2 Emphasis of Matter
Implementation of GASB 84
As discussed in Note 2V to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 84, Fiduciary Activities. The adoption of the standard resulted in the custodial funds reporting beginning fiduciary net position in the amount of $1,092,316, and governmental activities and governmental funds reporting net position prior period adjustment of $12,990. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits on pages 5 to 14 and 92 to 105 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, the Combining and Individual Nonmajor Fund Financial Statements, Additional Schedules, and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The Combining and Individual Nonmajor Fund Financial Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and the Statistical Sections, and Additional Schedules have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 4, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
January 4, 2022
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City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
5 The following discussion and analysis of the financial performance of the City of Gilroy provides an overview of the City’s financial activities for the fiscal year ended June 30, 2021 (FY21). Please read it in conjunction with the financial statements identified in the accompanying table of contents.
Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The government-wide Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
FINANCIAL HIGHLIGHTS
During FY21, the City’s overall net position, representing the difference between total assets plus deferred outflows of resources of the City, and total liabilities plus deferred inflows of resources, decreased by $3.2 million to $347.2 million. Of the total net position, $56.7 million, or about 17%, remains as unrestricted, and most of the remaining, about 67%, consists of net investment in capital assets. Additional detail can be found on the Statement of Net Position on page 18.
Total Citywide revenues were $103.0 million, $4.6 million better than FY20 primarily due to an increase in charges for services and operating grants and contributions.
Total citywide expenditures, excluding non-operating expenses, were $106.2 million, approximately $0.3 million more than FY20 primarily due to decreased spending in governmental activities of $4.7 million, offset by an increased spending in the business-type activities of $5.0 million from prior fiscal year.
As of June 30, 2021, the City’s governmental funds reported a combined ending fund balance of $77.9 million, an increase of 8%, or $5.9 million, from prior fiscal year.
The fund balance in the City’s General Fund increased by $4.8 million to $19.6 million, primarily due to increased revenues and conservation spending. During FY21, the General Fund had an excess of revenues over expenditures of $4.9 million, excluding transfers.
Actual revenues, excluding transfers, in the General Fund were $2.2 million less than the final budget, primarily due to lower than anticipated sales tax revenue, followed by a lower than expected permit revenue.
Actual expenditures, excluding transfers, in the General Fund were $3.6 million less than the final budget, as a result of personnel and operational savings across various departments. In addition, the City maintained its conservative spending practices during the fiscal year.
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
6 As of June 30, 2021, the City had $117.6 million in long-term debt. Of the total, governmental activities long-term debt portion is $59.7 million, consisting of $25.6 million general obligation bonds, and $33.3 million in lease revenue bonds, and a loan payable of $0.8 million. The remaining $57.9 million is for business-type activities – all sewer revenue bonds. During the year, the City issued new sewer revenue bonds, Series 2021A, in the amount of $47 million to finance the City’s share of the South County Regional Wastewater Authority’s sewer treatment plant expansion project.
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and a supplementary information section that presents combining statements for nonmajor governmental funds, internal service funds and fiduciary funds. The basic financial statements include two kinds of statements that present different views of the City:
The first two statements are government-wide financial statements that provide both long-term and short- term information about the City’s overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.
The governmental funds statements tell how general government services like public safety were financed in the short term as well as what remains for future spending.
Proprietary funds statements offer short-term and long-term financial information about the activities the government operates like businesses, such as the water and sewer system.
Fiduciary funds statements provide information about the fiduciary relationships – like the agency funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong.
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that provides additional financial and budgetary information.
Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
7 Figure A-1
Major Features of the City’s Government-wide and Fund Financial Statements ` Fund Statements
Government-wide
Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
Scope Entire City
government (except
fiduciary funds)
The activities of the
City that are not
proprietary or fiduciary
Activities the City
operates similar to
private businesses
Instances in which the
City is the trustee or
agent for someone
else’s resources
Required financial
statements
Statement of net
position
Statement of
activities
Balance sheet
Statement of
revenues,
expenditures and
changes in fund
balances
Statement of net
position
Statement of
revenues,
expenses and
changes net
position
Statement of cash
flows
Statement of
fiduciary net
position
Statement of
change in
fiduciary net
position
Accounting basis and
measurement focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and current
financial resources
focus
Accrual accounting
and economic
resources focus
Accrual accounting
and economic
resources focus
Type of asset/ liability
information
All assets, deferred
outflows of resources
and liabilities, both
financial and capital,
and short-term and
long-term
Only assets expected to
be used up and
liabilities and deferred
inflows of resources
that come due during
the year or soon
thereafter; no capital
assets or long-term
debt included
All assets, deferred
outflows of resources
and liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both short-
term and long-term;
the City’s fiduciary
funds do not currently
contain capital assets,
although they can
Type of inflow/
outflow information
All revenues and
expenses during year,
regardless of when
cash is received or paid
Revenues for which
cash is received during
or soon after the end of
the year; expenditures
when goods or services
have been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
8 Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. You can think of the City’s net position – the difference between assets, deferred inflows/outflows of resources and liabilities – as one way to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
Governmental activities - Most of the City’s basic services are reported here. Sales taxes, property taxes, and other revenues finance most of these activities.
Business-type activities - The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds.
Reporting the City’s Major Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money (such as grants received). The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.
Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the fund financial statements.
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
9 Proprietary funds - When the City charges customers for the services it provides - whether to outside customers or to other units of the City - these services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities.
Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Position and Changes in Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Figure 1: A summary of the government-wide statement of net position (in millions) follows:
2021 2020 2021 2020 2021 2020
Cash and investments $ 108.0 $ 95.3 $ 100.9 $ 44.5 $ 208.9 $ 139.8 Other Assets 11.3 10.6 70.3 73.7 81.6 84.3 Capital Assets 210.1 216.7 85.9 91.4 296.0 308.1 Total Assets 329.4 322.6 257.1 209.6 586.5 532.2 Deferred Outflows 14.8 13.7 2.9 2.5 17.7 16.2 Other Liabilities 21.1 13.7 3.8 3.7 24.9 17.4 Long term liabilities outstanding 155.6 151.4 73.5 20.6 229.1 172.0 Total Liabilities 176.7 165.1 77.3 24.3 254.0 189.4 Deferred Inflows 2.5 4.8 0.4 0.8 2.9 5.6 Net Position
Net investment in capital assets 149.9 151.9 83.1 86.5 233.0 238.4 Restricted 57.6 57.1 - - 57.6 57.1 Unrestricted (42.6) (42.6) 99.2 97.5 56.6 54.9 Total Net Position $ 164.9 $ 166.4 $ 182.3 $ 184.0 $ 347.2 $ 350.4 Governmental Activities Business-Type Activities Total
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
10 Figure 2: A summary of the government-wide statement of activities follows:
Changes in Net Position (In millions)
The increase or decrease in net position can provide an indication as to whether the overall position of the City improved or deteriorated during the year.
Governmental Activities: Figure 1 – Statement of Net Position illustrates the total net position decreased by $1.5 million compared to the prior year, primarily in net investment in capital assets. Total asset’s increased by $6.8 million primarily in the cash and investment category, offset by an increase in total liabilities attributable to pension and OPEB liabilities. Figure 2 – Statement of Activities illustrates the program level revenues and expenditures for the fiscal year. Total revenues for governmental activities were $75.1 million, or about 8%, higher compared to the prior year primarily in the areas of charges for services and operating grant and contributions. Total expenditures for governmental activities were $76.0 million, or about 6%, less compared to the prior year, notably due to decreased spending in public works program.
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for services 12.1$ 9.4$ 27.5$ 27.5$ 39.6$ 36.9$ Operating grants and contributions 16.5 14.2 - - 16.5 14.2 Capital grants and contributions 2.0 1.9 2.5 2.4 4.5 4.3 General revenues:
Taxes 43.4 41.6 - - 43.4 41.6 Investment income (loss)0.5 2.0 (0.1) - 0.4 2.0 Miscellaneous 0.6 0.2 - 1.2 0.6 1.4 Share of DCU net loss (sewer)- - (2.0) (2.1) (2.0) (2.1) Total revenues 75.1 69.3 27.9 29.0 103.0 98.3 Expenses:
General government 7.3 6.1 - - 7.3 6.1 Public safety 40.8 40.1 - - 40.8 40.1 Public works 16.9 23.5 - - 16.9 23.5 Community development 7.1 8.6 - - 7.1 8.6 Recreation services 1.8 - - - 1.8 - Interest expense 2.1 2.4 - - 2.1 2.4 Water - - 16.4 12.6 16.4 12.6 Sewer - - 13.8 12.6 13.8 12.6 Total expenses 76.0 80.7 30.2 25.2 106.2 105.9 Change in net position
before transfers (0.9) (11.4) (2.3) 3.8 (3.2) (7.6) Transfers (0.6) (0.4) 0.6 0.4 - - Change in net position (1.5) (11.8) (1.7) 4.2 (3.2) (7.6) Net position, beginning of year (as restated)166.4 178.2 184.0 179.8 350.4 358.0 Net position, end of year 164.9$ 166.4$ 182.3$ 184.0$ 347.2$ 350.4$ Business-type Activities TotalGovernmental Activities
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
11 Business-type Activities: Figure 1 – Statement of Net Position illustrates the total net position for business-type activities decreased by $1.7 million compared to the prior year, primarily in the unrestricted net position. Total assets increased by $47.5 million notably in the cash and investment category, offset by an increase in the long-term liabilities due to the issuance of the sewer revenue bonds, series 2021, during the fiscal year. Figure 2 - Statement of Activities illustrates the total revenues for business-type activities were $27.9 million, excluding transfers, a decrease of $1.1 million from prior year, due to lower interest earnings. Total expenditures for business-type activities were $30.2 million, about $5.0 million higher than prior year, due to increased expenditures in water and sewer enterprise.
The last rate increases for both utilities were implemented in fiscal year 2019. On October 19, 2021, Governor Gavin Newsom declared a drought emergency across the state, urging residents to conserve water. The measures are expected to have an impact to the water sales revenue, requiring a review of the current rate structure to ensure the utilities are not adversely impacted in their operations and to ensure the health and safety of both systems.
MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements.
Major Governmental Funds. The General Fund is the chief operating fund of the City. The City combines its Sidewalk Repair, Library Reserve, Golf Course and Community Recreation special revenue funds with the City’s General Fund for financial statement presentation as required under GASB 54 as they are subsidized by the general fund. At the end of FY21, the total fund balance of the general fund (as presented in the aforementioned manner) was $19.6 million.
Revenues increased between the years ended June 30, 2020 and June 30, 2021 primarily as a result of increased property tax revenue, and charges for services in the areas of plan check and inspection fees and building permits.
During FY21, the City continued to see economic recovery from the covid-19 pandemic induced recession.
The Public Facilities Impact Capital Projects Fund has a total fund deficit of $5.4 million. The fund balance improved by $1.0 million by a combination of increased impact fee revenue from several major development projects, notably in the residential multi-family category, and decreased expenditures, notably in capital outlay category. In February 2008, this fund borrowed $13.7 million from several funds for the purchase of Gilroy Gardens.
See Note 3, in the Notes to the Basic Financial Statements for additional information. The balance outstanding at June 30, 2021 is $6.3 million.
Major Enterprise Funds. Unrestricted net position of the Sewer Fund at the end of the year amounted to $78.5 million and for the Water Fund amounted to $20.7 million.
GENERAL FUND
The final budgeted operating revenues of the General Fund were $58.1 million. The actual operating revenues of the General Fund were $55.9 million, $2.2 million less than the final budget, primarily due to lower than expected sales tax and permit revenue received as a result of the ongoing pandemic and related measures enacted at the state and county level.
The final budgeted operating expenditures of the General Fund were $54.6 million. The actual operating expenditures of the General Fund were $51.0 million, approximately $3.6 million less than the final budget. The difference is primarily due to savings in personnel and operational expenditures in various programs.
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
12 In June 2017, the City Council adopted a new general fund reserve policy that consisted of (i) an unrestricted General Fund Reserve of 20% of general fund expenditures and (ii) an Economic Stability Reserve of 10% of general fund expenditures that is intended to help the City weather a severe economic crisis. The following table summarizes the adopted general fund reserve policy:
The Economic Stability Reserve shall only be used in extraordinary circumstances, upon satisfaction of one of the following “economic triggers” and with the majority vote of the City Council:
State take-away of significant revenue
Large drop in property taxes (decrease in assessed valuations)
Major business closures (sales tax and/or utility users’ tax impact)
Dramatic drop in development from projections
Large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession
The economic triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g. 20%).
When the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next biennial budget to 10% of the general fund expenditures for the given year.
For FY21, the City enacted numerous expenditure adjustments to minimize the use of the City’s Unrestricted General Fund Reserve. At the start of the fiscal year, the City expected to utilize the entire Economic Stability Reserve (ESR).
During the year, various economic stimuli were enacted by the federal government to trigger an economic recovery.
The City received $5.5 million from the American Rescue Plan Act (ARPA) funding which has been recorded as unearned revenue at June 30, 2021, and is programmed to be expended during FY 22. At June 30, 2021, the City had replenished the ESR and exceeded the total minimum combined (30%) fund balance required by the Council policy.
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
13 CAPITAL ASSETS
The net decrease to capital assets, for both activities, during the year ended June 30, 2021 was due to depreciation expense.
Additional information on the City’s capital assets can be found in the Notes 1(i) and 5 to the Basic Financial Statements.
LONG-TERM DEBT
As of June 30, 2021, the City’s governmental activities had bonded debt outstanding of $59.7 million, including unamortized premium. Of this amount, $25.6 million represents general obligation bonds secured solely by specified revenue sources, $33.3 million represents lease refunding revenue bonds, and $0.8 million represents streetlights related loan payable.
As of June 30, 2021, the City’s business-type activities had $57.9 million bonded debt outstanding, consisting of $6.0 million of unamortized premium, $4.8 million of 2010 wastewater revenue refunding bonds, and the newly issued 2021 wastewater revenue bonds of $47.1 million.
See Note 8 in the Notes to the Basic Financial Statements for a further discussion.
2021 2020 2021 2020 2021 2020
Land $ 21.3 $ 21.3 $ - $ - $ 21.3 $ 21.3 Construction in progress 7.3 8.8 0.1 7.6 7.4 16.4 Buildings and structures 78.6 77.8 - - 78.6 77.8
96.2 101.4 85.8 83.8 182.0 185.2 Furniture and equipment 6.7 7.4 - 6.7 7.4 Total $ 210.1 $ 216.7 $ 85.9 $ 91.4 $ 296.0 $ 308.1 Infrastructure/water and sewer
mains and lines
(in millions)
Governmental activities Business-type activities Total
2021 2020
Governmental Acitities:
Loan Payable 0.8$ 0.9$
General Obligation Bonds 25.6 26.6
Refunding Lease Revenue Bonds 33.3 36.7
Total Governmental Activities 59.7 64.2
Business-Type Acitivities
Revenue Bonds 57.9 7.5
Total Business-Type Activities 57.9 7.5
Total Long-Term Debt 117.57$ 71.74$
City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
14 Budgetary Highlights
See the Required Supplementary Information in the City’s financial statements for a comparison of the City’s budgeted revenues and expenditures to actual revenues and expenditures. When preparing its budget, the City projects its revenues using realistic, but conservative methods so as to budget its expenditure appropriations in a prudent manner.
As previously noted, the City has two unrestricted reserve levels – the Unrestricted General Fund Reserves and the Economic Stability Reserve, the latter being partially utilized during FY21. The City continues its conservative spending measures to ensure the long-term fiscal sustainability.
In addition, the City continued economic incentive transfers from the general fund to the impact funds, to make these funds whole for the previously granted incentives.
Economic Factors and Fiscal Year 21 Budgets
On March 13, 2020 the City ceased in-person operations as a results of the Santa Clara County (SCC) Public Health “Stay-At-Home” order which also closed most of the City’s businesses to in-person activity through FY21. Although the pandemic is still ongoing, during FY21, the City experienced economic recovery as a result of federal stimulus funding made available for both the general public and municipalities across the nation to support the economy.
The City has always taken a conservative approach in its spending in order to maintain a balanced budget – for and on behalf of the community – and will continue to be financially prudent during the current biennial budget.
The City regularly reviews its revenues and expenditures and reports to the City Council to keep both the Council and the residents apprised of its current fiscal health and to ensure the adequate protection of the City’s financial resources.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director’s Office, at the City of Gilroy, 7351 Rosanna Street, Gilroy, California 95020.
BASIC FINANCIAL STATEMENTS
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16 GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
ASSETS
Current assets:
Cash and investments 105,132,693$ 45,781,461$ 150,914,154$ 8,893,106$ Cash and investments with fiscal agent 2,920,291 55,108,183 58,028,474 - Accounts receivable, net 96,385 3,699,027 3,795,412 173,167 Due from other governments 6,218,455 - 6,218,455 1,064,783 Inventory 91,449 310,497 401,946 - Prepaid items 12,084 - 12,084 - Interest receivable 883,652 - 883,652 - Loans receivable 3,214,755 - 3,214,755 - Due from primary government - - - 1,542,021 Due from DCU - 843,753 843,753 - Total current assets 118,569,764 105,742,921 224,312,685 11,673,077 Noncurrent assets:
Land held for resale 706,754 - 706,754 - Equity investment in DCU (Note 7) - 65,461,335 65,461,335 - Capital assets - nondepreciable 28,622,389 108,139 28,730,528 27,811,293 Capital assets - depreciable, net 181,496,340 85,807,075 267,303,415 67,233,724 Total noncurrent assets 210,825,483 151,376,549 362,202,032 95,045,017 Total assets 329,395,247 257,119,470 586,514,717 106,718,094
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 62,127 62,127 - Deferred outflows of resources related to pensions 11,692,359 2,167,877 13,860,236 - Deferred outflows of resources related to OPEB 3,067,255 645,679 3,712,934 - Total deferred outflows of resources 14,759,614 2,875,683 17,635,297 - Primary Government
City of Gilroy
Statement of Net Position
June 30, 2021
See accompanying Notes to the Basic Financial Statements 18 Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
LIABILITIES
Current liabilities:
Accounts payable 2,824,374$ 582,185$ 3,406,559$ 796,324$ Accrued payroll and benefits 3,055,053 317,058 3,372,111 50,351 Deposits payable 2,852,473 20,745 2,873,218 - Interest payable 483,917 100,417 584,334 - Unearned revenues 6,256,473 - 6,256,473 - Due to DCU 1,132,239 409,782 1,542,021 - Due to the primary government - - - 843,753 Compensated absences, due within one year 249,279 25,000 274,279 - Claims payable, due within one year 1,440,000 - 1,440,000 - Long-term debt, due within one year 2,820,129 2,380,000 5,200,129 - Total current liabilities 21,113,937 3,835,187 24,949,124 1,690,428 Noncurrent liabilities:
Compensated absences, due in more than one year 1,689,365 226,670 1,916,035 20,159 Claims payable, due in more than one year 4,918,812 - 4,918,812 - Long-term debt, due in more than one year 56,923,115 55,485,509 112,408,624 - Aggregate net pension liabilities 76,563,531 14,486,977 91,050,508 - Net OPEB liabilities 15,490,865 3,260,939 18,751,804 - Total noncurrent liabilities 155,585,688 73,460,095 229,045,783 20,159 Total liabilities 176,699,625 77,295,282 253,994,907 1,710,587
DEFERRED INFLOWS OF RESOURCES
Deferred pension-related items 724,406 - 724,406 - Deferred OPEB-related items 1,814,525 381,971 2,196,496 - Total deferred inflows of resources 2,538,931 381,971 2,920,902 -
NET POSITION
Net investment in capital assets 149,891,568 83,119,598 233,011,166 95,045,017 Restricted for:
Nonspendable:
Minority interest of DCU (Note 7) - - - 44,103,153 Spendable:
Public safety 459,026 - 459,026 - Community development 9,183,217 - 9,183,217 - Public works 45,663,391 - 45,663,391 - Debt service 2,264,934 - 2,264,934 - Total restricted 57,570,568 - 57,570,568 44,103,153 Unrestricted (deficit) (42,545,831) 99,198,302 56,652,471 (34,140,663) Total net position 164,916,305$ 182,317,900$ 347,234,205$ 105,007,507$ June 30, 2021
Statement of Net Position (Continued)
City of Gilroy
Primary Government
See accompanying Notes to the Basic Financial Statements 19 Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government 7,315,868$ 2,815,647$ -$ -$ Public safety 40,797,962 1,242,281 665,683 - Community development 7,147,532 4,185,811 1,321,563 1,937,064 Public works 16,862,660 3,593,959 14,495,658 63,293 Recreation services 1,779,121 223,154 - - Interest 2,081,420 - - - Total Governmental Activities 75,984,563 12,060,852 16,482,904 2,000,357 Business-Type Activities:
Sewer 15,820,944 12,702,398 - 1,894,350 Water 16,435,598 14,830,153 - 616,709 Total Business-Type Activities 32,256,542 27,532,551 - 2,511,059 Total Primary Government 108,241,105$ 39,593,403$ 16,482,904$ 4,511,416$ Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority 13,711,342$ 13,483,246$ -$ -$ City of Gilroy
Statement of Activities
For the Year Ended June 30, 2021
Program Revenues
See accompanying Notes to the Basic Financial Statements 20 Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government (4,500,221)$ -$ (4,500,221)$ -$ Public safety (38,889,998) - (38,889,998) - Community development 296,906 - 296,906 - Public works 1,290,250 - 1,290,250 - Recreation services (1,555,967) - (1,555,967) - Interest (2,081,420) - (2,081,420) - Total Governmental Activities (45,440,450) - (45,440,450) - Business-Type Activities:
Sewer - (1,224,196) (1,224,196) - Water - (988,736) (988,736) - Total Business-Type Activities - (2,212,932) (2,212,932) - Total Primary Government (45,440,450) (2,212,932) (47,653,382) - Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority - - - (228,096) General Revenues:
Taxes:
Property taxes 17,016,855 - 17,016,855 - Sales taxes 18,584,534 - 18,584,534 - Transient occupancy taxes 1,105,300 - 1,105,300 - Franchise taxes 1,732,613 - 1,732,613 - Utility users tax 4,400,681 - 4,400,681 - Real property transfer taxes 629,472 - 629,472 - Investment earnings 502,770 (157,277) 345,493 - Miscellaneous 644,291 - 644,291 - Transfers (641,121) 641,121 - Total General Revenues 43,975,395 483,844 44,459,239 - Changes in Net Position (1,465,055) (1,729,088) (3,194,143) (228,096) Net Position - Beginning, as restated (Note 16)166,381,360 184,046,988 350,428,348 105,235,603 Net Position - Ending 164,916,305$ 182,317,900$ 347,234,205$ 105,007,507$ Net (Expense) Revenue and Changes in Net Position
City of Gilroy
Statement of Activities (Continued)
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements 21 This page intentionally left blank.
22 FUND FINANCIAL STATEMENTS
23 This page intentionally left blank.
24 GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 This page intentionally left blank.
26 Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
ASSETS
Cash and investments 25,208,601$ 861,563$ 59,129,272$ 85,199,436$ Receivables:
Accounts 44,752 - 34,381 79,133 Due from other governments 5,881,343 - 337,112 6,218,455 Interest 110,116 - 773,536 883,652 Loans - - 3,214,755 3,214,755 Advances from other funds - - 2,366,705 2,366,705 Inventory 47,874 - - 47,874 Land held for resale - - 706,754 706,754 Restricted assets:
Cash and investments with fiscal agents - - 920,291 920,291 Total assets 31,292,686$ 861,563$ 67,482,806$ 99,637,055$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 540,322$ 1,304$ 1,499,919$ 2,041,545$ Accrued liabilities 2,283,839 - 187,139 2,470,978 Deposits payable 2,817,174 - 35,299 2,852,473 Unearned revenue 6,018,108 - 238,365 6,256,473 Advances to other funds - 6,257,747 - 6,257,747 Due to the component unit - - 1,132,239 1,132,239 Total liabilities 11,659,443 6,259,051 3,092,961 21,011,455 Deferred inflows of resources:
Unavailable revenues - - 722,123 722,123 Total deferred inflows of resources - - 722,123 722,123 Fund balances:
Nonspendable 47,874 - - 47,874 Restricted - - 58,391,239 58,391,239 Assigned - - 5,276,537 5,276,537 Unassigned (deficit)19,585,369 (5,397,488) (54) 14,187,827 Total fund balances 19,633,243 (5,397,488) 63,667,722 77,903,477 Total liabilities, deferred inflows
of resources, and fund balances 31,292,686$ 861,563$ 67,482,806$ 99,637,055$ City of Gilroy
Balance Sheet
June 30, 2021
Governmental Funds
See accompanying Notes to the Basic Financial Statements 27 Total Fund Balances - Total Governmental Funds 77,903,477$ Nondepreciable, net of $1,758,826 reported in Internal Service Fund 26,863,563$ Depreciable, net of $4,628,891 reported in Internal Service Fund 176,867,449 203,731,012 Bonds payable (55,799,646)$
Premium on bonds payable (3,177,681)
Loans payable (765,917)
Interest payable (483,917)
Compensated absences, net of $91,484 reported in Internal Service Fund (1,847,160) (62,074,321) Pension related deferred outflows of resources 11,692,359$ Aggregate net pension liability (76,563,531)
Pension related deferred inflows of resources (724,406) (65,595,578) OPEB related deferred outflows of resources 3,067,255$
Aggregate net OPEB liability (15,490,865)
OPEB related deferred inflows of resources (1,814,525) (14,238,135) 722,123
24,467,727
Net Position of Governmental Activities 164,916,305$
City of Gilroy
Reconciliation of the Governmental Funds Balance Sheet to the June 30, 2021
Government-Wide Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-Wide Statement of Net Position.
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and, therefore, the revenue is recognized when eligibility requirements are met and earned.
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:
See accompanying Notes to the Basic Financial Statements 28 Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
Revenues:
Taxes 43,223,009$ -$ 2,693,488$ 45,916,497$ Intergovernmental 244,556 - 6,367,718 6,612,274 Charges for services 7,947,218 4,325,852 5,211,797 17,484,867 Licenses and permits 2,278,304 - - 2,278,304 Fines and forfeitures 231,688 - - 231,688 Investment income (loss)(25,861) 4,624 379,689 358,452 Miscellaneous 1,979,322 281,104 606,843 2,867,269 Total revenues 55,878,236 4,611,580 15,259,535 75,749,351 Expenditures:
Current:
General government 5,696,954 - 234,068 5,931,022 Public safety 34,888,755 - 967,428 35,856,183 Recreation services 1,702,666 - - 1,702,666 Community development 3,990,556 - 1,533,356 5,523,912 Public works 4,534,371 8,429
2,688,922 7,231,722
Capital outlay 213,465
- 6,029,592 6,243,057 Debt service:
Principal retirement - - 2,817,325 2,817,325 Interest and fiscal charges - 91,343 2,693,031 2,784,374 Total expenditures 51,026,767 99,772 16,963,722 68,090,261 Revenues over (under)
expenditures 4,851,469 4,511,808 (1,704,187) 7,659,090 Other financing sources (uses):
Issuance of debt - - 16,459,825 16,459,825 Payment to refunded bond escrow - - (17,555,000) (17,555,000) Transfers in 334,031 40,763 23,931,305 24,306,099 Transfers out (397,146) (3,591,375) (20,965,283) (24,953,804) Total other financing sources (uses)(63,115) (3,550,612) 1,870,847 (1,742,880) Net Change in Fund Balances 4,788,354 961,196 166,660 5,916,210 Fund balances:
Beginning of year, as restated (note 16) 14,844,889 (6,358,684) 63,501,062 71,987,267 End of year 19,633,243$ (5,397,488)$ 63,667,722$ 77,903,477$ City of Gilroy
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements 29 Net Change in Fund Balances - Total Governmental Funds 5,916,210$ Capital outlay, net of $1,121,175 in Internal Service Fund and $1,877,390 which was expensed 4,365,667$
Depreciation, net of $707,518 in Internal Service Funds (10,882,545) Net effect on disposal of capital assets (525,457) (7,042,335) 46,153
(16,459,825)
Bonds payable - scheduled debt service 2,725,813$
Bonds payable - refunded debt service 17,555,000
Loans payable 91,512 20,372,325
157,592
545,362
19,497
(2,287,597)
(682,770)
(2,049,667)
Change in Net Position of Governmental Activities (1,465,055)$
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.
Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the Statement of Activities.
Amortization of bond discount was recognized in interest expense on the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an expenditure in the governmental funds.
Proceeds from the issuance of long-term debt is not a revenue in the Statement of Activities, but is reported as a liability on the Government-Wide Statement of Net Position.
Principal repayment on long-term debt is not an expense in the Statement of Activities, but is considered an expenditure in governmental funds.
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.
Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds.
Governmental activities in the Statement of Activities were reported differently because:
City of Gilroy
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes For the Year Ended June 30, 2021
in Fund Balances to the Government-Wide Statement of Activities See accompanying Notes to the Basic Financial Statements 30 PROPRIETARY FUND FINANCIAL STATEMENTS
31 Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
ASSETS
Current assets:
Cash and investments 18,837,132$ 26,944,329$ 45,781,461$ 19,933,257$ Cash and investments with fiscal agent 55,108,183 - 55,108,183 2,000,000 Accounts Receivable 1,757,205 1,941,822 3,699,027 17,252 Inventory - 310,497 310,497 43,575 Prepaid items - - - 12,084 Due from DCU 843,753 - 843,753 - Total current assets 76,546,273 29,196,648 105,742,921 22,006,168 Noncurrent assets:
Advances to other funds (Note 3) - - - 3,891,042 Equity investment in DCU (Note 7) 65,461,335 - 65,461,335 - Capital assets:
Capital assets, not depreciated - 108,139 108,139 1,758,826 Capital assets, depreciated, net 31,611,884 54,195,191 85,807,075 4,628,891 Total noncurrent assets 97,073,219 54,303,330 151,376,549 10,278,759 Total assets 173,619,492 83,499,978 257,119,470 32,284,927
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 62,127 - 62,127 - Deferred outflows of resources related to pension 1,116,886 1,050,991 2,167,877 - Deferred outflows of resources related to OPEB 293,693 351,986 645,679 - Total deferred outflows of resources 1,472,706 1,402,977 2,875,683 - June 30, 2021
Proprietary Funds
Statement of Net Position
City of Gilroy
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 32 Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
LIABILITIES
Current liabilities:
Accounts payable 42,697 539,488 582,185 782,829 Accrued liabilities 150,400 166,658 317,058 584,075 Deposits payable - 20,745 20,745 - Interest payable 100,417 - 100,417 - Due to DCU 409,782 - 409,782 - Compensated absences, current portion 11,000 14,000 25,000 9,100 Claims payable, current portion - - - 1,440,000 Bond payable, current portion 2,380,000 - 2,380,000 - Total current liabilities 3,094,296 740,891 3,835,187 2,816,004 Noncurrent liabilities:
Compensated absences 95,780 130,890 226,670 82,384 Claims payable - - - 4,918,812 Bond payable 55,485,509 - 55,485,509 - Net pension liability 7,463,661 7,023,316 14,486,977 - Net OPEB liability 1,483,268 1,777,671 3,260,939 - Total noncurrent liabilities 64,528,218 8,931,877 73,460,095 5,001,196 Total liabilities 67,622,514 9,672,768 77,295,282 7,817,200
DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources related to OPEB 173,743 208,228 381,971 - Total deferred inflows of resources 173,743 208,228 381,971 -
NET POSITION
Net investment in capital assets 28,816,268 54,303,330 83,119,598 6,387,717 Unrestricted 78,479,673 20,718,629 99,198,302 18,080,010 Total net position 107,295,941$ 75,021,959$ 182,317,900$ 24,467,727$ City of Gilroy
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 33 This page intentionally left blank.
34 Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
OPERATING REVENUES:
Charges for services 12,702,398$ 14,815,350$ 27,517,748$ 26,583,342$ Miscellaneous - 14,803 14,803 1,628,614 TOTAL OPERATING REVENUES 12,702,398 14,830,153 27,532,551 28,211,956 OPERATING EXPENSES:
Operations 10,853,866 13,589,177 24,443,043 24,180,510 Depreciation 1,505,087 1,368,486 2,873,573 707,518 Billing 678,651 678,571 1,357,222 - Administration 720,726 799,364 1,520,090 282,999 Claims and judgments - - - 3,777,857 Insurance premiums - - - 1,463,945 TOTAL OPERATING EXPENSES 13,758,330 16,435,598 30,193,928 30,412,829 OPERATING INCOME (LOSS)(1,055,932) (1,605,445) (2,661,377) (2,200,873) NONOPERATING REVENUES (EXPENSES):
Investment income (loss) (29,535) (127,742) (157,277) 144,622 Interest expense (79,785) - (79,785) - Share of DCU net loss (1,982,829) - (1,982,829) - Total Nonoperating Income (Loss)(2,092,149) (127,742) (2,219,891) 144,622
NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (3,148,081) (1,733,187) (4,881,268) (2,056,251) TRANSFERS:
Transfers in (Note 3) 692,874 - 692,874 6,584 Transfers out (Note 3) - (51,753) (51,753) - Capital contributions 1,894,350 616,709 2,511,059 -
TOTAL TRANSFERS AND
CAPITAL CONTRIBUTIONS 2,587,224 564,956 3,152,180 6,584 CHANGES IN NET POSITION (560,857) (1,168,231) (1,729,088) (2,049,667) NET POSITION:
Beginning of the year 107,856,798 76,190,190 184,046,988 26,517,394 End of the year 107,295,941$ 75,021,959$ 182,317,900$ 24,467,727$ Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position City of Gilroy
Business-Type Activities
For the Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements 35 Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 12,630,231$ 14,806,003$ 27,436,234$ 28,227,904$ Cash paid to suppliers for goods and services (8,450,384) (11,026,870) (19,477,254) (22,582,480) Cash paid to employees for services (2,889,586) (3,137,945) (6,027,531) (1,864,715) Cash paid for insurance claims - - - (2,505,435) Net Cash Provided by (Used in) Operating Activities 1,290,261 641,188 1,931,449 1,275,274
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 692,874 (51,753) 641,121 354,073 Net Cash Provided by (Used in) Noncapital Financing Activities 692,874 (51,753) 641,121 354,073
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from issuance of debt 52,702,750 - 52,702,750 - Acquisition of capital assets 1,894,350 3,235,003 5,129,353 (1,121,175) Principal paid (2,150,000) - (2,150,000) - Interest paid (297,499) - (297,499) - Net Cash (Used in) Capital and Related
Financing Activities 52,149,601 3,235,003 55,384,604 (1,121,175) CASH FLOWS FROM INVESTING ACTIVITIES:
Capital contributions to DCU (1,433,612) - (1,433,612) - Interest received (29,535) (127,742) (157,277) 144,622 Net Cash Provided by Investing Activities (1,463,147) (127,742) (1,590,889) 144,622 Net Change In Cash and Cash Equivalents 52,669,589 3,696,696 56,366,285 652,794 CASH AND CASH EQUIVALENTS:
Beginning of year 21,275,726 23,247,633 44,523,359 21,280,463 End of year 73,945,315$ 26,944,329$ 100,889,644$ 21,933,257$ CASH AND CASH EQUIVALENTS:
Cash and investments 18,837,132$ 26,944,329$ 45,781,461$ 19,933,257$ Cash and investments with fiscal agent 55,108,183 - 55,108,183 2,000,000 Total cash and cash equivalents 73,945,315$ 26,944,329$ 100,889,644$ 21,933,257$ City of Gilroy
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2021
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 36 Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:
Operating income (loss) (1,055,932)$ (1,605,445)$ (2,661,377)$ (2,200,873)$ Adjustments to reconcile to net cash provided by
Operating activities:
Depreciation 1,505,087 1,368,486 2,873,573 707,518 Noncapital financing activities:
Share of DCU net loss (549,217) - (549,217) - Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (72,167) 12,775 (59,392) 15,948 (Increase)/decrease in inventory of materials - 160,074 160,074 (4,602) (Increase)/decrease in prepaid items - - - 80,160 (Increase)/decrease in due from DCU 200,614 - 200,614 - (Increase)/decrease in investment in DCU 88,478 - 88,478 - (Increase)/decrease in deferred outflows of resources
related to pension 99 4,839 4,938 - (Increase)/decrease in deferred outflows of resources
related to OPEB (217,035) (260,113) (477,148) - Increase/(decrease) in accounts payable (10,058) (169,453) (179,511) 121,784 Increase/(decrease) in accrued liabilities (20,716) 8,089 (12,627) (152,513) Increase/(decrease) in deposits payable - (36,925) (36,925) - Increase/(decrease) in due to DCU 260,125 - 260,125 - Increase/(decrease) in compensated absences (20,276) 2,469 (17,807) (28,515) Increase/(decrease) in claims payable - - - 2,736,367 Increase/(decrease) in net pension liabilities 1,043,840 954,982 1,998,822 - Increase/(decrease) in net OPEB liabilities 328,835 394,103 722,938 - Increase/(decrease) in deferred inflows of resources (144,993) (137,055) (282,048) - Increase/(decrease) in deferred inflows of resources
related to OPEB (46,423) (55,638) (102,061) - Net Cash Provided by Operating Activities 1,290,261$ 641,188$ 1,931,449$ 1,275,274$ Noncash Financing, capital or Investing activities:
City share of DCU net loss (1,982,829)$ -$ -$ -$ Capital asset contributions 1,894,350$ 616,709$ 2,511,059$ -$ City of Gilroy
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2021
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 37 This page intentionally left blank.
38 FIDUCIARY FUND FINANCIAL STATEMENTS
39 This page intentionally left blank.
40 Custodial
Funds
ASSETS
Cash and investments 816,428$
Cash and investments with fiscal agent 290,613
Total assets 1,107,041
NET POSITION
Restricted For:
Individuals, organizations and other governments 1,107,041 Total net position 1,107,041$
June 30, 2021
Statement of Fiduciary Net Position
City of Gilroy
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements 41 Custodial
Funds
REVENUES:
Taxes 920,975$
Investment income 995
Total revenues 921,970
EXPENDITURES:
General administration 27,042
Payments on conduit bonds - principal 651,251
Payments on conduit bonds - interest 228,952
Total expenditures 907,245
CHANGE IN NET POSITION 14,725
NET POSITION:
Beginning of year, as restated (Note 16)1,092,316
End of year 1,107,041$
City of Gilroy
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements 42 43
NOTES TO THE BASIC FINANCIAL STATEMENTS
44 This page intentionally left blank.
City of Gilroy
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
45 Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 47
A. Description of the Reporting Entity ............................................................................................... 47 B. Basis of Accounting and Measurement Focus ............................................................................... 48 C. Cash and Investments ..................................................................................................................... 50 D. Interfund Loans Receivable and Payable ....................................................................................... 51 E. Accounts and Due from Other Governments ................................................................................. 51 F. Loans Receivable ........................................................................................................................... 51 G. Inventories ...................................................................................................................................... 52 H. Land Held for Resale...................................................................................................................... 52 I. Capital Assets ................................................................................................................................. 52 J. Deferred Outflows/Inflows of Resources ....................................................................................... 52 K. Interest Payable .............................................................................................................................. 53 L. Unearned Revenue ......................................................................................................................... 53 M. Compensated Absences .................................................................................................................. 53 N. Net Pension Liability ...................................................................................................................... 53 O. Other Postemployment Benefits Liability ...................................................................................... 54 P. Claims Payable ............................................................................................................................... 54 Q. Net Position .................................................................................................................................... 54 R. Fund Balances ................................................................................................................................ 54 S. Spending Policy ............................................................................................................................. 55 T. Property Taxes ............................................................................................................................... 56 U. Use of Estimates ............................................................................................................................. 56 V. Implementation of New GASB Pronouncements .......................................................................... 57
Note 2 – Stewardship, Compliance and Accountability ................................................................................... 57
A. Encumbrances ................................................................................................................................ 57 B. Continuing Appropriations ............................................................................................................. 57 C. Deficit Fund Balances/Net Position ............................................................................................... 58 D. Excess of Expenditure Over Appropriations .................................................................................. 58
Note 3 – Cash and Investments .......................................................................................................................... 58
A. Demand Deposits ........................................................................................................................... 59 B. Investments Authorized by the California Government Code and the City's Investment Policy ................................................................................................................. 60 C. Fair Value Measurements ............................................................................................................... 60 D. Disclosures Relating to Interest Rate Risk ..................................................................................... 61 E. Disclosures Relating to Credit Risk ............................................................................................... 61 F. Concentration of Credit Risk .......................................................................................................... 61 G. Custodial Credit Risk ..................................................................................................................... 61 H. Investment in State Investment Pool .............................................................................................. 62 I. Investment Agreement ................................................................................................................... 62
Note 4 – Loans Receivable .................................................................................................................................. 63
City of Gilroy
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
46 Page
Note 5 – Interfund Transactions ........................................................................................................................ 63
A. Advances to/from Other Funds ........................................................................................................ 63 B. Transfers ........................................................................................................................................... 64 C. Due to/from Component Unit .......................................................................................................... 64
Note 6 – Capital Assets ........................................................................................................................................ 65
Note 7 – Equity Investment in Discretely Presented Component Unit ........................................................... 67
Note 8 – Deferred Compensation ........................................................................................................................ 68
Note 9 – Long-Term Liabilities ........................................................................................................................... 68
A. Governmental Activities ................................................................................................................. 68 B. Business-Type Activities ................................................................................................................. 72 C. Debt without Government Commitment ......................................................................................... 74
Note 10 – Defined Benefit Pension Plans (CalPERS) ........................................................................................ 75
A. Summary ......................................................................................................................................... 75 B. General Information about the Pension Plans ................................................................................. 76 C. Net Pension Liability ....................................................................................................................... 78 D. Changes in the Net Pension Liability .............................................................................................. 80 E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions .................... 81
Note 11 – Other Postemployment Healthcare Plan ........................................................................................... 82
Note 12 – Claims Payable .................................................................................................................................... 86
Note 13 – Risk Management................................................................................................................................ 86
Note 14 – Commitments and Contingencies ...................................................................................................... 87
Note 15 – Classification of Fund Balances ......................................................................................................... 88
Note 16 – Prior Period Adjustments ................................................................................................................... 89
Note 17 – Subsequent Events .............................................................................................................................. 90
City of Gilroy
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
47 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Gilroy, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies.
The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:
A. Description of the Reporting Entity
The City was incorporated in 1870 under the general laws of the State of California and became a charter city on January 8, 1960. The City operates under the Council-Administrator form of government. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the organization is able to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.
The Gilroy Public Facilities Financing Authority is considered to be a blended component unit of the reporting entity of the City because its sole purpose is to finance and construct the City’s public facilities. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported within the funds of the primary government. The Gilroy Public Facilities Financing Authority does not issue separate component unit financial statements.
Discretely Presented Component Unit (“DCU”)
The South County Regional Wastewater Authority (“Authority”) was created on July 1, 1992 by the City of Gilroy and City of Morgan Hill (“Member Agencies”). The purpose of the Authority is to plan and implement regional solutions to the wastewater treatment and management problems resulting from the generation of wastewater within the service areas of the Member Agencies. To achieve this purpose, the Authority constructs, maintains and operates facilities for sewage treatment and wastewater reclamation. The City of Gilroy and the City of Morgan Hill have a 58.1% and 41.9% capacity interest in the wastewater treatment plant, respectively which is used to determine the capital contribution amounts by the Member Agencies and the pro-rata share of the Authority’s income (loss).
The Authority is governed by a Board of Directors, which consists of three members from the Gilroy City Council and two members from the Morgan Hill City Council. The Authority’s budget and annual contribution requirements are approved by the Board of Directors of the Authority. The City’s management provides accounting services, engineering services and administrative support to the Authority. Daily operations of the Authority have been contracted directly to a private provider of services for wastewater management and operations. The Authority is presented in a separate column to emphasize that it is legally separate from the City but provides a financial benefit to the City. Debt issued by the Authority requires approval by the City, and the City approves the budget of the Authority.
Complete financial statements of the Authority can be obtained from the City’s administrative offices.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
48 Note 1 – Summary of Significant Accounting Policies (Continued)
A. Description of the Reporting Entity (Continued)
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from discretely presented component .
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, net position/fund balance, revenues and expenditures or expenses, as appropriate.
Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. The DCU column in the government-wide statement of net position and statement activities includes the financial data of the Authority. The City’s equity investment in the Authority is reported in the Sewer Fund as an Equity Investment in the DCU and is adjusted annually using the equity method of accounting.
Fiduciary activities of the City are not included in the Government-Wide statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
49 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund - The General Fund is used to account for resources traditionally associated with governments which are not required by law or sound financial management to be accounted for in another fund.
Public Facilities Impact Capital Projects Fund - This fund has been established to track expenditures related to the construction of facilities for public use.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include three individual funds which provide services directly to other City funds. These areas of service include - Fleet and Facilities, Information Technology, and Self-Insurance.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
50 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major enterprise fund:
Sewer Fund - This fund is used to account for sewage stations and collection systems provided by the City to the public.
Water Fund - This fund is used to account for water services provided by the City to the public.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. These funds have been established to account for assets received and held by the City while acting in the capacity of an agent or custodian.
The City reports the following custodial funds:
Custodial Funds – These funds account for resources held by the City in custodial capacity for special assessments collected to pay the bonded indebtedness for the Highway 152 Series Bonds and for the revenues that come from fundraising and donations used to buy equipment for the Senior Center.
Discretely Presented Component Unit Financial Statements
The activities of the Authority closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. The Authority provides services on a continuous basis and its activities are substantially financed by revenues derived from user charges and contributions from the member agencies. The Authority utilizes the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.
C. Cash and Investments
The City pools its available cash for investment purposes. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
51 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets and liabilities at the measurement date.
A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and cash and investments maintained in the City’s pool to be cash equivalents.
Disclosures for deposits and investment risks, as required and applicable, have been provided in Note 2:
Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
D. Interfund Loans Receivable and Payable
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans) or advances to/from other fund (i.e., non-current interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “interfund balances”.
E. Accounts and Due from Other Governments
All accounts and due from other governments are shown net of any allowance for doubtful accounts, if applicable, and estimated refunds due.
F. Loans Receivable
The accompanying financial statements reflect the recording of certain loans receivable that represent loans made to various parties for homebuyer and rehabilitation loan programs. Where reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
52 Note 1 – Summary of Significant Accounting Policies (Continued)
G. Inventory
Inventories are stated at cost using the first-in, first-out (FIFO) method. Inventories recorded in governmental funds are recorded as an expenditure when used (consumption method). Inventory balances represent expendable supplies held for consumption. Reported expenditures reflect the purchase and consumption of supplies during the year. Nonspendable fund balance has been reported in the governmental funds’ fund financial statements to show that inventories do not constitute “available spendable resources,” even though they are a component of fund balance.
H. Land Held for Resale
Land held for resale represents land, structures, and their related improvements acquired for resale. The current land held for resale includes a multi-family residential project which was acquired via foreclosure process by the Housing Trust Fund and converted to affordable rental units. The City intends to sell the property to a non-profit affordable housing developer to rehabilitate the existing facility and maintain it as affordable housing units.
I. Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of certain improvements including roads, streets, sidewalks, medians and storm drains.
The following schedule summarizes capital asset useful lives:
Buildings and improvements 40 years
Machinery and equipment 5 - 25 years
Furniture and fixtures 10 - 20 years
Vehicles 8 years
Infrastructure 5 - 70 years
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.
J. Deferred Outflows/Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. The City reports pension contribution after measurement date and deferred loss related to pension, OPEB and debt refunding in this category.
Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. The City reports unavailable revenues and deferred gain related to pension and OPEB in this category.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
53 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the fund financial statements, only proprietary fund and private-purpose trust fund types recognize the interest payable when the liability is incurred.
L. Unearned Revenue
Unearned revenue is reported for transactions for which revenue has been received but has not yet been earned.
Unearned revenues primarily consist of prepaid charges for services and grant allocations, primarily for American Rescue Plan Act funding, which have not yet been spent.
M. Compensated Absences
All full-time employees accumulate vacation benefits in varying annual amounts. Sick leave benefits accrue at the rate of one day per month for all full-time employees (except fire shift employees who accrue 12 hours of sick leave per month) regardless of their length of service to the City. Upon termination or retirement, employees are paid for all unused vacation time and overtime. No cash payment is made for unused sick leave upon termination or retirement.
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.
If material, a proprietary fund liability is accrued for all leave benefits relating to the operations of the proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to year-end. All other amounts are recorded in the government-wide financial statements. These noncurrent amounts will be recorded as fund expenditures in the year in which they are paid or become due.
N. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
54 Note 1 – Summary of Significant Accounting Policies (Continued)
O. Other Postemployment Benefits Liability
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
P. Claims Payable
The City records a liability for litigation, judgments and claims when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activity.
Q. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and related deferred charges on refunding, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those items, net of unspent debt proceeds.
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Separate line items are used to distinguish among major categories of restrictions and are further displayed as expendable or nonexpendable based on the nature of the restriction.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
R. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balance represents inventory, prepaid expenses, land held for resale, and loans receivable unless the proceeds from the collection of those loans receivable or from sale of the properties is restricted, committed, or assigned.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
55 Note 1 – Summary of Significant Accounting Policies (Continued)
R. Fund Balances (Continued)
Restricted fund balance includes resources that are subject to externally enforceable legal restrictions. It includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council, as the City’s highest level of decision-making authority, may commit, through a resolution, fund balance for specific purposes pursuant to constraints imposed by such formal actions taken. Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action taken to establish the commitment.
Assigned fund balance consists of funds that are set aside for specific purposes by the City’s highest level of decision-making authority or a body or official that has been given the authority to assign funds. The City has not adopted a policy on the authority to assign amounts for specific purposes.
Unassigned fund balance is the residual classification for the City’s fund balance and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
Committed
Assigned
Unassigned
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
56 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Property Taxes
Property taxes in the State of California are administered for all local agencies at the County level, and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
Property Valuations - are established by the Assessor of the County of Santa Clara for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax Levies - are limited to 1% of full market value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.
Tax Levy Dates - are attached annually on March 1 preceding the fiscal year for which the taxes are levied.
The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
Tax Collections - are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property may be paid in two installments. The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10, and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.
Tax Levy Apportionments - Due to the nature of the City-wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the County Auditor-Controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979.
Property Tax Administration Fees - The State of California fiscal year 1990-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administrative fees withheld during the fiscal year.
U. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
57 Note 1 – Summary of Significant Accounting Policies (Continued)
V. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2021, the City implemented the following new GASB Pronouncement:
GASB Statement No. 84 Fiduciary Activities. This statement establishes standards relating accounting and financial reporting for identifying and financial reporting of fiduciary activities. Those provisions are effective for reporting periods beginning after December 15, 2019, as amended by GASB Statement No. 95. Application of this statement was effective starting in fiscal year ending June 30, 2021. See Note 16 for details.
GASB Statement No. 90, Majority Equity Interests. This statement defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. Those provisions are effective for reporting periods beginning after December 15, 2019. The City’s equity investment in the Authority is reported in the Sewer Fund. The application of this statement did not have a material effect on the City’s financial statements for the fiscal year ending June 30, 2021.
GASB Statement No. 98. The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Those provision are effective for fiscal years ending after December 15, 2021. The City has elected early implementation of this statement. Application of this statement was primarily qualitative and did not have a material financial effect on the City’s financial statements for the fiscal year ending June 30, 2021.
Note 2 – Stewardship, Compliance and Accountability
A. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue, and similar governmental funds. Encumbrances outstanding at fiscal year-end are reported as committed or assigned fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in- process at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities. There were no significant amounts of encumbrances outstanding as of June 30, 2021.
B. Continuing Appropriations
The unexpended and unencumbered appropriations that are available and recommended for continuation are approved by the City Council for carryover to the following fiscal year. These commitments are reported as committed or assigned fund balance.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
58 Note 2 – Stewardship, Compliance and Accountability (Continued)
C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balance/net position as of June 30, 2021:
Funds Amount
Major Capital Projects Fund:
Public Facilities Impact Fund (5,397,488)$
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2021 for its governmental activities of $(42,545,831) of which, $(76,563,531) and $(15,490,865) were attributed to aggregate net pension liabilities and net other postemployment benefits liability, respectively.
D. Excess of Expenditure Over Appropriations
The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2021:
Funds Appropriations Expenditures Excess
Nonmajor Funds:
Special Revenue Funds:
Community Development
Block Grant Fund 488,807$ 1,262,063$ (773,256)$ Housing Trust Fund 150,883 524,084 (373,201) Capital Projects Funds:
Sewer Development Fund 584,601 1,375,571 (790,970)
Note 3 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.
Statement of
Governmental Business-type Discretely Fiduciary
Activities Activities Presented Net Position Total
Cash and investments 105,132,693$ 45,781,461$ 8,893,106$ 816,428$ 160,623,688$ Cash and investment with fiscal agent 2,920,291 55,108,183 - 290,613 58,319,087 Total cash and investments 108,052,984$ 100,889,644$ 8,893,106$ 1,107,041$ 218,942,775$ Government-Wide Statement of Net Position
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
59 Note 3 – Cash and Investments (Continued)
Cash and investment at June 30, 2021 consisted of the following:
Cash and cash equivalents:
Demand deposits 3,587,296$
Petty cash 4,955
Total cash and cash equivalents 3,592,251
Investments:
Local Agency Investment Fund 157,035,876
Investments with Fiscal Agent:
Investment Agreement 2,621,000
Money Market Mutual Fund 55,693,648
Total investments 215,350,524
Total cash and investments 218,942,775$
A. Demand Deposits
The carrying amount of the City’s demand deposits were $3,587,296 at June 30, 2021. Bank balances before reconciling items were $6,364,431 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
60 Note 3 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the California Government Code. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table below does not identify investment types that are authorized and held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Maximum Maximum
Maximum Percentage of Investment in One
Authorized Investment Type Maturity Portfolio Issuer
Local Agency Investment Fund (LAIF)N/A None None
U.S. Government Sponsored Agency Securities N/A None None Insured Certificate of Deposit (CD's)N/A 15%$250,000
Banker's Acceptances N/A 15%None
Commercial Paper N/A 10%None
Passbook Savings or Money Market Demand Deposits N/A None None Money Market Mutual Funds N/A 5%None
Liquidity:
*Securities or bonds purchased under a prior investment policy may be held or sold but additional purchases shall not be made.
N/A- Not applicable
C. Fair Value Measurements
At June 30, 2021, investments are reported at fair value. Investments in investment contracts are valued at cost and exempt from the fair value hierarchy. Investments that are measured at fair value using the net asset value (NAV) per share are not classified in the fair value hierarchy. The City values investments in money market mutual funds at NAV based on amortized cost The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2021:
Primary Government Total N/A
Local Agency Investment Fund 157,035,876$ 157,035,876$ Investment Agreement 2,621,000 2,621,000
Total Investments 159,656,876$ 159,656,876$
Investments measured at the net asset value (NAV)
Money Market Mutual Funds 55,693,648$
Total investments measured at the net asset value (NAV)55,693,648$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
61 Note 3 – Cash and Investments (Continued)
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is as follows:
12 Months
Investment Type Total or less 12-24
Local Agency Investment Fund 157,035,876$ 157,035,876$ -$ Investment Agreement 2,621,000 - 2,621,000 Money Market Mutual Funds 55,693,648 55,693,648 - Total 215,350,524$ 212,729,524$ 2,621,000$
Remaining Maturity (in Months)
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s as of year-end for each investment type.
Minimum
Legal
Investment Type Total Rating
Local Agency Investment Fund 157,035,876$ N/A
Investment Agreement 2,621,000 A1
Money Market Mutual Funds 55,693,648 N/A
Total 215,350,524$
F. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of total City investments. The money market funds held with fiscal agents are related to bond issuances and reserves and not subject to the limitation set by the code.
