit
• Expand curbside recycling program to
include plastics 3- 7, scrap metals, and
other materials
• Implement expanded business license
audit program by using new data bases
• Select and implement a new financial
system software package
• Complete design of new police facility
and develop detailed Police Facility
Master Plan
• Begin construction of the 72- unit “ Church
Street” mixed- use housing and office
project
• Add more E- government resources to
website to increase community access
to City services
• Provide 24 hours of enhanced training
to every employee
• Compile core competencies for all City
employees and recruit & select for those
competencies
• Complete two new City water reservoirs
• Complete and implement City’s
Comprehensive Housing Strategy
• Complete drilling of new water well at
Boys Ranch
• Implement GASB 34 financial statement
reporting for fiscal year 2002
• Commence design of the Butterfield
Detention Basin
• Design Permanent Skate and BMX Park
through volunteer community committee
• Complete construction of Butterfield
Blvd. extension from San Pedro to
Tennant
• Complete major street rehabilitation
project
• Make improvements to increase
capacity of Wastewater Treatment Plant
to 8.5 MGD
• Aggressively deliver 5 year Capital
Improvement Plan ( CIP) of $ 155 million
HIGHLIGHTS - FISCAL ISSUES
The total budget for Fiscal Year 2002/ 03
( including capital project appropriations,
Redevelopment Agency appropriations, and
transfers out) is $ 86,287,768, or $ 16,249,948
less than the original 2001/ 02 budget as a
result of a reduction in capital projects for
2002/ 03. The budget includes a Capital
Improvement Program ( CIP) of $ 27,325,000
for 2002/ 03. The budget also includes the
addition of a net 4 full- time equivalent
positions, as follows:
Community & Cultural Center: Five new full-time
equivalent positions are proposed ( 1
Facility Manager, 1 Events Coordinator, 1.5
Maintenance Workers, 1 Municipal Services
Assistant, and 0.5 Recreation Leader) to staff
the new Community & Cultural Center and to
provide new programs to the public.
Recreation: One position, the Leisure
Services Coordinator position, is proposed for
deletion in connection with the shift of certain
Recreation programs to the Community &
Cultural Center budget.
In addition, certain changes have been
incorporated into the Budget as a result of a
cost allocation consultant study and staff’s
determination that certain activities should be
broken out as separate funds to ensure that
certain monies are spent as legally required.
In addition, staff wants to ensure that the City
accurately provides financial information in an
understandable and meaningful manner and
accurately allocates costs.
Budget Message ( continued)
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HIGHLIGHTS - CHANGES IN BUDGET
FORMAT
Specific changes have been made to the
budget document as follows:
• Creation of a new activity called
“ Community & Cultural Center”
( Department # 2115) and a new activity
for “ Building Maintenance” ( Department
# 5150) within the General Fund to
account for the costs of operating the
new Center that will open mid- year.
• Creation of a new activity called
“ Communications & Marketing” within
the General Fund ( Department # 5145)
to account for the costs of administering
the City’s communications and
marketing efforts including City Visions,
government access programming, the
web site, and other communications.
• Separation of Senior Housing Trust Fund
activity from Housing Mitigation Fund
activity by renaming Housing
Development Fund # 235 as “ Senior
Budget Message ( continued)
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Housing Trust Fund” and establishing a
new “ Housing Mitigation Fund” # 236.
• Creation of a new “ Computer Loan Fund”
# 240 to account for activity associated
with making “ no interest” loans to City
employees so that they may purchase
computers compatible with City
standards, as an employee retention/
recruitment tool and as a means of
keeping employees technologically
current. As proposed, this fund would be
a revolving loan fund and would make
new loans on an ongoing basis using
prior loan repayments. The start- up
funds for this new fund, as proposed,
would be transferred from the City’s
Information Services Fund.
• Separation of Open Space fee activity
from Park Maintenance Fund # 302
activity by establishing a new “ Open
Space Fund” # 306.
• Within the Redevelopment Agency’s
Business Assistance and Housing
( BAHS) Capital Projects Fund,
separation of administrative, economic
development, and capital projects
activities by renaming RDA Business
Assistance Department
# 7000 as “ BAHS
Administration,” by
creating a new “ BAHS
Economic Development”
Department # 8010, and
by creating a new “ BAHS
Capital Improv- ement
Programs” Department
# 8055.
• Increase in the level of
“ General Administration
Overhead” cost allocation
revenues recovered by
the General Fund from
other funds that receive
services from the
General Fund. The
increased revenue
recovers the appropriate
amount of indirect, as
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Budget Message ( continued)
well as direct, costs incurred by the
General Fund on behalf of these other
funds, as calculated by the City’s cost
allocation consultant. Previously, only
direct costs incurred by the General
Fund were allocated to these other
funds.
• Collection of approx- imately $ 130,000
in water and sewer usage fees from
various City funds to cover the cost of
providing these services to City
facilities. Previously, these fees were
not charged to the City.
• Addition of performance measures for
many activities.
FUND SUMMARIES
GENERAL FUND
The good news is that the available balance
at 6/ 30/ 2002 is now projected to be
$ 10,748,694 including $ 3,382,000 in
designations. As revenues declined during
2001/ 02, staff projected, in October 2001, a
$ 1 million shortfall in 2001/ 02 budgeted
revenue, which was primarily comprised of a
significant drop in transient occupancy taxes.
The City Council directed staff to offset
approximately half of this shortfall by reducing
2001/ 02 expenditures in most General Fund
departments by a target of 5% without
reducing services to the public. The remainder
of the shortfall was to be covered from
reserves. In this Budget, staff
now projects that General
Fund departments will
underspend the 2001/ 02
budget by 6%, which will
exceed the City Council’s
target. This savings,
combined with somewhat
higher, but still reduced,
2001/ 02 revenue will result
approximately in a slight
decrease of <$ 2,977> in fund
balance for the 2001/ 02 fiscal
year to the level of
$ 10,748,695 at 6/ 30/ 02. The budget for 2002/
03 estimates that total fund balance will drop
by <$ 262,564> to $ 10,486,131 at 6/ 30/ 03.
Revenues for the General Fund, including
transfers in, are estimated to be $ 16,246,408.
This represents a 7% increase over the
previous year’s projected revenues, which is
partly related to the inclusion of the new
Community and Cultural Center budget in
2002/ 03, but not in the prior year. By excluding
the $ 889,000 in revenue related to this new
activity, revenues would instead increase by
2%. Sales taxes and transit occupancy taxes
are estimated to increase by 2.5% in 2002/
03. In general, the 2001/ 02 Budget estimates
reflect very modest growth for most General
Fund revenues, as we expect that the
economy will recover slowly over the next year.
Appropriations for 2002/ 03, including transfers
out, are $ 16,508,971, which represents a 3%
increase compared to the prior year budget
and a 9% increase compared to the prior year
projected expenditures. However, if the
$ 889,000 in Community and Cultural Center
activity, including $ 175,000 in furnishings, is
excluded from 2002/ 03, expenditures for the
General Fund would decrease by 3%
compared to the prior year budget or increase
by 3% compared to the prior year projected
expenditures.
( 0.5)
0.0
0.5
1.0
1.5
2.0
92/ 93 93/ 94 94/ 95 95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02* 02/ 03*
$ Millions
Fiscal Year
Operating Gain ( Loss)
* Projected
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The General Fund budget includes an
additional $ 120,000 in 2002/ 03, re- budgeted
from the prior year, to assist the Morgan Hill
Community Health Foundation in providing
medical services to the community.
The two graphs below show that there has
been a consistent General Fund operating
surplus since 1992/ 93, except for a very small
deficit in 1994/ 95, which has provided growth
in fund balance up to June 2002. These
surpluses have allowed fund balance to grow
from $ 504,095 at 6/ 30/ 92 to $ 10,748,695,
including designations, at 6/ 30/ 2003, as
estimated.
In order to strategically plan for the future, it
is appropriate for the City to explain the
purpose of designations. Based upon this
premise, a total of $ 3.2 million was originally
designated in the 2001/ 02 Budget, and this
amount was increased during 2001/ 02 to
$ 3,382,000. Staff recommends that
designations be adjusted to a new level of
$ 3,319,436 by the City Council. This includes
adding $ 200,000 to the designation for fire
master plan implementation and using
$ 262,564 of the designation for economic
uncertainty to cover the excess of proposed
2002/ 03 expenditures over revenues. The
following summarizes the 2001/ 02 and 2002/
03 designations:
By designating the $ 3,319,436, the available
undesignated fund balance for the General
Fund would be $ 7,166,694, or 43% of the
$ 16,508,971 budget, which is certainly a very
safe reserve level. While not designated for
specific purposes, the remaining $ 7,166,694
is available for important purposes such as
meeting cash flow needs, contingent liabilities
for operational & facilities needs, future
projects, and other designations to meet
community needs.
Most of the General Fund is committed to
Public Safety. Police appropriations are
$ 6,370,972 and Fire appropriations are
$ 3,623,938. The total of these amounts
accounts for 61% of General Fund
appropriations.
The remainder of the General Fund accounts
for General Government operations ( City
Council, City Clerk, City Manager, Finance,
Human Resources, and City Attorney) and
Park Maintenance and Recreation Services.
A significant portion of the administrative cost
is recovered in the form of charges to other
City Departments for services performed.
Operating costs for the new Community and
Cultural Center are reflected in the General
Fund, creating another opportunity and
commitment. It is anticipated that this new,
ongoing financial commitment, high on the City
Council’s priorities, can be absorbed by the
General Fund in the years to come. A
schedule of future anticipated revenues and
expenditures for the Community and Cultural
Budget Message ( continued)
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Designation Summary 002/ 03 2002/ 03
2001/ 02 Changes Proposed
• Designation for economic uncertainty: $ 1,182,000 ($ 262,564) $ 919,436
• Designation for emergencies: $ 1,000,000 0 $ 1,000,000
• Designation for Fire Master Plan Implementation: $ 1,200,000 200,000 $ 1,400,000
Total Designations: $ 3,382,000 ($ 62,564) $ 3,319,436
6.0
8.0
10.0
12.0
14.0
16.0
18.0
92/ 93 93/ 94 94/ 95 95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02* 02/ 03*
$ Millions
Fiscal Year
Revenues
Expenditures
* Projected
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Budget Message ( continued)
included a $ 377,000 transfer to the Street
Maintenance Fund. A schedule reflecting the
cost of street maintenance and the funding
sources for past years and future years, as
projected, is included in the special analysis
section. A $ 60,000 transfer to the General Plan
Update Fund for the cost of the Greenbelt
Study and other General Plan related costs
not charged to other funds is also included in
the Budget.
