17 approximately $1.0 million higher than the forecast provided during development of the FY26-27 and FY27-28 Biennial Budget.
Development Services:
The preliminary revenues for the fiscal year ending June 30, 2026, totaled $8.4 million, compared to approximately $6.3 million in the prior fiscal year, primarily due to updated fees and increased activity. Expenditures, including encumbrances, totaled $6.7 million.
Enterprise Funds:
Total revenues for the Water and Wastewater enterprise funds were $68.6 million. The Wastewater Operating Fund's preliminary total revenue was $21.2 million, approximately $2.8 million above budget. The Water Operating Fund's preliminary total revenue was $22.4 million, approximately $1.1 million below budget. Preliminary FY 2025-26 expenditures, including encumbrances, for the enterprise funds totaled $71.6 million. Pursuant to the City Council's reserve policy, any available funds remaining after the Operating Reserve and Rate Stabilization Reserve have been fully funded are transferred to the respective capital projects funds to support the ongoing maintenance and improvement of the City's utility systems. For FY 2025-26, the Wastewater Operating Fund transferred approximately $7.6 million to the Wastewater Capital Projects Fund, compared with $4.6 million budgeted. The Water Operating Fund transferred approximately $4.5 million to the Water Capital Projects Fund, consistent with the budget.
City Manager’s Authority Report
Pursuant to the City Council Policy 18-05 - Report on delegation of authority to City Manager, Page 21 of Attachment 1 lists the contracts and or agreements between $25,000 to $75,000, or the limit of the California Uniform Public Construction Cost Accounting Act (CUPCCAA), entered into by the City Manager since the last report from April 22, 2026 through July 31, 2026.
COMMUNITY ENGAGEMENT:
Inform
Finance staff prepares these financial reports to inform City officials, the Council, the community, and various lenders and stakeholders about the financial health of the organization, which assists each one of the interested parties in making sound financial and investment decisions.
ALTERNATIVE ACTIONS:
Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
The City Council receives and files the financial and investment report for each month.
At the September 16, 2015 meeting, City Council recommended monthly financial and investment reports be agendized under the Consent Agenda, and quarterly financial and investment reports be presented to City Council as an “Other Business” item.
17 FISCAL AND RESOURCE IMPACT:
The preparation of the report is a part of the Finance workplan.
CEQA (California Environmental Quality Act):
Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FINANCE DEPARTMENT
CITY OF MORGAN HILL
June 30, 2026 - 100% of Year Complete
Prepared by:
Monthly Financial and Investment Reports
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED JUNE 2026 – 100% OF YEAR COMPLETE
General Fund – Preliminary revenues for the fiscal year ending June 30, 2026, totaled $59.7 million, about $0.5 million more than projected during development of the FY26-27 and FY27-28 Biennial Budget. This increase is mainly due to higher sales tax revenue.
The chart below shows historical General Fund revenues by major revenue category from FY21-22 through FY24-25 Actual, FY25-26 Budget, and Preliminary FY25-26.
Preliminary General Fund expenditures and encumbrances for the fiscal year ending June 30, 2026, totaled $62.1 million, of which approximately $1.7 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $60.9 million. This represents an increase of $1.2 million, including encumbrances, compared to the prior year. Excluding encumbrances, expenditures increased by about $1.4 million, primarily due to negotiated salary adjustments, and overall cost increases.
Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of less than $1.0 million for FY25-26. However, this is better than the budgeted net impact to the General Fund of $1.6 million mainly attributable to conservative spending and continued improvement in cost recovery of the program. $16.7 $18.1 $19.1 $19.1 $21.4 $21.1
$12.9 $12.7 $12.2 $12.1 $12.0 $13.0
$5.9 $5.7 $6.0 $6.2 $6.0 $6.0 $6.9 $8.1 $9.2 $9.6 $10.8 $11.2 $9.7 $7.8 $9.4 $9.5 $8.3 $8.4 $52.1 $52.4 $56.0 $57.2 $58.0 $59.7
0 10
20 30
40 50
60 70
FY21-22 FY22-23 FY23-24 FY24-25 Budget
FY25-26
Preliminary
FY25-26
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED JUNE 2026 – 100% OF YEAR COMPLETE
The chart below shows the historical net impact of Recreation Operations to the general fund.
Due to longstanding governmental accounting and budgeting convention, the City’s recreation operations are not charged for indirect costs (known in Morgan Hill as “General Fund Administration”) from the central services departments of City Attorney, City Manager, and Administrative Services.
The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
Development Services Fund – The preliminary revenues for the fiscal year ending June 30, 2026, totaled $8.4 million, compared to approximately $6.3 million in the prior fiscal year, primarily due to updated fees and increased activity. Expenditures, including encumbrances, totaled $6.7 million. Debt Service Funds – Expenditures for the fiscal year ending June 30, 2026, totaled $0.7 million. Debt service in the first half of the fiscal year included both principal and interest, while debt service in the second half included interest only. Debt service payments were scheduled when the bonds were issued and are budgeted for the months specified in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues.
($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 Preliminary
Millions (S)
Historical Net GF Impact
CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED JUNE 2026 – 100% OF YEAR COMPLETE
Wastewater Operations – Preliminary revenues for the fiscal year ending June 30, 2026, totaled $21.2 million. Expenditures and outstanding encumbrances totaled $20.2 million. The table below shows historical Wastewater Operations revenues and expenditures from FY21-22 through FY24-25 Actual, FY25-26 Budget, and Preliminary FY25-26.
(amount in millions) FY21-22 FY22-23 FY23-24 FY24-25
Budget
FY25-26
Preliminary
FY25-26
Revenues 14.9 15.3 15.2 18.2 18.4 21.2
Expenditures 14.8 16.0 14.9 18.1 18.6 20.2
Operating Margin (0.7) 0.1 0.3 (0.2) 0.1 1.0
Operating Margin
without Encumbrances (0.7) 0.1 0.3 (0.2) 0.1 1.3
Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Preliminary revenues for the fiscal year ending June 30, 2026, totaled $22.4 million. Water Operations expenditures, including outstanding encumbrances, totaled $22.1 million. Morgan Hill residents consumed about 6% more water through June compared with the prior three-year average.
As a result, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY21-22 through FY24-25 Actual, FY25-26 Budget, and Preliminary FY25-26.
(amount in millions) FY21-22 FY22-23 FY23-24 FY24-25
Budget
FY25-26
Preliminary
FY25-26
Revenues 16.0 18.1 18.7 21.5 23.5 22.4
Expenditures 15.2 18.0 19.1 21.5 23.7 22.1
Operating Margin 0.8 (0.4) 0.1 - (0.2) 0.3
Operating Margin
without Encumbrances 0.8 (0.4) 0.1 - (0.2) 0.5
Investments – Two securities were either called or matured, and three new securities were purchased.
Total interest earnings received on investments were $636,000 during the month.
% OF ACTUAL PLUS % OF
FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 59,720,599 $ 102% $ 62,101,050 94%
Development Services 8,365,338 142% 6,734,393 99%
Wastewater Operations 21,158,676 115% 20,180,672 109%
Wastewater Other 13,332,766 29% 12,722,383 14%
Water Operations 22,352,033 95% 22,146,127 93%
Water Other 11,773,646 92% 16,586,594 43%
Other Special Revenues * 6,900,743 95% 7,179,491 67%
Capital Projects & Streets 12,439,309 34% 23,739,849 45% Debt Service 691,440 99% 676,433 99%
Internal Service 14,532,780 89% 15,022,375 83%
TOTAL FOR ALL FUNDS 171,267,331 $ 76% $ 187,089,365 58% * Includes all Special Revenue Funds except Development Services Fund and Street Funds.
REVENUES EXPENSES
0% 20% 40% 60% 80% 100% 120% 140% 160%
General
Development Services
Wastewater Operations
Wastewater Other
Water Operations
Water Other
Other Special Revenues *
Capital Projects & Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
June 30, 2026 - 100% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
100%
% OF PRIOR YEAR % CHANGE FROM
REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 21,369,792 $ 21,087,257 $ 99% 19,054,967 $ 11% Sales Tax 11,989,269 13,046,789 109% 12,072,608 8%
Franchise Tax 3,354,166 3,307,108 99% 3,236,560 2%
Hotel Tax 2,658,340 2,676,373 101% 2,471,202 8%
Other Agencies 954,307 700,665 73% 1,829,879 -62%
Service Charges 10,834,856 11,196,371 103% 10,782,732 4% Interest/Other 3,468,411 3,701,263 107% 4,480,907 -17%
Transfers In 3,911,140 4,004,773 102% 3,324,683 20%
TOTAL REVENUES 58,540,280 $ 59,720,599 $ 102% 57,253,539 $ 4% 0% 20% 40% 60% 80% 100% 120%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
June 30, 2026 - 100% of Year Complete
100%
ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 6,981,791 $ 6,766,631 97% 6,808,387 $ -1% Community Services 20,298,319 18,832,551 93% 18,556,277 1% Police 26,228,527 25,587,008 98% 24,660,898 4%
Fire 11,238,402 9,655,782 86% 8,511,451 13%
Transfers Out 1,418,558 1,259,077 89% 2,338,230 -46%
