Gilroy City Council
May 12, 2025

FY26 and FY27 Workplan
Expand Office Capacity: Add a part-time Communication Specialist to increase the City’s outreach and engagement efforts, including the implementation of monthly video news updates and increased content highlighting events and city efforts.

Implement Monthly Video News Updates: Create and implement a process for monthly video news updates that can be posted on the City’s social media channels.

Enhance Website Accuracy and Usability: Improve the accuracy and accessibility of the City of Gilroy website by providing regular training for a cross-departmental team of web administrators, launching a structured process for regularly reviewing and updating web content, and implementing strategies to improve internal site search functionality and user experience.

Strengthen Departmental Communication Capacity: Develop clear processes, templates, and training tools to support departments such as Recreation, Housing, and Economic Development to increase their direct outward communications.

Establish an Internal Communication Support Request System: Create and implement an internal work-order or ticketing system to organize, prioritize, and manage communication requests from City departments. This system will streamline the intake of requests for fliers, messaging support, social media content, and other communication needs, ensuring timely responses and efficient use of resources.

Expand Data-Driven Social Media Strategy: Implement a more robust data collection and reporting process for social media platforms, enabling the Communication and Engagement Office to track performance metrics, evaluate audience engagement, and use insights to refine content strategy and inform future campaigns.

FY26 and FY27 Activity Goals
Expand Office Capacity by Adding a Part-Time Communication Specialist Implement Monthly Video News Updates
Enhance Website Accuracy and Usability
Strengthen Departmental Communication Capacity
Establish an Internal Communication Support Request System Expand Data-Driven Social Media Strategy
Financial/Budget Implications
The following activities and their associated costs are included in the budget:

The addition of a part-time communication specialist. The ongoing cost begins in FY26 in the amount of $65,000;
The addition of an Internal Communication Support/Work Order Request System. The ongoing cost begins in FY26 in the amount of $2,500.

The addition of a Social Media Data Analytics Platform. The ongoing cost begins in FY27 in the amount of $9,012.

City of Gilroy | FY26 and FY27 Recommended Budget Page 170

Communication and Engagement Expenditures by Expense Type 2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((888444...777%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((999...777%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((555...666%%%))) Expense Objects
Personnel
Expenses
$229,699 $268,229 $393,060 $331,817 $434,406 $453,155
Materials and
Services
$104,219 $104,376 $154,187 $70,251 $49,770 $56,836
Internal Services
Charges
$12,793 $13,140 $14,126 $14,126 $28,833 $29,694
Total Expense
Objects:
$346,712 $385,745 $561,373 $416,194 $513,009 $539,685
Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 171

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Economic Development
Victoria Valencia
Economic Development Manager
Description
The Economic Development Division strives to implement the City’s economic development strategy to create jobs, enhance business opportunities, and facilitate economic development by supporting commercial and industrial expansion, creating a thriving downtown that serves as a cultural and entertainment center, and implementing business-friendly policies. A job-rich city supports a high quality of life for residents and provides a foundation for long-term fiscal stability. The City Administrator’s Office leads the Economic Development team. Reorganizing the role at the top of the organizational hierarchy enabled coordination and streamlining of all departments involved in economic development. It also communicates the sincerity and level of commitment the City has applied towards supporting Gilroy’s robust economic climate and business-friendly efforts.

FY24 and FY25 Highlights
Filled the Economic Development Manager position.

Continued the facade improvement program for the Downtown, and revised and expanded it as one of the recommendations of the Downtown Committee.

Completed the $3.9 million Clean California Grant project for Gourmet Alley and Railroad Alley, facilitated business coordination, led marketing and outreach efforts along with the Communications and Engagement Division, hosted a small business fair post-completion, and established Downtown Special Event Zones to activate the alleyways.

Continued to enhance coordination and planning efforts with the City's economic development partners.

Rejoined regional and state economic development agencies to promote Gilroy and leverage resources.

Pursued opportunities for a Downtown Assessment District.

FY26 and FY27 Workplan
Develop approaches and programs to enhance Business Expansion and Retention (BEAR) for our local businesses.

Develop a Gilroy Entrepreneur Encouragement (GEE) program with resources and linkages to sources of expertise for Gilroy residents planning to open their own businesses in town.

Continue to develop outreach and marketing pieces to attract businesses from other regions to Gilroy.

Reorganize economic development into a new department, hire an economic director and expand the department.

FY26 and FY27 Activity Goals
Present the proposed programs for BEAR and GEE to the City Council for consideration.

Financial/Budget Implications
An Economic Development Director position has been included in the proposed budget at a cost of $135,000 in FY26 and $278,100 in FY27;
An account is established to record waived Special Event fees.

City of Gilroy | FY26 and FY27 Recommended Budget Page 172

Economic Development Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((666444...888%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((333333...999%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111...222%%%))) Expense Objects
Personnel
Expenses
$12,414 $139,222 $193,032 $212,086 $399,350 $546,088
Materials and
Services
$5,500 $519,954 $771,566 $818,577 $762,934 $778,973
Internal Services
Charges
$0 $13,140 $14,126 $14,126 $14,416 $14,847
Total Expense
Objects:
$17,914 $672,316 $978,724 $1,044,789 $1,176,700 $1,339,908 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 173

Emergency Management
Andrew Young
Emergency Services and Volunteer Coordinator
Description
The Office of Emergency Management (OEM) is responsible for ensuring the City’s preparedness, response, and recovery capabilities through a comprehensive and sustainable approach to emergency management.

Key responsibilities include:

Emergency Operations Center (EOC) Readiness – Maintaining the operational readiness of the EOC by ensuring equipment, technology, and personnel are prepared to activate and function effectively during emergencies.

Community Resilience & Preparedness – Engaging residents, businesses, and organizations in disaster preparedness initiatives through outreach, education, training, and partnerships. Promoting a culture of resilience by equipping the community with the knowledge and resources needed to withstand and recover from emergencies.

Volunteer Management – Coordinating and supporting volunteer programs, such as the Community Emergency Response Team (CERT), to strengthen local response capacity and community engagement.

Interagency Coordination – Collaborating with local, state, and federal agencies and non-governmental organizations to enhance emergency planning, resource sharing, and response efforts.

Comprehensive Emergency Management – Developing and implementing strategies that integrate mitigation, preparedness, response, and recovery efforts to protect lives, property, and critical infrastructure.

Through leadership, collaboration, and strategic communication, OEM supports all city departments, stakeholders, and the broader community in creating a coordinated and resilient emergency management system. By fostering meaningful partnerships and proactively enhancing community preparedness, OEM strengthens the City’s ability to prevent, respond to, and recover from disasters, ensuring long-term resilience.

The Office of Emergency Services is staffed by two full-time employees dedicated to enhancing the City's overall preparedness and resilience.

The Emergency Services and Volunteer Coordinator focuses primarily on organizational preparedness, ensuring city departments, emergency personnel, and equipping key stakeholders with the necessary plans, training, and resources to effectively respond to emergencies and disasters. This role also oversees volunteer programs, such as Community Emergency Response Teams (CERT) and Amateur Radio Emergency Services (ARES), to bolster local response capabilities.

The Community Resilience Coordinator is responsible for strengthening community preparedness by engaging residents, businesses, and organizations in disaster readiness efforts. This includes public outreach, education, and partnerships aimed at increasing awareness, building capacity, and fostering a culture of resilience within the community.

FY24 and FY25 Highlights
Secured grant funding to support emergency services technology enhancements, volunteer management, equipment, staff augmentation, and specialized training, ensuring continued improvements in emergency management capabilities.

Replaced outdated equipment including laptops and radio communication systems, improving reliability and efficiency in emergency response.

Installed multi-function display equipment in the Emergency Operations Center (EOC), enhancing situational awareness, real-time decision-making, and conferencing capabilities.

Reformatted the EOC layout to maximize operational efficiency, streamline workflows, and improve coordination among response teams.

City of Gilroy | FY26 and FY27 Recommended Budget Page 174

Updated the City’s Emergency Operations Plan (EOP), ensuring alignment with current best practices and regulatory requirements to enhance overall emergency response effectiveness.

Revised the Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) and the City-specific annex, maintaining compliance through annual reporting and fostering long-term risk reduction strategies.

Updated the Community Wildfire Protection Plan (CWPP) and the City-specific annex to address evolving wildfire risks and improve mitigation measures.

Expanded EOC training programs by conducting sessions every other month and increasing frequency for EOC staff, ensuring equitable access to training and reinforcing operational readiness.

Engaged Disaster Service Workers (DSWs) and emergency management volunteers through regular meetings and training opportunities, strengthening their preparedness and response capabilities.

Significantly increased the number of public outreach and education events to enhance hazard awareness, emergency preparedness, and resource distribution. These efforts engaged a wide range of community members through various methods, including in-person events, digital platforms, and collaborative initiatives with local organizations.

Collaborated with community stakeholders and jurisdictional partners to assess local needs and identify grant funding opportunities aimed at enhancing community safety and resilience.

Expanded the Community Emergency Response Team (CERT) and Amateur Radio Emergency Services (ARES) programs, providing residents with hands-on training, preparedness resources, and opportunities to actively participate in emergency response efforts.

Coordinated multiple inclement weather responses, including extreme heat and cold events, high-wind storms, and heavy precipitation. These efforts led to the activation of City-hosted cooling and warming centers to support vulnerable populations.

FY26 and FY27 Workplan
Continue to review, update, and refine the City’s Emergency Operations Plan (EOP), annexes, supporting plans, agreements, policies, and procedures to ensure operational readiness and an effective emergency response.

Maintain compliance with annual reporting requirements for the City’s annex to the Multi-Jurisdictional Hazard Mitigation Plan (MJHMP)
Expand existing and develop new training programs to enhance preparedness among Disaster Service Workers (DSWs), emergency service volunteers, and community members.

Increase the number of trained DSWs and emergency management volunteers while providing additional engagement and training opportunities to strengthen emergency response capabilities.

Actively seek and apply for grant funding to enhance and sustain emergency management programs.

Collaborate with key organizational and community stakeholders to develop, implement, and deliver effective preparedness programs.

Enhance coordination with regional partners to improve local and regional large-scale disaster management.

Expand public outreach and education through a diverse, multi-platform approach, including in-person events, digital content, and social media engagement.

Develop targeted preparedness programs tailored to the needs of vulnerable populations and underserved communities.

Foster stronger partnerships with community organizations to enhance participation in emergency preparedness initiatives. Work closely with the City’s Communications and Engagement Division to ensure regular communication, outreach, and education that empower the entire community to make informed decisions regarding preparedness, response, and recovery.

City of Gilroy | FY26 and FY27 Recommended Budget Page 175

FY26 and FY27 Activity Goals
Conduct regular training and exercises to ensure organizational readiness for large-scale emergencies.

Engage internal and external stakeholders through effective communication, coordination, collaboration, and cooperation to strengthen relationships and enhance the City's emergency management capabilities through whole community preparedness.

Promote an inclusive, diverse, and accessible emergency management program that is representative of the community's needs.

Promote operational readiness city-wide to implement the four emergency management phases:
mitigation, preparedness, response, and recovery.

Maintain plans, policies, and procedures related to large-scale emergencies and disasters.

Establish Memorandums of Understanding (MOUs) with key partners to enhance resource-sharing efficiency during disasters and facilitate disaster cost recovery.

Strengthen business continuity engagement, providing workshops and training to ensure local businesses can recover effectively after disasters.

Expand educational efforts by implementing multilingual preparedness campaigns tailored to the City’s diverse communities.

Financial/Budget Implications
None.

City of Gilroy | FY26 and FY27 Recommended Budget Page 176

Emergency Management Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((777333...777%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222000...222%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((666...222%%%))) Expense Objects
Personnel
Expenses
$9,086 $314,294 $349,103 $335,989 $344,511 $354,830
Materials and
Services
$24,192 $97,864 $128,500 $117,429 $94,320 $98,445
Capital Outlay $0 $9,470 $0 $0 $0 $0
Internal Services
Charges
$0 $26,280 $28,252 $28,252 $28,833 $29,694
Total Expense
Objects:
$33,277 $447,908 $505,855 $481,670 $467,664 $482,969
Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 177

Recreation
Adam Henig
Recreation Manager
Description
The Recreation Division offers a wide array of services to meet the recreational needs of residents. The Recreation Division provides the following community services:

Offers free and fee-based programs to residents of all ages and all interests.

Connects seniors with free, vital services such as tax preparation, free bimonthly groceries, daily lunch, transportation, and social services.

Supports disadvantaged and low-income families by partnering with other governmental agencies and local community organizations.

Serves as staff liaison to city commissions (Library, Parks and Recreation and Youth) and boards (Gilroy Museum, Senior Advisory, Accident Review, Safety Committee, and South County Youth Task Force).

Provides logistical support during a local emergency such as a pandemic, flooding, fire, etc.

Recruits and manages the citywide volunteer program.

To implement and deliver many of these services, staff utilize cutting-edge software, CivicRec and MySeniorCenter. Both systems are web-based and can be accessed remotely.

CivicRec is mobile-friendly and allows residents to register online for classes, reserve picnic areas, fields, and facilities, sign up to volunteer, and ask parks and recreation-related questions. CivicRec provides a public online class catalog and is used for mass email communication and email communication from the instructor for individual classes. Detailed reports on program participation, revenue, and scholarship allocation can be generated from CivicRec, and the facility and field usage calendar and volunteer management.