The most significant sources of General Fund
revenues are:
• Sales Tax of $ 5,330,000, or 33% of total
estimated revenues
Center is included in the special analysis
section. For 2002/ 03, the $ 889,311 in
proposed operating costs for 58% of the
fiscal year and the one- time furnishing costs
are to be financed with $ 368,979 in class
revenue & rental income and with a $ 520,332
transfer from the Community Center Fund
previously established to provide start- up
funds for new City recreational facilities.
Recommended transfers out of the General
Fund for 2002/ 03 include a $ 100,000 annual
contribution to the Community Center
Operations Fund to help meet the
commitment to finance the operations of the
Community and Cultural Center and the
future Indoor Recreation Center. Staff also
Discretionary Support LESS LESS
TOTAL DEPT TRANSFERS NET
Department COSTS REVENUES IN COSTS
City Council/ Community Promtns. $ 237,021 $ 224,693 $ 12,328
City Attorney 668,556 326,149 342,407
City Manager 393,276 221,650 171,626
Recreation 479,220 29,000 450,220
Community & Cultural Center 889,311 368,979 520,332 0
Human Resources 606,543 296,169 310,374
Volunteer Program 38,193 27,222 10,971
City Clerk 373,823 362,336 11,487
Elections 65,810 65,810
Finance 1,075,090 612,987 462,103
Medical Services 120,000 120,000
Police - Admin 596,573 596,573
Police - Patrol 3,131,616 270,000 2,861,616
Police - Support Services 867,088 296,150 570,938
Police - Emergency Services 89,549 89,549
Police - Special Operations 792,805 792,805
Fire Administration 3,623,938 65,050 3,639,078
Government Public Access 46,755 22,000 24,755
Communications & Marketing 116,982 116,982
Park Maintenance 826,483 100,000 726,483
Animal Control 71,918 25,000 46,918
Dispatch Services 821,421 821,421
Other Transfers Out 537,000 35,000 502,000
TOTALS $ 16,508,971 $ 2,877,385 $ 925,332 $ 12,706,254
FINANCED BY DISCRETIONARY REVENUES $ 12,706,254
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Budget Message ( continued)
• Property taxes of $ 2,008,000, or 12%
of total estimated revenues
• Transient Occupancy Tax of $ 892,000,
or 5% of total estimated revenues
• Motor Vehicle State Subventions of
$ 1,965,000, or 12% of total estimated
revenues
• General Administration Overhead of
$ 1,855,937, or 11% of total estimated
revenues
• Franchise Fees of $ 948,602, or 6% of
total estimated revenues
The following chart shows how much of the
2002/ 03 General Fund budget is supported
by discretionary general taxes and other
revenues paid by residents and businesses.
As shown below, all General Fund costs not
recovered through departmental revenues
( fees, grants, and reimbursements) are fully
financed by discretionary revenues.
COMMUNITY DEVELOPMENT FUND
The Community Development Fund is a
special revenue fund used to account for
services supporting private development
activity. The fund is dependent upon the
collection of planning, building and
engineering development fees to finance the
Department’s costs. This year appropriations
are $ 3,307,849, which represents a 7%
decrease over the prior year’s budget.
Revenues in 2002/ 03 are estimated to be
$ 2,118,423, or 10% more than the prior year
budgeted revenues. However, the proposed
revenues for 2002/ 03 assume that community
development fees, in total, will be increased
by at least 20% through the adoption of higher
fees by September 1, 2002, based upon a
preliminary consultant study indicating that
community development fees should be
increased an average of 59% in order to fully
recover costs. If fee increases are not adopted
by the City Council, then sufficient funding is
not expected to be available to finance the
proposed 2002/ 03 Community Development
Fund budget and proposed 2002/ 03
appropriations would need to be reduced.
Staff is in the process of proposing a fee
increase to the City Council.
The General Plan Update
Fund continues to provide
the resources for the
General Plan Update. The
2002/ 03 program
provides funding for the
Greenbelt Study. The
General Plan Update
effort is critical for the City
as it provides the basic
policy blueprint on growth,
development and
services. This program is
partially funded through a
$ 60,000 transfer from the
General Fund.
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STREET MAINTENANCE FUND
The Street Maintenance Fund is a special
revenue fund used exclusively for street
maintenance and traffic safety activities.
Included are maintenance and repair of all
roadways, streets, curbs, gutters, medians,
roadway shoulders, and alleys; cleaning and
repair of catch basins and storm drains; traffic
engineering, safety studies and modifications,
and related geographic information systems;
street lighting and signal operations; and
painting, marking, and striping. State gas tax
funds are distributed based on population.
Revenues, including transfers in, are budgeted
to be $ 1,793,500, includ- ing $ 644,000 of Gas
Tax funds, $ 117,000 of AB 2928 monies,
$ 377,000 in trans- fers from the General Fund,
and $ 600,000 in transfers from utility funds.
Bud- geted revenues, including transfers
reflect a 0% increase over the prior year. The
proposed 2002/ 03 transfer from the General
Fund is $ 107,000 more than in the prior year.
PARK MAINTENANCE FUND
When the City Council established this fund,
it hoped to use it as an “ endowment” fund for
park maintenance and to pay for repairs and
upgrades to existing parks. The interest
received on the principal balance of the fund
is to be appropriated strictly for maintenance
of the City’s parks. Revenues come from
double park fees and from previous one- time
general fund transfers of “ excess” General
Fund reserves.
The interest revenue from this park
maintenance “ endowment” fund normally
generates at least $ 100,000 per year in
additional park maintenance funds that is used
to pay for personnel in the Park Maintenance
operation. This fund over time may resolve
park maintenance concerns of City policy
makers and residents. As described earlier in
this message, approximately $ 200,000 in
open space fees have been removed from this
fund and placed into a new “ Open Space
Fund.”
Budget Message ( continued)
SEWER AND WATER FUNDS
These are enterprise funds, where all costs
incurred are covered by the fees and charges
paid by users of the systems. Presently, the
City has approximately 12,000 accounts
( including residential and business
customers). The City water system meets or
exceeds water quality standards. Budget
details on these funds are found under the
Public Works section of the budget document
listed as Water Operations and Sewer
Operations.
The Sewer Operations Fund budget of
$ 6,875,234 represents a 1% increase over the
prior year budget, while the Water Operations
Fund budget of $ 7,924,609 represents a 12%
increase over the prior year. Sufficient fund
balance, combined with estimated revenues,
exists within each of these funds to fully
finance these costs. A study of the sewer and
water rates by a consultant is underway and
the results will be brought to the City Council
on May 22, 2002, so that appropriate steps
may be taken to make corrections to sewer
and water rates for the long- term, considering
the resources on hand and future capital
needs.
INTERNAL SERVICE FUNDS
Internal Service funds are essentially
responsibility centers within the City that
provide services to other departments. These
other departments are then charged for the
portion of services provided to them by the
respective internal service responsibility
center. These funds include Equipment
Replacement, Information Systems, Building
Maintenance, CIP Administration, and various
Insurances.
CAPITAL PROJECTS FUNDS
Total capital projects are budgeted at
$ 27,325,000, as reflected in the CIP attached
as an appendix. The capital projects budget
is comprised of:
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Budget Message ( continued)
• Parks and Recreation projects totaling
$ 8,088,000
• Public Facilities projects totaling
$ 2,675,000
• Sanitary Sewer projects totaling
$ 5,823,000
• Storm Drainage projects totaling
$ 2,025,000
• Streets projects totaling $ 7,004,000
• Water projects totaling $ 1,710,000
Capital projects are described in detail within
the CIP. Current year projects are included in
the budget document under the applicable
responsibility centers. Projects for 2002/ 03
include:
• Parks Land Purchase ($ 1.9 million for
acquisition)
• Regional Soccer Complex ($ 1.0 million
for construction)
• Sports Complex – Aquatics portion ($ 1.6
million for design/ professional services)
• Sports Complex – Sports Field portion
($ 2.5 million for site acquisition)
• Police Facility ($ 1 million for site
acquisition)
• Community Indoor Recreation Center
($ 1.6 million for design/ professional
services)
• Sewer Plant Improvement Project ($ 3.9
million for construction)
• Butterfield Retention Basin ($ 1.9 million for
site acquisition)
• Butterfield Blvd. Construction- San Pedro
to Tennant ($ 3.9 million - construction)
• Pavement Rehabilitation Program ($ 1.5
million for construction)
Many of these projects are possible because
of the referendum for the Plan Amendment to
the 1981 Ojo de Agua Redevelopment Plan that
was approved by the voters in November 1999.
Of the total $ 27.3 million in capital projects
described in the CIP for 2002/ 03, $ 12.8 million
will be financed by the Redevelopment Agency.
THREATS TO THE
BUDGET
This recommended
budget reflects a plan to
meet our obligations
based on changes in
local revenues. However,
it is possible that the
Governor and Legislature
may propose to shift
revenues and costs in
order to balance the State
Budget. Based on the
Governor’s promise, we
have not anticipated any
reduction in the motor
vehicle in lieu fee
revenues.
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Other significant increases in spending are
possible if we accelerate implementation of
the Fire Master Plan, or if retirement benefits
are enhanced for former employees.