TOTAL EXPENDITURES $ 66,165,597 $ 62,101,050 94% 60,875,243 $ 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
June 30, 2026 - 100% of Year Complete
100%
City of Morgan Hill
Recreation Report - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
% of
Budget June 2026 YTD Budget
Revenues
Membership Services & Rec Programs 6,830,960 $ 678,305 $ 6,765,010 $ Facility Rentals 1,245,612 144,816 1,544,771
Community Services 178,498 141,269 286,134
Transfers in 100,000 6,250 100,000
Total Revenues 8,355,070 $ 970,640 $ 8,695,915 $ 104%
Less: Expenditures
Membership & Program Services 7,547,394 $ 941,100 $ 7,236,889 $ Facility Rentals 1,451,514 146,807 1,265,902
Community Services 923,254 158,064 879,625
Total Expenditures 9,922,163 $ 1,245,971 $ 9,382,416 $ 95% Net Impact without encumbrances (1,567,093) $ (275,331) $ (686,502) $ Encumbrances - - 300,982
Net Impact with encumbrances (1,567,093) $ (275,331) $ (987,483) $
The chart below shows cash balances by fund type reconciled to City's financial system:
City of Morgan Hill
Monthly Investment Report - June 30, 2026
The following are the snapshots of City's investment portfolio as of June 30, 2026. The first chart shows the portfolio composition by investment type:
LAIF - $10.6M
5% CA Class - $5.6M
3%
Treasury - $17.9M
8%
Money Market -
$5.1M
2%
Federal Agency Issues-
$160.2M
75%
Certificate of Deposits -
$1.8M
<1%
Bond Reserves/Trust -
$14.3M
7%
Cash & Other Deposits - ($0.7M)
<1%
Investment Portfolio Composition - $214.8 Million
LAIF - $10.6M
CA Class - $5.6M
Treasury - $17.9M
Money Market - $5.1M
Federal Agency Issues-
$160.2M
Certificate of Deposits -
$1.8M
Bond Reserves/Trust -
$14.3M
Cash & Other Deposits -
($0.7M)
General Fund, $30.3M
Development Services,
$3.1M
Water - Operations,
$1.4M
Water Other, $34.2M
Sewer - Operations,
$5.0M
Sewer Other, $53.2M
Other Special Revenue,
$18.5M
Streets and Capital
Projects, $32.4M
Debt Service , $0.4M
Internal Service,
$29.7M
Agency Funds (assessment
dists./refundable deposits),
$6.6M
Cash Balances by Fund Type - $214.8 Million
The following chart illustrates a yield comparison by month among the City's portfolio, LAIF and 2-Year US Treasury:
The chart below illustrates monthly average days to maturity of the City's portfolio along with the weighted average yield for the past two years:
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Yield Portfolio vs. Benchmarks
LAIF Yield 2 Yr US-Treasury
2.70%
2.80%
2.90%
3.00%
3.10%
3.20%
3.30%
3.40%
3.50%
3.60%
3.70%
0 200
400
600
800
1000
1200
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
CITY
City of Morgan Hill
Investment Portfolio Detail
As of June 30, 2026
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $ 10,629,749 $ 10,629,749 4.9% $ 10,617,763 3.82% California C L A S S 5,573,877 5,573,877 2.6% 5,573,877 3.70% WFB Money Market 3,081,315 3,081,315 1.4% 3,081,315 3.53% US Bank - Portfolio of Securities
Dreyfus Treasury Agency MM 261908107 2,086,409 2,086,409 1.0% 2,086,409 3.52% Treasury Note 91282CCZ2 10/8/2021 1,987,656 1,999,375 0.9% 1,985,520 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688 1,991,861 0.9% 1,985,560 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719 2,020,636 0.9% 1,981,880 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323 1,996,453 0.9% 1,981,880 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536 1,900,207 0.9% 1,875,160 3.61% 8/31/2028 8/31/2028 Treasury Note 91282CFJ5 10/7/2024 1,949,794 1,963,368 0.9% 1,938,280 3.76% 8/31/2029 8/31/2029 Treasury Note 91282CFY2 12/19/2024 1,959,077 1,968,918 0.9% 1,980,700 4.39% 11/30/2029 11/30/2029 Treasury Note 91282CJM4 12/9/2025 2,057,023 2,048,731 1.0% 2,013,520 3.77% 11/30/2030 11/30/2030 Treasury Note 91282CNH0 6/8/2026 2,026,314 1,989,381 0.9% 1,989,060 4.16% 6/15/2028 6/15/2028 FHLB Bond 3130AMYP1 7/15/2021 3,000,000 3,000,000 1.4% 2,996,850 1.13% 7/15/2026 7/15/2026 FHLB Bond 3130ANJC5 8/26/2021 2,000,000 2,000,000 0.9% 1,990,580 0.80% 8/26/2026 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000 3,000,000 1.4% 2,986,770 1.00% 8/26/2026 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000 2,000,000 0.9% 1,990,880 0.90% 8/26/2026 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340 2,004,081 0.9% 1,991,980 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960 1,999,331 0.9% 1,988,040 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000 3,000,000 1.4% 2,980,320 1.13% 7/5/2026 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000 2,000,000 0.9% 1,985,140 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000 3,000,000 1.4% 2,978,820 1.05% 9/30/2026 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000 3,000,000 1.4% 2,979,000 1.02% 9/30/2026 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000 2,000,000 0.9% 1,982,100 1.00% 7/19/2026 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000 2,000,000 0.9% 1,979,320 1.30% 11/18/2026 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000 2,000,000 0.9% 1,979,740 1.74% 1/19/2027 1/19/2027 FHLB Bond 3130B2P58 9/26/2024 2,003,014 2,000,000 0.9% 1,973,660 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000 1,996,050 0.9% 1,981,440 4.32% 10/15/2026 10/15/2029 FHLB Bond 3130B5A73 2/26/2025 2,000,000 2,000,000 0.9% 1,995,380 4.75% 8/26/2026 2/26/2030 FAMCMTN Bond 31424WZC9 5/7/2025 3,000,000 3,000,000 1.4% 2,971,740 4.55% 8/7/2026 5/7/2030 FAMCMTN Bond 31424WB50 5/28/2025 2,000,000 2,000,000 0.9% 1,986,080 4.74% 8/28/2026 5/28/2030 FAMCMTN Bond 31424WG30 6/26/2025 1,200,000 1,200,000 0.6% 1,199,712 4.33% 9/26/2026 6/26/2028 FFCB Bond 3133ETMB0 6/27/2025 2,000,775 2,000,000 0.9% 1,991,900 4.65% 9/24/2026 6/24/2030 FAMCMTN Bond 31424WG55 7/1/2025 2,000,000 2,000,000 0.9% 1,995,040 4.60% 7/1/2026 7/1/2030 FFCB Bond 3133ETNA1 7/2/2025 2,000,000 2,000,000 0.9% 1,993,400 4.50% 7/2/2026 1/2/2030 FNMA Bond 3136GAM22 8/12/2025 2,988,270 2,998,576 1.4% 2,972,190 4.14% 8/12/2026 8/12/2030 FAMCMTN Bond 31424WN81 8/12/2025 2,000,000 2,000,000 0.9% 1,986,020 4.39% 8/12/2026 8/12/2030 FNMA Bond 3136GAQF9 9/3/2025 2,000,000 2,000,000 0.9% 1,980,020 4.25% 6/3/2027 6/3/2030 FFCB Bond 3133ETXY8 9/16/2025 2,000,000 2,000,000 0.9% 1,978,380 4.00% 9/16/2026 9/16/2030 FHLB Bond 3130B7SF2 9/18/2025 2,000,222 2,000,000 0.9% 1,966,720 4.00% 9/17/2026 9/17/2030 FNMA Bond 3136GAUR8 9/25/2025 2,000,000 2,000,000 0.9% 1,948,220 4.20% 7/18/2026 9/18/2030 FNMA Bond 3136GAVD8 9/26/2025 2,000,000 2,000,000 0.9% 1,984,760 4.13% 6/26/2027 9/26/2030 FHLB Bond 3130B7YU2 10/15/2025 2,000,000 2,000,000 0.9% 1,979,000 4.33% 7/5/2026 10/15/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 0.9% 1,979,280 4.12% 7/5/2026 10/21/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 0.9% 1,979,280 4.12% 7/5/2026 10/21/2030 FNMA Bond 3136GAYT0 10/22/2025 2,000,000 2,000,000 0.9% 1,973,360 4.00% 7/23/2026 10/23/2028 FNMA Bond 3136GAZ44 10/24/2025 2,000,000 2,000,000 0.9% 1,976,840 4.00% 10/15/2026 10/15/2030 FHLMCMTN Bond 3134HB3J8 11/3/2025 2,000,000 2,000,000 0.9% 1,986,640 4.00% 8/1/2026 11/1/2028 FNMA Bond 3136GC3B9 11/5/2025 2,000,000 2,000,000 0.9% 1,986,460 4.25% 7/5/2026 11/5/2030 FNMA Bond 3136GC2M6 11/6/2025 2,000,000 2,000,000 0.9% 1,990,460 4.08% 8/6/2026 5/6/2030 FNMA Bond 3136GC3V5 11/6/2025 2,000,000 2,000,000 0.9% 1,977,600 4.13% 11/6/2026 11/6/2030 FNMA Bond 3136GC5Z4 11/18/2025 2,000,000 2,000,000 0.9% 1,984,280 4.13% 8/18/2026 5/18/2029 FHLMCMTN Bond 3134HB6G1 11/20/2025 2,000,000 2,000,000 0.9% 1,988,920 4.00% 7/20/2026 11/20/2028 FHLMCMTN Bond 3134HB7G0 11/20/2025 2,000,000 2,000,000 0.9% 1,975,380 4.15% 11/13/2026 11/13/2030 FAMCMTN Bond 31424W3P5 11/25/2025 1,000,000 1,000,000 0.5% 4.13% 11/25/2026 11/25/2030 998,140 FHLMCMTN Bond 3134HCFN4 12/10/2025 2,000,000 2,000,000 0.9% 1,986,780 4.08% 9/10/2026 12/10/2029
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FNMA Bond 3136GCAE5 12/11/2025 2,000,000 2,000,000 0.9% 1,973,020 4.03% 6/11/2027 12/11/2030 FHLMCMTN Bond 3134HCGL7 12/11/2025 2,000,000 2,000,000 0.9% 1,981,220 4.05% 7/11/2026 12/11/2028 FHLMCMTN Bond 3134HCGL7 12/11/2025 2,000,000 2,000,000 0.9% 1,981,220 4.05% 7/11/2026 12/11/2028 FFCB Bond 3133ET3X3 12/12/2025 2,000,000 2,000,000 0.9% 1,985,480 4.26% 7/12/2026 12/12/2030 FHLMCMTN Bond 3134HCCW7 12/15/2025 2,000,000 2,000,000 0.9% 1,974,160 4.25% 7/2/2026 12/2/2030 FHLMCMTN Bond 3134HCFX2 12/23/2025 2,000,000 2,000,000 0.9% 1,975,120 4.18% 12/23/2026 12/30/2030 FFCB Bond 3133ET6F9 1/8/2026 2,000,000 2,000,000 0.9% 1,977,880 4.06% 7/8/2026 7/8/2030 FNMA Bond 3136GCD93 1/8/2026 2,000,000 2,000,000 0.9% 1,968,320 4.06% 1/8/2027 1/8/2031 FHLB Bond 3130B9A83 1/28/2026 2,000,000 2,000,000 0.9% 1,969,840 4.00% 1/28/2028 1/28/2031 FHLMCMTN Bond 3134HCRN1 1/28/2026 2,000,000 2,000,000 0.9% 1,976,500 4.15% 1/28/2027 1/28/2031 FHLB Bond 3130B9EP1 2/6/2026 2,000,000 2,000,000 0.9% 1,979,040 4.00% 8/6/2026 8/6/2029 FNMA Bond 3136GCP66 2/26/2026 2,000,000 2,000,000 0.9% 1,979,000 3.88% 8/26/2026 2/26/2029 FNMA Bond 3136GCPB5 2/27/2026 2,000,000 2,000,000 0.9% 1,978,380 4.00% 8/27/2026 2/27/2030 FHLMCMTN Bond 3134HCXT1 3/9/2026 2,000,000 2,000,000 0.9% 1,986,740 4.00% 9/9/2026 3/9/2029 FHLB Bond 3130B9RG7 3/9/2026 2,000,000 2,000,000 0.9% 1,981,240 4.00% 9/9/2026 3/9/2029 FNMA Bond 3136GCSX4 3/10/2026 1,500,000 1,500,000 0.7% 1,483,035 4.00% 9/10/2027 3/10/2031 FHLB Bond 3130B9SX9 3/11/2026 1,500,000 1,500,000 0.7% 1,488,240 4.13% 3/11/2027 3/11/2031 FHLMCMTN Bond 3134HCZA0 3/12/2026 2,000,000 2,000,000 0.9% 1,994,820 4.15% 7/12/2026 3/12/2029 FHLMCMTN Bond 3134HCZB8 3/16/2026 2,000,000 2,000,000 