FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

643 - Sewer Capital Project

Fund Description This fund was established to avoid fluctuations in the sewer rates charged by providing reserve funding for future system replacements. The fund was initially funded with one-time revenues. The initial contribution to the System Replacement Fund was $1,300,000 from the Sewer operations Fund. Future funding comes from transfers from the Operations Fund when available.

How this Fund Generates Money for Capital Investment Funding comes from transfers from the Sewer Operations Fund, when available.

Limitations and Other Important Factors The projects paid for through this fund are projects for the purpose of rehabilitation and replacement work for the City's water system. Goals for Capital Investment The goals for this fund during this period consist of improvements to enhance system reliability and repair of existing system deficiencies. Project List Summary Projects 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 302018 - Sewer System Repair and Replacements $8,700,000 $4,396,786 $2,393,700 $2,393,700 $2,393,700 $2,393,700 302t17 - East 5th Street & Tennant Ave Sewer Project $800,000 304k15 - Lift Station Improvements $2,080,000 308a08 - New Trunk Line $12,500 $25,000 $3,625,000 $3,625,000 315006 - New/Replacement Sewer Lines $859,099 $1,763,435 317a18 - Wastewater Planning $230,000 $175,000 $225,000 $75,000 Totals $12,681,599 $4,596,786 $8,007,135 $6,093,700 $2,393,700 $2,393,700

Six-Year Pro Forma - This fund shows a negative fund balance due to planned project expenditures. The City intends to issue bonds to fund the required projects within this area, prior to approval of those projects.

2019-21 YE Projected

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

Beginning Fund Balance Revenues - Other Expenditures - CIP Projects

$9,791,525 $8,080,642 ($2,098,399) ($3,943,220) ($8,758,150) ($10,274,812) ($8,089,897)

$4,818,757 $4,455,944 $4,707,648

$4,990,181

$5,143,939

$5,145,448

$5,046,898

$4,577,475 $12,681,599 $4,596,786

$8,007,135

$6,093,700

$2,393,700

$2,393,700

Expenditures - Other Ending Fund Balance

$1,952,165

$1,953,386

$1,955,683

$1,797,976

$566,901

$566,833

$566,020

$8,080,642 ($2,098,399) ($3,943,220) ($8,758,150) ($10,274,812) ($8,089,897) ($6,002,719)

2021-2026 Six Year Capital Improvement Program

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