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CITY OF MORGAN HILL
CAPITAL IMPROVEMENT PROGRAM
2017-2022 Six-Year Capital Improvement Program
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651 - Water Impact
Fund Description
The 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 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. Expenditures-Other includes a portion of the debt service payments for 2014 Water Revenue Bonds.
Project List Summary
Projects
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
601000 - New Well
Property/Construction
$1,963,000
$1,140,000
$90,000
602000 - New Water Reservoirs
$680,000
603000 - New Water Mains
$884,000
$200,000
$200,000
$200,000
$200,000
607000 - Booster Pump
Rehabilitation
$240,000
623014 - Water Supply Planning
$100,000
$100,000
$100,000
$50,000
$50,000
$50,000
Totals
$3,867,000
$100,000
$300,000
$1,390,000
$250,000
$340,000