0.9% 1,993,300 4.00% 7/16/2026 3/16/2028 FHLMCMTN Bond 31428JEC7 3/23/2026 2,000,000 2,000,000 0.9% 1,979,240 4.00% 3/23/2027 3/23/2029 FHLB Bond 3130B9XA3 3/24/2026 2,000,000 2,000,000 0.9% 1,993,780 4.00% 9/24/2026 3/24/2028 FHLMCMTN Bond 3134HCZT9 3/24/2026 2,000,000 2,000,000 0.9% 1,982,760 4.25% 3/24/2027 3/24/2031 FHLMCMTN Bond 3134HCC64 3/26/2026 2,000,000 2,000,000 0.9% 1,989,820 4.20% 3/26/2027 3/26/2029 FFCB Bond 3133EWJQ4 3/27/2026 2,000,000 2,000,000 0.9% 2,001,700 4.39% 3/27/2028 3/27/2029 FFCB Bond 3133EWLL2 4/16/2026 2,000,000 2,000,000 0.9% 1,985,920 4.09% 4/16/2027 4/16/2029 FHLB Bond 3130BACG0 4/23/2026 2,000,000 2,000,000 0.9% 1,979,380 4.25% 4/23/2027 4/23/2031 FHLMCMTN Bond 3134HCP29 4/27/2026 2,000,000 2,000,000 0.9% 1,989,480 4.05% 4/27/2027 4/27/2029 FNMA Bond 3136GD4B6 4/28/2026 2,000,000 2,000,000 0.9% 1,988,600 4.00% 10/28/2026 4/28/2028 FHLB Bond 3130BAHC4 4/30/2026 2,000,000 2,000,000 0.9% 1,986,920 4.13% 10/30/2026 4/30/2029 FAMCMTN Bond 31428JGW1 5/4/2026 2,000,000 2,000,000 0.9% 1,981,640 4.07% 5/4/2027 5/4/2029 FHLB Bond 3130BAK22 5/8/2026 2,000,000 2,000,000 0.9% 1,979,780 4.22% 5/8/2028 5/8/2031 FHLB Bond 3130BAMR5 5/12/2026 2,000,000 2,000,000 0.9% 1,991,300 4.05% 5/12/2027 5/12/2028 FHLB Bond 3130BAQU4 5/20/2026 2,000,000 2,000,000 0.9% 1,994,200 4.13% 5/20/2027 11/20/2028 FFCB Bond 3133EWRD4 6/1/2026 2,000,000 2,000,000 0.9% 1,993,620 4.42% 6/1/2027 6/1/2029 FAMC Bond 31428JKC0 6/5/2026 2,000,000 2,000,000 0.9% 1,993,760 4.36% 6/5/2029 6/5/2031 CD - Morgan Stanley Bank 61690DGT9 11/8/2023 250,000 0.1% 250,000 5.05% 11/8/2028 11/8/2028 254,310 CD - Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000 0.1% 250,000 5.05% 11/8/2028 11/8/2028 254,310 CD - American Express 02589AF98 11/8/2023 250,000 0.1% 250,000 5.00% 11/8/2028 11/8/2028 254,035 CD - State Bank India 8562834U7 11/24/2023 250,000 0.1% 250,000 5.00% 11/24/2028 11/24/2028 254,100 CD - JPMorgan Chase 46659CLN8 9/30/2025 250,000 0.1% 250,000 4.13% 9/30/2030 9/30/2030 246,183 CD - Sallie Mae 795451EE9 12/10/2025 250,000 0.1% 250,000 3.90% 12/10/2030 12/10/2030 245,405 CD - Toyotal Financial 89235MTV3 4/16/2026 250,000 0.1% 250,000 4.10% 4/16/2031 4/16/2031 247,220 Sub Total/Average $ 181,792,121 $ 181,913,375 84.7% 180,488,608 $ 3.56% Total City Managed/Average $ 201,077,063 $ 201,198,316 93.7% 199,761,564 $ 3.58% Bond Reserve Accounts - Held By Trustees $ 6,395,420 $ 6,395,420 3.0% $ 6,395,420 Cash/Deposits $ (669,002) $ (669,002) -0.3% $ (669,002) PARS and CALPERS CERBT Trust $ 7,887,404 $ 7,887,404 3.7% $ 11,507,714 GRAND TOTAL/AVERAGE $ 214,690,885 $ 214,812,138 100.0% 216,995,695 $
Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 3.82% 10,629,749 $ 4.9% 10,617,763 $ California CLASS All Funds Pooled 3.70% 5,573,877 2.6% 5,573,877 US Bank - Portfolio of Securities All Funds Pooled 3.56% 181,913,375 84.7% 180,488,608 WFB MMA All Funds Pooled 3.53% 3,081,315 1.4% 3,081,315 SUBTOTAL $ 201,198,316 93.7% 199,761,564 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 3.28% 58 0.0% 58
Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 3.28% 74 0.0% 74
BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 3.25% 6,395,288 3.0% 6,395,288 SUBTOTAL 6,395,420 3.0% 6,395,420
Other Cash/Deposits
General Checking All Funds (714,852) -0.3% (714,852)
Workers' Comp Administrators Workers' Comp 30,000 0.0% 30,000 Petty Cash & Emergency Cash General Fund 15,850 0.0% 15,850 CALPERS CERBT - OPEB Trust 5,237,404 2.4% 7,703,990
PARS - PENSION Trust 2,650,000 1.2% 3,803,724
SUBTOTAL 7,218,402 3.4% 10,838,711
Total Cash and Investments $ 214,812,138 100.0% $ 216,995,695
CASH ACTIVITY SUMMARY
FY 2025-26
Preliminary
07/01/2025 Change in 6/30/2026
Fund Type Balance Cash Balance Balance
General Fund $ 27,754,684 $ 2,543,213 $ 30,297,897
Development Services 1,256,663 1,825,511 3,082,174
Water - Operations 1,682,675 (327,028) 1,355,647
Water Other 33,378,396 839,902 34,218,298
Sewer - Operations 581,685 4,437,584 5,019,269
Sewer Other 51,823,477 1,415,522 53,238,999
Other Special Revenue 18,941,285 (421,350) 18,519,935
Streets and Capital Projects 40,813,196 (8,441,800) 32,371,396 Debt Service 354,990 8,009 362,999
Internal Service 29,447,571 301,386 29,748,957
Agency Funds (assessment dists./refundable deposits) 6,701,471 (104,902) 6,596,569 Total $ 212,736,093 $ 2,076,045 $ 214,812,138
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.
I certify that information on the investment report has been reconciled to the general ledger and bank statements and that there are sufficient funds to meet the expenditure requirements of the City for the next six months. The portfolio is in compliance with the City of Morgan Hill Investment Policy and all State laws and regulations.
Prepared by: ____________________________________ Approved by:
Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Cindy Murphy, Treasurer
CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF JUNE 30, 2026
FOR THE FISCAL YEAR OF 2025-26
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 17,345,642 17,945,642 $ 17,676,648 99% $ 15,781,142 $ 1,895,506 12% Property Tax - RPTTF Residual Distribution 3,098,634 3,098,634 3,098,546 100% 2,937,174 161,372 5% Property Tax - Supplemental Roll 325,515 325,515 312,063 96% 336,651 (24,588) -7% Sales Tax 12,711,087 11,511,087 12,581,102 109% 11,620,823 960,279 8% Public Safety Sales Tax 478,182 478,182 465,687 97% 451,785 13,902 3% Transient Occupancy Taxes 2,958,340 2,658,340 2,676,373 101% 2,471,202 205,171 8% Franchise (Refuse ,Cable ,PG&E) 3,354,166 3,354,166 3,307,108 99% 3,236,560 70,549 2% Property Transfer Tax 642,000 642,000 569,941 89% 521,760 48,182 9% TOTAL TAXES 40,913,566 40,013,566 40,687,469 102% 37,357,097 3,330,372 9%
LICENSES/PERMITS
Business License 200,000 200,000 222,345 111% 216,241 6,105 3% Other Permits 82,750 82,750 247,120 299% 215,052 32,068 15% TOTAL LICENSES/PERMITS 282,750 282,750 469,466 166% 431,293 38,173 9%
FINES AND PENALTIES
Parking Enforcement 9,800 9,800 6,798 69% 7,738 (940) -12% Bails & Fines 55,000 55,000 58,981 107% 54,904 4,076 7% Administrative Citations 20,000 20,000 21,593 108% 22,232 (639) -3% TOTAL FINES AND PENALTIES 84,800 84,800 87,371 103% 84,873 2,498 3%
OTHER AGENCIES
Motor Vehicle in-Lieu 63,654 63,654 70,915 111% 73,134 (2,219) -3% Other Revenue - Other Agencies 954,307 434,545 700,665 73% 1,829,879 (1,129,214) -62% TOTAL OTHER AGENCIES 498,199 1,017,961 771,580 76% 1,903,013 (1,131,433) -59%
CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 28,694 86% 29,963 (1,270) -4% Business License Application Review 84,872 84,872 60,838 72% 60,813 0% 25 Membership Services & Rec Programs 6,830,960 6,830,960 6,765,010 99% 6,291,090 473,920 8% Facility Rentals 1,245,612 1,245,612 1,544,771 124% 1,363,644 181,127 13% Community Services 138,498 178,498 286,134 160% 173,493 112,641 65% General Administration Overhead 1,727,037 1,727,037 1,716,637 99% 1,697,910 18,726 1% Other Charges Current Services 734,377 734,377 794,288 108% 1,165,819 (371,531) -32% TOTAL CURRENT SERVICES 10,794,856 10,834,856 11,196,371 103% 10,782,732 413,638 4%
OTHER REVENUE
Use of money/property 1,283,417 1,583,417 1,490,262 94% 1,504,268 (14,006) -1% Other Revenues 811,790 548,648 1,013,307 125% 1,865,580 (852,273) -46% TOTAL OTHER REVENUE 1,832,065 2,395,207 2,503,569 105% 3,369,848 (866,279) -26%
TRANSFERS IN
One Time Transfer 165,000 665,000 665,000 100% 165,000 500,000 303% Public Safety Facilities Fund 50,000 50,000 50,000 100% 50,000 0% - Supplemental Law Enforcement Fund 100,000 100,000 100,000 100% 100,000 n/a - Countywide Solid Waste 563,961 544,328 563,961 104% 576,328 (12,367) -2% Streets 851,932 851,932 851,932 100% 774,855 77,077 10% Park Maintenance 650,000 650,000 650,000 100% 650,000 n/a - Sewer Operations 434,390 434,390 471,390 109% 413,700 57,690 14% Water Operations 434,390 434,390 471,390 109% 413,700 57,690 14% Open Space 81,100 81,100 81,100 100% 81,100 n/a -
Park Development 100,000 100,000 100,000 100% 100,000 n/a - TOTAL TRANSFERS IN 3,430,773 3,911,140 4,004,773 102% 3,324,683 680,090 20% TOTAL GENERAL FUND 57,837,009 58,540,280 59,720,599 102% 57,253,539 2,467,060 4%
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 851,932 851,932 842,546 99% 853,981 (11,436) -1% Interest / Other Revenue/Other Charges 1,665 1,665 7,560 454% 6,522 1,037 16% 202 STREET MAINTENANCE 853,597 853,597 850,105 100% 860,503 (10,398) -1%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 11,065 11,065 18,180 164% 14,927 3,254 22% Police Grant/SLEF/JAG 100,000 100,000 201,537 202% 194,664 6,873 4% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 111,065 111,065 219,717 198% 209,590 10,127 5% 206 DEVELOPMENT SERVICES
Building Fees 3,655,850 3,768,850 4,981,516 132% 4,209,616 771,900 18% Planning Fees 954,276 1,059,276 1,985,904 187% 1,076,686 909,218 84% Engineering Fees 723,341 723,341 1,203,090 166% 809,467 393,622 49% Other Revenue/Current Charges 544,851 326,851 194,828 60% 195,994 (1,166) -1% 206 DEVELOPMENT SERVICES 5,878,318 5,878,318 8,365,338 142% 6,291,764 2,073,574 33% 207 LONG RANGE PLANNING 827,760 827,760 1,461,148 177% 1,423,442 37,706 3% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 994 994 2,190 220% 2,277 -4% (87) 215 and 216 HCD BLOCK GRANT 994 994 2,190 220% 2,277 -4% (87) 225 ASSET SEIZURE 1,631 1,631 3,300 202% 3,462 (162) -5% 229 LIGHTING AND LANDSCAPE 207,135 207,135 217,480 105% 210,226 7,254 3% 230 COMMUNITY FACILITIES DISTRICT 28,314 28,314 33,938 120% 33,014 924 3% 232 ENVIRONMENTAL PROGRAMS 525,286 525,286 539,945 103% 502,368 37,577 7% 234 MOBILE HOME PARK RENT STAB. 2,447 2,447 6,291 257% 6,252 1% 39 236 HOUSING MITIGATION 3,061,720 3,478,220 2,296,248 66% 3,138,192 (841,944) -27% 240 EMPLOYEE ASSISTANCE 481 481 7,265 1510% 1,933 5,332 276% 246 COUNTYWIDE SOLID WASTE 2,393,478 1,716,866 1,735,715 101% 2,042,965 (307,250) -15% 255 HOUSING SUCCESSOR AGENCY 418,260 418,260 376,287 90% 393,280 (16,994) -4% 260 PUBLIC ART 869 869 1,219 140% 743 64% 476
