FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

309 - Traffic Impact

Fund Description Traffic Impact Fund revenues are received from developers if their projects have an adverse impact on traffic flows, street, etc. The funds collected may be expended on new streets, traffic signals, and improvements of existing street where they are impacted by new development. Fund is subject to the restrictions of AB1600. How this Fund Generates Money for Capital Investment Revenues result from the City's development impact fee program, through which new development pays the capital costs associated with growth. 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 traffic 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 Capital Improvement Plan (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 Mitigation Fee Act. Goals for Capital Investment The goals for this fund during this period are to expand transit and non-motorized travel opportunities, as needed to service anticipated future growth.

Project List Summary Projects

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

502000 - Intersection Improvements 546007 - Hale Avenue Extension

$1,500,000

$1,150,000

$1,150,000 $1,200,000

$14,500,000

$300,000 $300,000

$200,000 $1,700,000

Totals $14,500,000

$1,150,000

$1,150,000

$1,200,000

Six-Year Pro Forma

2019-21 YE Projected

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

Beginning Fund Balance Revenues - Impact Fees (AB1600) Revenues - Other Expenditures - CIP Projects Expenditures - Other Ending Fund Balance

($1,263,866)

($776,625)

$1,663,707

$2,712,487

$2,335,777

$2,547,955 $2,800,087

$878,103

$2,535,492

$1,453,970

$1,428,443

$1,467,296

$1,507,215

$1,477,390

$16,630 $14,514,136

$14,418

$14,707

$15,001

$15,301

$15,607

$278,557 $14,500,000

$300,000 $1,700,000

$1,150,000

$1,150,000 $1,200,000

$118,935

$119,296

$119,606

$119,860

$120,119

$120,384

$120,653

$2,800,087

($776,625)

$1,663,707

$2,712,487

$2,335,777

$2,547,955

$2,972,431

2021-2026 Six Year Capital Improvement Program

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