Operating and CIP Budget Fiscal Year 2015-16

Major Revenue Assumptions (continued)

upon actual water usage. Total sewer revenues collected by the City are based on customer usage. FY 15-16 waste- water service fees are projected at $9.7 million, with total revenues at $9.9 million.

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

Water Operations Fund (650)

The Water Operations Fund receives revenues from user charges based on water usage. All expenditures for the operation of the water system, including maintenance and debt service, are charged to the Water Operations Fund. FY 15-16 incorporates the 2011 water rate study update that went into effect January 1, 2012: 16.5 percent increase on that date and 6.25 percent increase each of the next 4 years. The last rate increase is set to go into effect Janu- ary 1, 2016. The rate study was designed so that approximately 16 per- cent of the water operation revenue is fixed and collected through meter charges. The remaining 84 percent is vari- able revenue derived from water sales (commodity) charges. For FY 15-16 approximately 88 percent of total Water revenues are from water sales, with the remaining 12 percent from user account maintenance, meter installa- tions, and fire hydrant charges. Actual water revenue is dependent on customer usage. Due to the recent drought years, the City has adopted conservation measures which have reduced the amount of revenue from water sales. The Water Operations Fund is projected to collect $8.2 million in total revenues (minus transfers) for FY 15-16.

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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