TOTAL SPECIAL REVENUE FUNDS 14,311,356 14,051,244 16,116,186 115% 15,120,012 996,174 7%
CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 2,324,852 2,324,852 676,804 29% 2,349,177 (1,672,374) -71% 302 PARK MAINTENANCE 1,008,792 1,008,792 42,653 4% 272,638 (229,985) -84% 303 LOCAL DRAINAGE 3,672,294 3,672,294 348,505 9% 1,082,325 (733,820) -68% 304 LOCAL DRAINAGE/NON AB1600 28,357 187,838 39,748 21% 364,147 (324,399) -89% 306 AGRICULTURE & OPEN SPACE PRESERVATION 10,461 10,461 218,988 2093% 1,039,633 (820,645) -79% 308 STREET CIP 7,777,340 7,777,340 4,882,055 63% 4,717,880 164,175 3% 309 TRAFFIC IMPACT 3,584,714 3,584,714 975,363 27% 2,530,715 (1,555,352) -61% 315 PUBLIC SAFETY FACILITIES IMPACT 2,217,137 5,517,137 1,870,395 34% 898,210 972,185 108% 346 PUBLIC FACILITIES NON-AB1600 26,226 26,226 55,367 211% 266,869 (211,502) -79% 347 PUBLIC FACILITIES IMPACT 994,483 994,483 139,874 14% 402,984 (263,110) -65% 348 LIBRARY 2,180,740 2,180,740 538,911 25% 1,499,531 (960,620) -64% 350 UNDERGROUNDING 47,258 47,258 93,262 197% 131,006 (37,743) -29% 360 COMMUNITY/REC IMPACT FUND 3,802,095 3,802,095 1,197,189 31% 2,728,389 (1,531,200) -56% 375 QUIMBY FEE 4,268,487 4,268,487 510,090 12% 4,817,198 (4,307,108) -89% TOTAL CAPITAL PROJECTS FUNDS 31,943,236 35,402,717 11,589,204 33% 23,100,703 (11,511,499) -50%
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 302,376 302,376 301,764 100% 299,735 2,030 1% 441 POLICE FACILITY BOND 394,304 394,304 389,676 99% 385,093 4,583 1% TOTAL DEBT SERVICE FUNDS 696,680 696,680 691,440 99% 684,828 6,613 1%
City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %
BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 17,871,000 17,871,000 20,720,699 116% 17,771,447 2,949,252 17% Interest Income/Transfers 121,041 121,041 89,014 74% 71,239 17,775 25% Other Revenue/Current Charges 428,860 428,860 348,963 81% 477,929 (128,966) -27% 640 WASTEWATER OPERATION 18,420,901 18,420,901 21,158,676 115% 18,320,615 2,838,061 15% 641 WASTEWATER EXPANSION
Interest Income 164,788 164,788 705,155 428% 1,118,815 (413,660) -37% Development Impact Fee 30,415,728 30,415,728 2,850,496 9% 9,813,356 (6,962,860) -71% 641 WASTEWATER EXPANSION 30,580,516 30,580,516 3,555,652 12% 10,932,171 (7,376,519) -67% 642 WASTEWATER RATE STABILIZATION 93,037 93,037 102,914 111% 175,342 (72,429) -41% 643 WASTEWATER CAPITAL PROJECT 15,076,739 15,076,739 9,674,200 64% 9,089,959 584,241 6% TOTAL SEWER FUNDS 64,171,193 64,171,193 34,491,442 54% 38,518,087 (4,026,645) -10% 650 WATER OPERATION
Water Sales 21,385,800 21,385,800 20,523,296 96% 19,653,029 870,267 4% Meter Install & Service 110,000 110,000 39,355 36% 85,753 (46,397) -54% Transfers-In / Interest Income 911,184 911,184 829,016 91% 837,313 (8,298) -1% Other Revenue/Current Charges 1,044,838 1,044,838 960,366 92% 1,930,159 (969,792) -50% 650 WATER OPERATION 23,451,822 23,451,822 22,352,033 95% 22,506,253 (154,220) -1% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 40,273 40,273 169,945 422% 250,699 (80,754) -32% Development Impact Fee 4,833,886 4,833,886 999,205 21% 3,369,166 (2,369,961) -70% 651 WATER EXPANSION 4,874,159 4,874,159 1,169,150 24% 3,619,864 (2,450,715) -68% 652 WATER RATE STABILIZATION 99,247 99,247 110,080 111% 188,166 (78,086) -41% 653 WATER CAPITAL PROJECT 7,809,380 7,809,380 10,494,416 134% 8,134,155 2,360,261 29% TOTAL WATER FUNDS 36,234,608 36,234,608 34,125,679 94% 34,448,439 (322,759) -1% TOTAL ENTERPRISE FUNDS 100,405,801 100,405,801 68,617,121 68% 72,966,526 (4,349,405) -6%
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 3,038,971 3,038,971 3,039,827 100% 2,888,586 151,241 5% 740 BUILDING MAINTENANCE 1,270,189 1,270,189 1,281,821 101% 1,426,871 (145,050) -10% 741 BUILDING REPLACEMENT 1,049,288 2,299,288 1,090,682 47% 1,676,725 (586,043) -35% 745 CIP ADMINISTRATION 2,880,028 2,880,028 2,645,899 92% 2,494,855 151,044 6% 760 UNEMPLOYMENT INSURANCE 8,298 8,298 8,382 101% 9,150 (767) -8% 770 WORKERS COMPENSATION 1,211,610 1,211,610 992,573 82% 1,146,833 (154,260) -13% 790 EQUIPMENT REPLACEMENT 1,615,158 1,615,158 1,638,668 101% 2,314,619 (675,951) -29% 791EMPLOYEE BENEFITS 1,251,963 1,251,963 1,173,385 94% 1,134,373 39,012 3% 795 GENERAL LIABILITY INSURANCE 2,769,881 2,769,881 2,661,542 96% 2,534,987 126,556 5% TOTAL INTERNAL SERVICE FUNDS 15,095,386 16,345,386 14,532,780 89% 15,626,998 (1,094,218) -7% TOTAL FOR ALL FUNDS $ 220,289,468 $ 225,442,107 $ 171,267,331 76% 184,752,606 $ $ (13,485,275) -7%
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 35,566 $ 631,504 $ 671,610 $ - $ 671,610 $ 106% 510,428 $ .
CITY ATTORNEY 116,539 1,046,783 1,039,748 76,428 1,116,176 107% 1,017,368 CITY MANAGER 61,944 1,041,692 729,140 1,524 730,664 70% 688,439 HUMAN RESOURCES 98,245 1,032,289 1,064,103 - 1,064,103 103% 990,637
COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 62,358 627,757 611,630 - 611,630 97% 585,310 Elections 5,293 38,516 40,384 - 40,384 105% 287,422
COUNCIL SVCS & RECORDS MGMT 67,650 666,273 652,014 - 652,014 98% 872,732 FINANCE 216,199 2,563,249 2,129,162 402,902 2,532,063 99% 2,205,168 TOTAL ADMINISTRATION 596,144 6,981,791 6,285,777 480,854 6,766,631 97% 6,284,772 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 941,100 7,547,394 7,236,889 235,956 7,472,845 99% 6,944,672 Recreation Facility Rentals 146,807 1,451,514 1,265,902 10,645 1,276,547 88% 1,326,233 Innovative Transit - - - - - n/a 502,975
Community Services 158,064 923,254 879,625 54,381 934,006 101% 645,738 Park Maintenance 169,149 1,563,669 1,265,680 3,862 1,269,542 81% 1,295,254 Environmental Services 59,360 1,042,804 663,308 2,400 665,708 64% 626,209 Countywide Solid Waste Program 58,149 546,317 532,372 - 532,372 97% 509,745 Street Maintenance 360,774 3,598,941 3,467,897 13,509 3,481,406 97% 3,548,854 Downtown Maintenance 35,734 396,152 352,528 4,736 357,264 90% 294,370 PD Building Maintenance 71,356 727,124 555,919 47,690 603,609 83% 614,772 Cable Television 7,799 91,406 91,607 - 91,607 100% 91,234 COMMUNITY SERVICES 2,008,293 17,888,575 16,311,727 373,180 16,684,907 93% 16,400,055 CODE COMPLIANCE 43,025 420,943 429,919 - 429,919 102% 407,123 INFRASTRUCTURE PLANNING & CONGESTION MGMT 644,253 40,421 513,029 5,000 518,029 80% 421,627 ECONOMIC DEVELOPMENT PROGRAMS 128,725 1,344,548 1,033,310 166,386 1,199,696 89% 990,812 TOTAL COMMUNITY SERVICES 2,220,465 20,298,319 18,287,985 544,566 18,832,551 93% 18,219,617 III. PUBLIC SAFETY
POLICE
PD Administration 193,028 1,964,769 1,873,952 1,873,952 - 95% 1,576,824 Field Operations 1,474,188 14,224,118 13,405,950 327,315 13,733,265 97% 12,690,633 Support Services 257,093 2,766,134 2,778,844 2,778,844 - 100% 2,955,262 Emergency Services/Haz Mat 22,820 291,798 266,944 - 266,944 91% 263,650 Special Operations 505,295 4,405,650 4,304,786 4,304,786 - 98% 4,177,667 Dispatch Services 266,741 2,576,058 2,623,938 5,280 2,629,218 102% 2,375,425 POLICE 2,719,165 26,228,527 25,254,413 332,595 25,587,008 98% 24,039,461 FIRE 903,265 11,238,402 9,358,531 297,252 9,655,782 86% 8,145,236 TOTAL PUBLIC SAFETY 3,622,430 37,466,930 34,612,944 629,847 35,242,791 94% 32,184,697 IV. TRANSFERS
Other 104,923 1,418,558 1,259,077 1,259,077 - 89% 2,338,230 TOTAL TRANSFERS 104,923 1,418,558 1,259,077 1,259,077 - 89% 2,338,230 TOTAL GENERAL FUND 6,543,962 66,165,597 60,445,784 1,655,266 62,101,050 94% 59,027,317
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 463 857,492 857,492 - 857,492 100% 857,383 205 PUBLIC SAFETY/SUPP.LAW 115 101,380 101,380 - 101,380 100% 101,354 206 DEVELOPMENT SERVICES FUND
Planning 145,848 1,733,837 1,815,086 - 1,815,086 105% 1,674,239 Building 324,008 3,254,121 3,131,556 - 3,131,556 96% 2,822,576 Engineering 178,341 1,786,271 1,787,751 - 1,787,751 100% 1,626,776 206 DEVELOPMENT SERVICES FUND 648,198 6,774,229 6,734,393 - 6,734,393 99% 6,123,591 207 LONG RANGE PLANNING 109,958 2,872,275 1,189,746 232,043 1,421,789 50% 1,350,660 215/216 CDBG 8 90 90 - 90 100% 87
225 ASSET SEIZURE 70 840 840 - 840 100% 821
229 LIGHTING AND LANDSCAPE 49,018 218,856 195,520 2,474 197,994 90% 212,124 230 COMMUNITY FACILITIES DISTRICT 3,696 28,670 28,531 - 28,531 100% 26,003 232 ENVIRONMENTAL PROGRAMS 41,535 469,415 411,696 1,723 413,419 88% 415,020 234 MOBILE HOME PARK 81 970 970 - 970 100% 952
236 HOUSING MITIGATION 124,904 2,480,440 1,703,139 253,044 1,956,183 79% 1,139,067 240 EMPLOYEE ASSISTANCE 4,084 21,010 6,690 - 6,690 32% 9,893 246 COUNTYWIDE SOLID WASTE PROGRAM 229,161 1,808,470 1,543,684 181,949 1,725,633 95% 2,005,381 255 HOUSING SUCCESSOR AGENCY 110,918 1,375,331 1,319,542 1,319,542 - 96% 1,126,345 260 PUBLIC ART 536 6,430 6,430 - 100% 6,430 11,294
TOTAL SPECIAL REVENUE FUNDS 1,322,744 17,015,897 14,100,144 671,233 14,771,377 87% 13,379,974
CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 96,088 4,256,161 1,691,532 99,771 1,791,303 42% 1,023,800 302 PARK MAINTENANCE 1,361,784 1,905,711 651,395 - 651,395 34% 652,151 303 LOCAL DRAINAGE 444,116 7,363,833 1,618,618 2,734,632 4,353,250 59% 5,875,418 304 LOCAL DRAIN. NON-AB1600 27,584 530,148 197,091 62,780 259,871 49% 224,063 306 AGRICULTURE & OPEN SPACE PRESERVATIO 128,770 10,731 128,770 - 128,770 100% 128,157 308 STREET CIP 98,190 8,054,263 2,520,740 190,531 2,711,271 34% 4,396,534 309 TRAFFIC IMPACT 19,954 4,774,469 545,401 141,117 686,518 14% 3,481,115 315 PUBLIC SAFETY FACILITIES IMPACT 89,601 4,527,175 1,482,954 1,079,281 2,562,234 57% 6,276,318 346 PUBLIC FAC.NON AB1600 18,868 930,655 253,422 121,400 374,822 40% 518,127 347 PUBLIC FACILITIES IMPACT 79,703 1,855,069 1,234,765 67,745 1,302,509 70% 396,837 348 LIBRARY IMPACT 17,957 2,515,486 1,115,486 - 1,115,486 44% 213,615 350 UNDERGROUNDING 105 1,448,810 1,260 - 1,260 0% 128,456 360 COMM/REC CENTER IMPACT 964,590 5,564,824 1,406,930 134,710 1,541,639 28% 466,547 375 QUIMBY FEE 379,623 8,097,366 5,102,869 299,158 5,402,027 67% 2,002,459 TOTAL CAPITAL PROJECTS FUNDS 3,608,894 51,952,740 17,951,232 4,931,124 22,882,356 44% 25,783,596
DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 289 294,598 293,630 - 293,630 100% 290,070 441 POLICE FACILITY BOND DEBT 383 389,293 382,803 - 382,803 98% 386,700 TOTAL DEBT SERVICE FUNDS 673 683,891 676,433 - 676,433 99% 676,770
City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
CURRENT
FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR
EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD
ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 1,806,064 18,570,816 20,042,082 138,590 20,180,672 109% 18,086,688 641 WASTEWATER CAPITAL EXPANSION 682,911 54,898,903 2,500,665 834,948 3,335,612 6% 6,429,004 642 WASTEWATER RATE STABILIZATION 168 2,010 2,010 - 2,010 100% 1,966 643 WASTEWATER CAPITAL PROJECTS 1,662,784 34,316,583 5,972,617 3,412,144 9,384,760 27% 2,434,654 TOTAL SEWER FUND(S) 4,151,926 107,788,312 28,517,373 4,385,681 32,903,055 31% 26,952,312 WATER
Water Operations 2,510,587 21,663,763 20,019,126 216,576 20,235,703 93% 19,487,832 Utility Billing 147,586 1,544,437 1,498,258 5,731 1,503,989 97% 1,379,012 Water Conservation 36,507 494,608 379,499 26,936 406,435 82% 301,346 650 WATER OPERATIONS 2,694,680 23,702,807 21,896,883 249,244 22,146,127 93% 21,168,190 651 WATER CAPITAL EXPANSION 277,784 9,618,856 2,115,303 1,661,970 3,777,273 39% 1,648,144 652 WATER RATE STABILIZATION 125 1,500 1,500 - 100% 1,500 1,473 653 WATER-CAPITAL PROJECTS 2,239,077 28,523,123 8,643,036 4,164,785 12,807,821 45% 4,519,819 TOTAL WATER FUND(S) 5,211,666 61,846,287 32,656,721 6,075,999 38,732,720 63% 27,337,626 TOTAL ENTERPRISE FUNDS 9,363,593 169,634,598 61,174,095 10,461,680 71,635,775 42% 54,289,938
INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 405,436 3,183,799 3,016,658 175,052 3,191,710 100% 2,664,657 740 BUILDING MAINTENANCE 100,953 1,420,189 1,174,229 7,850 1,182,079 83% 1,166,279 741 BUILDING REPLACEMENT 160,760 4,842,221 2,388,671 234,927 2,623,598 54% 1,735,230 745 CIP ADMINISTRATION 248,462 2,744,438 2,647,762 2,647,762 - 96% 2,495,293 760 UNEMPLOYMENT 6,193 15,000 14,451 - 14,451 96% 6,205 770 WORKERS COMPENSATION 20,497 1,007,970 852,469 - 852,469 85% 1,180,009 790 EQUIPMENT REPLACEMENT 496,832 1,147,077 1,123,055 21,332 1,144,387 100% 862,131 791 EMPLOYEE BENEFITS FUND 44,111 1,000,000 717,511 - 717,511 72% 788,120 795 GEN. LIABILITY INSURANCE 40,222 2,648,547 2,648,408 2,648,408 - 100% 2,357,802 TOTAL INTERNAL SERVICE FUNDS 1,523,466 18,009,240 14,583,214 439,161 15,022,375 83% 13,255,725 REPORT TOTAL $ 22,363,331 $ 323,461,963 $ 168,930,901 $ 18,158,464 $ 187,089,365 58% 166,413,320 $
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-25 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 28,203,982 $ 59,720,599 $ 102% 60,445,784 $ 91% (725,184) $ 1,655,266 $ 25,823,532 $ TOTAL GENERAL FUND 28,203,982 $ 59,720,599 $ 102% 60,445,784 $ 91% (725,184) $ 1,655,266 $ 25,823,532 $ 202 STREET MAINTENANCE 152,931 850,105 $ 100% 857,492 $ 96% (7,387) $ - $ 145,544 $ 205 PUBLIC SAFETY/SUPPL. LAW 523,410 219,717 198% 101,380 100% 118,337 - 641,747 206 DEVELOPMENT SERVICES (987,534) 8,365,338 142% 6,734,393 99% 1,630,945 - 643,411 207 LONG RANGE PLANNING 1,367,092 1,461,148 177% 1,189,746 41% 271,402 232,043 1,406,451 215 / 216 CDBG 34,690 2,190 220% 90 100% 2,100 - 36,790 225 ASSET SEIZURE 107,136 202% 3,300 100% 840 2,460 - 109,596 229 LIGHTING AND LANDSCAPE 204,684 217,480 105% 195,520 89% 21,960 2,474 224,170 230 COMMUNITY FACILITIES DISTRICT 169,007 33,938 120% 28,531 100% 5,406 - 174,413 232 ENVIRONMENTAL PROGRAMS 576,223 539,945 103% 411,696 88% 128,249 1,723 702,749 234 MOBILE HOME PK RENT STAB. 87,242 257% 6,291 100% 970 5,321 - 92,563 235 SENIOR HOUSING 253,103 n/a - n/a - - - 253,103
236 HOUSING MITIGATION 10,243,057 2,296,248 66% 1,703,139 69% 593,109 253,044 10,583,122 240 EMPLOYEE ASSISTANCE 63,420 1510% 7,265 6,690 32% 575 - 63,995 246 COUNTYWIDE SOLID WASTE 324,737 1,735,715 101% 1,543,684 85% 192,030 181,949 334,819 255 HOUSING SUCCESSOR AGENCY 3,856,660 376,287 90% 1,319,542 96% (943,255) 2,913,405 - 260 PUBLIC ART 37,920 140% 1,219 100% 6,430 (5,211) - 32,709 TOTAL SPECIAL REVENUE FUNDS $ 17,013,778 $ 16,116,186 115% 14,100,144 $ 83% 2,016,041 $ $ 671,233 $ 18,358,587 301 PARK DEV. IMPACT FUND $ 3,333,114 $ 676,804 29% 1,691,532 $ 40% (1,014,728) $ $ 99,771 $ 2,218,615 302 PARK MAINTENANCE 1,896,529 42,653 4% 651,395 34% (608,742) 1,287,787 - 303 LOCAL DRAINAGE 10,517,077 348,505 9% 1,618,618 22% (1,270,113) 2,734,632 6,512,331 304 LOCAL DRAINAGE/NON-AB1600 1,342,166 39,748 21% 197,091 37% (157,343) 62,780 1,122,043 306 AG. AND OPEN SPACE PRESERVATION 2,344,054 218,988 2093% 128,770 100% 90,218 - 2,434,272 308 STREET CIP 4,608,966 4,882,055 63% 2,520,740 31% 2,361,315 190,531 6,779,750 309 TRAFFIC IMPACT FUND 2,855,919 975,363 27% 545,401 11% 429,962 141,117 3,144,764 315 PUBLIC SAFETY FACILITIES IMPACT (6,894,240) 1,870,395 34% 1,482,954 33% 387,441 1,079,281 (7,586,079) 346 PUBLIC FACILITIES NON-AB1600 1,921,852 55,367 211% 253,422 27% (198,055) 121,400 1,602,397 347 PUBLIC FACILITIES IMPACT FUND 1,250,914 139,874 14% 1,234,765 67% (1,094,891) 67,745 88,278 348 LIBRARY IMPACT FUND 3,540,033 538,911 25% 1,115,486 44% (576,575) - 2,963,458 350 UNDERGROUNDING 1,768,756 93,262 197% 1,260 0% 92,002 - 1,860,758 360 COMM/REC CTR IMPACT FUND 4,522,800 1,197,189 31% 1,406,930 25% (209,740) 134,710 4,178,350 375 QUIMBY FEE 6,800,701 510,090 12% 5,102,869 63% (4,592,779) 299,158 1,908,765 TOTAL CAPITAL PROJECT FUNDS 39,808,641 $ 11,589,204 $ 33% 17,951,232 $ 35% (6,362,028) $ 4,931,124 $ 28,515,489 $ 420 CIVIC CENTER DEBT 192,703 $ 301,764 $ 100% 293,630 $ 100% 8,135 $ 58 $ 200,780 $ 441 POLICE FACILITY BOND DEBT 162,288 389,676 99% 382,803 98% 6,873 74 169,087 TOTAL DEBT SERVICE FUNDS 354,991 $ 691,440 $ 99% 676,433 $ 99% 15,008 $ 132 $ 369,867 $ 640 WASTEWATER OPERATIONS 3,158,106 $ 21,158,676 $ 115% 20,042,082 $ 108% 1,116,594 $ 138,590 4,136,110 641 WASTEWATER IMPACT FUND 22,082,658 3,555,652 12% 2,500,665 5% 1,054,987 834,948 22,302,698 642 WASTEWATER RATE STABILIZATION 3,295,308 102,914 111% 100% 100,904 2,010 3,396,212 - 643 WASTEWATER CAPITAL PROJECTS 23,945,613 9,674,200 64% 5,972,617 17% 3,701,583 3,412,144 24,235,053 650 WATER OPERATIONS 4,429,715 22,352,033 95% 21,896,883 92% 455,150 249,244 4,635,622 651 WATER IMPACT FUND 5,747,541 1,169,150 24% 2,115,303 22% (946,153) 1,661,970 3,139,418 652 WATER RATE STABILIZATION 3,524,499 110,080 111% 100% 108,580 1,500 3,633,079 - 653 WATER -CAPITAL PROJECT 22,586,031 10,494,416 134% 8,643,036 30% 1,851,380 4,164,785 20,272,626 TOTAL ENTERPRISE FUNDS $ 88,769,471 $ 68,617,121 68% 61,174,095 $ 36% 7,443,027 $ $ 10,461,680 $ 85,750,817 730 INFORMATION SERVICES $ 619,218 $ 3,039,827 100% 3,016,658 $ 95% $ 23,169 $ 175,052 $ 467,335 740 BUILDING MAINTENANCE 346,643 1,281,821 101% 1,174,229 83% 107,592 7,850 446,385 741 BUILDING REPLACEMENT 5,024,498 1,090,682 47% 2,388,671 49% (1,297,989) 234,927 3,491,582 745 CIP ENGINEERING 7,515 2,645,899 92% 2,647,762 96% (1,863) - 5,652 760 UNEMPLOYMENT 285,588 101% 8,382 14,451 96% (6,069) - 279,519 770 WORKERS COMPENSATION 2,338,745 992,573 82% 852,469 85% 140,104 30,000 2,448,849 790 EQUIPMENT REPLACEMENT 10,172,190 1,638,668 101% 1,123,055 98% 515,614 21,332 10,666,472 791 EMPLOYEE BENEFITS FUNDS 346,566 1,173,385 94% 717,511 72% 455,874 - 802,440 795 GEN. LIABILITY INSURANCE 1,149,474 2,661,542 96% 2,648,408 100% 13,134 1,162,608 - TOTAL INTERNAL SERVICE FUNDS $ 20,290,437 $ 14,532,780 89% 14,583,214 $ 81% (50,434) $ $ 469,161 $ 19,770,842 Revenues Expenses Preliminary Ending Fund Balance
City of Morgan Hill
Fund Activity Summary - Fiscal Year 2025-26
For the Month Ended June 30, 2026
100% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-25 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Preliminary Ending Fund Balance
SUMMARY BY FUND TYPE
GENERAL FUND GROUP 28,203,982 $ 59,720,599 $ 102% 60,445,784 $ 91% (725,184) $ 1,655,266 $ 25,823,532 $ SPECIAL REVENUE GROUP 17,013,778 16,116,186 115% 14,100,144 83% 2,016,041 671,233 18,358,587 DEBT SERVICE GROUP 354,991 691,440 99% 676,433 99% 15,008 132 369,867 CAPITAL PROJECTS GROUP 39,808,641 11,589,204 33% 17,951,232 35% (6,362,028) 4,931,124 28,515,489 ENTERPRISE GROUP 88,769,471 68,617,121 68% 61,174,095 36% 7,443,027 10,461,680 85,750,817 INTERNAL SERVICE GROUP 20,290,437 14,532,780 89% 14,583,214 81% (50,434) 469,161 19,770,842 TOTAL ALL GROUPS 194,441,300 $ 171,267,331 $ 76% 168,930,901 $ 52% 2,336,430 $ 18,188,596 $ 178,589,134 $ 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.