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
62 Note 3 – Cash and Investments (Continued)
G. Custodial Credit Risk (Continued)
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment and holds the investment on behalf of the reporting government.
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (“LAIF”) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The City investments in LAIF at June 30, 2021 included a portion of pool funds invested in Structured Notes and Asset-Backed Securities.
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2021, the City had $148,198,237 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities.
I. Investment Agreement
The City has entered into nonparticipating investment contracts (GICs), which are authorized under bond documents as outlined in the City's investment policy or the debt agreement. GICs are non-marketable interest- bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed return on principal over a specified period. A GIC is a general obligation instrument issued by a financial institution, subject to applicable legal restrictions. The Fund's investments in GIC's represent proceeds from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves. The investment contract is held long-term and bears interest rate of 3.31%. Investment contract is collateralized by investments, with $2,621,000 collateralized at 104%.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
63 Note 4 – Loans Receivable
At June 30, 2021 loans receivable consisted of the following:
Government Wide
Financial
Statements
Governmental
Activities
Down payment assistance 1,637,094$
Housing improvement to non-profits 450,000
Involuntary liens 131,345
Affordable housing development loans 790,000
Housing rehabilitation 206,316
Total loans receivable 3,214,755$
The City made deferred loans to senior citizens, the physically handicapped, and low to moderate income residents for the purposes of rehabilitation and down payment assistance. These loans are repaid at the end of a 30 year term or when the title to the property changes. The City also made deferred loans to third party housing non profits to fund housing projects which are due the earlier of 55 years after completion of the projects or December 31, 2074. Where reasonably estimable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment. Estimates of any additional potential losses associated with nonrepayment cannot be reasonably estimated at this time.
Note 5 - Interfund Transactions
A. Advances to/from Other funds
The following is a summary of advances to and from other funds as of June 30, 2021:
Advances to Other Funds
Nonmajor
Governmental
Funds
Internal Service
Fund Total
Public Facilities Impact Capital Projects Fund 2,366,705$ 3,891,042$ 6,257,747$ Total 2,366,705$ 3,891,042$ 6,257,747$
Advances from Other Funds
In February 2008, the City purchased the Gilroy Gardens Property (Property), which includes a horticultural education and theme park, for approximately $13.7 million. At the same time, the City entered into a single tenant lease of the Property with the seller, Gilroy Gardens Family Theme Park, Inc. To fund the acquisition, the Public Facilities Fund borrowed from certain funds which is accounted for as a long-term advance for a period of twenty years. The annual loan activity is budgeted through revenue and expenditure transactions. The loan interest is at the City’s annual average portfolio yield. The original loan amounts were as follows: Storm Drains Fund ($1.2 million), the Sewer Development Fund ($5.0 million), the Fleet Services Fund ($4.3 million), the Equipment Outlay Fund ($2.2 million) and the Water Fund ($1.0 million). As of June 30, 2021, the Water Fund loan has been paid off in full.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
64 Note 5 – Interfund Transactions (Continued)
B. Transfers
During the year ended June 30, 2021, the City had the following transfers:
Public Facilities Nonmajor Water
Impact Capital Governmental Enterprise
Transfers In General Fund1 Projects Fund2 Funds3 Fund4 Total General Fund -$ -$ 282,278$ 51,753$ 334,031$ Public Facilities Impact Capital Projects Fund 40,763 - - - 40,763 Nonmajor Governmental Funds 351,383 3,591,375 19,988,547 - 23,931,305 Sewer Enterprise Fund - - 692,874 - 692,874 Internal Service Fund 5,000 - 1,584 - 6,584 Total 397,146$ 3,591,375$ 20,965,283$ 51,753$ 25,005,557$ Transfers Out
1General Fund support of certain capital projects, safety related grants, and IT services.
2Public Facilities Impact Capital Projects Fund supports various debt instruments.
3Other Governmental Funds support of grant personnel costs, debt retirements and sewer development project costs.
4Enterprise Fund transfers to the General Fund to support fringe benefit costs and subsidize environmental costs.
C. Due to/from Component Unit
The following is a summary of due to and from the Authority as of June 30, 2021:
Due to component unit South Regional
Wastewater
Authority
Nonmajor Governmental Funds 1,132,239$
Sewer Enterprise Fund 409,782
1,542,021$
The amounts owed by the City to the Authority are primarily for outstanding operating and capital contributions at year end.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
65 Note 6 – Capital Assets
Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2021:
Balance Balance
July 1, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated:
Land 21,334,900$ -$ -$ -$ 21,334,900$ Construction in progress 8,757,417 5,114,280 (525,457) (6,058,751) 7,287,489 Total capital assets not being depreciated 30,092,317 5,114,280 (525,457) (6,058,751) 28,622,389 Capital assets being depreciated:
Building and improvements 121,325,914 - - 3,792,566 125,118,480 Equipment and furniture 11,054,544 77,527 - - 11,132,071 IT equipment and software 2,896,751 - (254,600) - 2,642,151 Vehicle 13,239,496 295,035 - - 13,534,531 Infrastructure 282,689,581 - (258,536) 2,266,185 284,697,230 Total capital assets being depreciated 431,206,286 372,562 (513,136) 6,058,751 437,124,463 Less accumulated depreciation for:
Building and improvements (43,471,009) (2,994,267) - - (46,465,276) Equipment and furniture (8,314,182) (481,734) - - (8,795,916) IT equipment and software (2,580,947) (97,479) 254,600 - (2,423,826) Vehicle (8,906,650) (535,295) - - (9,441,945) Infrastructure (181,278,408) (7,481,288) 258,536 - (188,501,160) Total accumulated depreciation (244,551,196) (11,590,063) 513,136 - (255,628,123) Total capital assets being depreciated, net 186,655,090 (11,217,501) - 6,058,751 181,496,340 Total governmental activities 216,747,407$ (6,103,221)$ (525,457)$ -$ 210,118,729$
Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2021 as follows:
General government 854,655$
Public safety 1,238,339
Public works 7,629,384
Community development 1,160,167
Internal service fund 707,518
Total depreciation expense 11,590,063$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
66 Note 6 – Capital Assets (Continued)
Business-Type Activities
The following is a summary of changes in capital assets for the business-type activities for the year ended June 30, 2021:
Balance Balance
June 30, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated:
Construction in progress 7,603,111$ 594,092$ (3,212,385)$ (4,876,679)$ 108,139$ Total capital assets not being depreciated 7,603,111 594,092 (3,212,385) (4,876,679) 108,139 Capital assets being depreciated:
Land improvements 427,852 - - - 427,852 Equipment and furniture 212,630 - - - 212,630 Vehicles 213,353 - - - 213,353 Infrastructure 150,887,033 - - 4,876,679 155,763,712 Total capital assets being depreciated 151,740,868 - - 4,876,679 156,617,547 Less accumulated depreciation for:
Land improvements (427,853) - - - (427,853) Equipment and furniture (194,158) (2,737) - - (196,895) Vehicles (4,741) (14,224) - - (18,965) Infrastructure (67,310,147) (2,856,612) - - (70,166,759) Total accumulated depreciation (67,936,899) (2,873,573) - - (70,810,472) Total capital assets being depreciated, net 83,803,969 (2,873,573) - 4,876,679 85,807,075 Total business-type activities 91,407,080$ (2,279,481)$ (3,212,385)$ -$ 85,915,214$
Depreciation expense was charged to the business-type activities as follows:
Sewer 1,505,087$
Water 1,368,486
Total depreciation expense 2,873,573$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
67 Note 6 – Capital Assets (Continued)
Discretely Presented Component Unit
The following is a summary of changes in capital assets for the DCU for the year ended June 30, 2021:
Balance Balance
June 30, 2020 Additions Deletions Reclassifications June 30, 2021 Capital assets not being depreciated:
Land 13,396,202$ -$ -$ -$ 13,396,202$ Construction in progress 11,711,219 2,963,611 - (259,739) 14,415,091 Total capital assets not being depreciated 25,107,421 2,963,611 - (259,739) 27,811,293 Capital assets being depreciated:
Building and improvements 72,223,229 - - 34,520 72,257,749 Land improvements 10,681,371 - - - 10,681,371 Equipment and furnitures 19,964,163 - - - 19,964,163 Vehicles 1,295,492 209,709 - - 1,505,201 Infrastructure 35,649,317 - - 225,219 35,874,536 Total capital assets being depreciated 139,813,572 209,709 - 259,739 140,283,020 Less accumulated depreciation for:
Building and improvements (39,520,098) (1,690,608) - - (41,210,706) Land improvements (5,717,579) (190,342) - - (5,907,921) Equipment and furniture (7,146,107) (998,977) - - (8,145,084) Vehicles (1,108,125) (31,336) - - (1,139,461) Infrastructure (15,005,973) (1,640,151) - - (16,646,124) Total accumulated depreciation (68,497,882) (4,551,414) - - (73,049,296) Total capital assets being depreciated, net 71,315,690 (4,341,705) - 259,739 67,233,724 Total governmental activities 96,423,111$ (1,378,094)$ -$ -$ 95,045,017$
Note 7 – Equity Investment in DCU
The City and the City of Morgan Hill are members of the South County Regional Wastewater Authority, a joint powers authority (“Authority”), that provides for the construction, ownership, maintenance and operation of a domestic sewer treatment plant. The agreement provides for the participants’ capacity right to use the system. The participants are also obligated to share in the annual direct operating costs of the Authority. The City maintains the accounting records for the Authority. The City’s equity investment in the DCU is reported on the statement of net position of the City’s sewer enterprise fund as an “equity investment in DCU” in the amount of $65,461,335 as required under the equity method of accounting for investments. The financial statements of the Authority can be obtained from the City’s finance department.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
68 Note 8 – Deferred Compensation
The City maintains a deferred compensation plan under Section 457 of the Internal Revenue Code (IRC) for the benefit of its employees. The plan allows the employees to defer or postpone the taxation of a designated amount of earnings set aside for retirement.
The City has a fiduciary responsibility to safeguard the assets of the program and to ensure that the plan is properly maintained by the plan administrator. Generally speaking, assets are available to participants only upon termination of employment with the City, retirement, death or disability. The City has placed the plan assets into a trust for the exclusive benefit of plan participants and their beneficiaries. Accordingly, all plan assets have been excluded from the accompanying financial statements, except for those plan assets for which the City provides record keeping services.
Note 9 – Long-Term Liabilities
A. Governmental Activities
The following is a summary of changes in the City’s long-term liabilities for the fiscal year ended June 30, 2021:
Balance Balance Due within Due in more
June 30, 2020 Additions Deletions June 30, 2021 One Year than One Year Governmental Activities:
Refunding Lease Revenue Bonds:
2010 Series 17,555,000$ -$ (17,555,000)$ -$ -$ -$ 2013 Series 18,155,000 - (945,000) 17,210,000 990,000 16,220,000 2020A Series - 13,740,000 (790,000) 12,950,000 715,000 12,235,000 Unamortized premium 1,003,218 2,719,825 (545,362) 3,177,681 - 3,177,681 Loan payable 857,429 - (91,512) 765,917 92,433 673,484 Direct borrowings and placement
General Obligation Bonds:
Library 2019A Series 8,342,578 - (326,786) 8,015,792 337,143 7,678,649 Library 2019B Series 18,287,881 - (664,027) 17,623,854 685,553 16,938,301 Total long-term debt 64,201,106 16,459,825 (20,917,687) 59,743,244 2,820,129 56,923,115 Other long-term liabilities
Claims payable 3,622,445 6,514,224 (3,777,857) 6,358,812 1,440,000 4,918,812 Compensated absences 1,986,656 1,529,069 (1,577,081) 1,938,644 249,279 1,689,365 Total long-term liabilities 69,810,207$ 24,503,118$ (26,272,625)$ 68,040,700$ 4,509,408$ 63,531,292$ Classification
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
69 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Refunding Lease Revenue Bonds (LRBs) 2010 Series
On July 27, 2010, the City refinanced its 2009 Bond Anticipation Notes (“BANs”) and issued Refunding Revenue Bonds, in the amount of $24,475,000. The proceeds from the issue were used to redeem the 2009 BANs.
Interest on the bonds is payable semiannually on May 1 and November 1 of each year commencing on May 1, 2011, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds of $17,555,000 was paid off during the year from the Refunding Lease Revenue Bonds, 2020A Series.
Refunding Lease Revenue Bonds (LRBs) 2013 Series
On July 25, 2013, the City refinanced its 2010 BANs by issuing Refunding Revenue Bonds, in the amount of $23,120,000. The proceeds from the issue were used to redeem the 2010 BANs.
Interest on the bonds is payable semiannually at rates ranging from 3.00% to 5.25% on May 1 and November 1 of each year commencing on November 1, 2013, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at June 30, 2021 was $17,210,000.
The reserve requirement at June 30, 2021 was $920,222, and the actual reserve was $920,286.
The annual debt service requirements to maturity for the Refunding LRBs 2013 Series are as follows:
Year ending
June 30, Principal Interest Total
2022 990,000$ 848,019$ 1,838,019$
2023 1,035,000 805,156 1,840,156
2024 1,080,000 760,044 1,840,044
2025 1,130,000 710,444 1,840,444
2026 1,175,000 662,875 1,837,875
2027-2031 6,755,000 2,435,803 9,190,803
2032-2034 5,045,000 466,350 5,511,350
Total 17,210,000$ 6,688,691$ 23,898,691$
Refunding Lease Revenue Bonds (LRBs) 2020A Series
On August 1, 2020, the Gilroy Public Facilities Financing Authority issued its Series 2020A Lease Revenue Refunding Bonds in the amount of $13,740,000. The bonds were issued at a premium of $2,719,825 which was deferred and will be amortized over the life of the bonds. The proceeds from the issuance were used to refund the outstanding Series 2010 Refunding LRBs and to pay the costs incurred in connection with the issuance of the 2020A bonds.
Interest on the bonds is payable semiannually at rates ranging from 1.21% to 2.08% on May 1 and November 1 of each year commencing on November 1, 2020, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at June 30, 2021 was $12,950,000.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
70 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Refunding Lease Revenue Bonds (LRBs) 2020A Series (Continued)
The annual debt service requirements to maturity for the Refunding Lease Revenue Bonds 2020A Series are as follows:
Year ending
June 30, Principal Interest Total
2022 715,000$ 629,625$ 1,344,625$
2023 755,000 592,875 1,347,875
2024 795,000 554,125 1,349,125
2025 840,000 513,250 1,353,250
2026 880,000 470,250 1,350,250
2027-2031 5,180,000 1,619,500 6,799,500
2032-2034 3,785,000 290,125 4,075,125
Total 12,950,000$ 4,669,750$ 17,619,750$
Loan Payable
The City entered into a loan agreement with the California Energy Commission (CEC) to provide funds to install equipment for energy conservation. Under the original loan agreement the City was authorized to borrow up to $1,812,722 with interest at 1% per annum, semiannual payments to be paid commencing December following the year the project was completed. The City borrowed a total of $1,201,155 with semiannual payments of interest and principal of $49,931 with the first payment occurring on December 27, 2016. The principal balance of outstanding at June 30, 2021 was $765,917.
The annual debt service requirements to maturity for the loan is as follows:
Year ending
June 30, Principal Interest Total
2022 92,433$ 7,429$ 99,862$
2023 93,359 6,503 99,862
2024 94,281 5,581 99,862
2025 95,240 4,622 99,862
2026 96,195 3,667 99,862
2027-2029 294,409 5,180 299,589
Total 765,917$ 32,981$ 798,898$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
71 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series A
On June 26, 2019, the City issued General Obligation Refunding Bonds 2019 Series A through a private placement, in the amount of $8,633,538. The proceeds from the issue were used to currently refund the General Obligation Bonds Series 2009. The City’s refunding of the 2009 General Obligation Bonds resulted in an economic gain (difference between the present value of the old and new debt) of $1,447,576 and an aggregate savings in debt service between the refunding debt and the refunded debt of $1,966,116.
Interest on the bonds is payable semiannually at 3.12% on February 1 of each year commencing on February 1, 2021. The Bonds mature on February 1, 2039. The bonds are payable solely from ad valorem property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at June 30, 2021 was $8,015,792.
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series A are as follows:
Year ending
June 30, Principal Interest Total
2022 337,143$ 250,093$ 587,236$
2023 347,829 239,574 587,403
2024 358,853 228,722 587,575
2025 370,226 217,525 587,751
2026 381,960 205,974 587,934
2027-2031 2,099,251 843,378 2,942,629
2032-2036 2,453,691 494,468 2,948,159
2037-2039 1,666,839 105,092 1,771,931
Total 8,015,792$ 2,584,826$ 10,600,618$
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B
On November 5, 2019, the City issued General Obligation Refunding Bonds 2019 Series B through a private placement, in the amount of $19,087,551. The proceeds from the issue were used to currently refund the General Obligation Bonds Series 2010. The City’s refunding of the 2010 General Obligation Bonds resulted in an economic gain (difference between the present value of the old and new debt) of $3,430,633 and an aggregate savings in debt service between the refunding debt and the refunded debt of $2,525,981.
Interest on the bonds is payable semiannually at a rate of 3.19% on February 1 of each year commencing on February 1, 2020. The Bonds mature on February 1, 2040. The bonds are payable solely from ad valorem property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at June 30, 2021 was $17,623,854.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
72 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B (Continued)
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series B are as follows:
Year ending
June 30, Principal Interest Total
2022 685,553$ 562,201$ 1,247,754$
2023 707,776 540,332 1,248,108
2024 730,720 517,754 1,248,474
2025 754,408 494,444 1,248,852
2026 778,864 470,378 1,249,242
2027-2031 4,289,817 1,962,699 6,252,516
2032-2036 5,031,701 1,232,651 6,264,352
2037-2040 4,645,015 376,347 5,021,362
Total 17,623,854$ 6,156,806$ 23,780,660$
B. Business-Type Activities
Balance Balance Due within Due in more
June 30, 2020 Additions Deletions June 30, 2021 One Year than One Year Other debt:
2010 Wastewater Revenue Bonds 7,080,000$ -$ (2,260,000)$ 4,820,000$ 2,380,000$ 2,440,000$ 2021 Wastewater Revenue Bonds - 47,080,000 - 47,080,000 - 47,080,000 Unamortized premium 465,517 5,732,751 (232,759) 5,965,509 - 5,965,509 7,545,517 52,812,751 (2,492,759) 57,865,509 2,380,000 55,485,509 Other long-term liabilities
Compensated absences 269,477 198,500 (216,307) 251,670 25,000 226,670 7,814,994$ 53,011,251$ (2,709,066)$ 58,117,179$ 2,405,000$ 55,712,179$ Classification
2010 Wastewater Revenue Refunding Bonds
On March 1, 2010, the City issued revenue refunding bonds in the amount of $23,375,000. The bonds were issued to refinance an existing installment payment obligation of the City. The City had originally structured the sewer revenue bonds through the Authority. The structure consisted of a pledge of an installment sale from the City to the Authority as the collateral for the revenue bonds issued by the Authority.
As part of the March 2010 refunding, the City issued new debt to refund the Authority bonds. The outstanding balance of the new debt is reported in the Sewer Fund. The City’s covenants require the City to maintain sufficient net sewer revenues to pay the outstanding debt. The Authority does not have responsibility to set rates to meet these covenants.
The bonds are payable from the net revenues of the City’s Sewer Fund pledged as security for the debt. Interest on the bonds is payable at rates ranging from 3.0% to 5.0%. Principal payments range from $1,465,000 to $2,440,000 payable on August 1 of each year beginning in 2011 and maturing in 2022. The principal balance of outstanding bonds at June 30, 2021 was $4,820,000.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
73 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2010 Wastewater Revenue Refunding Bonds (Continued)
Covenants within the bonds require the City to maintain insurance on the facility, establish wastewater rates, exclusive of sewer development fees, which are sufficient to pay the City’s share of the operating costs of the Authority, maintain reserves, provide net revenues equal to at least 1.2 times the annual debt service amounts.
The reserve requirement at June 30, 2021 was $2,621,000, and the actual reserve was $2,664,381.
The annual debt service requirements (principal and interest) to maturity for the 2010 Wastewater Revenue Refunding Bonds are as follows:
Year ending
June 30, Principal Interest Total
2022 2,380,000$ 181,500$ 2,561,500$
2023 2,440,000 61,000 2,501,000
Total 4,820,000$ 242,500$ 5,062,500$
2021A Wastewater Revenue Bonds
On June 30, 2021, the Gilroy Public Facilities Financing Authority issued revenue bonds in the amount of $47,080,000. The bonds were issued to finance the City’s portion of certain improvements to the Authority’s treatment facility.
The bonds are payable from revenues consisting primarily of installment payments payable by the City under an installment purchase agreement. The obligation of the city to make installment payments is a special obligation of the City payable solely from and secured by a pledge of net wastewater revenues of the City’s wastewater system on a parity with the City’s obligation to pay installment payments that secure the 2010 Wastewater Revenue Bonds. Interest on the bonds is payable at rates ranging from 3.0% to 4.0%. Principal payments range from $725,000 to $2,210,000 payable on August 1 of each year beginning in 2021 and maturing in 2057. The principal balance of outstanding bonds at June 30, 2021 was $47,080,000.
The annual debt service requirements (principal and interest) to maturity for the 2021A Wastewater Revenue Bonds are as follows:
Year ending
June 30, Principal Interest Total
2022 -$ 898,801$ 898,801$
2023 - 1,533,500 1,533,500
2024 725,000 1,519,000 2,244,000
2025 755,000 1,489,400 2,244,400
2026 785,000 1,458,600 2,243,600
2027-2031 4,430,000 6,785,900 11,215,900
2032-2036 5,415,000 5,804,000 11,219,000
2037-2041 6,455,000 4,773,075 11,228,075
2042-2046 7,490,000 3,728,850 11,218,850
2047-2051 8,705,000 2,516,175 11,221,175
2052-2056 10,110,000 1,107,750 11,217,750
2057 2,210,000 33,150 2,243,150
Total 47,080,000$ 31,648,201$ 78,728,201$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
74 Note 9 – Long-Term Liabilities (Continued)
C. Debt without Government Commitment
Community Facilities District No. 2000-1, Highway 152, Special Tax Bonds
In December 2002, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act of 1982, issued $7,185,000 of Special Tax Bonds to finance the costs associated with the construction of public facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for widening and improving Highway 152.
In September 2006, Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act of 1982, issued $8,670,000 of Special Tax Bonds to finance the costs associated with the construction of public facilities for interchange improvements at State Highway 152 and U.S. Highway 101 and for the widening and improving Highway 152.
These bonds were refunded in July 2018 with proceeds from the issuance in a private placement of Community Facilities District No. 2000-1 (Highway 152) Special Tax Refunded Bonds, Series 2018 in the aggregate principal amount of $7,815,860. These bonds do not constitute a debt or obligation of the City because they are payable solely from the Special Tax revenue assessed on the underlying parcels. The City is not liable for repayment but acts as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders, and initiating foreclosure proceedings, if appropriate. The outstanding principal balance as of June 30, 2021 was $6,560,907.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
75 Note 10 – Defined Benefit Pension Plans (CalPERS)
A. Summary
The following is the summary of net pension liabilities and the related deferred outflow of resources and deferred inflow of resources at June 30, 2021 and pension expenses for the year then ended:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Pension contribution after measurement date:
Miscellaneous 2,295,299$ 1,476,762$ 3,772,061$ Safety 6,718,586 - 6,718,586 Total contribution after measurement date 9,013,885 1,476,762 10,490,647 Changes in assumptions:
Safety 629,611 - 629,611 Total changes in assumptions 629,611 - 629,611 Difference between expected and actual experience:
Miscellaneous 751,253 483,346 1,234,599 Total difference between expected and actual experience 751,253 483,346 1,234,599 Difference between projected and actual earnings on plan investments:
Miscellaneous 322,932 207,769 530,701 Safety 974,678 - 974,678 Total difference between projected and actual earnings on plan investments 1,297,610 207,769 1,505,379 Total deferred outflows of resources 11,692,359$ 2,167,877$ 13,860,236$ Aggregate net pension liabilities:
Miscellaneous 22,516,797$ 14,486,977$ 37,003,774$ Safety 54,046,734 - 54,046,734 Total aggregate net pension liabilities 76,563,531$ 14,486,977$ 91,050,508$ Deferred inflows of resources:
Changes in assumptions:
Safety 158,399$ -$ 158,399$ Total changes in assumptions 158,399 - 158,399 Difference between expected and actual experience:
Safety 566,007 - 566,007 Total difference between expected and actual experience 566,007 - 566,007 Total deferred inflows of resources 724,406$ -$ 724,406$ Pension expense:
Miscellaneous 3,648,708$ 2,347,525$ 5,996,233$ Safety 8,503,723 - 8,503,723 Total net pension expense 12,152,431$ 2,347,525$ 14,499,956$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
76 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans
Plan Descriptions
The City participates in the 2.5% at 55 (Miscellaneous Tier I), 2.0% at 62 (Miscellaneous Tier II PEPRA), 3.0% at 50 (Police Safety Tier I), 2.0% at 50 (Police Safety Tier II), 2.7% at 57 (Police Safety Tier III PEPRA), 3% at 55 (Fire Safety Tier I), 2% at 55 (Fire Safety Tier II) and 2% at 57 (Fire Safety Tier III PEPRA) agent multiple- employer defined benefit plans. The City’s defined benefit pension plans provide retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The Plans are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by state statutes within the Public Employees’ Retirement Law.
The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through City ordinance. CalPERS issues a separate annual comprehensive financial report. Copies of CalPERS’s annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.
All full-time employees of the City are eligible to participate in the Plans. Part-time employees and temporary employees who work an average of 20 hours per week and over 1,000 hours per year are also eligible to participate. Upon 5 years of service, miscellaneous employees and public safety employees who retire at or after age 50 are entitled to receive an annual retirement benefit.
The benefit is payable monthly for life, in an amount that varies from each Tier, of the employees’ single highest year’s salary for each year of credited service. The Plans also provide death and disability benefits.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit or the Optional Settlement 2W Death Benefit.
Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service.
The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
77 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at the measurement date of June 30, 2020 are summarized as follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 1.0% to 2.5% Required employee contribution rates 8.000%7.000%
Required contribution during measurement period 11.363%11.363% Miscellaneous
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 3 years of service 3 years of service 3 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 3.000% 2.00%-2.70% 2.00%-2.70% Required employee contribution rates 9.000%9.000%13.000% Required contribution during measurement period 21.412%21.412%21.412% Safety - Police
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 55 2% @ 55 2% @ 57
Benefit vesting schedule 3 years of service 3 years of service 3 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 2.4%-3.0% 1.426%-2.0% 1.426%-2.0% Required employee contribution rates 9.000%7.000%10.500% Required contribution during measurement period 21.412%21.412%21.412% Safety - Fire
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
78 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Employees Covered
At the measurement date of June 30, 2020, the following employees were covered by the benefit terms for all Plans:
Inactives currently receiving benefits 116
Inactives entitled to but not yet receiving benefits 30 Active employees 124
Total 270
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions.
C. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2019 valuation was rolled forward to determine the June 30, 2020 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB Statement No. 68
7.15%
2.50%
Varies by Entry Age and Service
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
Derived using CalPERS’ membership data for all funds.
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
79 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
C. Net Pension Liability (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
Current Target Real Return Real Return
Asset Class1 Allocation Years 1 - 102 Years 11+3
Global equity 50.00%4.80%5.98%
Fixed income 28.00%1.00%2.62%
Inflation assets 0.00%0.77%1.81%
Private equity 8.00%6.30%7.23%
Real assets 13.00%3.75%4.93%
Liquidity 1.00%0.00%-0.92%
2 An expected inflation of 2.0% used
3 An expected inflation of 2.92% used
1 In the CalPER's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
80 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
D. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City’s miscellaneous plan recognized over the measurement period.