MySeniorCenter enables participants to check-in for the in-person program(s) the user plans to participate in for that day. These in-person programs could include lunch, club meetings, or arts and crafts classes. The software provides staff with attendance and participation reports, maintains a detailed participant database and easily connects with seniors through mass email campaigns.

The Recreation Division also publishes three times a year the seasonal recreation guide in English and Spanish, which is sent to all households in Gilroy. Recreation communicates with the community through a monthly e-newsletter, social media, school flyers, and tabling at special events.

FY24 and FY25 Highlights
Served nearly 10,000 residents of all ages in recreation programs such as children's theater, summer camp, youth soccer and basketball leagues, adaptive/special needs, older adult classes, volunteering, pickleball, and special events such as Fourth of July Fireworks Display at Gilroy High School.

Contracted aquatic services with an outside provider at Christopher High School Aquatics Center and provided recreation swimming for 10,000 users and 3,000 swim lessons.

Brought back "Breakfast with Santa" in 2023 and 2024 and served 200 multi-generational participants both years.

Generated more than $1 million in user fees through program fees and facility reservations.

For the first time since 2019, Summer Day Camp at Gilroy Gardens was brought back in 2024 and served nearly 150 youth. In addition, using CDGB funding, provided free, all-day summer day camp to 240 lowincome Gilroy youth in 2024 using the Christopher High School Gym.

Hosted Arbor Day in FY2024 and 2025, continuing the City’s designation as a “Tree City USA” member for 43 years.

In collaboration with the Parks & Recreation Commission, organized "Bike to Wherever Day" energizer station in 2024 and 2025 at Christmas Hill Park.

In FY24 and FY25, Recreation distributed more than $21,000 in youth scholarships to 261 participants who live in Gilroy.

City of Gilroy | FY26 and FY27 Recommended Budget Page 178

In partnership with the Gilroy Youth Commission, hosted OpportuniTEEN Fair, an event for teens to explore volunteer, internship, and part-time job opportunities from local businesses, nonprofits, and government agencies.

Implemented one of the recommendations from the 2020 Recreation and Facility Needs Assessment-- expand adult services. In spring 2025, drop-in volleyball will be offered on a weekly basis to adult residents.

FY26 and FY27 Workplan
Implement Council's direction regarding the aquatics program operation.

Through the Parks and Recreation Commission, in collaboration with Public Works, facilitate the construction of a dedicated pickleball court at a city park.

Expand the traditional youth summer day camp at Gilroy Gardens by offering a significant discount that will allow more young residents to attend the program in 2025.

Grow adult services by offering a weekly drop-in volleyball program for adults.

Further develop a summer teen volunteer leadership training program that will serve as a pipeline to become future Recreation Leaders.

Serve 80 to 100 seniors daily at the Senior Center.

Support the $3 million San Ysidro Park Improvements project in collaboration with Public Works.

Support the Parks and Recreation Commission and Parks Division regarding the $500,000 in annual park improvements included in the budget.

FY26 and FY27 Activity Goals
Grow the number of participants registered for recreation contact instructor classes by 5% annually, from 5,225 (FY25) to 5,485 (FY26) and 5,750 (FY27).

Increase the annual program participation of Summer Day Camp by 15%, starting from 143 campers in 2024 to a projected 190 campers by 2027.

Financial/Budget Implications
The following activities and their associated costs are included in the budget:

1. $862,500 for the construction of four (4) pickleball courts at Las Animas Park;

2. Hiring of a Recreation Supervisor to assist with growing programming at a cost of $141,000 in FY26 and $150,000 in FY27;

3. Hiring of a Management Analyst to help with analytical work of the Division and to alleviate the administrative workload of staff to facilitate more time for providing programming at a cost of $154,000 in FY26 and $163,240 in FY27.

4. Hiring of a Recreation Coordinator to replace the shifted Coordinator position to the Police Department to support Youth Task Force Programs, at a cost of $114,000 in FY26 and $120,000 in FY27.

City of Gilroy | FY26 and FY27 Recommended Budget Page 179

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
Adaptive -
number of
enrolled
participants
473 445 480 495 515
Program
enrollment
for feebased
contract
classes.
4,978 3,300 5,225 5,485 5,750
Total # of
senior daily
users (i.e.,
lunch &
recreational
classes)
25,661 27,500 28,227 29,638 31,119
Recreation
Swim Daily
Attendance
5,297 6,950 7,000 7,500 8,100
City of Gilroy | FY26 and FY27 Recommended Budget Page 180

Recreation Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((444111...666%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222888...888%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((222555...666%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((444%%%))) Expense Objects
Personnel
Expenses
$849,845 $881,352 $1,076,358 $903,208 $1,399,877 $1,461,895 Materials and
Services
$667,477 $884,111 $1,075,787 $952,675 $970,752 $1,035,310 Capital Outlay $0 $20,276 $0 $0 $862,500 $0
Internal Services
Charges
$237,893 $51,399 $51,000 $51,000 $134,532 $50,545
Total Expense
Objects:
$1,755,215 $1,837,138 $2,203,145 $1,906,883 $3,367,661 $2,547,750 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 181

Administrative Services
LeeAnn McPhillips
Assistant City Administrator
Overall Department Description
The Administrative Services Department is a central services department that provides services to other departments within the City of Gilroy. Operational oversight of the Department is provided by the Administrative Services and Human Resources Director/Risk Manager to the Divisions contained within.

These include the following:

Human Resources/Risk Management
Facilities
Fleet
Administrative Services Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 182

Administrative Services Expenditures by Division/Function 2026 Recommended Expenditures by Division/Function
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FFFllleeeeeettt (((222444...222%%%)))
Expenditures
Human Resources
Admin
$1,540,513 $1,455,400 $1,841,700 $1,807,320 $1,867,098 $1,878,597 Human Resources
Citywide
$3,060,252 $5,882,539 $4,417,334 $4,678,909 $5,031,929 $5,496,837 Fleet
Administration
$2,377,550 $3,622,847 $4,339,173 $4,249,906 $3,579,364 $2,961,475 Facilities
Administration
$3,117,697 $4,507,700 $5,261,329 $4,306,353 $4,289,690 $4,649,941 Total Expenditures: $10,096,012 $15,468,486 $15,859,536 $15,042,488 $14,768,081 $14,986,850 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 183

Human Resources/Risk Management
LeeAnn McPhillips
Administrative Services & HR Director/Risk Manager
Description
The Human Resources and Risk Management Division of the Administrative Services Department is responsible for fostering and supporting the organizational goals and values to attract, retain, and develop a professional and committed workforce that provides excellent external and internal customer service to our residents. In addition, the Division supports maintaining a safe workplace for employees and the use of best practices to prevent and reduce worker compensation and general liability claims. Further, the Division ensures that the city complies with laws and regulations regarding employment and labor relations.

Responsibilities include recruitment and selection; onboarding and orientation of new employees; labor negotiations; employee relations, including personnel investigations and discipline; administration and coordination of employee benefits; coordination of employee training and development; coaching and assisting managers and supervisors with employment matters; administration of workers' compensation program; coordination of safety and wellness programs, safety training and committees; management of the classification and compensation system; administration of the Human Capital Management module of Enterprise Resource Planning (ERP) system; staff support to the Personnel Commission; coordination of employee leave programs, to include Family and Medical Leave Act (FMLA), California Family Rights Act (CFRA), Pregnancy Disability Leave (PDL), and other leaves; coordination of employee performance evaluation system; administration of employee personnel files and records; and administration of general liability and property insurance and claims.

FY24 and FY25 Highlights
Conducted 88 recruitments for full-time and part-time positions, processed over 2,200 employment applications and onboarded 111 new full-time/part-time/temporary employees (7/1/23 – 12/31/24). The average vacancy rate, less newly funded positions, is approximately 8.6% as of January 2025.

Implemented negotiated retention salary steps for all employee groups.

Successfully completed CalPERS education incentive audit.

In cooperation with the Finance Department, implemented upgrades to the Human Capital Management (HCM) module, completed HCM training, and established updated step-by-step procedures for staff implementation.

Coordinated over 1,800 hours of training (7/1/23 – 12/31/24) for city employees on a range of topics – above and beyond the technical training provided in each department - to ensure employees have the knowledge and skills needed to perform job duties in a more efficient and effective manner.

Managed workers' compensation claims and captured over 3,250 productive work hours (7/1/23 – 12/31/24) through the use of the city’s modified/light duty work program.

Completed paperless health benefits open enrollment process using email and a dedicated open enrollment website page for city staff, resulting in a more efficient, streamlined process and saved over 60 hours of staff time.

Implemented new paid sick leave program for part-time employees.

Developed and implemented a new Violence Prevention Plan and related employee training and drills.

Developed and implemented a new Employee Referral Program and granted 12 referral bonuses for the period July 1, 2023 - March 31, 2025.

In 2024, in cooperation with the Personnel Commission, developed three new job descriptions, updated nine job descriptions, completed four employee reclassifications, and established/adjusted eleven salary ranges.

Completed required general liability risk assessments and, through claims management, achieved a favorable claims evaluation (X-mod) rating (0.683/lowest of all agencies in the Municipal Pooling Authority Risk Pool) which has a positive effect on insurance premiums.

City of Gilroy | FY26 and FY27 Recommended Budget Page 184

FY26 and FY27 Workplan
Complete labor negotiations with the Gilroy Police Officers Association and Gilroy Management Association by July 1, 2025, and implement changes consistent with the approved Memoranda of Understanding.

Complete labor negotiations with the AFSCME, Local 101 General & Supervisory Units and the Gilroy Firefighters Association, IAFF, Local 2805 by July 1, 2026, and implement changes consistent with the approved Memoranda of Understanding.

Explore ways to reduce the frequency and severity of workers' compensation claims and other workers' compensation cost-reduction options.

Complete update of Human Resources Rules and Regulations.

Complete update of the city's Employer-Employee Relations resolution to incorporate state law changes.

Review and update city job descriptions and requirements to support the recruitment and selection function.

Explore and implement ways to reduce the position vacancy rate below 9%.

Establish additional workflow procedures to achieve efficiencies and consistency when completing HCM transactions.

FY26 and FY27 Activity Goals
Complete labor negotiations process prior to the expiration of established labor agreements, maintaining open and collaborative labor relations with city labor groups.

In collaboration with the Finance/Payroll team, analyze HR/payroll processing to map out steps and resources needed for the shift to a biweekly payroll process.

Prioritize the filling of vacant positions and complete recruitment processes as quickly as possible given current staffing levels.

Increase employee training and development opportunities for city staff by 10% in support of having a well-trained workforce.

Financial/Budget Implications
New laws and regulations have been mandated, some of which come at a cost to the agency and significant staff time required to implement them. Expansion of sick leave benefits for part-time employees, minimum wage laws, and vacancy data reporting are some recent examples.

Given the volume of recruitment completed each year, the number of candidates going through the background check process, and the use of professional recruiters for outreach and assistance with highlevel and/or hard-to-fill positions, recruitment costs will increase for FY26 and 27.

General liability (Fund 610) claims have increased. The severity of claims for Gilroy has decreased in recent years, providing some relief to insurance premiums. However, due to increased costs and claims more generally in the insurance market, the cost of insurance continues to rise, impacting the FY26 and 27 budgets. Workers' compensation excess insurance premiums and state-mandated self-insurance fees are up due to the current insurance market and increased cost of claims. In addition, Gilroy's workers' compensation claims costs increased by over 100% due to increased volume and severity of claims. FY23 claims costs were $501,641, increasing to $1,152,085 in FY24, and estimated to be $1,341,000 for FY25 (note: these costs include medical expenses, claim expenses and permanent disability costs; lost work time costs are not included).

Investing in employee training and development should remain a priority as this will help the organizational readiness to take on new tasks/projects and work efficiently.

City of Gilroy | FY26 and FY27 Recommended Budget Page 185

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of New Worker's
Compensation/Liability
Claims
36/36 35/32 43/32 35/32 35/32
# of Recruitments
Conducted/Applications
Processed
56/1,587 55/1,100 60/1,200 58/1,300 58/1,300
Total City-wide Training
Hours Provided
4,020 1,430 3,200 3,550 3,550
# of Human Resources
Action Forms (HRAF)
Processed
1,299 950 1,175 1,240 1,240
# of Hours of Lost Work
Avoided via Modified
Duty Assignments
4,556 2,500 3,125 3,100 3,100
# of FMLA Cases
Managed in
Compliance with
Regulations
16 28 18 17 17
# of New Employee
Onboarding Processes
Completed
77 65 68 70 70
City of Gilroy | FY26 and FY27 Recommended Budget Page 186

Human Resources/Risk Management Expenditures by Expense Type 2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((555777...777%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((222444...333%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((111666...444%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111...777%%%))) Personnel
Expenses
$890,996 $1,045,507 $1,118,748 $1,162,073 $1,128,048 $1,174,874 Materials and
Services
$3,100,169 $3,112,254 $3,815,165 $3,676,098 $3,981,423 $4,259,223 Internal Services
Charges
$29,832 $100,653 $107,058 $107,058 $114,456 $118,727
Other Expenses
and Charges
$579,769 $3,079,526 $1,218,063 $1,541,000 $1,675,100 $1,822,610 Total: $4,600,765 $7,337,939 $6,259,034 $6,486,229 $6,899,027 $7,375,434 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 187

Facilities
Walter Dunckel
Fleet & Facilities Superintendent
Description
With a staff consisting of a Facilities & Fleet Superintendent, one Senior Facilities Maintenance Specialist, two Facilities Maintenance Specialists, one Custodian, and one Management Assistant, the Facilities division maintains, supports, and repairs 57 City-owned buildings and other City-owned facilities. This includes heating, ventilation, and air conditioning (HVAC), plumbing, electrical, lighting, locksmith, gate, overhead door, roofing, fire protection, burglar alarm system, elevator, janitorial services, and pest control services.

