Adopted Capital Improvement Program Budget FY 2024-25 through FY 2029-30

City of Morgan Hill Capital Improvement Program FY 2024-25 – FY 2029-30

641 - Sewer Impact- Wastewater

Fund Description The primary purpose of the Sewer Impact Fund is to construct expansions to the City’s Wastewater System to accommodate new development. The Fund receives revenues from developer charges to cover the costs to construct sewer improvements required as a result of new development. Expenditures may only be made for the construction of the required improvements or to reimburse the City for funds advanced to construct such improvements. The Fund is subject to the restrictions of AB1600. The primary planning tool for the Fund is the City’s Sewer System Master Plan.

Project List

2024-25

2025-26 2026-27 2027-28 2028-29 2029-30

675,197 $ 126,357 $ 58,098 $ 88,289 $ 36,233

$

34,149 $

PF2006 - Project Administration

PF2001 - Infrastructure Planning Documents

-

- -

- -

- -

125,000

- -

WW3003 - Sewer Plant Expansion

4,000,000

-

-

1,500,000

-

-

2,500,000

WW3004 - Sewer Plant Improvements

-

250,000 43,763,000

-

-

-

-

WW3008- New Trunk Line

WW3009 - New/Replacement Sewer Lines

461,000 200,000 Totals $ 4,745,149 $ 47,188,297 $ 1,079,457 $ 578,298 $3,174,289 $ 236,233 1,250,100 953,100 520,200 461,000

How this Fund Generates Money for Capital Investment New development creates the need for the City to expand its inventory of public facilities and build new, or expand current, infrastructure to handle the demands of new services. The City imposes public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000. A City Council-adopted "Impact Fee Report" provides the necessary findings required for adoption of the fees. Limitations and Other Important Factors All development impact fee-funded capital projects are programmed through the City's 6-Year CIP, to build out new public facilities/infrastructure projects to accommodate future growth. By programming fee revenues to specific capital projects, the City ensures a reasonable relationship between new development and the use of fee revenues as required by the Mitigation Fee Act. Goals for Capital Investment The goals for this fund during this period are to expand and improve the sewer enterprise system to accommodate anticipated future growth. Revenues- Other includes interest income and a loan for the New Trunk Line project in FY24-25. Expenditure- Other includes annual transfers-out to the General Fund for administration and infrastructure planning, debt service, and to Fund 207 (Long Range Planning) for the general plan update. Six-Year Pro Forma 2023-24 YE 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 Fund 641-Sewer Impact Projected Beginning Fund Balance $ 21,350,081 $ 14,532,435 $20,839,828 $ 3,462,955 $10,802,934 $ 11,495,594 $ 6,987,227 Revenues - Impact Fees 3,994,917 11,546,118 15,415,728 12,805,084 5,570,990 3,021,130 2,088,432 Revenues - Other 830,000 275,047 15,164,788 387,802 474,329 420,150 318,810 Expenditures - CIP Projects 10,870,594 4,745,149 47,188,297 1,079,457 578,298 3,174,289 236,233 Expenditures - Other 771,969 768,622 769,093 4,773,450 4,774,360 4,775,358 3,776,759 Ending Fund Balance $ 14,532,435 $20,839,828 $ 3,462,955 $10,802,934 $ 11,495,594 $ 6,987,227 $ 5,381,478