2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California
3 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, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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.
Supplementary 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 Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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, based on our audit, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California
4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2024, on our consideration of 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 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 City’s internal control over financial reporting and compliance.
Santa Ana, California
February 20, 2024
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City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
5 The following discussion and analysis of the financial performance of the City of Gilroy (the “City”) provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023 (FY23). 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 financial statements, which include Statement of Net Position and the Statement of Activities, provide information about the activities of the City as a whole and about overall financial condition of the City in a manner similar to a private sector business. 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 shorttermas well aswhatremains forfuture spending. Fundfinancial 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 governmentwide and fund financial statements.
FINANCIAL HIGHLIGHTS
• During FY23, 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, increased by $8.5 million to $381.8 million. Of the total net position, $100.7 million, or about 26%, remains unrestricted, which can be utilized for future spending or obligations, and the majority of the remaining, about 54%, consists of net investment in capital assets. Additional details can be found in the Statement of Net Position on page 20. • Total citywide revenues were $113.3 million, a net decrease of $10.5 million from the prior fiscal year. The net decrease in revenue is primarily in the operating and capital grants within the governmental activities, offset by increases in tax revenues (property and utility user taxes), and investment income. It is important to note that the operating and capital grants and contributions were notably higher in the prior fiscal year due to the American Rescue Plan Act (ARPA) funding the City received, and increased development related capital contributions in the form of development impact fees.
• Total citywide expenses were $105.2 million, a net increase of $7.4 million from the prior fiscal year. The increases were primarily in public safety and public works operations. • As of June 30, 2023, the City’s governmental funds reported a combined ending fund balance of $115.5 million, an increase of 4%, or $4.4 million, from the prior fiscal year. • The fund balance in the City’s General Fund increased by $4.0 million to $41.9 million, primarily from increases in tax revenues (property and utility user), charges for services, and investment income. During FY23, the General Fund had an excess of revenues over expenditures of $3.6 million, excluding transfers. • Actual revenues, excluding transfers, in the General Fund were $65.7 million, $2.3 million better than the final budget, primarily due to increased revenues from taxes, charges for services, and better than projected investment income attributed to the rapid increase in interest rate environment during the fiscal year. • Actual expenditures, excluding transfers, in the General Fund were $62.1 million, $3.5 million less than the final budget, primarily related to capital outlay and additional operational savings across all departments.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
6 • As of June 30, 2023, the City had $105.4 million in long-term debt, a net decrease of $6.3 million from the prior fiscal year. Of the total, governmental activities long-term debt portion is $52.9 million, consisting of $23.5 million in general obligation bonds, $28.2 million in lease revenue bonds, a loan payable of $0.7 million, and subscriptions payable of $0.6 million. The remaining $52.5 million is for business-type activities in the form of sewer revenue bonds. During the fiscal year, the City refinanced its Lease Revenue Bonds 2013 series in the amount of $14.6 million. The refunding resulted in $2.6 million savings in future debt service payments, with an economic gain of $2.1 million.
• The City’s net pension liabilities increased by $43 million to $103.7 million. The increase in the liabilities was primarily driven by negative investment earnings and higher interest costs on total pension liability which decreased the plans’ fiduciary net position during the measurement year. As a result, the deferred outflows related to pension for governmental activities increased by $17.0 million, and deferred inflows decreased by $20.0 million.
See Note 11 in the Notes to Basic Financial Statements for details. • The City’s other post‐employment benefit (OPEB) liabilities decreased by $3.5 million to $14.5 million. The decrease in the liabilities was primarily driven by the change in the assumption of a higher discount rate. See Note 12 in the Notes to Basic Financial Statements for details. • The City implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription‐Based Information Technology Arrangements (SBITA), effective fiscal year ended June 30, 2023. See Note 10 in the Notes to Basic Financial Statements for details.
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 informationaboutthe fiduciary relationships – like the custodial 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 majorfeatures of theCity’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 ofmanagement’sdiscussion and analysis explains the structure and contents of each of the statements.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
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 shortterm 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
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
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 the current year’s revenues and expenses are considered regardless of when cash is received or paid.
These two statements report on the City’s net position and changes in them. The City’s net position – the difference between assets, deferred inflows/outflows of resources and liabilities – can be considered 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. Other things to consider include other nonfinancial factors, 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 orto showthat it ismeeting 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. • 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 businesstype 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.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
9 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. The City currently serves as a fiduciary agent for various funds; however, pursuant to GASB 84 - which qualifies fiduciary activities for accounting and reporting purposes, only the following two funds are reported as fiduciary Funds in the Financial Statement. Other funds are reported as non-major funds or are grouped with the General Fund for Financial Statement purposes.
• Senior Advisory Board. The Senior Advisory Board fund is used to account for revenues generated from fundraising and donations. The funds are used to buy equipment and supplies for the Senior Center. • Highway 152 Series 2018. fund is used to account for special assessments collected to pay the bonded indebtedness for the Highway 152 Series 2018 Assessment District Bonds.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Figure 1: A summary of the government-wide statement of net position (in millions) follows:
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
10 2023 2022 2023 2022 2023 2022
Assets
Cash and investments $ 136.7 $ 131.6 $ 79.6 $ 91.1 $ 216.3 $ 222.7 Other assets 18.7 17.9 93.7 77.9 112.4 95.8
Capital assets 202.4 202.8 83.1 84.0 285.5 286.8
Total Assets 357.8 352.3 256.4 253.0 614.2 605.3
Deferred outflows
Related to pension 28.7 11.6 3.3 1.3 32.0 12.9
Related to OPEB 2.2 2.6 0.4 0.5 2.6 3.1
Total Deferred Outflows 30.9 14.2 3.7 1.8 34.6 16.0
Liabilities
Other Liabilities 18.4 15.3 6.1 5.2 24.5 20.5
Long term liabilities 161.8 130.2 66.4 63.5 228.2 193.7 Total Liabilities 180.2 145.5 72.5 68.7 252.7 214.2
Deferred inflows
Deferred gain on refunding 0.5 - - - 0.5 -
Related to pension 1.1 21.1 0.2 3.0 1.3 24.1
Related to OPEB 5.1 2.7 1.0 0.5 6.1 3.2
Related to leases 6.3 6.6 - - 6.3 6.6
Total Deferred Inflows 13.0 30.4 1.2 3.5 14.2 33.9
Net Position
Net investment in capital
assets 149.5 147.1 56.1 73.4 205.6 220.5
Restricted 73.0 71.6 - - 73.0 71.6
Unrestricted (deficit) (27.0) (28.0) 130.3 109.2 103.3 81.2 Total Net Position $ 195.5 $ 190.7 $ 186.4 $ 182.6 $ 381.9 $ 373.3 Governmental
Activities
Business-Type
Activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
11 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.
2023 2022 2023 2022 2023 2022
Revenues
Program revenues:
Charges for services $ 10.6 $ 10.3 $ 26.3 $ 26.9 $ 36.9 $ 37.2 Operating grants and contributions 8.7 15.5 - 0.4 8.7 15.9 Capital grants and contributions 7.2 18.2 0.6 0.6 7.8 18.8 General revenues:
Taxes: - - - -
Property taxes 21.6 20.3 - - 21.6 20.3
Sales taxes 22.9 23.2 - - 22.9 23.2
Transient occupancy taxes 1.8 1.5 - - 1.8 1.5
Franchise taxes 2.2 1.9 - - 2.2 1.9
Utility user taxes 6.6 5.5 - - 6.6 5.5
Real property transfer taxes 0.4 0.6 - - 0.4 0.6
Investment income/(loss) 3.4 (0.4) (0.4) (4.0) 3.0 (4.4) Miscellaneous income/(loss) 1.4 3.3 - - 1.4 3.3
Total revenues 86.8 99.9 26.5 23.9 113.3 123.8
Expenses:
General government 10.4 10.2 - - 10.4 10.2
Public safety 42.8 38.7 - - 42.8 38.7
Public works 17.3 13.8 - - 17.3 13.8
Community development 7.0 7.7 - - 7.0 7.7
Recreation services 1.8 1.6 - - 1.8 1.6
Interest expense 2.2 2.1 - - 2.2 2.1
Water - - 11.6 10.9 11.6 10.9
Sewer - - 12.1 12.7 12.1 12.7
Total expenses 81.5 74.1 23.7 23.6 105.2 97.7
Change in net position
before transfers 5.3 25.8 2.8 0.3 8.1 26.1
Transfers (0.9) (0.1) 0.9 0.1 - -
Change in net position 4.4 25.7 3.7 0.4 8.1 26.1
Net position, beginning of year as
restated (Note 19) 191.1 164.9 182.6 182.3 373.7 347.2
Net position, end of year $ 195.5 $ 190.7 $ 186.4 $ 182.6 381.9$ 373.3$ Governmental Activities Business-Type Activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
12 Governmental Activities: Figure 1 – Statement of Net Position illustrates the total net position increased by $4.4 million compared to the prior year, primarily in net investment in capital assets. Total asset’s increased by $5.5 million in the form of cash and investments. Total liabilities increased by $34.7million, attributable to the increase in pension liabilities driven by negative investment earnings and higher interest costs on the total pension liability. Figure 2 – Statement of Activities illustrates the program level revenues and expenses for the fiscal year. Total revenues for governmental activities were $86.8 million, about $13.1 million, or 13%, lower compared to the prior year primarily in the operating and capital grants and contributions. Revenues were notably higher in the prior fiscal year due to the one-time American Rescue Plan Act (ARPA) funding the City received, approximately $10.3 million, and increased development related capital contributions in the form of development impact fees. Tax revenues had a net increase of $2.5 million from prior year, primarily in property, a result of increases in assessed values and new developments added to the assessed roll, and utility user tax (notably in energy segment to include gas and electricity), a result of rise in energy prices. Total expenses for governmental activities were $81.5 million, about $7.4 million, or 10%, more compared to the prior fiscal year. The increase in expenses was primarily in the public safety (police and fire) and public works programs.
Business-type Activities: Figure 1 – Statement of Net Position illustrates the total net position for business-type activities increased by $3.8 million compared to the prior fiscal year, with a notable increase in unrestricted net position, offset by a decrease in net investment in capital assets related to investments in the Discretely presented Component Unit (DCU).
Total assets increased by $3.5million, notably in the other assets category, offset by a decrease in cash and investments.
In 2021, the City issued sewer revenue bonds, 2021A series, to finance its share of the South County Regional Wastewater Treatment plant expansion project. The project commenced in 2021 and is expected to complete by 2025, thus the decrease in cash and investment for draws against the bond proceeds, offset by increase in other assets including City’s investment in the plant. Total liabilities increased by $3.8 million, attributable to increase in the pension liabilities. Figure 2 - Statement of Activities illustrates the total revenues for business-type activities, excluding transfers, were $26.5 million, a net increase of $2.6 million from prior year, notably from investment income driven by the rapid increase in the interest rate environment during the fiscal year. Total expenses for business-type activities were $23.7 million, about $0.3 million more than the prior fiscal year.
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, Golf Course, Parking Management, 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. During FY21, the City implemented GASB 84 which provides guidance on accounting and reporting for fiduciary activities of the City. The implementation of GASB 84 resulted in an increase of assets and liabilities in the City’s governmental funds as some funds that were previously classified as fiduciary no longer met the criteria under GASB 84. For the City, these primarily include Revolving Deposits and Deposits on hand for other purposes such as employee wellness, and Barney J.
Garcia EMS Training.
At the end of FY23, the total fund balance of the general fund (as presented in the aforementioned manner) was $41.9 million consisting of $33.2 million in unassigned fund balance, $6.2 million in committed balance for economic reserves pursuant to the Council adopted General Fund reserve policy, and $2.5 million in restricted fund balance set aside in a Section 115 trust to prefund pension liabilities.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
13 Revenues decreased between the years ended June 30, 2022 and June 30, 2023 by $7.6 million, primarily in the intergovernmental revenues (one-time ARPA funds received in prior fiscal year), offset by an overall increases in taxes (property and utility user), charges for services, and investment income. Property taxes increased by $1.3 million compared to prior year, or about 7%, a result of increases in assessed values and new developments added to the assessed roll and additional excess Educational Revenue Augmentation Fund (ERFAF) distribution. Utility user tax increased by $1.1 million, compared to prior year, or about 20%, primarily in the energy segment of the tax base (gas and electricity) which had significant increases in prices due to inflationary factors.
Expenditures increased between the years ended June 30, 2022, and June 30, 2023 by $6.4 million, notably in the general government, public safety, and capital outlay. The primary category of expenditures in the General Fund is salaries and benefits. At the beginning of FY23, the City approved multi-year memorandum of understanding with various collective bargaining units with a focus on recruitment and retention in a competitive labor market. The City also made capital investments in the street rehabilitation program from the General Fund.
The Public Facilities Impact Capital Projects Fund has a total fund deficit of $1.1 million at the end of FY23, a decrease of $1.1 million from prior fiscal year. Excluding transfers, the revenues exceeded the expenditures by $2.1 million during the year. Transfers out exceeded transfers in by $3.1 million. The primary purposes of transfers out were to support various debt instruments and repayment of an interfund loan. In February 2008, this fund borrowed $13.7 million from several funds for the purchase of Gilroy Gardens. See Note 5, in the Notes to the Basic Financial Statements for additional information. The interfund loan balance outstanding at June 30, 2023 is $4.0 million.
Major Enterprise Funds. The City provides water and sewer utility services to the Gilroy community and operatives both as enterprises.
The total net position of the Sewer Fund increased by $1.2 million, to $106.2 million from the prior fiscal year. The unrestricted net position of the Sewer Fund at the end of the year amounted to $104.3 million, an increase of $19.0 million, or about 22%, from the prior year, offset by a decrease in net investment in capital assets of about $17.8 million largely due to drawdown of the 2021A bond proceeds to finance City’s share of the South County Regional Wastewater Treatment plant expansion project. The total operating revenues and operating expenditures for the Sewer Fund were $13.0 million and 10.7 million, respectively, netting $2.3 million in operating income for the year. Total nonoperating loss was $2.4 million attributed to interest expense and the fund’s share of the net loss on the DCU related to depreciation.
Transfers in exceeded transfers out by $1.2 million, which were primarily to support debt obligations.
The total net position of the Water Fund increased by $2.6 million, to $80.2 million from the prior fiscal year. The unrestricted net position of the Water Fund at the end of the year amounted to $26.0 million, an increase of $2.0 million, or about 8%, from the prior year. The net investment in capital assets increased by $0.6 million to $54.2 million. The total operating revenues and operating expenditures for the Water Fund were $13.3 million and 11.6 million, respectively, netting $1.7 million in operating income for the year. Total nonoperating income was $0.7 million, primarily from investment earnings. The fund received $0.6 million in capital contributions in the form of donated infrastructure from developments, off set by a transfer out of $0.4 million, for a net $0.2 million increase from capital contributions.
The last rate increases for both utilities were implemented in the 2019. During FY23, the City engaged a consultant to conduct a comprehensive water and wastewater rate study for both utilities. Subsequently, in October 2023, the City Council approved multi-year rate adjustments for both utilities, commencing on January 1, 2024, and annually there after for a five-year period. The table on the next page illustrates the average single-family monthly water (8,300 gallon consumption) and fixed monthly sewer charge for the five-year period.
11.6 p. 268 of 478
City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
14 Average Single-Family Water and Sewer Utility Bill
1/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028
Water $ 61.13 $ 64.80 $ 68.69 $ 72.81 $ 77.18
Sewer 51.07 53.11 55.24 57.45 59.74
Total Bill $ 112.20 $ 117.91 $ 123.93 $ 130.26 $ 136.92 % Increase 5% 5% 5% 5%
GENERAL FUND
The final budgeted operating revenues, excluding transfers, of the General Fund were $63.4 million. The actual operating revenues, excluding transfers, of the General Fund were $65.7 million, $2.3 million more than the final budget, from an overall increase in taxes (property and utility taxes), charges for services, and investment earnings.
The final budgeted operating expenditures, excluding transfers, of the General Fund were $65.6 million. The actual operating expenditures, excluding transfers, of the General Fund were $62.1 million, approximately $3.5million less than the final budget. Notable savings were capital outlay, approximately $2.1 million, related to streets and sidewalk rehabilitation, and general operational savings across all departments.
In June 2017, the City Council adopted a 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:
General Fund Reserve Description of Use Amount
Unrestricted Unbudgeted costs or revenue shortfall Minimum of 20% of expenditures Economic Stability Specific triggers in severe economic downturn Minimum of 10% of expenditures 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.
During FY23, the City adequately maintained the Unrestricted General Fund Reserves and the Economic Stability Reserves as required by the policy.
11.6 p. 269 of 478
City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
15 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 for the General Fund. 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 noted above, the City has two unrestricted reserve levels – the Unrestricted General Fund Reserves and the Economic Stability Reserve, neither of which were utilized during FY23. The City continues its conservative spending measures to ensure 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.
The City continues to take 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.
TheCity regularly reviews its revenuesandexpendituresand reports to the City Council tokeepboth the Council and the residents apprised of its current fiscal health and to ensure the adequate protection of the City’s financial resources.
CAPITAL ASSETS
As of June 30, 2023, the City’s capital assets, net of accumulated depreciation and amortization, for both the governmental and business-type activities, amounted to $285.5 million, a net decrease of $2.6 million primarily a result of depreciation and amortization.
Additional information on the City’s capital assets can be found in Note 7 of the Basic Financial Statements. 2023 2022 2023 2022 2022 2021
Land $ 21.3 $ 21.3 $ - $ - $ 21.3 $ 21.3
Construction in progress 13.2 5.7 0.1 0.1 13.3 5.8
Buildings and improvements 72.6 75.6 - - 72.6 75.6
Equipment and furniture 1.5 2.0 - - 1.5 2.0
IT equipment and software 1.2 0.5 - - 1.2 0.5
Vehicle 4.1 3.8 0.2 0.2 4.3 4.0
Infrastructure 87.5 93.9 82.8 83.7 170.3 177.6
Subscription assets 1.0 1.3 - - 1.0 1.3
Total $ 202.4 $ 204.1 $ 83.1 $ 84.0 $ 285.5 $ 288.1
(in millions)
Governmental activities Business-type activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
16 LONG-TERM DEBT
As of June 30, 2023, the City’s governmental activities had bonded debt outstanding of $52.9 million, including $2.1 million of unamortized premium. Of this amount, $23.5 million represents general obligation bonds secured solely by specified revenue sources, $28.2 million represents lease refunding revenue bonds, and $0.6 million represents streetlights related loan payable. During the fiscal year, the City refinanced its Lease Revenue Bonds 2013 series in the amount of $14.6 million. The refunding resulted in $2.6 million savings in future debt service payments, with an economic gain of $2.1 million.
As of June 30, 2023, the City’s business-type activities had $52.5 million bonded debt outstanding, consisting of $5.4 million of unamortized premium, and $47.1 million of 2021 wastewater revenue refunding bonds. During the year, the 2010 wastewater revenue bonds fully matured thus were retired.
See Note 10 in theNotes to the Basic Financial Statements for further discussion.
Requests for Information
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 FinanceDirector’s Office, attheCity ofGilroy, 7351Rosanna Street, Gilroy, California 95020.
2023 2022
Governmental Activities:
Loan Payable $ 0.6 $ 0.7
General Obligation Bonds 23.5 24.6
Refunding Lease Revenue Bonds 28.2 31.3
Subscriptions payable 0.6 -
Total Governmental Activities $ 52.9 $ 56.6
Business-Type Activites:
Revenue Bonds 52.5 55.1
Total Business-Type Activities $ 52.5 $ 55.1
Total Long-Term Debt $ 105.4 $ 111.7
(in millions)
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BASIC FINANCIAL STATEMENTS
17 11.6
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18 11.6
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
19 11.6
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Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
ASSETS
Current assets:
Cash and investments 134,234,370 $ 54,125,363 $ 188,359,733 $ 11,207,900 $ Cash and investments with fiscal agent 2,535,176 25,470,094 28,005,270 - Accounts receivable, net 948,474 3,060,200 4,008,674 217,930 Due from other governments 5,219,607 - 5,219,607 3,936,322 Prepaid items 134,351 12,200 146,551 -
Interest receivable 2,082,457 - 2,082,457 106
Loans receivable 3,043,638 - 3,043,638 -
Lease receivable - current 256,201 - 256,201 -
Due from primary government - - - 3,889,410
Total current assets 148,454,274 82,667,857 231,122,131 19,251,668 Noncurrent assets:
Land held for resale 706,754 - 706,754 -
Equity investment in DCU - 90,606,337 90,606,337 -
Lease receivable - noncurrent 6,186,556 - 6,186,556 -
Capital assets - nondepreciable 34,542,512 108,139 34,650,651 77,576,425 Capital assets - depreciable/amortizable, net 167,883,221 83,018,468 250,901,689 58,804,203 Total noncurrent assets 209,319,043 173,732,944 383,051,987 136,380,628 Total assets 357,773,317 256,400,801 614,174,118 155,632,296
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 28,654,962 3,302,164 31,957,126 - Deferred outflows of resources related to OPEB 2,209,539 433,450 2,642,989 - Total deferred outflows of resources 30,864,501 3,735,614 34,600,115 - Primary Government
City of Gilroy
Statement of Net Position
June 30, 2023
See accompanying Notes to the Basic Financial Statements 20 11.6
p. 275 of 478
Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
LIABILITIES
Current liabilities:
Accounts payable 4,159,690 518,594 4,678,284 7,102,883
Accrued payroll and benefits 3,535,084 280,216 3,815,300 15,108 Deposits payable 3,983,548 25,000 4,008,548 -
Interest payable 525,445 638,958 1,164,403 -
Unearned revenues 670,673 - 670,673 -
Due to DCU - 3,889,410 3,889,410 -
Compensated absences, due within one year 193,723 28,035 221,758 2,115 Claims payable, due within one year 1,682,152 - 1,682,152 - Long-term debt, due within one year 3,562,430 725,000 4,287,430 - Total current liabilities 18,312,745 6,105,213 24,417,958 7,120,106 Noncurrent liabilities:
Compensated absences, due in more than one year 1,743,510 252,316 1,995,826 19,035 Claims payable, due in more than one year 6,964,768 - 6,964,768 - Long-term debt, due in more than one year 49,381,573 51,769,265 101,150,838 - Aggregate net pension liabilities 91,683,383 12,050,787 103,734,170 - Total OPEB liabilities 12,119,260 2,377,462 14,496,722 - Total noncurrent liabilities 161,892,494 66,449,830 228,342,324 19,035 Total liabilities 72,555,043 180,205,239 252,760,282 7,139,141
DEFERRED INFLOWS OF RESOURCES
Deferred gain on refunding 509,284 - 509,284 -
Deferred lease-related items 6,318,655 - 6,318,655 32,679 Deferred pension-related items 1,120,520 211,315 1,331,835 - Deferred OPEB-related items 5,026,401 986,040 6,012,441 - Total deferred inflows of resources 12,974,860 1,197,355 14,172,215 32,679
NET POSITION
Net investment in capital assets 149,484,869 56,102,436 205,587,305 136,380,628 Restricted for:
Minority interest of DCU - - - 57,854,139
Public Agency Retirement Services (PARS) 2,506,565 - 2,506,565 - Public safety 930,460 - 930,460 -
Community development 13,324,704 13,324,704 - -
Public works 57,098,436 57,098,436 - -
Debt service 1,659,894 - 1,659,894 -
Total restricted 75,520,059 75,520,059 - 57,854,139
Unrestricted (deficit) (29,547,209) 130,281,581 100,734,372 (45,774,291) Total net position $ 195,457,719 $ 186,384,017 $ 381,841,736 $ 148,460,476 June 30, 2023
Statement of Net Position (Continued)
City of Gilroy
Primary Government
See accompanying Notes to the Basic Financial Statements 21 11.6
p. 276 of 478
Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government 10,440,465 $ 4,645,730 $ 737,581 $ - $ Public safety 42,789,395 713,565 1,344,843 -
Community development 6,999,373 3,513,190 1,965,448 -
Public works 17,285,317 1,122,432 4,635,560 7,203,431
Recreation services 1,755,454 561,859 - -
Interest 2,199,547 - - -
Total Governmental Activities 81,469,551 10,556,776 8,683,432 7,203,431 Business-Type Activities:
Sewer 12,134,168 13,037,892 - -
Water 11,574,875 13,286,485 47,697 561,591
Total Business-Type Activities 23,709,043 26,324,377 47,697 561,591 Total Primary Government $ 105,178,594 $ 36,881,153 $ 8,731,129 $ 7,765,022 Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority $ 12,620,571 $ 688,372 $ 8,565,098 $ 30,964,183 City of Gilroy
Statement of Activities
For the Year Ended June 30, 2023
Program Revenues
See accompanying Notes to the Basic Financial Statements 22 11.6
p. 277 of 478
Discrete Component
Unit (DCU)
South County
Governmental Business-Type Regional Wastewater
Activities Activities Total Authority
Functions/Programs
Primary Government (PG)
Governmental Activities:
General government $ (5,057,154) $ - $ (5,057,154) $ -
Public safety (40,730,987) - (40,730,987) -
Community development (1,520,735) - (1,520,735) -
Public works (4,323,894) - (4,323,894) -
Recreation services (1,193,595) - (1,193,595) -
Interest (2,199,547) - (2,199,547) -
Total Governmental Activities (55,025,912) - (55,025,912) - Business-Type Activities:
Sewer - 903,724 903,724 -
Water - 2,320,898 2,320,898 -
Total Business-Type Activities - 3,224,622 3,224,622 -
Total Primary Government (55,025,912) 3,224,622 (51,801,290) - Discretely Presented Component Unit (DCU)
South County Regional Wastewater
Authority - - - 27,597,082
General Revenues:
Taxes:
Property taxes 21,600,130 - 21,600,130 -
Sales taxes 22,936,208 - 22,936,208 -
Transient occupancy taxes 1,754,615 - 1,754,615 -
Franchise taxes 2,198,150 - 2,198,150 -
Utility users tax 6,551,417 - 6,551,417 -
Real property transfer taxes 404,075 - 404,075 -
Investment income(loss) 3,438,121 (365,320) 3,072,801 276,765 Miscellaneous 1,417,790 6,586 1,424,376 -
Transfers (878,113) 878,113 - -
Total General Revenues 59,422,393 519,379 59,941,772 276,765 Changes in Net Position 4,396,481 3,744,001 8,140,482 27,873,847 Net Position - Beginning, as restated (Note 19) 191,061,238 182,640,016 373,701,254 120,586,629 Net Position - Ending $ 195,457,719 $ 186,384,017 $ 381,841,736 $ 148,460,476 Net (Expense) Revenue and Changes in Net Position
City of Gilroy
Statement of Activities (Continued)
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements 23 11.6
p. 278 of 478
24 11.6
p. 279 of 478
FUND FINANCIAL STATEMENTS
25 11.6
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26 11.6
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
27 11.6
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28 11.6
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Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
ASSETS
Cash and investments $ 2,970,804 41,687,877 $ 69,777,899 $ 114,436,580 $ Receivables:
Accounts - 590,797 303,504 894,301
Due from other governments - 4,761,994 457,613 5,219,607 Interest - 1,158,641 922,354 2,080,995
Loans - - 3,043,638 3,043,638
Leases - 5,692,308 - 5,692,308
Due from other funds - 456,085 - 456,085
Advances from other funds - - 1,523,222 1,523,222
Prepaid items 23,750 - - 23,750
Land held for resale - - 706,754 706,754
Restricted assets:
Cash and investments with fiscal agents 2,532,036 - 3,140 2,535,176 Total assets $ 56,903,488 $ 2,970,804 $ 76,738,124 $ 136,612,416
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ 2,784,476 $ 1,485 $ 789,751 $ 3,575,712 Accrued liabilities 1,877,001 - 59,273 1,936,274
Deposits payable 3,943,972 - 35,299 3,979,271
Unearned revenue 421,472 - 249,201 670,673
Due to other funds 300,761 - 155,324 456,085
Advances to other funds 4,019,735 - 4,019,735 -
Total liabilities 9,327,682 4,021,220 1,288,848 14,637,750 Deferred inflows of resources:
Lease related 5,623,833 - 5,623,833 -
Unavailable revenues - - 860,105 860,105
Total deferred inflows of resources 5,623,833 - 860,105 6,483,938 Fund balances (deficit):
Nonspendable 23,750 - - 23,750
Restricted 2,532,036 71,140,553 - 73,672,589
Committed 6,205,317 - 6,205,317 -
Assigned - 3,603,942 - 3,603,942
Unassigned (deficit) 33,190,870 (1,050,416) (155,324) 31,985,130 Total fund balances (deficit) 41,951,973 (1,050,416) 74,589,171 115,490,728 Total liabilities, deferred inflows
of resources, and fund balances $ 56,903,488 $ 2,970,804 $ 76,738,124 $ 136,612,416 City of Gilroy
Balance Sheet
June 30, 2023
Governmental Funds
See accompanying Notes to the Basic Financial Statements 29 11.6
p. 284 of 478
Total Fund Balances - Total Governmental Funds $ 115,490,728 Nondepreciable, net of $2,899,734 reported in Internal Service Funds 31,642,778 $ Depreciable/amortizable, net of $6,492,417 reported in Internal Service Funds 161,390,804 193,033,582 Bonds payable $ (49,629,176)
Subscription liabilities, net of $625,093 reported in Internal Service Funds - Premium on bonds payable (2,109,609)
Unamortized deferred charges on refunding (509,284)
Loans payable (580,125)
Interest payable, net of $5,447 reported in Internal Service Funds (519,998) Compensated absences, net of $77,983 reported in Internal Service Funds (1,859,250) (55,207,442) Pension related deferred outflows of resources $ 28,654,962 Aggregate net pension liability (91,683,383)
Pension related deferred inflows of resources (1,120,520) (64,148,941) OPEB related deferred outflows of resources $ 2,209,539 Aggregate net OPEB liability (12,119,260)
OPEB related deferred inflows of resources (5,026,401) (14,936,122) 860,105
20,365,809
Net Position of Governmental Activities $ 195,457,719
City of Gilroy
Reconciliation of the Governmental Funds Balance Sheet to the June 30, 2023
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 30 11.6
p. 285 of 478
Capital
Projects
Fund
Public Other
General Facilities Governmental
Fund Impact Funds Total
Revenues:
Taxes $ - 51,164,140 $ 2,737,595 $ 53,901,735 $
Intergovernmental 1,257,731 - 9,788,254 8,530,523
Charges for services 7,621,129 - 7,621,129 -
Developer impact fees - 2,073,785 7,021,901 4,948,116
Licenses and permits 2,696,318 - 2,696,318 -
Fines and forfeitures 255,359 - 255,359 -
Investment income (loss) 60,303 1,813,640 3,094,097 1,220,154 Miscellaneous 901,169 - 2,395,534 1,494,365
Total revenues 65,709,486 2,134,088 18,930,753 86,774,327 Expenditures:
Current:
General government 9,321,641 - 13,413 9,335,054
Public safety 39,386,899 - 1,160,311 40,547,210
Recreation services 1,755,215 - 1,755,215 -
Community development 4,695,567 - 986,613 5,682,180
Public works 5,296,285 8,928 768,638 6,073,851
Capital outlay 1,575,059 10,571,845 - 12,146,904
Debt service:
Principal retirement 22,500 - 2,938,964 2,961,464
Interest and fiscal charges - 58,858 2,038,287 2,097,145 Bond issuance cost - - 169,268 169,268
Total expenditures 62,053,166 67,786 18,647,339 80,768,291 Excess of revenues over
expenditures 3,656,320 2,066,302 283,414 6,006,036
Other financing sources (uses):
Issuance of debt - - 14,587,831 14,587,831
Payment to refunded bond escrow - - (15,352,976) (15,352,976) Transfers in 2,579,508 40,763 3,705,026 6,325,297
Transfers out (2,189,571) (3,188,031) (1,825,808) (7,203,410) Total other financing sources (uses) 389,937 (3,147,268) 1,114,073 (1,643,258) Net change in fund balances 4,046,257 (1,080,966) 1,397,487 4,362,778 Fund balances(deficit):
Beginning of year 37,905,716 30,550 73,191,684 111,127,950 End of year $ 41,951,973 $ (1,050,416) $ 74,589,171 $ 115,490,728 City of Gilroy
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements 31 11.6
p. 286 of 478
Net Change in Fund Balances - Total Governmental Funds $ 4,362,778 Capital outlay, net of $2,200,956 reported in Internal Service Fund 8,615,696 $ Depreciation and amortization, net of $1,199,705 reported in Internal Service Funds (10,809,339) Net effect on disposal of capital assets (414,264) (2,607,907) 59,856
(509,284)
Bonds payable $ 18,030,605
Subscription liabilities 22,500
Loans payable 93,359 18,146,464
(14,587,831)
(57,826)
801,952
(106,317)
(1,517,891)
96,062
316,425
Change in Net Position of Governmental Activities $ 4,396,481 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.