APPROPRIATIONS LIMIT
The City’s appropriations limit for this budget
cycle has been prepared in accordance with
the uniform guidelines. The appropriations
limit imposed by Propositions 4 and 111
creates a restriction on the amount of
“ proceeds of taxes” which can be appropriated
by the City in any fiscal year. The limit is based
on actual appropriations during FY 1978/ 79,
and it is increased each year using the growth
of population and inflation. The limit of
$ 50,291,376 for 2002/ 03 is significantly
greater than the actual appropriations of
$ 11,875,450 subject to the limit for this year.
Therefore, it appears that the City will not
exceed its approp- riations limit in the
foreseeable future.
SUMMARY
The City has very healthy reserves and
resources are on hand or will be available to
accomplish the major Visioning projects that
the com- munity desires. The City has the
opportunity to prudently expand services to
meet the demands of a growing community
and the opening of new fac- ilities, yet still
maintain appropriate financial reserves. While
growth in revenue over the next year is
projected to be small, we expect that the
economy will fully recover after next year and
return to the more typical growth in revenue.
The strong reserves maintained by the City
reflect the foresight of the City Council and
community.
Budget Message ( continued)
I wish to acknowledge my appreciation to the
members of the City Council for your
continued support of programs that deliver
necessary public services and for their sound
fiscal policy. I also wish to express my
appreciation to the talented and dedicated City
staff for their assistance in the development
of this budget.
Respectfully submitted,
J. Edward Tewes
City Manager
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General Information
About the City
Budget Overview
Budget Process
Fiscal Policies
Description of Funds
Glossary
Resolution adopting City Budget
Appropriation Limit Calculation
Resolution adopting RDA Budget
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P rior to the arrival of Spanish
expeditions en route from Mexico,
peaceful tribes of Native Americans
inhabited the lush Santa Clara Valley. Under
Spanish and Mexican jurisdictions, instituted
in 1778, a vast region that includes present
day Morgan Hill was one of the most
substantial Spanish land grants for nearly
three quarters of a century.
In 1845 Martin Murphy, Sr. acquired 9,000
acres known as the Rancho Ojo de Aqua de
la Coche. Murphy had been a leader of the
first party of pioneers to cross the Sierra
Nevada range at Truckee Pass, later to
become the route for the Southern Pacific
Railroad. The Murphy family made its home
in the valley below El Toro Mountain. By 1870
Martin’s seven sons and daughters had
About the City
managed to acquire more
than 70,000 acres.
In 1851 the youngest son,
Daniel, married Maria
Fisher, heiress to the
neighboring 19,000 acre
Rancho Laguna Seca.
Diana, their precocious
daughter secretly married
Hiram Morgan Hill in 1882.
When Daniel Murphy died,
Diana inherited 4,500 acres
of their original rancho in
the shadow of El Toro.
Diana and Hiram Morgan
Hill built their estate, the
Villa Mira Monte, between
the railroad and Monterey
Road in 1886. When the
first Southern Pacific
station was built in 1898,
the railroad referred to this
area as Huntington. Many
visitors would request the
train stop at “ Morgan Hill’s
Ranch,” changing the name
to Morgan Hill.
By 1896 the growing
community had a
population of 250 with a
post office, depot, two hotels, a restaurant,
and several churches and shops. There was
much controversy over the incorporation of
the city. The Times printed many editorials
supporting the issue, while those opposed
were fearful of higher taxes. But the “ yes” vote
won by a margin of 65- 36 and Morgan Hill
became incorporated November 10, 1906. By
1909 the population rose to 1,000.
The first school was built in 1894, but was
soon outgrown and in 1907 architect William
Weeks designed a new school. By the 1920s
the City was known for its agricultural products
including prunes, apricots, peaches, pears,
apples, walnuts, and almonds. The region
boasted prosperous vineyards until
Prohibition demanded that production
temporarily cease. Around the 1950s Morgan
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About the City ( continued)
Hill experienced an economic transformation
from an agricultural center to a suburban
residential community. Growth began to
accelerate rapidly in the 1970s as Silicon
Valley developed and workers were attracted
to Morgan Hill’s small town atmosphere,
sense of community and reasonable housing
prices. On November 3, 1973 the Morgan Hill
Civic Center and library were proudly
dedicated to the community of 7,000. By 1980
the population increased to approximately
18,000 residents. The 2000 census confirmed
that 33,000 citizens called Morgan Hill their
home.
Thoughtful planning has made Morgan Hill
one of the most desirable and fastest growing
city in Santa Clara County. People are drawn
to the beautiful hillsides surrounding the valley,
the peaceful atmosphere, the quaint
downtown shops and eateries and general
quality of life. Parks and open spaces abound,
making Morgan Hill one of the last
communities in the region with a charming,
small town atmosphere. The fertile soil in and
around Morgan Hill help growers produce
wonderful fruits, vegetables and award
winning wine. Residents and visitors often
spend a sunny afternoon visiting some of the
local vineyards offering wine tasting and tours,
enjoying one of the local golf courses, or
floating above the city in a hot air balloon.
The City of Morgan Hill is actively working to
increase the amount of park space available
to its citizens. It has purchased the 37- acre
soccer complex on Condit Road and plans to
covert it to a sports complex with fields for
multiple sports, restrooms and concession
stands. The City recently purchased eight
acres immediately east of its Community
Park. The land is slated to include an indoor
recreation center with a gymnasium, youth
and senior wings, and perhaps a swimming
pool. It also hopes to build an aquatics center.
Morgan Hill youth have the opportunity to
participate in an array of organized sports
activities such as baseball, soccer, football
as well as the availability of dance,
gymnastics, and karate studies. The Morgan
Hill Unified School District works closely with
the city to plan new school campuses.
The Morgan Hill Unified School District
encompasses nearly 300 square miles and
serves the ethnically diverse population of
Morgan Hill, San Martin, portions of San Jose,
and unincorporated areas of the county. We
are comprised of 15 schools: ten elementary,
two middle, one high school, a continuation
high school, and a community adult school.
MHUSD’s multi- ethnic population includes
over 9000 students and 1000 employees. The
Board of Education continues to place a high
priority on informing the community at large
about its schools. Three new schools opened
last school year: Barrett Elementary, a district
school; Crossroads Baptist School, a private
school; and the Charter School of Morgan Hill,
a charter school funded by the state and
private donations.
The City of Morgan Hill has made a large
commitment to the arts by building a
Community and Cultural Center at the key
intersection downtown. When complete, the
$ 13 million center will feature space for
community members to create art and
ceramics, to dance and exercise, and to meet.
Part of this project includes converting an
historic church into a 199- seat theater. This
$ 2.4 million theater will feature a 46- foot
stage, deep enough to allow multiple uses of
the facility at the same time. These facilities
are expected to
be completed by
the end of 2002.
The Valley in
which Morgan Hill
is located is
approx- imately 4
miles wide and is
sur- rounded by
the Santa Cruz
moun- tain range
to the west, and
the Diablo
mountain range to
the east. Morgan
Hill is located in
south- ern Santa
Clara Valley,
approx- imately 12
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Morgan Hill At A Glance
Incorporated: ....................................... 1906
Population: ....................................... 34,785
Households: ..................................... 10,982
Average Household Income: .......... $ 96,000
Persons per households: ..................... 3.19
Square Miles: .......................................... 12
Elevation ( above sea level): ................. 320’
Average Rainfall: ............................... 19.77”
Average Tempature
January: High ..................................... 57.9
Low ...................................... 41.1
July: High ..................................... 81.5
Low ......................................... 56
Retail sales tax: ................................. 8.25%
Public Schools:........................................ 15
Churches: ................................................ 21
Libraries: ................................................... 1
Newspapers/ New Publications:................. 3
Top Employers ( May 2002)
Morgan Hill Unified School District ...... 869
Anritsu .................................................. 753
Abbott Laboratories ............................. 603
Condor Systems .................................. 350
Media Arts Group ................................. 290
Paramit Corporation ............................. 250
Cloverleaf Construction ....................... 226
Educational Data Systems................... 200
Fox Racing, USA ................................. 200
City of Morgan Hill ................................ 185
Safeway Inc ......................................... 185
Custom Chrome................................... 172
Ericsson RF ......................................... 166
North Coast Medical ............................ 150
Sakata Seeds America ........................ 150
Target Store ......................................... 130
Mervyns ............................................... 127
Specialized Bicycle Components ......... 120
Young’s Market ..................................... 110
Alien Technology .................................... 96
Zeta ........................................................ 85
Advanced Machine Programming ......... 80
Pacific Hills Manor ................................. 70
Projected Growth
2000 2010 % incr
Population 32,122 38,8001 21%
Households 12,430 15,440 24%
Employed 20,700 23,800 15%
Jobs 15,220 19,970 31%
Source: Projection 2000 Association of Bay
Area Govenments. 1 City of Morgan Hill
General Plan 2000
miles south of San Jose, 10 miles north of
Gilroy, and 15 miles inland from the Pacific
Coast. The city is a short commute to the
businesses of the Silicon Valley, and Caltrain
runs daily through the city and connects
commuters to San Jose’s light rail systems
throughout the Bay area. Over the past three
years, the city has seen a substantially
elevated level of industrial/ commercial
development. During the last three years,
Morgan Hill has gained 1.7 million square feet
of building space. Morgan Hill is considered
a natural setting for business - a balanced
business environment that inspires
innovation and productivity. From its
picturesque hillside setting and exceptional
quality of life.
Founded in 1906, Morgan Hill is a general
law city with a council- manager form of
government. The four Councilmembers are
elected in municipal elections to four- year
terms. The Mayor is directly elected to serve
a two- year term. In addition to the Council,
the City Clerk and City Treasurer are also
elected to four- year terms. The city has a
volunteer Planning Commission, made up of
seven members appointed by a majority vote
of the Council to four- year terms. Other
advisory boards include the Architecture and
Site Review, Bicycle Advisory, Library, Mobile
Home Rent Control, Parks and Recreation,
Senior Advisory and Youth Advisory
commissions.
