Operating and CIP Budget Fiscal Year 2015-16

Capital Improvement Program (CIP)

The proposed FY 15-16 through FY 19-20 CIP totals $93 million. The primary project categories include 1) Park Facilities ($15 million), 2) Public Facilities ($0.7 million), 3) Sanitary Sewer ($42 million), 4) Storm Drainage ($6 million), 5) Streets & Roads ($18 million), and 6) Water ($12 million).

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FY 15-16 CIP is appropriated as part of the FY 15-16 Budget approval and it totals $38 million. Some of the project high- lights include the following:

1. Downtown Parks and Trails ($2.9 million) and Downtown Improvement Projects ($2 million): Create parks and trails in the downtown that are integrated as part of downtown revitalization. The Downtown Im- provement Project is a combined project to account for the downtown projects that are planned for com- pletion by the end of 2015.

2. Library Expansion ($0.3 million): Design work for the expansion and improvement of the Morgan Hill Li- brary that includes space modification and improvements.

3. Pavement Rehabilitation Program ($2.6 million): Ongoing program to address the City's pavement reha- bilitation needs (see additional information in next section).

4. Sewer Plant Improvement ($8.5 million) and Sewer Plant Expansion Project ($1.3 million): These projects are for the City's 41.9 percent share of the improvement and expansion costs at the South County Re- gional Wastewater Authority (SCRWA) treatment plant which is co-owned with the City of Gilroy. 5. New Well Property/Construction ($2 million) and New Water Reservoirs ($2.3 million): New water wells are required to meet the City's water supply needs as the Morgan Hill grows and to provide the necessary reliability during drought conditions. New reservoirs are needed to increase storage capability and assist meeting peak demand levels.

Public Infrastructure

In Morgan Hill, consistent with other California cities, there is a need for addi- tional public investment in streets, parks and landscape, and public building infrastructure. The City recognizes that ongoing revenue is insufficient to fund these vital community assets at a sustainable level. The condition of the publicly owned infrastructure (especially streets) is deteriorating and the de- ferred maintenance backlog is increasing. Thus, the expense to repair these assets grows as each year passes without a sustainable solution. In support of the City Council’s Annual Priority of Advocating for Infrastruc- ture Improvement Funding, the City Council accepted the Infrastructure Fund- ing Update Report and began discussion on infrastructure funding gaps by category and prioritization of needs at its November 5, 2014 meeting. At that time, staff posed four recommended next steps for Council consideration and direction. Those steps were:

Current Needs $5.8 million annually

Street Maintenance

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Park Maintenance

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Landscape Assessment District Public Building Infra- structure

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CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET

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