Compensated absences is net of $2,598 reported in Internal Service 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 premium 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 premium was not reported as an expenditure in the governmental funds.
Deferred outflow related to the refunding gain is not a expenditure in the Statement of Activities, but is reported as a deferred outflow 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.
Bond proceeds on long-term debt is not a revenue in the Statement of Activities, but is considered an other financing resources in governmental funds
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, 2023
in Fund Balances to the Government-Wide Statement of Activities See accompanying Notes to the Basic Financial Statements 32 11.6
p. 287 of 478
PROPRIETARY FUND FINANCIAL STATEMENTS
33 11.6
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
ASSETS
Current assets:
Cash and investments 23,070,297 $ 31,055,066 $ 54,125,363 $ 19,797,790 $ Cash and investments with fiscal agent 25,470,094 - 25,470,094 - Accounts receivable 1,465,887 1,594,313 3,060,200 54,173 Interest receivable - - - 1,462
Lease receivable - current - - - 96,347
Prepaid items 6,100 6,100 12,200 110,601
Total current assets 50,012,378 32,655,479 82,667,857 20,060,373 Noncurrent assets:
Advances to other funds - - - 2,496,513
Equity investment in DCU 90,606,337 - 90,606,337 -
Lease receivable - noncurrent - - - 654,102
Capital assets:
Capital assets, not depreciated/amortizable - 108,139 108,139 2,899,734 Capital assets, depreciated/amortizable, net 28,895,390 54,123,078 83,018,468 6,492,417 Total noncurrent assets 119,501,727 54,231,217 173,732,944 12,542,766 Total assets 169,514,105 86,886,696 256,400,801 32,603,139
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension 1,693,787 1,608,377 3,302,164 - Deferred outflows of resources related to OPEB 208,796 224,654 433,450 - Total deferred outflows of resources 1,902,583 1,833,031 3,735,614 - June 30, 2023
Proprietary Funds
Statement of Net Position
City of Gilroy
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 34 11.6
p. 289 of 478
Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
LIABILITIES
Current liabilities:
Accounts payable 22,433 496,161 518,594 583,978
Accrued liabilities 131,458 148,758 280,216 1,598,810
Deposits payable - 25,000 25,000 4,277
Interest payable 638,958 - 638,958 5,447
Due to DCU 3,889,410 - 3,889,410 -
Compensated absences, current portion 14,658 13,377 28,035 7,798 Claims payable, current portion - - - 1,682,152
Bonds payable, current portion 725,000 - 725,000 -
Subscription liabilities, current portion - - - 311,213 Total current liabilities 5,421,917 683,296 6,105,213 4,193,675 Noncurrent liabilities:
Compensated absences 131,922 120,394 252,316 70,185
Claims payable - - - 6,964,768
Bonds payable 51,769,265 - 51,769,265 -
Subscription liabilities - - - 313,880
Net pension liability 6,181,240 5,869,547 12,050,787 -
Net OPEB liability 1,145,241 1,232,221 2,377,462 -
Total noncurrent liabilities 59,227,668 7,222,162 66,449,830 7,348,833 Total liabilities 64,649,585 7,905,458 72,555,043 11,542,508
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases - - - 694,822 Deferred inflows of resources related to pension 108,390 102,925 211,315 - Deferred inflows of resources related to OPEB 474,983 511,057 986,040 - Total deferred inflows of resources 583,373 613,982 1,197,355 694,822
NET POSITION
Net investment in capital assets 1,871,219 54,231,217 56,102,436 9,392,151 Unrestricted 104,312,511 25,969,070 130,281,581 10,973,658 Total net position $ 106,183,730 $ 80,200,287 $ 186,384,017 $ 20,365,809 City of Gilroy
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 35 11.6
p. 290 of 478
36 11.6
p. 291 of 478
Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
OPERATING REVENUES:
Charges for services 13,037,892 $ 13,286,485 $ 26,324,377 $ $ 11,567,760 Miscellaneous - 6,586 6,586 520,467
TOTAL OPERATING REVENUES 13,037,892 13,293,071 26,330,963 12,088,227 OPERATING EXPENSES:
Operations 7,535,006 8,516,647 16,051,653 7,739,282
Depreciation and amortization 1,511,887 1,419,650 2,931,537 1,199,705 Billing 924,907 884,298 1,809,205 -
Administration 775,649 754,280 1,529,929 246,197
Claims and judgments 2,295 - 2,295 597,649
Insurance premiums - - 2,313,195 -
TOTAL OPERATING EXPENSES 10,749,744 11,574,875 22,324,619 12,096,028 OPERATING INCOME (LOSS) 2,288,148 1,718,196 4,006,344 (7,801) NONOPERATING REVENUES (EXPENSES):
Investment income 825,083 605,084 1,430,167 344,096
Interest expense (1,384,424) (1,384,424) - (15,419)
Intergovernmental - 47,697 47,697 -
Gain (loss) on disposal of capital assets - - - (4,451) Share of DCU net loss (1,795,487) (1,795,487) - -
Total Nonoperating Income (Loss) (2,354,828) 652,781 (1,702,047) 324,226
NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (66,680) 2,370,977 2,304,297 316,425 TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in 1,543,668 1,543,668 - -
Transfers out (311,862) (353,693) (665,555) -
Capital contributions 561,591 - 561,591 -
TOTAL TRANSFERS AND
CAPITAL CONTRIBUTIONS 207,898 1,231,806 1,439,704 -
CHANGES IN NET POSITION 1,165,126 2,578,875 3,744,001 316,425 NET POSITION:
Beginning of the year 105,018,604 77,621,412 182,640,016 20,049,384 End of the year $ 106,183,730 $ 80,200,287 $ 186,384,017 $ 20,365,809 Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position City of Gilroy
Business-Type Activities
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements 37 11.6
p. 292 of 478
Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 13,223,888 $ 13,498,079 $ $ 26,721,967 $ 12,032,724 Cash paid to suppliers for goods and services (6,700,799) (6,765,815) (13,466,614) (8,132,530) Cash paid to employees for services (3,010,762) (3,437,478) (6,448,240) (133,467) Cash paid for insurance claims - - - (2,571,081)
Net Cash Provided by Operating Activities 3,512,327 3,294,786 6,807,113 1,195,646
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other governments - 47,697 47,697 -
Cash received from (paid to) other funds 1,231,806 (353,693) 878,113 252,117 Contributions to DCU (15,139,972) - (15,139,972) -
Net Cash Provided by (Used in) Noncapital Financing Activities (13,908,166) (305,996) (14,214,162) 252,117
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from issuance of debt - - - 165,908
Acquisition of capital assets (72,711) (1,430,626) (1,503,337) (2,200,956) Principal paid (2,451,250) (11,250) (2,462,500) (408,524) Interest paid (1,594,500) - (1,594,500) (9,972)
Net Cash (Used in) Capital and Related
Financing Activities (1,441,876) (4,118,461) (5,560,337) (2,407,091) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 825,083 605,084 1,430,167 343,380
Net Cash Provided by Investing Activities 825,083 605,084 1,430,167 343,380 Net Change In Cash and Cash Equivalents (13,689,217) 2,151,998 (11,537,219) (615,948) CASH AND CASH EQUIVALENTS:
Beginning of year 62,229,608 28,903,068 91,132,676 20,413,738 End of year $ 31,055,066 48,540,391 $ $ 79,595,457 $ 19,797,790 CASH AND CASH EQUIVALENTS:
Cash and investments $ 23,070,297 $ 31,055,066 $ 54,125,363 $ 19,797,790 Cash and investments with fiscal agent 25,470,094 - 25,470,094 - Total cash and cash equivalents $ 31,055,066 48,540,391 $ $ 79,595,457 $ 19,797,790 City of Gilroy
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 38 11.6
p. 293 of 478
Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Operating income (loss) $ 2,288,148 $ 1,718,196 $ 4,006,344 $ (7,801) Adjustments to reconcile to net cash provided by
Operating activities:
Depreciation and amortization 1,511,887 1,419,650 2,931,537 1,199,705 Changes in assets and liabilities:
(Increase)/decrease in accounts receivables 185,996 198,696 384,692 (30,591) (Increase)/decrease in lease receivables - - 49,370 -
(Increase)/decrease in prepaid items (6,100) (6,100) (12,200) (24,926) (Increase)/decrease in deferred outflows of resources
related to pensions (997,211) (999,449) (1,996,660) -
(Increase)/decrease in deferred outflows of resources
related to OPEB 57,820 38,825 96,645 -
Increase/(decrease) in accounts payable (14,400) (53,291) (67,691) 71,411 Increase/(decrease) in accrued liabilities (34,781) (63,312) (98,093) 73,252 Increase/(decrease) in deposits payable - 6,312 6,312 1 Increase/(decrease) in compensated absences 33,653 13,880 47,533 (16,098) Increase/(decrease) in claims payable - - (44,364) -
Increase/(decrease) in net pension liabilities 2,142,945 2,339,382 4,482,327 - Increase/(decrease) in net OPEB liabilities (386,869) (281,865) (668,734) - Increase/(decrease) in deferred inflows of resources
related to lease related - - (74,313) -
Increase/(decrease) in deferred inflows of resources
related to pensions (1,471,651) (1,278,303) (2,749,954) - Increase/(decrease) in deferred inflows of resources
related to OPEB 202,890 242,165 445,055 -
Net Cash Provided by Operating Activities $ 3,294,786 3,512,327 $ $ 6,807,113 $ 1,195,646 Noncash Financing, capital or Investing activities:
City share of DCU net loss $ - (1,795,487) $ $ - $ -
Capital asset contributions $ 561,591 - $ $ 561,591 $ - City of Gilroy
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities
See accompanying Notes to the Basic Financial Statements 39 11.6
p. 294 of 478
40 11.6
p. 295 of 478
FIDUCIARY FUND FINANCIAL STATEMENTS
41 11.6
p. 296 of 478
42 11.6
p. 297 of 478
Custodial
Funds
ASSETS
Cash and investments $ 840,399
Cash and investments with fiscal agent 299,364
Accounts receivable 9,549
Total assets 1,149,312
NET POSITION
Restricted For:
Individuals, organizations and other governments 1,149,312 Total net position $ 1,149,312
As of June 30, 2023
Statement of Fiduciary Net Position
City of Gilroy
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements 43 11.6
p. 298 of 478
Custodial
Funds
ADDITIONS:
Taxes $ 932,693
Investment income 15,273
Other income 58
Total additions 948,024
DEDUCTIONS:
General administration 43,453
Payments on conduit bonds - principal 701,610
Payments on conduit bonds - interest 184,083
Total deductions 929,146
CHANGE IN NET POSITION 18,878
NET POSITION:
Beginning of year 1,130,434
End of year $ 1,149,312
City of Gilroy
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements 44 11.6
p. 299 of 478
45 NOTES TO THE BASIC FINANCIAL STATEMENTS
11.6 p. 300 of 478
46 11.6
p. 301 of 478
City of Gilroy
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
47 Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 49 A. Description of the Reporting Entity ............................................................................................... 49 B. Basis of Accounting and Measurement Focus ............................................................................... 50 C. Cash and Investments ..................................................................................................................... 52 D. Interfund Loans Receivable and Payable ....................................................................................... 53 E. Accounts Receivable and Due from Other Governments .............................................................. 53 F. Loans Receivable ........................................................................................................................... 53 G. Land Held for Resale ...................................................................................................................... 54 H. Leases ............................................................................................................................................ 54 I. Capital Assets ................................................................................................................................. 54 J. Subscription-Based Information Technology Arrangements (SBITAs) ........................................ 55 K. Deferred Outflows/Inflows of Resources ....................................................................................... 56 L. Interest Payable .............................................................................................................................. 56 M. Unearned Revenue ......................................................................................................................... 56 N. Compensated Absences .................................................................................................................. 57 O. Net Pension Liability ...................................................................................................................... 57 P. Other Postemployment Benefits Liability ...................................................................................... 58 Q. Claims Payable ............................................................................................................................... 58 R. Net Position .................................................................................................................................... 58 S. Fund Balances ................................................................................................................................ 58 T. Spending Policy ............................................................................................................................. 59 U. Property Taxes ............................................................................................................................... 60 V. Use of Estimates ............................................................................................................................. 60 W. Implementation of New GASB Pronouncements .......................................................................... 61 X. New GASB Pronouncements ......................................................................................................... 61 Note 2 – Stewardship, Compliance and Accountability ................................................................................... 62 A. Encumbrances ................................................................................................................................ 62 B. Continuing Appropriations ............................................................................................................. 62 C. Deficit Fund Balances/Net Position ............................................................................................... 62 D. Excess of Expenditure Over Appropriations .................................................................................. 63 Note 3 – Cash and Investments .......................................................................................................................... 63 A. Demand Deposits ........................................................................................................................... 64 B. Investments Authorized by the California Government Code and the City's Investment Policy ................................................................................................................. 64 C. Fair Value Measurements ............................................................................................................... 64 D. Disclosures Relating to Interest Rate Risk ..................................................................................... 65 E. Disclosures Relating to Credit Risk ............................................................................................... 65 F. Concentration of Credit Risk .......................................................................................................... 66 G. Custodial Credit Risk ..................................................................................................................... 66 H. Investment in State Investment Pool .............................................................................................. 66 Note 4 – Loans Receivable .................................................................................................................................. 67
11.6 p. 302 of 478
City of Gilroy
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
48 Page
Note 5 – Interfund Transactions ......................................................................................................................... 67 A. Due to/from Other Funds .................................................................................................................. 67 B. Advances to/from Other Funds ......................................................................................................... 67 C. Transfers ............................................................................................................................................ 68 D. Due to/from Component Unit ........................................................................................................... 68 Note 6 – Lease Receivables .................................................................................................................................. 69 Note 7 – Capital Assets ........................................................................................................................................ 70 Note 8 – Equity Investment in Discretely Presented Component Unit ........................................................... 72 Note 9 – Deferred Compensation ........................................................................................................................ 73 Note 10 – Long-Term Liabilities ......................................................................................................................... 73 A. Governmental Activities ................................................................................................................. 73 B. Business-Type Activities ................................................................................................................. 77 C. Debt without Government Commitment ......................................................................................... 78 Note 11 – Defined Benefit Pension Plans (CalPERS) ........................................................................................ 79 A. Summary ......................................................................................................................................... 79 B. General Information about the Pension Plans ................................................................................. 80 C. Net Pension Liability ....................................................................................................................... 82 D. Changes in the Net Pension Liability .............................................................................................. 84 E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions .................... 85 Note 12 – Other Postemployment Benefits (OPEB) .......................................................................................... 87 Note 13 – Claims Payable .................................................................................................................................... 90 Note 14 – Risk Management ................................................................................................................................ 90 Note 15 – Commitments and Contingencies ...................................................................................................... 91 Note 16 – Net Investment in Capital Assets ....................................................................................................... 92 Note 17 – Classification of Fund Balances ......................................................................................................... 93 Note 18 – Tax Abatement .................................................................................................................................... 94 Note 19 – Prior Period Adjustments ................................................................................................................... 94
11.6 p. 303 of 478
City of Gilroy
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
49 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 of America (“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 (“Gilroy Public 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.
11.6 p. 304 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
50 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.
11.6 p. 305 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
51 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 Services, Equipment Outlay, Workers' Compensation, General Liability, Facility Services, Information Technologies and Personnel Benefits.
11.6 p. 306 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
52 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 funds:
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.
11.6 p. 307 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
53 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 Receivable and Due from Other Governments
All accounts receivable 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.
11.6 p. 308 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
54 Note 1 – Summary of Significant Accounting Policies (Continued) G. 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 and is recorded at the lower of cost or net realizable value and is evaluated for impairment on an annual basis.. 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.
H. Leases
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses the average of the LAIF rate and the incremental borrowing rate (IBR) provided by the City’s financial institution for existing leases or the current rate at the time a new lease is executed. The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
55 Note 1 – Summary of Significant Accounting Policies (Continued) I. Capital Assets (Continued)
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. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a subscription liability and a right‐to‐use subscription asset (subscription asset) in the financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.
Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.
Preliminary Project Stage: Outlays are expensed as incurred. Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.
Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.
Subscription assets are reported within capital assets and subscription liabilities are reported with long-term debt on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.
11.6 p. 310 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
56 Note 1 – Summary of Significant Accounting Policies (Continued) J. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.
The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
K. 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 assets) that applies to future periods and that, therefore, will not be recognized as an expense until that time. The City reports pension contributions after the measurement date and deferred losses related to pensions and OPEB in this category.
Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that applies to future periods and that, therefore, are not recognized as revenue until that time. The City reports lease related inflows, unavailable revenues and deferred gains related to pensions and OPEB in this category.
L. 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.
M. 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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
57 Note 1 – Summary of Significant Accounting Policies (Continued) N. 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.
O. 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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
58 Note 1 – Summary of Significant Accounting Policies (Continued) P. Other Postemployment Benefits Liability (OPEB)
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, 2022
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
Q. 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.
R. 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 amortization 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.
S. 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.
11.6 p. 313 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
59 Note 1 – Summary of Significant Accounting Policies (Continued) S. 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.
T. 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
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
60 Note 1 – Summary of Significant Accounting Policies (Continued) U. 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.
V. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP, 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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
61 Note 1 – Summary of Significant Accounting Policies (Continued) W. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2023, the City implemented the following new GASB Pronouncement:
GASB Statement No. 91 In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.
GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs).
Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.
GASB Statement No. 96 In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2023.
GASB Statement No. 99 - In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.
X. New GASB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
62 Note 1 – Summary of Significant Accounting Policies (Continued) X. New GASB Pronouncements (Continued)
In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025. In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. That objective is achieved by requiring governments to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. The statement also requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City’s fiscal year ending June 30, 2025. Earlier application is encouraged.
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 inprocess at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities. The significant amounts of encumbrances outstanding as of June 30, 2023 was $13,481,631.
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.
C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balance/net position as of June 30, 2023:
Funds Amount
Major Governmental Fund:
Public Facilities Impact Capital Project Fund $ 1,050,416 Internal Service Fund:
Workers’ Compensation Fund 1,767,704
Nonmajor Funds:
Downtown Beautification 155,324
11.6 p. 317 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
63 Note 2 – Stewardship, Compliance and Accountability (Continued) C. Deficit Fund Balances/Net Position (Continued)
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2023 for its governmental activities of $(27,040,644) of which, $(91,683,383) and $(12,119,260) were attributed to aggregate net pension liabilities and net other postemployment benefits liabilities, respectively.
D. Excess of Expenditure Over Appropriations
The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2023:
Final
Funds Appropriations Expenditures Excess
Nonmajor Funds:
Special Revenue Fund:
Los Arroyos Fund 101,000 $ 128,866 $ (27,866) $
Capital Project Fund:
Traffic Impact Capital Projects Fund 3,955,605 4,040,372 (84,767) Debt Service Funds:
2013 Refunding Bond Debt Service Fund 1,848,756 1,866,894 (18,138) Gilroy Community Library Fund 1,836,111 1,841,001 (4,890) Note 3 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. The City had the following cash and investments at June 30, 2023:
Statement of
Governmental Business-type Component Fiduciary
Activities Activities Unit Net Position Total
Cash and investments 134,234,370 $ 54,125,363 $ 11,207,900 $ 840,399 $ 200,408,032 $ Cash and investment with fiscal agent 2,535,176 25,470,094 - 299,364 28,304,634 Total cash and investments 136,769,546 $ 79,595,457 $ 11,207,900 $ 1,139,763 $ 228,712,666 $ Government-Wide Statement of Net Position
The City’s cash and investments at June 30, 2023 in more detail:
Cash and cash equivalents:
Demand deposits 5,334,399 $
Petty cash 4,955
Total cash and cash equivalents 5,339,354
Investments:
Local Agency Investment Fund 133,966,263
U.S. Treasury Notes 61,102,415
Investments with Fiscal Agent:
Local Agency Investment Fund 25,468,374
Money Market Mutual Fund 2,836,260
Total investments 223,373,312
Total cash and investments $ 228,712,666
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
64 Note 3 – Cash and Investments (Continued)
A. Demand Deposits
The carrying amount of the City’s demand deposits were $5,334,399 at June 30, 2023. Bank balances before reconciling items were $5,424,034 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.
