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CITY OF MORGAN HILL
CAPITAL IMPROVEMENT PROGRAM
2017-2022 Six-Year Capital Improvement Program
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653 - Water Capital Project
Fund Description
This fund was renamed and combined with the Water Capital Projects Fund. This fund was established to avoid
fluctuations in sewer rates by providing reserve funding for future system replacements. The initial contribution to this
fund was $2,550,000 from the Water Operations Fund. Future contributions will come from transfers from the
Operations Fund when available.
How this Fund Generates Money for Capital Investment
Funding comes from transfers from the Water Operations Fund when available. In May 2014, the City received $13
million of new financing from water revenue bond to be used to fund new projects. This fund pays 70% of debt service
payment for the water revenue bond, and 30% is paid out of the Water Impact Fund.
Limitations and Other Important Factors
The projects paid for through this fund are projects for the purpose of rehabilitation and replacement work for the
City's existing water system.
Goals for Capital Investment
The goals for this fund during this period consist of improvements to enhance system reliability and to take care of
existing system deficiencies by replacing deteriorated water main. Revenues-Other includes transfers from the Sewer
Operations Fund (650) for debt service payments. Expenditures-Other includes a portion of the debt service payments
for the 2014 Water Revenue Bonds.
Project List Summary
Projects
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
512093 - Underground Monterey
Utilities
$7,000
602000 - New Water Reservoirs
$2,040,000
$370,000
603000 - New Water Mains
$441,000
607000 - Booster Pump
Rehabilitation
$73,000
$1,100,000
608000 - Rehabilitate Water Wells
$580,000
$630,000
610000 - Water Main Replacement
$735,000
$735,000
$430,000
$1,100,000
620007 - Recoat Water
Reservoir/Tank
$200,000
623014 - Water Supply Planning
$200,000
$200,000
$200,000
625016 - Well Demolition and
Abandonment
$400,000
Totals
$3,141,000
$400,000
$935,000
$1,565,000
$1,000,000
$2,400,000