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

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 the 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 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, 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 a new reservoir, pump station, 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

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24

602a18 - Water Storage Sys Imprv- Glen Ayre Tank 602b18 - Water Storage Sys Impv- Woodland Tank

$181,623

$272,435

603000 - New Water Mains

$200,000

$200,000

$200,000

$200,000

610a18 - Holiday Lake Improvements

$590,000

$2,528,443

$198,579

624018 – Water Planning

$70,000

$105,000

$227,500

$87,500

Totals

$200,000

$270,000

$486,623

$1,289,935

$2,615,943

$198,579

2019-2024 Six-Year Capital Improvement Program

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