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, 2023, 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, 2023:
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
65 Note 3 – Cash and Investments (Continued)
C. Fair Value Measurements (Continued)
Primary Government Total Level 1
U.S. Treasury Notes 61,102,415 $ 61,102,415 $
Total Investments $ 61,102,415 61,102,415 $
Primary Government
Investments measured at the net asset value (NAV)
Local Agency Investment Fund 148,265,183 $
Money Market Mutual Funds 2,836,260
Total investments measured at the net asset value (NAV) 151,101,443 $ Component Unit
Investments measured at the net asset value (NAV)
Local Agency Investment Fund 11,169,454 $
Total investments measured at the net asset value (NAV) 11,169,454 $ 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 More than
Investment Type Total or less 12 Months
Local Agency Investment Fund 159,434,637 $ 159,434,637 $ - $ U.S. Treasury Notes 61,102,415 38,674,950 22,427,465
Money Market Mutual Funds 2,836,260 2,836,260 -
Total $ 200,945,847 223,373,312 $ 22,427,465 $
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 159,434,637 $ N/A
U.S. Treasury Notes 61,102,415 Aaa
Money Market Mutual Funds 2,836,260 N/A
Total $ 223,373,312
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 Note 3 – Cash and Investments (Continued)
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 California Government 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. 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, 2023 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, 2023, the City and DCU had $148,265,183 and $11,169,454 invested in LAIF, respectively, which had invested 2.78% of the pool investment funds in Structured Notes and Asset-Backed Securities.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 4 – Loans Receivable
At June 30, 2023, loans receivable consisted of the following:
Governmental
Activities
Down payment assistance 1,465,977 $
Housing improvement to non-profits 450,000
Involuntary liens 131,345
Affordable housing development loans 790,000
Housing rehabilitation 206,316
Total loans receivable 3,043,638 $
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. Due to/from Other Funds
The following is a summary of amount due to and from other funds as of June 30, 2023:
Due From
Other Funds
Due To Other Funds General Fund Total
Nonmajor Governmental Funds 456,085 $ 456,085 $
Total $ 456,085 456,085 $
B. Advances to/from Other Funds
The following is a summary of advances to and from other funds as of June 30, 2023:
Advances to Other Funds
Nonmajor
Governmental
Funds
Internal Service
Fund Total
Public Facilities Impact Capital Projects Fund 1,523,222 $ 2,496,513 $ 4,019,735 $ Total $ 2,496,513 1,523,222 $ 4,019,735 $
Advances from Other Funds
11.6 p. 322 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 5 – Interfund Transactions (Continued)
B. Advances to/from Other Funds (Continued)
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 Impact Fund borrowed from certain funds which is accounted for as a long-term advance for a period of 20 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 Drain 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). The outstanding balance of the interfund loan was $4,019,735 as of June 30,2023.
C. Transfers
During the year ended June 30, 2023, the City had the following transfers:
Public Facilities Nonmajor Sewer Water
Impact Capital Governmental Enterprise Enterprise
Transfers In General Fund1 Projects Fund2 Funds3 Fund4 Fund4 Total General Fund 1,750,900 $ - $ 163,053 $ 311,862 $ 353,693 $ 2,579,508 $ Public Facilities Impact Capital Projects Fund 40,763 - - - - 40,763 Nonmajor Governmental Funds 397,908 3,188,031 119,087 - - 3,705,026 Sewer Enterprise Fund - - 1,543,668 - - 1,543,668
Total 2,189,571 $ 3,188,031 $ 1,825,808 $ 311,862 $ 353,693 $ 7,868,965 $ Transfers Out
1 General Fund support of certain capital projects, safety related grants, and IT services. 2 Public Facilities Impact Capital Projects Fund supports various debt instruments. 3 Other Governmental Funds support of grant personnel costs, debt retirements and sewer development project costs. 4 Enterprise Fund transfers to the General Fund to support impact to local streets and roads costs and subsidize environmental costs.
D. Due to/from Component Unit
The following is a summary of due to and from the Authority as of June 30, 2023:
Due to component unit South Regional
Wastewater
Authority
Sewer Enterprise Fund 3,889,410 $
$ 3,889,410
The amounts owed by the City to the Authority are primarily for outstanding operating and capital contributions at year end.
11.6 p. 323 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 6 – Lease Receivables
The City leases various types of property including land and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 2 to 40 years. The interest rates used calculated the net present value of the lease receivable ranged from 1% to 1.5%.
For the fiscal year ended June 30, 2023, the City and DCU recognized $360,226 and $78,428 in lease revenue, respectively, and the outstanding net present value of the lease receivable amount is $6,442,757 for the City.
Governmental Activities
A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2023 is as follows:
Amounts Amounts
Balance Balance due within due in more
July 1, 2022 Additions Reductions June 30, 2023 one year than one year $ 86,394 6,649,983 $ (293,620) $ 6,442,757 $ 256,201 $ 6,186,556 $ At June 30, 2023, the required payments for these leases, including interest, and deferred inflow-lease related future revenue are:
NPV lease Total lease Year Ending Deferred inflows
receivables Interest payments June 30, of resources
2024 256,201 $ 103,079 $ 359,280 $ 2024 320,035 $
2025 233,978 100,236 334,214 2025 279,845
2026 247,535 97,254 344,789 2026 279,845
2027 198,678 94,245 292,923 2027 220,565
2028 200,388 91,335 291,723 2028 220,565
2029 - 2033 880,084 413,187 1,293,271 2029 - 2033 1,102,825 2034 - 2038 616,955 356,625 973,580 2034 - 2038 701,200 2039 - 2043 671,375 302,205 973,580 2039 - 2043 701,200 2044 - 2048 730,595 242,985 973,580 2044 - 2048 701,200 2049 - 2053 795,038 178,542 973,580 2049 - 2053 701,200 2054 - 2058 865,166 108,414 973,580 2054 - 2058 701,200 2059 - 2062 746,764 32,100 778,864 2059 - 2062 388,975
Total 6,442,757 $ 2,120,207 $ 8,562,964 $ Total 6,318,655 $ Discretely Presented Component Unit
A summary of changes in lease receivable for the discretely presented component unit for the year ended June 30, 2023 is as follows:
Amounts Amounts
Balance Balance due within due in more
July 1, 2022 Additions Reductions June 30, 2023 one year than one year $ - 89,597 $ (89,597) $ - $ - $ - $
11.6 p. 324 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 7 – Capital Assets
Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2023:
Balance
July 1, 2022 Balance
as restated Additions Deletions Transferes June 30, 2023 Capital assets not being depreciated:
Land 21,334,900 $ - $ - $ - $ 21,334,900 $
Construction in progress 5,733,926 8,111,015 (461,507) (175,822) 13,207,612 Total capital assets not being depreciated 27,068,826 8,111,015 (461,507) (175,822) 34,542,512 Capital assets being depreciated:
Building and improvements 125,118,480 64,324 - - 125,182,804 Equipment and furniture 11,291,870 - - - 11,291,870
IT equipment and software 2,821,187 605,613 - 175,822 3,602,622 Vehicle 13,660,148 986,502 (482,671) - 14,163,979
Infrastructure 289,765,532 883,289 (146,084) - 290,502,737 Total capital assets being depreciated 442,657,217 2,539,728 (628,755) 175,822 444,744,012 Less accumulated depreciation for:
Building and improvements (49,529,384) (3,056,340) - - (52,585,724) Equipment and furniture (9,278,960) (485,910) - - (9,764,870) IT equipment and software (2,299,591) (167,709) - - (2,467,300) Vehicle (9,945,280) (551,698) 482,625 - (10,014,353)
Infrastructure (195,857,669) (7,342,678) 142,468 - (203,057,879) Total accumulated depreciation (266, (11,604,335) 910,884) 625,093 - (277,890,126) Total capital assets being depreciated, net 175,746,333 (9,064,607) (3,662) 175,822 166,853,886 Subscription assets 1,268,134 165,909 - - 1,434,043
Less accumulated amortization - (404,708) - - (404,708) Total subscription assets, net 1,268,134 (238,799) - - 1,029,335 Total governmental activities $ (1,192,391) 204,083,293 $ (465,169) $ - $ 202,425,733 $ Depreciation and amortization expense was charged to functions/programs of governmental activities for the year ended June 30, 2023 as follows:
General government 898,176 $
Public safety 1,079,301
Public works 7,573,170
Community development 1,258,691
Internal service fund 1,199,705
Total $ 12,009,043
11.6 p. 325 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 7 – 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, 2023:
Balance
July 1, 2022 Balance
as restated Additions Deletions Transfers June 30, 2023 Capital assets not being depreciated:
Construction in progress 108,139 $ - $ - $ - $ 108,139 $ Total capital assets not being depreciated 108,139 - - - 108,139 Capital assets being depreciated:
Land improvements 427,852 - - - 427,852
Equipment and furniture 212,630 - - - 212,630
IT Equipment/software 15,000 - - - 15,000
Vehicles 213,353 - - - 213,353
Infrastructure 156,700,282 2,064,928 - - 158,765,210
Total capital assets being depreciated 157,569,117 2,064,928 - - 159,634,045 Less accumulated depreciation for:
Land improvements (427,853) - - - (427,853)
Equipment and furniture (199,632) (2,737) - - (202,369) IT Equipment/software (1,250) (5,000) - - (6,250)
Vehicles (33,189) (14,223) - - (47,412)
Infrastructure (73,044,616) (2,899,577) - - (75,944,193) Total accumulated depreciation (73,706,540) (2,921,537) - - (76,628,077) Total capital assets being depreciated, net 83,862,577 (856,609) - - 83,005,968 Subscription assets 22,500 - - - 22,500
Less accumulated amortization - (10,000) - - (10,000)
Total subscription assets, net 22,500 (10,000) - - 12,500 Total business-type activities $ (866,609) 83,993,216 $ - $ - $ 83,126,607 $ Depreciation and amortization expense was charged to the business-type activities as follows:
Sewer 1,511,887 $
Water 1,419,650
Total $ 2,931,537
11.6 p. 326 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 Note 7 – 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, 2023:
Balance Balance
June 30, 2022 Additions Deletions Transfers June 30, 2023 Capital assets not being depreciated:
Land 13,396,202 $ - $ - $ - $ 13,396,202 $
Construction in progress 35,257,312 28,922,911 - - 64,180,223 Total capital assets not being depreciated 48,653,514 28,922,911 - - 77,576,425 Capital assets being depreciated:
Building and improvements 72,257,749 - - 72,257,749
Land improvements 10,681,371 - - - 10,681,371
Equipment and furnitures 20,081,738 16,112 - - 20,097,850 Vehicles 1,505,201 83,144 - - 1,588,345
Infrastructure 35,874,536 - - - 35,874,536
Total capital assets being depreciated 140,400,595 99,256 - - 140,499,851 Less accumulated depreciation for:
Building and improvements (42,873,925) (1,663,219) - - (44,537,144) Land improvements (6,098,263) (190,342) - - (6,288,605) Equipment and furniture (16,274,554) (666,258) - - (16,940,812) Vehicles (1,173,839) (37,155) - - (1,210,994)
Infrastructure (11,072,338) (1,645,755) - - (12,718,093) Total accumulated depreciation (77, (4,202,729) 492,919) - - (81,695,648) Total capital assets being depreciated, net 62,907,676 (4,103,473) - - 58,804,203 Total discretly component unit $ 24,819,438 111,561,190 $ - $ - $ 136,380,628 $ Note 8 – Equity Investment in DPCU
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 $90,606,337 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.
11.6 p. 327 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 Note 9 – 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.
Note 10 – 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, 2023:
Balance
June 30, 2022 Balance Due within Due in more
as restated Additions Deletions June 30, 2023 One Year than One Year Governmental Activities:
Refunding Lease Revenue Bonds:
2013 Series 16,220,000 $ - $ (16,220,000) $ - $ - $ - $ 2020A Series 12,235,000 - (755,000) 11,480,000 795,000 10,685,000 2022 Series - 14,587,831 - 14,587,831 1,063,146 13,524,685 Unamortized premium 2,911,561 - (801,953) 2,109,608 209,217 1,900,391 Loan payable 673,484 - (93,359) 580,125 94,281 485,844
Subscription payable 890,209 165,909 (431,024) 625,094 311,213 313,881 Direct borrowings and placement
General Obligation Bonds:
Library 2019A Series 7,678,649 - (347,829) 7,330,820 358,853 6,971,967 Library 2019B Series 16,938,301 - (707,776) 16,230,525 730,720 15,499,805 Total long-term debt 57,547,204 14,753,740 (19,356,941) 52,944,003 3,562,430 49,381,573 Other long-term liabilities
Claims payable 8,691,284 865,516 (909,880) 8,646,920 1,682,152 6,964,768 Compensated absences 1,847,014 1,937,234 (1,847,015) 1,937,233 193,723 1,743,510 Total long-term liabilities $ 17,556,490 68,085,502 $ (22,113,836) $ 63,528,156 $ 5,438,305 $ 58,089,851 $ Classification
Lease Revenue Refunding Bonds (LRBs) 2022 Series
On December 12, 2022, the City refinanced its Lease Revenue Bonds 2013 Series by issuing Lease Revenue Refunding Bonds, 2022 Series in the amount of $14,587,831. The proceeds from the issue were used to redeem the 2013 Series. The refunding resulted in $2,567,275 saving in future debt service payment and an economic gain of $2,096,091.
Interest on the bonds is payable semiannually at rates ranging from 3.66% to 4.66% on May 1 and November 1 of each year commencing on May 1, 2023, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at June 30, 2023 was $14,587,831.
11.6 p. 328 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
The annual debt service requirements to maturity for the Refunding LRBs 2022 Series are as follows:
Year ending
June 30, Principal Interest Total
2024 1,063,146 $ 587,398 $ 1,650,544 $
2025 1,140,757 474,128 1,614,885
2026 1,183,287 431,598 1,614,885
2027 1,227,403 387,482 1,614,885
2028 1,273,163 341,722 1,614,885
2029-2034 8,700,075 989,236 9,689,311
Total 14,587,831 $ 3,211,564 $ 17,799,395 $
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, 2023 was $11,480,000.
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
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 925,000 425,125 1,350,125
2028 1,000,000 377,000 1,377,000
2029-2033 5,715,000 1,074,375 6,789,375
2034 1,325,000 33,125 1,358,125
Total 11,480,000 $ 3,447,250 $ 14,927,250 $
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 final payment will be on June 22, 2029. The principal balance of outstanding at June 30, 2023 was $580,125.
11.6 p. 329 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Loan Payable (Continued)
The annual debt service requirements to maturity for the loan is as follows:
Year ending
June 30, Principal Interest Total
2024 94,281 $ 5,581 $ 99,862 $
2025 95,240 4,622 99,862
2026 96,195 3,667 99,862
2027 97,159 2,702 99,861
2028 98,129 1,732 99,861
2029 99,121 745 99,866
Total 580,125 $ 19,049 $ 599,174 $
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.
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, 2023 was $7,330,820.
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
2024 358,853 $ 228,722 $ 587,575 $
2025 370,226 217,525 587,751
2026 381,960 205,974 587,934
2027 394,066 194,057 588,123
2028 406,556 181,762 588,318
2029-2033 2,234,430 710,309 2,944,739
2034-2038 2,611,692 338,931 2,950,623
2039 573,037 17,879 590,916
Total 7,330,820 $ 2,095,159 $ 9,425,979 $
11.6 p. 330 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 Note 10 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
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.
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, 2023 was $16,230,525.
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
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 804,112 445,532 1,249,644
2028 830,179 419,881 1,250,060
2029-2033 4,572,452 1,684,573 6,257,025
2034-2038 5,363,214 906,425 6,269,639
2039-2040 2,396,576 115,286 2,511,862
Total 16,230,525 $ 5,054,273 $ 21,284,798 $
Subscription payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 16 months to 56 months. The calculated interest rates range from 0.00% to 3.2067%. As of June 30, 2023, the capitalized right-to-use assets related to SBITAs were $1,434,043 and the total subscription liability was $625,094, of which $311,213 is reported as a current liability representing the amount due within the next fiscal year.
The future subscription payments are as follows:
Year ending
June 30, Principal Interest Total
2024 311,213 $ 12,970 $ 324,183 $
2025 169,229 6,765 175,994
2026 144,652 3,422 148,074
Total 625,094 $ 23,157 $ 648,251 $
11.6 p. 331 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 Note 10 – Long-Term Liabilities (Continued)
B. Business-Type Activities
Balance
June 30, 2022 Balance Due within Due in more
as restated Additions Deletions June 30, 2023 One Year than One Year Business-type Activities:
2010 Wastewater Revenue Bonds 2,440,000 $ - $ (2,440,000) $ - $ - $ - $ 2021 Wastewater Revenue Bonds 47,080,000 - - 47,080,000 725,000 46,355,000 Unamortized premium 5,573,508 - (159,243) 5,414,265 - 5,414,265 Subscription payable 22,500 - (22,500) - - -
- 55,116,008 (2,621,743) 52,494,265 725,000 51,769,265
Other long-term liabilities
Compensated absences 232,818 218,330 - 280,351 28,035 252,316 $ 218,330 55,348,826 $ (2,621,743) $ 52,774,616 $ 753,035 $ 52,021,581 $ Classification
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 2023 and maturing in 2057. The principal balance of outstanding bonds at June 30, 2023 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
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 815,000 1,426,600 2,241,600
2028 850,000 1,393,300 2,243,300
2029-2033 4,805,000 6,416,600 11,221,600
2034-2038 5,840,000 5,378,175 11,218,175
2039-2043 6,855,000 4,373,925 11,228,925
2044-2048 7,955,000 3,265,575 11,220,575
2049-2053 9,240,000 1,977,900 11,217,900
2054-2057 8,455,000 516,825 8,971,825
Total 47,080,000 $ 29,215,900 $ 76,295,900 $
11.6 p. 332 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 Note 10 – 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, 2023 was $5,181,734.
11.6 p. 333 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 Note 11 – Defined Benefit Pension Plans (CalPERS)
A. Summary
The following is the summary of net pension liabilities and the related deferred outflows of resources and deferred inflows of resources at June 30, 2023 and pension expenses for the year then ended:
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Pension contributions after measurement date:
Miscellaneous 3,127,883 $ 1,325,888 $ 4,453,771 $
Safety 7,730,256 - 7,730,256
Total contributions after measurement date 10,858,139 1,325,888 12,184,027 Changes in assumptions:
Miscellaneous 1,498,120 635,042 2,133,162
Safety 5,072,647 - 5,072,647
Total changes in assumptions 6,570,767 635,042 7,205,809 Difference between expected and actual experience:
Safety 1,056,818 - 1,056,818
Total difference between expected and actual experience 1,056,818 - 1,056,818 Difference between projected and actual earnings on plan investments:
Miscellaneous 3,164,088 1,341,234 4,505,322
Safety 7,005,150 - 7,005,150
Total difference between projected and actual earnings on plan investments 1,341,234 10,169,238 11,510,472
Total deferred outflows of resources $ 3,302,164 28,654,962 $ 31,957,126 $ Aggregate net pension liabilities:
Miscellaneous 28,428,847 $ 12,050,787 $ 40,479,634 $
Safety 63,254,536 - 63,254,536
Total aggregate net pension liabilities $ 12,050,787 91,683,383 $ 103,734,170 $ Deferred inflows of resources:
Difference between expected and actual experience:
Miscellaneous 498,510 211,315 709,825
Safety 622,010 - 622,010
Total difference between expected and actual experience 1,120,520 211,315 1,331,835 Total deferred inflows of resources $ 211,315 1,120,520 $ 1,331,835 $ Pension expense:
Miscellaneous 3,455,084 $ 1,464,586 $ 4,919,670 $
Safety 8,517,961 - 8,517,961
Total net pension expense $ 1,464,586 11,973,045 $ 13,437,631 $
11.6 p. 334 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued) B. General Information about the Pension Plans
Plan Descriptions
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.
11.6 p. 335 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 Note 11 – 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, 2022 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 10.700% 10.700% 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 25.870% 25.870% 25.870% 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 21.077% 21.077% 21.077% Miscellaneous
Safety - Police
Safety - Fire
11.6 p. 336 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued) B. General Information about the Pension Plans (Continued) Employees Covered
At the measurement date of June 30, 2022, the following employees were covered by the benefit terms for all Plans:
Miscellaneous Safety
Active employees 122 100
Transferred and terminated employees 198 45
Retired Employees and Beneficiaries 248 149
Total 568 294
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, 2021 valuation was rolled forward to determine the June 30, 2022 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 Actuarial Cost Method
6.90%
2.30%
Varies by Entry Age and Service
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 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 November 2021 that can be found on the CalPERS website.
Derived using CalPERS’ membership data for all funds.
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
11.6 p. 337 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 11 – 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
The expected real rates of return by asset class are as follows:
Current Target
Asset Class1 Allocation Real Return1 2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. 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.
Return on Investments
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21.
Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
11.6 p. 338 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued) C. Net Pension Liability (Continued)
Strategic Asset Allocation
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
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, 2021 (Valuation Date) 125,181,567 $ 100,869,134 $ 24,312,433 $ Changes Recognized for the Measurement Period:
Service cost 2,240,104 - 2,240,104
Interest on the total pension liability 8,651,774 - 8,651,774 Changes of assumptions 3,774,056 - 3,774,056
Difference between expected and actual experience (1,151,738) - (1,151,738) Contributions from the employer - 4,103,355 (4,103,355) Contributions from employees - 923,404 (923,404)
Net investment income - (7,616,929) 7,616,929
Benefit payments, including refunds of employee
contributions (7,071,816) (7,071,816) -
Administrative expenses - (62,835) 62,835
Net changes during July 1, 2021to June 30, 2022 6,442,380 (9,724,821) 16,167,201 Balance at June 30, 2022(Measurement Date) 131,623,947 $ 91,144,313 $ 40,479,634 $ Increase (Decrease)
Miscellaneous Plan
11.6 p. 339 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued) D. Changes in the Net Pension Liability (Continued)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) 190,123,734 $ 153,732,839 $ 36,390,895 $ Changes Recognized for the Measurement Period:
Service cost 4,253,470 - 4,253,470
Interest on the total pension liability 13,345,415 - 13,345,415 Changes of assumptions 6,821,836 - 6,821,836
Difference between expected and actual experience (810,081) - (810,081) Contributions from the employer - 7,117,603 (7,117,603) Contributions from employees - 1,371,949 (1,371,949)
Net investment income - (11,646,787) 11,646,787
Benefit payments, including refunds of employee
contributions (9,700,828) (9,700,828) -
Administrative expenses - (95,766) 95,766
Net changes during July 1, 2021 to June 30, 2022 13,909,812 (12,953,829) 26,863,641 Balance at June 30, 2022 (Measurement Date) 204,033,546 $ 140,779,010 $ 63,254,536 $ Safety
Increase (Decrease)
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% (5.90%) Rate (6.90%) + 1% (7.90%)
Miscellaneous Plan $ 40,479,634 56,849,099 $ 26,894,431 $ Safety Plan $ 63,254,536 90,776,961 $ 40,606,496 $
Plan's Net Pension Liability/(Asset)
E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense in the amounts of $4,919,670 and $8,517,961 for the miscellaneous plan and safety plan, respectively.
11.6 p. 340 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 Note 11 – Defined Benefit Pension Plans (CalPERS) (Continued) E. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) As of measurement date of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 4,453,771 $ - $ Changes of assumptions 2,133,162 -
Difference between expected and actual experience - (709,825) Net difference between projected and actual earning on
pension plan investments 4,505,322 -
Total 11,092,255 $ (709,825) $
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 7,730,256 $ - $ Difference between expected and actual experience 1,056,818 (622,010) Net difference between projected and actual earnings
on pension plan investments - 7,005,150
Total 20,864,871 $ (622,010) $
Safety Plan
The $4,453,711 reported in the Miscellaneous Plans and $$7,730,256 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 measurement period ending June 30, 2023. 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
2023 1,768,113 $ 3,178,485 $
2024 969,137 3,019,899
2025 292,653 1,872,614
2026 2,898,756 4,441,607
$ 12,512,605 5,928,659 $
Deferred Outflows/(Inflows)
of Resources
11.6 p. 341 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 Note 12 – Other Postemployment Benefits (OPEB)
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:
Employer contributions made
subsequent to the measurement date 463,523 $ 90,930 $ 554,453 $ Changes in assumption 1,746,016 342,520 2,088,536
Total deferred outflows of resources $ 433,450 2,209,539 $ 2,642,989 $ Total OPEB liability 12,119,260 $ 2,377,462 $ 14,496,722 $ Total OPEB liability $ 2,377,462 12,119,260 $ 14,496,722 $ Deferred inflows of Resources:
Change in assumption 3,663,534 $ 718,684 $ 4,382,218 $
Difference between expected and actual experience 1,362,867 267,356 1,630,223 Total deferred inflows of resources $ 986,040 5,026,401 $ 6,012,441 $ OPEB Expense $ 36,588 186,508 $ 223,096 $
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.
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 $149 in 2022 and $151 in 2023. 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.
11.6 p. 342 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 12 – Other Postemployment Benefits (Continued)
Employees Covered
At the measurement date of June 30, 2022, the following current and former employees were covered by the benefit terms under the plan:
Active plan members 220
Retirees 235
Total 455
Total OPEB Liability
The City’s OPEB liability of $14,496,722 was measured as of June 30, 2022 and was determined by an actuarial valuation as of June 30, 2021 rolled forward to 2022 using standard update procedures. The OPEB liability from the governmental activities is primarily liquidated from the general fund.
Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2021 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, 2021
Discount Rate 4.09%
Inflation 2.30%
Salary Increase 2.80% wage inflation plus seniority, merit, & promotion increases based on November 2021 CalPERS Experience Study & Review of Actuarial Assumptions
Healthcare Trend Rate Based on 2021 Getzen model that reflects actual premium increases through 2023, followed by 5.50% in 2023, decreasing gradually to an ultimate rate of 4.04% in 2075
Changes in total OPEB Liability
The change in total OPEB liability are as follows:
Total OPEB
Liability
Balance at June 30, 2021 (Valuation Date) 18,024,828 $
Changes Recognized for the Measurement Period:
Service Cost 973,126
Interest on the total OPEB liability 410,441
Difference between expected
and actual experience (150,527)
Changes of assumptions (4,245,661)
Benefit payments (515,485)
Net Changes during July 1, 2021 to June 30, 2022 (3,528,106) Balance at June 30, 2022 (Measurement Date) 14,496,722 $
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 Note 12 – Other Postemployment Benefits (Continued)
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 (3.09%) Rate (4.09%) Rate (5.09%)
$ 14,496,722 16,521,983 $ 12,832,707 $
Plan's Total OPEB Liability
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:
-1%
Healthcare Cost
Trend Rates 1%
$ 14,496,722 12,587,299 $ 16,897,843 $
Plan's Total OPEB Liability
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $236,096. At June 30, 2023, 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 - $ (1,630,223) $ Changes in assumptions 2,088,536 (4,382,218)
Employer contributions made
subsequent to the measurement date 554,453 # -
Total 2,642,989 $ (6,012,441) $
The $554,453 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, 2024. The change in assumptions was due to the change in discount rate to 4.09% from 2.19% for the June 30, 2022 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:
Year end Deferred Outflows/
Ended June 30 (Inflows) of Resources
2024 (965,210) $
2025 (772,210)
2026 (689,162)
2027 (544,703)
2028 (952,620)
$ (3,923,905)
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 Note 13 – 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, 2023 in the following amounts which are recorded in separate internal service funds:
Worker' compensation claims 6,363,000 $
General liability claims 2,283,920
Total claims payable 8,646,920 $
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 2020-2021 2,932,396 $ 2,058,195 (1,397,737) 3,592,854 $ 970,000 $ 2,622,854 $ 2021-2022 3,592,854 3,863,535 (787,389) 6,669,000 1,062,000 5,607,000 2022-2023 6,669,000 481,389 (787,389) 6,363,000 965,000 5,398,000 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 2020-2021 690,049 $ 4,456,029 $ (2,380,120) $ 2,765,958 $ 470,000 $ 2,295,958 $ 2021-2022 2,765,958 (322,612) (421,062) 2,022,284 734,997 2,022,284 2022-2023 2,022,284 384,127 (122,491) 2,283,920 717,152 1,566,768 Note 14 – 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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 Note 14 – 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 15 – Commitments and Contingencies
The City had the following commitments outstanding as of June 30, 2023:
Name of Project
Outstanding
Amount
2023 Citywide Pavement Rehabilitation $ 6,574,047
Fleet Replacement 741,087
10th Street and Uvas Creek Bridge Design Services 667,235 Community Development Contractual Services 545,425
Public Works Contractual Services 470,852
Downtown Gourmet Parking Lot Project 422,686
Type III Fire Engine 415,673
Traffic Circulation Master Plan and Impact Fees 396,649 McCarthy Well Project Design and Engineering 396,404
Public Safety Rescue Vehicle 360,497
Enterprise Resource Planning (ERP) and Permitting Software Systems
350,703
Repairs and Renovation at Cherry Blossom Apartments 312,957 Miscellaneous capital projects and services 1,827,417
$ 13,481,631
Grant Program
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 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 of Gilroy was recently granted a Motion for Summary Judgment in the Towner et al v. Gilroy Garlic Festival Association, et al. case. However, we expect the Towner plaintiffs to file an appeal. Motions for Summary Judgment were recently filed in the Salazar and Henderson cases and those are scheduled to be heard in April 2024. Until these matters are fully resolved, the City may incur additional financial impacts because of this event. Currently, the extent of those impact is unknown.