About the City ( continued)
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Budget Overview
The Budget Overview contains general
information regarding the budget process,
including the budget guide, a description of
the budget process, basis of accounting,
Gann appropriation limit calculations, key
revenue projections and assumptions, a
description of allocated costs, budget policies,
description of debt obligations and
comparison of financial information to other
jurisdictions. A description of funds and
glossary of terms are also included in this
section.
Budget Guide
This budget document contains the complete
budget for the fiscal year 2002/ 03 for the City
of Morgan Hill and the Redevelopment
Agency of the City of Morgan Hill. Included
are the budgets for the City’s General Fund,
Special Revenue Funds, Capital Projects
Funds, Debt Service Funds, Enterprise
Funds, Internal Service Funds, Agency
Funds, Redevelopment Agency Funds and
Capital Projects and Housing Funds. A
complete copy of the Capital Improvement
Plan ( CIP) is also included.
The Budget Message includes the City
Manager’s letter of transmittal which focuses
on the local economy, the budget as a plan
for service delivery and the goals of staff for
implementation of service levels.
Fund Balances contains a summary of all
budgeted funds. Each fund shows estimated
beginning fund balance at July 1, 2002,
projected revenues, expenditures, transfers
in, transfers out and projected ending fund
balance at June 30, 2003. Also included in
this section is a bar chart reflecting a five-year
trend for the General Fund fund balance.
Summaries are prepared for Revenues and
Appropriations for all funds. These
summaries include prior year’s actual, 2001/
02 projected and budgeted, and 2002/ 03
proposed activity. General Fund revenues and
expenditures are also summarized using
graphs and/ or bar charts for comparison
purposes.
Personnel levels have a direct effect on public
services. The Staffing section shows 2001/
02 and 2002/ 03 staffing levels by function.
Organization charts are provided in this
section and in each departmental budget
where applicable. Departmental budgets
also include a description of the department’s
activities, current year highlights and goals
for the coming fiscal year. The sections for
each department contains historical
information on staffing and expenditures.
Included in the Supplemental Information
section are various reports on the status of
pilot programs implemented, and reports
regarding important issues facing the City.
A complete copy of the Five Year Capital
Improvement Plan ( CIP) is included under the
heading of Capital Programs. The five year
document represents a plan of improvements,
a detailed description of each project and the
available funding sources.
Basis of Accounting
Governmental funds include the General
Fund, Special Revenue Funds, Debt Service
Funds and Capital Project Funds. These
funds are accounted for using the modified
accrual basis of accounting. Agency funds are
also accounted for using the modified accrual
basis.
Proprietary funds include Enterprise Funds
and Internal Service Funds. These funds are
accounted for using the accrual basis of
accounting.
The budgetary process is based upon
accounting for certain transactions on a basis
other than generally accepted accounting
principles ( GAAP basis). The major difference
between the budgetary basis and GAAP basis
is that year end encumbrances are
recognized as the equivalent of expenditures
on the budgetary basis in governmental funds,
while encumbered amounts are not
recognized as expenditures on the GAAP
basis.
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Appropriations Limit
The City’s appropriations limit for the budget
cycle has been prepared in accordance with
uniform guidelines prepared by the League
of California Cities. The City of Morgan Hill
uses the cost of living index and the
percentage of population growth within city
limits to calculate the factor for increasing the
appropriation limit. Propositions 4 and 111
create a restriction on the amount of tax
revenue which can be appropriated in any
fiscal year. The fiscal year 2002/ 03
appropriation limit is $ 50,291,376 and
appropriations subject to this limit are
$ 11,875,450. Schedules showing the
calculations follow this narrative.
Allocated Costs
The City of Morgan Hill has seven internal
service funds. These funds account for the
costs of services provided to other City
departments. Costs are allocated to user
departments based on various factors such
as square footage, personnel, number of
computer workstations and historical trends.
In addition to Internal Service funds, the City
of Morgan Hill allocates General Fund
overhead to other funds/ departments as
General Administration Overhead charge.
The total administrative charge for the budget
year 2002/ 03 is $ 1,855,937. These charges
are based on services provided on the basis
of General Fund departments and are
allocated by estimated service levels and
personnel.
Budget Administrative Policies - With the
adoption of the annual budget, the City
Council recognizes that the appropriations for
the operating activities and capital budgets
are based on estimates of municipal needs
for the fiscal year. In order to establish
reasonable flexibility in the administration of
the budget, the following policies have been
adopted. These policies are intended to
provide the authority necessary for the City
Manager and Department Directors to
administer the budget during the fiscal year
in accordance with City Council directions,
goals and policies, and in light of varying
conditions which may occur.
Appropriations
Appropriations are the amounts approved for
expenditure by the City Council with the
adoption of the annual budget and
subsequent budget amendments which are
brought to the Council for their approval.
Appropriations are separated by object
categories within an activity budget. The
object categories available are: 1) Employee
Services; 2) Supplies and Services; 3) Capital
Outlay; 4) Debt Service; 5) Internal Services;
and 6) Transfers. The legal level of control is
established as follows:
A Department Director has the authority to
transfer between lines items within an activity
to facilitate the functions of the activity in
accordance with the directions, goals and
policies of the City Council. The City Manager
is authorized to transfer appropriations within
an activity budget to facilitate the functions of
that activity in accordance with the directions,
goals and policies of the City Council.
A transfer of appropriations between activities
requires City Council approval. Additional
appropriations require City Council approval.
New programs and new appropriations not
anticipated during the budget process require
City Council approval.
Budgetary Control
Budgetary control is maintained through
monthly reports of revenue and expenditure
accounts. The detailed monthly reports are
reviewed by the City Manager and each
Department Director. The City Council is
provided a summary report each month. The
monthly report is reviewed by the Audit and
Finance Committee. The Committee is
composed of two Councilmembers and the
City Treasurer. The Director of Finance serves
as staff to the Committee.
A mid- year budget review and adjustment
process is completed each January and
submitted to the Council for review and
approval in February. Budgetary adjustments
are only considered within the framework of
the adopted budget and the City Council
directions, goals and policies. New programs
and new appropriations are not considered
as part of the mid- year budget review.
Budget Overview ( continued)
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Debt Obligations
Special assessment districts within the City
have issued debt repayable by special
assessments levied on property in each
respective district. The City is under no legal
Budget Overview ( continued)
obligation to repay the special assessment
debt. However, the City is required to make
advances or to be the purchaser of last resort
for property on which delinquent assessments
are unpaid for certain districts. The following
schedule presents the outstanding debt on
these districts as of July 1, 2002:
Year Year Principal Debt Service
District of Issue of Maturity Outstanding 2002/ 03
Cochrane Bus Park 1986 2012 1,509,500 72,796
Joleen Way 1992 2009 140,000 28,000
Principal Debt Service
District Due Date Outstanding 2002/ 03
1992 SCRWA 2023 24,280,000 1,327,799
1993 Water Facilities 2017 1,464,032 83,303
1999 COP 2021 4,685,000 110,116
Other bonds payable and certificates of
participation ( COP’s) include sewer revenue
bonds, a water facility loan and certificates of
participation for water system improvement
projects. The outstanding debt on these
issues is as follows:
All principal and interest payments due on
bonds, COP’s and loans during fiscal year
2002/ 03 are included in the budget.
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Morgan Hill Budget Process
The Budget is based upon an in- depth analysis of actual and projected fund balances, revenues,
and expenditures. Each City department prepares line item detail for each of their activities and
recommends certain service levels and activity goals for the upcoming budget year. The Finance
Department prepares revenue projections based upon input from other departments. The City
Manager then reviews individual departmental requests, prioritizes activities based upon City
Council policy, and makes certain adjustments. At the conclusion of this process, the proposed
budget is prepared and is submitted to the City Council for review.
The City of Morgan Hill has prepared a one- year budget for Fiscal Year 2002/ 03. Beginning in
January 2002, each department was provided with a budget calendar, information packet and
various Finance prepared data. Departments submitted proposed revenues and expenditures
for the 2002/ 03 fiscal year based on certain service levels and activity goals. General government
revenue projections were prepared by Finance. This process, overseen by the City Manager,
was completed in May 2002. The City Manager’s recommended budget was presented to the
City Council on May 15, 2002. Following Council workshops on May 31, 2002, and a public
hearing, the fiscal year 2002/ 03 budget was adopted June 26, 2002.
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Description of Funds
GENERAL FUND ( 010)
The General Fund is a governmental fund
used to account for the day- to- day operations
of the City. All financial activity that is not
required to be accounted for in another fund
is included in the General Fund. Public safety,
government administration, recreation, and
park maintenance are funded from the
General Fund.
The General Fund receives all general taxes,
such as property taxes, sales taxes and
transient occupancy taxes, licenses and
permits, funding from other government
agencies such as vehicle- in- lieu fees, fines
and penalties, interest, rentals not specifically
designated for another fund, and charges for
current services.
STREET MAINTENANCE FUND
( 202)
The Street Maintenance Fund is a special
revenue fund used to account for the receipt
and disbursement of State and Federal gas
tax and grant monies, and other monies that
are to be used for the maintenance, repair,
and design of streets. State gas tax funds
are distributed to cities based on population
from gas taxes collected at the point of sale.
The use of gas tax funds is restricted to street
expenditures by State and Federal legislation.
PUBLIC SAFETY TRUST FUND
( 204/ 205)
The Public Safety Trust Fund is a special
revenue fund used to account for the receipt
and disbursement of State and Federal grant
monies that provide for the restoration of
public safety services. The use of grant
monies in this fund is legally restricted for the
funding of public safety officers and/ or
supplies under the terms of the grants.
COMMUNITY DEVELOPMENT FUND
( 206)
The Community Development Fund is a
special revenue fund used to account for the
collection of planning, building, and
engineering fees. The expenditures of these
funds are restricted to the costs associated
with processing building, engineering and
planning applications.
GENERAL PLAN UPDATE FUND
( 207)
The General Plan Update Fund is a special
revenue fund established to account for the
costs of updating the General Plan. The
update has been funded by transfers from
various funds: General, Park Development
Impact, Community Development,
Redevelopment, Housing, Sewer, and Water.