City Manager's Signature Authority
Contracts and Agreements Between $25,000 to $75,000 Entered From 4/22/2026 to 7/31/2026 Vendor Name Description of Service Begin Date End Date Department Amount AllCode Academy, LLC DBA
AllCode Academy
Provide youth coding classes and
or/camps 5/13/2026 6/30/2028 PS $40,000
Greenesport Association Sports Officiating 5/13/2026 6/30/2027 PS $59,000 Andrew Merovich DBA Brick
Tech
Provide youth LEGO classes and/or
camps 5/13/2026 6/30/2028 PS $60,000
Wanda S. Marshall
Provide youth and adult tap dance
classes 5/13/2026 6/30/2028 PS $40,000
Nanogan Science &
Services, LLC dba Mad
Science of the Bay Area
Provide Youth science classes and/or
camps 5/13/2026 6/30/2028 PS $50,000
Island Kids LLC.
Provide Youth science classes and/or
camps 5/13/2026 6/30/2028 PS $60,000
North American Youth
Activities LLC, DBA Kidz
Love Soccer
Provide youth soccer classes and/or
camps 5/13/2026 6/0/2028 PS $50,000
Gaylord Dance Instruction
Provide youth dance classes and/or
camps 5/14/2026 6/30/2028 PS $30,000
South Bay Youth Sports
DBA Skyhawks Sports
Academy
Provide youth sports classes and/or
camps 5/14/2026 6/30/2027 PS $60,000
Joint Venture Silicon Valley
Reusables in Santa Clara County
Schools Demonstration Program 5/18/2026 6/30/2027 PS $47,300 Burke, Williams & Sorensen,
LLP
Specialized legal advice, special
counsel and litigation services as
needed 5/26/2026 6/30/2027 CAO $75,000
American Self Defense
Academy
Provide youth and adult self defense,
karate and kempo classes 6/3/2026 6/30/2028 PS $60,000
JMM Dance Co.
Provide youth dance classes and/or
camps 6/3/2026 6/30/2028 PS $60,000
Al Ganir Tennis
Provide youth and adult tennis classes
and/or camps 6/3/2026 6/30/2028 PS $30,000
Waltz Creative
Design and updating of marketing and
advertising brochures and campaigns 6/8/2026 6/1/2027 DS $25,000 South County Community
Services
Case management services for MH
Safe "Focus" program 6/11/2026 6/30/2027 DS $68,000
Cotton, Shires and
Associates Inc
Provide Geologic and geotechnical
peer review 6/19/2026 6/30/2028 DS $60,000
ACT Private Security and
Investigations
Provide on-call security services
6/19/2026 6/30/2027 DS $50,000
Epico Systems, Inc. Installation of Exterior Cameras at PD 6/23/2026 11/30/2026 PD $30,040 Geographic Technologies
Group GIS services 6/23/2026 6/30/2028 PS $52,400
Access Systems, Inc
Surveillance Camera & Audio
Installation- PD 6/25/2026 6/25/2027 PD $71,797
Epico Systems, Inc. CCC & CRC Wireless Refresh Project 6/30/2026 12/31/2026 PS $29,847 Boys and Girls Club of
Silicon Valley
Afterschool and summer programs at
Park Place 6/30/2026 6/30/2027 PS $47,741
AlterTech Solutions, LLC.
Technical Support for Cityworks Work
Order Software 7/21/2026 6/30/2029 PS $75,000
Jones Hall, LLP
Bond Counsel Services- WIFIA
Financing 7/24/2026 6/30/2028 ADM $50,000
Keyser Marston Associates,
Inc
Independent analysis associated with
Housing related programs 7/30/2026 6/30/2027 DS $50,000 Silicon Valley Fire, Inc.
Fire Extinguishers and Kitchen Hoods
Inspection, Testing and Maintenance
Services 9/1/2026 8/31/2028 PS $28,000
Budget Update
Item #17
August 19, 2026
General Fund – Budget Update
• Preliminary FY25-26 revenues are approximately $0.5
million higher than forecast during biennial budget
development.
• Expenditures, including encumbrances, are approximately $0.6 million lower than forecast, primarily due to
conservative spending and savings from the CalFire
contract.
• Overall Improvement From Last Forecast: +$1.1 million 2
Development Services Fund
• Revenues came in at $8.4 million vs. $7.7 million forecast • Expenditures came in at $6.7 million vs. $7.0 million forecast • Strong performance allowed for an early $0.5 million General Fund loan repayment
3
Enterprise Funds
• Water revenues: $22.4 million vs. $23.5 million budget (-$1.1 million) • Wastewater revenues: $21.2 million vs. $18.4 million budget (+$2.8 million)
• Water operating fund transfer to capital: $4.5 million, consistent with budget
• Wastewater operating fund transfer to capital: $7.6 million vs. $4.6 million budget (+$3.0 million)
4
General Fund Forecast
5 40%
33%
26%
20%
16%
13% 11%
41%
33%
27%
21%
17% 13%
12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Preliminary Adopted Adopted Forecast Forecast Forecast Forecast 25-26 26-27 27-28 28-29 29-30 30-31 31-32
General Fund Reserves Forecast
Fund Balance Minimum Level 15% of Revenues Fund Balance Goal 25% of Revenues GF Forecast at Budget Adoption (June 3, 2026) Updated GF Forecast $24.2 Million
$8.6 Million
Questions?
6
18 CITY COUNCIL STAFF REPORT
MEETING DATE: August 19, 2026
PREPARED BY:
Christina Turner, City Manager
APPROVED BY: City Manager
PROVIDE DIRECTION TO STAFF ON PROPOSED FUTURE COUNCIL
INITIATED AGENDA ITEMS
RECOMMENDATION(S)
Determine if the majority of the City Council wants the following items agendized at a future meeting for discussion:
1. Review and update regulatory framework for utility-scale and specialized highimpact land uses; and
2. Funding for the Morgan Hill Gateway Vintage Sign Project.
COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety and Quality of Life
Supporting our Youth, Seniors, and Entire Community
Preserving and Cultivating Public Trust
Preserving our Community History
REPORT NARRATIVE:
Section 4.2 of City Council Policy 97-01 (Attachment 1) allows members of the City Council to request that items be placed on a future City Council agenda during the “Future Council Initiated Agenda Items” portion of a Council meeting. Following such a request, a staff report is prepared and scheduled for a future City Council meeting for discussion and consideration.
Below is a brief description of each requested agenda item for City Council consideration:
1. Review and update regulatory framework and performance standards for nonresidential, utility-scale, and specialized high-impact land uses, requested by Council Member Martinez Beltran (Attachment 2). Estimated staff time to prepare the staff report: 16 hours.
2. Discuss funding approach for the Morgan Hill Gateway Vintage Sign Project, requested by Mayor Turner (Attachment 3). Estimated staff time to prepare the staff report: 4 hours.
18 Staff is seeking City Council direction on whether to place these topics on future City Council meeting agendas.
COMMUNITY ENGAGEMENT:
This report seeks direction from the City Council on whether or not to further agendize these topics for Council consideration.
ALTERNATIVE ACTIONS:
Not Applicable.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
On June 3, 2026, Council Member Martinez Beltran requested the review and update of regulatory frameworks and performance standards, and on June 17, 2026, Mayor Turner requested the funding approach of the Morgan Hill Gateway Vintage Sign Project, be brought back for City Council consideration.
FISCAL AND RESOURCE IMPACT:
There is no fiscal impact associated with seeking direction from the Council on these items.
CEQA (California Environmental Quality Act):
Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
CITY OF MORGAN HILL
CITY COUNCIL POLICIES AND PROCEDURES
CP-97-01
SUBJECT: RULES FOR THE CONDUCT OF CITY COUNCIL
MEETINGS, PLACEMENT OF ITEMS ON THE AGENDA,
AND MATTERS TO BE RECONSIDERED
EFFECTIVE DATE: May 7, 1997
REVISED DATE: March 15, 2023, August 23, 2023, June 19, 2024 ORIGINATING DEPARTMENT: CITY MANAGER
SECTION 1 - SCOPE
1.1 These rules shall establish the procedures for the conduct of all meetings of the City Council of the City of Morgan Hill. The purpose of these rules is to provide procedures consistent with the Ralph M. Brown Act, establish procedures which will be convenient for the public, be fair to all members of the City Council, and contribute to the orderly conduct of City business.
SECTION 2 - MEETINGS
2.1 Open to Public: All meetings of the City Council, whether regular or special, shall be open to the public, unless a closed session is scheduled as authorized by law.
2.2 Regular Meetings: The City Council shall conduct its regular meetings at the time and place established by ordinance, if specified in the ordinance or resolution.
2.3 Review Status of Agenda at 9:00 p.m.: The City Council may review the agenda at 9:00 p.m. to determine if it will be able to conclude its business by 10:00 p.m. If, at 10:00 p.m., the City Council has not concluded its business, before continuing the meeting it shall review and discuss the status of the remaining agenda items and determine by majority vote whether to continue any remaining items to a future regular or special meeting, adjourn the meeting to another date and time, or extend the meeting beyond 10:00 p.m. as needed. The meeting may be extended beyond 10:00 p.m. one time. Additional extensions of time will be
2.4 Special Meetings/Workshops: A special meeting and/or workshop may be called at any time by the Mayor or Presiding Officer of the City Council or by three members of the City Council. Written notice of any such meeting must specify the purpose of the meeting.
Notice of the meeting must be made in accordance with the law.
2.5 Closed Sessions: The City Council may hold closed sessions during a regular or special meeting, or at any time authorized by law, to consider or hear any matter which is authorized by law. At times, Closed Sessions may have to be held in an order different than presented due to the timeliness of the matter, to save the City money when an outside attorney has been retained or due to the need for extra time to discuss and deliberate an Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
important closed session item. Closed session items may be continued to the conclusion of the agenda.
2.6 Quorum: Three (3) members of the City Council shall constitute a quorum and shall be sufficient to transact business. If less than three Council members appear at a regular meeting, the Mayor, Mayor Pro Tempore in the absence of the Mayor, any member of the City Council, or in the absence of all Council members, the City Clerk or Deputy City Clerk shall adjourn the meeting to a stated day and hour.
2.7 Adjourned Meetings: The City Council may adjourn any regular, adjourned regular, special, or adjourned special meeting to a time and place specified in the order of adjournment and permitted by law.
SECTION 3 - POSTING NOTICE AND AGENDA
3.1 Posting of Notice and Agenda: For every regular or special meeting, the City Clerk or other authorized person, shall post a notice of the meeting specifying the time and place at which the meeting will be held and an agenda containing a brief description of all items of business to be discussed at the meeting. The notice and agenda may be combined in a single document.
a. Posting for Regular Meetings: For any regular meeting of the City Council, the notice and agenda shall be posted no later than seventy-two (72) hours prior to the time set for the meeting consistent with all Brown Act requirements. b. Posting for Special Meetings: For any special meetings of the City Council, the notice and agenda shall be posted no later than twenty-four (24) hours prior to the time set for the meeting consistent with all Brown Act requirements.
3.2 Location of Posting: The notice and agenda shall be posted in a place to which the public has unrestricted access during at least normal business hours and where the notice and agenda are not likely to be removed or obscured by other posted materials.
3.3 Availability of the Agenda to the Public: The agenda for any regular or special meeting shall be made available to the public as soon as is practical after delivery to the members of the City Council.
SECTION 4 - AGENDA CONTENTS
4.1 Description of Matters: All items of business to be discussed at a meeting of the City Council shall be briefly described on the agenda. The description of the item and the proposed action to be considered should be set forth as clearly as practical so that members of the public will know the nature of the action under review and consideration.
4.2 Placement of items on the agenda: The Mayor, City Manager, or City Attorney may place items on the agenda. Members of the City Council may request items to be added to an upcoming City Council agenda by requesting an item during the "Future Council Initiated Agenda Items" Section of the agenda. When a Future Council Initiated Agenda Item is requested, the Council Member making the request will send the City Manager a brief Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
summary outlining the request and any relevant background. If the requested item is not included in the current Strategic Priorities Workplan, the team will bring forward the item at a future Council Meeting within 30-45 days of the request via a brief staff report, including the brief summary provided by the requesting Council Member. At that meeting, the City Council will review the request and determine if the majority of the City Council wants the items agendized at a future meeting for discussion.
4.3 Council shall not act or take a position on: Matters outside of the Morgan Hill City Council's subject matter jurisdiction, including foreign or international events. Appropriate subject matter jurisdiction includes agenda items directly related to Morgan Hill business, as well as County/regional items having a direct impact on the City (i.e. countywide emergency services or transportation).
