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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
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
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.
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.