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) 116,325,023$ 81,865,434$ 34,459,589$ Changes Recognized for the Measurement Period:
Service Cost 2,360,748 - 2,360,748 Interest on the total pension liability 8,220,201 - 8,220,201 Difference between expected and actual experience 670,381 - 670,381 Plan to plan resource movement - 1,029 (1,029) Contributions from the employer - 3,645,000 (3,645,000) Contributions from employees - 1,076,549 (1,076,549) Net investment income - 4,099,977 (4,099,977) Benefit payments, including refunds of employee
contributions (6,415,856) (6,415,856) - Administrative expenses - (115,410) 115,410 Net Changes during July 1, 2019 to June 30, 2020 4,835,474 2,291,289 2,544,185 Balance at June 30, 2020 (Measurement Date) 121,160,497$ 84,156,723$ 37,003,774$ Increase (Decrease)
Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) 171,850,808$ 120,137,570$ 51,713,238$ Changes Recognized for the Measurement Period:
Service Cost 4,116,535 - 4,116,535 Interest on the total pension liability 12,139,906 - 12,139,906 Difference between expected and actual experience (85,114) - (85,114) Plan to plan resource movement - (1,029) 1,029 Contributions from the employer - 6,320,224 (6,320,224) Contributions from employees - 1,575,349 (1,575,349) Net investment income - 6,112,651 (6,112,651) Benefit payments, including refunds of employee
contributions (8,070,115) (8,070,115) - Administrative expenses - (169,364) 169,364 Net Changes during July 1, 2019 to June 30, 2020 8,101,212 5,767,716 2,333,496 Balance at June 30, 2020 (Measurement Date) 179,952,020$ 125,905,286$ 54,046,734$ Safety
Increase (Decrease)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
81 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
D. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for all Plans, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan 51,845,285$ 37,003,774$ 24,639,213$ Safety Plan 78,083,445$ 54,046,734$ 34,186,110$ Plan's Net Pension Liability/(Asset)
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense in the amounts of $5,996,233 and $8,503,723 for the miscellaneous plan and safety plan, respectively.
As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 3,772,061$ -$ Difference between expected and actual experience 1,234,599 - Net difference between projected and actual earning on
pension plan investments 530,701 -
Total 5,537,361$ -$
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 6,718,586$ -$ Change in assumptions 629,611 (158,399)
Difference between expected and actual experience - (566,007) Net difference between projected and actual earnings
on pension plan investments 974,678 -
Total 8,322,875$ (724,406)$
Safety Plan
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
82 Note 10 – Defined Benefit Pension Plans (CalPERS) (Continued)
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The $3,772,061 reported in the Miscellaneous Plans and $6,718,586 reported in the Safety Plans as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement
Period Miscellaneous Safety
Ending June 30 Plan Plan
2021 645,442$ (381,683)$
2022 391,255 173,524
2023 394,163 595,502
2024 334,440 492,540
1,765,300$ 879,883$
Deferred Outflows/(Inflows)
of Resources
Note 11 – Other Postemployment Healthcare Plan
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Employer contributions made
subsequent to the measurement date 461,896$ 97,232$ 559,128$ Changes in assumption 2,605,359 548,447 3,153,806 Total deferred outflows of resources 3,067,255$ 645,679$ 3,712,934$ Total OPEB liability 15,490,865$ 3,260,939$ 18,751,804$ Total OPEB liability 15,490,865$ 3,260,939$ 18,751,804$ Deferred inflows of Resources:
Change in assumption 843,448$ 177,552$ 1,021,000$ Difference between expected and actual experience 971,077 204,419 1,175,496 Total deferred inflows of resources 1,814,525$ 381,971$ 2,196,496$ OPEB Expense 1,144,667$ 240,960$ 1,385,627$ Plan Description
The City’s Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the City. The plan provides healthcare benefits to eligible retirees and their dependents through the California Public Employee’s Retirement System healthcare program (PEMHCA) and a post-employment retention/recognition incentive benefit program (RRIB) which requires proof of medical coverage. Benefit provisions are established and may be amended through agreements and memorandums of understanding between the City, its management employees and unions representing City employees.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
83 Note 11 – Other Postemployment Healthcare Plan (Continued)
Plan Description (Continued)
For all retirees under the plan, the City contributes the PEMHCA minimum contribution on the unequal method for eligible retirees and surviving spouses. The PEMHCA minimum amount is $139 in 2020 and $145 in 2021. No dental, vision or life insurance benefits are provided.
The RRIB incentive benefit is for certain bargaining units’ retirees that retired prior to July 1, 2014 (police and fire employees), July 1, 2015 (management employees) or November 1, 2015 (AFSCME, miscellaneous employees).
Prior employees that retired on or before these dates and were fifty (50) or more years of age (police and fire employees) or fifty-five (55) or more years of age (AFSCME and management employees) and previously retired from City service with a minimum of fifteen (15) years of service with the City are eligible to receive this postretirement benefit until reaching the age of sixty-five (65). Additional tiers of years of service were added to the plan to qualify for benefits. This supplemental pension plan has been discontinued for new participants after the dates noted above.
The employer contribution under RRIB provides a temporary monthly annuity (to age 65) up to $300 per month based on service at retirement to eligible retirees. All classes of employees are covered, if eligible.
The City offers a Health Reimbursement Plan (PEMHCA) for new retirees after the dates noted above.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The plan does not issue a separate report.
Employees Covered
At the measurement date of June 30, 2020, the following current and former employees were covered by the benefit terms under the plan:
Active plan members 265
Retirees 226
Total 491
Total OPEB Liability
The City’s OPEB liability of $18,751,804 was measured as of June 30, 2020 and was determined by an actuarial valuation as of June 30, 2019 rolled forward to 2020 using standard update procedures. The OPEB liability from the governmental activities is primarily liquidated from the general fund.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
84 Note 11 – Other Postemployment Healthcare Plan (Continued)
Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation Date June 30, 2019
Contribution Policy No pre-funding
Discount Rate 2.21% at June 30, 2020 (Bond Buyer 20-Bond Index). 3.50% at June 30, 2019 (Bond Buyer 20-Bond index)
Inflation 2.75% annually
Salary Increase Aggregate - 3% annually, Merit - CalPERS 1997-2015 Experience Study
Mortality, Retirement, Termination, and
Disability
CalPERS 1997-2015 Experience Study
Mortality Improvement Scale Modified projected fully generational with Scale MP-2019 Healthcare Trend Rate - Non-Medicare An annual healthcare cost trend rate of 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076
Healthcare Trend Rate - Medicare An annual healthcare cost trend rate of 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076
Changes in total OPEB Liability
The change in total OPEB liability are as follows:
Total OPEB
Liability
Balance at June 30, 2019 (Valuation Date)14,594,602$
Changes Recognized for the Measurement Period:
Service Cost 906,127
Interest on the total OPEB liability 533,762
Changes in assumptions 3,218,042
Benefit payments (500,729)
Net Changes during July 1, 2019 to June 30, 2020 4,157,202 Balance at June 30, 2020 (Measurement Date) 18,751,804$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
Rate (1.21%) Rate (2.21%) Rate (3.21%)
22,013,981$ 18,751,804$ 16,177,996$ Plan's Total OPEB Liability
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
85 Note 11 – Other Postemployment Healthcare Plan (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate (Continued)
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher) than the current healthcare cost trend rates:
Healthcare Cost
Trend Rates
-1% (6.3% - 7.25%) 1%
15,681,082$ 18,751,804$ 22,753,612$ Plan's Total OPEB Liability
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $1,385,627. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred outflows Deferred inflows
of Resources of Resources
Difference between expected and actual experience -$ (1,175,496)$ Changes in assumptions 3,153,806 (1,021,000) Employer contributions made
subsequent to the measurement date 559,128 - Total 3,712,934$ (2,196,496)$
The $559,128 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending June 30, 2022. The change in assumptions was due to the change in discount rate to 2.21% from 3.50% for the June 30, 2020 measurement date and is amortized over the average expected remaining service lives.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2022 (54,262)$
2023 (54,262)
2024 32,738
2025 225,738
2026 308,786
Thereafter 498,572
957,310$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
86 Note 12 – Claims Payable
The workers’ compensation and general liability claims administrators have estimated liabilities for probable future payments relating to claims outstanding as of June 30, 2021 in the following amounts which are recorded in separate internal service funds:
Worker' compensation claims 3,592,854$
General liability claims 2,765,958
Total claims payable 6,358,812$
Although the eventual outcome of these claims is uncertain, in the opinion of management, the resolution of these matters is not expected to have a material adverse effect on the financial condition of the City, beyond the provision for losses reflected in the recorded claims payable liabilities.
Changes in claims payable for workers’ compensation for the past three fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Workers' Compensation Liability Estimates Payments Liability One Year One Year 2018-2019 2,888,480$ 1,433,203 (1,066,813) 3,254,870$ 879,000$ 2,375,870$ 2019-2020 3,254,870 70,329 (392,803) 2,932,396 792,000 2,140,396 2020-2021 2,932,396 2,058,195 (1,397,737) 3,592,854 970,000 2,622,854 Changes in claims payable for general liability for the past three fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
General Liability Liability Estimates Payments Liability One Year One Year 2018-2019 138,238$ 114,526$ (642,811)$ (390,047)$ (66,000)$ (324,047)$ 2019-2020 609,953 525,681 (445,585) 690,049 117,000 573,049 2020-2021 690,049 4,456,029 (2,380,120) 2,765,958 470,000 2,295,958
Note 13 – Risk Management
Bodily injury, property damage and public officials’ errors and omissions insurance is provided via participation in a joint power’s authority. Effective July 1, 2015, the City is a member of the Municipal Pooling Authority (MPA), a joint powers authority established pursuant to California Government Code Sections 990.4-990.8 and 6500, et seq.
The pool has 20 member cities. The City is insured by the MPA for up to $29,000,000 per claim for liability coverage, including $28,000,000 provided by an excess policy with the California Affiliated Risk Management Authority, after a deductible of $50,000 which is paid by the City. Premiums paid by the participating members may be retrospectively increased or decreased to reflect the actual operating costs of MPA and the City’s share of incurred losses. The City is contingently liable for assessments which may be made by MPA in the event that MPA has insufficient resources to pay unexpectedly large claims.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
87 Note 13 – Risk Management (Continued)
The City is self-insured for the first $500,000 of each workers’ compensation claim. The City belongs to the Local Agency Workers’ Compensation Excess (LAWCX) joint powers authority, established pursuant to California Government Code Sections 990.4-990.8 and 6500 et seq., for the purpose of workers’ compensation excess coverage.
LAWCX coverage is for individual workers’ compensation claims in excess of $500,000 up to $5,000,000. In addition, additional excess coverage beyond $5,000,000 is purchased via California State Association of Counties Excess Insurance Authority (CSAC EIA) bringing statutory coverage to $50,000,000.
Note 14 – Commitments and Contingencies
Under the terms of federal, county, and state grants, periodic audits are required, and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.
The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the City’s financial position.
Gilroy Garlic Festival
On July 28, 2019, the Gilroy Garlic Festival, held at Christmas Hill Park, was the site of an unexpected and random shooting. The gunman killed himself, three others and wounded 17 people. The City’s response costs have been submitted to the California Governor’s Office of Emergency Services (Cal OES) for reimbursement consideration.
The City has been named as a party in litigation lawsuits against the Gilroy Garlic Festival Association responsible for organizing the festival. Currently, the Gilroy Garlic Festival Association’s insurance is covering all legal costs.
The City may incur additional financial impacts as a result of this event. At this time, the extent of those impact is unknown as it is too early in the case to make those determinations.
COVID-19
In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social disruption. The coronavirus was declared a Public Health Emergency of International Concern by the World Health Organization on January 30, 2020. The pandemic was ongoing during FY21 and is still ongoing in nature as various variants of the virus have emerged causing public health administrators to continue implementing mitigation measures including but not limited to masking and limitations on social gatherings. The full financial impact and duration cannot be determined at this time.
Business-Type Activities Delinquencies
The City provides water and sewer utility services. Since the onset of the pandemic in 2020, Governor Gavin Newsom issued executive orders instituting moratorium on shutting off water services for delinquent/non-payment accounts. Subsequent legislation enacted in September 2021 extended that moratorium through December 31, 2021.
The City’s water and sewer utilities currently have estimated $900,000 in delinquent accounts. The City is currently offering its delinquent customers a payment arrangement plan and will continue its collection efforts. In addition, State Water Resources Control Board of California has instituted a water and wastewater arrearage payment program to provide relief to community water and wastewater systems for unpaid bills related to the pandemic. The funding will cover water debt from residential and commercial customers accrued between March 4, 2020 and June 15, 2021 in the first round, and if the program still has funding available, it will extend to wastewater charges. The City has submitted application to receive a grant allocation from the program.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
88 Note 14 – Commitments and Contingencies (Continued)
Listed below are projects for uncompleted contracts over $250,000 outstanding as of June 30, 2021:
Name of Project
Outstanding
Amount
Enterprise Resource Planning (ERP) and
Permitting Software Systems and
Implementation Services
1,316,051$
10th Street and Uvas Creek Bridge Design
Services
780,761
McCarthy Well Project - Design and
Construction Engineering Services
543,749
FY21 Citywide Pavement Maintenance 256,666
2,897,227$
Note 15 – Classification of Fund Balances
Public Facilities Nonmajor
Impact Capital Governmental
General Projects Fund Funds Total
Nonspendable:
Inventory 47,874$ -$ -$ 47,874$ 47,874 - - 47,874 Restricted:
Public safety - - 459,026 459,026 Community library - - 6,496,675 6,496,675 Street maintenance - - 5,550,992 5,550,992 Grant programs - - 1,679,551 1,679,551 Housing - - 2,707,415 2,707,415 Traffic impact - - 14,258,526 14,258,526 Sewer development - - 13,182,409 13,182,409 Water development - - 5,102,067 5,102,067 Storm drains - - 2,078,854 2,078,854 Community
development - - 4,442,031 4,442,031 Debt service - - 1,702,332 1,702,332 Museum - - 9,554 9,554 City poor assistance - - 15,053 15,053 Land held for resale - - 706,754 706,754 Subtotal - - 58,391,239 58,391,239 Assigned:
Capital projects - - 5,276,537 5,276,537 Subtotal - - 5,276,537 5,276,537 Unassigned (deficit)19,585,369 (5,397,488) (54) 14,187,827 Total 19,633,243$ (5,397,488)$ 63,667,722$ 77,903,477$
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
89 Note 15 – Classification of Fund Balances (Continued)
General Fund Balance Policy
The City’s general fund reserve policy consists of an unrestricted General Fund Reserve of 20% of general fund expenditures and an Economic Stability Reserve of 10% of general fund expenditures. The Economic Stability Reserve would only be used in extraordinary circumstances, upon satisfaction of one of the following “economic triggers” and with the majority vote of the City Council: (i) state take-away of significant revenue; (ii) large drop in property taxes (decrease in assessed valuations), (iii) major business closures (sales tax and/or utility users’ tax impact); (iv) dramatic drop in development from projections; (v) large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession or (vi) the economic triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g. 20%). In the event the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next biennial budget to 10% of the general fund expenditures for the given year.
Note 16 – Prior Period Adjustments
The City made following prior period adjustments as of July 1, 2020:
Governmental Business-Type
Activities Activities Total
Net position at July 1, 2020, as previously reported 166,368,370$ 184,046,988$ 350,415,358$ To implement GASB 84 12,990 - 12,990 Net position at July 1, 2020, as restated 166,381,360$ 184,046,988$ 350,428,348$
General Fund Henry Miller Museum Trust Total
Net position at July 1, 2020, as previously reported 14,858,470$ -$ -$ 14,858,470$ To implement GASB 84 (13,581) 17,238 9,333 12,990 Net position at July 1, 2020, as restated 14,844,889$ 17,238$ 9,333$ 14,871,460$ Permanent Funds
The City made the following prior period adjustments as of July 1, 2020 to report the net position of its custodial funds:
Senior
Advisory Highway 152 Highway 152 Highway 152
Board Series 2002 Series 2006 Series 2018 Total
Net position at July 1, 2020, as previously reported -$ -$ -$ -$ -$ To implement GASB 84 8,345 544 709 1,082,718 1,092,316 Net position at July 1, 2020, as restated 8,345$ 544$ 709$ 1,082,718$ 1,092,316$ Custodial Funds
Prior period adjustments in general fund, fiduciary funds and governmental activities are all from the implementation of GASB statement 84.
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
90 Note 17 – Subsequent Events
American Rescue Plan Act
On March 11, 2021 President Joe Biden signed into law H.R. 1319 – American Rescue Plan Act of 2021 to combat the impacts of the COVID-19 pandemic and lay the foundation for a strong economic recovery. The total bill was a $1.9 trillion-dollar package and included $350 billion dollars in funding for state, local, territorial, and tribal governments. The specific breakdown of this $350 billion included: $195 billion for states, $130 billion for local governments, $20 billion for tribal governments, and $4.5 billion for territories. The City was allocated $10,964,521 as a result of the passage of the bill. This funding will be received in two equal $5,482,260 tranches from the Treasury Department. The first tranche was received on May 19, 2021 and the second tranche will be distributed 365 days from that day. The ARPA funding requires obligation of recovery funds by December 31, 2024 and expenditure of funds by December 31, 2026. As of June 30, 2021, a total of $5,482,260 is reported in unearned revenue in the general fund.
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
91 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 Total pension liability
Service cost 2,360,748$ 2,218,281$ 2,107,888$ 2,119,709$ 1,974,107$ Interest 8,220,201 7,888,537 7,397,421 7,057,333 6,992,371 Changes of benefit terms - - - - - Changes of assumptions - - (870,201) 5,558,063 - Differences between expected and actual experience 670,381 3,067,906 1,618,519 (2,724,046) (878,722) Benefit payments, including refunds of employee
contributions (6,415,856) (6,003,668) (5,515,662) (4,810,256) (4,335,513) Net change in total pension liability 4,835,474 7,171,056 4,737,965 7,200,803 3,752,243 Total pension liability - beginning 116,325,023 109,153,967 104,416,002 97,215,199 93,462,956 Total pension liability - ending (a)121,160,497$ 116,325,023$ 109,153,967$ 104,416,002$ 97,215,199$ Pension fiduciary net position
Contributions - employer 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ Contributions - employee 1,076,549 992,926 1,003,145 888,342 895,816 Net investment income 4,099,977 5,226,520 6,275,073 7,621,577 355,337 Benefit payments, including refunds of employee
contributions (6,415,856) (6,003,668) (5,515,662) (4,810,256) (4,335,513) Plan to plan resource movement 1,029 - (182) - - Administrative expense2 (115,410) (55,985) (115,667) (100,535) (41,912) Other Miscellaneous Income/(Expense)1 - 182 (219,654) - - Net change in plan fiduciary net position 2,291,289 3,414,156 4,223,543 6,134,773 (677,528) Plan fiduciary net position - beginning 3 81,865,434 78,451,278 74,227,735 68,092,962 68,770,490 Plan fiduciary net position - ending (b)84,156,723$ 81,865,434$ 78,451,278$ 74,227,735$ 68,092,962$ Plan net pension liability - ending (a) - (b)37,003,774$ 34,459,589$ 30,702,689$ 30,188,267$ 29,122,237$ Plan fiduciary net position as a percentage 69.46% 70.38% 71.87% 71.09% 70.04% of the total pension liability
Covered payroll3 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ Plan net pension liability as a percentage of covered
payroll 282.61% 287.09% 267.98% 276.90% 260.27%
Notes to Schedule:
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021
Last Ten Fiscal Years
Changes of Assumptions: None in 2019 and 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 92 Measurement period 2014-15 2013-141
Total pension liability
Service cost 1,914,477$ 1,886,470$
Interest 6,720,915 6,378,166
Changes of benefit terms - -
Changes of assumptions (1,563,145) -
Differences between expected and actual experience 67,994 - Benefit payments, including refunds of employee
contributions (4,140,599) (3,800,609)
Net change in total pension liability 2,999,642 4,464,027 Total pension liability - beginning 90,463,314 85,999,287 Total pension liability - ending (a)93,462,956$ 90,463,314$ Pension fiduciary net position
Contributions - employer 2,236,836$ 2,105,469$
Contributions - employee 894,531 978,326
Net investment income 1,523,463 10,200,504
Benefit payments, including refunds of employee
contributions (4,140,599) (3,800,609)
Plan to plan resource movement - - Administrative expense2 (77,393) -
Other Miscellaneous Income/(Expense)1 - - Net change in plan fiduciary net position 436,838 9,483,690 Plan fiduciary net position - beginning 3 68,333,652 58,849,962 Plan fiduciary net position - ending (b)68,770,490$ 68,333,652$ Plan net pension liability - ending (a) - (b)24,692,466$ 22,129,662$ Plan fiduciary net position as a percentage 73.58% 75.54% of the total pension liability
Covered payroll3 10,920,524$ 10,072,452$
Plan net pension liability as a percentage of covered
payroll 226.11% 219.70%
Notes to Schedule:
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021
Last Ten Fiscal Years
Changes of Assumptions: None in 2019 and 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 93 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 Total pension liability
Service cost 4,116,535$ 4,001,654$ 3,782,506$ 3,795,030$ 3,436,724$ Interest 12,139,906 11,586,454 11,090,179 10,658,420 10,258,316 Changes of benefit terms - - - - - Changes of assumptions - - (633,599) 9,024,447 - Differences between expected and actual experience (85,114) (560,783) (600,354) (1,138,485) (557,694) Benefit payments, including refunds of employee contributions (8,070,115) (7,569,570) (7,391,540) (6,957,768) (6,616,198) Net change in total pension liability 8,101,212 7,457,755 6,247,192 15,381,644 6,521,148 Total pension liability - beginning 171,850,808 164,393,053 158,145,861 142,764,217 136,243,069 Total pension liability - ending (a)179,952,020$ 171,850,808$ 164,393,053$ 158,145,861$ 142,764,217$ Pension fiduciary net position
Contributions - employer 6,320,224$ 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ Contributions - employee 1,575,349 1,245,565 1,196,981 1,157,337 1,130,369 Net investment income 6,112,651 7,469,298 8,983,812 10,785,793 541,083 Benefit payments, including refunds of employee contributions (8,070,115) (7,569,570) (7,391,540) (6,957,768) (6,616,198) Plan to plan resource movement (1,029) - (263) - - Administrative expense2 (169,364) (80,996) (165,621) (143,087) (59,596) Other Miscellaneous Income/(Expense)1 - 263 (314,517) - - Net change in plan fiduciary net position 5,767,716 6,637,554 7,215,185 9,370,535 (872,655) Plan fiduciary net position - beginning 3 120,137,570 113,500,016 106,284,831 96,914,296 97,786,951 Plan fiduciary net position - ending (b)125,905,286$ 120,137,570$ 113,500,016$ 106,284,831$ 96,914,296$ Plan net pension liability - ending (a) - (b)54,046,734$ 51,713,238$ 50,893,037$ 51,861,030$ 45,849,921$ Plan fiduciary net position as a percentage 69.97% 69.91% 69.04% 67.21% 67.88% of the total pension liability
Covered payroll3 14,083,254$ 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ Plan net pension liability as a percentage of covered payroll 383.77% 383.63% 395.16% 408.33% 362.80% Notes to Schedule:
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 94 Measurement period 2014-15 2013-141
Total pension liability
Service cost 3,251,786$ 3,441,840$
Interest 9,778,748 9,235,218
Changes of benefit terms - -
Changes of assumptions (2,444,546) -
Differences between expected and actual experience 437,762 - Benefit payments, including refunds of employee contributions (5,976,690) (5,792,746) Net change in total pension liability 5,047,060 6,884,312 Total pension liability - beginning 131,196,009 124,311,697 Total pension liability - ending (a)136,243,069$ 131,196,009$ Pension fiduciary net position
Contributions - employer 3,911,991$ 3,844,918$
Contributions - employee 1,106,970 1,082,775
Net investment income 2,139,791 14,460,928
Benefit payments, including refunds of employee contributions (5,976,690) (5,792,746) Plan to plan resource movement - - Administrative expense2 (110,062) -
Other Miscellaneous Income/(Expense)1 - - Net change in plan fiduciary net position 1,072,000 13,595,875 Plan fiduciary net position - beginning 3 96,714,951 83,119,076 Plan fiduciary net position - ending (b)97,786,951$ 96,714,951$ Plan net pension liability - ending (a) - (b)38,456,118$ 34,481,058$ Plan fiduciary net position as a percentage 71.77% 73.72% of the total pension liability
Covered payroll3 12,055,260$ 12,092,757$
Plan net pension liability as a percentage of covered payroll 319.00% 285.14% Notes to Schedule:
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2021
Last Ten Fiscal Years
Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. 2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 95 Fiscal Year End 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 3,772,061$ 3,645,000$ 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ 2,236,836$ Contributions in relation to the actuarially
determined contribution2 (3,772,061) (3,645,000) (3,254,181) (2,796,490) (2,535,645) (2,448,744) (2,236,836) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll3 13,486,248$ 13,093,445$ 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ 10,920,524$ Contributions as a percentage of covered
payroll3 27.97% 27.84% 27.11% 24.41% 23.26% 21.88% 20.48% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.
7.15% net of pension plan investment expenses; includes Inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension
For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 96 Fiscal Year End 2013-14 1
Actuarially determined contribution 2,105,469$
Contributions in relation to the actuarially
determined contribution2 (2,105,469)
Contribution deficiency (excess)-$
Covered payroll3 10,072,452$
Contributions as a percentage of covered
payroll3 20.90%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
7.15% net of pension plan investment expenses; includes Inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
97 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution 6,718,586$ 6,320,224$ 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ 3,911,991$ Contributions in relation to the actuarially
determined contribution2 (6,718,586) (6,320,224) (5,572,994) (4,906,333) (4,528,260) (4,131,687) (3,911,991) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll3 14,505,752$ 14,083,254$ 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ 12,055,260$ Contributions as a percentage of covered
payroll3 46.32% 44.88% 41.34% 38.09% 35.65% 32.69% 32.45% Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
7.15% net of pension plan investment expenses; includes Inflation. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.
98 2013-14 1
Actuarially determined contribution 3,844,918$
Contributions in relation to the actuarially
determined contribution2 (3,844,918)
Contribution deficiency (excess)-$
Covered payroll3 12,092,757$
Contributions as a percentage of covered
payroll3 31.80%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2019-20 were derived from the June 30, 2017 funding valuation report.
7.15% net of pension plan investment expenses; includes Inflation. 99 This page intentionally left blank.
100
Measurement period 2019-20 2018-19 2017-18 2016-17
Total OPEB liability
Service cost 906,127$ 697,310$ 723,000$ 832,000$ Interest 533,762 594,793 546,000 463,000 Actual vs. expected experience - (1,655,290) - - Changes of assumptions 3,218,042 547,789 (625,000) (1,691,000) Benefit payments, including refunds of employee contributions (500,729) (524,000) (491,000) (479,000) Net change in total OPEB liability 4,157,202 (339,398) 153,000 (875,000) Total OPEB liability - beginning 14,594,602 14,934,000 14,781,000 15,656,000 Total OPEB liability - ending (a)18,751,804$ 14,594,602$ 14,934,000$ 14,781,000$ Covered employee-payroll 3 28,912,941$ 29,906,910$ 27,610,000$ 26,626,000$ Plan net OPEB liability as a percentage of covered payroll 64.86% 48.80% 54.09% 55.51% Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
The discount rate for the June 30, 2017 measurement date was increased to 3.58% from 2.85%.
The discount rate for the June 30, 2018 measurement date was increased to 3.87% from 3.58%.
The discount rate for the June 30, 2019 measurement date was decreased to 3.50% from 3.87%.
The discount rate for the June 30, 2020 measurement date was decreased to 2.21% from 3.50% Plan assets:
There are no plan assets accumulated in a trust that meets the criteria of GASB to pay related benefits for the OPEB plan.
Historical information is presented only for measurement periods for which GASB 75 is applicable.