Facilities also supports lighting and electrical for City parks. The division also oversees the leases to Gilroy Gardens, Gilroy Golf Course, Tom Carr Boxing Gym, Cherry Blossom Apartments, Old City Hall Restaurant, Gilroy Arts Alliance, Gilroy Library, Miller Red Barn, and the building currently occupied by the Gilroy Downtown Business Association (GDBA).

FY24 and FY25 Highlights
Removed a dilapidated arbor at City Hall.

Completed the Request for Proposals process for HVAC design work for Old City Hall Restaurant.

Completed refurbishment of three apartments and one commercial storefront at Cherry Blossom Apartments.

Added shower, kitchen, and other modifications to TEEC building so it could operate as a temporary fire station.

Replaced HVAC air coil roof unit for City Hall.

Completed the replacement of the reclaimed water tank and fill system at Gilroy Golf Course. Working with a third party vendor, coordinated the Solar Power installation project at four city locations.

Completed Christopher High School Aquatics Center Activity Pool and slide maintenance.

Completed HVAC unit replacement at the Gilroy Arts Alliance building.

Coordinated installation of Senior Center ADA restroom automatic doors.

Completed the City Hall emergency generator project.

Completed office modifications and office moves for Human Resources, Engineering and Utilities divisions.

FY26 and FY27 Workplan
Coordinate the completion of the Cherry Blossom refurbishment project.

Monitor the Solar Power Purchase Agreement to track electrical savings achieved through the use of solar power.

Coordinate the roof replacement of the Cherry Blossom Building.

Maintain the existing HVAC systems at City Hall and the Old City Hall Restaurant.

Evaluate energy savings options/projects to reduce PG&E costs.

Coordinate the Horlien Court, and Las Animas Lakeside parking lot resurfacing.

Coordinate the installation of a new HVAC unit to cool the Annex server room.

City of Gilroy | FY26 and FY27 Recommended Budget Page 188

FY26 and FY27 Activity Goals
Perform basic preventative maintenance per schedule to ensure safe, functional, efficient, and longlasting building components and equipment.

Respond to all work requests, break-downs, and call-outs regarding facilities issues.

Perform custodial services according to schedule, to maintain clean, sanitary, and attractive buildings.

Complete mandatory quarterly fire system inspections, and monthly fire extinguisher inspections.

Coordinate the internal City organic waste recycling program.

Financial/Budget Implications
As the City's facilities age, repair and maintenance issues have increased. Currently, facility maintenance on all 57 City-owned buildings is performed by a staff of one Senior Facilities Specialist, two Facilities Specialists and one Facilities Superintendent, supplemented by third party contractors. The needs of the City continue to grow every year, as the required maintenance and repairs are more extensive, expensive, and take more time to complete.

Currently, there is not a funding source for major facility equipment replacements, such as HVAC replacements or roof replacements. As a result, large replacement projects often get pushed into future years. There are several projects of this nature included on the Capital Improvement Program (CIP) list recommended to be funded.

Fiscal Year 2026 - $305,000 for Parks and Civic Facilities Sidewalk Improvements, and General Citywide Facilities Repairs and Maintenance
Fiscal Year 2027 - $385,000 for Parking Lot Resurfacing in the Downtown and a Park, Annex Server Room AC Replacement, and General Citywide Facilities Repairs and Maintenance.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommened
FY26
Recommended
FY27
# of
Buildings
Maintained
57 57 57 57 57
# of
Custodial
Inspections
Completed
102 125 125 125 125
# of Square
Feet of
Buildings
maintained
306,857 306,857 304,374 304,374 304,374
# of Work
Orders
Completed
1,277 1,450 1,350 1,400 1,400
City of Gilroy | FY26 and FY27 Recommended Budget Page 189

Facilities Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((666777...222%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((111888...999%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((777...111%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((555...999%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((000...999%%%))) Expense Objects
Personnel
Expenses
$654,834 $1,974,999 $853,311 $756,870 $810,312 $845,139 Materials and
Services
$2,158,603 $2,307,126 $2,774,213 $2,731,580 $2,881,405 $3,106,228 Capital Outlay $0 $18,473 $1,333,593 $517,609 $305,000 $385,000 Interfund Transfers $101,895 $0 $0 $0 $0 $0
Internal Services
Charges
$179,021 $201,475 $228,216 $228,297 $252,973 $273,574
Other Expenses
and Charges
$23,344 $5,628 $71,996 $71,997 $40,000 $40,000
Total Expense
Objects:
$3,117,697 $4,507,700 $5,261,329 $4,306,353 $4,289,690 $4,649,941 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 190

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Fleet
Walter Dunckel
Fleet & Facilities Superintendent
Description
The City of Gilroy’s Fleet division services and maintains 427 assets for the City, including 26 assets in the Fire Department, 100 in the Police Department and 30 emergency and portable generators. Fleet responsibilities include the maintenance and defect repair of 197 vehicles, 30 generators, 20 trailers, and 180 miscellaneous assets such as landscaping or street equipment.

The range of services provided by the Fleet division is vast, and includes maintenance from cement saws to fire engines. Fleet also maintains maintenance and defect repair records in fleet management software. This information is used to review the cost of repairs, determine the condition and value of the asset, and deem whether it is cost-effective to repair or replace a particular vehicle. Fleet manages a full and complete maintenance record for each asset.

Fleet also manages the sourcing and dispensing of unleaded and diesel fuel with an annual throughput of approximately 112,000 gallons. Fleet performs daily, monthly, and annual inspections of the fuel service station as required by regulations.

FY24 and FY25 Highlights
Procured and upfitted the following new vehicles:

Twelve police vehicles
Six vehicles (Water Section of Public Works)
Two vehicles (Fire Prevention, CUPA, Pretreatment Section of Community Development) Three vehicles (Parks & Landscape Section of Public Works) Four vehicles (Engineering Division of Public Works)
Two vehicles (Community Development Department)
Six vehicles (Streets/Wastewater/Trees Section of Public Works) One utility truck (Facilities Division)
One Type 6 fire engine and 4 Battalion Chief vehicles (Fire Department) Through the hiring of three full-time and one part-time employees, the Fleet Division achieved full staffing.

Transitioned to fleet maintenance logging and tracking software to include paperless work orders.

FY26 and FY27 Workplan
Procure and deploy all budgeted vehicle purchases for FY26 and FY27.

Utilities: 11 vehicles
Community Development: 3 vehicles
Fire: 1 vehicle
Police: 11 vehicles
Public Works: 1 vehicle
General Pool Vehicles: 3 vehicles
Prepare a new Fleet Replacement Schedule for all vehicles giving consideration to integrating electric vehicles where appropriate and inline with Federal/State mandates.

Upgrade the Fleet maintenance tracking system.

FY26 and FY27 Activity Goals
Maintain a preventive maintenance schedule for all assets to insure their safe and efficient operation for long-term use with an in-service availability rate of 90%.

Maintain a 90% availability of non-public safety vehicles for service.

City of Gilroy | FY26 and FY27 Recommended Budget Page 191

Maintain a 98% availability of public safety vehicles for service.

Complete 100% of mandated smog inspections and certifications.

Complete 100% of mandated diesel smoke test for medium and heavy-duty trucks.

Maintain 100% of the State of California Biennial Inspection Terminal certification for medium and heavy-duty trucks.

Financial/Budget Implications
As the City’s fleet ages, repair and maintenance issues and costs have increased.

The average age of Fleet assets is 14 years and the cost of maintenance and repairs has increased in both frequency and severity.

Replacing aged assets with high maintenance costs and downtime will increase the reliability and safety for drivers/employees and lower the annual maintenance costs.

Fleet Replacement - approximately 30 vehicles over two years, including a Rescue Medic, and other operational vehicles across all departments, $1,847,766 in FY26 and $1,062,500 in FY27.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
Total Work Orders
Generated for Assets
1,349 2,500 1,900 2,500 2,500
% of Fleet Availability by
Class (Public Safety)
98% 98% 98% 98% 98%
% of Fleet Availability by
Class (Non-Public Safety)
96% 96% 96% 96% 96%
% of Preventative
Maintenance Performed
on Schedule
93% 98% 95% 98% 98%
% of Smog
Inspections/Certifications
Completed on Time
96% 100% 98% 100% 100%
# of Fleet Safety Classes
Completed
24 24 24 24 24
City of Gilroy | FY26 and FY27 Recommended Budget Page 192

Fleet Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((333666...444%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((333000...777%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((222000...222%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111222%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((000...777%%%))) Expense Objects
Personnel
Expenses
$576,741 $1,638,155 $732,160 $682,483 $724,767 $763,107 Materials and
Services
$769,394 $1,007,561 $1,061,822 $1,017,904 $1,097,350 $1,162,929 Capital Outlay -$62,148 $13,203 $2,157,931 $2,157,931 $1,302,766 $545,000 Interfund Transfers $2,329 $0 $0 $0 $0 $0
Internal Services
Charges
$306,848 $316,770 $354,160 $352,688 $428,331 $463,919
Other Expenses
and Charges
$784,387 $647,158 $33,100 $38,900 $26,150 $26,520
Total Expense
Objects:
$2,377,550 $3,622,847 $4,339,173 $4,249,906 $3,579,364 $2,961,475 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 193

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Finance
Harjot Sangha
Finance Director
Overall Department Description
The Finance Department provides timely and accurate financial information to City management, City Council, and the public, and administers the City’s assets, including cash and investments, in a prudent and responsible manner. Within the Finance Department there are various functions, including accounts payable/receivable, payroll, investments, debt service, budget, business licenses, general accounting, and utility billing. The Finance Department also oversees the City's Information Technology Division. In addition, the Finance Department manages many of the City's non-departmental functions, including debt servicerelated activities or other fiduciary-related activities.

FY24 and FY25 Highlights
Received the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the Fiscal Year 2024 and 2025 Biennial Budget document.

Received the GFOA Award of Financial Reporting Achievement and a Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023.

Successfully applied and received approximately $140,000 in utility payment assistance funds from the Low Income Household Water Assistance Program (LIHWAP) administered by the California Department of Community Services and Development. LIHWAP was a limited-term, federally funded program that offered assistance to help low-income households pay residential water and sewer bills and manage their residential water utility costs.

Upgraded the Tyler Munis Enterprise Resource Planning (ERP) system to the latest version.

Transitioned the City's various cashiering platforms for credit card payments to a service fee model.

Implemented a new digital platform to manage general purchasing, training, and travel expenses for the City's Purchase Card (Credit Card) program, thereby eliminating paper and transitioning to electronic submission, review, and approval of receipts.

Conducted an actuarial valuation study of the City's Other Post-Employment Benefits (OPEB).

Adopted OPEB Funding Policy.

Implemented water and wastewater utility rates based on the updated rate study.

Implemented new accounting and financial reporting requirements established by the Government Accounting Standards Board (GASB). For example, the City implemented GASB 96 requiring accounting and financial reporting changes for subscription-based information technology arrangements (SBITAs) for government end users (governments).

Procured a utility customer water usage reporting and monitoring portal.

Commenced an independent Transient Occupancy Tax (TOT) compliance review.

FY26 and FY27 Workplan
Complete the TOT compliance review.

Implement new accounting and financial reporting requirements established by GASB. For example, GASB 101 requires the City to implement accounting changes for Compensated Absence liabilities for leaves that have not been used but have been incurred as of the financial reporting period.

Implement the utility customer water usage reporting and monitoring portal.

Implement a public-facing financial transparency portal of the City's budget-to-actuals.

Conduct a comprehensive citywide user fee study.

Conduct a study of the City's business license program and fees, and make necessary updates.

City of Gilroy | FY26 and FY27 Recommended Budget Page 194

FY26 and FY27 Activity Goals
Ensure that all lodging operators within the City are correctly assessing, collecting, and remitting the transient occupancy tax as required by the City's ordinance.

Monitor compliance with GASB's accounting and reporting requirements.

Provide enhanced customer service experience via the utility customer water usage reporting and monitoring portal.

Develop a financial transparency portal to further build trust with residents, demonstrate responsible financial management, and foster accountability, thereby allowing the community to easily access and understand how the City allocates and expends its resources.

Ensure that the City maintains its principal goal of achieving full cost recovery by conducting a comprehensive review and adjustment of its user fees.

Ensure the City's business license program is modernized to address current regulatory challenges, improve program efficiency, and maximize revenue generation through accurate and equitable assessment of related license fees.

