FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

308 - Street CIP

Fund Description This fund was established effective July 1, 2007. The fund accounts for resources and requirements for capital projects that support the City of Morgan Hill’s streets and roads. The fund has been separated from Street Operations (Fund 202). How this Fund Generates Money for Capital Investment The funds allocated, which are normally transfers from other revenue funds and grant reimbursements, may be expended on new streets, traffic signals, and improvements of existing streets. Since 2012, the City's Pavement Condition Index (PCI) has dropped from 76 to 72. The General Fund contribution for street improvement projects is $1,000,000 annually in each of the next two fiscal years. New funding of approximately $1.6 million annually is anticipated to be received as a result of State Senate Bill 1 and County Measure B. The total estimated investment in the City's pavement rehabilitation and safety program in the Biennial Budget is $8.8 million. However, unless new revenue sources can be obtained in future years, the CIP projects an average of $2.5 million annually for fiscal years 20/21 through 23/24. Limitations and Other Important Factors This fund does not independently generate any revenues. In many situations, the funds used for street-related work is grant funded. Since grants are paid on a reimbursement basis: 1) the work is first completed, 2) a reimbursement request is submitted, and 3) in approximately 60-90 days a reimbursement check is received. Because award of a grant constitutes a "reimbursement promise" by the granting agency, it is not unusual for the process to overlap fiscal years; the work might be completed in one fiscal year, and the reimbursement is received in the next fiscal year. Goals for Capital Investment The goal during this period is to continue with the pavement rehabilitation program and the assessment district streets. Due to increases in funding, the number of streets to be repaired annually has greatly increased.

Project List Summary

Projects

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

519000 - Pavement Rehabilitation Program 563013 - Assessment District - Streets 577016 - Cochrane Green Bike Lane Striping

$3,590,000

$4,507,000

$2,400,000

$2,400,000

$2,400,000

$2,400,000

$705,000

$393,600

$110,000

Totals $3,700,000

$5,212,000

$2,793,600

$2,400,000

$2,400,000

$2,400,000

2019-2024 Six-Year Capital Improvement Program

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