For the Year Ended June 30, 2021
Schedule of Changes in the Net OPEB Liability and Related Ratios Required Supplementary Information (Unaudited)
City of Gilroy
Other Post Employment Benefit Plan
Last Ten Fiscal Years
101
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes:
Property taxes 15,077,258$ 15,077,258$ 17,016,855$ 1,939,597$ Sales tax 21,411,869 21,411,869 18,296,221 (3,115,648)
Transient occupancy tax 1,955,955 1,955,955 1,105,300 (850,655) Utility taxes 4,643,807 4,643,807 4,400,681 (243,126)
Franchise taxes 1,732,351 1,732,351 1,732,613 262
Document transfer tax 313,982 313,982 629,472 315,490
Motor vehicle in lieu tax 33,111 33,111 41,867 8,756
Total taxes 45,168,333 45,168,333 43,223,009 (1,945,324) Intergovernmental:
Grants 143,500 143,500 244,556 101,056 Total intergovernmental
Charges for Services:
Administrative charges 2,289,048 2,289,048 2,040,609 (248,439) Overhead to enterprise 447,799 447,799 459,171 11,372
Plan checks and inspections 2,604,871 2,604,871 4,550,708 1,945,837 Special planning services 500,000 500,000 458,761 (41,239) Special police services 54,122 54,122 14,355 (39,767)
Special fire services 150,000 150,000 163,499 13,499
Community recreation 1,234,935 1,234,935 260,115 (974,820) Total charges for services 7,280,775 7,280,775 7,947,218 666,443 Licenses and Permits:
Business licenses 713,987 713,987 540,234 (173,753)
Hazardous material permits 194,500 194,500 261,076 66,576 Building permits 2,694,783 2,694,783 1,437,490 (1,257,293) Other licenses and permits 59,276 59,276 39,504 (19,772) Total licenses and permits 3,662,546 3,662,546 2,278,304 (1,384,242) Fines:
Vehicle fines 166,580 166,580 45,517 (121,063)
Parking fines 21,150 21,150 18,582 (2,568)
Abandoned vehicle 75,000 75,000 167,589 92,589
Total Fines 262,730 262,730 231,688 (31,042) Investment income 500,890 500,890 (25,861) (526,751) Miscellaneous:
Police and fire 490,536 490,536 865,811 375,275
Community services 116,800 116,800 113,664 (3,136)
Buildings 2,000 2,000 3,963 1,963
Other 466,140 466,140 995,884 529,744
Total Miscellaneous 1,075,476 1,075,476 1,979,322 903,846 Total Revenues 58,094,250 58,094,250 55,878,236 (2,216,014) (Continued)
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2021
102
Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
General Government:
City council 224,523 214,823 218,221 (3,398)
City administration 2,144,509 1,622,415 1,398,664 223,751 Emergency services 4,020 1,100 180,937 (179,837)
Finance 783,915 689,843 709,869 (20,026)
General administration 1,510,635 1,510,635 1,616,786 (106,151) City attorney 435,000 435,000 586,598 (151,598)
Personnel 1,415,622 1,257,254 985,879 271,375
Total general government 6,518,224 5,731,070 5,696,954 34,116 Public Safety:
Police administration 3,761,447 3,763,342 4,171,332 (407,990) Police patrol operations 16,138,476 15,170,559 14,352,698 817,861 Police investigation 1,591,426 1,458,071 1,296,714 161,357 Communications 2,441,105 2,433,981 2,088,121 345,860
Police records 1,290,513 1,190,678 1,027,363 163,315
Fire administration 1,646,554 1,553,872 1,160,410 393,462 Fire operations 10,239,679 10,834,575 10,792,117 42,458 Total public safety 37,109,200 36,405,078 34,888,755 1,516,323 Public works:
Engineering 1,223,089 858,208 696,701 161,507
Street maintenance/forestry 1,276,596 1,193,645 1,236,216 (42,571) Landscape maintenance 2,943,739 2,366,982 2,601,454 (234,472) Total public works 5,443,424 4,418,835 4,534,371 (115,536) Community development:
Administration 287,539 378,675 211,921 166,754
Planning 2,553,760 2,074,211 1,834,575 239,636
B.L.E.S.1,906,931 1,535,727 1,438,038 97,689
Chemical containment hazardous materials 625,789 493,400 506,022 (12,622) Total community development 5,374,019 4,482,013 3,990,556 491,457 Recreation services:
Community recreation 3,928,008 2,777,721 1,702,666 1,075,055 Total recreation services 3,928,008 2,777,721 1,702,666 1,075,055 Capital outlay:
Capital outlay 273,869 785,869 213,465 572,404
Total capital outlay 273,869 785,869 213,465 572,404 TOTAL EXPENDITURES 58,646,744 54,600,586 51,026,767 3,573,819
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (552,494) 3,493,664 4,851,469 1,357,805 OTHER FINANCING SOURCES:
Transfers in 182,000 182,000 334,031 152,031 Transfers out (282,884) (282,884) (397,146) (114,262) Total other financing sources (100,884) (100,884) (63,115) 37,769 NET CHANGE IN FUND BALANCE (653,378)$ 3,392,780$ 4,788,354 1,395,574$ FUND BALANCE:
Beginning of Year 14,844,889
End of Year 19,633,243$
(Concluded)
For the Year Ended June 30, 2021
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund (Continued) 103
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104
The City Administrator submits to the City Council a proposed budget for all funds. Council then proceeds to make any changes to the proposed budget it deems necessary. Before adopting the proposed budget, Council holds a public hearing for any interested party desiring to be heard. Notice must be given 10 days prior to the hearing and must be published in the City’s official newspaper. After the conclusion of the public hearing, Council may further make revisions to the proposed budget.
Thereafter, Council adopts the budget with revisions, if any.
Legally adopted budgets for all governmental funds are established on a basis consistent with accounting principles generally accepted in the United States of America. City Council approval is required for all revisions to the adopted budget that require additional appropriations or new funding. City Administrator approval is required for all transfers within the adopted budget.
Operational appropriations lapse at fiscal year-end unless City Council takes formal action to carry forward appropriations into the following fiscal year.
The level on which expenditures may not legally exceed appropriations is the fund level. The budgetary comparison schedules are not presented for the Lease Revenue Bond Series 2020A Debt Service Fund.
City of Gilroy
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2021
Budget and Budgetary Accounting
105
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106
SUPPLEMENTARY INFORMATION
107
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Charges for services 6,194,926$ 6,194,926$ 4,325,852$ (1,869,074)$ Investment income 153,606 153,606 4,624 (148,982) Miscellaneous - - 281,104 281,104 Total revenues 6,348,532 6,348,532 4,611,580 (1,736,952) EXPENDITURES:
Current:
Public works 1,292,600 1,611,596 8,429 1,603,167 Debt service:
Interest and fiscal charges 58,715 58,715 91,343 (32,628) Total expenditures 1,351,315 1,670,311 99,772 1,570,539
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,997,217 4,678,221 4,511,808 (166,413) OTHER FINANCIN SOURCES (USES):
Transfers in 40,763 40,763 40,763 - Transfers out (4,330,995) (4,330,995) (3,591,375) 739,620 Total other financing sources (uses)(4,290,232) (4,290,232) (3,550,612) 739,620 NET CHANGE IN FUND BALANCE 706,985$ 387,989$ 961,196 573,207$ FUND BALANCE:
Beginning of Year (6,358,684)
End of Year (5,397,488)$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Facilities Impact Capital Projects Fund
For the Year Ended June 30, 2021
108
Community Development Block Grant - This fund is used to account for Housing and Urban Development grants used to operate the Community Development Grant Program.
Rehabilitation Loans - This fund is used to account for loan proceeds used from the state for housing projects.
Housing Trust Fund - This fund is used to account for local funds used to address affordable housing and homelessness, for both capital projects and services provided to homebuyers regarding down payment assistance and administrative oversight.
Community Facilities District - This fund is used to account for funds from special landscape assessment districts used to maintain improvements of a public nature that provide benefits to the property owner.
Vehicle License Fee - This fund is used to account for vehicle license fees received from Santa Clara County to be used for pavement maintenance, operations, signals, signs and markings.
Measure B - This fund is used to account for street and road maintenance and repair projects.
Traffic Impact - This fund is used to finance the construction of streets, bridges, interchanges and traffic signals within the City as described in the City of Gilroy’s Circulation Element. Improvements and expansions of the City’s traffic circulation system are needed to accommodate development of new residential, commercial and industrial uses with the City. The traffic impact fee is used to expand system capacity to accommodate new development.
Storm Drains - This fund is used finance the construction of drainage collection and distribution systems within the City as described in the City of Gilroy’s Storm Drain Master Plan. Improvements and expansions of the City’s storm drain system are needed to accommodate development of new residential, commercial and industrial uses within the City. The storm drain development fee is used to expand system capacity to accommodate new development.
Utility Undergrounding - This fund is used to allocate resources to underground existing overhead utilities (electricity, telephone and cable) along fully constructed streets. The City collects the fee from developers as development occurs along these streets.
Street Trees Development - This fund is used to account for the collection of a front footage fee to plant trees in new developments.
Prop 172 Sales Tax - This fund is used to account for funds received from state sales tax used for public safety activities.
NONMAJOR GOVERNMENTAL FUNDS
These funds account for revenue sources that are restricted for specific purposes (other than those resources to be expended solely for the construction of major capital facilities).
Gas Tax - This fund is used to account for the City’s share of state gasoline tax required to be used for construction and maintenance of the City’s road network system.
Pavement Management - This fund is used to account for County Measure A and other transportation grants used to repair and rebuild various roads.
Public Safety Grants - This fund is used to account for state and federal grants used for public safety activities.
SPECIAL REVENUE FUNDS
BANS 2009 Financing -This fund is used to account for the 2009 short-term refinancing of the City’s public facilities debt. The City included its cost for the Christopher High School joint use public facilities with GUSD in the refinancing.
Los Arroyos Fund - This fund is used to account for funds received from South County Housing to support future homebuyers in the Los Arroyos neighborhood.
CAPITAL PROJECTS FUNDS
These funds account for resources intended to be used primarily for major capital facilities (other than those financed by revenues of proprietary funds).
Capital Projects -This fund is used to account for major capital projects other than those financed by revenues of proprietary funds, including projects that are partially funded from other sources such as grants or fuel tax.
CalHome Funds - This fund is used to account funds received from South County Housing to support future homebuyers. 109
PERMANENT FUNDS
Museum Trust - This fund was established by the sale of a vase by the Gilroy Museum. The purpose in selling the vase was to create an endowment for the museum. This would generate interest income for the museum.
Henry Miller - This fund is used to account for a donation from Henry Miller. The annual interest earned on the original donation of $15,000 is the amount donated to the poor of Gilroy each Christmas season.
Lease Revenue Bonds Series 2020A - This fund is used to account for the payments of debt service of principal and interest for the PFFA Lease Revenue 2020A Bonds.
Sewer Development - This fund is used to account for the construction of sewer collection and conveyance systems within the City as described in the City of Gilroy’s Sewer Master Plan. Improvements and expansions of the City’s sewer system are needed to accommodate development of new residential, commercial and industrial uses within the City. The sewer development fee is used to expand system capacity to accommodate new development.
CA Energy Commission Loan -This fund is used to account for the payments of debt service of principal and interest for the loan agreement between the CA Energy Commission (CEC) and the City for the Wide LED streetlight replacement project.
Gilroy Community Library -This fund is used to account for payments of the indebtedness of the refinanced 2019 series A and B General Obligation Bonds for the Gilroy Community Library.
Water Development - This fund is used to account for the construction of water transmission, distribution and storage systems within Pressure Zone 1 of the City’s water system as described in the City of Gilroy’s Water Master Plan. Improvements and expansions of the City’s water system are needed to accommodate development of new residential, commercial and industrial uses within the City.
The water development fee is used to expand capacity to accommodate new development.
Refunding Lease 2010 -This fund is used to account for the payments of debt service of principal and interest for the PFFA Refunding Lease 2010 Bonds.
2013 Refunding Bond -This fund is used to account for the payments of debt service of principal and interest for the 2013 Lease Revenue Refunding Bonds.
Bank Interest - This fund is used to account for the interest earned on the citywide treasurer’s investment pool. Quarterly, the earnings are allocated to the appropriate funds. At the end of the fiscal year, the earnings of those funds not subject to interest are transferred to the Capital Projects Fund.
Gilroy Community Library - This fund is used to account for the acquisition, construction and improvement of facilities to be used as a public library within the City. Funding was provided by issuance of general obligation bonds. Interest earned on specific LAIF account will be recorded directly to the Library fund.
DEBT SERVICE FUNDS
These funds account for resources accumulated for the payment of principal and interest (other than that for proprietary fund debt).
NONMAJOR GOVERNMENTAL FUNDS (Continued)
CAPITAL PROJECTS FUNDS (Continued)
110
Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
ASSETS
Cash and investments 6,157,416$ 178,466$ 291,149$ 13,946$ Receivables:
Accounts - - 34,381 - Due from other governments 103,159 - 98,884 57,335 Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - - - Total assets 6,260,575$ 178,466$ 424,414$ 71,281$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 695,200$ -$ 10,486$ -$ Accrued liabilities 14,383 - 26,183 - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 709,583 - 36,669 - Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted 5,550,992 178,466 387,745 71,281 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 5,550,992 178,466 387,745 71,281 Total liabilities, deferred inflows of
resources, and fund balances 6,260,575$ 178,466$ 424,414$ 71,281$ (Continued)
City of Gilroy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
111
Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
ASSETS
Cash and investments -$ 230$ 740,604$ 1,388,841$ Receivables:
Accounts - - - - Due from other governments 73,460 - - - Interest 395,011 - 320,760 - Loans 1,712,075 - 1,322,080 - Advances from other funds - - - - Land held for resale - - 706,754 - Restricted assets:
Cash and investments with fiscal agents - - - - Total assets 2,180,546$ 230$ 3,090,198$ 1,388,841$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 91,241$ -$ 41,577$ 3,722$ Accrued liabilities 8,621 - 15,473 22,246 Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 99,862 - 57,050 25,968 Deferred inflows of resources:
Unavailable revenues 401,363 - 320,760 - Total deferred inflows of resources 401,363 - 320,760 - Fund balances:
Restricted 1,679,321 230 2,712,388 1,362,873 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 1,679,321 230 2,712,388 1,362,873 Total liabilities, deferred inflows of
resources, and fund balances 2,180,546$ 230$ 3,090,198$ 1,388,841$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
112
Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
ASSETS
Cash and investments 2,041,259$ 1,218,746$ 407,538$ 294,243$ Receivables:
Accounts - - - - Due from other governments - - - - Interest - - - 57,765 Loans - - - 180,600 Advances from other funds - - - - Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - - - Total assets 2,041,259$ 1,218,746$ 407,538$ 532,608$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 123$ 533,258$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - 238,365 Due to the component unit - - - - Total liabilities 123 533,258 - 238,365 Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted 2,041,136 685,488 407,538 294,243 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 2,041,136 685,488 407,538 294,243 Total liabilities, deferred inflows of
resources, and fund balances 2,041,259$ 1,218,746$ 407,538$ 532,608$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
113
BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
ASSETS
Cash and investments 5,404,205$ 34,968$ 14,342,877$ 1,143,471$ Receivables:
Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - - 939,317 Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - - - Total assets 5,404,205$ 34,968$ 14,342,877$ 2,082,788$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 27,435$ -$ 84,351$ 3,934$ Accrued liabilities 100,233 - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 127,668 - 84,351 3,934 Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted - 34,968 14,258,526 2,078,854 Assigned 5,276,537 - - - Unassigned (deficit)- - - - Total fund balances 5,276,537 34,968 14,258,526 2,078,854 Total liabilities, deferred inflows of
resources, and fund balances 5,404,205$ 34,968$ 14,342,877$ 2,082,788$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Capital Projects Funds
114
Street
Utility Trees Sewer Water
Undergrounding Development Development Development
ASSETS
Cash and investments 8$ 139,092$ 12,891,194$ 5,106,671$ Receivables:
Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - 1,427,388 - Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - - - Total assets 8$ 139,092$ 14,318,582$ 5,106,671$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 3,934$ 4,604$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - 1,132,239 - Total liabilities - - 1,136,173 4,604 Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted 8 139,092 13,182,409 5,102,067 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 8 139,092 13,182,409 5,102,067 Total liabilities, deferred inflows of
resources, and fund balances 8$ 139,092$ 14,318,582$ 5,106,671$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Capital Projects Funds
115
Gilroy Refunding 2013
Bank Community Lease Refunding
Interest Library 2010 Bond
ASSETS
Cash and investments -$ 5,254,686$ 65$ 86,833$ Receivables:
Accounts - - - - Due from other governments - 4,274 - - Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - - 920,288 Total assets -$ 5,258,960$ 65$ 1,007,121$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 54$ -$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities 54 - - - Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted - 5,258,960 65 1,007,121 Assigned - - - - Unassigned (deficit)(54) - - - Total fund balances (54) 5,258,960 65 1,007,121 Total liabilities, deferred inflows of
resources, and fund balances -$ 5,258,960$ 65$ 1,007,121$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Capital Projects Funds Debt Service Funds
116
Permanent Funds
Gilroy CA Energy Lease Revenue
Community Commission Bond Series Henry Miller
Library Loan 2020A Library
ASSETS
Cash and investments 1,237,715$ 20,033$ 675,110$ 15,053$ Receivables:- -
Accounts - - - - Due from other governments - - - - Interest - - - - Loans - - - - Advances from other funds - - - - Land held for resale - - - - Restricted assets:
Cash and investments with fiscal agents - - 3 - Total assets 1,237,715$ 20,033$ 675,113$ 15,053$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ -$ Accrued liabilities - - - - Deposits payable - - - - Unearned revenue - - - - Due to the component unit - - - - Total liabilities - - - - Deferred inflows of resources:
Unavailable revenues - - - - Total deferred inflows of resources - - - - Fund balances:
Restricted 1,237,715 20,033 675,113 15,053 Assigned - - - - Unassigned (deficit)- - - - Total fund balances 1,237,715 20,033 675,113 15,053 Total liabilities, deferred inflows of
resources, and fund balances 1,237,715$ 20,033$ 675,113$ 15,053$ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Debt Service Funds
117
Permanent Funds
Total Other
Museum Governmental
Trust Funds
ASSETS
Cash and investments 44,853$ 59,129,272$ Receivables:
Accounts - 34,381
Due from other governments - 337,112 Interest - 773,536
Loans - 3,214,755
Advances from other funds - 2,366,705 Land held for resale - 706,754 Restricted assets:
Cash and investments with fiscal agents - 920,291 Total assets 44,853$ 67,482,806$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ 1,499,919$ Accrued liabilities - 187,139 Deposits payable 35,299 35,299
Unearned revenue - 238,365 Due to the component unit - 1,132,239 Total liabilities 35,299 3,092,961
Deferred inflows of resources:
Unavailable revenues - 722,123 Total deferred inflows of resources - 722,123 Fund balances:
Restricted 9,554 58,391,239
Assigned - 5,276,537
Unassigned (deficit)- (54) Total fund balances 9,554 63,667,722 Total liabilities, deferred inflows of
resources, and fund balances 44,853$ 67,482,806$ (Concluded)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
118
Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
Revenues:
Taxes -$ -$ -$ 288,314$ Intergovernmental 2,229,186 333,034 656,371 - Charges for services - - - - Investment income 34,558 308 2,486 80 Miscellaneous - - 90,678 - Total revenues 2,263,744 333,342 749,535 288,394 Expenditures:
Current:
General government - - - - Public safety - - 716,554 250,874 Community development - - - - Public works 551,141 - - - Capital outlay 2,554,185 216,623 55,785 -
Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 3,105,326 216,623 772,339 250,874 Revenues over (under)
expenditures (841,582) 116,719 (22,804) 37,520 Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - 8,119 118,965 - Transfers out (107,363) - (197,168) (37,520) Total other financing sources (uses)(107,363) 8,119 (78,203) (37,520) Net Change in Fund Balances (948,945) 124,838 (101,007) - Fund balances:
Beginning of year 6,499,937 53,628 488,752 71,281 End of year 5,550,992$ 178,466$ 387,745$ 71,281$ (Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2021
119
Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
Revenues:
Taxes -$ -$ -$ 468,109$ Intergovernmental 684,138 - - - Charges for services - - - - Investment income 30,873 - 8,572 5,942 Miscellaneous 4,896 - 270,122 - Total revenues 719,907 - 278,694 474,051 Expenditures:
Current:
General government - - - - Public safety - - - - Community development 1,009,272 - 524,084 - Public works - - - 346,346 Capital outlay 252,791 - - - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 1,262,063 - 524,084 346,346 Revenues over (under)
expenditures (542,156) - (245,390) 127,705 Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in 148,183 - 18,664 - Transfers out (60,338) - - - Total other financing sources (uses)87,845 - 18,664 - Net Change in Fund Balances (454,311) - (226,726) 127,705 Fund balances:
Beginning of year 2,133,632 230 2,939,114 1,235,168 End of year 1,679,321$ 230$ 2,712,388$ 1,362,873$ (Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
120
Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
Revenues:
Taxes -$ -$ -$ -$ Intergovernmental 2,052,798 366,285 - 45,906 Charges for services - - - - Investment income 7,135 6,568 2,013 1,206 Miscellaneous - - - 77,118 Total revenues 2,059,933 372,853 2,013 124,230 Expenditures:
Current:
General government - - - - Public safety - - - - Community development - - - - Public works 22,633 171,331 - - Capital outlay - 651,470 - - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 22,633 822,801 - - Revenues over (under)
expenditures 2,037,300 (449,948) 2,013 124,230 Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net Change in Fund Balances 2,037,300 (449,948) 2,013 124,230 Fund balances:
Beginning of year 3,836 1,135,436 405,525 170,013 End of year 2,041,136$ 685,488$ 407,538$ 294,243$ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
121
BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
Revenues:
Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - - 2,918,793 60,897 Investment income 31,445 173 63,221 19,030 Miscellaneous 113,900 - - - Total revenues 145,345 173 2,982,014 79,927 Expenditures:
Current:
General government - - - - Public safety - - - - Community development - - - - Public works - - 124,404 48,787 Capital outlay 236,816 - 2,061,922 - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 236,816 - 2,186,326 48,787 Revenues over (under)
expenditures (91,471) 173 795,688 31,140 Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - - 48,769 1,196 Transfers out - - - - Total other financing sources (uses)- - 48,769 1,196 Net Change in Fund Balances (91,471) 173 844,457 32,336 Fund balances:
Beginning of year 5,368,008 34,795 13,414,069 2,046,518 End of year 5,276,537$ 34,968$ 14,258,526$ 2,078,854$ (Continued)
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
122
Street
Utility Trees Sewer Water
Undergrounding Development Development Development
Revenues:
Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - 2,396 1,764,901 464,810 Investment income 35 681 80,738 23,833 Miscellaneous - - - - Total revenues 35 3,077 1,845,639 488,643 Expenditures:
Current:
General government - - - - Public safety - - - - Community development - - - - Public works - - 1,375,571 48,709 Capital outlay - - - - Debt service:
Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures - - 1,375,571 48,709 Revenues over (under)
expenditures 35 3,077 470,068 439,934 Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - - - Transfers in - 27 28,351 5,893 Transfers out (8,119) - (692,875) - Total other financing sources (uses)(8,119) 27 (664,524) 5,893 Net Change in Fund Balances (8,084) 3,104 (194,456) 445,827 Fund balances:
Beginning of year 8,092 135,988 13,376,865 4,656,240 End of year 8$ 139,092$ 13,182,409$ 5,102,067$ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Capital Projects Funds
123
Gilroy Refunding 2013
Bank Community Lease Refunding
Interest Library 2010 Bond
Revenues:
Taxes -$ -$ -$ -$ Intergovernmental - - - - Charges for services - - - - Investment income - 29,303 20,224 787 Miscellaneous - - - - Total revenues - 29,303 20,224 787 Expenditures:
Current:
General government - - 6,914 5,707 Public safety - - - - Community development - - - - Public works - - - - Capital outlay - - - - Debt service:
Principal retirement - - - 945,000 Interest and fiscal charges - - 463,382 891,669 Total expenditures - - 470,296 1,842,376 Revenues over (under)
expenditures - 29,303 (450,072) (1,841,589) Other financing sources (uses):
Issuance of debt - - - - Payment to refunded bond escrow - - (17,555,000) - Transfers in - - 17,969,653 1,845,169 Transfers out - - (1,892,247) - Total other financing sources (uses)- - (1,477,594) 1,845,169 Net Change in Fund Balances - 29,303 (1,927,666) 3,580 Fund balances:
Beginning of year (54) 5,229,657 1,927,731 1,003,541 End of year (54)$ 5,258,960$ 65$ 1,007,121$ (Continued)
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Debt Service Funds
124
Permanent Funds
Gilroy CA Energy Lease Revenue
Community Commission Bond Series Henry
Library Loan 2020A Miller
Revenues:
Taxes 1,937,065$ -$ -$ -$ Intergovernmental - - - - Charges for services - - - - Investment income 3,299 159 6,717 82 Miscellaneous - - 50,129 - Total revenues 1,940,364 159 56,846 82 Expenditures:
Current:
General government 6,680 - 212,500 2,267 Public safety - - - - Community development - - - - Public works - - - - Capital outlay - - - - Debt service:
Principal retirement 990,810 91,515 790,000 - Interest and fiscal charges 843,675 8,347 485,958 - Total expenditures 1,841,165 99,862 1,488,458 2,267 Revenues over (under)
expenditures 99,199 (99,703) (1,431,612) (2,185) Other financing sources (uses):
Issuance of debt - - 16,459,825 - Payment to refunded bond escrow - - - - Transfers in - 99,863 3,638,453 - Transfers out - - (17,969,653) - Total other financing sources (uses)- 99,863 2,128,625 - Net Change in Fund Balances 99,199 160 697,013 (2,185) Fund balances:
Beginning of year, as restated (Note 16) 1,138,516 19,873 (21,900) 17,238 End of year 1,237,715$ 20,033$ 675,113$ 15,053$ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Debt Service Funds
125
Permanent Funds
Total Other
Museum Governmental
Trust Funds
Revenues:
Taxes -$ 2,693,488$
Intergovernmental - 6,367,718
Charges for services - 5,211,797
Investment income 221 379,689
Miscellaneous - 606,843
Total revenues 221 15,259,535
Expenditures:
Current:
General government - 234,068
Public safety - 967,428
Community development - 1,533,356
Public works - 2,688,922
Capital outlay - 6,029,592
Debt service:
Principal retirement - 2,817,325
Interest and fiscal charges - 2,693,031
Total expenditures - 16,963,722
Revenues over (under)
expenditures 221 (1,704,187)
Other financing sources (uses):
Issuance of debt - 16,459,825
Payment to refunded bond escrow - (17,555,000)
Transfers in - 23,931,305
Transfers out - (20,965,283)
Total other financing sources (uses)- 1,870,847
Net Change in Fund Balances 221 166,660
Fund balances:
9,333 63,501,062 Beginning of year, as restated (Note 16) End of year 9,554$ 63,667,722$
(Concluded)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
126
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 2,007,500$ 2,007,500$ 2,229,186$ 221,686$ Investment income 114,872 114,872 34,558 (80,314) Total Revenues 2,122,372 2,122,372 2,263,744 141,372 Expenditures:
Current:
Public works 1,509,089 4,654,107 551,141 4,102,966 Capital outlay 1,047,000 2,481,414 2,554,185 (72,771) Total Expenditures 2,556,089 7,135,521 3,105,326 4,030,195