The expenditures are restricted to costs
incurred for the General Plan update.
COMMUNITY CENTER FUND ( 210)
The Community Center Fund was established
to provide a vehicle for the accumulation of
funds and future interest earnings to help
offset the start up costs and costs of operation
and maintenance for new community
facilities.
HOUSING AND COMMUNITY
DEVELOPMENT FUNDS ( 215/ 216)
The Housing and Community Development
Funds are special revenue funds used to
account for Federal low and moderate income
housing program funds. These funds are
restricted to low and moderate income
housing uses.
ENVIRONMENTAL PROGRAMS
FUND ( 232)
The Solid Waste Management Fund is a
special revenue fund established to account
for the costs of developing and implementing
waste reduction programs and administering
the City’s franchise agreement for solid waste.
The revenues for this fund come from a
portion of the franchise fees for garbage
services and are restricted to the above uses.
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OTHER SPECIAL REVENUE FUNDS
There are seven other small special revenue
funds. The balances in these funds are
restricted by law and/ or ordinance. The funds
include: Museum Rental, Asset Seizure,
Lighting and Landscape, Mobile Home Park
Rent Stabilization, Senior Housing Trust
Fund, Housing Mitigation Fund, and
Employee Assistance Fund.
The Senior Housing Trust Fund was
established to account for the funds that were
set aside to fund programs for elderly persons
over the age of 55, while the Housing
Mitigation Fund was established to provide
for housing related programs and projects.
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are used to
account for the financial resources to be used
for acquisition and/ or construction and/ or
maintenance of capital facilities. The funds
are restricted by State law and/ or City
ordinance for specific uses. AB1600 restricts
the collection and use of certain development
impact fees. AB1600 ( Government Code
Sect. 66000- 66003) indicates that there must
be a reasonable relationship between the fee
and the purpose for which it was charged.
The following funds are the Capital Projects
Funds:
PARK DEVELOPMENT IMPACT
FUND ( 301)
Park Development Impact Fund revenues are
received from developers of properties. The
funds may only be used for the design,
development and construction of new parks
within the City. ( Fund is subject to the
restrictions of AB1600.)
PARK MAINTENANCE/
DEVELOPMENT FUND ( 302)
Park Maintenance/ Development Fund
receives revenues from developers of
properties and the funds may only be used
for the maintenance and development of the
City’s parks.
LOCAL DRAINAGE IMPACT FUND
( 303)
Local Drainage Impact Fund revenues are
received from developers of properties and
the funds may only be used for the design
and construction of new storm drains. ( Fund
is subject to the restrictions of AB1600.)
LOCAL DRAINAGE FUND ( 304)
Local Drainage Fund revenues are received
from developers of properties and the funds
may be used for the design, construction, and
maintenance of storm drains.
OFF- STREET PARKING FUND ( 305)
Off- Street Parking Fund accumulates
revenue from charges to developers within
the downtown core area to help meet future
parking requirements.
OPEN SPACE FUND ( 306)
This is a new fund set up to account for open
space fees collected from developers. These
funds are to be expensed for open space
expenditures.
TRAFFIC IMPACT FUND ( 309)
Traffic Impact Fund revenues are received
from developers if their projects have an
adverse impact on traffic flows, streets, etc.
The funds collected may be expended on new
streets, traffic signals, and improvements of
existing streets where they are impacted by
new development. ( Fund is subject to the
restrictions of AB1600.)
POLICE IMPACT FUND ( 311)
Police Impact Fund revenues are derived
from a fee charged to developers to cover
the costs to construct public improvements
for Police facilities needed as a result of new
development. Expenditures may only be
made for the future construction of the
required new Police facilities or to reimburse
the City for funds advanced to construct such
facilities. ( Fund is subject to the restrictions
of AB1600.)
Description of Funds ( continued)
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FIRE IMPACT FUND ( 313)
Fire Impact Fund revenues are derived from
a fee charged to developers to cover the costs
to construct public improvements required for
Fire facilities as a result of new development.
Expenditures may only be made for the future
construction of the required new Fire facilities
or to reimburse the City for sums advanced
to construct such facilities. ( Fund is subject
to the restrictions of AB1600.)
PUBLIC FACILITIES IMPACT FUNDS
( 346/ 347)
Public Facilities Impact Fund revenues are
derived from fees charged to developers to
cover the costs to construct public
improvements required as a result of new
development. Expenditures may only be
made for the future construction of the
required new facilities or to reimburse the City
for funds advanced to construct such facilities.
( Fund 347 is subject to the restrictions of
AB1600.)
LIBRARY IMPACT FUND ( 348)
Library Impact Fund revenues are derived
from a fee charged to developers to cover
the costs to construct library improvements
required as a result of new development.
Expenditures may only be made for the future
construction of the required new library
facilities or to reimburse the City for funds
advanced to construct such facilities. ( Fund
is subject to the restrictions of AB1600.)
UNDERGROUNDING FUND ( 350)
Undergrounding Fund receives revenues
from developers for the undergrounding of
utilities in areas of new development.
Expenditures may be made from these funds
only for the design and construction
associated with such undergrounding.
ASSESSMENT DISTRICT FUNDS
The Assessment District Funds are used to
account for the debt service and required
reserve funds for certain assessment districts
within the City. Property assessments are
collected from property owners and debt
service payments are made from the
assessments collected. These funds are
restricted by the bond covenants and
agreements. These bonds are not a debt of
the City.
REDEVELOPMENT AGENCY FUND
The Health and Safety Code of the State of
California specifies the funds that
Redevelopment Agencies are to use to
account for the activity of an Agency.
REDEVELOPMENT PROJECT FUND
( 317)
Redevelopment Project Fund accounts for the
activities of the Redevelopment Agency
capital projects, economic development, and
the administrative costs of the Agency.
Expenditures may be made from this fund
only for the design, engineering,
administration, construction and other costs
associated with Redevelopment projects.
REDEVELOPMENT HOUSING
FUNDS ( 327/ 328)
Redevelopment Housing Funds account for
the 20% set- aside funds collected from
property tax increment for housing programs.
Expenditures may be made from this fund
only for the design, engineering,
administration, construction and other costs
associated with Redevelopment housing
projects.
ENTERPRISE FUNDS
The Sewer and Water funds are divided into
four different funds each: Operations, Impact,
Rate Stabilization, and Capital Projects. Each
fund is restricted to uses as described.
SEWER OPERATIONS FUND ( 640)
The Sewer Operations Fund receives
revenues from user charges based on sewer
usage. All expenditures for the operation of
the sewer system including mainenance, and
debt service are charged to the Sewer
Operations Fund.
Description of Funds ( continued)
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Description of Funds ( continued)
SEWER IMPACT FUND ( 641)
The Sewer Impact Fund receives revenues
from developer charges to cover the costs to
construct sewer improvements required as
a result of new development. Expenditures
may only be made for the construction of the
required improvements or to reimburse the
City for funds advanced to construct such
improvements. ( Fund is subject to the
restrictions of AB1600.)
SEWER RATE STABILIZATION
FUND ( 642)
The Sewer Rate Stabilization Fund was
established to avoid fluctuations in the sewer
rates charged. The fund was initially funded
with one- time revenue. The initial contribution
to the Rate Stabilization Fund was $ 4,000,000
from the Sewer Operations Fund.
SEWER CAPITAL PROJECTS FUND
( 643)
Previously identified as the Sewer System
Replacement Fund, this fund was renamed
and combined with the Sewer Capital Projects
Fund. This fund was established to avoid
fluctuations in the sewer rates charged by
providing reserve funding for future system
replacements. The fund was initially funded
with one- time revenues. The initial
contribution to the System Replacement Fund
was $ 1,300,000 from the Sewer Operations
Fund. Future funding will come from transfers
from the Operations Fund.
WATER OPERATIONS FUND ( 650)
The Operations Fund receives revenues from
user charges based on water usage. All
expenditures for the operation of the water
system including maintenance, and debt
service are charged to the Water Operations
Fund.
WATER IMPACT FUND ( 651)
The Impact Fund receives revenues from
developer charges to cover the costs to
construct water improvements required as a
result of the new development. Expenditures
may only be made for the construction of the
required improvements or to reimburse the
City for funds advanced to construct such
improvements. ( Fund is subject to the
restrictions of AB1600.)
WATER RATE STABILIZATION
FUND ( 652)
The Rate Stabilization Fund was established
to avoid fluctuations in the water rates
charged. The fund was initially funded with
one- time revenue. The initial contribution to
the Rate Stabilization Fund was $ 800,000
from the Water Operations Fund.
WATER CAPITAL PROJECTS FUND
( 653)
Previously identified as the Water System
Replacement Fund, this fund was renamed
and combined with the Water Capital Projects
Fund. This fund was established to avoid
fluctuations in sewer rates by providing
reserve funding for future system
replacements. The initial contribution to this
fund was $ 2,550,000 from the Water
Operations Fund. Future contributions will
come from transfers from the Operations
Fund.
INTERNAL SERVICE FUNDS
Internal Service Funds account for the
financing of goods and/ or services provided
by one department to other departments
within the City and the Redevelopment
Agency. The Internal Service Fund
accumulates all the costs related to the
service provided and then the costs are
charged to the department receiving the
goods and/ or services based on the quantity
of service received.
The City maintains the following Internal
Service Funds:
730 Information Systems
740 Building Maintenance
745 Capital Improvement Program
Administration
760 Unemployment Insurance
770 Worker’s Compensation
790 Equipment Replacement
795 General Liability Insurance
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Glossary of Budget & Financial Terms
Accounting System: The total set of records and procedures which are used to record,
classify, and report information on the financial status and operations
of an entity.
Appropriation: An authorization made by the City Council which permits officials to
incur obligations against and to make expenditures of governmental
resources for a specific purpose within the budget year, July1 through
June 30.
Assessed Valuation: The estimated value placed upon real and personal property by the
County Assessor as the basis for levying property taxes.