11.6 p. 346 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 Note 15 – Commitments and Contingencies (Continued)
October 2021 Halloween Incident.
The City has received several government claims which arise out of a shooting that occurred in the early morning of October 30, 2021 during a Halloween party at Gilroy City Councilmember Rebecca Armendariz’s residence. The City of Gilroy had no involvement in the private Halloween party. The claims have been submitted by the family members of two individuals who died as a result of the shooting. Two lawsuits have been filed naming the City as a defendant. Only one lawsuit has been served on the City. Both lawsuit’s theory of liability against the City appears to be primarily that the City is vicariously liable for Councilmember Armendariz’s involvement in hosting the Halloween party.
Note 16 – Net Investment in Capital Assets
The following is the calculation of net investment in capital assets at June 30, 2023:
Governmental Business-Type
Activities Activities DCU
Capital assets, net of accumulated depreciation and amortization 202,425,733 $ 83,126,607 $ 136,380,628 $ Unspent bond proceeds 3,139 25,470,094 -
Less: oustanding principal on capital related debts (50,209,301) (47,080,000) - Less: subscription liabilities (625,094)
Less: bond premium (2,109,608) (5,414,265) -
Net investment in capital assets 149,484,869 $ 56,102,436 $ 136,380,628
11.6 p. 347 of 478
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 Note 17 – Classification of Fund Balances
Public Facilities Nonmajor
General Impact Capital Governmental
Fund Projects Fund Funds Total
Nonspendable:
Prepaid items 23,750 $ - $ - $ 23,750 $
Subtotal 23,750 - - 23,750
Restricted:
General capital projects - - 5,330,906 5,330,906
PARS 2,506,565 - - 2,506,565
Debt service 25,471 - - 25,471
Public safety - - 930,460 930,460
Street maintenance - - 6,598,283 6,598,283
Grant programs - - 2,075,003 2,075,003
Housing - - 3,338,781 3,338,781
Traffic impact - - 17,264,934 17,264,934
Sewer development - - 15,895,458 15,895,458
Water development - - 6,168,778 6,168,778
Storm drains - - 2,156,826 2,156,826
Stormwater Management 794,089 794,089
Community development - - 7,515,489 7,515,489
Debt service - - 2,340,479 2,340,479
Museum - - 8,914 8,914
City poor assistance - - 15,399 15,399
Land held for resale - - 706,754 706,754
Subtotal - 2,532,036 71,140,553 73,672,589
Committed:
Economic stability reserve 6,205,317 - - 6,205,317
Subtotal 6,205,317 - - 6,205,317
Assigned:
Opioid Settlement - - 46,551 46,551
Capital projects - - 3,557,391 3,557,391
Subtotal - - 3,603,942 3,603,942
Unassigned (deficit) 33,190,870 (1,050,416) (155,324) 31,985,130 Total 41,951,973 $ (1,050,416) $ 74,589,171 $ 115,490,728 $ 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.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 Note 18 – Tax Abatement
GASB Statement No. 77 defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to the GASB 77, the substance of these agreements meets the definition of “tax abatements” as the revenues received were not available for general municipal services purposes, but rather used to effectively reduce the net tax liability of certain taxpayers per the conditions of an agreement.
The County of Santa Clara has identified two programs, the Williamson Act and the Mills Act, that would affect taxing entity’s share of the 1% ad valorem tax (property tax), including the City of Gilroy. The Williamson Act enables the County to enter into contracts with private landowners for restricting specific parcels of land to agricultural or related open space use. In return, landowners receive property tax assessments which are much lower than normal because they are based upon farming and open space uses as opposed to full market value. The Mills Act, enables the County to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their history properties in exchange for receiving property tax relief. For the fiscal year ended June 30, 2023, Gilroy’s share of the abated 1% Ad Valorum Tax is $13,500.
Note 19 – Prior Period Adjustments
Net position for governmental and business-type activities were restated as of July 1, 2022 as follows:
Governmental Business-type
Activities Activities Total
Net position, as previously reported, at July 1, 2022 190,683,313 $ 182,640,016 $ 373,323,329 $ Adjust GASB 96 beginning balance 377,925 - 377,925
Net position at July 1, 2022, as restated $ 182,640,016 191,061,238 $ 373,701,254 $ The beginning net position at July 1, 2022 of the Information Technology Internal Service Fund financial statement was restated as follows:
Net position, as previously reported, at July 1, 2022 5,571,755 $ Adjust GASB 96 beginning balance 377,925
Net position at July 1, 2022, as restated $ 5,949,680
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
95 11.6
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Measurement period 2021-22 2020-21 2019-20 2018-19 2017-18 Total pension liability
Service cost 2,240,104 $ 2,545,114 $ 2,360,748 $ 2,218,281 $ 2,107,888 $ Interest 8,651,774 8,496,663 8,220,201 7,888,537 7,397,421 Changes of benefit terms - - - - -
Changes of assumptions 3,774,056 - - - (870,201)
Differences between expected and actual experience (176,531) (1,151,738) 670,381 3,067,906 1,618,519 Benefit payments, including refunds of employee
contributions (6,844,176) (7,071,816) (6,415,856) (6,003,668) (5,515,662) Net change in total pension liability 4,021,070 6,442,380 4,835,474 7,171,056 4,737,965 Total pension liability - beginning 121,160,497 125,181,567 116,325,023 109,153,967 104,416,002 Total pension liability - ending (a) $ 125,181,567 131,623,947 $ 121,160,497 $ 116,325,023 $ 109,153,967 $ Pension fiduciary net position
Contributions - employer 4,103,355 $ 3,772,061 $ 3,645,000 $ 3,254,181 $ 2,796,490 $ Contributions - employee 923,404 914,541 1,076,549 992,926 1,003,145 Net investment income (7,616,929) 18,954,052 4,099,977 5,226,520 6,275,073 Benefit payments, including refunds of employee
contributions (6,844,176) (7,071,816) (6,415,856) (6,003,668) (5,515,662) Plan to plan resource movement - - 1,029 - (182)
Administrative expense2 (84,067) (62,835) (115,410) (55,985) (115,667) Other Miscellaneous Income/(Expense)1 - - - 182 (219,654) Net change in plan fiduciary net position 16,712,411 (9,724,821) 2,291,289 3,414,156 4,223,543 Plan fiduciary net position - beginning3 84,156,723 100,869,134 81,865,434 78,451,278 74,227,735 Plan fiduciary net position - ending (b) $ 100,869,134 91,144,313 $ 84,156,723 $ 81,865,434 $ 78,451,278 $ Plan net pension liability - ending (a) - (b) $ 24,312,433 40,479,634 $ 37,003,774 $ 34,459,589 $ 30,702,689 $ Plan fiduciary net position as a percentage 69.25% 80.58% 69.46% 70.38% 71.87% of the total pension liability
Covered payroll3
$ 14,371,056 11,194,925 $ 13,093,445 $ 12,003,033 $ 11,457,160 $ Plan net pension liability as a percentage of
covered payroll 361.59% 169.18% 282.61% 287.09% 267.98% Notes to Schedule:
Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The ac counting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
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 generally include any liability impact that may have resulted from voluntary benefit changes that occurred d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% 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, 2023
Last Ten Fiscal Years1
96 11.6
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Measurement period 2016-17 2015-16 2014-15 2013-141
Total pension liability
Service cost $ 1,974,107 2,119,709 $ 1,914,477 $ 1,886,470 $ Interest 6,992,371 7,057,333 6,720,915 6,378,166
Changes of benefit terms - - - -
Changes of assumptions 5,558,063 - (1,563,145) -
Differences between expected and actual experience (878,722) (2,724,046) 67,994 - Benefit payments, including refunds of employee
contributions (4,335,513) (4,810,256) (4,140,599) (3,800,609) Net change in total pension liability 3,752,243 7,200,803 2,999,642 4,464,027 Total pension liability - beginning 93,462,956 97,215,199 90,463,314 85,999,287 Total pension liability - ending (a) $ 97,215,199 104,416,002 $ 93,462,956 $ 90,463,314 $ Pension fiduciary net position
Contributions - employer 2,535,645 $ 2,448,744 $ 2,236,836 $ 2,105,469 $ Contributions - employee 888,342 895,816 894,531 978,326 Net investment income 7,621,577 355,337 1,523,463 10,200,504 Benefit payments, including refunds of employee
contributions (4,335,513) (4,810,256) (4,140,599) (3,800,609) Plan to plan resource movement - - - -
Administrative expense2 (41,912) (100,535) (77,393) -
Other Miscellaneous Income/(Expense)1 - - - -
Net change in plan fiduciary net position (677,528) 6,134,773 436,838 9,483,690 Plan fiduciary net position - beginning3 68,770,490 68,092,962 68,333,652 58,849,962 Plan fiduciary net position - ending (b) $ 68,092,962 74,227,735 $ 68,770,490 $ 68,333,652 $ Plan net pension liability - ending (a) - (b) $ 29,122,237 30,188,267 $ 24,692,466 $ 22,129,662 $ Plan fiduciary net position as a percentage 71.09% 70.04% 73.58% 75.54% of the total pension liability
Covered payroll3
$ 11,189,178 10,902,171 $ 10,920,524 $ 10,072,452 $
Plan net pension liability as a percentage of covered
payroll 276.90% 260.27% 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, 2023
Last Ten Fiscal Years1
Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to
6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The ac counting discount rate was
7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
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 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred d on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 97 11.6
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Measurement period 2021-22 2020-21 2018-19 2018-19 2017-18 Total pension liability
Service cost 4,253,470 $ 3,976,010 $ 4,116,535 $ 4,001,654 $ 3,782,506 $ Interest 13,345,415 12,848,427 12,139,906 11,586,454 11,090,179 Changes of benefit terms - - - - -
Changes of assumptions 6,821,836 - - - (633,599)
Differences between expected and actual experience 2,169,260 (810,081) (85,114) (560,783) (600,354) contributions (8,821,983) (9,700,828) (8,070,115) (7,569,570) (7,391,540) Net change in total pension liability 10,171,714 13,909,812 8,101,212 7,457,755 6,247,192 Total pension liability - beginning 179,952,020 190,123,734 171,850,808 164,393,053 158,145,861 Total pension liability - ending (a) $ 190,123,734 204,033,546 $ 179,952,020 $ 171,850,808 $ 164,393,053 $ Pension fiduciary net position
Contributions - employer 7,117,603 $ 6,718,586 $ 6,320,224 $ 5,572,994 $ 4,906,333 $ Contributions - employee 1,371,949 1,307,559 1,575,349 1,245,565 1,196,981 Net investment income (11,646,787) 28,749,163 6,112,651 7,469,298 8,983,812 Benefit payments, including refunds of employee
contributions (8,821,983) (9,700,828) (8,070,115) (7,569,570) (7,391,540) Plan to plan resource movement - - (1,029) - (263)
Administrative expense2 (125,772) (95,766) (169,364) (80,996) (165,621) Other Miscellaneous Income/(Expense)1 - - - 263 (314,517) Net change in plan fiduciary net position 27,827,553 (12,953,829) 5,767,716 6,637,554 7,215,185 Plan fiduciary net position - beginning3 125,905,286 153,732,839 120,137,570 113,500,016 106,284,831 Plan fiduciary net position - ending (b) $ 153,732,839 140,779,010 $ 125,905,286 $ 120,137,570 $ 113,500,016 $ Plan net pension liability - ending (a) - (b) $ 36,390,895 63,254,536 $ 54,046,734 $ 51,713,238 $ 50,893,037 $ Plan fiduciary net position as a percentage 69.00% 80.86% 69.97% 69.91% 69.04% of the total pension liability
Covered payroll3
$ 13,936,242 13,805,486 $ 13,479,938 $ 13,479,938 $ 12,879,248 $ Plan net pension liability as a percentage of
covered payroll 458.18% 261.12% 400.94% 383.63% 395.16% Notes to Schedule:
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% 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: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The ac counting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
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, 2023
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. 98 11.6
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Measurement period 2016-17 2015-16 2014-15 2013-141
Total pension liability
Service cost 3,795,030 $ 3,436,724 $ 3,251,786 $ 3,441,840 $ Interest 10,658,420 10,258,316 9,778,748 9,235,218
Changes of benefit terms - - - -
Changes of assumptions 9,024,447 - (2,444,546) -
Differences between expected and actual experience (557,694) (1,138,485) 437,762 - contributions (6,616,198) (6,957,768) (5,976,690) (5,792,746) Net change in total pension liability 6,521,148 15,381,644 5,047,060 6,884,312 Total pension liability - beginning 136,243,069 142,764,217 131,196,009 124,311,697 Total pension liability - ending (a) $ 142,764,217 158,145,861 $ 136,243,069 $ 131,196,009 $ Pension fiduciary net position
Contributions - employer 4,528,260 $ 4,131,687 $ 3,911,991 $ 3,844,918 $ Contributions - employee 1,157,337 1,130,369 1,106,970 1,082,775 Net investment income 10,785,793 541,083 2,139,791 14,460,928 Benefit payments, including refunds of employee
contributions (6,616,198) (6,957,768) (5,976,690) (5,792,746) Plan to plan resource movement - - - -
Administrative expense2 (59,596) (143,087) (110,062) -
Other Miscellaneous Income/(Expense)1 - - - -
Net change in plan fiduciary net position (872,655) 9,370,535 1,072,000 13,595,875 Plan fiduciary net position - beginning3 97,786,951 96,914,296 96,714,951 83,119,076 Plan fiduciary net position - ending (b) $ 96,914,296 106,284,831 $ 97,786,951 $ 96,714,951 $ Plan net pension liability - ending (a) - (b) $ 45,849,921 51,861,030 $ 38,456,118 $ 34,481,058 $ Plan fiduciary net position as a percentage 67.21% 67.88% 71.77% 73.72% of the total pension liability
Covered payroll3
$ 12,637,804 12,700,905 $ 12,055,260 $ 12,092,757 $
Plan net pension liability as a percentage of
covered payroll 408.33% 362.80% 319.00% 285.14%
Notes to Schedule:
Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The ac counting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
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 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% 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).
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, 2023
Last Ten Fiscal Years
99 11.6
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Fiscal Year End 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 Actuarially determined contribution 4,453,771 $ 4,103,555 $ 3,772,061 $ 3,645,000 $ 3,254,181 $ 2,796,490 $ Contributions in relation to the actuarially
determined contribution1 (4,103,555) (4,453,771) (3,772,061) (3,645,000) (3,254,181) (2,796,490) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ Covered payroll2 $ 11,194,925 11,390,836 $ 14,371,056 $ 13,093,445 $ 12,003,033 $ 11,457,160 $ Contributions as a percentage of covered
payroll2 39.10% 36.66% 26.25% 27.84% 27.11% 24.41%
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 2.750%
Investment rate of return
Retirement age
Mortality
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 1 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. 2 Inc ludes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018- 21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
7.00% 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 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
100
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Fiscal Year End 2016-17 2015-16 2014-15 2013-14
Actuarially determined contribution 2,535,645 $ 2,448,744 $ 2,236,836 $ 2,105,469 $ Contributions in relation to the actuarially
determined contribution1 (2,448,744) (2,535,645) (2,236,836) (2,105,469) Contribution deficiency (excess) - $ - $ - $ - $
Covered payroll2 $ 11,189,178 10,920,524 $ 10,920,524 $ 10,072,452 $ Contributions as a percentage of covered
payroll2 23.22% 21.88% 20.48% 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 2.750%
Investment rate of return
Retirement age
Mortality
1 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. 2 Inc ludes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018- 21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
7.00% 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 101
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Fiscal Year End 2022-23 2021-22 2020-21 2019-20 2018-19 Actuarially determined contribution 7,730,256 $ 7,117,603 $ 6,718,586 $ 5,572,994 6,320,224 $ Contributions in relation to the actuarially
determined contribution1 (7,117,603) (7,730,256) (6,718,586) (6,320,224) (5,572,994) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll2 $ 13,805,486 14,185,137 $ 13,936,242 $ 14,083,254 $ 13,479,938 $ Contributions as a percentage of covered
payroll2 54.50% 51.56% 48.21% 44.88% 41.34%
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 2.750%
Investment rate of return 7.00% net of pension plan investment expenses; includes Inflation.
Retirement age
Mortality
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 Inc ludes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018- 21; 3.00% 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 2021-22 were derived from the June 30, 2019 funding valuation report.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 1 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. 102
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Fiscal Year End 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution 4,906,333 $ 4,528,260 $ 4,131,687 $ 3,911,991 $ 3,844,918 $ Contributions in relation to the actuarially
determined contribution1 (4,528,260) (4,906,333) (4,131,687) (3,911,991) (3,844,918) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll2 $ 12,879,248 12700905 $ 12,055,260 12,637,804 $ 12,092,757 $ Contributions as a percentage of covered
payroll2 38.09% 35.65% 32.69% 32.45% 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 2.750%
Investment rate of return
Retirement age
Mortality
1 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. 2 Inc ludes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018- 21; 3.00% 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 2021-22 were derived from the June 30, 2019 funding valuation report.
7.00% 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 City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 103
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Measurement period 2021-2022 2020-21 2019-20
Total OPEB liability
Service cost $ 1,252,941 973,126 $ 906,127 $
Interest 435,960 410,441 533,762
Difference between expected vs actual experience (150,527) (1,132,716) - Changes of assumptions (4,245,661) (724,033) 3,218,042
Benefit payments, including refunds of employee contributions (515,485) (559,128) (500,729) Net change in total OPEB liability (726,976) (3,528,106) 4,157,202 Total OPEB liability - beginning 18,751,804 18,024,828 14,594,602 Total OPEB liability - ending (a) $ 18,024,828 14,496,722 $ 18,751,804 $ Covered employee-payroll 3
$ 23,024,828 23,600,000 $ 28,912,941 $
Plan OPEB liability as a percentage of covered payroll 61.43% 78.28% 64.86% 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% The discount rate for the June 30, 2021 measurement date was decreased to 2.19% from 2.21% 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, 2023
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
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Measurement period 2018-19 2017-18 2016-17
Total OPEB liability
Service cost $ 723,000 697,310 $ 832,000 $
Interest 546,000 594,793 463,000
Actual vs. expected experience (1,655,290) - -
Changes of assumptions 547,789 (625,000) (1,691,000)
Benefit payments, including refunds of employee contributions (524,000) (491,000) (479,000) Net change in total OPEB liability 153,000 (339,398) (875,000) Total OPEB liability - beginning 14,781,000 14,934,000 15,656,000 Total OPEB liability - ending (a) $ 14,934,000 14,594,602 $ 14,781,000 $ Covered employee-payroll 3
$ 27,610,000 29,906,910 $ 26,626,000 $
Plan OPEB liability as a percentage of covered payroll 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% The discount rate for the June 30, 2021 measurement date was decreased to 2.19% from 2.21% 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.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
Other Post Employment Benefit Plan
Historical information is presented only for measurement periods for which GASB 75 is applicable. 105
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106
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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.
City of Gilroy
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2023
Budget and Budgetary Accounting
107
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes:
Property taxes 16,416,000 $ 18,682,000 $ 19,164,448 $ 482,448 $ Sales tax 20,576,773 22,565,773 21,029,959 (1,535,814)
Transient occupancy tax 1,833,898 1,833,898 1,754,615 (79,283) Utility taxes 4,307,959 5,479,958 6,551,417 1,071,459
Franchise taxes 1,753,800 1,753,800 2,198,150 444,350
Document transfer tax 530,400 530,400 404,075 (126,325) Motor vehicle in lieu tax 34,161 34,161 61,476 27,315
Total taxes 50,879,990 45,452,991 51,164,140 284,150
Intergovernmental:
Grants 135,000 1,058,100 1,257,731 199,631
Total intergovernmental
Charges for Services:
Administrative charges 3,811,497 3,811,497 3,921,412 109,915 Plan checks and inspections 1,655,780 2,275,480 1,971,054 (304,426) Special planning services 481,200 451,200 668,785 217,585 Special police services 54,122 25,000 31,603 6,603
Special fire services 200,000 200,000 408,852 208,852
Community recreation 598,455 598,455 619,423 20,968
Total charges for services 7,361,632 6,801,054 7,621,129 259,497 Licenses and Permits:
Business licenses 586,496 710,496 727,164 16,668
Hazardous material permits 210,000 210,000 313,867 103,867 Building permits 1,943,500 1,943,500 1,577,288 (366,212) Other licenses and permits 49,276 49,276 77,999 28,723
Total licenses and permits 2,913,272 2,789,272 2,696,318 (216,954) Fines:
Vehicle fines 83,526 83,526 80,830 (2,696)
Parking fines 21,150 21,150 20,401 (749)
Abandoned vehicle 100,000 150,000 154,128 4,128
Total fines 254,676 204,676 255,359 683
Investment income (loss) 163,355 163,355 1,813,640 1,650,285 Miscellaneous:
Police and fire 24,085 24,085 47,288 23,203
Recreation 4,400 4,400 3,212 (1,188)
Other 678,404 773,826 850,669 76,843
Total miscellaneous 802,311 706,889 901,169 98,858
TOTAL REVENUES 63,433,336 56,253,237 65,709,486 2,276,150 (Continued)
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2023
108
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Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
General Government:
City council 230,272 226,735 241,345 (14,610)
City administration 1,541,019 2,002,289 1,865,950 136,339 Emergency services 101,100 287,200 33,277 253,923
Finance 1,012,714 1,045,823 929,361 116,462
General administration 2,805,895 3,915,223 4,098,914 (183,691) City attorney 450,000 450,000 612,282 (162,282)
Human resources 1,399,381 1,557,268 1,540,512 16,756
Total general government 9,484,538 7,540,381 9,321,641 162,897 Public Safety:
Police administration 3,983,593 4,133,029 4,214,385 (81,356) Police patrol operations 15,545,233 17,003,635 16,830,011 173,624 Police investigation 1,572,666 1,565,930 1,511,299 54,631 Communications 2,313,304 2,493,152 2,220,417 272,735
Police records 1,230,167 1,241,650 1,034,794 206,856
Fire administration 1,983,083 2,012,239 2,125,461 (113,222) Fire operations 10,628,472 11,212,180 11,450,532 (238,352) Total public safety 39,661,815 37,256,518 39,386,899 274,916 Public works:
Public works administration 600 301,361 205,722 95,639
Street maintenance/forestry 1,234,543 1,100,130 1,092,842 7,288 Landscape maintenance 2,871,024 2,909,823 2,922,318 (12,495) Engineering 1,321,560 1,282,574 1,075,403 207,171
Total public works 5,427,727 5,593,888 5,296,285 297,603 Community development:
Administration 1,115,873 1,311,203 1,141,450 169,753
Planning 1,424,615 1,693,466 1,417,950 275,516
Buildings 1,563,201 1,590,457 1,718,758 (128,301)
Chemical containment hazardous materials 370,573 367,570 411,909 (44,339) Economic development 100,000 5,500 94,500 -
Total community development 5,062,696 4,474,262 4,695,567 367,129 Recreation services:
Community recreation 1,966,883 2,072,292 1,755,215 317,077 Total recreation services 2,072,292 1,966,883 1,755,215 317,077 Capital outlay:
Capital outlay 2,122,000 3,722,000 1,575,059 2,146,941
Total capital outlay 3,722,000 2,122,000 1,575,059 2,146,941 Debt services
Principal payment - - 22,500 (22,500)
Total debt services - - 22,500 (22,500)
TOTAL EXPENDITURES 65,597,229 58,787,771 62,053,166 3,544,063
EXCESS OF REVENUES OVER
EXPENDITURES (2,163,893) (2,534,534) 3,656,320 5,820,213 OTHER FINANCING SOURCES:
Transfers in 2,571,340 2,532,888 2,579,508 8,168
Transfers out (2,200,743) (1,231,734) (2,189,571) 11,172 Total other financing sources 370,597 1,301,154 389,937 19,340 NET CHANGE IN FUND BALANCE $ (1,793,296) (1,233,380) $ 4,046,257 5,839,553 $ FUND BALANCE:
Beginning of Year 37,905,716
End of Year $ 41,951,973
(Concluded)
For the Year Ended June 30, 2023
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund (Continued) 109
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110
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SUPPLEMENTARY INFORMATION
111
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112
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Developer impact fee 7,018,599 $ 7,018,599 $ 2,073,785 $ (4,944,814) $ Investment income 7,145 7,145 60,303 53,158
Total revenues 7,025,744 7,025,744 2,134,088 (4,891,656) EXPENDITURES:
Current:
Public works 10,000 10,000 8,928 1,072
Debt service:
Interest and fiscal charges 58,858 58,858 58,858 -
Total expenditures 68,858 68,858 67,786 1,072
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 6,956,886 6,956,886 2,066,302 (4,890,584) OTHER FINANCIN SOURCES (USES):
Transfers in 40,763 40,763 40,763 -
Transfers out (3,872,081) (3,872,081) (3,188,031) 684,050 Total other financing sources (uses) (3,831,318) (3,831,318) (3,147,268) 684,050 NET CHANGE IN FUND BALANCE $ 3,125,568 3,125,568 $ (1,080,966) (4,206,534) $ FUND BALANCE(DEFICIT):
Beginning of Year 30,550
End of Year $ (1,050,416)
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, 2023
113
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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 Fund - 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 Fund - This fund is used to account for County Measure A and other transportation grants used to repair and rebuild various roads.
Public Safety Grants Fund - This fund is used to account for state and federal grants used for public safety activities.
SPECIAL REVENUE FUNDS
Prop 172 Sales Tax Fund - This fund is used to account for funds received from state sales tax used for public safety activities.
Opioid Settlement Fund - State led participation in the National Opioid Settlement with Teva, Allergan, CVS, Walgreens, and Walmart. Money can be used for opioid abatement. 85% of the monies received from the settlement will be distributed to cities and counties.
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.
CalHome Funds - This fund is used to account funds received from South County Housing to support future homebuyers.
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 Fund - 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.
