Structural Budget Deficit — Planning Ahead for a Revenue Measure
active• morganhill
Morgan Hill is managing a slow-building fiscal challenge that its leadership is now openly addressing. Mayor Mark Turner confirmed at the April 1, 2026 City Council meeting that the city's general fund reserve is not expected to drop below its minimum 15% level until fiscal year 2029-30, so significant service reductions are not recommended at this time. But the longer-term trajectory requires action. Morgan Hill is aggressively pivoting toward sports tourism and healthcare expansion to address a structural deficit — including authorizing negotiations for a major multi-use indoor sports complex and a 133,000-square-foot expansion of the Rosewood Medical Campus — as revenue diversification strategies. The City Council has set its sights on 2028 as the target date for a potential new revenue measure, with Mayor Turner emphasizing his preference for a public safety-focused tax, and directing staff not to keep deferring the conversation.
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Related cause: Budget priorities
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