The Mayor's Monthly

Finance · City Budget

Morgan Hill Keeps Its Top Credit Rating

Our city earned the highest grade a city can get — again. Here's what it means for you.

Highest possible S&P rating

AAA

Outlook for the years ahead

Stable

General fund reserve (Mar. 2026)

47%

On October 23, S&P Global Ratings confirmed Morgan Hill's AAA credit rating, the highest rating possible, with a stable outlook. Think of it as a credit score for the city. A AAA rating tells lenders that Morgan Hill pays its bills, plans ahead and manages money well.

That matters to every resident. A strong rating means lower interest rates when the City borrows for roads, parks and other big projects. Lower interest means more of your tax dollars go to the project itself, not to the bank.

S&P pointed to our strong local economy, healthy reserves and low debt. It also praised the City's careful long-range planning.

We still have work to do. Costs for public safety and staff are rising faster than revenue. Over the next two years, the Council will look closely at ways to bring spending and income back into balance. Our reserves give us time to make those choices carefully, not in a rush.

Mobility · Transportation

Hale Avenue Is Back Open

The detour is over. Critical flood work is finished just in time for winter storms.

Good news for drivers: Hale Avenue between Main Avenue and Llagas Road was set to reopen on November 6, weather permitting. The road had been closed since April 15 so Valley Water could finish key flood-protection work as part of the Upper Llagas Creek project.

All of the critical work inside the creek channel is done. That means our community is better prepared if El Niño brings heavy rain this winter.

Crews will still be on site for cleanup, landscaping and PG&E electrical work, so watch for short lane closures. Spring Avenue stays closed at the channel through late November.

This final phase also brings a wider Hale Avenue between Main and Wright, new streetlights, underground utilities and a new traffic signal at Wright and Hale. When the full project wraps up in 2027, it will remove hundreds of properties from the flood zone. Thank you for your patience during the detours.

Neighborhoods · Housing

SB 330: Why We Can't Set Our Own Pace

A state law has put Morgan Hill's voter-approved growth plan on hold until 2030.

For more than 40 years, Morgan Hill voters chose to manage how fast our city grows. In 2016, 77 percent of voters approved Measure S, which limited new homes to 215 a year. It also helped the City win affordable homes and plan ahead for roads, schools and services.

Then the state stepped in. Senate Bill 330, the Housing Crisis Act of 2019, took effect on January 1, 2020. It suspended Measure S and set aside our population cap. A later law, SB 8, extended those rules until 2030.

What does that mean? The City can no longer control how many homes are built each year. Projects that meet our written, objective standards must be approved. We can't deny or shrink a project just because of how it looks or feels, and the number of public hearings is limited.

California needs more housing, and Morgan Hill is doing its part. But growth without local planning puts pressure on traffic, schools, water and public safety. Our job is to make every project the best it can be within the rules — and to keep fighting in Sacramento for a local voice.

More on state housing laws on the Housing Issues page →

Holidays · Merry Morgan Hill

Merry Morgan Hill Lights Up Downtown

Lights, music and small-town magic start Friday, December 4.

The holidays are here. Merry Morgan Hill kicks off on Friday, December 4 with a Night of Music and Magic from 4:30–8:30 p.m. at the Community Center. There will be a Holiday Concert, more than 40 vendors, kids activities, food, and more.

Saturday, December 5 is when the Holiday Lights Parade rolls down Monterey Road. Look for glowing floats, marching bands, local clubs and, of course, Santa Claus. Bring a chair, a warm jacket and the whole family. Come early to grab a good spot, then stay for dinner or hot cocoa at one of our downtown restaurants.

All month long, please shop local for your gifts. Every dollar you spend here helps our small businesses and keeps Morgan Hill strong.

Sacramento · State Legislature

More Than 1,000 New State Laws

The 2026 session is over. Most new laws take effect January 1, 2027.

Bills sent to the Governor

1,160

Signed into law

1,040

Vetoed

120

Governor Newsom finished acting on bills by his September 30 deadline. Here are a few new laws that could affect Morgan Hill families, workers and businesses:

• Housing · AB 1751

  Creates a fast, "by-right" approval path for townhome projects of up to 150 units and skips state environmental review. Cities will have even less say over these projects.

• Workers · SB 1149

  Lets workers name one "designated person," beyond close family, for bereavement leave.

• Health · AB 2150

  Where employers require CPR training, workers will also learn how to use naloxone to reverse an opioid overdose.

• Technology · SB 947

  The "No Robo Bosses Act" stops employers from relying only on AI to discipline or fire workers, starting July 1, 2027.

This was also Governor Newsom's final session. A new governor takes office in January, and I'll keep you posted on what that means for Morgan Hill.

Calendar · Upcoming Events

Mark Your Calendar

• Sat Nov 28

  Jingle Market on 3rd Street

  Shop local makers and holiday gifts along downtown's favorite street.

  E. 3rd Street, Downtown · 9:00 AM–1:00 PM

• Sat Nov 28

  Merry Market Holiday Bazaar

  Holiday crafts, gifts and treats from local vendors.

  Community Center · Noon–4:00 PM

• Wed Dec 2

  City Council Meeting

  See your Council at work. Public comment is welcome on any City topic.

  Council Chambers · 6:00 PM

• Fri Dec 4

  Merry Morgan Hill Kickoff Featured

  A Night of Music and Magic with a Holiday Concert, 40+ vendors, kids activities and food.

  Community Center · 4:30–8:30 PM

• Sat Dec 5

  MH Holiday Lights Parade & Christmas Tree Lighting

  Glowing floats, music and Santa, followed by the lighting of the City tree.

  Downtown · 5:30–6:30 PM

• Wed Dec 9

  City Council Meeting: Installation Ceremony

  Swearing-in of Mayor Turner and Councilmembers-elect Hayes and Alvarado.

  Council Chambers · 6:00 PM

For more information on holiday events, go to visitmorganhill.org (Event Calendar tab).

Gallery · Photo Contest

Monthly Photo Contest

This month's subject: El Toro Mountain

It's the peak that watches over our city. Show us El Toro at sunrise, under winter clouds or from your favorite trail. Phones and cameras are both welcome.