Community Development Block Grant Fund - This fund is used to account for Housing and Urban Development grants used to operate the Community Development Grant Program.
Rehabilitation Loans Fund - 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 Fund - 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 Fund - 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 Fund - This fund is used to account for street and road maintenance and repair projects.
Traffic Impact Fund - 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 Fund - 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. 114
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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)
Stormwater Management Fund- established to set aside funds to implement State required trash capture device provisions in the Stormwater system.
Water Development Fund - 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.
Downtown Beautification Fund – The purpose of this fund is to finance the design and construction improvements along Gourmet Alley and Railroad Alley. These improvements are funded by a $3.9M grant from Caltrans' Clean California Local Grant Program.
Interest is allocated.
PERMANENT FUNDS
Museum Trust Fund - 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 Fund - 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 Fund - This fund is used to account for the payments of debt service of principal and interest for the PFFA Lease Revenue 2020A Bonds.
Street Trees Development Fund - This fund is used to account for the collection of a front footage fee to plant trees in new developments.
Sewer Development Fund - 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 Fund - 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 Fund - 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. 2013 Refunding Bond Fund - This fund is used to account for the payments of debt service of principal and interest for the 2013 Lease Revenue Refunding Bonds.
Gilroy Community Library Fund - 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
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Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
ASSETS
Cash and investments $ 231,734 6,723,909 $ 612,766 $ 127,050 $ Receivables:
Accounts - 120,124 172,467 -
Due from other governments - 132,089 91,257 58,364
Interest - - - -
Loans - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets $ 231,734 6,976,122 $ 876,490 $ 185,414 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - 377,839 $ 85,836 $ 10,637 $
Accrued liabilities - - 34,971 -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - 377,839 120,807 10,637
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 231,734 6,598,283 755,683 174,777
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 231,734 6,598,283 755,683 174,777 Total liabilities, deferred inflows of
resources, and fund balances $ 231,734 6,976,122 $ 876,490 $ 185,414 $ (Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
116
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Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
ASSETS
Cash and investments $ 235 403,644 $ 1,126,721 $ 1,671,445 $ Receivables:
Accounts - 300 1,378 -
Due from other governments - 131,782 - 2,194
Interest - 465,501 388,252 -
Loans - 1,646,375 1,216,663 -
Advances from other funds - - - -
Land held for resale - - 706,754 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets $ 235 2,647,602 $ 3,439,768 $ 1,673,639 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - 97,489 $ 482 $ 11,150 $
Accrued liabilities - 3,492 4,580 -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - 100,981 5,062 11,150
Deferred inflows of resources:
Unavailable revenues - 471,853 388,252 -
Total deferred inflows of resources - 471,853 388,252 - Fund balances:
Restricted 235 2,074,768 3,046,454 1,662,489
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 235 2,074,768 3,046,454 1,662,489 Total liabilities, deferred inflows of
resources, and fund balances $ 235 2,647,602 $ 3,439,768 $ 1,673,639 $ (Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
117
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Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
ASSETS
Cash and investments $ 1,355,119 4,115,694 $ 633,774 $ 367,186 $ Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - 68,601
Loans - - - 180,600
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets $ 1,355,119 4,115,694 $ 633,774 $ 616,387 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 1,879 $ - $
Accrued liabilities - - - -
Deposits payable - - - -
Unearned revenue - - - 249,201
Due to other funds - - - -
Total liabilities - - 1,879 249,201
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 1,355,119 4,115,694 631,895 367,186
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 1,355,119 4,115,694 631,895 367,186 Total liabilities, deferred inflows of
resources, and fund balances $ 1,355,119 4,115,694 $ 633,774 $ 616,387 $ (Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
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Special
Revenue Funds
Opioid Settlement Capital Traffic
Fund Projects Impact
ASSETS
Cash and investments $ 3,674,177 46,551 $ 17,305,015 $
Receivables:
Accounts - - -
Due from other governments - - -
Interest - - -
Loans - - -
Advances from other funds - - -
Land held for resale - - -
Restricted assets:
Cash and investments with fiscal agents - - -
Total assets $ 3,674,177 46,551 $ 17,305,015 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ 116,786 - $ 40,081 $
Accrued liabilities - - -
Deposits payable - - -
Unearned revenue - - -
Due to other funds - - -
Total liabilities 116,786 - 40,081
Deferred inflows of resources:
Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund balances:
Restricted - - 17,264,934
Assigned 3,557,391 46,551 -
Unassigned (deficit) - - -
Total fund balances (deficit) 3,557,391 46,551 17,264,934 Total liabilities, deferred inflows of
resources, and fund balances $ 3,674,177 46,551 $ 17,305,015 $ Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
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Street
Storm Trees Sewer Water
Drains Development Development Development
ASSETS
Cash and investments $ 150,453 1,362,657 $ 15,166,621 $ 6,185,116 $ Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - -
Loans - - - -
Advances from other funds - 794,277 728,945 -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets $ 150,453 2,156,934 $ 15,895,566 $ 6,185,116 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - 108 $ 108 $ 108 $
Accrued liabilities - - - 16,230
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - 108 108 16,338
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 150,453 2,156,826 15,895,458 6,168,778
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 150,453 2,156,826 15,895,458 6,168,778 Total liabilities, deferred inflows of
resources, and fund balances $ 150,453 2,156,934 $ 15,895,566 $ 6,185,116 $ (Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
120
11.6 p. 375 of 478
Gilroy
Community Downtown Stormwater
Library Beautification Management
ASSETS
Cash and investments $ 47,248 5,288,979 $ 794,089 $
Receivables:
Accounts - - -
Due from other governments - 41,927 -
Interest - - -
Loans - - -
Advances from other funds - - -
Land held for resale - - -
Restricted assets:
Cash and investments with fiscal agents - - -
Total assets $ 47,248 5,330,906 $ 794,089 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ 47,248 - $ - $
Accrued liabilities - - -
Deposits payable - - -
Unearned revenue - - -
Due to other funds 155,324 - -
Total liabilities 202,572 - -
Deferred inflows of resources:
Unavailable revenues - - -
Total deferred inflows of resources - - -
Fund balances:
Restricted - 5,330,906 794,089
Assigned - - -
Unassigned (deficit) (155,324) - -
Total fund balances (deficit) (155,324) 5,330,906 794,089 Total liabilities, deferred inflows of
resources, and fund balances $ 47,248 5,330,906 $ 794,089 $ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
Capital Projects Funds
June 30, 2023
121
11.6 p. 376 of 478
2013 Gilroy CA Energy Lease Revenue
Refunding Community Commission Bond Series
Bond Library Loan 2020A
ASSETS
Cash and investments $ 1,401,327 228,642 $ 20,690 $ 677,445 $ Receivables:
Accounts 9,235 - - -
Due from other governments - - - -
Interest - - - -
Loans - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - 1,827 - 1,313 Total assets $ 1,410,562 230,469 $ 20,690 $ 678,758 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ - $ - $
Accrued liabilities - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - - - -
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Restricted 1,410,562 230,469 20,690 678,758
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 1,410,562 230,469 20,690 678,758 Total liabilities, deferred inflows of
resources, and fund balances $ 1,410,562 230,469 $ 20,690 $ 678,758 $ Debt Service Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
122
11.6 p. 377 of 478
Total Nonmajor
Henry Museum Governmental
Miller Trust Funds
ASSETS
Cash and investments $ 44,213 15,399 $ 69,777,899 $
Receivables:
Accounts - - 303,504
Due from other governments - - 457,613
Interest - - 922,354
Loans - - 3,043,638
Advances from other funds - - 1,523,222
Land held for resale - - 706,754
Restricted assets:
Cash and investments with fiscal agents - - 3,140
Total assets $ 44,213 15,399 $ 76,738,124 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable $ - - $ 789,751 $
Accrued liabilities - - 59,273
Deposits payable 35,299 - 35,299
Unearned revenue - - 249,201
Due to other funds - - 155,324
Total liabilities 35,299 - 1,288,848
Deferred inflows of resources:
Unavailable revenues - - 860,105
Total deferred inflows of resources - - 860,105
Fund balances:
Restricted 8,914 15,399 71,140,553
Assigned - - 3,603,942
Unassigned (deficit) - - (155,324)
Total fund balances (deficit) 8,914 15,399 74,589,171
Total liabilities, deferred inflows of
resources, and fund balances $ 44,213 15,399 $ 76,738,124 $ (Concluded)
Permanent Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
123
11.6 p. 378 of 478
Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
Revenues:
Taxes $ - - $ - $ 301,913 $
Intergovernmental 2,867,350 - 1,030,992 -
Developer impact fees - - - -
Investment income (loss) 3,748 129,736 7,002 1,353
Miscellaneous - - 120,678 -
Total revenues 3,748 2,997,086 1,158,672 303,266
Expenditures:
Current:
General government - - - -
Public safety - - 866,352 293,959
Community development - - - -
Public works 382,799 - - -
Capital outlay 2,675,426 - 10,861 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Bond issuance cost - - - -
Total expenditures - 3,058,225 877,213 293,959
Revenues over (under)
expenditures 3,748 (61,139) 281,459 9,307
Other financing sources (uses):
Issuance of debt - - - -
Payment to refunded bond escrow - - - -
Transfers in - - 163,672 -
Transfers out (107,363) - (115,271) -
Total other financing sources (uses) - (107,363) 48,401 - Net change in fund balances 3,748 (168,502) 329,860 9,307 Fund balances (deficit):
Beginning of year 6,766,785 227,986 425,823 165,470
End of year $ 231,734 6,598,283 $ 755,683 $ 174,777 $
(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, 2023
124
11.6 p. 379 of 478
Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
Revenues:
Taxes $ - - $ - $ 507,823 $
Intergovernmental 1,002,854 - - -
Developer impact fees - - - -
Investment income (loss) 5 7,313 25,173 25,397
Miscellaneous 6,346 - 537,534 -
Total revenues 5 1,016,513 562,707 533,220
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development 532,454 - 325,293 -
Public works - - - 347,071
Capital outlay 203,394 - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Bond issuance cost - - - -
Total expenditures - 735,848 325,293 347,071
Revenues over (under)
expenditures 5 280,665 237,414 186,149
Other financing sources (uses):
Issuance of debt - - - -
Payment to refunded bond escrow - - - -
Transfers in - - 169,224 -
Transfers out (58,104) - (1,402) -
Total other financing sources (uses) - (58,104) 167,822 - Net change in fund balances 5 222,561 405,236 186,149
Fund balances (deficit):
Beginning of year 1,852,207 230 2,641,218 1,476,340
End of year $ 235 2,074,768 $ 3,046,454 $ 1,662,489 $
(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, 2023
125
11.6 p. 380 of 478
Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
Revenues:
Taxes $ - - $ - $ - $
Intergovernmental 2,968,901 341,769 137,127 -
Developer impact fees - - - -
Investment income (loss) 21,120 32,683 9,387 5,938
Miscellaneous - - - -
Total revenues 362,889 3,001,584 146,514 5,938
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - 128,866 -
Public works 300 6,934 - -
Capital outlay 947,500 12,620 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Bond issuance cost - - - -
Total expenditures 19,554 947,800 128,866 -
Revenues over (under)
expenditures 343,335 2,053,784 17,648 5,938
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 343,335 2,053,784 17,648 5,938 Fund balances (deficit):
Beginning of year 2,061,910 1,011,784 614,247 361,248
End of year $ 1,355,119 4,115,694 $ 631,895 $ 367,186 $ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
126
11.6 p. 381 of 478
Special
Revenue Funds
Opioid Settlement Capital Traffic
Fund Projects Impact
Revenues:
Taxes $ - - $ - $
Intergovernmental - - -
Developer impact fees - - 3,465,903
Investment income (loss) 109,091 420 302,563
Miscellaneous 46,131 - -
Total revenues 109,091 46,551 3,768,466
Expenditures:
Current:
General government - - -
Public safety - - -
Community development - - -
Public works - - 5,616
Capital outlay - 2,045,998 4,034,756
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Bond issuance cost - - -
Total expenditures 2,045,998 - 4,040,372
Revenues over (under)
expenditures (1,936,907) 46,551 (271,906)
Other financing sources (uses):
Issuance of debt - - -
Payment to refunded bond escrow - - -
Transfers in - - 48,769
Transfers out - - -
Total other financing sources (uses) - - 48,769
Net change in fund balances (1,936,907) 46,551 (223,137) Fund balances (deficit):
Beginning of year - 5,494,298 17,488,071
End of year $ 3,557,391 46,551 $ 17,264,934 $
(Continued)
For the Year Ended June 30, 2023
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
127
11.6 p. 382 of 478
Street
Storm Trees Sewer Water
Drains Development Development Development
Revenues:
Taxes $ - - $ - $ - $
Intergovernmental - - - -
Developer impact fees 34,005 8,008 1,122,624 317,576
Investment income (loss) 2,365 32,679 244,628 100,028
Miscellaneous - - - -
Total revenues 10,373 66,684 1,367,252 417,604
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - - -
Public works 2,740 - 19,551 3,150
Capital outlay - - - 304,913
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Bond issuance cost - - - -
Total expenditures - 2,740 19,551 308,063
Revenues over (under)
expenditures 10,373 63,944 1,347,701 109,541
Other financing sources (uses):
Issuance of debt - - - -
Payment to refunded bond escrow - - - -
Transfers in 1,196 27 28,351 5,893
Transfers out - - (1,543,668) -
Total other financing sources (uses) 27 1,196 (1,515,317) 5,893 Net change in fund balances 10,400 65,140 (167,616) 115,434 Fund balances (deficit):
Beginning of year 2,091,686 140,053 16,063,074 6,053,344 End of year $ 150,453 2,156,826 $ 15,895,458 $ 6,168,778 $ (Continued)
Capital Projects Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
128
11.6 p. 383 of 478
Gilroy
Community Downtown Stormwater
Library Beautification Management
Revenues:
Taxes $ - - $ - $
Intergovernmental - 181,530 -
Developer impact fees - - -
Investment income (loss) - 109,700 10,413
Miscellaneous - - 783,676
Total revenues 181,530 109,700 794,089
Expenditures:
Current:
General government - - -
Public safety - - -
Community development - - -
Public works 477 - -
Capital outlay 336,377 - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Bond issuance cost - - -
Total expenditures 336,854 - -
Revenues over (under)
expenditures (155,324) 109,700 794,089
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 (155,324) 109,700 794,089
Fund balances (deficit):
Beginning of year 5,221,206 - -
End of year $ (155,324) 5,330,906 $ 794,089 $
(Continued)
Capital Projects Funds
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 129
11.6 p. 384 of 478
2013 Gilroy CA Energy Lease Revenue
Refunding Community Commission Bond Series
Bond Library Loan 2020A
Revenues:
Taxes $ 1,927,859 - $ - $ - $
Intergovernmental - - - -
Developer impact fees - - - -
Investment income (loss) 12,594 17,956 590 9,504
Miscellaneous - - - -
Total revenues 1,940,453 17,956 590 9,504
Expenditures:
Current:
General government 3,623 5,490 - 4,300
Public safety - - - -
Community development - - - -
Public works - - - -
Capital outlay - - - -
Debt service:
Principal retirement 1,035,000 1,055,605 93,359 755,000 Interest and fiscal charges 659,003 779,906 6,503 592,875 Bond issuance cost 169,268 - - -
Total expenditures 1,841,001 1,866,894 99,862 1,352,175 Revenues over (under)
expenditures 99,452 (1,848,938) (99,272) (1,342,671)
Other financing sources (uses):
Issuance of debt 14,587,831 - - -
Payment to refunded bond escrow (15,352,976) - - -
Transfers in 1,840,156 - 99,863 1,347,875
Transfers out - - - -
Total other financing sources (uses) 1,075,011 99,863 - 1,347,875 Net change in fund balances 99,452 (773,927) 591 5,204
Fund balances (deficit):
Beginning of year 1,004,396 1,311,110 20,099 673,554
End of year $ 1,410,562 230,469 $ 20,690 $ 678,758 $
Debt Service Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
130
11.6 p. 385 of 478
Total Nonmajor
Henry Museum Governmental
Miller Trust Funds
Revenues:
Taxes $ - - $ 2,737,595 $
Intergovernmental - - 8,530,523
Developer impact fees - - 4,948,116
Investment income (loss) (1,578) 346 1,220,154
Miscellaneous - - 1,494,365
Total revenues (1,578) 346 18,930,753
Expenditures:
Current:
General government - - 13,413
Public safety - - 1,160,311
Community development - - 986,613
Public works - - 768,638
Capital outlay - - 10,571,845
Debt service:
Principal retirement - - 2,938,964
Interest and fiscal charges - - 2,038,287
Bond issuance cost - - 169,268
Total expenditures - - 18,647,339
Revenues over (under)
expenditures (1,578) 346 283,414
Other financing sources (uses):
Issuance of debt - - 14,587,831
Payment to refunded bond escrow - - (15,352,976)
Transfers in - - 3,705,026
Transfers out - - (1,825,808)
Total other financing sources (uses) - - 1,114,073
Net change in fund balances (1,578) 346 1,397,487
Fund balances (deficit):
Beginning of year 15,053 10,492 73,191,684
End of year $ 8,914 15,399 $ 74,589,171 $
(Concluded)
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Permanent Funds
131
11.6 p. 386 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental $ 2,579,081 3,479,081 $ 2,867,350 $ 288,269 $ Investment income 49,691 63,759 129,736 80,045
Total revenues 2,628,772 3,542,840 2,997,086 368,314
Expenditures:
Current:
Public works 1,053,598 705,889 382,799 323,090
Capital outlay 8,050,646 3,005,738 2,675,426 5,375,220
Total expenditures 8,756,535 4,059,336 3,058,225 5,698,310
REVENUE OVER
(UNDER) EXPENDITURES (6,127,763) (516,496) (61,139) 6,066,624 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 $ (6,235,126) (623,859) $ (168,502) 6,066,624 $ FUND BALANCE:
Beginning of Year 6,766,785
End of Year $ 6,598,283
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Budgeted Amounts
Gas Tax Special Revenue Fund
132
11.6 p. 387 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 1,788,500 $ 1,788,500 $ - $ (1,788,500) $ Investment income - - 3,748 3,748
Total revenues 1,788,500 1,788,500 3,748 (1,784,752)
Expenditures:
Capital outlay 1,788,500 1,788,500 - 1,788,500
Total expenditures 1,788,500 1,788,500 - 1,788,500
REVENUE OVER
(UNDER) EXPENDITURES - - 3,748 3,748
NET CHANGE IN FUND BALANCE $ - - $ 3,748 3,748 $
FUND BALANCE:
Beginning of Year 227,986
End of Year $ 231,734
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, 2023
Budgeted Amounts
133
11.6 p. 388 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 256,688 $ 1,427,552 $ 1,030,992 $ (396,560) $ Investment income 3,261 3,261 7,002 3,741
Miscellaneous - - 120,678 120,678
Total revenues 1,430,813 259,949 1,158,672 (272,141)
Expenditures:
Current:
Public safety 1,617,557 266,673 866,352 751,205
Capital outlay - - 10,861 (10,861)
Total expenditures 1,617,557 266,673 877,213 740,344
REVENUE OVER
(UNDER) EXPENDITURES (186,744) (6,724) 281,459 468,203
Other Financing Sources (Uses):
Transfers in 163,672 163,672 163,672 -
Transfers out (154,388) (154,388) (115,271) 39,117
Total other financing sources (uses) 9,284 9,284 48,401 39,117 NET CHANGE IN FUND BALANCE $ (177,460) 2,560 $ 329,860 507,320 $ FUND BALANCE:
Beginning of Year 425,823
End of Year $ 755,683
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, 2023
134
11.6 p. 389 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 301,000 $ 301,000 $ 301,913 $ 913 $
Investment income 135 135 1,353 1,218
Total revenues 301,135 301,135 303,266 2,131
Expenditures:
Current:
Public safety 310,188 310,188 293,959 16,229
Total expenditures 310,188 310,188 293,959 16,229
REVENUE OVER
(UNDER) EXPENDITURES (9,053) (9,053) 9,307 18,360
NET CHANGE IN FUND BALANCE $ (9,053) (9,053) $ 9,307 18,360 $ FUND BALANCE:
Beginning of Year 165,470
End of Year $ 174,777
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, 2023
135
11.6 p. 390 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 439,371 $ 779,247 $ 1,002,854 $ 223,607 $ Investment income 2,115 2,115 7,313 5,198
Miscellaneous - - 6,346 6,346
Total revenues 781,362 441,486 1,016,513 235,151
Expenditures:
Current:
Community development 698,055 174,183 532,454 165,601
Capital outlay 196,099 203,394 - (7,295)
Total expenditures 894,154 174,183 735,848 158,306
REVENUE OVER
(UNDER) EXPENDITURES (112,792) 267,303 280,665 393,457
Other Financing Sources (Uses):
Transfers out - (38,452) (58,104) (19,652)
Total other financing sources (uses) (38,452) - (58,104) (19,652) NET CHANGE IN FUND BALANCE $ (151,244) 267,303 $ 222,561 373,805 $ FUND BALANCE:
Beginning of Year 1,852,207
End of Year $ 2,074,768
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, 2023
136
11.6 p. 391 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 2 2 $ 5 $ 3 $
Total revenues 2 2 5 3
NET CHANGE IN FUND BALANCE $ 2 2 $ 5 3 $
FUND BALANCE:
Beginning of year 230
End of year $ 235
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, 2023
137
11.6 p. 392 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 10,816 10,816 $ 25,173 $ 14,357 $
Miscellaneous 251,000 251,000 537,534 286,534
Total revenues 261,816 261,816 562,707 300,891
Expenditures:
Current:
Community development 563,353 1,125,656 325,293 800,363 Total expenditures 1,125,656 563,353 325,293 800,363
Revenues over (under)
expenditures (863,840) (301,537) 237,414 1,101,254
Other financing sources (uses):
Transfers in - 249,052 169,224 (79,828)
Total other financing sources (uses) 249,052 - 167,822 (81,230) NET CHANGE IN FUND BALANCE $ (614,788) (301,537) $ 405,236 1,020,024 $ FUND BALANCE:
Beginning of year 2,641,218
End of year $ 3,046,454
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, 2023
138
11.6 p. 393 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 453,167 $ 453,167 $ 507,823 $ 54,656 $
Investment income 7,568 7,568 25,397 17,829
Total revenues 460,735 460,735 533,220 72,485
Expenditures:
Current:
Public works 419,702 423,278 347,071 76,207
Total expenditures 423,278 419,702 347,071 76,207
NET CHANGE IN FUND BALANCE $ 37,457 41,033 $ 186,149 148,692 $ FUND BALANCE:
Beginning of year 1,476,340
End of year $ 1,662,489
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, 2023
139
11.6 p. 394 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental - $ 900,000 $ 2,968,901 $ 2,068,901 $ Investment income 14,068 - 32,683 18,615
Total revenues 914,068 - 3,001,584 2,087,516
Expenditures:
Current:
Public works - 10,000 300 9,700
Capital outlay - 1,800,000 947,500 852,500
Total expenditures 1,810,000 - 947,800 862,200
NET CHANGE IN FUND BALANCE $ (895,932) - $ 2,053,784 2,949,716 $ FUND BALANCE:
Beginning of year 2,061,910
End of year $ 4,115,694
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, 2023
140
11.6 p. 395 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 389,944 $ 389,944 $ 341,769 $ (48,175) $ Investment income 9,761 9,761 21,120 11,359
Total revenues 399,705 399,705 362,889 (36,816)
Expenditures:
Current:
Public works 25,000 25,000 6,934 18,066
Capital outlay 998,338 1,036,498 12,620 1,023,878
Total expenditures 1,061,498 1,023,338 19,554 1,041,944 Revenues over (under)
expenditures (661,793) (623,633) 343,335 1,005,128
NET CHANGE IN FUND BALANCE $ (661,793) (623,633) $ 343,335 1,005,128 $ FUND BALANCE:
Beginning of year 1,011,784
End of year $ 1,355,119
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, 2023
141
11.6 p. 396 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental - $ - $ 137,127 $ 137,127 $
Investment income 2,783 2,783 9,387 6,604
Total revenues 2,783 2,783 146,514 143,731
Expenditures:
Current:
Community development - 101,000 128,866 (27,866)
Total expenditures 101,000 - 128,866 (27,866)
Revenues over (under)
expenditures (98,217) 2,783 17,648 115,865
NET CHANGE IN FUND BALANCE $ (98,217) 2,783 $ 17,648 115,865 $ FUND BALANCE:
Beginning of year 614,247
End of year $ 631,895
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, 2023
142
11.6 p. 397 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 1,568 1,568 $ 5,938 $ 4,370 $
Miscellaneous - - - -
Total revenues 1,568 1,568 5,938 4,370
NET CHANGE IN FUND BALANCE $ 1,568 1,568 $ 5,938 4,370 $ FUND BALANCE:
Beginning of year 361,248
End of year $ 367,186
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, 2023
143
11.6 p. 398 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ - - $ 420 $ 420 $
Miscellaneous - - 46,131 46,131
Total revenues - - 46,551 46,551
NET CHANGE IN FUND BALANCE $ - - $ 46,551 46,551 $
FUND BALANCE:
Beginning of year -
End of year $ 46,551
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Opioid Settlement Special Revenue Fund
For the Year Ended June 30, 2023
144
11.6 p. 399 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 35,694 35,694 $ 109,091 $ 73,397 $
Total revenues 35,694 35,694 109,091 73,397
Expenditures:
Capital outlay 300,000 2,804,346 2,045,998 758,348
Total expenditures 2,804,346 300,000 2,045,998 758,348
Revenues over (under)
expenditures (2,768,652) (264,306) (1,936,907) 831,745
NET CHANGE IN FUND BALANCE $ (2,768,652) (264,306) $ (1,936,907) 831,745 $ FUND BALANCE:
Beginning of year 5,494,298
End of year $ 3,557,391
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, 2023
145
11.6 p. 400 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 4,938,950 $ 4,938,950 $ 3,465,903 $ (1,473,047) $ Investment income 86,452 86,452 302,563 216,111
Total revenues 5,025,402 5,025,402 3,768,466 (1,256,936) Expenditures:
Current:
Public works 10,451 407,100 5,616 401,484
Capital outlay 2,613,273 3,548,505 4,034,756 (486,251)
Total expenditures 3,955,605 2,623,724 4,040,372 (84,767) Revenues over (under)
expenditures 1,069,797 2,401,678 (271,906) (1,341,703)
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 BALANCE $ 1,118,566 2,450,447 $ (223,137) (1,341,703) $ FUND BALANCE:
Beginning of year 17,488,071
End of year $ 17,264,934
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, 2023
146
11.6 p. 401 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 66,697 $ 66,697 $ 34,005 $ (32,692) $ Investment income 18,962 18,962 32,679 13,717
Total revenues 85,659 85,659 66,684 (18,975)
Expenditures:
Current:
Public works 5,194 5,194 2,740 2,454
Total expenditures 5,194 5,194 2,740 2,454
Revenues over (under)
expenditures 80,465 80,465 63,944 (16,521)
Other financing sources (uses):
Transfers in 75,395 75,395 1,196 (74,199)
Total other financing sources (uses) 75,395 75,395 1,196 (74,199) NET CHANGE IN FUND BALANCE $ 155,860 155,860 $ 65,140 (90,720) $ FUND BALANCE:
Beginning of year 2,091,686
End of year $ 2,156,826
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, 2023
147
11.6 p. 402 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 2,000 $ 2,000 $ 8,008 $ 6,008 $
Investment income 943 943 2,365 1,422
Total revenues 2,943 2,943 10,373 7,430
Other financing sources (uses):
Transfers in 27 27 27 -
Total other financing sources (uses) 27 27 27 -
NET CHANGE IN FUND BALANCE $ 2,970 2,970 $ 10,400 7,430 $ FUND BALANCE:
Beginning of year 140,053
End of year $ 150,453
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, 2023
148
11.6 p. 403 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 2,849,798 $ 2,849,798 $ 1,122,624 $ (1,727,174) $ Investment income 92,854 92,854 244,628 151,774
Total revenues 2,942,652 2,942,652 1,367,252 (1,575,400) Expenditures:
Current:
Public works 24,818 24,818 19,551 5,267
Total expenditures 24,818 24,818 19,551 5,267
Revenues over (under)
expenditures 2,917,834 2,917,834 1,347,701 (1,570,133)
Other financing sources (uses):
Transfers in 386,083 386,083 28,351 (357,732)
Transfers out (2,556,800) (2,556,800) (1,543,668) 1,013,132 Total other financing sources (uses) (2,170,717) (2,170,717) (1,515,317) 655,400 NET CHANGE IN FUND BALANCE $ 747,117 747,117 $ (167,616) (914,733) $ FUND BALANCE:
Beginning of year 16,063,074
End of year $ 15,895,458
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, 2023
149
11.6 p. 404 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 950,336 $ 950,336 $ 317,576 $ (632,760) $ Investment income 32,895 32,895 100,028 67,133
Total revenues 983,231 983,231 417,604 (565,627)
Expenditures:
Current:
Public works 2,673,406 8,106 3,150 4,956
Capital outlay - 3,193,029 304,913 2,888,116
Total expenditures 3,201,135 2,673,406 308,063 2,893,072 Revenues over (under)
expenditures (2,217,904) (1,690,175) 109,541 2,327,445
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 BALANCE $ (2,212,011) (1,684,282) $ 115,434 2,327,445 $ FUND BALANCE:
Beginning of year 6,053,344
End of year $ 6,168,778
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, 2023
150
11.6 p. 405 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income (loss) $ 66 66 $ 109,700 $ 109,634 $
Total revenues 66 66 109,700 109,634
Revenues over (under)
expenditures 66 66 109,700 109,634
NET CHANGE IN FUND BALANCE $ 66 66 $ 109,700 109,634 $
FUND BALANCE:
Beginning of year 5,221,206
End of year $ 5,330,906
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, 2023
151
11.6 p. 406 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes - $ - $ - $ - $
Intergovernmental - 3,960,765 181,530 (3,779,235)
Total revenues 3,960,765 - 181,530 (3,779,235)
Expenditures:
Current:
Public works - 201,600 477 201,123
Capital outlay - 3,759,165 336,377 3,422,788
Total expenditures 3,960,765 - 336,854 3,623,911
Revenues over (under)
expenditures - - (155,324) (155,324)
NET CHANGE IN FUND BALANCE $ - - $ (155,324) (155,324) $ FUND BALANCE(DEFICIT):
Beginning of year -
End of year $ (155,324)
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Downtown Beautification Capital Projects Fund
For the Year Ended June 30, 2023
152
11.6 p. 407 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ - - $ 10,413 $ 10,413 $
Miscellaneous - - 783,676 783,676
Total revenues - - 794,089 794,089
Revenues over (under)
expenditures - - 794,089 794,089
NET CHANGE IN FUND BALANCE $ - - $ 794,089 794,089 $
FUND BALANCE:
Beginning of year -
End of year $ 794,089
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stormwater Management Capital Projects Fund
For the Year Ended June 30, 2023
153
11.6 p. 408 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 920 920 $ 17,956 $ 17,036 $
Total revenues 920 920 17,956 17,036
Expenditures:
Current:
General government 8,600 8,600 3,623 4,977
Debt service:
Principal retirement 1,035,000 1,035,000 1,035,000 -
Interest and fiscal charges 805,156 805,156 659,003 146,153 Bond issuance cost - - 169,268 (169,268)
Total expenditures 1,848,756 1,848,756 1,866,894 (18,138) Revenues over (under)
expenditures (1,847,836) (1,847,836) (1,848,938) (1,102) Other financing sources (uses):
Issuance of debt - - 14,587,831 (14,587,831)
Payment to refunded bond escrow - - (15,352,976) 15,352,976 Transfers in 1,840,156 1,840,156 1,840,156 -
Total other financing sources (uses) 1,840,156 1,840,156 1,075,011 765,145 NET CHANGE IN FUND BALANCE $ (7,680) (7,680) $ (773,927) (766,247) $ FUND BALANCE:
Beginning of year 1,004,396
End of year $ 230,469
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, 2023
154
11.6 p. 409 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 2,019,504 $ 2,019,504 $ 1,927,859 $ (91,645) $
Investment income 5,296 12,594 5,296 7,298
Total revenues 2,024,800 2,024,800 1,940,453 (84,347)
Expenditures:
Current:
General government 600 600 5,490 (4,890)
Debt service:
Principal retirement 1,055,605 1,055,605 1,055,605 -
Interest and fiscal charges 779,906 779,906 779,906 -
Total expenditures 1,836,111 1,836,111 1,841,001 (4,890) NET CHANGE IN FUND BALANCE $ 188,689 188,689 $ 99,452 (89,237) $ FUND BALANCE:
Beginning of year 1,311,110
End of year $ 1,410,562
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, 2023
155
11.6 p. 410 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ 250 250 $ 590 $ 340 $
Total revenues 250 250 590 340
Expenditures:
Debt service:
Principal retirement 93,359 93,359 93,359 -
Interest and fiscal charges 6,503 6,503 6,503 -
Total expenditures 99,862 99,862 99,862 -
Revenues over (under)
expenditures (99,612) (99,612) (99,272) 340
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 BALANCE $ 251 251 $ 591 340 $
FUND BALANCE:
Beginning of year 20,099
End of year $ 20,690
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, 2023
156
11.6 p. 411 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ - - $ 9,504 $ 9,504 $
Total revenues - - 9,504 9,504
Expenditures:
Current:
General government 8,600 8,600 4,300 4,300
Debt service:
Principal retirement 755,000 755,000 755,000 -
Interest and fiscal charges 592,875 592,875 592,875 -
Total expenditures 1,356,475 1,356,475 1,352,175 4,300
Revenues over (under)
expenditures (1,356,475) (1,356,475) (1,342,671) 13,804 Other financing sources (uses):
Transfers in 1,347,875 1,347,875 1,347,875 -
Total other financing sources (uses) 1,347,875 1,347,875 1,347,875 - NET CHANGE IN FUND BALANCE $ (8,600) (8,600) $ 5,204 13,804 $ FUND BALANCE:
Beginning of year 673,554
End of year $ 678,758
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Lease Revenue Bonds Series 2020A Fund
For the Year Ended June 30, 2023
157
11.6 p. 412 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income $ - - $ 346 $ 346 $
Total revenues - - 346 346
Revenues over (under)
expenditures - - 346 346
NET CHANGE IN FUND BALANCE $ - - $ 346 346 $
FUND BALANCE:
Beginning of year 15,053
End of year $ 15,399
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Henry Miller Fund
For the Year Ended June 30, 2023
158
11.6 p. 413 of 478
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income (loss) $ - - $ (1,578) $ (1,578) $
Total revenues - - (1,578) (1,578)
Revenues over (under)
expenditures - - (1,578) (1,578)
NET CHANGE IN FUND BALANCE $ - - $ (1,578) (1,578) $
FUND BALANCE:
Beginning of year 10,492
End of year $ 8,914
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Museum Trust Fund
For the Year Ended June 30, 2023
159
11.6 p. 414 of 478
160
11.6 p. 415 of 478
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.