Financial/Budget Implications
Personnel Change
Addition of an Accounting Assistant I position - FY26 $100,649 and FY27 $104,995 Materials and Services
Citywide User Fee Study - $60,000 in FY26
Business License Program Study - $40,000 in FY26
Financial Transparency Portal - $20,000 in FY26 onward
Workload Indicators
Measure
Actual
FY24
Adopted
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Accounts Payable Checks Issued 3,561 2,800 3,900 4,000 4,000 # of New Business Licenses Issued 441 500 600 400 400
# of Business License Renewals 4,214 3,200 4,500 4,500 4,500 Finance Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 195

Finance Expenditures by Division/Function
2026 Recommended Expenditures by Division/Function
IIIttt AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((555888...111%%%))) FFFiiinnnaaannnccceee AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((111444...666%%%))) FFFiiinnnaaannnccceee SSSeeewwweeerrr UUUtttiiillliiitttyyy BBBiiilllllliiinnnggg (((111333...777%%%))) FFFiiinnnaaannnccceee WWWaaattteeerrr UUUtttiiillliiitttyyy BBBiiilllllliiinnnggg (((111333...777%%%))) Expenditures
Finance
Administration
$828,756 $1,132,086 $1,267,038 $1,174,466 $1,201,524 $1,177,165 It Administration $3,211,362 $5,779,073 $4,819,148 $4,079,535 $4,780,943 $4,724,432 Finance Sewer
Utility Billing
$933,050 $1,012,603 $1,083,341 $1,037,564 $1,123,421 $1,166,539 Finance Water
Utility Billing
$891,624 $974,206 $1,137,076 $986,880 $1,123,421 $1,166,539 Total Expenditures: $5,864,793 $8,897,968 $8,306,603 $7,278,445 $8,229,309 $8,234,675 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 196

Finance Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((444999%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((333777...999%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((111000...555%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((222...666%%%))) Expense Objects
Personnel
Expenses
$2,871,818 $4,754,169 $3,894,854 $3,774,379 $4,033,616 $4,223,468 Materials and
Services
$1,887,512 $1,813,789 $3,195,927 $2,717,967 $3,122,439 $3,090,186 Capital Outlay $407,032 $334,792 $1,019,198 $589,476 $861,001 $701,000 Interfund
Transfers
$3,624 $0 $0 $0 $0 $0
Internal Services
Charges
$89,600 $184,687 $196,623 $196,623 $212,253 $220,021
Other Expenses
and Charges
$605,209 $1,810,532 $0 $0 $0 $0
Total Expense
Objects:
$5,864,793 $8,897,968 $8,306,603 $7,278,445 $8,229,309 $8,234,675 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 197

Information Technology
Scott Golden
Information Technology Manager
Division Description
The Information Technology (IT) Division centrally manages the information and technology needs of the organization. This internal service fund accounts for all expenses relating to computer hardware, software, maintenance, capital purchasing, and other service charges. The costs are recovered through an annual internal "user fee" which is charged to all departments/funds that require IT-related equipment and service support.

FY24 and FY25 Highlights
Completed the replacement of end-of-life server hardware and software systems.

Completed the evaluation, testing and procurement process for the upgrade of Wi-Fi systems across all City facilities.

Completed the IT Strategic Plan business resiliency recommendation item for Internet capacity.

Completed the documentation for the new annual reporting requirements for subscription-based IT arrangements in the City's audited financials.

Completed the major upgrade of the ERP system from 2019 to the recommended version, and upgraded two major modules to the latest version.

Implemented a citywide cybersecurity training program.

Completed the creation of an on-premise Geographic Information System (GIS) environment and migrated City data from our external contractor systems.

Completed the evaluation, selection and procurement processes for completion of the cybersecurity assessment recommendations.

Established a formal IT asset lifecycle plan and policy to ensure the hardware and software systems are updated within the useful lifecycle of the technology asset.

FY26 and FY27 Workplan
Migrate desktop and laptop computers to Windows 11.

Upgrade Wi-Fi systems throughout all City facilities.

Complete the upgrade of the Land Management System (LMS).

Implement the IT Strategic Plan business resiliency recommendation item for Internet connection redundancy.

Complete the modernization of the Police Department Community Room audio/visual system.

Refresh server systems production storage.

Develop a citywide Geographic Information System (GIS) program strategic plan.

Implement cybersecurity assessment recommendations.

Establish Artificial Intelligence policy and use procedures.

Initialize project for the migration to Gilroy.gov.

FY26 and FY27 Activity Goals
Maintain servers, virtual systems, desktops, mobile, network, and voice systems with an average annual uptime of 98% or higher.

Develop a unified vision and establish a framework for departments to efficiently and effectively use and improve the City's GIS capabilities.

Reduce cybersecurity risks by continually enhancing training and educating employees regarding malicious attack vectors, and implementing additional desktop and network security systems.

City of Gilroy | FY26 and FY27 Recommended Budget Page 198

Financial/Budget Implications
The IT budget includes critical funding requests to complete the proposed work plan for FY26 and FY27 as outlined above. The adopted budget maintains the current service levels and includes funding for one-time technology projects valued at $1.26 million that are currently underway or are identified as critical projects to be completed over the next two years.

City facilities' Wi-Fi upgrade
Production storage upgrade
Tyler EnerGov upgrade and continued enhancements
Cybersecurity plan continued implementation
Legacy database reporting server, reports creation, and staff query training Equipment and device refresh (desktops, laptops, monitors, etc.).

Information Technology Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((555222...555%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((222666...111%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((111888%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((333...333%%%))) Expense Objects
Personnel
Expenses
$616,403 $2,253,374 $1,182,617 $1,121,032 $1,248,734 $1,293,994 Materials and
Services
$1,544,495 $1,252,993 $2,471,563 $2,223,259 $2,511,576 $2,563,608 Capital Outlay $384,532 $334,792 $1,019,198 $589,475 $861,000 $701,000 Interfund Transfers $3,624 $0 $0 $0 $0 $0
Internal Services
Charges
$89,600 $137,383 $145,769 $145,769 $159,633 $165,830
Other Expenses
and Charges
$572,709 $1,800,532 $0 $0 $0 $0
Total Expense
Objects:
$3,211,362 $5,779,073 $4,819,148 $4,079,535 $4,780,943 $4,724,432 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 199

Community Development
Sharon Goei
Community Development Director
Overall Department Description
The Community Development Department is comprised of the following Divisions/functions:

Planning,
Building, including Code Enforcement,
Fire Prevention, Hazardous Materials, and Pretreatment, and Housing and Community Services.

The Department protects and enhances the community’s safety, welfare, quality of life, and economic opportunities by facilitating development activities across the City through entitlement and permitting processes, monitoring and conducting inspections, and implementing programs to address housing needs for a diverse community.

The Department collaborates with the public and community partners to protect and enhance the quality of life by facilitating development activity that meets the City’s objectives and long-term planning goals.

Facilitation is achieved through the entitlement and permitting process, ensuring safe, orderly, and highquality development that complies with the City’s General Plan, Zoning Ordinance, building and fire codes, and other applicable local and state regulations. The Department streamlines processes to enhance service delivery and implements technology to increase efficiency.

The Department’s commitment to the safety and well-being of the community is balanced with fostering the pursuit of economic growth and opportunity. Additionally, the Department oversees and administers programs and funding that assist low-income and/or vulnerable residents of Gilroy in areas such as housing, economic development, and overall quality of life.

Community Development Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 200

Community Development Expenditures by Division/Function 2024 Budgeted Expenditures by Division/Function
BBBuuuiiillldddiiinnnggg (((222777...999%%%)))
PPPlllaaannnnnniiinnnggg (((222444...777%%%)))
GGGrrraaannnttt AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((111666...888%%%))) CCCooommmmmm DDDeeevvveeellloooppp AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((111666...222%%%))) HHHaaazzz MMMaaattt FFFiiirrreee PPPrrreeetttrrreeeaaatttmmmeeennnttt (((888...333%%%))) HHHooouuusssiiinnnggg &&& CCCooommmmmmuuunnniiitttyyy SSSeeerrrvvviiiccceeesss (((666...222%%%))) Expenditures
Community
Development
Comm Develop
Administration
$447,711 $748,642 $729,571 $734,732 $1,030,728 $1,072,853 Planning $1,417,950 $1,368,029 $2,317,487 $2,098,456 $1,567,844 $1,634,337 Customer Service $494,243 $567,594 $671,306 $572,901 $0 $0 Building $1,718,756 $1,875,320 $2,024,141 $2,028,314 $1,770,331 $1,826,633 Haz Mat Fire
Pretreatment
$411,909 $419,184 $457,139 $476,901 $529,355 $553,016
Grant Administration $1,348,567 $975,008 $985,540 $1,114,072 $1,064,845 $1,069,935 Housing &
Community Services
$0 $245,096 $398,927 $414,219 $391,627 $403,169
Total Community
Development:
$5,839,136 $6,198,873 $7,584,110 $7,439,595 $6,354,729 $6,559,944 Total Expenditures: $5,839,136 $6,198,873 $7,584,110 $7,439,595 $6,354,729 $6,559,944 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 201

Planning
Vacant
Planning Manager
Description
The Planning Division is responsible for evaluating residential, commercial, and industrial projects for conformance with Gilroy’s General Plan, Zoning Ordinance, adopted specific plans, and other associated ordinances. The Division is committed to providing solutions-oriented current planning and long-range planning services and working with project applicants to enhance the design and livability of residential neighborhoods, commercial areas, and industrial areas, while promoting sustainable development. The Division also facilitates the production of housing in accordance with the 2023-2031 Gilroy Housing Element.

In addition, the Division administers the California Environmental Quality Act (CEQA) for environmental review related to planning and development proposals.

FY24 and FY25 Highlights
Launched GO Permit (Gilroy Online Permit), the City’s enhanced and integrated online land management, permit, and inspection service system, which provides 24/7 customer self-service functions. Customers can apply for permits, submit plans, track the progress of their applications, schedule inspections, and pay for their permits online through the GO Permit portal.

Attained certification of the 2023-2031 Housing Element from the California Department of Housing and Community Development (HCD).

Prepared Zoning Ordinance revisions to implement various 2023-2031 Housing Element programs.

Obtained Local Agency Formation Commission (LAFCO) approval of Urban Service Area amendment of 11 parcels at the City's northern border.

Submitted the General Plan and Housing Element Annual Progress Report to the California Department of Housing and Community Development (HCD) and the Office of Land Use and Climate Innovation (LCI).

Implemented housing-related State laws (e.g., Accessory Dwelling Units (ADUs), Assembly Bill (AB) 2097 parking, Senate Bill (SB) 1214 posting architectural plans, SB 9, etc.).

Completed SB 35 Housing Accountability approval process and other state legislative updates.

Implemented SB 6 and AB 2011 approval process for multifamily housing projects.

In collaboration with the Building Division, established a program of pre-reviewed ADU plans in compliance with AB 1332, by creating a webpage with pre-approved ADU gallery, to facilitate a faster and more cost-effective permit process.

Partnered with the California High Speed Rail Authority and Valley Transportation Authority to conduct community outreach events to develop a Station Area Visioning Study.

Presented preliminary drafts of the Zoning Ordinance update at Planning Commission meetings and held several community study sessions.

FY26 and FY27 Workplan
Finalize a comprehensive Zoning Code and Zoning Map update that includes City Council, Planning Commission, and public feedback.

Implement 2025-2027 Housing Element goals in collaboration with the Housing and Community Services Division.

Develop an Affordable Housing Ordinance in conjunction with the Housing and Community Services Division; participate in and utilize the results of a regional Grand Nexus and Feasibility Study conducted in partnership with the Santa Clara County Planning Collaborative.

Develop a Climate Action Plan / Vehicle Miles Traveled (VMT) Policy / Traffic Demand Management (TDM) measures which will help the City implement programs within the Gilroy 2040 General Plan and will incorporate a detailed and strategic framework for measuring, planning, and reducing greenhouse gas (GHG) emissions and related climatic impacts.

City of Gilroy | FY26 and FY27 Recommended Budget Page 202

Utilize $335,529 Caltrans Sustainable Transportation Planning grant to fund the VMT/GHG reduction portion of the Climate Action Plan and meet the deliverables as defined in the grant by June 2027.

Collaborate with the Housing and Community Services Division and partner with Santa Clara County Office of Supportive Housing and Santa Clara County Housing Authority on 8 and Alexander affordable housing development.

Finalize a focused fee study with the goal of financial sustainability in the provision of services and implement the new fee schedule.

Collaborate with the California High Speed Rail Authority and Valley Transportation Authority to prepare a Station Area Visioning Study by 2025 and commence the development of a Station Area Plan in 2026.

Present the Historic Resources Inventory Update and associated Zoning Map amendment to City Council for consideration and action.

FY26 and FY27 Activity Goals
Process planning applications, planning review of building permits, and assist internal and external customers.

Submit the General Plan and Housing Element Annual Progress Report to HCD and LCI annually.

Complete the Gilroy Ice Center environmental review and the architectural and site permit review.

Host Developer Roundtable meetings in coordination with the Housing and Community Services Division.

Financial/Budget Implications
The Code Enforcement expenses were 50% Planning and 50% Building in FY24 and FY25 and prior years. To improve budget planning and monitoring, a Code Enforcement budget was created for FY26 and FY27. The Code Enforcement program remains under the general direction of the Building Official.

