City of Morgan Hill Adopted Budget FY 2016-17 and FY 2017-18

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

651 - Water Impact

Fund Description The Impact Fund receives revenues from developer charges to cover the costs to construct water improvements required as a result of the 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. Fund is subject to the restrictions of AB1600. How this Fund Generates Money for Capital Investment New development creates the need for City to expand its inventory of public facilities and build new- or add on to current- infrastructure to handle the demands of new services. The City imposes public facilities fees under authority granted by the Mitigation Fee 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 consist of funding for new water wells, reservoirs, and water mains to service future growth. Expenditures-Other includes a portion of the debt service payments for 2014 Water Revenue Bonds.

Project List Summary Projects 601000 - New Well Property/Construction

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

$1,963,000

$1,140,000

$90,000

602000 - New Water Reservoirs 603000 - New Water Mains

$680,000 $884,000

$200,000

$200,000

$200,000

$200,000

607000 - Booster Pump Rehabilitation

$240,000

623014 - Water Supply Planning

$100,000

$100,000 $100,000

$100,000 $300,000

$50,000

$50,000 $250,000

$50,000 $340,000

Totals $3,867,000

$1,390,000

2017-2022 Six-Year Capital Improvement Program

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