Personnel 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.
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.
161
11.6 p. 416 of 478
Fleet Equipment Workers' General
Services Outlay Compensation Liability
ASSETS
Current assets:
Cash and investments 3,683,422 $ 3,834,109 $ 4,595,296 $ 2,444,912 $ Accounts receivable - - - 3,116
Interest receivable - - - -
Lease receivable - current - - - -
Prepaid items - - - -
Total current assets 3,834,109 3,683,422 4,595,296 2,448,028 Noncurrent assets:
Interfund loans receivable 2,496,513 - - -
Lease receivable -noncurrent - - - -
Capital assets:
Nondepreciable 62,694 - - -
Depreciable and amortizable, net 4,033,822 511,871 - -
Total capital assets 4,096,516 511,871 - -
Total noncurrent assets 511,871 6,593,029 - -
Total assets 4,345,980 10,276,451 4,595,296 2,448,028
LIABILITIES
Current Liabilities:
Accounts payable 92,072 10,495 - 13,313
Accrued liabilities 49,070 - - 350
Interest payable - - - -
Deposit payable - - - -
Compensated absences, current portion 1,285 - - -
Long term debt, current portion - - - -
Claims payable, current portion - - 965,000 717,152
Total current liabilities 10,495 142,427 965,000 730,815 Noncurrent liabilities:
Compensated absences, noncurrent portion 11,564 - - -
Long term debt, noncurrent portion - - - -
Claims payable - - 5,398,000 1,566,768
Total noncurrent liabilities - 11,564 5,398,000 1,566,768 Total liabilities 10,495 153,991 6,363,000 2,297,583
DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources related to leases - - - -
Total deferred inflows of resources - - - -
NET POSITION:
Net investment in capital assets 4,096,516 511,871 - -
Unrestricted (deficit) 6,025,944 3,823,614 (1,767,704) 150,445 Total net position $ 4,335,485 10,122,460 $ (1,767,704) $ 150,445 $ (Continued)
City of Gilroy
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
162
11.6 p. 417 of 478
Facility Information Personnel
Services Technologies Benefits Total
ASSETS
Current assets:
Cash and investments 1,441,123 $ 2,177,169 1,621,759 $ 19,797,790 $ Accounts receivable 51,057 - - 54,173
Interest receivable 1,462 - - 1,462
Lease receivable - current 96,347 - - 96,347
Prepaid items - 110,601 - 110,601
Total current assets 2,287,770 1,589,989 1,621,759 20,060,373 Noncurrent assets:
Interfund loans receivable - - - 2,496,513
Lease receivable -noncurrent 654,102 - - 654,102
Capital assets:
Nondepreciable 368,739 2,468,301 - 2,899,734
Depreciable and amortizable, net - 1,946,724 - 6,492,417 Total capital assets 368,739 4,415,025 - 9,392,151
Total noncurrent assets 4,415,025 1,022,841 - 12,542,766 Total assets 6,702,795 2,612,830 1,621,759 32,603,139
LIABILITIES
Current Liabilities:
Accounts payable 149,643 301,567 16,888 583,978
Accrued liabilities 44,725 42,256 1,462,409 1,598,810
Interest payable - 5,447 - 5,447
Deposit payable 4,277 - - 4,277
Compensated absences, current portion 3,544 2,969 - 7,798 Long term debt, current portion - 311,213 - 311,213
Claims payable, current portion - - - 1,682,152
Total current liabilities 663,452 202,189 1,479,297 4,193,675 Noncurrent liabilities:
Compensated absences, noncurrent portion 31,900 26,721 - 70,185 Long term debt, noncurrent portion - 313,880 - 313,880
Claims payable - - - 6,964,768
Total noncurrent liabilities 340,601 31,900 - 7,348,833 Total liabilities 1,004,053 234,089 1,479,297 11,542,508
DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources related to leases 694,822 - - 694,822 Total deferred inflows of resources - 694,822 - 694,822 NET POSITION:
Net investment in capital assets 368,739 4,415,025 - 9,392,151 Unrestricted (deficit) 1,315,180 1,283,717 142,462 10,973,658 Total net position $ 5,698,742 1,683,919 $ 142,462 $ 20,365,809 $ (Concluded)
City of Gilroy
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2023
163
11.6 p. 418 of 478
Fleet Equipment Workers' General
Services Outlay Compensation Liability
OPERATING REVENUES:
Charges for services 2,422,110 $ 685,718 $ 1,500,000 $ 1,380,224 $ Miscellaneous 18,354 - - 153,876
Total operating revenues 685,718 2,440,464 1,500,000 1,534,100 OPERATING EXPENSES:
Current:
Operations 1,772,050 - 17,260 -
Depreciation/Amortization expense 530,385 112,032 - -
Administration 75,069 - 129,581 20,447
Claims and judgments - - 195,641 384,127
Insurance premiums - - 323,582 1,989,613
Total operating expenses 112,032 2,377,504 666,064 2,394,187 OPERATING INCOME (LOSS) 573,686 62,960 833,936 (860,087) NONOPERATING REVENUES:
Investment income 101,127 59,871 65,505 29,318
Interest expense - - - -
Loss on disposal of capital assets (47) (4,404) - -
Total nonoperating revenues 55,467 101,080 65,505 29,318 INCOME (LOSS) BEFORE TRANSFERS 629,153 164,040 899,441 (830,769) CHANGES IN NET POSITION 629,153 164,040 899,441 (830,769) NET POSITION(DEFICIT):
Beginning of year, as restated 9,958,420 3,706,332 (2,667,145) 981,214 End of year 10,122,460 $ 4,335,485 $ (1,767,704) $ 150,445 $ (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position 164
11.6 p. 419 of 478
Facility Information Personnel
Services Technologies Benefits Total
OPERATING REVENUES:
Charges for services 2,292,307 $ 2,912,645 $ 374,756 $ 11,567,760 $ Miscellaneous 348,237 - - 520,467
Total operating revenues 2,912,645 2,640,544 374,756 12,088,227 OPERATING EXPENSES:
Current:
Operations 3,092,180 2,625,194 232,598 7,739,282
Depreciation/Amortization expense - 557,288 - 1,199,705 Administration 7,637 13,463 - 246,197
Claims and judgments 17,881 - - 597,649
Insurance premiums - - - 2,313,195
Total operating expenses 3,195,945 3,117,698 232,598 12,096,028 OPERATING INCOME (LOSS) (283,300) (477,154) 142,158 (7,801) NONOPERATING REVENUES:
Investment income 40,494 47,781 - 344,096
Interest expense - (15,419) - (15,419)
Loss on disposal of capital assets - - - (4,451)
Total nonoperating revenues 32,362 40,494 - 324,226
INCOME (LOSS) BEFORE TRANSFERS (250,938) (436,660) 142,158 316,425 CHANGES IN NET POSITION (250,938) (436,660) 142,158 316,425 NET POSITION(DEFICIT):
Beginning of year, as restated 2,120,579 5,949,680 304 20,049,384 End of year 1,683,919 $ 5,698,742 $ 142,462 $ 20,365,809 $ (Concluded)
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) For the Year Ended June 30, 2023
Internal Service Funds
165
11.6 p. 420 of 478
Fleet Equipment Workers' General
Services Outlay Compensation Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 685,718 2,440,464 $ 1,500,000 $ 1,531,014 $ Cash paid to suppliers for goods and services - (1,744,899) (147,406) (403,739) Cash paid to employees for services - (13,986) - -
Cash paid for insurance claims - - (825,223) (1,727,977) Net cash provided by (used in) operating activities 685,718 681,579 527,371 (600,702)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds - 252,117 - -
Net cash provided by noncapital financing activities - 252,117 - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (1,053,238) - -
Proceeds from sale of capital assets - 46,453 - -
Issuance of new subscription - - - -
Principal paid - - - -
Interest paid - - - -
Net cash (used in) capital and related
financing activities - (1,006,785) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 59 101,127 65 ,871 29 ,505 ,318
Net cash provided by investing activities 59 101,127 65 ,871 29 ,505 ,318 Net change in cash and cash equivalents 745,589 28,038 592,876 (571,384)
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION:
Beginning of year 3,088,520 3,655,384 4,002,420 3,016,296 End of year $ 3,834,109 3,683,422 $ 4,595,296 $ 2,444,912 $ CASH AND CASH EQUIVALENTS:
Cash and investments $ 3,834,109 3,683,422 $ 4,595,296 $ 2,444,912 $ Total cash and cash equivalents $ 3,834,109 3,683,422 $ 4,595,296 $ 2,444,912 $ Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) $ 573,686 62,960 $ 833,936 $ (860,087) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense 112,032 530,385 - - Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - - - (3,116) (Increase)/decrease in lease receivables - - - -
(Increase)/decrease in inventory - - - -
(Increase)/decrease in prepaid items - - - -
Increase/(decrease) in accounts payable - 87,322 (565) 835 Increase/(decrease) in accrued liabilities - 10,182 - 30 Increase/(decrease) in deposit payable - - - -
Increase/(decrease) in compensated absences - (9,270) - - Increase/(decrease) in claims payable - - 261 (306,000) ,636 Increase/(decrease) in deferred inflows of resources lease related - - - - Net cash provided by (used in) operating activities $ 685,718 681,579 $ 527,371 $ (600,702) $ (Continued)
City of Gilroy
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
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Facility Information Personnel
Services Technologies Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 2,912,645 2,588,118 $ 374,765 $ 12,032,724 $ Cash paid to suppliers for goods and services (2,620,113) (3,106,767) (109,606) (8,132,530) Cash paid to employees for services (1,167) (118,314) - (133,467) Cash paid for insurance claims - (17,881) - (2,571,081) Net cash provided by (used in) operating activities 291,365 (654,844) 265,159 1,195,646
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds - - - 252,117
Net cash provided by noncapital financing activities - - - 252,117
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (1,124,189) (23,529) - (2,200,956) Proceeds from sale of capital assets - - - 46,453
Issuance of new subscription 165,908 - - 165,908
Principal paid (408,524) - - (408,524)
Interest paid (9,972) - - (9,972)
Net cash (used in) capital and related
financing activities (23,529) - (1,376,777) (2,407,091) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 47 39,778 - ,781 343 ,380
Net cash provided by investing activities 47 39,778 - ,781 343 ,380 Net change in cash and cash equivalents (1,037,631) (638,595) 265,159 (615,948)
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION:
Beginning of year 3,214,800 2,079,718 1,356,600 20,413,738 End of year $ 2,177,169 1,441,123 $ 1,621,759 $ 19,797,790 $ CASH AND CASH EQUIVALENTS:
Cash and investments $ 2,177,169 1,441,123 $ 1,621,759 $ 19,797,790 $ Total cash and cash equivalents $ 2,177,169 1,441,123 $ 1,621,759 $ 19,797,790 $ Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) $ (283,300) (477,154) $ 142,158 $ (7,801) $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense 557,288 - - 1,199,705 Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - (27,484) 9 (30,591) (Increase)/decrease in lease receivables 49,370 49,370
(Increase)/decrease in inventory - - - -
(Increase)/decrease in prepaid items - - (24,926) (24,926) Increase/(decrease) in accounts payable 43,470 (60,768) 1,117 71,411 Increase/(decrease) in accrued liabilities 2,028 (60,863) 121,875 73,252 Increase/(decrease) in deposit payable - 1 - 1
Increase/(decrease) in compensated absences (3,633) - (3,195) (16,098) Increase/(decrease) in claims payable - - - (44,364)
Increase/(decrease) in deferred inflows of resources lease related - (74,313) - (74,313) Net cash provided by (used in) operating activities $ 291,365 (654,844) $ 265,159 $ 1,195,646 $ (Concluded)
City of Gilroy
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
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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 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
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170
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Senior
Advisory Highway 152
Board Series 2018 Total
Assets:
Cash and investments 9,090 $ 831,309 $ 840,399 $
Cash and investments with fiscal agent - 299,364 299,364 Account receivables 9,549 - 9,549
Total Assets 1,140,222 9,090 1,149,312
Net Position:
Restricted for:
Individuals, organizations, and other governments 1,140,222 9,090 1,149,312 Total Net Position $ 1,140,222 9,090 $ 1,149,312 $
Custodial Funds
City of Gilroy
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
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Senior
Advisory Highway 152
Board Series 2018 Total
ADDITIONS:
Taxes $ 932,693 - $ 932,693 $
Investment income 15,127 146 15,273
Other income - 58 58
Total additions 947,820 204 948,024
DEDUCTIONS
General administration 43,453 43,453 -
Payments on conduit bonds - principal 701,610 - 701,610 Payments on conduit bonds - interest 184,083 - 184,083
Total deductions 929,146 - 929,146
CHANGE IN NET POSITION 18,674 204 18,878
NET POSITION:
Beginning of year 1,121,548 8,886 1,130,434
End of year $ 1,140,222 9,090 $ 1,149,312 $
For the Year Ended June 30, 2023
Custodial Funds
City of Gilroy
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds
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STATISTICAL SECTION
11.6 p. 428 of 478
11.6 p. 429 of 478
Contents Page
Financial Trends 174-183
Revenue Capacity 184-195
Debt Capacity 196-203
Demographic and Economic Information 205-206
Operating Information 207-211
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.
