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

643 - Sewer Capital Project- Wastewater

Fund Description The Purpose of the Sewer Capital Project Fund is to implement capital improvements to the sewer system that support the ongoing maintenance of the system. The primary planning tool for the Fund is the City’s Sewer System Master Plan. The Fund was established to avoid fluctuations in the sewer rates charged by providing reserve funding for future system replacements. Annual contributions from the Sewer Operations Fund occur to fund planned capital projects in this area. Project List 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 PF2006 - Project Administration $ 409,323 $ 313,321 $ 563,853 $ 510,194 $ 1,522,674 $ 693,135 PF2001 - Infrastructure Planning Documents - - - - 125,000 - WW3001 - Sewer System Repair & Replacement 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 WW3006 - Lift Station Improvements 1,353,600 - - - 2,793,600 - WW3008 - New Trunk Line 100,000 14,588,000 - - - - WW3009 - New/Replacement Sewer Lines 276,600 1,000,080 953,100 468,180 2,257,020 100,000 WW3010 - Utility Infrastructure Access Roads - - 500,000 - - 500,000 WW3012- Existing Joint Trunk Repairs 4,000,000 2,800,000 - 1,200,000 - 326,000 WA6010 - Utilities Security System Enhancement - - 300,000 400,000 400,000 400,000 WA6011 - Utility System Solar 292,000 - - - - - Totals $ 8,931,523 $21,201,401 $ 4,816,953 $ 5,078,374 $ 9,598,294 $ 4,519,135 How this Fund Generates Money for Capital Investment Funding comes from planned transfers from the Sewer Operations Fund, which is funded through ratepayers. Limitations and Other Important Factors The projects paid for through this fund are projects for the purpose of rehabilitation and replacement work for the City's wastewater system. Goals for Capital Investment The goals for this fund during this period consist of improvements to enhance system reliability and maintenance to take care of existing system deficiencies by replacing and rehabilitating sewer system components. Revenues- Other includes interest income and annual transfers-in from Fund 640 (Sewer Operations) and 641 (Sewer Impact), as well as a loan for the New Trunk Line in FY24-25. Expenditure- Other includes annual transfers-out to the General Fund for administration, and debt service. Six-Year Pro Forma 2023-24 YE 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

Fund 643-Sewer Capital Project

Projected

Beginning Fund Balance Revenues - Impact Fees

$ 15,601,623 $ 16,021,144 $ 11,919,496 $ 4,476,451 $ 5,023,359 $ 5,821,267 $ 2,452,312

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Revenues - Other

6,655,453 4,916,032 1,319,900

6,149,134 8,931,523 1,319,259

15,076,739 21,201,401 1,318,383

7,546,468 4,816,953 2,182,608

8,059,470 5,078,374 2,183,188

8,414,047 9,598,294 2,184,708

9,093,324 4,519,135 2,188,908

Expenditures - CIP Projects

Expenditures - Other

Ending Fund Balance

$ 16,021,144 $ 11,919,496 $ 4,476,451 $ 5,023,359 $ 5,821,267 $ 2,452,312 $ 4,837,593