The Santa Clara County Planning Collaborative provides technical assistance to all 16 jurisdictions in Santa Clara County by facilitating cross-jurisdictional learning, collaboration, and resource-sharing to save time and money, as well as helping staff respond to local housing needs and State laws efficiently and effectively. Participating in the Collaborative provides financial efficiency. Budget was increased by $15,500 in FY26 and $15,965 in FY27.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
# of Applications Processed (filed) 130 180 141 140
# of Applications Completed/Approved 113 160 119 140
# of Entitlements Requiring Public Hearings
(Commission/Council)
9 25 6 9
# of Building Plan Checks Reviewed 420 360 450 450
# of Online Permit-Related Payments 753 n/a 760 800
# of In-Person Customers Served 765 870 700 690
Average In-Person Service Time (in minutes) 30 n/a 55 55 th
City of Gilroy | FY26 and FY27 Recommended Budget Page 203

Planning Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((777000%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((222777...888%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222...333%%%))) Expense Objects
Personnel
Expenses
$874,209 $782,987 $1,005,750 $899,687 $1,097,301 $1,147,094 Materials and
Services
$185,067 $140,757 $874,248 $761,280 $35,282 $33,929
Internal Services
Charges
$358,674 $444,285 $437,489 $437,489 $435,261 $453,314
Total Expense
Objects:
$1,417,950 $1,368,029 $2,317,487 $2,098,456 $1,567,844 $1,634,337 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 204

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Building
Hipolito Olmos
Building Official
Description
The Building Division applies building regulations to promote health and safety in all private and public buildings to ensure that new and existing buildings and structures are safe and suitable for their intended uses. The Division is committed to fulfilling the community's needs, preserving quality of life, and contributing to economic development. The Division strives to provide exceptional personalized customer service that creates predictable timelines and solutions.

The Building Division is responsible for reviewing commercial and residential construction plans, inspecting city-wide building projects, assisting the public at the service counter, and maintaining and retrieving building records in an orderly and precise manner. The Division promotes a safe, healthy, and livable community by providing plan review and inspection services, processing and issuing permits, and conducting health and safety investigations. The Division verifies compliance of structures and sites with applicable building, electrical, mechanical, plumbing, energy, green building, and accessibility codes and standards. The Division collaborates with developers, builders, contractors, businesses, and homeowners to ensure high-quality and safe housing stock and code-compliant commercial and industrial buildings within our community.

The Division also includes Code Enforcement, which implements an “education first” approach to address violations of codes and ordinances established by the City Council related to property, building, zoning, and land use. The Code Enforcement program works to preserve the appearance, character, and quality of our neighborhoods and community. These efforts help maintain the high standards that make the City of Gilroy an attractive place to live and conduct business.

FY24 and FY25 Highlights
Launched GO Permit (Gilroy Online Permit), the City’s enhanced and integrated online land management, permit, and inspection service system, which provides 24/7 customer self-service functions. Customers can apply for permits, submit plans, track the progress of their applications, schedule inspections, and pay for their permits online through the GO Permit portal.

Completed plan review and inspections for several major new construction projects, including the following:

Two new commercial buildings with drive-through access on Chestnut St.

New commercial self-storage facility with 57,671 square feet on Gilman Rd.

New commercial building with 163,400 square feet of new space on Yamane Dr.

New data center facility with 214,796 square feet on Camino Arroyo.

New affordable apartments totaling 94 units.

New 66,982 square feet five-story hotel with 112 guest rooms on East Ninth St.

Two new industrial buildings with a combined 206,326 square feet of new space on Renz Ln.

New commercial building with 18,825 sq ft on Las Animas Ave.

Two new industrial shell buildings with a combined 382,565 sq ft on Cameron Blvd.

Implemented AB 2234 by creating an online resource webpage, which provides a comprehensive list of information needed to approve post-entitlement phase permits for housing development projects.

Completed the integration of SB 379, allowing the SolarAPP+ platform to connect with the EnerGov system online. This achievement has resulted in the creation of an automated permitting platform that verifies code compliance and issues permits in real-time for residential solar energy systems.

Completed the implementation of SB 721, the "Balcony Inspection Bill," for apartments, and SB 326 for condominiums. Developed a dedicated webpage, social media campaign, and informational flyers mailed through utility billing to raise awareness of these regulations.

City of Gilroy | FY26 and FY27 Recommended Budget Page 205

In collaboration with the Planning Division, established a program of pre-reviewed accessory dwelling unit (ADU) plans in compliance with AB 1332, by creating a webpage with pre-approved ADU gallery, to facilitate a faster and more cost-effective permit process.

Implemented the Smoking Prohibition Ordinance by providing access to forms, handouts, and signage templates on a dedicated webpage; utility bill inserts; conducting educational outreach; and assisting 548 property owners to achieve compliance.

Implemented the Sidewalk Vending Ordinance by creating a dedicated webpage, providing examples of application documents, hosting a community workshop to review the application process, and enforcing compliance with the ordinance.

FY26 and FY27 Workplan
Implement a downtown plywood storefront ordinance, based on the recommendations from the Downtown Committee and City Council.

Implement a downtown vacancy ordinance, based on the recommendations from the Downtown Committee and City Council.

Develop local amendments and findings for the 2025 California Building Standards Code and present them to the City Council for adoption, ensuring alignment with community needs and regulatory compliance.

Update and develop handouts detailing the changes in the newly adopted building code. These handouts will be published in both digital and printed formats for improved accessibility, posted on our webpage, and updated regularly.

Finalize a focused fee study with the goal of financial sustainability in the provision of services and implement the new fee schedule.

Implement an online development dashboard that offers real-time updates on current and upcoming development projects, including permit status. This tool will enhance transparency and improve communication between community members and local government.

FY26 and FY27 Activity Goals
Provide development services for applicants and customers by reviewing and processing applications and plans, conducting inspections and investigations, coordinating with development-related functions in other departments and outside agencies, and responding to inquiries from applicants, developers, contractors, and the general public.

Educate the public about Building and Code Enforcement matters such as promoting Building Safety Month while providing an opportunity to engage with developers and the public outside of permit processing activities.

Implement process and operational improvements, including the following:

Improve tracking and reporting of Code Enforcement cases through EnerGov functionality.

Increase certification of inspection staff as Certified Access Specialists.

Encourage employee growth and retention through professional training and certifications and internal cross-training.

Establish mentorship opportunities for less experienced staff to learn from seasoned professionals, facilitating knowledge transfer, skill development, and employee retention.

Maximize the use of technology in operations by promoting training for staff on existing systems like EnerGov and exploring new software solutions for streamlined workflows.

Implement AI tools to evaluate submitted plans for completeness, streamlining the review process.

Develop outreach initiatives to engage the community, enhancing their understanding of code enforcement, building permitting, and inspection processes while gathering feedback to improve service delivery.

City of Gilroy | FY26 and FY27 Recommended Budget Page 206

Financial/Budget Implications
The training and professional support budget was increased by $13,000 combined over the two fiscal years due to the new code cycle.

The Code Enforcement expenses were 50% Planning and 50% Building in FY24 and FY25 and prior years. To improve budget planning and monitoring, a Code Enforcement budget was created for FY26 and FY27. Code Enforcement remains under the general direction of the Building Official.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Building Permits
Processed
2,196 2,100 2,100 2,150 2,200
# of Building Permits - New
Residential
202 180 180 185 190
# of Building Permits -
Commercial/Industrial
204 280 280 285 290
Total # of Inspections
Completed
14,109 12,200 13,500 13,770 14,320
# of Online Permit-Related
payments
9,450 n/a 11,400 11,950 12,200
# of In-Person Customers
Served
2,173 2,250 1,800 1,650 1,500
Average In-Person Service Time
(in minutes)
63 n/a 60 60 60
City of Gilroy | FY26 and FY27 Recommended Budget Page 207

Building Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((666444...111%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222888...111%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((777...888%%%))) Expense Objects
Personnel
Expenses
$1,072,794 $1,219,800 $1,353,724 $1,463,677 $1,134,286 $1,184,772 Materials and
Services
$494,180 $512,159 $518,005 $412,225 $498,071 $498,991
Internal Services
Charges
$151,782 $143,361 $152,412 $152,412 $137,974 $142,870
Total Expense
Objects:
$1,718,756 $1,875,320 $2,024,141 $2,028,314 $1,770,331 $1,826,633 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 208

Fire Prevention, Hazardous Materials, and Pretreatment
Jonathan Crick
Fire Marshal
Description
The Fire Prevention, Hazardous Materials, and Pretreatment Division is responsible for construction and operational permits, inspections, and enforcement of the applicable laws, regulations, and codes under the fire prevention, hazardous materials, and industrial wastewater pretreatment programs. The Division is dedicated to ensuring community safety and protecting natural resources as well as public and private property. This is achieved through a range of services, including plan reviews, inspections, permitting, monitoring, and fire prevention education.

The Division conducts plan reviews and inspections for all new development and construction projects. It also issues permits and inspects certain occupancy types as mandated by local and state fire codes.

Additionally, the Division enforces regulations concerning underground and aboveground storage tanks, emergency generators, and other equipment, ensuring safe handling of hazardous materials in compliance with local and state regulations, including the Certified Unified Program Agency (CUPA) program.

The Division responds to and investigates complaints, documenting and overseeing spills and releases of hazardous and non-hazardous materials that pose a risk to public safety, property, and the environment. The Division conducts the annual Weed Abatement and Fireworks Sales Permitting programs and collaborates with the Fire Department on certain inspection and hazardous material response activities.

The Division also conducts pretreatment monitoring for the South County Regional Wastewater Authority (SCRWA) treatment plant under the Industrial Wastewater Discharge Permitting program. The Pretreatment Program was established as a requirement of the SCRWA discharge permit issued by the Central Coast Regional Water Board. Its functions are dictated by federal law and the State Water Board, which approves the Pretreatment Program Plan and ensures its implementation.

FY24 and FY25 Highlights
Launched GO Permit (Gilroy Online Permit), the City’s enhanced and integrated online land management, permit, and inspection service system, which provides 24/7 customer self-service functions. Customers can apply for permits, submit plans, track the progress of their applications, schedule inspections, and pay for their permits online through the GO Permit portal.

Completed 100% of all State-mandated annual Fire Prevention inspections for 280 facilities (e.g., schools, hotels, motels, apartments, etc.).

Inspected and permitted 336 regulated Certified Unified Program Agency (CUPA) facilities, under CUPA's six hazardous materials programs.

Completed the annual weed abatement program in coordination with the Santa Clara County Weed Abatement Program and addressed concerns regarding weed abatement (Gilroy hillside Wildland Urban Interface (WUI) locations).

Participated with the Countywide writing and adoption of the Community Wildfire Protection Plan (CWPP) and Environmental Impact Report (EIR) process for areas to be treated.

Oversaw the production and distribution of firework safety educational materials, posted and removed illegal fireworks signs, managed the Fireworks Booth Permit Program, inspected the City Fireworks show, facilitated the Illegal Fireworks Mitigation Strategy, administered Fireworks Citations, and oversaw the Fireworks Citation Appeal Hearing process.

Under the South County Regional Wastewater Authority (SCRWA) Pretreatment Program for Morgan Hill and Gilroy:

Managed the permits and inspections for 480 facilities, Completed 100% of all sampling and inspection of major factories/industries, and Addressed sewer pipe issues/blockages caused by fat, oil, and grease (F.O.G.) through a combination of investigation, inspection, education (public outreach), and enforcement.

City of Gilroy | FY26 and FY27 Recommended Budget Page 209

Responded to the California Environmental Protection Agency (CalEPA) regarding the CUPA (Hazardous Materials) Program audit.

Responded to the State Water Board regarding the Pretreatment Program audit.

Developed, revised, and adopted new Sewer Use Ordinance 2024-01 and Enforcement Response Plan (ERP) for SCRWA Pretreatment Program.

Revised Gilroy Fire Department’s policies regarding fire prevention.

Reviewed large incoming construction projects (e.g., Amazon Data Center, Battery Energy Storage System (BESS), EIR and mitigations, industrial warehouses, and Gilroy Ice Center).

FY26 and FY27 Workplan
Prepare and develop local code amendments and findings for the 2025 California Fire Code, in coordination with Santa Clara County jurisdictions.

Present the 2025 California Fire Code with local amendments to the City Council for adoption.

Manage fireworks according to the Gilroy Municipal Code. Coordinate with Gilroy Police for illegal fireworks enforcement strategies.

Coordinate with Santa Clara County to manage the Weed Abatement program.

Ensure that the Pretreatment Program complies with Federal Pretreatment requirements (e.g., conduct field inspections, write permits, review construction plans, collect wastewater samples, update program documents for federally regulated industries).

Finalize a focused fee study with the goal of financial sustainability in the provision of services and implement the new fee schedule.

Procure and implement new software to replace unsupported Digital Health Department (DHD) software, which sunsets December 31, 2026.

FY26 and FY27 Activity Goals
Conduct 100% of the required inspections within stated timeframes, which includes:

Fire prevention and hazardous materials program inspections for all new construction and existing businesses.
280 State-mandated inspections (schools, apartments, hotels, motels, jail, etc.).

Annual pretreatment sampling of high-priority, federally regulated industries and pretreatment program inspections for new and existing businesses in Gilroy and Morgan Hill.

Respond to and investigate spills and complaints, as needed.

Oversee the installation of underground storage tanks for proposed fueling stations.

Complete the federally mandated local limits sampling study and evaluation for the SCRWA plant.

Financial/Budget Implications
Position allocations were updated to reflect the work related to the Wastewater Pretreatment Program (8258540) and the work related to the Fire Prevention Program and Hazardous Materials Program (1004040).