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2014 2015 2016 2017 2018
Governmental Activities:
Net investment in capital assets 162,950,296 $ 167,625,947 $ 159,684,128 $ 154,863,285 $ 159,069,886 $ Restricted 24,277,233 22,320,085.00 35,564,991 41,636,040 48,731,281 Unrestricted (deficit) 28,892,199 (26,524,001) (25,032,197) (25,229,815) (36,193,491) Total governmental activities net position 216,119,728 163,422,031 170,216,922 171,269,510 171,607,676 Business-type Activities:
Net investment in capital assets 88,728,174 90,335,349 90,917,108 88,183,287 87,336,604 Restricted - - - - -
Unrestricted 85,736,094 84,832,390 88,668,400 93,612,020 98,375,675 Total business-type activities net position 174,464,268 175,167,739 179,585,508 181,795,307 185,712,279 Primary Government:
Net investment in capital assets 251,678,470 257,961,296 250,601,236 243,046,572 246,406,490 Restricted 24,277,233 22,320,085 35,564,991 41,636,040 48,731,281 Unrestricted 114,628,293 58,308,389 63,636,203 68,382,205 62,182,184 Total primary government net position 390,583,996 $ 338,589,770 $ 349,802,430 $ 353,064,817 $ 357,319,955 $ Fiscal Year
City of Gilroy
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
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2019 2020 2021 2022 2023
Governmental Activities:
Net investment in capital assets 156,750,373 $ 151,904,792 $ 149,891,568 $ 147,079,194 $ 149,484,869 $ Restricted 49,688,804 57,137,761 57,570,568 71,627,654 2,696,317 Unrestricted (deficit) (37,759,850) (42,674,183) (42,545,831) (28,023,535) 9,788,254 Total governmental activities net position 168,679,327 166,368,370 164,916,305 190,683,313 161,969,440 Business-type Activities:
Net investment in capital assets 91,134,932 86,503,324 83,119,598 73,389,328 56,102,435 Restricted - - - - -
Unrestricted 100,053,259 97,543,664 99,198,302 109,250,688 130,281,582 Total business-type activities net position 191,188,191 184,046,988 182,317,900 182,640,016 186,384,017 Primary Government:
Net investment in capital assets 247,885,305 238,408,116 233,011,166 220,468,522 205,587,304 Restricted 49,688,804 57,137,761 57,570,568 71,627,654 75,520,059 Unrestricted 62,293,409 54,869,481 56,652,471 81,227,153 100,734,373 Total primary government net position 359,867,518 $ 350,415,358 $ 347,234,205 $ 373,323,329 $ 381,841,736 $ Fiscal Year
City of Gilroy
Net Position By Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
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2014 2015 2016 2017 2018
Expenses:
Governmental activities:
General government $ 3,619,582 3,795,033 $ 3,900,226 $ 6,437,408 $ 7,315,065 $ Public safety 30,273,444 29,696,344 31,020,245 33,393,829 35,591,790 Community development 15,901,215 14,824,460 21,413,283 19,167,193 19,211,323 Public works 7,726,938 7,807,765 8,217,318 9,654,957 8,978,597 Recreation services - - - - -
Interest and other charges 3,744,396 3,406,855 3,327,992 3,256,733 3,147,606 Total governmental activities expenses 59,787,171 61,008,861 67,879,064 71,233,760 74,920,741 Business-type activities
Sewer 9,806,990 9,929,622 12,298,662 12,060,236 11,538,388 Water 8,329,710 8,642,660 8,370,320 9,197,426 9,937,768 Total business-type activities expenses 18,572,282 18,136,700 20,668,982 21,257,662 21,476,156 Total primary government expenses 78,359,453 $ 79,145,561 $ 88,548,046 $ 92,491,422 $ 96,396,897 $ Program revenues:
Governmental activities:
Charges for services:
General government $ 2,096,137 1,415,106 $ 1,651,713 $ 3,087,335 $ 3,280,977 $ Public safety 1,030,410 897,059 1,146,593 1,439,418 959,277 Community development 7,385,391 5,434,764 6,145,791 5,207,571 6,430,321 Public works 810,503 886,988 978,780 986,582 977,834
Recreation services - - - - -
Operating grants and contributions 15,057,119 13,109,933 22,838,535 15,860,767 19,389,757 Capital grants and contributions 3,157,642 8,999,636 3,820,892 5,438,560 10,319,300 Total governmental activities program revenues 26,772,193 33,508,495 36,582,304 32,020,233 41,357,466 Business-type activities:
Charges for services:
Sewer - 10,359,334 11,984,798 12,833,030 12,961,285
Water - 8,640,784 7,330,300 9,156,082 11,343,036
Operating grants and contributions - - - - -
Capital grants and contributions 179,707 - 5,086,464 1,172,844 2,330,335 Total business-type activities program revenues 19,179,825 - 24,401,562 23,161,956 26,634,656 Total primary government program revenues 45,952,018 $ 33,508,495 $ 60,983,866 $ 55,182,189 $ 67,992,122 $ Net revenue (expense):
Governmental activities (33,014,978) $ (27,500,366) $ (31,296,760) $ (39,213,527) $ (33,563,275) $ Business-type activities 607,543 (18,136,700) 3,732,580 1,904,294 5,158,500 Total primary government net expense (32,407,435) $ (45,637,066) $ (27,564,180) $ (37,309,233) $ (28,404,775) $ City of Gilroy
Fiscal Year
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
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2019 2020 2021 2022 2023
Expenses:
Governmental activities:
General government $ 6,131,791 7,696,445 $ 7,315,868 $ 2,696,317 $ 10,440,465 $ Public safety 40,088,865 37,837,438 40,797,962 9,788,254 42,789,395 Community development 8,556,959 18,348,409 7,147,532 7,689,175 6,999,373 Public works 9,526,627 23,525,423 16,862,660 13,840,272 17,285,317 Recreation services - - 1,779,121 1,600,210 1,755,454
Interest and other charges 3,226,849 2,431,588 2,081,420 2,089,473 2,199,547 Total governmental activities expenses 76,635,768 80,734,626 75,984,563 37,703,701 81,469,551 Business-type activities
Sewer 14,668,434 14,044,716 15,820,944 12,678,990 12,134,168 Water 12,603,780 11,777,220 16,435,598 10,930,989 11,574,875 Total business-type activities expenses 25,821,936 27,272,214 32,256,542 23,609,979 23,709,043 Total primary government expenses 102,457,704 $ 108,006,840 $ 108,241,105 $ 61,313,680 $ 105,178,594 $ Program revenues:
Governmental activities:
Charges for services:
General government $ 3,550,758 3,726,486 $ 2,815,647 $ 4,595,133 $ 4,645,730 $ Public safety 1,188,951 1,234,017 1,242,281 476,918 713,565 Community development 3,909,360 6,624,477 4,185,811 3,346,864 3,513,190 Public works 1,009,235 715,299 3,593,959 1,317,695 1,122,432 Recreation services - - 223,154 599,265 561,859
Operating grants and contributions 13,146,274 14,247,635 16,482,904 15,464,192 8,683,432 Capital grants and contributions 2,649,021 1,931,458 2,000,357 18,227,036 7,203,431 Total governmental activities program revenues 28,389,510 25,543,461 30,544,113 44,027,103 26,443,639 Business-type activities:
Charges for services:
Sewer 12,872,189 12,904,657 12,702,398 12,912,113 13,037,892 Water 14,590,973 12,294,119 14,830,153 13,959,847 13,286,485 Operating grants and contributions - - - 414,952 47,697 Capital grants and contributions 4,160,510 2,439,117 2,511,059 566,140 561,591 Total business-type activities program revenues 29,359,286 29,902,279 30,043,610 27,853,052 26,933,665 Total primary government program revenues 57,748,796 $ 55,445,740 $ 60,587,723 $ 71,880,155 $ 53,377,304 $ Net revenue (expense):
Governmental activities (48,246,258) $ (55,191,165) $ (45,440,450) $ 6,323,402 $ (55,025,912) $ Business-type activities 3,537,350 2,630,065 (2,212,932) 4,243,073 3,224,622 Total primary government net expense (44,708,908) $ (52,561,100) $ (47,653,382) $ 10,566,475 $ (51,801,290) $ City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
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2014 2015 2016 2017 2018
General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 9,728,458 $ 10,862,568 $ 11,468,510 $ 12,278,553 $ 13,161,002 $ Sales tax 14,423,130 15,858,910 17,884,735 17,768,469 18,827,189 Transient occupancy taxes 1,234,798 1,501,837 1,676,691 1,709,332 1,722,355 Franchise tax 1,408,045 1,463,770 1,569,059 1,623,951 1,713,690 Other taxes 4,759,067 4,905,868 5,116,588 5,264,486 5,192,899 Investment income 630,095 619,139 647,057 900,622 1,190,732 State motor vehicle in lieu 22,072 21,479 21,385 24,715 29,444 Other 632,113 164,321 392,815 15,188 571,340
Transfers (678,707) (689,011) (685,189) (305,505) 1,241,528 Total governmental activities 32,159,071 34,708,881 38,091,651 39,279,811 43,650,179 Business-type activities:
Investment and rental income - - - - -
Other - - - - -
Transfers 678,707 689,011 685,189 305,505 (1,241,528)
Total business-type activities 678,707 689,011 685,189 305,505 (1,241,528) Total primary government 32, $ 35,397,892 837,778 $ 38,776,840 $ 39,585,316 $ 42,408,651 $ Changes in net position:
Governmental activities (855,907) $ 7,208,515 $ 6,794,891 $ 66,284 $ 10,086,904 $ Business-type activities 1,286,250 3,800,429 4,417,769 2,209,799 3,916,972 Total primary government $ 11,008,944 430,343 $ 11,212,660 $ 2,276,083 $ 14,003,876 $ Net Position (Net Assets), Beginning
Beginning Fund Balance Restatement (1) 327,580,826 390,153,653 338,589,770 348,802,430 343,316,059 Changes in Net Position (Net Assets) 430,343 11,008,944 11,212,660 2,276,083 14,003,876 Net Position (Net Assets), Ending $ 338,589,770 390,583,996 $ 349,802,430 $ 351,078,513 $ 357,319,935 $ (1) Net Position, as restated in FY2023, 2020, 2018, and 2015 Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
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2019 2020 2021 2022 2023
General revenues and other changes in net position:
Governmental Activities:
Taxes: 2,696,317
Property taxes 14,476,481 $ 15,595,639 $ 17,016,855 $ 9,788,254 $ 21,600,130 $ Sales tax 20,186,105 17,233,882 18,584,534 23,216,109 22,936,208 Transient occupancy taxes 1,771,882 1,237,812 1,105,300 1,545,721 1,754,615 Franchise tax 1,669,817 1,855,622 1,732,613 1,874,046 2,198,150 Other taxes 5,093,813 5,667,201 5,030,153 6,107,309 6,955,492 Investment income 2,567,147 2,039,471 502,770 (418,588) 3,438,121 State motor vehicle in lieu 26,695 - - - -
Other 166,316 127,479 644,291 3,345,996 1,417,790
Transfers (640,347) (447,847) (641,121) (74,279) (878,113) Total governmental activities 45,317,909 43,309,259 43,975,395 45,384,568 59,422,393 Business-type activities:
Investment and rental income 1,298,215 1,169,133 (157,277) (4,011,115) (365,320) Other - - - 15,879 6,586
Transfers 640,347 447,847 641,121 74,279 878,113
Total business-type activities 1,938,562 1,616,980 483,844 (3,920,957) 519,379 Total primary government 47, $ 44,926,239 256,471 $ 44,459,239 $ 41,463,611 $ 59,941,772 $ Changes in net position:
Governmental activities (3,209,094) $ (11,881,906) $ (1,465,055) $ 51,707,970 $ 4,396,481 $ Business-type activities 5,475,912 4,247,045 (1,729,088) 322,116 3,744,001 Total primary government 2, $ (7,634,861) 266,818 $ (3,194,143) $ 52,030,086 $ 8,140,482 $ Net Position (Net Assets), Beginning
Beginning Fund Balance Restatement (1) 358,050,219 357,319,955 350,428,348 347,234,205 373,701,254 Changes in Net Position (Net Assets) 2,266,818 (7,634,861) (3,194,143) 52,030,086 8,140,482 Net Position (Net Assets), Ending $ 350,415,358 359,586,773 $ 347,234,205 $ 399,264,291 $ 381,841,736 $ (1) Net Position, as restated in FY2023, 2020, 2018, and 2015 Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
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2014 2015 2016 2017 2018
General fund:
Nonspendable 52,592 $ 74,622 $ 84,923 $ 74,217 $ 126,965 $ Restricted - - - - -
Committed - - - - -
Assigned - - - - -
Unassigned 22,291,553 21,316,940 22,202,316 24,354,609 25,475,105 Total general fund 22,344,145 $ 21,391,562 $ 22,287,239 $ 24,428,826 $ 25,602,070 $ All other governmental funds:
Nonspendable 9,265 $ 9,265 $ 8,670 $ 9,470 $ 25,570 $
Restricted 41,474,238 40,117,010 44,922,496 50,775,875 55,248,281 Assigned 576,889 544,284 2,827,521 1,588,907 1,448,954
Unassigned (deficit) (11,866,882) (12,884,818) (7,883,587) (5,761,804) (2,841,776) Total all other governmental funds 30,193,510 $ 27,785,741 $ 39,875,100 $ 46,612,448 $ 53,881,029 $ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
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2019 2020 2021 2022 2023
General fund:
Nonspendable 76,000 $ 126,915 $ 47,874 $ 739 $ 23,750 $ Restricted - - - 1,983,396 2,696,317
Committed - - - 5,572,376 9,788,254
Assigned - - - - -
Unassigned 27,683,870 14,731,555 19,585,369 30,349,205 33,190,870 Total general fund 27,759,870 $ 14,858,470 $ 19,633,243 $ 37,905,716 $ 45,699,191 $ All other governmental funds:
Nonspendable 1,000 $ 706,754 $ - $ - $ - $
Restricted 57,445,219 57,421,683 58,391,239 67,727,936 71,140,553 Assigned 1,483,818 5,368,008 5,276,579 5,494,298 3,603,942 Unassigned (deficit) (4,206,362) (6,380,638) (5,397,542) - (1,205,740) Total all other governmental funds 54,723,675 $ 57,115,807 $ 58,270,276 $ 73,222,234 $ 73,538,755 $ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
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2014 2015 2016 2017 2018
Revenues:
Taxes 33,902,225 $ 37,190,336 $ 40,177,903 $ 41,350,739 $ 43,512,402 $ Licenses and permits 2,088,024 2,847,912 3,720,755 2,713,733 2,751,137 Intergovernmental 5,235,608 3,260,688 4,291,272 3,748,000 4,047,728 Charges for services 17,081,714 17,396,590 24,960,535 18,973,863 22,820,605 Developer impact fees - - - - -
Fines 226,220 281,580 266,163 293,899 208,305
Investment income (loss) 697,612 600,960 608,641 762,671 1,084,408 Miscellaneous 1,464,470 2,128,737 2,059,106 1,604,397 1,635,888 Total revenues 60,695,873 63,706,803 76,084,375 69,447,302 76,060,473 Expenditures:
General government 4,073,708 4,025,604 4,532,241 4,906,824 5,103,946 Public safety 27,448,432 28,845,371 29,867,361 30,830,873 31,781,515 Public works 6,072,624 6,322,864 6,764,060 7,231,274 7,723,166 Recreation services - - - - -
Community development 10,031,035 16,393,573 14,675,204 11,052,313 14,993,509 Capital outlay - - - - -
Debt service:
Principal retirement 25,745,000 2,215,000 2,305,000 2,459,619 2,558,818 Interest 3,525,898 3,557,829 3,479,710 3,410,441 3,302,252 Bond issuance costs 275,515 2,582 - - -
Total expenditures 77,172,212 61,362,823 61,623,576 59,891,344 65,463,206 Excess of revenues over
(under) expenditures (16,476,339) 2,343,980 14,460,799 9,555,958 10,597,267 Other Financing Sources (Uses):
Transfers in 3,574,115 4,318,330 6,803,782 4,233,745 4,503,781 Transfers out (7,154,454) (11,012,940) (8,521,471) (4,910,768) (6,659,253) Issuance of loan/notes - 959,229 241,926 - -
Issuance of bonds 23,120,000 - - - -
Payment to refunded bond escrow - - - - -
Payment to bond escrow agent - - - - -
Premium on bonds 1,138,052 - - - -
Total other financing sources (uses) 20,677,713 (5,735,381) (1,475,763) (677,023) (2,155,472) Net Change in fund balances 4,201,374 $ (3,391,401) $ 12,985,036 $ 8,878,935 $ 8,441,795 $ Fund balances - July 1 48,336,281 52,568,704 49,177,303 62,162,339 71,041,274 Fund balances - June 30 52,537,655 $ 49,177,303 $ 62,162,339 $ 71,041,274 $ 79,483,069 $ Debt service as a percentage
of noncapital expenditures 39.37% 10.81% 9.52% 9.97% 9.58% Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
182
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2019 2020 2021 2022 2023
Revenues:
Taxes 51,483,855 $ 44,269,937 $ 45,916,497 $ 53,037,707 $ 53,901,735 $ Licenses and permits 3,487,338 1,776,651 2,278,304 2,672,186 2,696,317 Intergovernmental 3,913,484 5,473,529 6,612,274 14,805,279 9,788,254 Charges for services 11,501,828 13,951,822 17,484,867 7,380,631 7,621,129 Developer impact fees - - - 18,227,036 7,021,901
Fines 239,873 282,535 231,688 262,403 255,359
Investment income (loss) 1,247,543 1,884,149 358,452 (541,243) 3,094,097 Miscellaneous 1,990,459 1,348,130 2,867,269 4,023,213 2,395,534 Total revenues 73,864,380 68,986,753 75,749,351 99,867,212 86,774,326 Expenditures:
General government 5,760,831 6,361,042 5,931,022 7,949,662 9,335,054 Public safety 34,062,421 36,867,887 35,856,183 37,687,794 40,547,210 Public works 7,831,193 7,897,645 7,231,722 6,094,830 6,073,851 Recreation services - - 1,702,666 1,463,448 1,755,215
Community development 15,421,483 19,143,243 5,523,912 5,535,526 5,682,180 Capital outlay - - 6,243,057 2,639,733 12,146,904
Debt service:
Principal retirement 2,654,708 2,986,212 2,817,325 2,820,129 2,961,464 Interest 3,448,556 3,011,707 2,784,374 2,377,338 2,097,145 Bond issuance costs 112,903 - - - 169,268
Total expenditures 69,292,095 76,267,736 68,090,261 66,568,460 80,768,291 Excess of revenues over
(under) expenditures 4,572,285 (7,280,983) 7,659,090 33,298,752 6,006,035 Other Financing Sources (Uses):
Transfers in 4,236,075 8,937,984 24,306,099 6,603,536 6,325,297 Transfers out (5,876,422) (12,905,997) (24,953,804) (6,677,815) (7,203,410) Issuance of loan/notes - - - - -
Issuance of bonds - 19,087,551 16,459,825 - 14,587,831
Payment to refunded bond escrow - (19,350,000) (17,555,000) - (15,352,976) Payment to bond escrow agent (8,565,000) - - - -
Premium on bonds 8,633,538 - - - -
Total other financing sources (uses) (1,571,809) (4,230,462) (1,742,880) (74,279) (1,643,258) Net Change in fund balances 3,000,476 $ (11,511,445) $ 5,916,210 $ 33,224,473 $ 4,362,777 $ Fund balances - July 1 79,483,069 83,485,722 71,987,267 77,903,477 111,127,950 Fund balances - June 30 82,483,545 $ 71,974,277 $ 77,903,477 $ 111,127,950 $ 115,490,727 $ Debt service as a percentage
of noncapital expenditures 8.99% 8.67% 8.79% 8.15% 7.01% (modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
183
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Fiscal Year
CATEGORY 2011 2014 2015 2016 2017 2018
Outlet Center $2,552,694 2,867,431 $ 2,899,778 $ 2,747,030 $ 2,669,216 $ 2,571,713 $ Newman Development 2,070,313 2,230,855 2,332,215 2,426,698 2,500,961 2,529,804 Regency Center 923,509 946,073 965,112 999,738 968,005 987,417 Downtown Core 191,131 296,354 316,595 356,687 398,344 385,497 General Retail 5,737,647 6,340,713 6,513,700 6,530,153 6,536,526 6,474,431 Auto Dealers 1,649,758 871,311 2,136,541 2,633,013 3,224,719 3,691,038 Service Stations 1,355,605 1,442,888 1,292,736 1,094,398 1,064,232 1,290,582 Transportation 2,226,916 3,092,646 3,429,277 3,727,411 4,288,951 4,981,620 Others 3,234,205 3,697,010 3,695,108 4,018,337 4,263,541 4,632,323 Allocation from State and County 1,292,761 1,621,404 2,220,825 3,608,834 2,679,451 2,152,877 TOTALS: $12,820,172 14,423,130 $ 15,858,910 $ 17,884,735 $ 17,768,469 $ 18,241,251 $ Population 49,316 52,413 53,000 55,170 55,936 55,615
Sales Tax Per Capita 240 275 299 324 318 328
City of Gilroy
Sales Tax by Category
Last Eleven Fiscal Years
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities Fiscal Year
0 50
100
150
200
250
300
350
400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
0 5,000
10,000
15,000
20,000
25,000
Others State/County Gen. Retail Transportation Per Capita 184
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CATEGORY 2019 2020 2021 2022 2023
Outlet Center $ 1,739,806 2,464,617 $ 1,869,275 $ 2,042,775 $ 2,009,201 $ Newman Development 2,643,207 2,743,665 2,955,455 3,251,290 3,243,837 Regency Center 896,599 1,004,376 1,000,140 1,028,435 1,032,918 Downtown Core 472,427 505,600 512,427 547,587 502,300
General Retail 5,752,039 6,718,258 6,337,297 6,870,087 6,788,256 Auto Dealers 3,056,022 3,855,166 2,446,254 3,609,865 3,890,947 Service Stations 1,129,189 1,298,298 1,085,319 1,572,748 1,527,970 Transportation 4,185,211 5,153,464 3,531,573 5,182,613 5,418,917 Others 4,294,454 4,418,367 4,580,258 5,317,890 4,929,974 Allocation from State and County 3,002,179 3,896,016 3,867,949 4,238,018 3,892,813 TOTALS: $ 17,233,883 20,186,105 $ 18,317,077 $ 21,608,608 $ 21,029,959 $ Population 55,928 57,084 59,920 59,269 60,078
Sales Tax Per Capita 361 302 306 365 350
City of Gilroy
Sales Tax by Category (Continued)
Last Eleven Fiscal Years
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities Fiscal Year
185
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186
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Agency 2011 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
7.250% 6.500% 6.500% 6.250% 6.000% 6.000% 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% 0.250%
0.750% 0.750% 0.750% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 269631700.000% - 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 978825400.000% -
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% 0.500% 0.500% - 0.125% 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%
2020 Peninsula Corridor JPB Retail
Transactions and Use Tax 0.125% 0.125%
Total 9.250% 8.750% 8.750% 8.750% 9.000% 9.000% 9.000% 9.000% 9.000% 9.125% 1248457108.000% 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%200000000.00% 400000000.00% 600000000.00% 800000000.00% 1000000000.00% 1200000000.00% 1400000000.00% 2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
Gilroy
187
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Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations 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 Freeway Toyota Of Gilroy Auto Sales - New Coach Stores Apparel Stores Gilroy Buick GMC Auto Sales - New Costco Wholesale Department Stores Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Chevrolet Cadillac Auto Sales - New Gilroy Chrysler Dodge Jeep Ram Auto Sales - New Gilroy Gas & Mini-Mart Service Stations Gilroy Motorcycle Center Misc. Vehicle Sales Gilroy Toyota Auto Sales - New Happy Daze RV's Misc. Vehicle Sales Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail JN Abbott Distributor Energy Sales Hyundai of Gilroy Auto Sales - New Kohl's Department Stores Department Stores Lowe's Home Centers Bldg.Matls-Retail Lowe's Home Centers Bldg.Matls-Retail McDonald's Restaurants Restaurants McDonald's Restaurants Restaurants 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 See Grins RV Misc. Vehicle Sales South County Chrysler-Jeep-Dodge Auto Sales - New Shell Service Stations Service Stations South County Nissan Auto Sales - New Target Stores Department Stores Target Stores Department Stores Tesla Auto Sales - New The Garlic Farm Travel Center Service Stations Union 76 Service Stations Service Stations TV's Gas & Foodmart Service Stations Vans Apparel Stores Union 76 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
2023 2014
188
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Fiscal
Year
End Local Secured*
Homeowner
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
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% 2021-22 9,968,898,669 46,512,200 9,922,386,469 27,039,704 293,294,693 10,242,720,866 0.097037 14,183,999,567 1.384788 72.21% 2022-23 10,644,717,775 45,712,800 10,599,004,975 39,839,704 289,253,563 10,928,098,242 0.097037 17,373,962,605 1.589843 62.90% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2021-22 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.
City of Gilroy
Citywide Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
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. 189
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190
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Category 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Residential 6,316,795,853 $ 6,846,995,669 $ 7,292,373,081 $ 7,766,498,649 $ 8,150,395,267 $ 8,690,685,653 $ Commercial 848,468,930 899,654,270 931,059,983 989,793,738 1,013,695,555 1,051,729,768 Industrial 483,919,877 479,091,993 538,635,466 667,191,707 638,120,876 667,277,047 Vacant 162,759,148 - 216,844,260 163,403,099 192,863,417 262,155,390 Professional 101,593,308 17,961,578 108,709,436 110,337,229 116,626,048 111,984,310 Institutional 109,350,727 112,041,055 111,348,784 65,615,240 90,554,109 91,711,842 Agriculture 55,688,053 47,135,427 52,895,647 38,226,087 38,372,143 47,049,922 Unitary 39,330,836 38,939,704 32,539,704 29,739,704 27,039,704 39,839,704 Public 17,729,263 104,675,187 23,763,391 31,201,356 37,443,425 37,469,354 Transportation 2,107,545 193,663,876 28,585,319 28,569,765 27,777,083 29,389,066 Recreational 16,969,672 22,525,565 23,001,970 22,973,251 23,200,859 26,346,641 Social 18,281,904 18,604,008 19,463,964 19,888,529 20,081,552 20,568,947 Forestry 1,773,940 6,830,161 6,966,865 7,106,317 7,180,104 7,323,632 Unknown - 2,149,694 - - - -
Gross Secured Value 8,174,769,056 $ 8,790,268,187 $ 9,386,187,870 $ 9,940,544,671 $ 10,383,350,142 $ 11,083,531,276 $ Unsecured Value 265,619,082 260,824,323 261,877,511 272,030,637 297,421,158 289,253,563 Less Exemptions 358,121,149 311,686,590 404,303,395 404,961,187 438,050,434 444,686,597 Net Taxable Value 8,128,701,548 $ 8,692,971,361 $ 9,243,761,986 $ 9,807,614,121 $ 10,242,720,866 $ 10,928,098,242 $ 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 Five Fiscal Year
191
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2008-09 2009-10 2010-11 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 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 1.000000 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 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.000000 0.012200 0.009500 0.004700 0.005100 0.003500 0.009100 0.008800 County Housing Bond 2016 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Gilroy City Bond 2008 0.000000 0.011600 0.037500 0.036500 0.036500 0.034000 0.034000 0.029000 Gilroy Unified School 2002 0.037500 0.047200 0.054500 0.054500 0.057100 0.058000 0.056600 0.052200 Gilroy Unified 11/2008 0.000000 0.000000 0.000000 0.047900 0.047200 0.056400 0.059900 0.054900 Gilroy Unified 2016 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Gavilan Community College 04 0.013800 0.016300 0.019900 0.021700 0.025700 0.024800 0.023900 0.022600 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified 0.000000 0.070500 0.070500 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.035200 0.035200 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.005900 0.007100 0.007000 0.006300 0.006900 0.007000 0.006500 0.005700
0.098400 0.241300 0.275300 0.212800 0.219700 0.224900 0.231200 0.214400 TOTAL TAX RATE 1.098400 1.241300 1.275300 1.212800 1.219700 1.224900 1.231200 1.214400 Source: Santa Clara County Auditor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2021-22 and prior: previously published ACFR
City of Gilroy
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
192
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2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963 0.902963 0.902963
1.000000 1.000000 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 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.008600 0.008200 0.007200 0.006900 0.006900 0.006100 0.006300 County Housing Bond 2016 0.000000 0.012660 0.010500 0.010000 0.000000 0.012660 0.010800 Gilroy City Bond 2008 0.027200 0.026000 0.025000 0.020000 0.019000 0.017500 0.017000 Gilroy Unified School 2002 0.050100 0.047800 0.046700 0.044400 0.042800 0.037000 0.028000 Gilroy Unified 11/2008 0.051300 0.049100 0.046300 0.054400 0.054100 0.052700 0.050900 Gilroy Unified 2016 0.060000 0.055900 0.015400 0.053400 0.055000 0.050900 0.047300 Gavilan Community College 04 0.021600 0.020000 0.019200 0.018700 0.018400 0.017900 0.016800 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.024400 0.023200 0.024100 0.022600 Lease Debt-Gilroy Unified 0.000000 0.000000 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 0.000000 0.000000 SCVWD-State Water Project 0.008600 0.006200 0.004200 0.004100 0.003700 0.005100 0.004400
0.268600 0.267060 0.215700 0.277500 0.264300 0.265160 0.245300 TOTAL TAX RATE 1.268600 1.267060 1.215700 1.277500 1.264300 1.265160 1.245300 Source: Santa Clara County Auditor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2021-22 and prior: previously published ACFR
City of Gilroy
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
193
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Taxpayer Taxable Value ($)
Percent of Total
City Taxable
Value (%) Taxable Value ($)
Percent of Total
City Taxable
Value (%)
Simon Property Group 227,843,480 $ 2.08% 196,348,594 $ 3.17% Joule Gilroy Crossing Owner Llc 81,764,854 0.75%
Olam West Coast Inc 77,388,624 0.71% 75,722,026 1.22%
United Natural Foods West Inc 70,129,548 0.64%
Amazon.Com Services Llc 63,114,624 0.58%
Mg At Gilroy Lp 57,355,620 0.52%
Mabury Vineyards Llc Et Al 56,027,400 0.51%
Performance Food Group Inc 49,319,325 0.45%
Pulmuone Foods Usa Inc 39,004,584 0.36%
Wal Mart Real Est Bus Trt 36,377,311 0.33% 30,988,806 0.50% International Paper Company 32,110,574 0.29%
E P & G South Valley Plaza Llc 28,949,454 0.26%
Calpine Gilroy Cogen L P 27,084,173 0.25%
Nebbiolo Ii-Gilroy Lp 27,000,000 0.25%
Central Valley Coalition 26,652,017 0.24%
Towman Cadena Llc 26,569,854 0.24%
Costco Wholesale Corp A Ws Corp 24,789,905 0.23% 20,388,972 0.33% Avery Cypress Pointe Lp 22,704,883 0.21% 13,226,061 0.21% Canciamilla Anthony Trustee & Et Al 22,672,474 0.21%
Kb Home South Bay Inc 22,407,081 0.21%
Target Corporation 20,247,071 0.19% 15,998,545 0.26%
Sterigenics U S Llc 18,880,113 0.17% 13,822,020 0.22%
First Street Gilroy I Llc 18,549,094 0.17%
Blue Diamond Hospitality Llc 18,352,434 0.17%
Ehj9 Property Llc 18,156,000 0.17%
Excel Gilroy Llc 1.35% 83,789,014
Inland Western Gilroy I Llc 0.76% 47,188,989
7610 Isabella Way Llc 0.59% 36,536,830
South Valley Apts Llc 0.55% 34,006,124
Shapell Industries Inc 0.52% 32,471,346
Monterey Gourmet Foods 0.40% 24,672,603
Cp6Sv Llc 0.35% 21,696,489
Tin Inc. 0.35% 21,663,005
Kb Home So Bay Inc 0.34% 21,000,000
Chinatown Llc 0.32% 20,098,198
Land Department 0.32% 19,829,500
Lowes Hiw Inc A Ws Corp 0.26% 15,912,860
Mission Park Gilroy Llc 0.24% 15,112,484
Hd Development Of Maryland,Inc 0.24% 15,009,688
Gilroy Village Shopping Center 0.23% 14,086,997
Town Place Llc 0.21% 13,013,590
Berry Alexander Street Llc 0.19% 11,697,284
Southpoint Business Park Assoc 0.19% 11,617,675
Total Top 25 Taxpayers 1,113,450,497 $ 10.19% 825,897,700 $ 13.34% Total Taxable Value 10,928,098,242 $ 100.00% 6,192,510,384 $ 100.00% Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics City of Gilroy
Principal Property Taxpayers
Last Fiscal Year and Nine Years Ago
2022-23 2013-14
194
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Fiscal Year
Tax Levied for the Fiscal
Year Amount Collected Percent (%) of Levy
2013-14 $ 6,029,696 6,054,088 $ 99.60%
2014-15 6,547,657 6,515,197 100.50%
2015-16 6,963,327 6,903,278 100.87%
2016-17 7,487,528 7,472,764 100.20%
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%
2021-22 9,990,898 9,990,898 100.00%
2022-23 10,734,341 10,734,341 100.00%
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: County Auditor-Controller
City of Gilroy
Property Tax Levies, Tax Collections and Delinquency
Last Ten Fiscal Years
195
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General Tax Lease Special
Fiscal Obligation Allocation Notes & Revenue Assessment Subscrption Year Bonds (5)(6) Bonds Loans Bonds(4) Bonds Payable
2014 31,820,000 $ - $ - $ 47,797,103 $ - $ - $
2015 31,095,000 - 959,229 46,174,118 - -
2016 30,335,000 - 1,201,155 44,496,134 - -
2017 29,550,000 - 1,126,536 42,763,150 - -
2018 28,745,000 - 1,037,719 40,965,166 - -
2019 19,350,000 - 948,011 39,097,182 - -
2020 26,630,459 - 857,428 36,713,218 - -
2021 25,639,646 - 765,913 33,337,681 - -
2022 24,616,950 - 673,484 31,366,561 - -
2023 23,561,345 - 580,125 28,177,439 - 625,094
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. (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
196
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Wastewater Total % of
Fiscal Subscription Revenue Primary Property Net Debt
Year Payable Bonds (3) (7) Government (1) Assessed Value (2) per Capita 2014 - $ 20,477,068 $ 100,094,171 $ 1.62% 1,910
2015 - 18,519,310 96,747,657 1.45% 1,825
2016 - 16,491,551 92,523,840 1.31% 1,677
2017 - 14,393,793 87,833,479 1.15% 1,570
2018 - 12,206,034 82,953,919 1.02% 1,484
2019 - 9,928,275 69,323,468 0.90% 1,391
2020 - 7,545,517 71,746,622 0.78% 1,257
2021 - 57,865,509 117,608,749 1.20% 1,963
2022 22,500 55,093,508 111,773,003 1.09% 1,878
2023 - 52,494,265 105,438,268 1.07% 1,755
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. (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
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Ratio of
General Tax Net General Bonded General
Fiscal Obligation Allocation Assessed Debt to Net Bonded Debt Year Bonds Bonds Total (1) Value (2) Population (1) Assessed Value Per Capita 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 2022 24,616,950 24,616,950 10,242,720,866 59,520 0.240% 414 2023 23,561,345 23,561,345 10,928,098,242 60,078 0.216% 392 Source: (1) State of California, Finance Department.
