FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

CITY OF MORGAN HILL CAPITAL IMPROVEMENT PROGRAM

651 - Water Impact

Fund Description The Water Impact Fund receives revenues from developer charges to cover the costs to construct water improvements required as a result of the new development. Expenditures may only be made for the construction of the required improvements or to reimburse the City for funds advanced to construct such improvements. Fund is subject to the restrictions of AB1600. 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 of new services. The City imposes public facilities fees under authority granted by the Mitigation Fee Act, contained in California Government Code Sections 66000. A City Council-adopted "Impact Fee Report" provides the necessary findings required for adoption of the fees. Limitations and Other Important Factors All development impact fee-funded capital projects are programmed through the City's 6-Year Capital improvement Plan (CIP), to build out new public facilities/infrastructure projects to 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 consist of funding for new water wells, reservoirs, and water mains to service future growth.

Project List Summary Projects

2020-21

2021-22

2022-23

2023-24

2024-25

2025-26

602a18 - Water Storage Sys Improv- Glen Ayre Tank 602b18 - Water Storage Sys Improv- Woodland Tank

$32,051

$149,572

$48,200

$224,235

603000 - New Water Mains

$100,000

$600,000 $413,000 $150,000 $1,360,772

610a18 - Holiday Lake Improvements

$3,127,000 $100,000 $3,451,235

624018 - Water Planning

$150,000 $282,051

$50,000 $50,000

$50,000 $50,000

$150,000 $150,000

Totals

2021-2026 Six Year Capital Improvement Program

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