FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

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 such as the Traffic Impact Fund 309 and grant reimbursements, may be expended on new streets, traffic signals, and improvements of existing streets. Due to current policy and various grant requirements, all funding has been dedicated pavement rehabilitation. Limitations and Other Important Factors This fund does not independently generate any revenues. For the most part, the funds used for street-related work have been primarily grants. 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 new fiscal year. Expenditures are only made on the assurance of funds to be received. Because Fund 308 has no income sources beyond grants, it occasionally receives loans from another fund so that the grant application process can be initiated (design work, renderings, studies, etc.). These loans are routinely repaid upon receipt of grant reimbursements for the project. Goals for Capital Investment The goals of the use of this fund during this period are complete pavement rehabilitation projects improving the conditions of City roadways.

Project List Summary Projects

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

519000 - Pavement Rehabilitation Program

$2,500,000 $3,580,000 $2,800,000 $2,850,000 $2,850,000 $2,850,000 Totals $2,500,000 $3,580,000 $2,800,000 $2,850,000 $2,850,000 $2,850,000

Six-Year Pro Forma

2019-21 YE Projected

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

Beginning Fund Balance Revenues - Other Expenditures - CIP Projects Expenditures - Other

$3,299,044 $4,585,627

$133,588 $2,677,813

$286,583

$249,519

$192,577

$142,808

$116,871

$3,558,124

$2,758,550

$2,816,033

$2,840,181 $2,864,780

$7,736,697 $2,500,000 $3,580,000 $2,800,000 $2,850,000 $2,850,000 $2,850,000

$15,802

$14,386 $133,588

$14,818

$15,188

$15,492

$16,118

$16,440

Ending Fund Balance

$286,583

$249,519

$192,577

$142,808

$116,871

$115,211

2021-2026 Six Year Capital Improvement Program

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