Morgan Hill’s budget deficit must be addressed, but that shouldn’t result in any significantly reduced services.
Due to a widespread aversion among residents to any increase in tax levels, sometimes rightly so, we are stuck between a rock and a hard place. There is a need to be wise in the choice of taxes and service reductions, so we can minimize the impact on both the cost of living and quality of life in the city.
Some low-hanging fruit would be to increase the Transient Occupancy Tax, the hotel tax, by 2 percent. According to the budget simulator tool released by the city government, this would increase revenue by $500,000. It’s an easy choice as it has minimal impact on residents, and is not a significant change for travelers.
Implementing a quarter cent sales tax would eliminate a large portion of the deficit; a small increase in cost is imperceptible on an individual level, but has a significant impact. This would raise around $2.9 million, according to the same tool.
Lastly, if we don’t want to increase taxes further, some service reductions will have to be enacted. This is difficult because so many of the city’s services are essential for members of our community.
The simplest place to make a small change is in the police budget. A small 3% reduction distributed evenly through the department wouldn’t result in a change in the level of safety we enjoy as residents, and would complete the process of enacting a balanced budget.
These changes are our best option for continuing the excellent services provided by the City of Morgan Hill sustainably. Keeping increases in tax levels to a minimum is a key component of making this plan sustainable for the long term.
Shayan Bahrainy
Morgan Hill