4.4 Limitation to Act on Only Items on the Agenda: No action shall be taken by the City Council on any item not on the posted agenda, subject only to the exceptions listed below:
a. Upon a majority determination that an "emergency situation" (as defined by State Law) exists; and
b. Upon a determination by a 4/5 vote of the City Council that there is a need to take immediate action and that the need to take the action came to the attention of City officials subsequent to posting of the agenda.
4.5 Change in Order of Business: The Mayor or Presiding Officer may decide to take matters listed on the agenda out of the prescribed order unless a majority of members present object to this variation.
4.6 City Council Reports: On an alternating basis, at each Regular City Council meeting, with a time limit of three minutes, a Council Member has the opportunity to share with the Council and community any pertinent updates or information in regard to their appointments to outside agencies, upcoming events, or relevant City business. These are non-action items.
4.7 City Manager Report: These are updates on current City activities, reports on issues raised at previous Council meetings, or recognitions. These are non-action items.
4.8 City Attorney Report: These are updates on current City activities, reports on issues raised at previous Council meetings, or reportable actions of the City Council in Closed Sessions and/or current litigation. These are non-action items.
4.9 Other Reports: These are pertinent updates or information on upcoming activities or events relevant to City business with a time limit of one minute. These are non-action items.
4.10 Public Comment for items not on the agenda: This refers to those matters not scheduled on the agenda where a member of the public wants to address a matter of importance to the City Council. Since the matter is not on the agenda, no action by Council can be taken. If a member of Council so desires, the matter can be placed on the agenda of a future Council meeting for review and consideration.
4.11 Consent Calendar: These are items of a routine or generally uncontested nature. Any member of the Council or member of the public may request to have an item pulled from the Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
consent calendar and acted on individually by the Council. Items pulled will be discussed after action is taken on the balance of the consent calendar. The Mayor shall decide if the items are heard before or after moving on to public hearing and other business items.
4.12 Public Hearings: These are matters that are duly noticed and published in a newspaper of general circulation and where required by law, written notice is given to the affected residents who have the opportunity to speak in favor or against a matter or ask questions about the matter.
4.13 Other Business: These are other matters of City business which are not appropriately placed on the consent calendar and do not require published notices and require Council action and direction.
4.14 Future Business: These are items that members of the City Council wish to discuss to potentially take action on or have placed on future agendas.
SECTION 5. ORDER OF BUSINESS
5.1 The order of business at meetings of the City Council shall be as follows:
a. CALL TO ORDER
b. ROLL CALL ATTENDANCE
c. DECLARATION OF POSTING AGENDA
d. WORKSHOP (if needed; 5:00-6:00 p.m., or as deemed appropriate) e. CLOSED SESSION (if needed; 5:00-6:00 p.m., or as deemed appropriate) f. SILENT INVOCATION
g. PLEDGE OF ALLEGIANCE
h. PRESENTATIONS
i. PROCLAMATIONS
j. RECOGNITIONS
k. CITY COUNCIL REPORTS
l. CITY MANAGER REPORT
m. CITY ATTORNEY REPORT
n. OTHER REPORTS
o. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
p. ADOPTION OF AGENDA
q. CONSENT CALENDAR
Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
r. PUBLIC HEARINGS
s. OTHER BUSINESS
t. FUTURE COUNCIL INITIATED AGENDA ITEMS
u. CLOSED SESSION
v. ADJOURNMENT
SECTION 6. PUBLIC COMMENT
6.1 Public Comment: Persons present at meetings of the City Council may comment on individual items on the agenda at the time the items are scheduled to be heard. In addition, comments may be offered on items not on the agenda under that portion of the agenda. In accordance with State law, matters not scheduled on the agenda cannot be acted upon by the City Council, but items raised by the public during public comment may be referred to a future City Council agenda at the request of the Mayor or City Council.
6.2 Limitations: The public comment period may be 3 minutes for items on the agenda or items not listed on the agenda. Speakers are called in the order the speaker cards are submitted.
Project applicants or appellants will be allowed more than the designated 3 minutes in accordance with City Council Policy 03-01. Consistent with this policy, the Mayor or Presiding Officer may recall an applicant or appellant to address questions after the public comment is heard. In addition, applicants will be given time at the end of the public hearing to address any questions or comments.
The Mayor or Presiding Officer may allow speakers who wish to speak under public comment for items not on the agenda to concede a portion of their time, specifically, one speaker may concede a portion of their time to one other speaker. For all other business items, the Mayor or Presiding Officer may allow speakers more time and/or allow speakers to concede a portion of their time to a designated speaker of a group, specifically up to two speakers may concede their time to one speaker, unless a majority of the City Council objects. Speakers that wish to designate a group speaker shall notify the City Clerk before discussion on the item begins. Additionally, any speaker that concedes their time must be present at that City Council meeting. Speaker who would like to share documents or presentations may do so by submitting said document to the City Clerk by noon on the day of the City Council Meeting. Speaker may not share videos or presentations with videos embedded within them.
6.3 Procedure: To address the City Council, each speaker is requested to fill out a Speaker Card and turn it in to the City Clerk before discussion on the agenda item begins. The speaker is requested to provide their name, contact information, and the subject(s) upon which the speaker wishes to address the City Council. Speakers who do not wish to provide their name should provide an alternative designation so that they can be called to speak by the City Clerk.
Public comment may be provided in writing for items on the agenda, as well as for items not on the agenda. Public comment in writing may be submitted via email to [email protected] or by mail to the City Clerk at 17575 Peak Avenue, Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
Morgan Hill, CA 95037. Please email your comments to the City Clerk no later than 3:00 p.m. on Tuesday (the day before the City Council meeting) for your comments to be submitted to the members of the City Council with sufficient time to review the comments.
You may continue to provide written comments up to noon on Wednesday (the day of the meeting although Council Members may not have sufficient time to review them. Public comments submitted to the City Clerk after noon the day of the meeting will be provided to the City Council as time allows.
Written comments WILL NOT be read aloud during the City Council Meeting. Please note information you do not want to be posted on the web.
SECTION 7. PROCEDURES FOR THE CONDUCT OF MEETINGS
7.1 Role of the Mayor/Presiding Officer:
a. The Presiding Officer of the City Council, who shall be the Mayor or in the Mayor's absence shall be the Mayor Pro Tempore, or in their absence any other designated member of the City Council, shall be responsible for maintaining the order and decorum of meetings. It shall be the duty and responsibility of the Presiding Officer to ensure that the rules of operation and decorum contained herein are observed. The Presiding Officer shall maintain control of communication between Council Members and between the Council, staff, and public.
b. Communication with Council Members:
1. Council Members should request the floor from the Presiding Officer before speaking.
2. When one member of the Council has the floor and is speaking, other Council Members shall not interrupt or otherwise disturb the speaker.
3. During both questions, when one Council Member has the floor, they are limited to 5 minutes. During discussion, the Mayor and Council Members as a whole are s discretion.
4. With the concurrence of the Mayor, a Council Member holding the floor may address a question to another Council Member. The Council Member being questioned may or may not respond while the floor is still held by the Council Member asking the question. The reply shall be limited to the question asked. c. The Mayor or Presiding Officer may declare that an item within the meeting will be section 7.1B do not strictly apply. This is to allow for a more open discussion without strict formalities. The Mayor or Presiding Officer may end the workshop format for the item at his/her discretion.
d. Communication with Members of the Public Addressing the Council Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
1. The Mayor or Presiding Officer shall open the floor for public testimony as appropriate.
2. After a witness or subject matter expert has addressed the City Council during public comment, Council members may only ask questions of witnesses or subject matter experts. Such questions should be directed to the person through the Presiding Officer unless the Presiding Officer grants the Council Member permission to directly question the person.
3. Staff members, through the City Manager, shall be a resource to the City Council to answer questions arising during discussions between Council Members and between Council Members and members of the public.
Communications in this regard shall be through the Presiding Officer.
4. Members of the public shall direct their questions and comments through the Presiding Officer.
7.2 Rules of Order: The City Council adopts no specific rules of order except those listed herein. The City Council shall refer to
https://www.cacities.org/UploadedFiles/LeagueInternet/77/77d4ee2b-c0bc-4ec2-881b42ccdbbe73c9.pdf) as a guide for the conduct of meetings. The guideline regarding not requiring seconds for governmental bodies' motions, resolutions or ordinances is not adopted as the rule in the City. The Mayor or Presiding Officer has the discretion to impose reasonable rules at any particular meeting based upon facts and circumstances found at any particular meeting. These latter rules will be followed unless objected to by a majority of the City Council members present.
7.3 Motions: The Mayor or any member of the City Council may bring a matter of business on the agenda before the Council by making a motion. Before the matter can be considered or debated it must be seconded. Once the motion has been properly made and seconded, the Presiding Officer shall open the matter for full debate offering the first opportunity to debate to the moving party and, thereafter, to any Council Member recognized by the Mayor or Presiding Officer. Debate shall be closed upon consent of a majority of the Council.
7.4 Reconsideration: Immediately after a vote on a matter, any member of the City Council may request to have his/her vote changed on a matter before the Council moves on to the next item. Such a request will be granted by the Mayor or Presiding Officer unless a majority of the Council objects.
A matter may be reconsidered by the City Council if a member on the prevailing side of the vote requests reconsideration. Such a motion may be made at a meeting where such action is taken or at a subsequent meeting of the Council, however, nothing in this policy precludes the majority of members of the City Council from requesting reconsideration of any item.
7.5 Debate:
a. The discussions and deliberations at meetings of the City Council are to secure the informed judgement of Council members on proposals submitted for decision. This Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
purpose is best served by the exchange of thought through discussion and debate.
Debate is regulated by these rules in order to assure every member a reasonable and equal opportunity to be heard.
b. Obtaining the Floor for Debate:
As soon as a debatable motion has been stated to the Council by the Mayor or Presiding Officer, any member of the Council has a right to discuss it after obtaining the floor. The member obtains the floor by seeking recognition from the Mayor or Presiding Officer. A member who has been recognized is entitled to be heard so long as he/she observes the rules of debate.
c. Speaking More Than Once:
To encourage the full participation of all members of the Council, no member or members shall be permitted to monopolize the discussion of the question. If a Council member has already spoken and other members wish to speak, the latter members should be recognized in preference to the member who has already spoken.
However, if no other members seek recognition, the Mayor or Presiding Officer may recognize the member who has already spoken.
d. Relevancy of Debate:
All discussion must be relevant to the motion before the City Council. A member is given the floor only for the purpose of discussing the pending question; discussion which departs is out of order. The Mayor or Presiding Officer should then direct the speaker to limit discussion to the question before the City Council.
A motion-its nature or consequences-may be attacked vigorously. But it is never permissible to attack the motives, character, or personality of a member either directly or by innuendo or implication. It is the duty of the Mayor or Presiding Officer instantly to stop any member who engages in personal attacks. It is the motion, not its proposer, that is the subject of debate. Meetings must discuss measures and ideas, not people.
Arguments, for or against a measure, should be stated as concisely as possible.
Debate must be fundamentally impersonal. All discussion is addressed to the Mayor or Presiding Officer and must never be directed to any individual. e. Duties During Debate:
The Mayor or Presiding Officer has the responsibility of controlling and expediting debate. A Council member who has been recognized to speak on a question has a right to the undivided attention of the Council.
It is the duty of the Mayor or Presiding Officer to keep the subject clearly before the members, to rule out irrelevant discussion, and to restate the question whenever necessary.
Attachment 1
City Council Policy 97-01
Rules for the Conduct of City Council Meetings
SECTION 8. DECORUM
8.1 Council Members: Members of the City Council value and recognize the importance of the trust invested to them by the public to accomplish the business of the City. Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the City Council.
8.2 City Employees: Members of City staff shall observe the same rules of order and decorum applicable to the City Council. City staff shall act at all times in a business and professional manner towards Council Members and members of the public.
8.3 Public: Members of the public attending City Council meetings shall observe the same rules of order and decorum applicable to the City Council.
8.4 Noise in the Chamber: Noise emanating from the audience within the Council Chamber or lobby area, which disrupts City Council meetings, shall not be permitted.
8.5 Sergeant-at-Arms: The Chief of Police, or his/her designated representative shall be exofficio Sergeant-at-Arms of the City Council.
SECTION 9. VIOLATIONS OF PROCEDURES
9.1 Nothing in these policies and procedures shall invalidate a properly noticed and acted upon action of the City Council in accordance with State Law.
This policy shall remain in effect until modified by the City Council.