REVENUE OVER
(UNDER) EXPENDITURES (433,717) (5,013,149) (841,582) 4,171,567 Other Financing Sources (Uses):
Transfers out (107,363) (107,363) (107,363) - Total Other Financing Sources (Uses)(107,363) (107,363) (107,363) - NET CHANGE IN FUND BALANCE (541,080)$ (5,120,512)$ (948,945) 4,171,567$ FUND BALANCE:
Beginning of Year 6,499,937
End of Year 5,550,992$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2021
Budgeted Amounts
Gas Tax Special Revenue Fund
127
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ -$ 333,034$ 333,034$ Investment income - - 308 308 Total Revenues - - 333,342 333,342 Expenditures:
Capital outlay - 304,385 216,623 87,762 Total Expenditures - 304,385 216,623 87,762
REVENUE OVER
(UNDER) EXPENDITURES - (304,385) 116,719 421,104 Other Financing Sources (Uses):
Transfers in - - 8,119 8,119 Total Other Financing Sources (Uses)- - 8,119 8,119 NET CHANGE IN FUND BALANCE -$ (304,385)$ 124,838 429,223$ FUND BALANCE:
Beginning of Year 53,628
End of Year 178,466$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Pavement Management Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
128
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 551,800$ 1,027,656$ 656,371$ (371,285)$ Investment income 11,043 11,043 2,486 (8,557) Miscellaneous - - 90,678 90,678 Total Revenues 562,843 1,038,699 749,535 (289,164) Expenditures:
Current:
Public safety 614,686 1,009,183 716,554 292,629 Capital outlay - 126,000 55,785 70,215 Total Expenditures 614,686 1,135,183 772,339 362,844
REVENUE OVER
(UNDER) EXPENDITURES (51,843) (96,484) (22,804) 73,680 Other Financing Sources (Uses):
Transfers in 157,885 157,885 118,965 (38,920) Transfers out (100,000) (100,000) (197,168) (97,168) Total Other Financing Sources (Uses)57,885 57,885 (78,203) (136,088) NET CHANGE IN FUND BALANCE 6,042$ (38,599)$ (101,007) (62,408)$ FUND BALANCE:
Beginning of Year 488,752
End of Year 387,745$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Safety Grants Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
129
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 261,000$ 261,000$ 288,314$ 27,314$ Investment income 723 723 80 (643) Total Revenues 261,723 261,723 288,394 26,671 Expenditures:
Current:
Public safety 258,129 258,129 250,874 7,255 Total Expenditures 258,129 258,129 250,874 7,255
REVENUE OVER
(UNDER) EXPENDITURES 3,594 3,594 37,520 33,926 Other Financing Sources (Uses):
Transfers out - - (37,520) (37,520) Total Other Financing Sources (Uses)- - (37,520) (37,520) NET CHANGE IN FUND BALANCE 3,594$ 3,594$ - (3,594)$ FUND BALANCE:
Beginning of Year 71,281
End of Year 71,281$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop 172 Sales Tax Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
130
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 509,869$ 509,869$ 684,138$ 174,269$ Investment income 9,009 9,009 30,873 21,864 Miscellaneous - - 4,896 4,896 Total Revenues 518,878 518,878 719,907 201,029 Expenditures:
Current:
Community development 253,807 319,807 1,009,272 (689,465) Capital outlay - 169,000 252,791 (83,791) Total expenditures 253,807 488,807 1,262,063 (773,256)
REVENUE OVER
(UNDER) EXPENDITURES 265,071 30,071 (542,156) (572,227) Other Financing Sources (Uses):
Transfers in - - 148,183 148,183 Transfers out (53,500) (53,500) (60,338) (6,838) Total Other Financing Sources (Uses)(53,500) (53,500) 87,845 141,345 NET CHANGE IN FUND BALANCE 211,571$ (23,429)$ (454,311) (430,882)$ FUND BALANCE:
Beginning of Year 2,133,632
End of Year 1,679,321$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
131
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 5$ 5$ -$ (5)$ Total revenues 5 5 - (5) Net Change in Fund Balances 5$ 5$ - (5)$ Fund balances:
Beginning of year 230
End of year 230$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Rehabilitation Loans Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
132
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 31,441$ 31,441$ 8,572$ (22,869)$ Miscellaneous 55,000 55,000 270,122 215,122 Total revenues 86,441 86,441 278,694 192,253 Expenditures:
Current:
Community development 150,883 150,883 524,084 (373,201) Total expenditures 150,883 150,883 524,084 (373,201) Revenues over (under)
expenditures (64,442) (64,442) (245,390) (180,948) Other financing sources (uses):
Transfers in - - 18,664 18,664 Total other financing sources (uses)- - 18,664 18,664 Net Change in Fund Balances (64,442)$ (64,442)$ (226,726) (162,284)$ Fund balances:
Beginning of year 2,939,114
End of year 2,712,388$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Trust Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
133
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 380,000$ 380,000$ 468,109$ 88,109$ Investment income 16,855 16,855 5,942 (10,913) Total revenues 396,855 396,855 474,051 77,196 Expenditures:
Current:
Public works 369,477 371,091 346,346 24,745
Total expenditures 369,477 371,091 346,346 24,745 Net Change in Fund Balances 27,378$ 25,764$ 127,705 101,941$ Fund balances:
Beginning of year 1,235,168
End of year 1,362,873$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Facilities District Special Revenue Fund
For the Year Ended June 30, 2021
134
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 1,000,804$ 1,000,804$ 2,052,798$ 1,051,994$ Investment income - - 7,135 7,135 Total revenues 1,000,804 1,000,804 2,059,933 1,059,129 Expenditures:
Current:
Public works 1,000,804 1,000,804 22,633 978,171 Total expenditures 1,000,804 1,000,804 22,633 978,171 Net Change in Fund Balances -$ -$ 2,037,300 2,037,300$ Fund balances:
Beginning of year 3,836
End of year 2,041,136$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure B Special Revenue Fund
For the Year Ended June 30, 2021
135
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 320,000$ 320,000$ 366,285$ 46,285$ Investment income 37,126 37,126 6,568 (30,558) Total revenues 357,126 357,126 372,853 15,727 Expenditures:
Current:
Public works 20,000 450,700 171,331 279,369
Capital outlay 235,100 849,650 651,470 198,180 Total expenditures 255,100 1,300,350 822,801 477,549 Net Change in Fund Balances 102,026$ (943,224)$ (449,948) 493,276$ Fund balances:
Beginning of year 1,135,436
End of year 685,488$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vehicle License Fee Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
136
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 7,634 7,634 2,013 (5,621) Net Change in Fund Balances 7,634$ 7,634$ 2,013 (5,621)$ Fund balances:
Beginning of year 405,525
End of year 407,538$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Los Arroyos Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
137
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ -$ 45,906$ 45,906$ Investment income 2,220 2,220 1,206 (1,014) Miscellaneous - - 77,118 77,118 Total revenues 2,220 2,220 124,230 122,010 Net Change in Fund Balances 2,220$ 2,220$ 124,230 122,010$ Fund balances:
Beginning of year 170,013
End of year 294,243$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CalHome Funds Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2021
138
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 34,815$ 34,815$ 31,445$ (3,370)$ Miscellaneous - - 113,900 113,900 Total revenues 34,815 34,815 145,345 110,530 Expenditures:
Capital outlay - 307,270 236,816 70,454 Total expenditures - 307,270 236,816 70,454 Net Change in Fund Balances 34,815$ (272,455)$ (91,471) 180,984$ Fund balances:
Beginning of year 5,368,008
End of year 5,276,537$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2021
139
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 276$ 276$ 173$ (103)$ Total revenues 276 276 173 (103) Net Change in Fund Balances 276$ 276$ 173 (103)$ Fund balances:
Beginning of year 34,795
End of year 34,968$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual BANS 2009 Financing Capital Projects Fund
For the Year Ended June 30, 2021
140
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 3,776,744$ 3,776,744$ 2,918,793$ (857,951)$ Investment income 302,924 302,924 63,221 (239,703) Total revenues 4,079,668 4,079,668 2,982,014 (1,097,654) Expenditures:
Current:
Public works 10,296 1,201,782 124,404 1,077,378 Capital outlay 594,000 1,928,355 2,061,922 (133,567) Total expenditures 604,296 3,130,137 2,186,326 943,811 Revenues over (under)
expenditures 3,475,372 949,531 795,688 (153,843) Other financing sources (uses):
Transfers in 48,769 48,769 48,769 - Total other financing sources (uses)48,769 48,769 48,769 - Net Change in Fund Balances 3,524,141$ 998,300$ 844,457 (153,843)$ Fund balances:
Beginning of year 13,414,069
End of year 14,258,526$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Impact Capital Projects Fund
For the Year Ended June 30, 2021
141
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 52,931$ 52,931$ 60,897$ 7,966$ Investment income 27,234 27,234 19,030 (8,204) Total revenues 80,165 80,165 79,927 (238) Expenditures:
Current:
Public works 155,155 362,509 48,787 313,722 Total expenditures 155,155 362,509 48,787 313,722 Revenues over (under)
expenditures (74,990) (282,344) 31,140 313,484 Other financing sources (uses):
Transfers in 68,831 68,831 1,196 (67,635) Total other financing sources (uses)68,831 68,831 1,196 (67,635) Net Change in Fund Balances (6,159)$ (213,513)$ 32,336 245,849$ Fund balances:
Beginning of year 2,046,518
End of year 2,078,854$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Storm Drains Capital Projects Fund
For the Year Ended June 30, 2021
142
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 181$ 181$ 35$ (146)$ Other financing sources (uses):
Transfers out - - (8,119) (8,119) Total other financing sources (uses)- - (8,119) (8,119) Net Change in Fund Balances 181$ 181$ (8,084) (8,265)$ Fund balances:
Beginning of year 8,092
End of year 8$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Utility Undergrounding Capital Projects Fund
For the Year Ended June 30, 2021
143
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 2,600$ 2,600$ 2,396$ (204)$ Investment income 3,032 3,032 681 (2,351) Total revenues 5,632 5,632 3,077 (2,555) Other financing sources (uses):
Transfers in 27 27 27 - Total other financing sources (uses)27 27 27 - Net Change in Fund Balances 5,659$ 5,659$ 3,104 (2,555)$ Fund balances:
Beginning of year 135,988
End of year 139,092$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Trees Development Capital Projects Fund
For the Year Ended June 30, 2021
144
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 2,376,306$ 2,376,306$ 1,764,901$ (611,405)$ Investment income 321,166 321,166 80,738 (240,428) Total revenues 2,697,472 2,697,472 1,845,639 (851,833) Expenditures:
Current:
Public works 508,078 584,601 1,375,571 (790,970) Total expenditures 508,078 584,601 1,375,571 (790,970) Revenues over (under)
expenditures 2,189,394 2,112,871 470,068 (1,642,803) Other financing sources (uses):
Transfers in 352,847 352,847 28,351 (324,496) Transfers out (694,146) (694,146) (692,875) 1,271 Total other financing sources (uses)(341,299) (341,299) (664,524) (323,225) Net Change in Fund Balances 1,848,095$ 1,771,572$ (194,456) (1,966,028)$ Fund balances:
Beginning of year 13,376,865
End of year 13,182,409$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Sewer Development Capital Projects Fund
For the Year Ended June 30, 2021
145
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 608,015$ 608,015$ 464,810$ (143,205)$ Investment income 102,996 102,996 23,833 (79,163) Total revenues 711,011 711,011 488,643 (222,368) Expenditures:
Current:
Public works 2,902,219 4,467,920 48,709 4,419,211 Total expenditures 2,902,219 4,467,920 48,709 4,419,211 Revenues over (under)
expenditures (2,191,208) (3,756,909) 439,934 4,196,843 Other financing sources (uses):
Transfers in 5,893 5,893 5,893 - Total other financing sources (uses)5,893 5,893 5,893 - Net Change in Fund Balances (2,185,315)$ (3,751,016)$ 445,827 4,196,843$ Fund balances:
Beginning of year 4,656,240
End of year 5,102,067$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Water Development Capital Projects Fund
For the Year Ended June 30, 2021
146
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 3$ 3$ -$ (3)$ Total revenues 3 3 - (3) Net Change in Fund Balances 3$ 3$ - (3)$ Fund balances:
Beginning of year (54)
End of year (54)$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Bank Interest Capital Projects Fund
For the Year Ended June 30, 2021
147
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 89,485$ 89,485$ 29,303$ (60,182)$ Total revenues 89,485 89,485 29,303 (60,182) Net Change in Fund Balances 89,485$ 89,485$ 29,303 (60,182)$ Fund balances:
Beginning of year 5,229,657
End of year 5,258,960$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Capital Projects Fund
For the Year Ended June 30, 2021
148
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 62,500$ 62,500$ 20,224$ (42,276)$ Total revenues 62,500 62,500 20,224 (42,276) Expenditures:
Current:
General government 5,500 5,500 6,914 (1,414) Debt service:
Interest and fiscal charges 810,706 810,707 463,382 347,325 Total expenditures 816,206 816,207 470,296 345,911 Revenues over (under)
expenditures (753,706) (753,707) (450,072) 303,635 Other financing sources (uses):
Payment to refunded bond escrow (930,000) (930,000) (17,555,000) (16,625,000) Transfers in 1,746,206 1,746,206 17,969,653 16,223,447 Transfers out - - (1,892,247) (1,892,247) Total other financing sources (uses)816,206 816,206 (1,477,594) (2,293,800) Net Change in Fund Balances 62,500$ 62,499$ (1,927,666) (1,990,165)$ Fund balances:
Beginning of year 1,927,731
End of year 65$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Refunding Lease 2010 Debt Service Fund
For the Year Ended June 30, 2021
149
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 787$ 787$ Total revenues - - 787 787 Expenditures:
Current:
General government 8,500 8,500 5,707 2,793 Debt service:
Principal retirement 945,000 945,000 945,000 - Interest and fiscal charges 891,669 891,669 891,669 - Total expenditures 1,845,169 1,845,169 1,842,376 2,793 Revenues over (under)
expenditures (1,845,169) (1,845,169) (1,841,589) 3,580 Other financing sources (uses):
Transfers in 1,845,169 1,845,169 1,845,169 - Total other financing sources (uses)1,845,169 1,845,169 1,845,169 - Net Change in Fund Balances -$ -$ 3,580 3,580$ Fund balances:
Beginning of year 1,003,541
End of year 1,007,121$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2013 Refunding Bond Debt Service Fund
For the Year Ended June 30, 2021
150
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 2,110,683$ 2,110,683$ 1,937,065$ (173,618)$ Investment income 27,179 27,179 3,299 (23,880) Total revenues 2,137,862 2,137,862 1,940,364 (197,498) Expenditures:
Current:
General government 5,200 5,200 6,680 (1,480) Debt service:
Principal retirement 890,000 890,000 990,810 (100,810) Interest and fiscal charges 1,215,483 1,215,483 843,675 371,808 Total expenditures 2,110,683 2,110,683 1,841,165 269,518 Net Change in Fund Balances 27,179$ 27,179$ 99,199 72,020$ Fund balances:
Beginning of year 1,138,516
End of year 1,237,715$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Debt Service Fund
For the Year Ended June 30, 2021
151
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 822$ 822$ 159$ (663)$ Total revenues 822 822 159 (663) Expenditures:
Debt service:
Principal retirement 91,516 91,515 91,515 - Interest and fiscal charges 8,347 8,347 8,347 - Total expenditures 99,863 99,862 99,862 - Revenues over (under)
expenditures (99,041) (99,040) (99,703) (663) Other financing sources (uses):
Transfers in 99,863 99,863 99,863 - Total other financing sources (uses)99,863 99,863 99,863 - Net Change in Fund Balances 822$ 823$ 160 (663)$ Fund balances:
Beginning of year 19,873
End of year 20,033$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CA Energy Commission Loan Debt Service Fund
For the Year Ended June 30, 2021
152
General Liability -This fund is used to account for all expenses relating to the City’s general liability insurance. The costs are recovered through an annual “user fee” which is charged to various funds.
INTERNAL SERVICE FUNDS
These funds account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered or the services rendered to those departments.
Fleet Services -This fund is used to account for the operations required to maintain the City’s vehicles. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have vehicle use. This fund also provides funding for replacement of all the City’s vehicles on an “as needed” basis.
Equipment Outlay -This fund is used to allocate resources intended for the purchase of General Fund equipment costing more than $1,000.
Workers’ Compensation - This fund is used to account for all expenses relating to workers’ compensation (i.e., injury claims, insurance premiums, etc.). The costs are recovered through an annual “user fee” which is charged to all departments/funds that have employees.
Facility Services -This fund is used to account for all expenses relating to the operation and maintenance of City facilities. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have facilities.
Information Technologies -This fund is used to account for all expenses relating to computer hardware, software, maintenance, capital purchasing and other service charges. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have computer equipment.
Fringe Benefits -This fund is used for City paid benefits which are charged. Examples include medical, dental, disability, unemployment, life insurance and retirement including PERS and PARS. These benefit costs are allocated to the funds based on budget for three quarters and then reconciled to actual in the fourth quarter. 153
Fleet Equipment Workers' General
Services Outlay Compensation Liability
ASSETS
Current assets:
Cash and investments 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Cash and investments with fiscal agent - - - - Accounts receivable - - - - Inventory 43,575 - - - Prepaid items - - - - Total current assets 3,738,310 2,500,756 3,742,855 2,960,256 Noncurrent assets:
Interfund loans receivable 2,989,892 901,150 - - Capital assets:
Nondepreciable 7,999 4,404 - - Depreciable, net 3,932,213 482,476 - - Total capital assets 3,940,212 486,880 - - Total noncurrent assets 6,930,104 1,388,030 - - Total assets 10,668,414 3,888,786 3,742,855 2,960,256 Current Liabilities:
Accounts payable 208,520 41,713 - 43,912 Accrued liabilities 27,746 732 - 386 Compensated absences, current portion 1,800 - - - Claims payable, current portion - - 970,000 470,000 Total current liabilities 238,066 42,445 970,000 514,298 Noncurrent liabilities:
Compensated absences 16,563 - - - Claims payable - - 2,622,854 2,295,958 Total noncurrent liabilities 16,563 - 2,622,854 2,295,958 Total liabilities 254,629 42,445 3,592,854 2,810,256 NET POSITION:
Investment in capital assets 3,940,212 486,880 - - Unrestricted 6,473,573 3,359,461 150,001 150,000 Total net position 10,413,785$ 3,846,341$ 150,001$ 150,000$ (Continued)
City of Gilroy
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
LIABILITIES
154
Facility Information Fringe
Services Technologies Benefits Total
ASSETS
Current assets:
Cash and investments 1,943,261$ 4,633,048 458,346$ 19,933,257$ Cash and investments with fiscal agent - - 2,000,000 2,000,000 Accounts receivable 17,252 - - 17,252 Inventory - - - 43,575 Prepaid items - 12,084 - 12,084 Total current assets 1,960,513 4,645,132 2,458,346 22,006,168 Noncurrent assets:
Interfund loans receivable - - - 3,891,042 Capital assets:
Nondepreciable - 1,746,423 - 1,758,826 Depreciable, net - 214,202 - 4,628,891 Total capital assets - 1,960,625 - 6,387,717 Total noncurrent assets - 1,960,625 - 10,278,759 Total assets 1,960,513 6,605,757 2,458,346 32,284,927 Current Liabilities:
Accounts payable 116,616 369,109 2,959 782,829 Accrued liabilities 56,446 39,682 459,083 584,075 Compensated absences, current portion 3,400 3,900 - 9,100 Claims payable, current portion - - - 1,440,000 Total current liabilities 176,462 412,691 462,042 2,816,004 Noncurrent liabilities:
Compensated absences 31,001 34,820 - 82,384 Claims payable - - - 4,918,812 Total noncurrent liabilities 31,001 34,820 - 5,001,196 Total liabilities 207,463 447,511 462,042 7,817,200 NET POSITION:
Investment in capital assets - 1,960,625 - 6,387,717 Unrestricted 1,753,050 4,197,621 1,996,304 18,080,010 TOTAL NET POSITION 1,753,050$ 6,158,246$ 1,996,304$ 24,467,727$ (Concluded)
City of Gilroy
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2021
LIABILITIES
155
Fleet Equipment Workers' General
Services Outlay Compensation Liability
OPERATING REVENUES:
Charges for services 1,930,538$ 125,923$ 1,292,484$ 1,264,785$ Miscellaneous - - - 1,078,386 Total operating revenues 1,930,538 125,923 1,292,484 2,343,171 OPERATING EXPENSES:
Current:
Operations 1,607,004 209,285 - - Depreciation 506,335 108,833 - - Administration - - 196,038 86,216 Claims and judgments - - 1,397,737 2,380,120 Insurance premiums - - 276,239 1,187,706 Total operating expenses 2,113,339 318,118 1,870,014 3,654,042 OPERATING INCOME (LOSS)(182,801) (192,195) (577,530) (1,310,871) NONOPERATING REVENUES:
Investment income 59,389 25,118 17,073 9,136 Total nonoperating revenues 59,389 25,118 17,073 9,136 INCOME (LOSS) BEFORE TRANSFERS (123,412) (167,077) (560,457) (1,301,735) TRANSFERS:
Transfers in 5,000 - - - Total transfers 5,000 - - - CHANGES IN NET POSITION (118,412) (167,077) (560,457) (1,301,735) NET POSITION:
Beginning of year 10,532,197 4,013,418 710,458 1,451,735 End of year 10,413,785$ 3,846,341$ 150,001$ 150,000$ (Continued)
Internal Service Funds
For the Year Ended June 30, 2021
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position 156
Facility Information Fringe
Services Technologies Benefits Total
OPERATING REVENUES:
Charges for services 2,487,387$ 2,901,398$ 16,580,827$ 26,583,342$ Miscellaneous 546,628 3,600 - 1,628,614 Total operating revenues 3,034,015 2,904,998 16,580,827 28,211,956 OPERATING EXPENSES:
Current:
Operations 2,806,186 2,973,302 16,584,733 24,180,510 Depreciation - 92,350 - 707,518 Administration 745 - - 282,999 Claims and judgments - - - 3,777,857 Insurance premiums - - - 1,463,945 Total operating expenses 2,806,931 3,065,652 16,584,733 30,412,829 OPERATING INCOME (LOSS)227,084 (160,654) (3,906) (2,200,873) NONOPERATING REVENUES:
Investment income 7,916 25,990 - 144,622 Total nonoperating revenues 7,916 25,990 - 144,622 INCOME (LOSS) BEFORE TRANSFERS 235,000 (134,664) (3,906) (2,056,251) TRANSFERS:
Transfers in - 1,584 - 6,584 Total transfers - 1,584 - 6,584 CHANGES IN NET POSITION 235,000 (133,080) (3,906) (2,049,667) NET POSITION:
Beginning of year 1,518,050 6,291,326 2,000,210 26,517,394 End of year 1,753,050$ 6,158,246$ 1,996,304$ 24,467,727$ (Concluded)
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) For the Year Ended June 30, 2021
Internal Service Funds
157
Fleet Equipment Workers' General
Services Outlay Compensation Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 1,930,538$ 125,923$ 1,292,484$ 2,343,171$ Cash paid to suppliers for goods and services (1,110,506) (206,735) (196,807) (62,151) Cash paid to employees for services (503,175) 732 - (24,190) Cash paid for insurance claims - - (1,013,518) (1,491,917) Net cash provided by (used in) operating activities 316,857 (80,080) 82,159 764,913
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 235,872 116,617 - - Net cash provided by noncapital financing activities 235,872 116,617 - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (275,777) (63,790) - - Net cash (used in) capital and related
financing activities (275,777) (63,790) - - CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 59,389 25,118 17,073 9,136 Net cash provided by investing activities 59,389 25,118 17,073 9,136 Net change in cash and cash equivalents 336,341 (2,135) 99,232 774,049
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 3,358,394 2,502,891 3,643,623 2,186,207 End of year 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ CASH AND CASH EQUIVALENTS:
Cash and investments 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Cash and investments with fiscal agent - - - - Total cash and cash equivalents 3,694,735$ 2,500,756$ 3,742,855$ 2,960,256$ Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) (182,801)$ (192,195)$ (577,530)$ (1,310,871)$ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 506,335 108,833 - - Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - - - - (Increase)/decrease in inventory (4,602) - - - (Increase)/decrease in prepaid items - - - - Increase/(decrease) in accounts payable 70,454 2,550 (33) 24,065 Increase/(decrease) in accrued liabilities (29,379) 732 (736) (24,190) Increase/(decrease) in compensated absences (43,150) - - - Increase/(decrease) in claims payable - - 660,458 2,075,909 Net cash provided by (used in) operating activities 316,857$ (80,080)$ 82,159$ 764,913$ (continued)
City of Gilroy
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2021
158
Facility Information Fringe
Services Technologies Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 3,049,963$ 2,904,998$ 16,580,827$ 28,227,904$ Cash paid to suppliers for goods and services (2,234,187) (2,114,556) (16,657,538) (22,582,480) Cash paid to employees for services (677,517) (660,565) - (1,864,715) Cash paid for insurance claims - - - (2,505,435) Net cash provided by (used in) operating activities 138,259 129,877 (76,711) 1,275,274
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds - 1,584 - 354,073 Net cash provided by noncapital financing activities - 1,584 - 354,073
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (781,608) - (1,121,175) Net cash (used in) capital and related
financing activities - (781,608) - (1,121,175) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 7,916 25,990 - 144,622 Net cash provided by investing activities 7,916 25,990 - 144,622 Net change in cash and cash equivalents 146,175 (624,157) (76,711) 652,794
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 1,797,086 5,257,205 2,535,057 21,280,463 End of year 1,943,261$ 4,633,048$ 2,458,346$ 21,933,257$ CASH AND CASH EQUIVALENTS:
Cash and investments 1,943,261$ 4,633,048$ 458,346$ 19,933,257$ Cash and investments with fiscal agent - - 2,000,000 2,000,000 Total cash and cash equivalents 1,943,261$ 4,633,048$ 2,458,346$ 21,933,257$ Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) 227,084$ (160,654)$ (3,906)$ (2,200,873)$ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation - 92,350 - 707,518 Changes in assets and liabilities:
(Increase)/decrease in accounts receivables 15,948 - - 15,948 (Increase)/decrease in inventory - - - (4,602) (Increase)/decrease in prepaid items - 80,160 - 80,160 Increase/(decrease) in accounts payable (107,803) 133,173 (622) 121,784 Increase/(decrease) in accrued liabilities (189) (26,568) (72,183) (152,513) Increase/(decrease) in compensated absences 3,219 11,416 - (28,515) Increase/(decrease) in claims payable - - - 2,736,367 Net cash provided by (used in) operating activities 138,259$ 129,877$ (76,711)$ 1,275,274$ City of Gilroy
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2021
159
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160
These funds account for assets held by the City on behalf of other organizations.
Fiduciary Funds
Senior Advisory Board - This fund is used to account for revenues that come from fundraising and donations. The funds are used to buy equipment for the Senior Center.
Highway 152 Series 2002 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2002 improvements.
Highway 152 Series 2006 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2006 improvements.
Highway 152 Series 2018 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2018 Bonds.
Custodial Funds
161
Senior
Advisory Highway 152 Highway 152 Highway 152
Board Series 2002 Series 2006 Series 2018
Assets:
Cash and investments 8,386$ -$ -$ 808,042$ Cash and investments with fiscal agent - - - 290,613 Total Assets 8,386 - - 1,098,655 Net Position:
Restricted for:
Individuals, organizations, and other governments 8,386 - - 1,098,655 Total Net Position 8,386$ -$ -$ 1,098,655$ (Continued)
Custodial Funds
City of Gilroy
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
162
Total
Assets:
Cash and investments 816,428$
Cash and investments with fiscal agent 290,613
Total Assets 1,107,041
Net Position:
Restricted for:
Individuals, organizations, and other governments 1,107,041 Total Net Position 1,107,041$
(Concluded)
City of Gilroy
Combining Statement of Fiduciary Net Position (Continued) Fiduciary Funds
June 30, 2021
163
Senior
Advisory Highway 152 Highway 152 Highway 152
Board Series 2002 Series 2006 Series 2018
REVENUES:
Taxes -$ -$ -$ 920,975$ Transfer from other custodial fund - - - 1,253 Investment income 41 - - 954 Total additions 41 - - 923,182 EXPENDITURES:
General administration - - - 27,042 Transfer to other custodial fund - 544 709 - Payments on conduit bonds - principal - - - 651,251 Payments on conduit bonds - interest - - - 228,952 Total deductions - 544 709 907,245 CHANGE IN NET POSITION 41 (544) (709) 15,937 NET POSITION:
Beginning of year, as restated 8,345 544 709 1,082,718 End of year 8,386$ -$ -$ 1,098,655$ (Continued)
June 30, 2021
Custodial Funds
City of Gilroy
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds
164
Total
REVENUES:
Taxes 920,975$
Transfer from other custodial fund 1,253
Investment income 995
Total additions 923,223
EXPENDITURES:
General administration 27,042
Transfer to other custodial fund 1,253
Payments on conduit bonds - principal 651,251
Payments on conduit bonds - interest 228,952
Total deductions 908,498
CHANGE IN NET POSITION 14,725
NET POSITION:
Beginning of year, as restated 1,092,316
End of year 1,107,041$
(Concluded)
June 30, 2021
City of Gilroy
Combining Statement of Changes in Fiduciary Net Position (Continued) Fiduciary Funds
165
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166
STATISTICAL
SECTION
Contents Page
Financial Trends 170 - 178
Revenue Capacity 180 - 189
Debt Capacity 190 - 197
Demographic and Economic Information 198 - 199
Operating Information 201 - 205
STATISTICAL SECTION
(Unaudited)
This part of the City of Gilroy's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial reports for the relevant year.
