FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

347 - Public Facilities Impact

Fund Description Public Facilities Fund revenues are derived from fees charged to developers to cover the costs to construct public improvements required as a result of new development. Expenditures may only be made for the future construction of the required new facilities or to reimburse the City for funds advanced to construct such facilities. 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 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 (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 Due to the limited anticipated funds to be collected, there are no projects anticipated in the six-year period and the goal is to accumulate funding towards future public facility projects such as expansion of City Hall or the Corporation Yard.

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 - Non- AB1600 RDCS Revenues - Other Expenditures - CIP Projects Expenditures - Other Ending Fund Balance

$688,851

$678,588

$987,420

$1,225,625 $1,398,446

$1,576,247

$1,759,153

$152,781

$323,882

$253,068

$187,481

$192,254

$197,149

$199,470

$14,381

$12,224

$12,468

$12,718

$12,972

$13,231

$13,496

$150,217

$27,208

$27,274

$27,331

$27,378

$27,425

$27,474

$27,523

$678,588

$987,420

$1,225,625

$1,398,446

$1,576,247 $1,759,153

$1,944,596

2021-2026 Six Year Capital Improvement Program

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