The training and professional support budget was increased by $15,390 combined over the two fiscal years to address needs due to the new code cycle and other mandated trainings.

City of Gilroy | FY26 and FY27 Recommended Budget Page 210

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Fire Prevention
Permit Facilities
675 610 680 685 685
# of Fire Prevention
Inspections
Conducted
1,038 325* 1,000 1,050 1,100
# of CUPA Facility
Inspections
167 160 175 180 180
# of CUPA Program
Permits Issued
558 300** 560 565 565
# of Construction Plan
Reviews Completed
179 160 170 170 170
# of Federally
Regulated
Pretreatment
Samplings
14 14 13 13 13
# of Pretreatment
Inspections
109 90 120 125 135
# of Pretreatment
related Building and
Development Plan
Reviews
188 110 190 195 195
# of Online PermitRelated Payments
681 n/a 770 810 825
# of In-Person
Customers Served
62 40 100 75 60
Average In-Person
Service Time (in
minutes)
18 n/a 8 8 8
*The FY25 budgeted number of 325 was for staff inspections of Fire Code facilities only and did not include State mandated facilities, new business license inspections, and consultant inspections, which are included in the FY24 Actuals, FY25 Projections, and FY26 and FY27 numbers.
**The FY25 budgeted number of 300 was the number of CUPA facilities. The FY24 Actuals, FY25 Projections, and FY26 and FY27 numbers represent CUPA permits issued.

City of Gilroy | FY26 and FY27 Recommended Budget Page 211

Fire Prevention/Hazardous Materials Expenditures by Expense Type 2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((666999...999%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222444...888%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((555...333%%%))) Expense Objects
Personnel
Expenses
$280,596 $324,186 $308,517 $337,354 $370,164 $391,264
Materials and
Services
$104,060 $76,601 $128,845 $119,770 $131,079 $132,800
Internal Services
Charges
$27,252 $18,396 $19,777 $19,777 $28,112 $28,952
Total Expense
Objects:
$411,909 $419,184 $457,139 $476,901 $529,355 $553,016
Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 212

Housing and Community Services
Christie Thomas
Housing and Community Services Manager
Description
The Housing and Community Services (HCS) Division focuses on affordable housing efforts, public service grants, unhoused efforts, below-market rate (BMR) homeownership programs, and serves as a resource to connect Gilroy residents to homebuyer downpayment assistance, affordable apartments, accessory dwelling unit (ADU) programs, emergency housing, unhoused services, rental assistance, fair housing, and tenant/landlord services. The Division administers the Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD), the City’s local Housing Trust Fund (HTF), and the City’s Los Arroyos Fund. These funds primarily assist Gilroy’s vulnerable communities and create safe, affordable, healthy neighborhoods for all.

The HCS Division collaborates with Santa Clara County Office of Supportive Housing (OSH) to develop affordable housing such as the planned affordable housing development at 8 and Alexander Streets. This partnership involves community outreach, communication, and development processes from start to finish.

The Division works with OSH to allocate and implement Permanent Local Housing Allocation (PLHA) funding for nonprofit service providers to assist Gilroy’s vulnerable communities and families experiencing, or at risk of, homelessness. To enhance collaboration, the Division hosts monthly meetings with Gilroy’s Unhoused Service Providers Network (USPN), aiming to connect the unhoused with available services.

Through the City’s Housing Element, the City places a high priority on providing quality and diverse housing opportunities and resources for all residents. The Division is committed to satisfying Housing Element goals through the creation and implementation of a housing policy that serves residents of all income levels and by facilitating partnerships with regional and local stakeholders.

FY24 and FY25 Highlights
Collaborated with regional partners to bring resources to Gilroy and explored policy recommendations related to housing.

Vetted and secured a Mobile Home Rent Stabilization Arbitrator.

Completed State required annual reports such as the General Plan and Housing Element Annual Progress Report, Building Equity and Growth in Neighborhoods (BEGIN) and CalHome Reuse reports, and the Department of Finance Housing Unit Survey for Gilroy.

Collaborated with OSH to allocate PLHA funding for homelessness efforts to local community-based organizations.

Organized and promoted Affordable Housing Month in May of each year in English and Spanish by collaborating with community-based organizations to offer affordable housing community events.

Organized a Developer Roundtable during Affordable Housing Month.

Collaborated with OSH to coordinate the development of affordable housing at 8 and Alexander.

Coordinated and facilitated monthly USPN meetings to increase collaboration and partnership with service providers for the unhoused.

Coordinated and actively participated in the national biannual homeless count (Point-In-Time Count) as the City of Gilroy Jurisdictional Lead in collaboration with Santa Clara County and South County Compassion Center.

FY26 and FY27 Workplan
Implement 2025-2027 Housing Element goals, such as the displacement prevention policy, housing for extremely low income and special needs households, and develop a system to prioritize occupancy of affordable housing units.
th
th
City of Gilroy | FY26 and FY27 Recommended Budget Page 213

Develop a framework and strategies for City-owned assets to establish funding or programming to help fulfill housing-related needs and meet Housing Element objectives.

Update the Mobile Home Rent Stabilization Ordinance for City Council consideration and action.

Develop an Affordable Housing Ordinance; participate in and utilize the results of a regional Grand Nexus and Feasibility Study conducted in partnership with the Santa Clara County Planning Collaborative.

Collaborate with regional, state, federal, and philanthropic partners, and community-based organizations to direct funding to Gilroy.

Collaborate with a local community-based organization to provide case management for a local safe parking program to assist community members who are experiencing homelessness.

Collaborate with the Planning Division and partner with OSH and Santa Clara County Housing Authority on 8 and Alexander affordable housing development.

Develop an ADU awareness program and possible grant(s) for Gilroy to increase ADU production and help meet Housing Element goals.

FY26 and FY27 Activity Goals
Collaborate with the Planning Division to complete the State required annual reports such as the General Plan and Housing Element Annual Progress Report, BEGIN and CalHome Reuse reports, and the Department of Finance Housing Unit Survey for Gilroy.

Coordinate, promote, and facilitate informative and innovative Affordable Housing Month events.

Host Developer Roundtable meetings and connect housing developers with property owners interested in selling or developing their land for housing.

Facilitate monthly USPN meetings and invite new organizations who provide resources and services to Gilroy unhoused residents to give a presentation to inform all service providers.

Develop relationships with South County service providers and regional partners to create strong partnerships, learn about resources available to our community, and to keep a constant pulse on community and provider needs.

HOUSING SPECIAL REVENUE FUNDS
The Housing Special Revenue Funds are comprised of Building Equity and Growth in Neighborhoods (BEGIN), Community Development Block Grant (CDBG), Housing Trust Fund (HTF), BEGIN Reuse Account, CalHome, and CalHome Reuse Account. These funds assist Gilroy’s vulnerable communities through the BMR homebuyer and rental program, first-time homebuyer loan program, low-income rental housing, public service grants, and non-public service grants.

BEGIN FUND (230)
In 2008 and 2010, the City was awarded BEGIN loans from HCD that would serve as deferred loans to assist first-time homebuyers with purchasing homes. The first standard agreement, 07-BEGIN-100, was entered on July 3, 2008, and the second standard agreement, 09-BEGIN-6554, was entered on September 2, 2010. These loans were issued to first-time homebuyers of homes where the home developer agreed to participate in the program. These loans are deferred and due upon the sale or transfer of a home with a loan recorded on it. Repayment of principal and interest on these loans goes into the BEGIN Reuse Account for repurposing.

COMMUNITY DEVELOPMENT BLOCK GRANT (245)
CDBG is a federally funded program managed by HUD. The City of Gilroy is an entitlement City and receives an allocation of funds each year. Since 2017, the annual allocations have ranged from $368,433 to $496,369. Every five years, the City must analyze and identify the needs of the community by developing a Consolidated Plan describing the City’s strategy to address those needs. The City must also submit an Annual Action Plan that documents the City’s planned use of the funds each fiscal year and a Consolidated Annual Performance and Evaluation Report (CAPER) that describes the th
City of Gilroy | FY26 and FY27 Recommended Budget Page 214

accomplishments of each Annual Action Plan, for each year of the five-year Consolidated Plan. CDBG funds can support a variety of activities benefiting low-income families and individuals, which include the following:

Public services (no more than 15% of the annual entitlement grant).

Housing activities, home repairs and rehabilitation for low-income, owner-occupied homes that address health and safety needs, code enforcement, and accessibility improvements.

Public facilities and capital improvements.

Program administration (no more than 20% of the annual entitlement grant).

FY24 and FY25 Highlights
CDBG funding was implemented each year and unspent resources from prior years were used to augment the non-public services. As part of the annual process, staff published a Notice of Funding Availability (NOFA) to potential applicants, conducted outreach, evaluated applications, supported two Public Hearings, with City Council’s approval awarded public service and nonpublic service grants to subrecipients, and executed agreements. Staff prepared environmental reviews as necessary for non-public service grants. Staff performed ongoing monitoring of subrecipient programs and spending, grant payment distribution, and quarterly reporting to HUD.

Completed the Annual Action Plan each year, which included a Public Hearing and City Council’s approval.

Completed the CAPER each year.

Updated CDBG Policies and Procedures manual.

Attended and participated in monthly Regional CDBG Coordinator meetings.

Completed 21 sessions of Web-Based Instructional System for Environmental Review (WISER) training, which was a HUD requirement for non-public service grant program administration.

Conducted community outreach from October – December 2024 in collaboration with OSH and their consultant to collect survey responses for the 2025-2030 Consolidated Plan. Assisted OSH and their consultant in conducting community stakeholder meetings. Staff attended 11 outreach events, sent out surveys or delivered with rent coupons to four (4) mobile home parks, and distributed surveys through 23 community-based organizations. Gilroy residents completed 619 surveys – more than any other Santa Clara County jurisdiction.

Completed and City Council adopted 2025-2030 CDBG Consolidated Plan.

FY26 and FY27 Workplan
Begin implementation of 2025-2030 Consolidated Plan goals.

Conduct NOFA and allocation process to fund programs and services for the community.

Coordinate with subrecipients to provide services, review quarterly reports, issue grant payments, and expend prior year entitlement grant balances. Submit to HUD required documents and forms, conduct quarterly drawdown of funds, and meet with HUD representative quarterly.

Ensure compliance with the City’s Citizen Participation Plan, which defines the availability for public engagement and public noticing for NOFA and the allocation process.

Complete Annual Action Plan and CAPER by prescribed deadlines.

FY26 and FY27 Activity Goals
Update the Policies and Procedures manual and update all CDBG program template documents.

Provide community outreach and education on housing resources by partnering with communitybased organizations in hosting workshops to inform residents of assistance programs and funding opportunities.

Assess and improve prior years’ processes to increase efficiency and effectiveness, improve documentation, provide consistent management, and ensure timely expenditure of entitlement grant allocations.

Attend CDBG training to stay apprised of the most current policies and procedures.

City of Gilroy | FY26 and FY27 Recommended Budget Page 215

Financial/Budget Implications
CDBG funds are highly regulated through federal policies and guidelines to ensure that the funds are expended towards the intended national goals and objectives of the federal program and that it reaches the intended target groups of the program.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
Public Service Grants 3 n/a 7 6 6
Non-Public Service Grants 2 n/a 2 2 2
HOUSING TRUST FUND (250)
The HTF is a local source of funds for housing-related programs that serve low-income families and individuals. The major sources of ongoing funds for the HTF are from the proceeds of homebuyer loans, sales of HTF funded or silent second below market rate ownership units, repayment of housing rehabilitation loans, and down-payment assistance loan payoffs. The City created the HTF to manage the distribution of and repayment of these funds to aid low-income homeowners and renters, and multifamily home rehabilitation loans. This fund is used to partially fund (52%) the City’s Below Market Rate (BMR) Program Administrator.

FY24 and FY25 Highlights
Processed BMR loan payoff and equity share transactions with the BMR Program Administrator.

Processed HTF down payment assistance loan payoffs.

Managed the rent payment schedule for Cherry Blossom residential and commercial tenants and served as the liaison for the tenants.

Conducted weekly check-in meetings with BMR Program Administrator to foster partnership and promote consistency of Administrator deliverables. Deliverables received include the following:

Updated BMR Portfolio and City loan lists.

Completion of four historical open BMR homeowner tickets.

Community meeting for homeowners residing in four BMR developments.

Compliance certification process for three BMR developments.

Compliance certification for Gilroy’s 100% affordable apartment developments.

FY26 and FY27 Workplan
Implement the Pilot Below Market Rate (BMR) Preservation Program.

Monitor HTF funded rehabilitation loans to ensure compliance with rent restriction agreements through the effective period.

Monitor BMR homeowner portfolio to ensure compliance with resale and down payment assistance loan restrictions.

FY26 and FY27 Activity Goals
Reconcile HTF outstanding loans each month and prepare an annual report for the Finance Department by the end of the fiscal year.

Prepare a BMR Program Participation Guide.

Monitor Pilot BMR Preservation Program transactions monthly and prepare an update report for City Council and join the Santa Clara County BMR Workgroup.

Create a Senior Below Market Rate Homebuyer Program for City Council consideration.