These tables contain information to help the reader assess the City's most significant local revenue source, the property tax.
These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
169
2012 2013 2014 2015 2016
Governmental Activities:
Net investment in capital assets 180,031,582$ 170,944,637$ 162,950,296$ 167,625,947.00$ 159,684,128$ Restricted 19,257,961 19,616,322 24,277,233 22,320,085.00 35,564,991 Unrestricted 25,031,844 26,414,676 28,892,199 (26,524,001) (25,032,197) Total governmental activities net position 224,321,387 216,975,635 216,119,728 163,422,031 170,216,922 Business-type Activities:
Net investment in capital assets 93,390,622 91,165,074 88,728,174 90,335,349 90,917,108 Restricted - - - - - UUnrestricted 79,652,868 82,012,944 85,736,094 84,832,390 88,668,400 Total business-type activities net position 173,043,490 173,178,018 174,464,268 175,167,739 179,585,508 Primary Government:
Net investment in capital assets 273,422,204 262,109,711 251,678,470 257,961,296 250,601,236 Restricted 19,257,961 19,616,322 24,277,233 22,320,085 35,564,991 UUnrestricted 104,684,712 108,427,620 114,628,293 58,308,389 63,636,203 Total primary government net position 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ Fiscal Year
City of Gilroy
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
170
2017 2018 2019 2020 2021
Governmental Activities:
Net investment in capital assets 154,863,285$ 159,069,886$ 156,750,373$ 151,904,792$ 149,891,568$ Restricted 41,636,040 48,731,281 49,688,804 57,137,761 57,570,568 Unrestricted (25,229,815) (36,193,491) (37,759,850) (42,661,193) (42,545,831) Total governmental activities net position 171,269,510 171,607,676 168,679,327 166,381,360 164,916,305 Business-type Activities:
Net investment in capital assets 88,183,287 87,336,604 91,134,932 83,550,353 83,119,598 Restricted - - - UUnrestricted 93,612,020 98,375,675 100,053,259 100,496,635 99,198,302 Total business-type activities net position 181,795,307 185,712,279 191,188,191 184,046,988 182,317,900 Primary Government:
Net investment in capital assets 243,046,572 246,406,490 247,885,305 235,455,145 233,011,166 Special revenue 41,636,040 48,731,281 49,688,804 57,137,761 57,570,568 UUnrestricted 68,382,205 62,182,184 62,293,409 57,835,442 56,652,471 Total primary government net position 353,064,817$ 357,319,955$ 359,867,518$ 350,428,348$ 347,234,205$ Fiscal Year
City of Gilroy
Net Position By Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
171
2012 2013 2014 2015 2016
Expenses:
Governmental activities:
General government 11,895,682$ 3,732,098$ 3,795,033$ 3,619,582$ 3,900,226$ Public safety 5,995,050 28,747,964 29,696,344 30,273,444 31,020,245 Community development 14,271,031 15,485,705 14,824,460 15,901,215 21,413,283 Community services 180,845 7,686,862 7,726,938 7,807,765 8,217,318 Recreation Services - - - - - Interest and other charges 16,654,681 3,226,789 3,744,396 3,406,855 3,327,992 Total governmental activities expenses 48,997,289 58,879,418 59,787,171 61,008,861 67,879,064 Business-type activities
Sewer 11,575,152 10,206,770 9,929,622 9,806,990 12,298,662 Water 11,428,662 8,081,041 8,642,660 8,329,710 8,370,320 Total business-type activities expenses 23,003,814 18,287,811 18,572,282 18,136,700 20,668,982 Total primary government expenses 72,001,103$ 77,167,229$ 78,359,453$ 79,145,561$ 88,548,046$ Program revenues:
Governmental activities:
Charges for services:
General government 7,623$ 1,119,217$ 1,415,106$ 2,096,137$ 1,651,713$ Public safety 1,055,373 1,004,530 897,059 1,030,410 1,146,593 Community development 767,444 3,866,305 5,434,764 7,385,391 6,145,791 Community services 66,788 757,445 810,503 886,988 978,780 Recreation services - - - - - Operating grants and contributions 8,711,464 14,091,083 15,057,119 13,109,933 22,838,535 Capital grants and contributions - 3,207,487 3,157,642 8,999,636 3,820,892 Total governmental activities program revenues 10,608,692 24,046,067 26,772,193 33,508,495 36,582,304 Business-type activities:
Charges for services:
Sewer 7,828,759 8,441,024 10,359,334 - 11,984,798 Water 4,556,861 8,179,888 8,640,784 - 7,330,300 Capital grants and contributions 95,360 1,410,773 179,707 - 5,086,464 Total business-type activities program revenues 12,480,980 18,031,685 19,179,825 - 24,401,562 Total primary government program revenues 23,089,672$ 42,077,752$ 45,952,018$ 33,508,495$ 60,983,866$ Net revenue (expense):
Governmental activities (38,388,597)$ (34,833,351)$ (33,014,978)$ (27,500,366)$ (31,296,760)$ Business-type activities (10,522,834) (256,126) 607,543 (18,136,700) 3,732,580 Total primary government net expense (48,911,431)$ (35,089,477)$ (32,407,435)$ (45,637,066)$ (27,564,180)$ City of Gilroy
Fiscal Year
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
172
2017 2018 2019 2020 2021
Expenses:
Governmental activities:
General government 6,437,408$ 7,315,065$ 7,696,445$ 6,131,791$ 7,315,868$ Public safety 33,393,829 35,591,790 37,837,438 40,088,865 40,797,962 Community development 19,167,193 19,211,323 22,518,209 8,556,959 7,147,532 Public works 8,978,597 9,654,957 - 23,525,423 16,862,660 Recreation Services - - 9,526,627 - 1,779,121 Interest and other charges 3,256,733 3,147,606 3,226,849 2,431,588 2,081,420 Total governmental activities expenses 71,233,760 74,920,741 80,805,568 80,734,626 75,984,563 Business-type activities
Sewer 12,060,236 11,538,388 14,044,716 14,668,434 15,820,944 Water 9,197,426 9,937,768 11,777,220 12,603,780 16,435,598 Total business-type activities expenses 21,257,662 21,476,156 25,821,936 27,272,214 32,256,542 Total primary government expenses 92,491,422$ 96,396,897$ 106,627,504$ 108,006,840$ 108,241,105$ Program revenues:
Governmental activities:
Charges for services:
General government 3,087,335$ 3,280,977$ 3,726,486$ 3,550,758$ 2,815,647$ Public safety 1,439,418 959,277 1,234,017 1,188,951 1,242,281 Community development 5,207,571 6,430,321 6,624,477 3,909,360 4,185,811 Public works 986,582 977,834 - 715,299 3,593,959 Recreation services - - 1,009,235 - 223,154 Operating grants and contributions 15,860,767 19,389,757 13,146,274 14,247,635 16,482,904 Capital grants and contributions 5,438,560 10,319,300 6,538,076 1,931,458 2,000,357 Total governmental activities program revenues 32,020,233 41,357,466 32,278,565 25,543,461 30,544,113 Business-type activities:
Charges for services:
Sewer 12,833,030 12,961,285 12,904,657 12,872,189 12,702,398 Water 9,156,082 11,343,036 12,294,119 14,590,973 14,830,153 Capital grants and contributions 1,172,844 2,330,335 4,160,510 2,439,117 2,511,059 Total business-type activities program revenues 23,161,956 26,634,656 29,359,286 29,902,279 30,043,610 Total primary government program revenues 55,182,189$ 67,992,122$ 61,637,851$ 55,445,740$ 60,587,723$ Net revenue (expense):
Governmental activities (39,213,527)$ (33,563,275)$ (48,527,003)$ (55,191,165)$ (45,440,450)$ Business-type activities 1,904,294 5,158,500 3,537,350 2,630,065 (2,212,932) Total primary government net expense (37,309,233)$ (28,404,775)$ (44,989,653)$ (52,561,100)$ (47,653,382)$ City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
173
2012 2013 2014 2015 2016
General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 8,907,492$ 9,462,337$ 9,728,458$ 10,862,568$ 11,468,510$ Sales tax 13,833,561 14,114,277 14,423,130 15,858,910 17,884,735 Transient occupancy taxes 998,743 1,092,486 1,234,798 1,501,837 1,676,691 Franchise tax 1,355,340 1,326,364 1,408,045 1,463,770 1,569,059 Other taxes 4,781,148 4,694,440 4,759,067 4,905,868 5,116,588 Investment income 922,309 350,105 630,095 619,139 647,057 State motor vehicle in lieu 25,739 26,670 22,072 21,479 21,385 Other 109,798 390,812 632,113 164,321 392,815 Transfers (647,847) (669,940) (678,707) (689,011) (685,189) Total governmental activities 30,286,283 30,787,551 32,159,071 34,708,881 38,091,651 Business-type activities:
Investment and rental income 777,528 - - - - Other 600 - - - - Share of DCU net income (loss)(1,059,357) - - - - Transfers 647,847 669,940 678,707 689,011 685,189 Total business-type activities 366,618 669,940 678,707 689,011 685,189 Total primary government 30,652,901$ 31,457,491$ 32,837,778$ 35,397,892$ 38,776,840$ Changes in net position:
Governmental activities 301,450$ (4,045,800)$ (855,907)$ 7,208,515$ 6,794,891$ Business-type activities 950,871 413,814 1,286,250 3,800,429 4,417,769 Total primary government 1,252,321$ (3,631,986)$ 430,343$ 11,008,944$ 11,212,660$ Net Position (Net Assets), Beginning 396,112,556$ 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ Beginning Fund Balance Restatement (1)- (3,579,238) - (63,003,170) - Changes in Net Position (Net Assets) 1,252,321 (3,631,986) 430,343 11,008,944 11,212,660 Net Position (Net Assets), Ending 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$ 349,802,430$ (1)Net Position, as restated
Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
174
2017 2018 2019 2020 2021
General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 12,278,553$ 13,161,002$ 14,476,481$ 15,595,639$ 17,016,855$ Sales tax 17,768,469 18,827,189 20,186,105 17,233,882 18,584,534 Transient occupancy taxes 1,709,332 1,722,355 1,771,882 1,237,812 1,105,300 Franchise tax 1,623,951 1,713,690 1,669,817 1,855,622 1,732,613 Other taxes 5,264,486 5,192,899 5,093,813 5,667,201 5,030,153 Investment income 900,622 1,190,732 2,567,147 2,039,471 502,770 State motor vehicle in lieu 24,715 29,444 26,695 - - Other 15,188 571,340 166,316 127,479 644,291 Transfers (305,505) 1,241,528 (640,347) (447,847) (641,121) Total governmental activities 39,279,811 43,650,179 45,317,909 43,309,259 43,975,395 Business-type activities:
Investment and rental income - - 1,298,215 1,169,133 (157,277) Other - - - - (79,785) Share of DCU net income (loss)- - - (2,112,340) (1,982,829) Transfers 305,505 (1,241,528) 640,347 447,847 641,121 Total business-type activities 305,505 (1,241,528) 1,938,562 (495,360) (1,578,770) Total primary government 39,585,316$ 42,408,651$ 47,256,471$ 42,813,899$ 42,396,625$ Changes in net position:
Governmental activities 66,284$ 10,086,904$ (3,209,094)$ (11,881,906)$ (1,465,055)$ Business-type activities 2,209,799 3,916,972 5,475,912 4,247,045 (1,729,088) Total primary government 2,276,083$ 14,003,876$ 2,266,818$ (7,634,861)$ (3,194,143)$ Net Position (Net Assets), Beginning 348,802,430$ 352,078,513$ 357,319,955$ 359,586,773$ 350,428,348 Beginning Fund Balance Restatement (1)- (8,762,454) - (1,523,564) - Changes in Net Position (Net Assets) 2,276,083 14,003,896 2,266,818 (7,634,861) (3,194,143) Net Position (Net Assets), Ending 351,078,513$ 357,319,955$ 359,586,773$ 350,428,348$ 347,234,205$ (1)Net Position, as restated
Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
175
2012 2013 2014 2015 2016
General fund:
Nonspendable 59,670$ 45,003$ 52,592$ 74,622$ 84,923$ Restricted - - - - - Assigned - - - - - Unassigned 25,423,199 23,038,183 22,291,553 21,316,940 22,202,316 Total general fund 25,482,869$ 23,083,186$ 22,344,145$ 21,391,562$ 22,287,239$ All other governmental funds:
Nonspendable 9,766 5,454,973 9,265 9,265 8,670 Restricted 37,880,519 31,995,403 41,474,238 40,117,010 44,922,496 Assigned 525,601 226,654 576,889 544,284 2,827,521 Unassigned (12,379,723) (12,423,935) (11,866,882) (12,884,818) (7,883,587) Total all other governmental funds 26,036,163$ 25,253,095$ 30,193,510$ 27,785,741$ 39,875,100$ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
176
2017 2018 2019 2020 2021
General fund:
Nonspendable 74,217$ 126,965$ 76,000$ 126,915$ 47,874$ Restricted - - - - - Assigned - - - - - Unassigned 24,354,609 25,475,105 27,683,870 14,731,555 19,585,369 Total general fund 24,428,826$ 25,602,070$ 27,759,870$ 14,858,470$ 19,633,243$ All other governmental funds:
Nonspendable 9,470 25,570 1,000 706,754 706,754 Restricted 50,775,875 55,248,281 57,445,219 56,261,267 56,999,818 Assigned 1,588,907 1,448,954 1,483,818 5,368,008 5,276,537 Unassigned (5,761,804) (2,841,776) (4,206,362) (54) (4,712,875) Total all other governmental funds 46,612,448$ 53,881,029$ 54,723,675$ 62,335,975$ 58,270,234$ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
177
2012 2013 2014 2015 2016
Revenues:
Taxes 30,122,948$ 33,041,266$ 33,902,225$ 37,190,336$ 40,177,903$ Licenses and permits 2,000,283 2,071,569 2,088,024 2,847,912 3,720,755 Intergovernmental 6,413,621 5,258,266 5,235,608 3,260,688 4,291,272 Charges for services 14,688,796 13,944,828 17,081,714 17,396,590 24,960,535 Fines 425,265 251,313 226,220 281,580 266,163 Special assessments 2,133,413 - - - - Investment income (loss)898,495 385,744 697,612 600,960 608,641 Contribution from property owners - - - - - Miscellaneous 826,591 1,035,480 1,464,470 2,128,737 2,059,106 Total revenues 57,509,412 55,988,466 60,695,873 63,706,803 76,084,375 Expenditures:
General government 3,287,262 3,793,066 4,073,708 4,025,604 4,532,241 Public safety 25,448,868 26,416,606 27,448,432 28,845,371 29,867,361 Community services 5,650,806 6,029,323 6,072,624 6,322,864 6,764,060 Community development 26,470,128 14,393,211 10,031,035 16,393,573 14,675,204 Debt service:
Principal retirement 2,170,000 1,350,000 25,745,000 2,215,000 2,305,000 Interest 3,287,244 3,319,071 3,525,898 3,557,829 3,479,710 Bond issuance costs - - 275,515 2,582 - Total expenditures 66,314,308 55,301,277 77,172,212 61,362,823 61,623,576 Excess of revenues over
(under) expenditures (8,804,896) 687,189 (16,476,339) 2,343,980 14,460,799 Other Financing Sources (Uses):
Transfers in 5,496,446 3,746,485 3,574,115 4,318,330 6,803,782 Transfers out (7,576,735) (7,616,425) (7,154,454) (11,012,940) (8,521,471) Issuance of loan/notes - - - 959,229 241,926 Issuance of bonds - - 23,120,000 - - Payment to refunded bond escrow - - - - - Payment to bond excrow agent - - - - - Premium on bonds - - 1,138,052 - - Total other financing sources (uses)(2,080,289) (3,869,940) 20,677,713 (5,735,381) (1,475,763) Net Change in fund balances (10,885,185)$ (3,182,751)$ 4,201,374$ (3,391,401)$ 12,985,036$ Fund balances - June 30 134,465,357$ 131,282,606$ 135,483,980$ 132,092,579$ 12,985,036$ Debt service as a percentage
of noncapital expenditures 8.34%9.57%38.74%9.55%9.53%
(a)
(a) Long-term debt was transferred to the Successor Agency on February 1, 2012. The Successor Agency is not considered a component unit for the City, thus the debt payments are disclosed in the Fiduciary Funds section of this report.
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
178
2017 2018 2019 2020 2021
Revenues:
Taxes 41,350,739$ 43,512,402$ 51,483,855$ 44,269,937$ 45,916,497$ Licenses and permits 2,713,733 2,751,137 3,487,338 1,776,651 2,278,304 Intergovernmental 3,748,000 4,047,728 3,913,484 5,473,529 6,612,274 Charges for services 18,973,863 22,820,605 11,501,828 13,951,822 17,484,867 Fines 293,899 208,305 239,873 282,535 231,688 Special assessments - - - - - Investment income (loss)762,671 1,084,408 1,247,543 1,884,149 358,452 Contribution from property owners - - - - - Miscellaneous 1,604,397 1,635,888 1,990,459 1,348,130 2,867,269 Total revenues 69,447,302 76,060,473 73,864,380 68,986,753 75,749,351 Expenditures:
General government 4,906,824 5,103,946 5,760,831 6,361,042 5,931,022 Public safety 30,830,873 31,781,515 34,062,421 36,867,887 35,856,183 Public Works 7,231,274 7,723,166 7,831,193 7,897,645 7,231,722 Community development 11,052,313 14,993,509 15,421,483 19,143,243 5,523,912 Recreation services - - - - 1,702,666 Capital outlay - - - - 6,243,057 Debt service:
Principal retirement 2,459,619 2,558,818 2,654,708 2,986,212 2,817,325 Interest 3,410,441 3,302,252 3,448,556 3,011,707 2,784,374 Bond issuance costs - - 112,903 - - Total expenditures 59,891,344 65,463,206 69,292,095 76,267,736 68,090,261 Excess of revenues over
(under) expenditures 9,555,958 10,597,267 4,572,285 (7,280,983) 7,659,090 Other Financing Sources (Uses):
Transfers in 4,233,745 4,503,781 4,236,075 8,937,984 24,306,099 Transfers out (4,910,768) (6,659,253) (5,876,422) (12,905,997) (24,953,804) Issuance of loan/notes - - - - - Issuance of bonds - - - 19,087,551 16,459,825 Payment to refunded bond escrow - - - (19,350,000) (17,555,000) Payment to bond escrow agent - - (8,565,000) - - Premium on bonds - - 8,633,538 - - Total other financing sources (uses)(677,023) (2,155,472) (1,571,809) (4,230,462) (1,742,880) Net Change in fund balances 8,878,935$ 8,441,795$ 3,000,476$ (11,511,445)$ 5,916,210$ Fund balances - June 30 8,878,935$ 8,441,795$ 3,000,476$ (11,511,445)$ 5,916,210$ Debt service as a percentage
of noncapital expenditures 9.95%9.08%9.09%7.96%8.34%
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
179
CATEGORY 2012 2013 2014 2015 2016
Outlet Center $2,833,256 $2,845,863 $2,867,431 $2,899,778 $2,747,030 Newman Development 2,131,034 2,201,623 2,230,855 2,332,215 2,426,698 Regency Center 940,836 949,436 946,073 965,112 999,738
Downtown Core 224,977 271,227 296,354.00 316,595.00 356,687 General Retail 6,130,103 6,268,149 6,340,713 6,513,700 6,530,153 Auto Dealers 1,045,717 1,131,680 1,649,758 2,136,541 2,633,013 Service Stations 1,543,421 1,457,239 1,442,888 1,292,736 1,094,398 Transportation 2,589,138 2,588,919 3,092,646 3,429,277 3,727,411 Others 3,284,517 3,344,680 3,697,010 3,695,108 4,018,337 Allocation from State and County 1,829,803 1,912,529 1,292,761 2,220,825 3,608,834 TOTALS:$13,833,561 $14,114,277 $14,423,130 $15,858,910 $17,884,735 Population 50,081 51,505 52,413 53,000 55,170
Sales Tax Per Capita 276 274 275 299 324
City of Gilroy
Sales Tax by Category
Last Ten Fiscal Years
Fiscal Year
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities 0 50
100
150
200
250
300
350
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0 5,000
10,000
15,000
20,000
25,000
Others State/County Gen. Retail Transportation Per Capita 180
CATEGORY 2017 2018 2019 2020 2021
Outlet Center $2,669,216 $2,571,713 $2,464,617 $1,739,806 $1,869,275 Newman Development 2,500,961 2,529,804 2,743,665 2,643,207 2,955,455 Regency Center 968,005 987,417 1,004,376 896,599 1,000,140 Downtown Core 398,344 385,497.00 505,600 472,427 512,427 General Retail 6,536,526 6,474,431 6,718,258 5,752,039 6,337,297 Auto Dealers 3,224,719 3,691,038 3,855,166 3,056,022 2,446,254 Service Stations 1,064,232 1,290,582 1,298,298 1,129,189 1,085,319 Transportation 4,288,951 4,981,620 5,153,464 4,185,211 3,531,573 Others 4,263,541 4,632,323 4,418,367 4,294,454 4,580,258 Allocation from State and County 2,679,451 2,152,877 3,896,016 3,002,179 3,867,949 TOTALS:$17,768,469 $18,241,251 $20,186,105 $17,233,883 $18,317,077 Population 55,936 55,615 55,928 57,084 59,920
Sales Tax Per Capita 318 328 361 302 306
City of Gilroy
Sales Tax by Category (Continued)
Last Ten Fiscal Years
Fiscal Year
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities 181
Agency 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
6.250% 6.500% 6.500% 6.500% 6.250% 6.000% 6.000% 6.000% 6.000% 6.000%
0.250%
0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250%
0.750% 0.750% 0.750% 0.750% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% -
0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% --
0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%
0.500%
0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% -
0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% --
0.500% 0.500% 0.500% 0.500% 0.500%
Total 8.250% 8.750% 8.750% 8.750% 8.750% 9.000% 9.000% 9.000% 9.000% 9.000% Source: California Department of Tax and Fee Administration
FISCAL YEAR
City of Gilroy
Sales Tax Rates
Last Ten Fiscal Years
SCC Transit District
SCC Valley Transportation
Authority
SCC VTA Bay Area Rapid
Transit
Silicon Valley Transportation
Solutions Tax
State of California
Santa Clara County (SCC)
Transportation Funds
City of Gilroy
SCC Retail Transactions and
Use Tax
SCC Transactions and Use
Tax
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2013
2014
2015
2016
2017
2018
2019
2020
2021
Total
Gilroy
182
Taxpayer Business Type Taxpayer Business Type
Action Gypsum Supply West Bldg.Matls-Whsle Arco Am/Pm Mini Marts Service Stations Best Buy Stores Furniture/Appliance Best Buy Stores Furniture/Appliance Chevron Service Stations Service Stations Calvin Klein Apparel Stores Costco Wholesale Department Stores Chevron Service Stations Service Stations Cresco Equipment Rentals Heavy Industry Coach Stores Apparel Stores Digital Storm Miscellaneous Other Costco Wholesale Department Stores Gilroy Buick Gmc Auto Sales - New Gilroy Auto Outlet Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Motorcycle Center Misc. Vehicle Sales Gilroy Gas & Mini-Mart Service Stations Gilroy Toyota Auto Sales - New Gilroy Toyota Auto Sales - New Happy Daze RVs Misc. Vehicle Sales Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail Jn Abbott Distributor Energy Sales Lowe'S Home Centers Bldg.Matls-Retail Kohl'S Department Stores Department Stores Mcdonald'S Restaurants Restaurants Lowe'S Home Improvement Bldg.Matls-Retail Nike Factory Store Apparel Stores Nike Factory Store Apparel Stores Pape Machinery Heavy Industry Polo Ralph Lauren Apparel Stores Ross Stores Apparel Stores Rotten Robbie Service Stations Service Stations Rotten Robbie Service Stations Service Stations See-Grins Rv Misc. Vehicle Sales Safeway Stores Food Markets South County Chrysler Plymouth Auto Sales - New See Grins RVs Misc. Vehicle Sales South County Nissan Auto Sales - New Shell Service Stations Service Stations Target Stores Department Stores Target Stores Department Stores The Garlic Farm Travel Center Service Stations Tractor Supply Company Miscellaneous Retail Tv'S Gas & Foodmart Service Stations Union 76 Service Stations Service Stations Valero Service Stations Service Stations Wal Mart Stores Department Stores Wal Mart Stores Department Stores Source: MuniServices, LLC / Avenu Insights & Analytics City of Gilroy
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2020-21 2011-12
183
Fiscal
Year End
Local
Secured*
Home Owner
Exempt
Valuation
Net Local
Secured Net Utility
Net
Unsecured
Net Taxable
Assessed
Value
Total Direct
Tax Rate
(1)
Estimated
Actual
Taxable Value
(2)
Factor of
Taxable
Assessed
Value (2)
Assessed
Value as a
Percentage of
Actual Value
2008-09 6,488,553,329 46,390,400 6,442,162,929 94,818,014 278,011,535 6,814,992,478 - - - 2009-10 5,859,438,604 46,207,000 5,813,231,604 82,118,014 265,276,407 6,160,626,025 - - - 2010-11 5,515,703,007 47,031,600 5,468,671,407 80,918,014 232,541,079 5,782,130,500 0.902963 - - - 2011-12 5,477,242,040 46,387,600 5,430,854,440 78,686,470 281,804,033 5,791,344,943 0.902963 - - - 2012-13 5,467,139,776 46,209,800 5,420,929,976 72,086,470 266,918,393 5,759,934,839 0.902963 - - - 2013-14 5,913,805,270 46,463,200 5,867,342,070 64,186,470 260,981,844 6,192,510,384 0.902963 - - - 2014-15 6,395,754,046 46,050,200 6,349,703,846 52,530,836 265,879,967 6,668,114,649 0.902963 - - - 2015-16 6,798,621,370 45,871,000 6,752,750,370 47,030,836 268,445,327 7,068,226,533 0.902963 - - - 2016-17 7,385,130,561 46,578,000 7,338,552,561 42,130,836 273,713,487 7,654,396,884 0.902963 - - - 2017-18 7,872,947,886 47,244,400 7,825,703,486 39,330,836 263,667,226 8,128,701,548 0.097037 10,250,699,087 1.261050 79.30% 2018-19 8,445,397,378 48,090,000 8,397,307,378 38,939,704 256,724,279 8,692,971,361 0.097037 11,893,042,148 1.368122 73.09% 2019-20 9,001,686,593 47,874,400 8,953,812,193 32,539,704 257,410,089 9,243,761,986 0.097037 16,306,012,109 1.764002 56.69% 2020-21 9,557,360,668 47,341,000 9,510,019,668 29,739,704 267,854,749 9,807,614,121 0.097037 11,688,408,441 1.191769 83.91% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior, previously published ACFR.
*Local secured is net of other exemptions.
1.) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 02-000.
2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.
