Budget

Budget Overview

The biennial budget process commences with the City Council adopting its priorities, goals, and strategies for the organization and the community at the beginning of the calendar year.

The priority-based budget strategy ensures that the Council’s and community’s priorities are the guiding principles for developing the biennial operating and capital improvement budgets. To achieve this, each operating department proposes enhancements, also known as decision packages, which are categorized as ongoing or one-time investments and evaluated to determine which would best meet the community’s needs within the city’s financial resources. The outcome is a recommended budget that reflects the City Council’s priorities and strives to enhance service levels for the Morgan Hill community.

The budget process is typically completed in May when the City Manager’s Recommended Biennial Budget is presented to the Council and made available to the public. Budget deliberations begin shortly thereafter with a City Council Budget Workshop, Public Hearing, and ultimately adoption of the recommended biennial budget in June. In the fourth quarter of the first year, a mid-cycle budget review takes place and City Council is provided an update on revenue assumptions, fund balances, and possible amendments to the second-year budget.

The City of Morgan Hill City Council adopted the Biennial Fiscal Year (FY) 2020-21 and FY 2021-22 Operating Budget and FY 2020-2026 Capital Improvement Program Budget on June 17, 2020. 

FY 2020-21 and 2021-22 Operating and FY 2020-21 through 2025-26 Capital Improvement Program Budgets

Budget_Cover_2020_with_blank_page_ADOPTED_Page_1 Opens in new window


Budget Meetings

June 17, 2020 City Council Meeting Item #12: ADOPT THE FISCAL YEAR (FY) 2020-21 AND 2021-22 OPERATING BUDGET, FY 2020-21 THROUGH 2025-26 CAPITAL IMPROVEMENT BUDGET, AND FY 2020-21 APPROPRIATIONS LIMIT

May 15, 2020 City Council Budget Workshop (YouTube video)

April 30, 2020 Community Budget Meeting Video (YouTube video)

April 22, 2020 City Council Budget Introduction staff report and presentation and meeting video (YouTube video)


Quarterly Financial Reports

The City’s Finance Division prepares and presents the monthly financial and investment report to the City Council. Under City Council’s direction, the monthly financial and investment reports are agendized under the Consent Agenda, and quarter ending month’s financial and investment reports (March, June, September and December) are presented to City Council as an Other Business item. In addition, staff report any contracts or agreements between $25,000 to $60,000 that were entered into by the City Manager. This information is included within the quarterly reports. 


Comprehensive Annual Financial Reports

The City of Morgan Hill prepares a Comprehensive Annual Financial Report (CAFR) in conformance with Governmental Accounting Standards Board requirements. The report presents audited financial information for the 12 month period ending June 30 by activity (fund) and for the city as a whole. Additional narrative discusses the city’s financial position and provides additional detail for users.

Reference documentation and information is available in the Archive Center.