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CITY OF MORGAN HILL
CAPITAL IMPROVEMENT PROGRAM
2017-2022 Six-Year Capital Improvement Program
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308 - Street CIP
Fund Description
This fund was established effective July 1, 2007. The fund accounts for resources and requirements for capital projects
that support the City of Morgan Hills streets and roads. The fund has been separated from Street Operations, fund
202.The funds allocated, which are normally transfers from other revenue funds such as the Traffic Impact Fund 309,
and grant reimbursements, may be expended on new streets, traffic signals, and improvements of existing streets.
How this Fund Generates Money for Capital Investment
The funds allocated, which are normally transfers from other revenue funds such as the Traffic Impact Fund 309 and
grant reimbursements, may be expended on new streets, traffic signals, and improvements of existing streets. Since
2012, the City's Pavement Condition Index (PCI) has dropped from 76 to 67 and is now considered "at risk." The
General Fund contributes for street improvement projects increased from $750,000 to $1,000,000 annually in each of
the next three fiscal years, bringing the total estimated investment in the City's pavement rehabilitation and safety
program in the Biennial Budget to $4.0 million, including gas tax funds and a grant. However, unless new revenue
sources can be obtained in future years, the CIP includes a total of only $1.8 million (or $0.6 million each year) for fiscal
years 19-20 through 21-22.
Limitations and Other Important Factors
This fund does not independently generate any revenues. For the most part, the funds used for street-related work
have been primarily grants. Since grants are paid on a reimbursement basis: 1) the work is first completed, 2) a
reimbursement request is submitted, and 3) in approximately 60-90 days a reimbursement check is received. Because
award of a grant constitutes a "reimbursement promise" by the granting agency, it is not unusual for the process to
overlap fiscal years, the work might be completed in one fiscal year, and the reimbursement is received in the new
fiscal year.
Expenditures are only made on the assurance of funds to be received. Because Fund 308 has no income sources
beyond grants, it occasionally receives loans from another fund so that the grant application process can be initiated
(design work, renderings, studies, etc.). These loans are routinely repaid upon receipt of grant reimbursements for the
project.
Goals for Capital Investment
The goals during this period are to continue with the pavement rehabilitation program and the assessment district
streets.
Project List Summary
Projects
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
519000 - Pavement Rehabilitation
Program
$1,995,000
$1,345,000
$1,350,000
$605,000
$610,000
$610,000
563013 - Assessment District -
Streets
$705,000
Totals
$2,700,000
$1,345,000
$1,350,000
$605,000
$610,000
$610,000