APPROVED: _______________________________ MARK TURNER, MAYOR Attachment 1
Attachment 2
Subject: Future Agenda Item: Review and Update Regulatory Frameworks and Performance Standards for Nonresidential, Utility-Scale and Specialized High-Impact Land Uses
Proposal: To place an item on a future City Council agenda to discuss and consider the development of a comprehensive municipal ordinance establishing objective performance standards, infrastructure capacity protections, and zoning frameworks for nonresidential, utility-scale, and specialized high-impact land uses.
Summary: In response to recent regional market trends and local development inquiries regarding nonresidential, utility-scale infrastructures, such as data centers, battery energy storage systems, and other specialized high-impact land uses facilities, there is a need to evaluate and modernize the City’s current land use policies and zoning frameworks to address gaps.
While these emerging industries represent evolving technological sectors, their operational footprints introduce unprecedented demands on municipal infrastructure, resources, and capacities. Furthermore, if unmanaged, the distinct environmental and operational profiles of these heavy-utility uses can create direct resource conflicts with the City's primary economic sectors, including agribusiness, viticulture, and sports recreation.
Therefore, I am requesting Council consider a future agenda to discuss developing an ordinance to address existing regulatory gaps. This would include a framework focused on protecting public health, safety, welfare, and environmental quality by proactively managing the cumulative impacts of high-intensity, nonresidential operations on:
• Infrastructure Capacity & Resource Allocation: Establishing strict baseline thresholds to ensure that heavy-utility operations do not compromise the water supply, wastewater capacity, or grid stability required by residents and existing commercial sectors.
• Economic Sector & Corridor Preservation: Ensuring new developments are operationally compatible with the primary economic transit corridors, viewsheds, and undeveloped land buffers that anchor the city’s agribusiness, tourism, and recreational economies.
• Objective Environmental & Safety Standards: Developing quantifiable limits regarding noise mitigation, thermal outputs, safety buffers, and environmental protections to prevent degradation of local undeveloped land and agricultural buffers.
Attachment 2
By scheduling this item, the City Council can provide clear policy direction to staff to establish a forward-looking, legal framework that protects the city’s resources, preserves its economic baseline, and ensures long-term community resilience with new and unknown uses.
Attachment 3
Funding of the Morgan Hill Gateway Vintage Sign Project I would like to discuss the Morgan Hill Gateway Vintage Sign project and the funding approach for the project through the Public Art Fund, which is supported by in-lieu fees generated from commercial and residential developments.
From: Christina Turner
To: CityClerk
Subject: FW: [EXTERNAL] Other Business: 18. (1) Proposed Review and update regulatory framework for utility-scale and specialized high-impact land uses;
Date: Tuesday, August 18, 2026 2:34:29 PM
Please supplement.
From: Armando Be <[email protected]>
Sent: Tuesday, August 18, 2026 1:34 PM
To: Mark Turner <[email protected]>; Marilyn Librers <[email protected]>; Yvonne Martinez Beltran <[email protected]>; Miriam Vega <[email protected]>; Soraida Iwanaga <[email protected]>; Christina Turner <[email protected]>; CC Public Comment <[email protected]> Subject: [EXTERNAL] Other Business: 18. (1) Proposed Review and update regulatory framework for utility-scale and specialized high-impact land uses;
Dear Mayor and Councilmembers,
I do believe that Morgan Hill needs clear, objective rules applicable to data centers and other large, high-impact developments. The objective standards should be applicable for any non-residential, technology emergent developments that place unusually large demands on our infrastructure or create significant environmental or safety impacts.
Two issues arise when considering an ordinance. First, who would have the authority to approve it? Would it be the City Council? The Planning Commission? City staff?
Then second, what rules would they apply to approve a high scale, high impact development project? How much electricity could it require? How much water could it use? What limits would apply to backup generators, fuel storage, battery systems, noise, heat, fire safety and emergency response?
We have already seen what can happen in Gilroy. A large-scale data center was approved administratively by the Director of Economic Development and through the City's outdated regulatory process without involvement of the Planning Commission or the City Council.
But, the City also needs to think beyond the next data center. This is why I believe the Mayor’s phrase "specialized high-impact land uses" in the proposed agenda item is so important.
Consider what is happening in Morgan Hill with the Cochrane Technology Center.
Archer Aviation has leased the entire approximately 500,000-square-foot industrial complex. This advanced manufacturing and high-tech business can be exactly the kind of economic development Morgan Hill should want. But it raises an important regulatory question.
The City approved the industrial buildings before Archer became the tenant. What happens when a new tenant moves into an existing industrial building and its particular operation creates substantially greater demands for electricity, water, battery storage, hazardous materials, emergency response or other infrastructure than were considered when the building was approved?
Does the City's existing approval simply allow the new operation because it is generally classified as an industrial use? Or does the City have a process that allows it to look at the intensity and actual impacts of the new operation? That distinction matters. The City may have approved the building for industrial use, but that does not necessarily mean the City anticipated every type of industrial operation that could eventually occupy that building. The City should regulate the impact of the use, not simply the name of the business or the original use of the building.
Rather than trying to predict every new technology, the City can establish measurable thresholds. For example, a new development—or a new operation moving into an existing building—could receive additional review if it exceeds a certain level of electricity use, water consumption, wastewater generation, battery storage, backup generator capacity, fuel or hazardous-material storage, noise, heat or thermal output, traffic, demand on fire and emergency services, and building or campus size.These should be objective, measurable standards.
A 100-megawatt data center shouldn't be treated differently from an advanced manufacturing facility simply because one is called a data center and the other is not.If both place extraordinary demands on our electrical system, water supply or emergency services, the same basic protections should apply whether the development is a data center, large battery facilities, advanced manufacturing and other future uses that exceed defined infrastructure or environmental thresholds.
Sincerely,
Armando
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From: Chris Ghione
To: doug.muirhead
Cc: Christina Turner; CityClerk
Subject: RE: [EXTERNAL] comment Morgan Hill City Council August 19 #18: Future agenda item: Gateway Sign Date: Tuesday, August 18, 2026 3:26:10 PM
Hi Doug,
I’m responding to this one on behalf of the City staff. Thank you for the comments to the Council. Just to help clarify, this item will provide general direction to staff to bring back a more detailed report on the item. Final decision on the appropriation of funds and approval of public art would come back to the Council down the road. Additionally, public art would receive a recommendation by the Library, Culture and Arts Commission prior to returning to the Council.
These additional considerations would be brought back with other considerations should the Council provide direction to continue to move forward after the initial report provided at this meeting.
Thank you,
Chris
Chris Ghione
Assistant City Manager/Public Services Director
City of Morgan Hill
Public Services Department
17575 Peak Avenue, Morgan Hill, California, USA 95037
P: 408.782.9154 | C: 408.427.6196
[email protected]
Begin forwarded message:
From: "D. Muirhead" <[email protected]>
Date: August 17, 2026 at 12:41:59 PM PDT
To: CC Public Comment <[email protected]> Subject: [EXTERNAL] comment Morgan Hill City Council
August 19 #18: Future agenda item: Gateway Sign
Hello Morgan Hill City Council and City Staff,
A comment for your August 19 2026 meeting:
Item 18. PROPOSED FUTURE COUNCIL INITIATED AGENDA ITEMS
2. Funding for the Morgan Hill Gateway Vintage Sign Project I previously opposed the Downtown Gateway Sign as a mis-allocation
of $500,000 which could be used for so many beneficial projects for our businesses and residents. So I object to using the Public Art Fund for this purpose.
Since you approved the project, Development Services at the Planning
Commission meeting on July 14, 2026 introduced the Greater Downtown
Specific Plan which expands the boundaries of said Downtown. So the
"entry" to downtown will not match the sign location. ROTFL.
Doug Muirhead, Morgan Hill Resident
[Mayor] Funding of the Morgan Hill Gateway Vintage Sign Project I would like to discuss the Morgan Hill Gateway Vintage Sign project and the funding approach for the project through the Public Art Fund, which is supported by in-lieu fees generated from commercial and residential developments.
WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.
From: Russell Blalack
To: Mark Turner; Marilyn Librers; Yvonne Martinez Beltran; Miriam Vega; Soraida Iwanaga; Christina Turner; CC Public Comment
Subject: [EXTERNAL] Other Business: 18. (1) Proposed Review and update regulatory framework for utility-scale and specialized high-impact land uses
Date: Tuesday, August 18, 2026 3:36:53 PM
Dear Mayor, Councilmembers and staff,
I believe Morgan Hill needs clear, objective rules applicable to data centers and all other large, high-impact developments. The objective standards should apply to any non-residential, technology-emergent developments that place unusually large demands on our infrastructure or create significant environmental or safety impacts.
Two issues arise when considering an ordinance. First, who would have the authority to approve it? Would it be the City Council? The Planning Commission? City staff?
Then second, what rules would they apply to approve a high-scale, high-impact development project? How much electricity could it require? How much water could it use? What limits would apply to backup generators, fuel storage, battery systems, noise, heat, fire safety and emergency response? We need to be able to anticipate these impacts and assess appropriate levies and restrictions on such developments.
We have already seen what can happen in Gilroy. A large-scale data center was approved administratively by the Director of Economic Development and through the City's outdated regulatory process without involvement of the Planning Commission or the City Council.
Furthermore, the City needs to think beyond the next data center. This is why I believe the Mayor’s phrase "specialized high-impact land uses" in the proposed agenda item is so important.
Consider what is happening in Morgan Hill with the Cochrane Technology Center.
Archer Aviation has leased the entire approximately 500,000-square-foot industrial complex. This advanced manufacturing and high-tech business can be exactly the kind of economic development Morgan Hill should want, but it raises an important regulatory question.
The City approved the industrial buildings before Archer became the tenant. What happens when a new tenant moves into an existing industrial building and its particular operation creates substantially greater demands for electricity, water, battery storage, hazardous materials, emergency response or other infrastructure than were considered when the building was approved? The same levies and restrictions should apply in proportion to the anticipated impact on utilities, infrastructure and safety.
Does the City's existing approval simply allow the new operation because it is generally classified as an industrial use? Or does the City have a process that allows it to look at the intensity and actual impacts of the new operation? That distinction matters. The City may have approved the building for industrial
use, but that does not necessarily mean the City anticipated every type of industrial operation that could eventually occupy that building. The City should regulate the impact of the use, not simply the name of the business or the original use of the building.
Rather than trying to predict every new technology, the City can establish measurable thresholds. For example, a new development - or a new operation moving into an existing building - could receive additional review if it exceeds a certain level of electricity use, water consumption, wastewater generation, battery storage, backup generator capacity, fuel or hazardous-material storage, noise, heat or thermal output, traffic, demand on fire and emergency services, and building or campus size.These should be objective, measurable standards.
A 100-megawatt data center shouldn't be treated differently from an advanced manufacturing facility simply because one is called a data center and the other is not.If both place extraordinary demands on our electrical system, water supply or emergency services, the same basic protections should apply whether the development is a data center, large battery facilities, advanced manufacturing, or other future uses that exceed defined infrastructure or environmental thresholds.
Sincerely yours,
Russell Blalack
resident
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From: Michelle Bigelow
To: Vicky Rossi
Cc: Christina Turner
Subject: FW: [EXTERNAL] Comment for Aug. 19 City Council Meeting Date: Tuesday, August 18, 2026 5:28:35 PM
Supplement
Michelle Bigelow, MMC, CPMC
City Clerk/Public Information Officer
she | her | hers (what’s this?)
City of Morgan Hill
City Clerk’s Office
17575 Peak Avenue, Morgan Hill, CA 95037
D: 408.310.4678 O: 408.779.7259
[email protected]
morganhill.ca.gov | facebook | twitter
Engage with us – Sign up for Updates from the City of Morgan Hill! From: Sheila Dunwoodie <[email protected]>
Sent: Tuesday, August 18, 2026 3:38 PM
To: CityCouncil <[email protected]>
Subject: [EXTERNAL] Comment for Aug. 19 City Council Meeting Hello City Council,
Please vote YES to add the topic regarding the city's approach to high-impact land uses by reviewing and updating standards to a future agenda item.
Thanks,
Sheila Dunwoodie
41 year resident of Morgan Hill
WARNING: This message is from an external user. Confidential information such as social security numbers, credit card numbers, bank routing numbers, wire transfer information and other personally identifiable information should not be transmitted to this user. For question, please contact the Morgan Hill IT Department by opening a new helpdesk request online or call 408-909-0055.