(2) This is the amount restricted for the COP debt service principal payments.
City of Gilroy
OUTSTANDING GENERAL BONDED DEBT
Last Ten Fiscal Years
Ratio of General Bonded Debt Outstanding
52 53
55 56 56 56
57 58
59 60
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
48 50
52 54
56 58
60 62
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2022-23 Assessed Valuation: $10,973,811,042
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/23 Santa Clara County 1,041,125,000 $ 1.773% 18,459,146 $
Gavilan Joint Community College District 195,600,000 25.641% 50,153,796 Gilroy Unified School District 346,262,495 82.189% 284,589,682 City of Gilroy 100.000% 23,561,345 23,561,345
City of Gilroy Community Facilities District No. 2000-1 5,181,734 100.000% 5,181,734 Santa Clara Valley Water District Benefit Assessment District 38,900,000 1.773% 689,697 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 382,635,400 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations 1,120,404,570 $ 1.773% 19,864,773 $ Santa Clara County Pension Obligation Bonds 329,741,844 1.773% 5,846,323 Santa Clara County Board of Education Certificates of Participation 935,000 1.773% 16,578 Gavilan Joint Community College District General Fund Obligations 6,135,000 25.641% 1,573,075 Gilroy Unified School District Certificates of Participation 21,495,000 82.189% 17,666,526 City of Gilroy General Fund Obligations (Lease Revenue Bonds) 28,177,439 100.000% 28,177,439 Subscriptions Obligations 625,094 100.000% 625,094
City of Gilroy Loans Payable 580,125 100.000% 580,125
Santa Clara County Vector Control Certificates of Participation 1,230,000 1.773% 21,808 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 74,371,741 $ Less: Santa Clara County supported obligations 186,523
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 74,185,218 $ TOTAL DIRECT DEBT $ 52,318,909
TOTAL GROSS OVERLAPPING DEBT 404,688,232 $
TOTAL NET OVERLAPPING DEBT $ 404,501,709
GROSS COMBINED TOTAL DEBT $ 457,007,141 (2)
NET COMBINED TOTAL DEBT $ 456,820,618
Ratios to 2022-23 Assessed Valuation: $ 10,973,811,042
Direct Debt ($23,561,345) 0.21%
Total Direct and Overlapping Tax and Assessment Debt 3.49% Total Direct Debt ($52,318,909) 0.48%
Gross Combined Total Debt 4.16%
Net Combined Total Debt 4.16%
Source: Avenu Insights & Analytics, California Municipal Statistics, Inc.
City of Gilroy
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
(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.
June 30, 2023
Schedule of Direct and Overlapping Bonded Debt
199
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Fiscal Year
2011 2014 2015 2016 2017 2018
Assessed valuation 5,829,162,100 $ 6,238,973,584 $ 6,714,164,849 $ 7,114,097,533 $ 7,700,974,884 $ 8,175,945,948 $ Debt Limit Rate (1) 15% 15% 15% 15% 15% 15%
Debt limit 874,374,315 935,846,038 1,007,124,727 1,067,114,630 1,155,146,233 1,226,391,892 Total net debt applicable to limit:
General obligation bonds 33,830,000 31,820,000 31,095,000 30,335,000 29,550,000 28,745,000 Legal debt margin $ 840,544,315 $ 904,026,038 $ 976,029,727 $ 1,036,779,630 $ 1,125,596,233 $ 1,197,646,892 Total debt applicable to the limit
4.0% 3.5% 3.2% 2.9% 2.6% 2.4%
Continued
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.
Source: County of Santa Clara, Department of Finance
City of Gilroy
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
as a percentage of debt limit
200
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2019 2020 2021 2022 2023
Assessed valuation $ 8,741,061,361 $ 9,291,636,386 $ 9,807,614,121 $ 10,242,720,866 $ 10,928,098,242 Debt Limit Rate (1) 15% 15% 15% 15% 15%
Debt limit 1,311,159,204 1,393,745,458 1,471,142,118 1,536,408,130 1,639,214,736 Total net debt applicable to limit:
General obligation bonds 27,983,538 27,087,578 25,639,646 24,616,950 23,561,345 Legal debt margin $ 1,283,175,666 $ 1,366,657,880 $ 1,445,502,472 $ 1,511,791,180 $ 1,615,653,391 Total debt applicable to the limit
as a percentage of debt limit 2.2% 2.0% 1.8% 1.6% 1.5%
Concluded
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.
Source: County of Santa Clara, Department of Finance
City of Gilroy
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
201
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2016 2017 2018 2019 2020
Gross revenues:
Charges for services 11,773,938 $ 12,644,730 $ 12,720,141 $ 12,904,657 $ 12,872,189 $ Investment income (loss) 301,481 284,297 410,172 934,590 828,615 Developer impact fees* 4,452,590 3,098,889 2,483,414 2,234,082 1,608,755 Total gross revenues 16,528,010 16,027,916 15,613,727 16,073,329 15,309,559 Operating expenses:
Operations 7,314,113 7,454,202 7,466,650 8,339,489 8,411,647 Billing 612,551 594,654 618,400 668,982 730,892
Administration 500,398 472,465 558,846 706,101 667,733
Total operating expenses 8,427,062 8,521,321 8,643,896 9,714,572 9,810,272 Net Revenues 8,100,948 7,506,595 6,969,831 6,358,757 5,499,287 Debt
2010 Sewer revenue bonds (net debt service) 2,566,550 $ 2,558,688 $ 2,562,738 $ 2,557,625 $ 2,557,750 $ 2021A Sewer revenue bonds - - - - -
Total net debt service 2,566,550 $ 2,558,688 $ 2,562,738 $ 2,557,625 $ 2,557,750 $ Debt service coverage (1.20x requirement) 3.16 2.93 2.72 2.49 2.15 *Developer impact fees for sewer is reported in a capital projects fund Fiscal Year
City of Gilroy
Wastewater System - Historical Debt Service Coverage
Last Seven Fiscal Years
202
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2021 2022 2023
Gross revenues:
Charges for services $ 12,912,113 12,702,398 $ 13,037,892 $ Investment income (loss) 64,441 51,203 825,083
Developer impact fees* 3,552,755 1,764,901 1,122,624
Total gross revenues 14,518,502 16,529,309 14,985,599
Operating expenses:
Operations 8,969,702 9,323,262 7,535,006
Billing 63,021 678,651 924,907
Administration 789,602 720,726 775,649
Total operating expenses 10,722,639 9,822,325 9,235,562 Net Revenues 6,706,984 3,795,863 5,750,037
Debt
2010 Sewer revenue bonds (net debt service) 2,510,417 $ 2,561,500 $ - $ 2021A Sewer revenue bonds - - 1,533,500
Total net debt service $ 2,561,500 2,510,417 $ 1,533,500 $ Debt service coverage (1.20x requirement) 1.51 2.62 3.75 *Developer impact fees for sewer is reported in a capital projects fund Fiscal Year
City of Gilroy
Last Seven Fiscal Years
Wastewater System - Historical Debt Service Coverage (Continued) 203
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204
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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)
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 2021-22 59,269 10,242,720,866 172,818 2,634,388,512 44,448 2.7% 1,894,783 10,064 2022-23 60,078 10,928,098,242 181,899 3,114,690,441 51,844 3.4% 1,886,079 10,972 Source: Santa Clara County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Source: 2021-22 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 Gilroy Unified School District. Any other school districts within the City are not accounted for in this statistic.
205
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Business Name
Number of
Employees Rank
Percent of
Total
Employment
(%)
Number of
Employees Rank
Percent of
Total
Employment
(%)
Gilroy Unified School District* 1,078 1 3.77%
Christopher Ranch LLC 716 2 2.50% 800 1 4.08%
Saint Louise Regional Hospital 522 3 1.83% 550 2 2.81%
Olam International (Formerly ConAgra-Gilroy Foods) 450 4 1.57% 500 4 2.55% Community Solutions 365 5 1.28% - -
Costco Wholesale 350 6 1.22% 220 7 1.12%
Walmart Supercenter 312 7 1.09% 395 5 2.01%
City of Gilroy 258 8 0.90% - -
Gavilan College 214 9 0.75% - -
Gilroy Health Care and Rehabilitation 167 10 0.58% - -
Head Start Nursery - - - 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 4,432 15.50% 3,750 19.13%
Total City Labor Force (1) 28,600 19,607
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2014 previously published ACFR.
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
Last Fiscal Year and Eight Years Ago
2023 2014
206
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Department 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Administration 5 6 5 4 5 5 6 6 7 7 8 8
City Council and Mayor 7 7 7 7 7 7 7 7 7 7 7 7
Community Development 17 18 20 21 21 18 18 21 23 20 23 21 Finance 13 14 13 13 13 11 13 14 14 11 13 12
Fire 43 39 39 40 39 35 36 37 37 43 44 40
Fleet and Facilities 9 10 10 10 10 10 10 10 10 7 10 8
Human Resources 3 3 4 4 4 4 4 4 5 4 4 4
Information Technology 3 2 4 2 2 3 3 4 3 4 4 4
Police 87 87 88 93 94 87 92 94 96 98 99 90
Public Works 34 34 36 38 43 40 42 54 57 48 49 45
Recreation 9 11 11 11 12 10 11 11 11 4 4 4
Total 230 231 237 243 250 230 242 262 270 253 265 243
noted represent budgeted positions.
(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 Last Ten Fiscal Years
By Function/Program
Full-Time Equivalent City Employees
City of Gilroy
207
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Fiscal Year
Function 2011 2014 2015 2016 2017 2018
General Gvoernement
Number of Business Licenses Issued 2,967 2,615 3,034 2,685 3,166 3,800 Total Volunteer Service Hours 29,668 35,439 32,598 34,723 33,855 31,505 Total City-Wide Training Hours Provided 1,538 1,245 1,957 2,356 3,112 3,200 Total Vehicle Work Orders Generated 1,631 2,739 3,146 2,629 2,478 1,428 Total Facilities Work Orders Generated 1,576 1,613 1,542 1,445 1,317 1,428 Public Safety
Police
Number of 911 Calls Received 21,206 27,753 28,498 21,044 23,744 23,484 Number of Police Calls for Service 59,177 58,112 62,200 62,071 63,887 63,073 Number of Investigations Assigned to Detectives 816 727 821 913 845 815 Number of Case Reports Processed 10,780 11,926 13,566 12,621 12,320 12,478 Fire
Total Calls for Service 3,746 4,557 5,131 5,007 5,441 5,374 Total Fire Calls 179 182 179 223 223 265
Total Emergency Medical Aid Calls 2,340 2,802 3,341 3,323 3,735 3,707 Community Development
Number of Building Inspections Completed 9,378 14,101 21,592 24,500 23,623 17,991 Number of Building Permits Processed 1,212 1,706 2,042 2,197 1,903 1,970 Number of Fire Code Permits Issued 525 567 819 839 476 1,060 Public Works
930,000 10,000 90,000 274,479 712,504 533,397
Linear Feet of Preventive Cleaning 600,000 600,000 716,900 785,288 707,379 854,304 Million Gallons of Wastewater Treated per Day 6.76 6.05 5.99 5.97 7.60 6.16 Million Gallons of Municipal Water Produced per Day 7.31 7.87 6.79 5.94 6.46 7.07 Million Gallons of Wastewater Flow per Day (COG) 3.91 3.45 3.50 3.59 4.84 3.87 Number of Utility Billing Customers 12,958 13,716 13,865 14,300 14,549 14,870 Recreation
Number of Registrations Processed 4,166 5,500 6,378 5,856 5,807 4,952 Number of Meals Provided to Seniors Annually 18,392 19,549 20,031 21,351 22,566 23,815 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
208
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Function 2019 2020 2021 2022 2023
General Gvoernement
Number of Business Licenses Issued 3,965 3,160 4,319 3,673 3,335 Total Volunteer Service Hours 28,460 18,465 2,521 12,886 17,588 Total City-Wide Training Hours Provided 2,688 2,892 1,038 1,173 1,262 Total Vehicle Work Orders Generated 1,327 1,514 1,904 1,880 1,686 Total Facilities Work Orders Generated 1,411 1,488 1,405 1,416 1,381 Public Safety
Police
Number of 911 Calls Received 22,235 23,578 22,740 24,837 25,536 Number of Police Calls for Service 64,134 58,354 44,016 62,323 65,459 Number of Investigations Assigned to Detectives 986 1,023 971 1,101 745 Number of Case Reports Processed 11,075 11,020 10,095 9,771 8,205 Fire
Total Calls for Service 5,555 6,243 6,299 7,092 7,117
Total Fire Calls 282 336 381 435 273
Total Emergency Medical Aid Calls 3,739 4,065 4,089 4,866 5,027 -
Community Development
Number of Building Inspections Completed 17,450 14,618 15,652 16,056 15,578 Number of Building Permits Processed 2,050 1,300 1,361 1,784 1,843 Number of Fire Code Permits Issued 1,230 885 474 695 475 Public Works
Square Feet of Chip/Cape/Slurry Seal Completed 1,430,477 1,547,477 1,451,239 3,118,472 3,354,152 Linear Feet of Preventive Cleaning 897,479 849,228 632,280 692,143 716,194 Million Gallons of Wastewater Treated per Day 6.66 6.18 6.14 6.03 7.00 Million Gallons of Municipal Water Produced per Day 6.80 7.20 7.60 6.74 6.24 Million Gallons of Wastewater Flow per Day (COG) 4.13 3.73 3.49 3.16 3.86 Number of Utility Billing Customers 15,133 15,218 15,311 15,483 15,555 Recreation
Number of Registrations Processed 4,737 4,232 2,380 6,875 9,224 Number of Meals Provided to Seniors Annually 25,103 21,979 19,525 22,570 22,961 Source: City of Gilroy, Various City Departments
* Statistic not available
Fiscal Year
City of Gilroy
Operating Indicators By Function / Program (Continued)
Last Ten Fiscal Years
209
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2011 2014 2015 2016 2017 2018
General Government
City Buildings 55 55 55 55 55 57
Public Safety
Police
Police Sattions 1 1 1 1 1 1
Police Vehicles 69 76 79 86 87 83
Fire
Fire Stations 3 3 3 3 3 3
Fire Vehicles 20 20 20 20 21 20
Public Works
Park sites 16 16 16 16 16 19
Centerline Miles of Streets 146 118 120 119 126 151
Number of Streetlights 3,659 4,150 4,150 4,773 4,794 4,841 Miles of Storm Trunk Mains* 30 31 31 31 37 39
Miles of Sewer Mains 101 110 111 111 151 160
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 9 Water Meters in Municipal Service Area 12,905 13,831 14,127 14,669 14,783 14,450 Miles of Water Mains 108 121 152 152 204 205
Number of Fire Hydrants 1,815 2,048 2,150 2,265 2,290 1,948 * Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments.
Function
City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
Fiscal Year
Source: Finance Division, City of Cerritos
210
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2019 2020 2021 2022 2023
General Government
City Buildings 57 57 57 57 57
Public Safety
Police
Police Sattions 1 1 1 1 1
Police Vehicles 103 109 109 113 117
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 19 19 20 20 21
Public Works
Park sites 19 20 21 21 21
Centerline Miles of Streets 166 166 166 168 125
Number of Streetlights 4,861 4,885 4,295 4,315 4,320
Miles of Storm Trunk Mains* 40 40 40 131 131
Miles of Sewer Mains 161 163 162 168 168
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 Water Meters in Municipal Service Area 15,133 15,220 15,266 15,595 15,553 Miles of Water Mains 210 205 219 209 213
Number of Fire Hydrants 2,229 2,187 2,293 2,317 2,321
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments
Fiscal Year
Function
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
Source: Finance Division, City of Cerritos
211
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212
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CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Fw: Gilroy - Santa Teresa District - Fire and Emergency Services Date: Tuesday, September 26, 2023 8:00:20 AM
City Clerk,
Please include this as public comment for Item #14.1 Closed Session.
Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
From:
Sent: Monday, September 25, 2023 1:43 PM
To: Mayor Marie Blankley <[email protected]>; Council Member Dion Bracco <[email protected]>; Council Member Tom Cline <[email protected]>; Council Member Zachary Hilton <[email protected]>; Council Member Carol Marques <[email protected]>; Council Member Fred Tovar <[email protected]>; Council Member Rebeca Armendariz <[email protected]> Cc:
Subject: EXTERNAL - Gilroy - Santa Teresa District - Fire and Emergency Services Dear Gilroy City Counsel,
I want to voice my concern about two issues:
1.) The short staffing at the Santa Teresa Fire Station.
I live in the Mesa Ridge community near Miller Ave. and Thomas Rd., in west Gilroy.
Recently several of my neighbors have been denied homeowner’s fire insurance renewals due to a perception of high fire risk in the area. With all the many new homes built in west Gilroy we urgently need a fully-staffed fire and emergency medical response capability on this rapidly expanding side of Gilroy.
I read in the Mayor’s update that $3M in funding has been allocated in the future budget to modernize the fire stations and add modular buildings to the Santa Teresa fire station to provide a 24-hour staffing capability. But where in the budget are we allocating funds to hire the additional firefighters that will be needed?
Home values and the desirability of living here may decline if the danger of fire and our ability to effectively mitigate the risk is not robustly defended.
Please vote to provide the necessary staffing and infrastructure to support adequate, full14.1 p. 470 of 478
time fire and emergency medical in my home town section of west Gilroy.
2.) Please find a way to fund the Tenth Street Bridge and get it built! This bridge was originally promised to be built by the developer as specified in the Glen Loma Ranch Development Agreement. But that was contingent on the City being able to fund the construction costs, either with Federal grant funds or with other municipal funds.
Now I’m learning that the recent $27M Federal grant application to fund the bridge has been denied and the City doesn’t have the money to fund the bridge construction otherwise.
Forgive my armchair semi-informed critical analysis, but this whole bridge project seems like a SNAFU. The original deal with the developer was a concession to influence and affect planning approvals. Those approvals allowed building too many densely packed homes with inadequate traffic and infrastructure provisions. Instead City planners made a contingent deal for a bridge with only faint dreams of someday funding it, and no consequences to the developers for the resulting delays.
Every year that the bridge is delayed puts our homes at increased risk by adding to the travel distance for emergency responders and increased traffic congestion. The promise of the bridge has been delayed for almost decade. The eroding bridge plans are now whittling down the width of the bridge from four lanes to two, and eliminating other useful bike friendly features.
Now it honestly seems to me like the bridge may never be built at all.
Please understand the scope of these issues involve life saving priorities.
Respectfully,
-David Bartholomew
gilroyca.iqm2.com
___________________________
David Bartholomew
14.1 p. 471 of 478
14.1 p. 472 of 478
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
From: Frank Parker
To: Public Comments
Subject: EXTERNAL - Fire safety
Date: Wednesday, September 27, 2023 4:12:35 PM
Very concerned about staffing the Santa Teresa fire station. As a long time resident of Gilroy, I would hope our fire depart will be fully staffed to protect all of us. Please make this a priority.
14.1 p. 473 of 478
From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Fw: EXTERNAL - Staffing at Santa Teresa Fire Station Date: Wednesday, September 27, 2023 2:15:53 PM
City Clerk,
Please add this to public comment for Item #14.1.
Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
From: Kathleen Kammann <[email protected]>
Sent: Wednesday, September 27, 2023 10:49 AM
To: Mayor Marie Blankley <[email protected]>; Council Member Rebeca Armendariz <[email protected]>; Council Member Dion Bracco <[email protected]>; Council Member Tom Cline <[email protected]>; Council Member Zachary Hilton <[email protected]>; Council Member Carol Marques <[email protected]>; Council Member Fred Tovar <[email protected]>
Subject: EXTERNAL - Staffing at Santa Teresa Fire Station CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
I am very concerned about the issue of staffing at the Santa Teresa Fire Station. I believe we need to increase the daily minimum staffing at this station. It worries me when I see all the continued building in my area and no adequate staffing at our closest station.
I hope you will listen carefully to the Gilroy Firefighters Association when they present their case on October 2.
Thank you.
Sent from my iPhone
14.1 p. 474 of 478
From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Fw: EXTERNAL - Gilroy Firefighter Staffing Concern Date: Wednesday, September 27, 2023 2:13:30 PM
City Clerk,
Please add this to public comment for Item #14.1.
Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
From: Nigel Johnson <[email protected]>
Sent: Wednesday, September 27, 2023 11:19 AM
To: [email protected] <[email protected]>; Mayor Marie Blankley <[email protected]>
Cc: Council Member Rebeca Armendariz <[email protected]>; Council Member Dion Bracco <[email protected]>; Council Member Tom Cline <[email protected]>; Council Member Zachary Hilton <[email protected]>; Council Member Carol Marques <[email protected]>; Council Member Fred Tovar <[email protected]> Subject: EXTERNAL - Gilroy Firefighter Staffing Concern CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
To You All
Firefighter Staffing for our 'rapidly growing' Community - 'Mission Critical' We are Gilroy Citizens and live in the LIONS CREEK community area by Luigi Aprea Elementary school writing to show our support for this effort to provide needed investment for our Firefighters and to help save this temporary location in such a prime response location!! Many days/evenings I visit the Ascension Solarsano Middle School (close to the Fire Station) location; park my truck and take my dog for walks all around Debell Park and Uvas Creek areas close to the Temporary Fire Station.
It is a comfort and confidence feeling to wave to the Firefighters when they head out on a response or return or just to see the small engine (sometime large) parked by the station ready to respond to Community safety and security issues!!
SAVE THAT STATION AND MAKE FIREFIGHTER SUPPORT A VERY TOP PRIORITY for our Rapidly Growing Communities and our priority Tax Dollars investments please.
Thank You for your support!
14.1 p. 475 of 478
Nigel and Violet Johnson
[email protected]
408 398 9371
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From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Fw: EXTERNAL - Fire Fighter Staffing
Date: Wednesday, September 27, 2023 2:17:02 PM
City Clerk,
Please add this to public comment for Item #14.1.
Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
From: Christopher Cobillas <[email protected]>
Sent: Wednesday, September 27, 2023 10:43 AM
To: Mayor Marie Blankley <[email protected]>; Council Member Rebeca Armendariz <[email protected]>; Council Member Dion Bracco <[email protected]>; Council Member Tom Cline <[email protected]>; Council Member Zachary Hilton <[email protected]>; Council Member Carol Marques <[email protected]>; Council Member Fred Tovar <[email protected]>
Subject: EXTERNAL - Fire Fighter Staffing
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
My City Council,
My name is Christopher Cobillas and I live at 713 Carignane Dr. I am distraught by the lack of fire protection and emergency medical services provided to my neighborhood. As the city has grown, basic city services has not. It is shameful to put my family and neighbors safety at risk by not staffing the fire department. Is a residents life justified by budget dollar savings? We all know that it is a matter of time until we will need to utilize public safety in some capacity.
I can include a laundry list of communities that have been decimated and taken off the map due to fires but, we all know them. Having our fire fighters staffed and ready to respond is the only way that our city does not end up in the news for lack of preparation. If it’s predictable, I can be preventable.
I urge you all to consider my neighborhoods safety and remind you all that we voted to put you in these position of leadership to protect us all!
Thank you for your time and constant effort,
Christopher Cobillas
14.1 p. 477 of 478
From: Council Member Zachary Hilton
To: Public Comments
Cc: City Clerk
Subject: Fw: - Firefighter staffing
Date: Wednesday, September 27, 2023 8:00:27 AM
City Clerk,
Please include this as public comment for Item #14.1.
Zach Hilton
Gilroy City Council Member
www.zachhilton.com
#HiltonForCouncil @zachhilton_ca
From: Raul Mayorga <[email protected]>
Sent: Tuesday, September 26, 2023 5:52 PM
To: Mayor Marie Blankley <[email protected]>; Council Member Rebeca Armendariz <[email protected]>; Council Member Dion Bracco <[email protected]>; Council Member Tom Cline <[email protected]>; Council Member Zachary Hilton <[email protected]>; Council Member Carol Marques <[email protected]>; Council Member Fred Tovar <[email protected]>
Subject: EXTERNAL - Firefighter staffing
CAUTION: This email originated from an External Source. Please use proper judgment and caution when opening attachments, clicking links, or responding to this email.
Hello,
I reside off Mesa street and I’ve witnessed the delayed response from the fire department to a witnessed seizure call I saw on my way to work early morning of a 13 year old child on the front lawn. I sat with the patient and waited 18 minutes for response to said home on Mesa. That is unacceptable for the department to be so thin that it delayed treatment and transport of the patient. I pay taxes to the city and deserve the same response times as the folks on 3rd street or other areas like Mantelli or Club drive. This incident I witnessed and stopped for was around 730 am. And Statistics show most fires happen at night and when this happens victims have seconds not minutes. Please consider building more firehouses as was originally planned when Glen Loma was being developed.
This is a fast growing city and you need to keep up.
Regards,
Tax payer Raul Mayorga
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