City of Gilroy
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(modified accrual basis of accounting)
184
Category 2018-19 2019-20 2020-21
Residential 6,846,995,669 7,292,373,081 7,766,498,649 Commercial 899,654,270 931,059,983 989,793,738 Industrial 479,091,993 538,635,466 667,191,707 Vacant - 216,844,260 163,403,099 Institutional 112,041,055 111,348,784 65,615,240 Professional 17,961,578 108,709,436 110,337,229 Agriculture 47,135,427 52,895,647 38,226,087 Unitary 38,939,704 32,539,704 29,739,704 Transportation 193,663,876 28,585,319 28,569,765 Public 104,675,187 23,763,391 31,201,356 Recreational 22,525,565 23,001,970 22,973,251 Social 18,604,008 19,463,964 19,888,529 Forestry 6,830,161 6,966,865 7,106,317 Unknown 2,149,694 - - Gross Secured Value 8,790,268,187 9,386,187,870 9,940,544,671 Unsecured Value 260,824,323 261,877,511 272,030,637 Less Exemptions 358,121,149 404,303,395 404,961,187 Net Taxable Value 8,692,971,361 9,243,761,986 9,807,614,121 Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Use code categories are based on Santa Clara County Assessor's data City of Gilroy
Assessed Value of Property by Use Code
Last Three Fiscal Years
185
2011-12 2012-13 2013-14 2014-15 2015-16
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.004700 0.005100 0.003500 0.009100 0.008800
County Housing Bond 2016 0.000000 0.000000 0.000000 0.000000 0.000000 Gilroy City Bond 2008 0.036500 0.036500 0.034000 0.034000 0.029000 Gilroy Unified School 2002 0.054500 0.057100 0.058000 0.056600 0.052200 Gilroy Unified 11/2008 0.047900 0.047200 0.056400 0.059900 0.054900 Gilroy Unified 2016 0.000000 0.000000 0.000000 0.000000 0.000000 Gavilan Community College 04 0.021700 0.025700 0.024800 0.023900 0.022600 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.006300 0.006900 0.007000 0.006500 0.005700
0.212800 0.219700 0.224900 0.231200 0.214400
TOTAL TAX RATE 1.212800 1.219700 1.224900 1.231200 1.214400 Source: Santa Clara County Auditor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior: previously published ACFR
This table shows rates for TRA 02-000.
City of Gilroy
Direct and Overlapping Property Tax Rates
(Per $100 of Taxable Value)
Last Ten Fiscal Years
186
2016-17 2017-18 2018-19 2019-20 2020-21
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments . .
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.008600 0.008200 0.007200 0.006900 0.006900
County Housing Bond 2016 0.000000 0.012660 0.010500 0.010000 0.000000 Gilroy City Bond 2008 0.027200 0.026000 0.025000 0.020000 0.019000 Gilroy Unified School 2002 0.050100 0.047800 0.046700 0.044400 0.042800 Gilroy Unified 11/2008 0.051300 0.049100 0.046300 0.054400 0.054100 Gilroy Unified 2016 0.060000 0.055900 0.015400 0.053400 0.055000 Gavilan Community College 04 0.021600 0.020000 0.019200 0.018700 0.018400 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.024400 0.023200 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.008600 0.006200 0.004200 0.004100 0.003700
0.268600 0.267060 0.215700 0.277500 0.264300
TOTAL TAX RATE 1.268600 1.267060 1.215700 1.277500 1.264300
City of Gilroy
Direct and Overlapping Property Tax Rates (Continued)
(Per $100 of Taxable Value)
Last Ten Fiscal Years
187
Taxpayer Taxable Value ($)
Percent of Total
City Taxable
Value (%) Taxable Value ($)
Percent of Total
City Taxable Value
(%)
Simon Property Group 221,085,523 2.25% 188,724,148 3.30% Olam West Coast Inc 145,402,420 1.48%67,031,145 1.17% Excel Gilroy LLC 79,339,671 0.81%80,535,391 1.41% United Natural Foods West Inc 59,995,195 0.61% Mabury Vineyards LLC Et Al 56,736,066 0.58%
Performance Food Group Inc 43,571,698 0.44%
Towman Cadena LLC 36,765,274 0.37%
Wal Mart Real Est Bus Trt 35,881,137 0.37%29,929,922 0.52% 7610 Isabella Way LLC 31,549,414 0.32%
E P & G South Valley Plaza LLC 28,090,800 0.29% Calatlantic Group Inc 26,360,073 0.27%
CaLPine Gilroy Cogen L P 26,333,230 0.27%
Monterey Gourmet Foods 25,895,799 0.26% Central Valley Coalition 25,819,152 0.26%
Costco Wholesale Corp A Ws Corp 24,407,273 0.25%20,229,845 0.35% Canciamilla Anthony Trustee & Et Al 22,000,000 0.22% Tri Pointe Homes Inc 20,852,880 0.21%
Pacheco Pass Retail XII LLC 18,889,499 0.19% Target Corporation 18,014,108 0.18%15,377,306 0.27% First Street Gilroy I LLC 17,998,920 0.18%
Gilroy Self Storage Partners LLC 17,204,848 0.18% Mission Park Gilroy LLC 16,974,210 0.17%14,504,263 0.25% HD Development of Maryland,Inc 16,900,673 0.17%14,426,847 0.25% Lee James Trustee 16,646,400 0.17%
Trimark-Gilroy Hospitality LLC Et Al 16,167,604 0.16% Inland Western Retail Real 54,323,523 0.95% Shapell Industries Inc 44,961,651 0.79% Health Care Reit Inc 35,118,063 0.61% South Valley Apts LLC 27,049,496 0.47% Mccarthy Gilroy LLC 26,814,860 0.47% Land Department 20,986,807 0.37% CP6 Sv LLC 20,853,990 0.36% Tin Inc.20,460,687 0.36% Chinatown LLC 19,324,285 0.34% Wells Fargo Bk 18,764,924 0.33% Kelly-Kehriotis Partners LLC 15,775,969 0.28% Lowes HIW Inc A WS Corp 15,259,395 0.27% D R Horton Bay Inc 15,249,924 0.27% Santa Teresa Properties LLC 13,735,811 0.24% Avery Cypress Pointe LP 12,704,589 0.22% Sterigenics U S LLC 12,689,230 0.22% Town Place LLC 12,508,259 0.22% Total Top 25 Taxpayers 1,048,881,867 10.69%817,340,330 14.30% Total Taxable Value 9,807,614,121 100.00%5,713,805,465 100.00% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 2020-21 2011-12
City of Gilroy
Principal Property Taxpayers
Last Fiscal Year and Nine Fiscal Years Ago
188
Fiscal Year
Tax Levied for the Fiscal
Year Amount Collected Percent (%) of Levy
2011-12 5,664,737$ 5,609,406$ 99.02% 2012-13 5,634,085$ 5,622,101$ 99.79% 2014-15 6,515,197$ 6,547,657$ 100.50% 2015-16 6,903,278$ 6,963,327$ 100.87% 2016-17 7,472,764$ 7,487,528$ 100.20% 2017-18 7,941,242$ 7,941,242$ 100.00% 2018-19 8,521,868$ 8,521,868$ 100.00% 2019-20 9,060,136$ 9,060,136$ 100.00% 2020-21 9,598,648$ 9,598,648$ 100.00% Source: MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior, previously published ACFR
Source: Finance Department, County of Santa Clara
City of Gilroy
Property Tax Levies, Tax Collections, and Delinquency
Last Ten Fiscal Years
189
General Tax Lease Special
Fiscal Revenue Allocation Notes & Revenue Assessment Revenue Year Bonds (4)(5)(6)Bonds Loans Bonds (4)Bonds Bonds
2010 10,724,640$ 1,500,000$ 46,370,000$ 1,130,000$ -$ 2011 34,529,124 24,340,000 25,410,269 870,000 - 2012 33,860,997 - 24,340,000 24,438,409 - - 2013 33,162,870 - 24,340,000 23,710,455 - - 2014 32,434,743 - - 47,182,360 - - 2015 31,681,616 - 959,229 45,587,503 - - 2016 30,893,489 - 1,201,155 43,937,647 - - 2017 30,080,362 - 1,126,536 42,232,790 - - 2018 29,247,235 - 1,082,253 40,462,933 - - 2019 28,305,209 - 948,011 38,623,072 - - 2020 26,630,459 857,428 35,710,000 2021 25,639,646 765,913 30,160,000 Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.
Source:
(1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021.
City of Gilroy
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
190
Wastewater Total % of
Fiscal Revenue Primary Property Net Debt
Year Bonds (3) (4) (7)Government (1)Assessed Value (2)per Capita 2010 26,168,102$ 85,892,742$ 1.39% 1,758
2011 25,935,334 111,084,727 1.92% 2,253
2012 24,237,585 106,876,991 1.85% 2,134
2013 22,384,827 103,598,152 1.80% 2,011
2014 20,477,068 100,094,171 1.62% 1,910
2015 18,519,310 96,747,658 1.45% 1,825
2016 16,491,551 92,523,842 1.31% 1,677
2017 14,393,793 87,833,481 1.15% 1,570
2018 12,206,034 82,998,455 1.02% 1,484
2019 9,928,276 77,804,568 0.90% 1,391 2020 7,545,517 70,743,404 0.77% 1,239 2021 51,900,000 108,465,559 1.10% 1,810
Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.
Source:
(1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021.
City of Gilroy
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-Type
Activities
191
Ratio of
General Tax Net General Bonded General
Fiscal Obligation Allocation Assessed Debt to Net Bonded Debt Year Bonds (4)Bonds Total (1)Value (2)Population (3)Assessed Value Per Capita 2011 34,529,124 34,529,124 5,782,130,500 49,316 0.597% 700 2012 33,860,997 33,860,997 5,791,344,943 50,081 0.585% 676 2013 33,162,870 33,162,870 5,759,934,839 51,505 0.576% 644 2014 32,434,743 32,434,743 6,192,510,384 52,413 0.524% 619 2015 31,681,616 31,681,616 6,668,114,649 53,000 0.475% 598 2016 30,893,489 30,893,489 7,068,226,533 55,170 0.437% 560 2017 30,080,362 30,080,362 7,654,396,884 55,936 0.393% 538 2018 29,247,235 29,247,235 8,128,701,548 55,615 0.360% 526 2019 28,305,209 28,305,209 8,692,971,361 55,928 0.326% 506 2020 26,630,459 26,630,459 9,243,761,986 57,084 0.288% 467 2021 25,639,646 25,639,646 9,807,614,121 59,920 0.261% 428 Source: (1) State of California, Finance Department.
(2) This is the amount restricted for the COP debt service principal payments.
City of Gilroy
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
OUTSTANDING GENERAL BONDED DEBT
49 50
51 52
53 55
56 56 56
57 58
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
44 46
48 50
52 54
56 58
60 192
2020-21 Assessed Valuation : $9,854,955,121
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1)Debt 6/30/21 Santa Clara County $812,685,000 1.79% $14,538,935
Gavilan Joint Community College District 219,400,000 26.138 57,346,772 Gilroy Unified School District 362,567,495 82.233 298,150,128 City of Gilroy 25,639,646 100 25,639,646
City of Gilroy Community Facilities District No. 2000-1 6,560,907 100 6,560,907 Santa Clara Valley Water District Benefit Assessment District 57,010,000 1.789 1,019,909 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $403,256,297 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations $914,957,860 1.79% $16,368,596 Santa Clara County Pension Obligation Bonds 341,399,194 1.789 6,107,632 Santa Clara County Board of Education Certificates of Participation 2,670,000 1.789 47,766 Gavilan Joint Community College District General Fund Obligations 6,670,000 26.138 1,743,405 Gilroy Unified School District Certificates of Participation 23,365,000 82.233 19,213,740 City of Gilroy General Fund Obligations 30,160,000 100 30,160,000 Santa Clara County Vector Control Certificates of Participation 1,765,000 1.789 31,576 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $73,672,715 Less: Santa Clara County supported obligations 452,211 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $73,220,504 TOTAL DIRECT DEBT $55,799,646
TOTAL GROSS OVERLAPPING DEBT $421,129,366
TOTAL NET OVERLAPPING DEBT $420,677,155
GROSS COMBINED TOTAL DEBT $476,929,012
NET COMBINED TOTAL DEBT $476,476,801
Ratios to 2020-21 Assessed Valuation :
Direct Debt ($25,639,646) 0.26%
Total Direct and Overlapping Tax and Assessment Debt 4.09% Total Direct Debt ($55,799,646)0.57%
Gross Combined Total Debt 4.84%
Net Combined Total Debt 4.83%
Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease City of Gilroy
Schedule of Direct and Overlapping Bonded Debt
June 30, 2021
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. 193
2011 2012 2013 2014 2015
Assessed valuation 5,829,162,100 5,837,732,543 5,806,144,639 6,238,973,584 6,714,164,849 Debt Limit Rate (1)15%15%15%15%15%
Debt limit 874,374,315 875,659,881 870,921,696 935,846,038 1,007,124,727 Total net debt applicable to limit:
General obligation bonds 33,830,000 33,190,000 32,520,000 31,820,000 31,095,000 Legal debt margin 840,544,315$ 842,469,881$ 838,401,696$ 904,026,038$ 976,029,727$ Total debt applicable to the limit
as a percentage of debt limit 4.0%3.9%3.9%3.5%3.2%
Continued
(1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City.
City of Gilroy
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
194
2016 2017 2018 2019 2020 2021
Assessed valuation 7,114,097,533 7,700,974,884 8,175,945,948 8,741,061,361 9,291,636,386 9,807,614,121 Debt Limit Rate (1)15%15%15%15%15%15%
Debt limit 1,067,114,630 1,155,146,233 1,226,391,892 1,311,159,204 1,393,745,458 1,471,142,118 Total net debt applicable to limit:
General obligation bonds 30,335,000 29,550,000 28,745,000 27,983,538 27,087,578 25,639,646 Legal debt margin 1,036,779,630$ 1,125,596,233$ 1,197,646,892$ 1,283,175,666$ 1,366,657,880$ 1,445,502,472$ Total debt applicable to the limit
as a percentage of debt limit 2.9%2.6%2.4%2.2%2.0%1.8%
End
(1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City.
City of Gilroy
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
195
2012 2013 2014 2015 2016
Gross revenues:
Charges for services 8,170,711$ 8,441,024$ 9,168,356$ 10,336,111$ 11,773,938$ Investment income (loss)451,737 283,816 370,199 257,938 210,826 Rate Stabilization Fund Balance - 750,000 - - - Transfer from Sewer Impact Fund 674,534 704,007 705,356 700,544 700,111 Total gross revenues 9,296,982 10,178,847 10,243,911 11,294,593 12,684,875 Operating expenses:
Operations 5,259,612 5,893,404 5,612,274 6,281,516 7,296,107 Billing 551,109 533,611 559,262 588,131 612,551 Administration 237,750 279,787 375,945 377,770 500,398 Claims and judgements - - - - - Total operating expenses 6,048,471 6,706,802 6,547,481 7,247,417 8,409,056 Net Revenues 3,248,511 3,472,045 3,696,430 4,047,176 4,275,819 Series 1999 installment
payments / Refunding Series 2010 payments 2,462,276$ 2,571,000$ 2,576,576$ 2,576,576$ 2,566,550$ Gross revenue debt service coverage 377.58% 395.91% 397.58% 438.36% 494.24% Net revenue debt service coverage 131.93% 135.05% 143.46% 157.08% 166.60% Fund available
Sewer Development Capital Project Fund 10,391,910$ 11,416,503$ 12,304,205$ 10,363$ 11,481,078$ Sewer Fund cash and cash equivalent 29,427,892 29,267,803 27,625,188 26,336,933 18,537,029 Rate stabilization fund - 750,000 750,000 750,000 750,000 Total funds available 39,819,802$ 41,434,306$ 40,679,393$ 27,097,296$ 30,768,107$ Days funds on hand 1,776 1,593 1,540 1,326 805 Fiscal Year
City of Gilroy
Revenue Bond Coverage - Wastewater System
Last Ten Fiscal Years
196
2017 2018 2019 2020 2021
Gross revenues:
Charges for services 12,644,730$ 12,720,141$ 12,904,657$ 12,872,189$ 12,702,398$ Investment income (loss)188,300 241,144 593,929 561,664 (29,535) Rate Stabilization Fund Balance - - - - - Transfer from Sewer Impact Fund 696,546 697,198 694,146 693,577 692,874 Total gross revenues 13,529,576 13,658,483 14,192,732 14,127,430 13,365,737 Operating expenses:
Operations 7,454,895 7,466,650 8,339,489 9,462,155 10,853,866 Billing 594,654 618,400 668,982 730,892 678,651 Administration 472,465 558,846 706,101 667,733 720,726 Claims and judgements - - - - - Total operating expenses 8,522,014 8,643,896 9,714,572 10,860,780 12,253,243 Net Revenues 5,007,562 5,014,587 4,478,160 3,266,650 1,112,494 Series 1999 installment
payments / Refunding Series 2010 payments 2,558,687$ 2,562,738$ 2,557,625$ 2,557,750$ 2,557,750$ Gross revenue debt service coverage 528.77% 532.96% 554.92% 552.34% 522.56% Net revenue debt service coverage 195.71% 195.67% 175.09% 127.72% 43.50% Fund available
Sewer Development Capital Project Fund 12,964,741$ 14,534,002$ 13,533,945$ 13,376,865$ 12,891,194$ Sewer Fund cash and cash equivalent 16,777,330 17,391,216 17,687,792 18,610,720 18,837,132 Rate stabilization fund 750,000 750,000 750,000 Total funds available 30,492,071$ 32,675,218$ 31,971,737$ 31,987,585$ 31,728,326$ Days funds on hand 719 734 665 625 561 Fiscal Year
Last Ten Fiscal Years
Revenue Bond Coverage - Wastewater System (Continued)
City of Gilroy
197
Fiscal Year
Population
(1)
Net Taxable
Assessed Values
Per Capita
Taxable
Property
Values Personal Income
Per Capita
Income
City
Unemployment
Rate (%) (2)
County
Population (1)
Public School
Enrollment (3)
2011-12 50,081 5,791,344,943 115,640 1,438,276,239 28,719 12.7%-- 2012-13 51,505 5,759,934,839 111,833 1,474,536,645 28,629 10.4%-- 2013-14 52,413 6,192,510,384 118,148 1,512,219,876 28,852 8.6%-- 2014-15 53,000 6,668,114,649 125,813 1,566,627,000 29,559 6.9%-- 2015-16 55,170 7,068,226,533 128,117 1,648,534,770 29,881 5.7%-- 2016-17 55,936 7,654,396,884 136,842 1,720,759,168 30,763 4.9%-- 2017-18 55,615 8,128,701,548 146,160 1,817,498,200 32,680 3.7% 1,956,598 11,834 2018-19 55,928 8,692,971,361 155,431 1,927,859,413 34,470 2.5% 1,954,282 11,652 2019-20 57,084 9,243,761,986 161,933 2,046,518,484 35,851 13.9% 1,961,969 11,672 2020-21 56,599 9,807,614,121 173,282 2,190,227,917 38,697 8.6% 1,934,171 10,248 Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2016-17 and prior: previously published ACFR Report ( - ) Data unavailable.
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Unemployment and Labor Force Data are provided by the EDD's Labor Market Information Division.
City of Gilroy
Demographic and Economic Statistics
Last Ten Fiscal Years
3.) Student Enrollment reflects the total number of students enrolled in the Las Virgenes Unified School District. Any other school districts within the City are not accounted for in this statistic.
198
Business Name
Number of
Employees Rank
Percent of
Total
Employment
(%)
Number of
Employees Rank
Percent of
Total
Employment
(%)
Gilroy Unified School District* 1,024 1 3.39%
Christopher Ranch LLC 696 2 2.30% 800 1 4.08%
Olam International (Formerly ConAgra-Gilroy Foods) 422 3 1.40% 500 4 2.55% Community Solutions 324 4 1.07%
Walmart Supercenter 305 5 1.01% 395 5 2.01%
Costco Wholesale 304 6 1.01% 220 7 1.12%
Saint Louise Regional Hospital 288 7 0.95% 550 2 2.81%
City of Gilroy 258 8 0.85%
Gavilan College 223 9 0.74%
Head Start Nursery 188 10 0.62% 180 9 0.92%
Gilroy Gardens Theme Park (formerly Bonfante) 500 3 2.55% Monterey Gourmet Foods 225 6 1.15%
Kaiser Permanente 200 8 1.02%
International Paper 180 10 0.92%
Total Top 10 Employers 4,032 13.35% 3,750 19.13%
Total City Labor Force (1) 30,200 19,607
Source: MuniServices, LLC / Avenu Insights & Analytics Source: 2013-14 previously published ACFR. Nine years prior data is unavailable.
Results based on direct correspondence with city’s local businesses. (1) Total City Labor Force provided by EDD Labor Force Data. * Includes FTE & PTE.
City of Gilroy
Principal Employers
Current Year and Seven Years Ago
2020-21 2013-14
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Department 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Administration 6 6 5 4 5 5 6 6 7 7 City Council and Mayor 7 7 7 7 7 7 7 7 7 7 Community Development 18 18 20 21 21 18 18 21 23 20 Finance 14 13 13 13 13 11 13 14 14 11 Fire 39 41 39 40 39 35 36 37 37 43 Fleet and Facilities 10 10 10 10 10 10 10 10 10 7 Human Resources 3 3 4 4 4 4 4 4 5 4 Information Technology 2 4 4 2 2 3 3 4 3 4 Police 87 87 88 93 94 87 92 94 96 98 Public Works 34 34 36 38 43 40 42 54 57 48 Recreation 11 11 11 11 12 10 11 11 11 4 Total 231 234 237 243 250 230 242 262 270 253 (a) Beginning in fiscal year 2013-2014, the amount represents the number of filled positions by departments. Prior to fiscal year 2013-14, the amounts noted represent budgeted positions.
City of Gilroy
Full-Time Equivalent City Employees
By Function / Program
Last Ten Fiscal Years
201
Function 2012 2013 2014 2015 2016
General Gvoernement
Number of Business Licenses Issued 2,958 2,855 2,615 3,034 2,685 Total Volunteer Service Hours 31,905 29,566 35,439 32,598 34,723 Total City-Wide Training Hours Provided 3,513 1,300 1,245 1,957 2,356 Total Vehicle Work Orders Generated 3,118 2,919 2,739 3,146 2,629 Total Facilities Work Orders Generated 1,660 1,658 1,613 1,542 1,445 Public Safety
Police
Number of 911 Calls Received 22,328 24,074 27,753 28,498 21,044 ** Number of Police Calls for Service 59,361 58,124 58,112 62,200 62,071 Number of Investigations Assigned to Detectives 781 769 727 821 913 Number of Case Reports Processed 10,708 11,956 11,926 13,566 12,621 Fire
Total Calls for Service 4,014 4,322 4,557 5,131 5,007 Total Fire Calls 172 178 182 179 223 Total Emergency Medical Aid Calls 2,410 2,566 2,802 3,341 3,323 Community Development
Number of Building Inspections Completed 14,055 13,938 14,101 21,592 24,500 Number of Building Permits Processed 1,160 1,158 1,706 2,042 2,197 Number of Fire Code Permits Issued 587 577 567 819 839 Public Works
430,000 660,000 930,000 90,000 274,479 Linear Feet of Preventive Cleaning 540,000 640,000 600,000 716,900 785,288 Million Gallons of Wastewater Treated per Day 6.39 6.27 6.05 5.99 5.97 Million Gallons of Municipal Water Produced per Day 7.71 8.32 7.87 6.79 5.94 Million Gallons of Wastewater Flow per Day (COG)0.37 3.58 3.45 3.50 3.59 Number of Utility Billing Customers 13,210 13,540 13,716 13,865 14,300 Recreation
Number of Registrations Processed 5,075 7,405 5,500 6,378 5,856 Number of Meals Provided to Seniors Annually 17,744 19,459 19,549 20,031 21,351 Source: City of Gilroy, Various City Departments
* Statistic not available
Square Feet of Chip/Cape/Slurry Seal Completed
City of Gilroy
Operating Indicators By Function / Program
Last Ten Fiscal Years
Fiscal Year
202
Function 2017 2018 2019 2020 2021
General Gvoernement
Number of Business Licenses Issued 3,166 3,800 3,965 3,160 4,319 Total Volunteer Service Hours 33,855 31,505 28,460 18,465 2,521 Total City-Wide Training Hours Provided 3,112 3,200 2,688 2,892 1,038 Total Vehicle Work Orders Generated 2,478 1,428 1,327 1,514 1,904 Total Facilities Work Orders Generated 1,317 1,428 1,411 1,488 1,405 Public Safety
Police
Number of 911 Calls Received 23,744 23,484 22,235 23,578 22,740 Number of Police Calls for Service 63,887 63,073 64,134 58,354 44,016 Number of Investigations Assigned to Detectives 845 815 986 1,023 971 Number of Case Reports Processed 12,320 12,478 11,075 11,020 10,095 Fire
Total Calls for Service 5,441 5,374 5,555 6,243 6,299 Total Fire Calls 223 265 282 336 381 Total Emergency Medical Aid Calls 3,735 3,707 3,739 4,065 4,089 Community Development
Number of Building Inspections Completed 23,623 17,991 17,450 14,618 15,652 Number of Building Permits Processed 1,903 1,970 2,050 1,300 1,361 Number of Fire Code Permits Issued 476 1,060 1,230 885 474 Public Works
Square Feet of Chip/Cape/Slurry Seal Completed 712,504 533,397 1,430,477 1,547,477 1,451,239 Linear Feet of Preventive Cleaning 707,379 854,304 897,479 849,228 632,280 Million Gallons of Wastewater Treated per Day 7.60 6.16 6.66 6.18 6.14 Million Gallons of Municipal Water Produced per Day 6.46 7.07 6.80 7.20 7.60 Million Gallons of Wastewater Flow per Day (COG)4.84 3.87 4.13 3.73 3.49 Number of Utility Billing Customers 14,549 14,870 15,133 15,218 15,311 Recreation
Number of Registrations Processed 5,807 4,952 4,737 4,232 2,380 Number of Meals Provided to Seniors Annually 22,566 23,815 25,103 21,979 19,525 Source: City of Gilroy, Various City Departments
* Statistic not available
** Available Data Reflects
Fiscal Year
City of Gilroy
Operating Indicators By Function / Program (Continued)
Last Ten Fiscal Years
203
2012 2013 2014 2015 2016
General Government
City Buildings 55 55 55 55 55 Public Safety
Police
Police Sattions 1 1 1 1 1 Police Vehicles 71 72 76 79 86 Fire
Fire Stations 3 3 3 3 3 Fire Vehicles 20 20 20 20 20 Public Works
Park sites 16 16 16 16 16 Centerline Miles of Streets 156 159 118 120 119 Number of Streetlights 3,894 3,969 4,150 4,150 4,773 Miles of Storm Trunk Mains 30 31 31 31 31 Miles of Sewer Mains 108 110 110 111 111 Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9 Water Meters in Municipal Service Area 13,319 13,651 13,831 14,127 14,669 Miles of Water Mains 116 120 121 152 152 Number of Fire Hydrants 1,948 1,960 2,048 2,150 2,265 Source: City of Gilroy, Various City Departments
Function
City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
204
2017 2018 2019 2020 2021
General Government
City Buildings 55 57 57 57 57 Public Safety
Police
Police Sattions 1 1 1 1 1 Police Vehicles 87 83 103 109 109 Fire
Fire Stations 3 3 3 3 3 Fire Vehicles 21 20 19 19 20 Public Works
Park sites 16 19 19 20 21 Centerline Miles of Streets 126 151 166 166 166 Number of Streetlights 4,794 4,841 4,861 4,885 4,295 Miles of Storm Trunk Mains 37 39 40 40 40 Miles of Sewer Mains 151 160 161 163 162 Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9 Water Meters in Municipal Service Area 14,783 14,450 15,133 15,220 15,266 Miles of Water Mains 204 205 210 205 219 Number of Fire Hydrants 2,290 1,948 2,229 2,187 2,293 Source: City of Gilroy, Various City Departments
Function
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
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