City Beat
Next Biennial Budget Process is Underway
By: Maureen Tobin, Communications & Engagement Manager
T
he City of Morgan
Hill’s biennial budget
process for fiscal
years 2018-19 and 2019-20
is now in full swing.
The budget process begins
in January each year when
the City Council conducts a
two-day workshop (January
26 and 27 for the current
budget process) to set its
priorities, goals, and strate-
gies for the organization and
community. The goal setting
workshop is a public meet-
ing and open to all. Once the
workshop is completed, City
teammates then begin the
work to prepare the recom-
mended budget to advance
the agreed upon priorities.
This priority based budget
strategy ensures that the
Council’s and community’s
priorities are the guiding principles for developing the biennial
operating budget and capital improvement program.
In February, the Finance Team and each City department
conduct an extensive review of revenues and expenses for the
current fiscal year and make year - end projections. Additionally,
each department makes revenue projections for the following
two years of the new biennial budget.
Beginning in March, with the Council’s and community’s
priorities in mind, each operating department proposes enhance-
ments -otherwise known as “decision packages”- which they
believe will advance the Council’s priorities. The decision pack-
ages are categorized as ongoing (e.g., personnel) or one-time
investments and evaluated to determine which would best meet
the community’s needs within the City’s financial resources.
The City’s biennial budget is prepared much like a household
spending plan. While a family might plan for such expenses
as housing, food, clothing, transportation, or medical bills, the
City’s focus is for police and fire protection, parks, recreation,
water and sewer systems, housing, economic development,
roads, building maintenance, and much more. City employees
GILROY • MORGAN HILL • SAN MARTIN
work hard to recommend a
budget that aligns resourc-
es and proposes service
level enhancements that
are consistent with the City
Council’s and community’s
priorities, while maintaining
fiscal responsibility.
In May and June, the
City Council will review the
recommended budget dur-
ing an all-day workshop
and a formal public hear-
ing. Public requests and con-
cerns are addressed at this
time and any Council initi-
ated recommendations may
be incorporated into the fin