City of Morgan Hill Fiscal Years 2020- 2022 Recommended Operating and CIP Budgets

Long Range Planning (continued)

 Review High Speed Rail (HSR) Environmental Impact Report -$50,000 (Advancing Regional Initiatives)  Finalize Annexation Environmental Impact Report -$200,00 (Preserving and Cultivating Public Trust)  Continue implementation of the City's Agricultural Lands Preservation Program (Advancing Regional Initiatives)  Evaluate Urban Service Area Expansion/Annexation opportunities and assist applicants with LAFCO applications (Advancing Regional Initiatives)  Update the City design standards (Preserving and Cultivating Public Trust)  Prepare an Addendum to the Downtown Specific Plan (Preserving and Cultivating Public Trust) Financial Comments Long range planning activities are primarily funded by the Long-Range Planning fee charged on all development applications. The Long-Range Planning fee was adopted by the City Council on March 21, 2012 and imposes a fee on most Planning and Building permit activities and some Engineering permit activities of 15% of the permit fee to fund the City's Long-Range Planning Program. The Program is, to a lesser degree, also funded by transfers from a combination of other City funds, including the General Fund, Housing Mitigation, Park Maintenance, Drainage Impact, Agriculture Preservation and Open Space, Traffic Impact, Wastewater Impact, and Water Impact funds as well as funds received from grants. These fees are proposed to continue to support vital long range planning requirements over the next two fiscal years and likely beyond. Moving forward, the Long-Range Planning Fund anticipates a draw upon the total fund balance as well as on-going revenue. Upcoming large projects including the Monterey Corridor Specific Plan, Environmental Justice Element, Circulation Element Update, and Comprehensive Housing Element Revision which may require a commitment of all funds in year one, with catch up revenues in year two. This fund may necessitate a temporary loan from the General Fund to create cash flow to pay for salaries as well as protracted project and study timelines.

252 DEVELOPMENT SERVICES