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

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

653 - Water Capital Project

Fund Description This fund was renamed and combined with the Water Capital Projects Fund. This fund was established to avoid fluctuations in sewer rates by providing reserve funding for future system replacements. The initial contribution to this fund was $2,550,000 from the Water Operations Fund. Future contributions will come from transfers from the Operations Fund when available. How this Fund Generates Money for Capital Investment Funding comes from transfers from the Water Operations Fund when available. In May 2014, the City received $13 million of new financing from water revenue bond to be used to fund new projects. This fund pays 70% of debt service payment for the water revenue bond, and 30% is paid out of the Water Impact Fund. 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 existing water system. Goals for Capital Investment The goals for this fund during this period consist of improvements to enhance system reliability and to take care of existing system deficiencies by replacing deteriorated water main. Revenues-Other includes transfers from the Sewer Operations Fund (650) for debt service payments. Expenditures-Other includes a portion of the debt service payments for the 2014 Water Revenue Bonds.

Project List Summary Projects

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

512093 - Underground Monterey Utilities 602000 - New Water Reservoirs 603000 - New Water Mains

$7,000

$2,040,000

$370,000

$441,000

607000 - Booster Pump Rehabilitation

$73,000

$1,100,000

608000 - Rehabilitate Water Wells 610000 - Water Main Replacement

$580,000

$630,000 $735,000

$735,000

$430,000

$1,100,000

620007 - Recoat Water Reservoir/Tank

$200,000

623014 - Water Supply Planning 625016 - Well Demolition and Abandonment

$200,000

$200,000

$200,000

$400,000

Totals

$3,141,000

$400,000

$935,000

$1,565,000

$1,000,000 $2,400,000

2017-2022 Six-Year Capital Improvement Program

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