Morgan Hill Mayor Steve Tate’s warning about city’s future
financial uncertainties should make residents and city leaders
think of ways to increase revenue, including the possibility of
raising taxes
At a time when big cities with huge budgets are trying to curtail their mayoral annual State of the City fandangos, Morgan Hill set the example of a modest, cost-free event Monday night at the Community and Cultural Center. Kudos for that. We enjoyed the simple cookies and coffee.

And while some city leaders choose secrecy and media manipulation later paying for these public sins, Morgan Hill Mayor Steve Tate shone during his speech because he shared his prepared statement with The Times before its delivery allowing the newspaper to make deadline and fully grasp the important points of his message which were:

  • That there won’t be enough money in the future to enhance city services for a growing population.

  • That he will go to his constituents to find out if and how city revenues should be increased.

  • That from prior public input received during a faulty “Community Conversation” process residents prefer increased economic development than raising taxes.

  • That “many” conversation participants would consider taxes if resulting service enhancements benefit the community.

We agree with the mayor that the city’s financial health must be a priority and that the availability of municipal services needs to be addressed.

The mayor, however, failed to make a stronger case to the citizenry for the need to increase services, particularly police and fire protection services. While telling the public that projections to remain in the black are based on maintaining the current level of services with the exception of two more police officers at the new Cochrane Road shopping center, Tate didn’t give us any definite answers.

Tate and the council need to address the service needs of a growing community that’s expected to reach 48,000 in population by 2020.

While we were hoping for more concrete ideas as to how to provide that for our residents, we hope Tate and the city’s Public Safety and Community Services Committee, led by him and Councilman Larry Carr, will have a solid plan to present to the community this May.

While the city barely escaped facing a budget shortfall this year, thanks to an infusion in sales taxes from higher gas prices, the economy’s uncertainty could take the city to dangerous financial territory. Faced with an unhealthy economy in the future, our 38,000 residents may or may not be inclined to pay for higher taxes to pay for services.

Therefore we join Tate in urging caution as city funds are spent and add to his warning message that financial difficulties are ahead and that our city leaders and its residents need to come up with ways to solve this financial dilemma soon.

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