City of Gilroy | FY26 and FY27 Recommended Budget Page 216

Financial/Budget Implications
The Pilot BMR Preservation Program helps to maintain the affordability of existing BMR housing units, support homeownership opportunities for low-income households, and preserves affordable housing for special needs groups, such as seniors. Preserving affordable housing is a priority within the City’s 2023-2031 Housing Element goals, policies, and programs. The Pilot BMR Preservation Program is one avenue used to help the City accomplish these goals. The program expenses, budgeted at $100,000 per home with a capacity of three homes per year, will be paid out of the HTF and will be repaid with the resale of the home.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of HTF
Loans
Reconciled
Annually
(internally)
10 10 10 10 10
# Pilot BMR
Preservation
Transactions
Annually
n/a n/a 1 3 3
LOS ARROYOS FUND (255)
These deferred loan funds were previously managed by South County Housing (SCH). The City of Gilroy assumed responsibility for these loans through the dissolution of SCH in 2017. The City intends to utilize these funds to support future homebuyers in the Los Arroyos neighborhood as established in a memorandum of understanding between the City of Gilroy and SCH, first signed in 2001 and amended in 2008. This fund is also used to partially fund (48%) the City’s BMR Program Administrator.

BEGIN REUSE ACCOUNT (265)
As part of the monitoring agreements signed between the City of Gilroy and HCD, all repayments of BEGIN loan principal and interest are to be deposited into a separate, reuse account. The repayments can be used to fund new loans and homebuyer education. This account is monitored by the State HCD for a period of twenty years. Annual reporting to HCD is required.

CALHOME (270)
Similar to the Los Arroyos Funds, these funds and the deferred loans that make up their portfolio were previously managed by SCH. Due to the dissolution of SCH, the City now maintains these funds and intends to use them to support future homebuyer assistance.

CALHOME REUSE FUND (272)
This new fund is used to account for deferred loans which were previously dispersed and managed by SCH. The City of Gilroy assumed responsibility for these loans through the dissolution of SCH in 2017.

These loans (three separate loan contracts – 06-0234, 08-4924, and 10-6632) were granted to SCH by the State HCD. All repayments of CalHome loan principal and interest are to be deposited into a separate reuse account. The repayments can be used as down payment assistance for low-income homebuyers and homebuyer education. This account is monitored by the State HCD for a period of twenty years.

Annual reporting to HCD is required.

City of Gilroy | FY26 and FY27 Recommended Budget Page 217

Housing and Community Services Expenditures by Fund
2026 Recommended Expenditures by Fund
HHHooouuusssiiinnnggg TTTrrruuusssttt FFFuuunnnddd (((333888...888%%%))) CCCooommmmmmuuunnniiitttyyy DDDeeevvv BBBllloooccckkk GGGrrraaannnttt FFFuuunnnddd (((222777...777%%%))) GGGeeennneeerrraaalll FFFuuunnnddd (((222666...999%%%))) LLLooosss AAArrrrrroooyyyooosss FFFuuunnnddd (((666...666%%%))) General Fund $0 $245,096 $398,927 $414,219 $391,627 $403,169 Residential Dev Loan
Prog Fund
$0 $246 $0 $0 $0 $0
Community Dev Block
Grant Fund
$774,729 $551,864 $510,145 $499,563 $403,200 $403,200
Housing Trust Fund $425,749 $336,498 $388,995 $528,109 $565,245 $570,335 Los Arroyos Fund $128,865 $86,400 $86,400 $86,400 $96,400 $96,400 Begin Reuse Fund $19,224 $0 $0 $0 $0 $0
Total: $1,348,567 $1,220,104 $1,384,467 $1,528,291 $1,456,472 $1,473,104 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 218

Housing and Community Services Expenditures by Expense Type 2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((333999...777%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((222333...777%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((111333%%%))) IIInnnttteeerrrfffuuunnnddd TTTrrraaannnsssfffeeerrrsss (((111222...666%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((888...999%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((222%%%))) Expense Objects
Personnel
Expenses
$213,610 $242,487 $383,545 $397,418 $345,634 $355,282
Materials and
Services
$504,952 $380,484 $360,962 $504,812 $578,435 $579,468
Capital Outlay $203,394 $217,057 $193,841 $179,943 $130,000 $130,000 Interfund Transfers $59,506 $150,086 $186,248 $186,248 $183,570 $188,660 Internal Services
Charges
$31,594 $0 $0 $0 $28,833 $29,694
Other Expenses
and Charges
$335,512 $229,990 $259,870 $259,870 $190,000 $190,000
Total Expense
Objects:
$1,348,567 $1,220,104 $1,384,467 $1,528,291 $1,456,472 $1,473,104 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 219

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Fire
Rob Fleeup
Fire Chief
Overall Department Description
The Gilroy Fire Department is an all-risk community service provider comprised of two divisions: Fire Administration and Fire Operations.

The Fire Administration Division manages the Department’s business transactions, ensures adherence to county, state, and federal mandates, and strives to deliver services cost-effectively.

The Fire Operations Division comprises three subdivisions: Field Operations, Education and Training, and Emergency Medical Services (EMS). Each subdivision is managed by a Division Chief who directs and oversees its assigned Battalion. The Department currently deploys its response resources from three fully staffed fire stations 24 hours per day, 7 days per week. The department has one part-time interim fire station that is staffed, when possible, with assigned personnel not requiring overtime. The station will be staffed with a minimum of two fire response personnel, regardless of overtime requirements, in the event of heightened public safety concerns, such as state of emergency declarations, red flag warnings, 4th of July, potential flood or other disaster, public events or gatherings in which there is a significant concern for public safety.

The Fire Department participates in and actively supports fire protection with other jurisdictions and agencies through boundary drop, auto-aid, and mutual-aid agreements. These industry-standard agreements include mutual-aid services with the California Office of Emergency Services (CalOES), Santa Clara County Fire Department, CalFire, and other fire departments throughout Santa Clara County and the state. The Department routinely receives and provides additional fire resources when requested. Without these agreements, communities throughout the county and state could not safely extinguish large wildland and structure fires, adequately manage multi-casualty incidents, or mitigate hazardous materials events. When requested, these agencies will also respond to City incidents when all Gilroy fire stations are committed to other emergencies.

In addition to emergency response, the Fire Department also performs proactive community services such as:

Provide wildland and fire prevention awareness.

Provide support and additional staffing during special events throughout the City.

Inspect and maintain a comprehensive Citywide public-access Automated External Defibrillator (AED) program.

Partner with the City’s Fire Marshal to provide operational input and provide safety recommendations that enhance the community's safety.

Administer public education via engine visits and station tours.

FY24 and FY25 Highlights
Implemented First Due incident reporting, analytics, and mobile responding program. This program tracks and analyzes the department's incidents, provides navigation for incidents, and includes Automatic Vehicle Locating (AVL) of the department's apparatus.

Replaced outdated fire engine Mobile Data Computers (MDCs) with iPads that use the First Due mobile responding program for emergency response navigation.

Replaced one and began the order/build process for three additional 20+ year-old command staff response vehicles.

Replaced all department Self-Contained Breathing Apparatuses (SCBA) with new SCBAs enabled with Bluetooth. This equipment provides breathable compressed air to firefighters and is essential when responding to fires and hazardous materials incidents. The Bluetooth technology pairs with advanced City of Gilroy | FY26 and FY27 Recommended Budget Page 220

Location, Unit, Name, Assignment, and Air Supply Resources (LUNAR) devices. LUNAR is a handheld, wireless device that detects fires and displays battery life, air pressure, and estimated air supply time remaining. This key SCBA data, alarm information, and search status are provided to Incident Command during scene management.

Replaced an aging compressor to fill SCBA bottles with a new air compressor purchased with Federal Emergency Management Agency (FEMA) grant funding.

Purchased one battery-powered gurney for the department ambulance with grant funding from the Santa Clara County EMS Agency. Powered gurneys reduce injuries to firefighters and patients and provide a more efficient and safer transfer into the ambulance.

Completed department-wide behavioral health and wellness training. This training aims to reduce lineof-duty injuries, deaths, and occupational illnesses.

Hired six firefighter paramedics in FY24 and six (6) in FY25.

Hired two Fire Division Chiefs in FY24.

Promoted seven personnel: one Division Chief, two Fire Captains, and four Fire Engineers.

Deployed multiple resources on 11 Northern California and Los Angeles strike teams. Strike team responses generated an estimated $380,000 in revenue.

Began implementing the Lexipol Standard Operating Policy (SOP) Program. This program will standardize the department's SOPs and provide the department with important updates to laws and codes that affect public safety.

FY26 and FY27 Workplan
Assist with planning the new permanent fire station in the Santa Teresa Fire District.

Assist with planning the remodel of the aging Chestnut and Las Animas Fire Stations, built in the 1970s.

In 1986, an administrative wing was constructed at the Chestnut Station to create office space for the administrative staff. Other than this addition, there have been no major renovations to the stations since they were built. The remodels will replace station carpeting with tile or polished concrete to reduce contaminants in living areas, update kitchen areas, and provide for dorms and restrooms to accommodate all genders. Work with the Santa Clara County Fire Department and the City of Morgan Hill on the updated Auto Aid, Mutual Aid, and Boundary Drop Agreements.

Develop a plan to bring Emergency Medical Dispatching (EMD) in-house. Gilroy currently contracts with the Santa Clara County Communications Department for its EMD calls. Gilroy’s Communications Department transfers its emergency medical calls to County Communications for advanced medical dispatching. This contract has been in place since the early 2000s, and the cost has increased incrementally each year. The cost of the program in FY25 is $90,000. County Communications has recently changed its billing methodology, and the cost of the EMD service will drastically increase to over $300,000 per year within the next two to three years.

FY26 and FY27 Activity Goals
Complete the implementation of the Lexipol SOP Program in FY26.

Complete the implementation of the apparatus and equipment tracking and management program in FY26.

Purchase two external chest compression devices in FY26.

Purchase a mask fit testing machine in FY26.

Hire an Administrative Fire Division Chief in FY26.

Promote two Fire Engineers to Fire Captains in FY26.

Promote three Firefighters to Fire Engineers in FY27.

Purchase radios for new hires in FY26 and replace outdated radios in FY27.

Purchase one set of e-draulic extrication tools in FY26 and one (1) set in FY27.

Replace an 18-year-old hose/turnout dryer in FY27.

Update the probationary task book training objectives for Fire Engineer, Fire Captain, and Acting Fire Division Chief in FY27.

City of Gilroy | FY26 and FY27 Recommended Budget Page 221

Complete a full apparatus inventory and bring reserve apparatus up to minimum inventory requirements in FY27.

Financial/Budget Implications
Equipment and Supplies
The recommended Fire Department budget includes $207,000 and $157,000 in FY26 and FY27, respectively, for various health, life, safety devices, and equipment necessary, as outlined in the Activity Goals.

Administrative Fire Division Chief
Beginning in FY26, the Fire Administrative Division Chief position will oversee the construction and outfitting of the Santa Teresa Fire Station, and will be funded by the fire station's construction funds for the next two years. This position will also assume department administrative responsibilities for interagency communication, correspondence, and cooperation, including attending various monthly meetings. This position will transfer many of the Division Chiefs' administrative duties from the current division chiefs, who are required to respond to emergencies and manage their companies during their shift, while also managing their various division administrative duties.

Fiscal Year 2026 Salary and Benefit cost: $260,000
Fiscal Year 2027 Salary and Benefit cost: $267,800
Promote two Fire Engineers to Fire Captains
When the Santa Teresa fire station is staffed, the current staffing model requires personnel to work out of class. There are no permanent Fire Captains or Fire Engineers assigned to this station. Once the three recruits in the fire academy graduate and complete their in-house training program, the department will be at full staffing. This full staffing will make the Santa Teresa station operational more often. Three companies are responsible for city coverage, each with three Fire Captains assigned. These captains are assigned to the Chestnut, Las Animas, and Sunrise stations. There is one vacant Fire Captain's position assigned to Fire Administration. The combination of promoting two Fire Engineers to Fire Captains and assigning the current Administrative Fire Captain to the Santa Teresa station will provide permanent supervisory responsibilities to the Santa Teresa station.

Fiscal Year 2026 Salary and Benefit cost: $52,622 (Half year) Fiscal Year 2027 Salary and Benefit cost: $108,401
Promote three Firefighters to Fire Engineers
Once the Fire Captain positions are established to provide coverage to the Santa Teresa station, the next permanent position required for assignment to the station is the Fire Engineer. Three additional Fire Engineer positions will be required to staff the fourth station, with three companies providing coverage.

Each of the four stations would then have both a Fire Captain and a Fire Engineer assigned. When staffing levels provide adequate coverage, the firefighter positions would be filled with relief personnel.

