The City of Morgan Hill will hold a public budget town hall meeting May 16, giving residents a chance to learn about the city’s financial outlook and ask questions of city staff.
The meeting is scheduled for 10am at the Community and Cultural Center, in the Poppy Jasper Room, 17000 Monterey Road. The city’s budget team, including Director of Finance Dat Nguyen and Budget Manager Monica Delgado, will run the meeting and field questions.
The event comes as Morgan Hill grapples with a structural budget deficit that city officials say will require action within the next few years. The city’s expenditures are outpacing revenues by roughly $4 million per year, a gap that threatens to erode its general fund reserve over time. Current projections expect the reserve to drop below the city’s minimum threshold of 15% in fiscal year 2029-30, triggering sweeping mandatory cuts across city services.
City leaders are working toward placing a new revenue measure on the ballot in 2028 to help shore up this deficit, while simultaneously engaging the public to determine what level of budget cuts, and to what services, Morgan Hill residents could tolerate.
“The City’s budget is one of the most important policy documents we produce because it reflects community priorities and determines how resources are allocated across services residents rely on every day, from police and fire, to parks, recreation programs, street maintenance and community events,” said Morgan Hill Mayor Mark Turner.
He said the fiscal challenges Morgan Hill faces are not unique, but require public input to ensure city leaders are making decisions that reflect the values and priorities of their constituents.
“We want residents to understand the financial realities the city is facing, ask questions and share what matters most to them,” he said. “This is their opportunity to learn, ask questions and better understand how city resources are distributed and the choices involved with balancing community priorities.”
Turner said he hopes residents will leave with a clearer picture of the challenges ahead.
“Most importantly, we hope residents understand that maintaining the services our community values will likely require additional ongoing revenue within the next few years, and that this is a community conversation we need to have together,” he said.
Residents do not need to be budget experts to attend, but the city is encouraging participants to take a look at the budget document in advance, especially the “Budget Message” section, which lays out the “big picture.”
“It explains the City’s financial outlook, key priorities, major challenges and the decisions that helped shape the recommended budget over the next two fiscal years,” Turner said.
Turnout at a similar budget meeting held March 25 was sparse, with only three residents attending. Among them was Brian Sullivan, a Morgan Hill resident who has followed the budget process closely. He said the low engagement concerns him.
“I just wish more people would get involved,” Sullivan said. “Everyone should get engaged as much as possible so they understand the financial issues the city is facing, where we are and where we’re going.”
Sullivan noted the stakes are significant across essential city services including police and fire. With a police force of 44 sworn officers for a city approaching 50,000 residents, he said Morgan Hill falls short of federal guidelines recommending 1.2 officers per 1,000 people.
“We’re working the officers overtime, we’re burning them out,” Sullivan said. “It’s not an easy job. The same goes for fire. We could use more firemen to man those houses.”
He added that the budget pressures extend beyond public safety, with street maintenance and other city services also feeling the strain.
“It’s not going to go away,” he said. “We have to come up with a solution.”
The May 16 town hall is free and open to the public. Residents can find links to view the city’s recommended budget documents at morganhill.ca.gov/463/Budget-and-Financials.
