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

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

348 - Library Impact

Fund Description Library Impact Fund revenues are derived from a fee charged to developers to cover the costs to construct library improvements required as a result of new development. Expenditures may only be made for the future construction of the required new library facilities or to reimburse the City for funds advanced to construct such facilities. Fund is subject to the restrictions of AB1600. How this Fund Generates Money for Capital Investment New development creates the need for the City to expand its inventory of public facilities and build new, or add on to current, infrastructure to handle the demands for new services. The City imposes public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. A City Council-adopted "Impact Fee Report" provides the necessary findings required by the Act for adoption of the fees presented in impact fee schedules. Limitations and Other Important Factors All development impact fee-funded capital projects are programmed through the City's 6-Year CIP, by which the City identifies and directs its fee revenue to new public facilities/infrastructure projects that will 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 Act. Goals for Capital Investment The goal for the use of this fund is to complete the expansion of the Morgan Hill Library. Expenditures-Other includes the Transfers Out for Bond/Debt service. Sufficient Library Impact Funds are available to complete Phase I & II of the expansion. Any shortfall will be mitigated with a temporary interfund loan. Phase III has been put on hold until sufficient revenues are generated. Revenue-Other includes library rent, and for FY 2018/19, it includes a temporary interfund loan transfer from Fire Impact Fund (Fund 313).

Project List Summary

Projects

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

251015 - Library Expansion

$3,265,364

$50,000

Totals $3,265,364

$50,000

Six-Year Pro Forma

2017-18 YE Projected

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

Beginning Fund Balance $2,103,639 $2,862,332

$36,893

$362,298

$731,252

$1,153,871

$1,588,068

Revenues - Impact Fees (AB1600)

$577,049

$713,841

$758,557

$413,124

$466,883

$478,555

$490,519

Revenues - Other

$741,109

$195,724

$177,667

$177,738

$177,809

$177,883

$177,958

Expenditures - CIP Projects

$337,400

$3,265,364

$50,000

Expenditures - Other

$222,065

$469,640

$560,819

$221,908

$222,073

$222,241

$222,414

Ending Fund Balance

$2,862,332

$36,893

$362,298

$731,252

$1,153,871

$1,588,068

$2,034,131

2019-2024 Six-Year Capital Improvement Program

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