FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

313 - Fire Impact

Fund Description Fire Impact Fund revenues are derived from a fee charged to developers to cover the costs to construct public improvements required for Fire facilities as a result of new development. Expenditures may only be made for the future construction of the required new Fire facilities or to reimburse the City for funds advanced to construct such facilities. Fund is subject to the restrictions of AB1600. Beginning in 2020 the collection of Fire Impact Fees was halted, and the City began collection of a more general Public Safety impact fee for both Police and Fire. How this Fund Generates Money for Capital Investment New development creates the need for 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 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. In 2020, the Fire and Police Impact Fees were replaced with a new single Public Facilities Impact Fee and Fund 313 will not receive fee revenues in the future.

Goals for Capital Investment The goal for the use of this fund during this period is to fund the building of a new Fire Station in the City.

Project List Summary Projects

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

231018 - New Fire Stations

$110,000 $110,000

$220,000 $3,800,000 $220,000 $3,800,000

$150,000 $150,000

Totals

Six-Year Pro Forma

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

2019-21 YE Projected

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

$3,873,198 $4,047,072

$3,995,377 $3,834,832

$95,472

$7,328

$70,421

$129,603

$72,468

$61,598

$62,830

$64,086

$65,368

$66,675

$68,009

$110,000

$220,000 $3,800,000

$150,000

$28,197

$3,293

$3,375

$3,446

$3,512

$3,582 $70,421

$3,654

$4,047,072

$3,995,377

$3,834,832

$95,472

$7,328

$134,776

2021-2026 Six Year Capital Improvement Program

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