Assets: Property owned by the City which has monetary value.
Audit: A systematic examination of the City’s financial records and
processes concluding in a written report. It includes test of
management’s internal accounting controls and is intended to:
- ascertain whether financial statements fairly present financial
positions and results of operations;
- test whether transactions have been legally performed:
- identify areas for possible improvements in accounting practices
and procedures;
Balance Sheet: A statement presenting the financial position of an entity by disclosing
its assets, liabilities, and fund equities as of a specific date.
Bond A written promise to pay ( debt) a specified sum of money ( called
( Debt Instrument): principal or face value) at a specified future date ( called the maturity
date) along with periodic interest paid at a specified percentage of
the principal ( interest rate). Bonds are typically used for long- term
debt to pay for specific capital expenditures.
Budget ( Operating): A plan of financial operation listing an estimate of proposed
expenditures ( appropriations) for a given period ( typically a fiscal
year) and the proposed means of financing them ( revenue estimates).
Budget Calendar: The schedule of key dates or milestones which the City follows in
the preparation and adoption of the budget.
Budget Message: A discussion of the proposed budget presented by the City Manager
in writing as a part of, or supplement to, the budget document. The
budget message explains principal budget issues against the
background of financial experience in recent years and presents
recommendations made.
Capital Assets: Assets of significant value and having a useful life of more than one
year. Capital assets are also called fixed assets.
Capital Budget: A plan of proposed capital expenditures and the means of financing
them.
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Capital Improvement A five year plan for expenditures setting forth each capital project,
Program: the amount to be expended in each year, and the method of financing
those expenditures. Expenditures may include the design,
construction, or purchase of land, buildings, or facilities.
Capital Outlays: Expenditures for the acquisition of capital assets. Includes the cost
of land, buildings, permanent improvements, machinery, large tools
and rolling and stationary equipment.
Capital Projects: Projects for purchase or construction of capital assets. Typically a
capital project encompasses a purchase of land and/ or the
construction of a building or facility.
Capital Projects Used to account for financial resources used for the acquisition or
Fund: construction of major capital facilities ( other than those financed by
Enterprise and Internal Service Funds).
Certificate of A negotiable or non- negotiable receipt for monies deposited in a
Deposit: bank or financial institution for a specified period at a specified rate
of interest.
CIP Engineering: All work involved in preparation of construction plans, contractual
documents and construction administration for the design and
upgrade of various infrastructures for projects identified in the 5-
year Capital Improvement Program.
Contingency: A budgetary reserve set aside for emergencies or unforeseen
expenditures not otherwise budgeted for.
Debt Service: Payment of interest, and repayment of principal to holders of the
City’s debt instruments.
Debt Service Fund: Used to account for the accumulation of resources for, and payment
of, general long- term debt.
Deficit: ( 1) The excess of an entity’s liabilities over its assets ( see Fund
Balance); or
( 2) The excess of expenditures or expenses over revenues during
an accounting period.
Encumbrances: Obligations in the form of purchase orders or contract commitments
which are chargeable to an appropriation and for which a part of the
appropriation is reserved. Encumbrances are eliminated when paid
or when a liability is recorded.
Enterprise Fund: Separate fund used to account for government operations that are
financed and operated in a manner similar to business enterprises.
These programs are entirely or predominantly self- supporting.
Examples of Enterprise Funds are those used for sewer and water
systems.
Glossary ( continued)
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
37
Expenditures: The payment against an appropriation for goods received or services
rendered.
Fiscal Year: The twelve- month period beginning July 1st and ending the following
June 30th.
Fund: An independent fiscal and accounting entity with a self- balancing set
of accounts recording cash and/ or other resources together with all
related liabilities, obligations, reserves, and equities which are
segregated for the purpose of carrying on specific activities or attaining
certain objectives.
Fund Balance: The excess of an entity’s assets over its liabilities representing the
cumulative effect of revenues and other resources over expenditures
and other uses.
General Fund: The fund supported by taxes, fees, and other revenues that may be
used for any lawful purpose. The general fund accounts for all
financial resources except those required to be accounted for in
another fund. This fund accounts for the general operating programs
of the City.
General Obligation When the City pledges its full faith and credit to the repayment of the
Bonds: bonds it issues, then those bonds are general obligation ( G. O.) bonds.
Sometimes the term is also used to refer to bonds which are to be
repaid from taxes and other general revenues. In California, G. O.
bonds issued after 1977 must be authorized by public referenda with
two- thirds voter approval.
Infrastructure: All City owned facilities supporting the operation of the governmental
unit. It includes: streets, roads, bridges, curbs and gutters, parks,
water and sewer lines, storm drains, water pump stations and
reservoirs, water wells, sewer lift stations, all government buildings
and related facilities.
Intergovernmental A contribution of assets ( usually cash) by one governmental unit or
Grant: other organization to another. Typically, these contributions are made
to local governments from the State and Federal Governments.
Grants are usually made for specified purposes.
Internal Service Funds used to account for the financing of goods or services provided
Fund: by one department or agency to other departments or agencies of
the City.
Investments: Securities and real estate purchased and held for the production of
income in the form of interest, dividends, rentals or base payments.
Liability: A debt or other legal obligation arising out of transactions in the past
which must be liquidated, renewed or refunded at some future date.
NOTE: The term does not include encumbrances.
Glossary ( continued)
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
38
Maturities: The dates on which the principal or stated values of investments or
debt obligations mature and may be reclaimed.
Operating Funds: Resources derived from recurring revenue sources used to finance
ongoing operating expenditures and pay- as- you- go capital projects.
Performance Specific quantitative measures of work performed within an activity
Measures: or program ( e. g., total miles of streets cleaned). Also, a specific
quantitative measure of results obtained through a program or activity
( e. g., reduced incidence of vandalism due to new street lighting
program).
Reserve: An account used to indicate that a portion of fund equity that is legally
restricted for a specific purpose.
Resources: Total dollars available for appropriations including estimated
revenues, fund transfers, and beginning fund balances.
Revenue: Total dollars received from taxes, fees, permits, licenses, interest,
and intergovernmental sources including grants within the fiscal year.
Revenue Bonds: Bonds which pledge one specific revenue source to repayment. In
addition to a pledge of revenues, such bonds sometimes may be
secured by a lien against property.
Revenue Estimate: A formal estimate of how much revenue will be earned from a specific
revenue source for some future period; typically, a future fiscal year.
Special Revenue Separate fund used to account for the proceeds of special revenue
Fund: sources that are restricted by law ( or administrative action) to
expenditures for specific purposes.
Unit Cost: The cost required to produce a specific product or unit of service
( e. g., the cost to purify one thousand gallons of water).
User Charges: The payment of a fee for direct receipt of a public service by the
party benefitting from the service.
Yield: The rate earned on an investment based on the price paid.
Glossary ( continued)
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
39
Adoption of the City Budget &
Appropriation Limit
RESOLUTION NO. 5589
A RESOLUTION OF THE CITY COUNCIL OF CITY OF MORGAN HILL
ADOPTING THE 2002/ 03 ANNUAL CITY BUDGET AND ADOPTING THE
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2002/ 03
WHEREAS, the City of Morgan Hill Budget for the 2002/ 03 fiscal year was prepared
by the City staff and reviewed by the City Manager;
WHEREAS, the City of Morgan Hill Budget for the 2002/ 03 fiscal year was presented
to the City Council on May 15, 2002, was reviewed at Public Workshops on May 31, 2002,
and was further reviewed at a Public Hearing on June 26, 2002;
WHEREAS, in connection with the May 15, 2002 City Council meeting, the May 31,
2002 Budget Workshops, and the June 26, 2002 Public Hearing, certain changes to the City of
Morgan Hill Budget for the 2002/ 03 fiscal year were approved by the City Council;
WHEREAS, in accordance with the State Revenue and Taxation Code Section 7910,
the City of Morgan Hill’s 2002/ 03 appropriations limit is $ 50,291,376, as shown on Schedule
A. The appropriations for the 2002/ 03 fiscal year, as shown on Schedule B, which are subject
to the appropriations limit as set forth in Article XIIIB of the California Constitution, do not
exceed the limit as stated above. The annual adjustment factors that were selected to calculate
the 2002/ 03 limit were: 1) California Per Capita Personal Income Reduction of < 1.277%>;
and 2) City Population Growth of 2.08%; and
WHEREAS, modifications and amendments to the adopted 2002/ 03 City of Morgan
Hill Budget can only be made in accordance with the “ Budget Administrative Policies” in the
Proposed Budget;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morgan
Hill finds that the Capital Improvement Program is in conformity with the General Plan; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morgan
Hill does hereby approve and adopt the City of Morgan Hill 2002/ 03 Budget, Appropriations
Limit and Appropriations Limit Adjustment Factors for Fiscal Year 2002/ 03.
PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting
held on the 26th day of June, 2002, by the following vote:
AYES: COUNCIL MEMBERS: LARRY CARR, HEDY CHANG,
DENNIS KENNEDY, GREG SELLERS,
STEVE TATE
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
40
City Budget & Appropriation Limit
( continued)
City of Morgan Hill
Resolution No. 5589
Page 2
• CERTIFICATION •
I, IRMA TORREZ, CITY CLERK OF THE CITY OF MORGAN HILL,
CALIFORNIA, do hereby certify that the foregoing is a true and correct copy of Resolution
No. 5589 adopted by the City Council at a Regular Meeting held on June 26, 2002
WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
41
City Budget & Appropriation Limit
( continued)
SCHEDULE A
CITY OF MORGAN HILL
SPENDING LIMIT CALCULATION
FISCAL YEAR 2002- 03
APPROPRIATIONS SUBJECT TO LIMIT
Fiscal Year 2002- 03 General Fund Revenues $ 16,066,908
Less Non Proceeds of Tax 4,191,458
Total appropriations subject to limits $ 11,875,450
APPROPRIATION LIMIT
Fiscal year 2001- 02 appropriation limit $ 49,900,365
Plus Change Factor:
A. Cost of living adjustment - CPI 0.9873
B. Population Adjustment 1.0208
Total Change Factor 1.00783584
Increase in appropriation limit 391,011
FISCAL YEAR 2002- 03 APPROPRIATION LIMIT 50,291,376
Remaining appropriation capacity 38,415,926
Available capacity as a percent of appropriation limit 76%
NOTES
a. Cost of Living adjustment is based on percentage change in California per capita income.
b. Population adjustment is based on the greater of annual population change for the
City of Morgan Hill or Santa Clara County.
