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

Policy Discussion

Recent developments have increased the urgency in completion of expansion projects and the rehabilitation of components of the existing wastewater system. The available project funding will be presented to the City Council in the proposed Capital Improvement Plan during the upcoming budget process. However, available funding in the Sewer Utility is not adequate to support the proposed capital plan. Staff is recommending that a rate study be conducted immediately to understand what rate increase would be needed to fund the proposed capital plan.

• Should an update to the wastewater rate study commence immediately?

When the results of the Impact Fee study are available it is anticipated that that the recommended Sewer Impact Fees will increase. Increased impact fees are an area of concern as it relates to commercial and industrial development, which in turn can be a hindrance to development. However, understanding the urgency of the Wastewater System expansion projects, these fees will need to be prioritized.

Relief Trunk Line Allignment

INFRASTRUCTURE UPDATE REPORT CITY OF MORGAN HILL

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