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
42
City Budget & Appropriation Limit
( continued)
SCHEDULE B
CITY OF MORGAN HILL
SPENDING LIMIT CALCULATION
FISCAL YEAR 2002- 03
PROCEEDS NON PROCEEDS
REVENUE SOURCE OF TAX OF TAX TOTALS
Property Tax $ 2,050,000 2,050,000
Sales Tax 5,618,400 5,618,400
Transient Occupancy Tax 892,000 892,000
Franchise Revenue 965,000 965,000
Property Transfer Tax 220,000 220,000
Business License / Other Permits 164,450 164,450
Motor Vehicle in Lieu 1,965,600 1,965,600
Fines and Penalties 95,000 95,000
Use of Money and Property 724,400 724,400
Other Revenue / Other Agencies $ 262,150 262,150
Police and Fire Fees 166,350 166,350
Current Service Charges General Govt. 2,193,226 2,193,226
Transfers 750,332 750,332
Total $ 11,875,450 $ 4,191,458 $ 16,066,908
Percentage of Total 74% 26% 100.00%
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
43
Adoption of the RDA Budget
RESOLUTION NO. MHRA- 241
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
MORGAN HILL ADOPTING THE 2002/ 03 ANNUAL AGENCY BUDGET
WHEREAS, the Redevelopment Agency of the City of Morgan Hill Budget for the
2002/ 03 fiscal year was prepared by Redevelopment Agency and City staff and was reviewed
by the City Manager/ Executive Director;
WHEREAS, the Redevelopment Agency of the City of Morgan Hill Budget for the
2002/ 03 fiscal year was presented to the Agency Board of Directors on May 15, 2002, was
reviewed at Public Workshops on May 31, 2002, and was further reviewed at a Public Hearing
on June 26, 2002;
WHEREAS in connection with the May 15, 2002 Redevelopment Agency Board of
Directors meeting, the May 31, 2002 Budget Workshops, and the June 26, 2002 Public Hearing,
certain changes to the Redevelopment Agency of the City of Morgan Hill Budget were approved
by the Board of Directors; and
WHEREAS, modifications and amendments to the adopted 2002/ 03 Redevelopment
Agency of the City of Morgan Hill Budget can only be made in accordance with the “ Budget
Administrative Policies” described in the Proposed Budget;
NOW, THEREFORE, the Redevelopment Agency Board finds that planning and
administrative costs attributable to the Housing 20% Set- Aside fund are necessary and
proportionate to amounts proposed for actual housing activities during the fiscal year; and
NOW, THEREFORE, BE IT RESOLVED that the Agency Board of the Redevelopment
Agency of the City of Morgan Hill does hereby approve and adopt the Redevelopment Agency
of the City of Morgan Hill 2002/ 03 Budget.
PASSED AND ADOPTED by the Morgan Hill Redevelopment Agency at a Special Meeting
held on the 26th day of June, 2002 by the following vote:
AYES: AGENCY MEMBERS: LARRY CARR, HEDY CHANG,
DENNIS KENNEDY, GREG SELLERS,
STEVE TATE
NOES: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
ABSTAIN: AGENCY MEMBERS: NONE
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
44
RDA Budget ( continued)
City of Morgan Hill
Resolution MHRA- 241
Page 2
• CERTIFICATION •
I, IRMA TORREZ, AGENCY SECRETARY, do hereby certify that the foregoing
is a true and correct copy of Resolution No. MHRA- 241 adopted by the Morgan Hill
Redevelopment Agency at the Special Meeting of June 26, 2002
WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
45
Budget Summary
General Fund Balance Chart
Fund Balance Projections
Interfund Transfers
Cost Allocation
Summary of Revenues & Transfers In
Revenue Charts
Expenditure Charts
Summary of Expenditures and
Transfers Out
Expenditures & Transfers Out
( by category)
Comparison of Municipalities
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
46
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
47
General Fund Balance Chart
General Fund Balance Growth
General Fund Balance Gain ( Loss)
$ 0
$ 2,000,000
$ 4,000,000
$ 6,000,000
$ 8,000,000
$ 10,000,000
$ 12,000,000
$ 14,000,000
$ 16,000,000
$ 18,000,000
92/ 93
93/ 94
94/ 95
95/ 96
96/ 97
97/ 98
98/ 99
99/ 00
00/ 01
01/ 02*
02/ 03*
General Fund
Revenues
General Fund
Expenditures
General Fund
Balance
* Projected
( 0.5)
0.0
0.5
1.0
1.5
2.0
92/ 93 93/ 94 94/ 95 95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02* 02/ 03*
$ Millions
Fiscal Year
Operating Gain ( Loss)
* Projected
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
48
Fund Balance Projection ( FY 01/ 02)
00/ 01 01/ 02 01/ 02 01/ 02 01/ 02 01/ 02
Fund Bal Projected Projected Projected Projected Projected Bal
Fund Description 07/ 01/ 01 Revenue Transfer In Transfer Out Expenditure 06/ 30/ 02
General Fund
010 General Fund Undesignated 7,751,671 14,287,143 869,790 526,119 14,633,792 7,366,693
General Fund Designated 3,000,000 - - - - 3,382,000
Subtotal 10,751,671 14,287,143 869,790 526,119 14,633,792 10,748,693
Special Revenue Funds
202 Street Maintenance 3,322,481 1,858,138 780,000 181,005 5,623,286 156,328
204/ 205 Public Safety Trust 899,426 272,866 1,119 505,037 467 667,907
206 Community Development 2,577,862 1,790,130 150,703 - 2,963,599 1,555,096
207 General Plan 157,789 34,134 - - 97,182 94,741
210 Community Center 525,447 24,729 200,000 - - 750,176
215 HCD - 180,874 - - 180,874 -
216 HCD Rehab - 257,000 - - 257,000 -
220 Museum 6,429 168 - - 2,999 3,598
225 Asset Seizure 37,729 2,221 - - 7,500 32,450
226 OES/ FEMA 8,421 5,360 - 13,781 - -
229 Light & Landscape 89,176 102,284 - - 137,521 53,939
230 Govt Public Access 39,581 - - 39,581 - -
232 Environmental Programs 288,506 379,124 - - 331,697 335,933
234 Mobile Home Park Rent 42,719 2,246 60,000 - 23,451 81,514
235 Senior Housing Trust 1,146,991 37,054 - 994,619 - 189,426
236 Housing Mitigation - - 994,619 - - 994,619
240 Employee Assistance - - - - - -
Subtotal 9,142,558 4,946,328 2,186,441 1,734,023 9,625,576 4,915,728
Capital Project Funds
301 Park Development 2,592,393 529,445 - - 148,891 2,972,947
302 Park Maintenance 2,547,191 215,859 - 293,000 54,887 2,415,163
303 Local Drainage 2,265,039 325,191 - - 312,488 2,277,742
304 Local Drainage/ Non AB 1600 2,731,694 134,232 - - 236,451 2,629,475
305 Off Street Parking 3,742 121 - - - 3,863
306 Open Space - - 193,000 - - 193,000
309 Traffic Impact 1,922,581 1,274,444 - - 1,083,764 2,113,261
311 Police Impact 1,119,432 57,622 - - 21,145 1,155,909
313 Fire Impact 2,384,186 147,120 - - 51,231 2,480,075
317 RDA 21,486,264 13,640,781 158,005 103,848 27,180,766 8,000,436
327 Housing 6,776,269 3,476,103 - 106,855 7,369,843 2,775,674
340 MH Bus Ranch AD CIP 44,900 1,503 - - - 46,403
342 MH Bus Ranch II AD CIP 50,480 1,633 - - - 52,113
346 Public Fac/ Non AB 1600 761,006 248,512 - - 190,745 818,773
347 Public Facilities Impact 1,646,941 152,171 - - 1,796,432 2,680
348 Library Impact 331,372 35,965 - - 182 367,155
350 Undergrounding 1,035,762 242,134 - - 181,121 1,096,775
Subtotal 47,699,253 20,482,836 351,005 503,703 38,627,946 29,401,445
Debt Service Funds
527 Hidden Creek AD - - - - - -
533 Dunne/ Condit AD - - - - - -
536 Encino Hills AD 147,557 1,929 - - 83,855 65,631
539 MH Business Park AD 386,354 277 - - 374,458 12,173
542 Sutter Business Park AD 294,745 520 - - 270,680 24,585
545 Cochrane Bus Park AD 549,546 244,780 - - 228,896 565,430
551 Joleen Way AD 33,602 36,516 - - 42,255 27,863
Subtotal 1,411,805 284,022 - - 1,000,144 695,683
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
49
Fund Balance Projection ( FY 02/ 03)
01/ 02 02/ 03 02/ 03 02/ 03 02/ 03 02/ 03
Fund Bal Projected Projected Projected Projected Projected Bal
Fund Description 07/ 01/ 02 Revenue Transfer In Transfer Out Expenditure 06/ 30/ 03
General Fund
010 General Fund Undesignated 7,366,693 15,321,076 925,332 537,000 15,971,971 7,104,130
General Fund Designated 3,382,000 - - - - 3,382,000
Subtotal 10,748,693 15,321,076 925,332 537,000 15,971,971 10,486,130
Special Revenue Funds
202 Street Maintenance 156,328 830,500 977,000 - 1,853,186 110,642
204/ 205 Public Safety Trust 667,907 160,400 - 270,000 45,538 512,769
206 Community Development 1,555,096 2,118,423 - - 3,307,851 365,668
207 General Plan 94,741 47,000 66,582 - 162,996 45,327
210 Community Center 750,176 19,041 100,000 520,332 - 348,885
215 HCD - 181,306 - - 181,306 -
216 HCD Rehab - 50,000 - - 50,000 -
220 Museum 3,598 212 - - 3,069 741
225 Asset Seizure 32,450 2,057 - - 34,060 447
226 OES/ FEMA 0 - - - - 0
229 Light & Landscape 53,939 107,429 - - 138,672 22,696
230 Govt Public Access 0 - - - - 0
232 Environmental Programs 335,933 380,755 - - 318,170 398,518
234 Mobile Home Park Rent 81,514 2,507 - - 70,335 13,686
235 Senior Housing Trust 189,426 85,541 - - - 274,967
236 Housing Mitigation 994,619 37,500 - - 1,032,119 -
240 Employee Assistance - 40,786 40,000 - 40,000 40,786
Subtotal 4,915,728 4,063,457 1,183,582 790,332 7,237,302 2,135,133
Capital Project Funds
301 Park Development 2,972,947 1,129,006 - 3,291 2,853,296 1,245,366
302 Park Maintenance 2,415,163 155,300 - 100,000 65,000 2,405,463
303 Local Drainage 2,277,742 315,223 - - 1,866,589 726,376
304 Local Drainage/ Non AB 1600 2,629,475 139,949 - - 161,727 2,607,697
305 Off Street Parking 3,863 152 - - - 4,015
306 Open Space 193,000 - - - - 193,000
309 Traffic Impact 2,113,261 1,080,268 - 3,291 180,250 3,009,988
311 Police Impact 1,155,909 64,919 - - 1,058,142 162,686
313 Fire Impact 2,480,075 166,935 - - 1,428 2,645,582
317 RDA 8,000,436 12,832,353 - - 19,353,409 1,479,380
327 Housing 2,775,674 3,538,590 - - 6,313,976 288
340 MH Bus Ranch AD CIP 46,403 1,825 - - - 48,228
342 MH Bus Ranch II AD CIP 52,113 2,052 - - - 54,165
346 Public Fac/ Non AB 1600 818,773 254,300 - - - 1,073,073
347 Public Facilities Impact 2,680 148,617 - - 56,412 94,885
348 Library Impact 367,155 36,299 - - 208 403,246
350 Undergrounding 1,096,775 692,745 - - 730,404 1,059,116
Subtotal 29,401,445 20,558,533 - 106,582 32,640,841 17,212,555
Debt Service Funds
527 Hidden Creek AD - - - - - -
533 Dunne/ Condit AD - - - - - -
536 Encino Hills AD 65,631 4,209 - - - 69,840
539 MH Business Park AD 12,173 7,707 - - - 19,880
542 Sutter Business Park AD 24,585 6,215 - - - 30,800
545 Cochrane Bus Park AD 565,430 158,673 - - 139,309 584,794
551 Joleen Way AD 27,863 43,068 - - 42,569 28,362
Subtotal 695,683 219,872 - - 181,878 733,677
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
50
Fund Balance ( FY 01/ 02 Continued)
00/ 01 01/ 02 01/ 02 01/ 02 01/ 02 01/ 02
Fund Bal Projected Projected Projected Projected Projected Bal
Fund Description 07/ 01/ 01 Revenue Transfer In Transfer Out Expenditure 06/ 30/ 02
Enterprise Funds
640 Sewer Operations 7,336,857 5,727,902 - 850,543 5,800,261 6,413,955
641 Sewer Impact 4,858,311 1,439,744 - - 2,685,140 3,612,915
642 Sewer Rate Stabilization 3,036,882 409,995 - - 1,892 3,444,985
643 Sewer Capital Projects 3,704,980 117,971 500,000 - 2,040,939 2,282,012
650 Water Operations 5,217,685 6,337,737 175,543 2,715,000 5,446,685 3,569,280
651 Water Impact 1,488,052 473,287 - - 1,926,363 34,976
652 Water Rate Stablization 808,514 25,993 - - 445 834,062
653 Water Capital Projects 2,724,981 74,349 2,350,000 - 5,122,585 26,745
Subtotal 29,176,262 14,606,978 3,025,543 3,565,543 23,024,310 20,218,930
Internal Service Funds
710 Human Resources 20,678 - - 20,678 - -
720 Finance 372,877 - - 372,877 - -
730 Information Systems 139,666 313,067 243,074 - 313,067 382,740
740 Building Maintenance 101,389 662,500 55,000 - 520,925 297,964
745 CIP Administration 149,538 1,063,894 - - 1,063,894 149,538
755 City Legal Defense 28,910 - - 28,910 - -
760 Unemployment Insurance 95,497 - - - 15,000 80,497
770 Worker’s Compensation 63,175 436,271 - - 373,901 125,545
790 Equipment Replacement 2,066,212 481,691 23,000 - 237,321 2,333,582
795 General Liability Insurance 819,940 407,856 - - 311,806 915,990
Subtotal 3,857,883 3,365,279 321,074 422,465 2,835,914 4,285,857
Agency Funds
841 MH Business Ranch I AD 1,552,176 779,259 - - 724,222 1,607,213
842 MH Business Ranch II AD 260,804 99,753 - - 90,858 269,699
843 MH Business Ranch 98 AD 1,642,812 918,264 - - 898,443 1,662,633
845 Madrone Bus Park - Exempt 9,044,379 881,962 - - 8,295,203 1,631,138
846 Madrone Bus Park - Taxable 1,431,941 185,817 - - 1,332,677 285,081
848 Tennant Ave Business Park 955,488 460,031 - - 1,049,608 365,911
881 Police Donation Trust 21,411 2,766 - 2,000 - 22,177
Subtotal 14,909,010 3,327,852 - 2,000 12,391,011 5,843,851
TOTAL - ALL FUNDS 116,948,442 61,300,438 6,753,853 6,753,853 102,138,693 76,110,187
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
51
Fund Balance ( FY 02/ 03 Continued)
01/ 02 02/ 03 02/ 03 02/ 03 02/ 03 02/ 03
Fund Bal Projected Projected Projected Projected Projected Bal
Fund Description 07/ 01/ 02 Revenue Transfer In Transfer Out Expenditure 06/ 30/ 03
Enterprise Funds
640 Sewer Operations 6,413,955 5,798,669 - 891,377 5,983,857 5,337,390
641 Sewer Impact 3,612,915 1,301,887 - - 4,006,874 907,928
642 Sewer Rate Stabilization 3,444,985 123,378 - - 2,190 3,566,173
643 Sewer Capital Projects 2,282,012 108,429 500,000 - 1,822,627 1,067,814
650 Water Operations 3,569,280 6,286,481 173,877 2,077,500 5,847,108 2,105,030
651 Water Impact 34,976 407,602 460,000 - 900,234 2,344
652 Water Rate Stablization 834,062 32,844 - - 509 866,397
653 Water Capital Projects 26,745 7,662 1,200,000 - 810,955 423,452
Subtotal 20,218,930 14,066,952 2,333,877 2,968,877 19,374,354 14,276,528
Internal Service Funds
710 Human Resources ( 0) - - - - ( 0)
720 Finance 0 - - - - 0
730 Information Systems 382,740 381,190 - 40,000 546,190 177,740
740 Building Maintenance 297,964 837,139 - - 588,126 546,977
745 CIP Administration 149,538 1,308,227 - - 1,308,227 149,538
755 City Legal Defense 0 - - - - 0
760 Unemployment Insurance 80,497 970 - - 25,000 56,467
770 Worker’s Compensation 125,545 399,907 - - 482,200 43,252
790 Equipment Replacement 2,333,582 511,371 - - 186,472 2,658,481
795 General Liability Insurance 915,990 387,806 - - 330,600 973,196
Subtotal 4,285,857 3,826,610 - 40,000 3,466,815 4,605,652
Agency Funds
841 MH Business Ranch I AD 1,607,213 135,458 - - 730,155 1,012,516
842 MH Business Ranch II AD 269,699 99,679 - - 89,995 279,383
843 MH Business Ranch 98 AD 1,662,633 939,155 - - 883,336 1,718,452
845 Madrone Bus Park - Exempt 1,631,138 846,721 - - 1,084,479 1,393,380
846 Madrone Bus Park - Taxable 285,081 184,234 - - 183,851 285,464
848 Tennant Ave Business Park 365,911 332,553 - - - 698,464
881 Police Donation Trust 22,177 1,371 - - - 23,548
Subtotal 5,843,851 2,539,171 - - 2,971,816 5,411,206
TOTAL - ALL FUNDS 76,110,187 60,595,671 4,442,791 4,442,791 81,844,977 54,860,881
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
52
FY 2002/ 03 Interfund Transfers
General Streets Police Trust General Plan Com Ctr Empl Asst
Description Fund ( 010) Fund ( 202) Fund ( 205) Fund ( 207) Fund ( 210) Fund ( 240)
1 Police Services 270,000 ( 270,000)
2 Subsidy of Community Cultural 520,332 ( 520,332)
Center prior to full cost recovery
3 Park Maintenance 100,000
4 Dispatch services 35,000
5 Street maintenance support ( 377,000) 377,000
6 Mitigation of street damamges 600,000
7 General Plan Update ( 60,000) 66,582
8 Set Aside Planning for ( 100,000) 100,000
Community Recreation Center
9 Computer Loan Program 40,000
10 Sewer CIP Transfer
11 Sewer Fund’s share of Utility Billing
12 Water CIP Transfer
TOTAL 388,332 977,000 ( 270,000) 66,582 ( 420,332) 40,000
• CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET • CITY OF MORGAN HILL • FY 2002/ 03 • OPERATING AND CIP BUDGET •
53
Total Transfers: $ 4,442,791
Park Impact Park Maint Traffic Impact Sewer Op Sewer CIP Water Op Water Impact Water CIP Info Svs
Fund ( 301) Fund ( 302) Fund ( 309) Fund ( 640) Fund ( 643) Fund ( 650) Fund ( 651) Fund