Fiscal Year 2027 Salary and Benefit cost: $90,000
City of Gilroy | FY26 and FY27 Recommended Budget Page 222

Workload Indicators
Workload Indicators
Actuals
FY24
Budgeted
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
Total Emergency
Medical Service (EMS)
Responses
4,897 6,100 4,925 4,950 4,975
Total Fire Responses 359 390 370 380 390
Total "Other" Calls
Responses
1,751 2,120 1,800 1,825 1,850
Total Call Responses 7,007 8,610 7,095 7,155 7,215
Fire Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 223

Fire Expenditures by Division/Function
2026 Recommended Expenditures by Function
FFFiiirrreee OOOpppeeerrraaatttiiiooonnnsss (((888333...222%%%))) FFFiiirrreee AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((111666...888%%%))) Expenditures
Fire
Fire
Administration
$2,125,459 $2,531,517 $2,676,889 $2,642,679 $2,643,911 $2,757,002 Fire Operations $11,450,530 $13,410,619 $12,240,976 $12,909,471 $13,072,686 $13,666,609 Total Fire: $13,575,990 $15,942,135 $14,917,865 $15,552,150 $15,716,596 $16,423,611 Total Expenditures: $13,575,990 $15,942,135 $14,917,865 $15,552,150 $15,716,596 $16,423,611 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 224

Fire Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((888111...888%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111000...222%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((555%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((111...666%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((111...333%%%))) Expense Objects
Personnel
Expenses
$11,690,598 $12,374,211 $12,122,266 $12,909,126 $12,857,622 $13,524,039 Materials and
Services
$713,112 $649,828 $790,417 $739,337 $792,143 $806,071
Capital Outlay $0 $1,129,014 $101,495 $0 $207,146 $157,000 Internal Services
Charges
$1,172,279 $1,535,126 $1,649,731 $1,649,731 $1,605,730 $1,682,545 Other Expenses
and Charges
$0 $253,956 $253,956 $253,956 $253,955 $253,956
Total Expense
Objects:
$13,575,990 $15,942,135 $14,917,865 $15,552,150 $15,716,596 $16,423,611 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 225

Police
Pedro Espinoza
Police Chief
Overall Department Description
Our mission is to “Provide Excellent Public Safety Services in Partnership with the Community.” Our department values include respect, integrity, compassion, teamwork, and accountability. Every member of our organization is expected to provide service to the community in a manner that adheres to these values.

The Police Department is divided into the following three divisions, with their functions identified under each:

Field Operations
Patrol
K-9
Community Engagement Team
School Resource Officers
Quality of Life Officers
Parking Enforcement
Graffiti Abatement
Animal Control
Special Operations
Investigations
Traffic
Anti-Crime Team
Regional Task Forces
South County Youth Task Force
Administration
Records
Property and Evidence
Communications (Police/Fire 911 Services)
Budget
Each division is managed by a Police Captain. Staff also provides other ancillary duties in support of the Department’s mission. These include participation in a regional Tactical/Crisis Response Team, Mounted Enforcement Unit, Off-Road Motorcycle Patrol, and Bike Patrol.

FY24 and FY25 Highlights
Hired a Community Engagement Coordinator (CEC) to lead the Department’s transparency and community trust-building efforts via community surveys, social media platforms, press releases, and inperson community engagement events.

Replaced the Department’s outdated body-worn and in-car camera systems. The new system has increased the Department’s transparency efforts and enhanced the ability to provide public safety services. Cloud-based systems were implemented, reducing the need to maintain and replace servers.

Enhanced trust-building efforts through Department-led community engagement activities such as Coffee With a Cop, San Ysidro Cafecitos, National Night Out, Shop With A Cop, Gilroy Youth Police Academies, and Community Police Academies. These outreach efforts included engagement with our Spanish-speaking community members.

Used funding from a California Board of State and Community Corrections grant to expand the employee wellness and resiliency program. This included Dr. Kevin M. Gilmartin's Emotional Survival for Law Enforcement training to help personnel manage job-related stress and a Retire Well Course by The Counseling Team International to support officers transitioning to retirement.

Implemented My90 by Axon, a community engagement tool aimed at strengthening the connection between the department and the community by gathering anonymous feedback through surveys.

City of Gilroy | FY26 and FY27 Recommended Budget Page 226

Established a formal supervisor mentorship program with the purpose of developing an internal succession plan.

Developed the Police Department’s three-year Strategic Plan, in June, to use as a roadmap in achieving our goals.

City Council approved the City's permanent Quality of Life Officer Program to address the complex and multifaceted challenges posed by quality-of-life concerns with the unhoused community.

The Police Department released its first annual report, providing a comprehensive overview of department activities, accomplishments, and community engagement efforts over the past year. This report aims to promote transparency and keep the community informed about the department's ongoing initiatives and performance.

Upgraded Citizen RIMS, a public access extension of the department's records management system, enabling citizens to view crime and incident data online.

FY26 and FY27 Workplan
Pursue grant opportunities to fund and establish a real-time crime information center.

Explore platforms to implement a Drone as First Responder Program, incorporating the Police Department, Chestnut, and Sunrise Fire Stations.

Reevaluate the Volunteers in Policing (VIP) Program to promote inclusivity by increasing Spanishspeaking participation. While Santa Clara County recruitment for a clinician is underway, continue our partnership with Santa Clara County Behavioral Health to support the deployment of a Psychiatric Emergency Response Team (PERT) clinician.

Evaluate Emergency Medical Dispatch (EMD) options.

Build on law enforcement technology advances to increase efficiency in the report writing process, with the ultimate goal of allowing officers to remain in the field.

FY26 and FY27 Activity Goals
Implement succession plan goals to support command and supervisory personnel transitions.

Prepare for the implementation of the Next Generation 9-1-1 (NG911) system, pending state approval in March 2027. This system will improve call routing, enhance location accuracy for wireless callers, and reduce call overload during disasters by allowing calls to be re-routed to other Public Safety Answering Points.

Evaluate recommendations from University of California San Diego, 720° Health initiatives to enhance the employee wellness and resiliency program. 720° Health offers evidence-based interactive training and health technologies for law enforcement professionals, focusing on mindfulness and a sense of purpose to improve mental and physical well-being and resilience.

Enhance recruiting efforts to maintain staffing levels and address employee attrition due to retirements.

Establish a Neighborhood Watch Program to promote community safety and engagement.

Financial/Budget Implications
Shooting Range Modular Classroom, FY26 $148,648.38
Axon Interview Room Monitoring System, $49,455 combined over both FY26 and FY27 Axon Draft One-AI Driven Report Generation Services, $126,680 combined over both FY26 and FY27 City of Gilroy | FY26 and FY27 Recommended Budget Page 227

Workload Indicators
Administration Division
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Grant
Applications
Awarded
3 7 5 6 6
# of Gang/Violence
Intervention
Activities
185 165 150 190 190
# of Community
Outreach Activities
82 40 75 85 85
# of Permits
Processed
85 138 90 90 90
# of Training Hours
Completed
12,102 6,250 6,250 10,000 10,000
# of Social Media
Posts
200 600 550 575 600
Social Media
Outreach
950,000 800,000 775,000 800,000 800,000
Refinement of measures for South County Youth Task Force (SCYTF) efforts and Police/SCYTF joint community events.

Increase in training hours during FY24 due to California Commission on Peace Officer Standards and Training (P.O.S.T) mandated training requirements.

Higher actuals expected in future years with hiring of Community Engagement Coordinator. 1 1
2 3
3 1
2 3
City of Gilroy | FY26 and FY27 Recommended Budget Page 228

Communications Division
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Phone Calls
Inbound/Outbound
96,667 124,000 124,000 124,000 124,000
# of 911 Calls Received 23,573 28,000 28,000 28,000 28,000 # of 911 Calls Transferred to
Emergency Medical Dispatching
3,240 2,500 2,500 2,500 2,500
% of 911 Calls Answered within 15
Seconds
98% 98% 98% 98% 98%
# of Calls Created 67,097 76,000 75,000 76,000 76,000
# of Priority "1" Calls for Service 6,526 350 3,500 5,000 5,000 # of Priority "2" Calls for Service 16,756 9,500 16,000 16,000 16,000 # of Priority "3" Calls for Service 43,700 12,000 40,000 40,000 40,000 # of Priority "4" Calls for Service 116 15,000 200 200 200 New Computer Aided Dispatch System provides more accurate statistical data, resulting in updates to measurement data.

Investigations Division
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Investigations
Assigned to Detectives
413 925 425 425 425
# of Homicide
Investigations
2 1 1 - -
# of Sexual Assault
Investigations
80 80 80 - -
# of Robbery
Investigations
52 65 65 - -
Homicide Investigation
Closure Rate
100% 100% 100% 100% 100%
Sexual Assault
Investigation Closure
Rate
43% 40% 40% 40% 40%
Robbery Investigation
Closure Rate
29% 31% 31% 31% 31%
New Computer Aided Dispatch System provides more accurate statistical data, resulting in updates to measurement data.

Goals based on California average for clearance rates of the specified crime types. California rates are typically 10-30 points higher than the national average for a jurisdiction in our size category (50,000-99,999). 4 4
4 4
4 4
4 4
5 5
5 4
5 City of Gilroy | FY26 and FY27 Recommended Budget Page 229

Patrol Division
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Police Calls for
Service
34,505 42,000 42,000 42,000 42,000
# of Case Reports
Written
5,893 6,700 6,700 6,700 6,700
# of Traffic Citations 2,431 2,700 1,200 - -
# of Traffic Warnings
Issued
483 130 130 - -
# of Vehicle
Abatements/Citations
433 2,400 400 450 450
# of Bookings
Processed at GPD
449 1,700 500 - -
# of Sex Offender
Registrations
Conducted at GPD
143 400 140 140 140
% of all Priority "1" Call
Responses Within Five
Minutes
95% 95% 95% 95% 95%
% of all Priority "2" Call
Responses Within
Twenty Minutes
95% 95% 95% 95% 95%
Number of Arrests 856 875 875 875 875
# of Radar Trailer
Deployments
11 250 25 25 25
# of Volunteer Hours
Worked by VIPs
1,751 2,000 2,000 2,000 2,000
Used as a tool in response to traffic complaints from community members related to vehicle speeding. 6 6
City of Gilroy | FY26 and FY27 Recommended Budget Page 230

Records Division
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Case Reports
Processed
5,893 12,000 6,000 6,000 6,000
# of Case Reports
Distributed to District
Attorney
1,747 2,300 2,300 2,300 2,300
Warrants Entered
and Tracked
961 2,100 1,200 1,200 1,200
# of Property Items
Processed
8,386 6,000 6,000 6,000 6,000
# of Evidence Items
Sent for Analysis
363 200 200 200 200
# of Property Items
Purged
9,331 2,200 2,200 2,200 2,200
7 Based on scheduled purge cycle.
7 Police Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 231

Police Expenditures by Division/Function
2026 Recommended Expenditures by Function
PPPooollliiiccceee PPPaaatttrrrooolll OOOpppeeerrraaatttiiiooonnnsss (((555666...111%%%))) PPPooollliiiccceee AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((222555%%%))) PPPooollliiiccceee CCCooommmmmmuuunnniiicccaaatttiiiooonnnsss (((888...555%%%))) PPPooollliiiccceee IIInnnvvveeessstttiiigggaaatttiiiooonnnsss (((777...222%%%))) PPPooollliiiccceee RRReeecccooorrrdddsss (((333...333%%%))) Expenditures
Police
Police
Administration
$5,470,072 $8,872,542 $9,463,696 $8,704,577 $8,425,107 $8,295,125 Police Patrol
Operations
$17,024,435 $17,724,127 $18,735,592 $18,615,474 $18,862,639 $19,511,545 Police
Investigations
$1,511,299 $2,152,928 $2,334,946 $2,311,443 $2,407,725 $2,474,765 Police
Communications
$2,220,415 $2,231,482 $3,119,069 $2,401,489 $2,844,124 $2,971,905 Police Records $1,034,794 $916,674 $1,366,764 $1,016,004 $1,104,583 $1,164,416 Total Police: $27,261,015 $31,897,753 $35,020,067 $33,048,987 $33,644,178 $34,417,756 Total Expenditures: $27,261,015 $31,897,753 $35,020,067 $33,048,987 $33,644,178 $34,417,756 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 232

Police Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((888000...555%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111111...222%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((777...555%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((000...444%%%))) IIInnnttteeerrrfffuuunnnddd TTTrrraaannnsssfffeeerrrsss (((000...333%%%))) Expense Objects
Personnel
Expenses
$22,731,860 $24,266,115 $27,028,717 $25,968,476 $27,088,142 $28,081,003 Materials and
Services
$1,800,337 $2,203,183 $3,464,014 $2,941,332 $2,527,529 $2,583,434 Capital Outlay $10,861 $698,690 $476,746 $88,589 $148,648 $0 Interfund
Transfers
$278,943 $665,822 $100,000 $100,000 $100,000 $100,000
Internal Services
Charges
$2,439,014 $4,063,943 $3,950,590 $3,950,590 $3,779,859 $3,653,319 Total Expense
Objects:
$27,261,015 $31,897,753 $35,020,067 $33,048,987 $33,644,178 $34,417,756 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 233

Police Expenditures by Fund
2026 Recommended Expenditures by Fund
GGGeeennneeerrraaalll FFFuuunnnddd (((999777...888%%%))) SSSpppeeeccciiiaaalll RRReeevvveeennnuuueeesss (((222...222%%%))) General Fund
General Fund $25,974,573 $30,067,217 $32,701,391 $31,635,174 $32,913,585 $33,643,758 Total General Fund: $25,974,573 $30,067,217 $32,701,391 $31,635,174 $32,913,585 $33,643,758 Special Revenues
Ots Pd Grant $30,754 $130,757 $168,500 $90,818 $0 $0
Police Grants Fund $894,389 $696,712 $265,957 $184,079 $100,000 $100,000 Brd State&Comm
Corr Title Ii
$64,341 $140,785 $819,167 $424,311 $0 $0
Special Enforcement
Ops Fund
$3,000 $3,000 $0 $3,000 $3,000 $3,000
Prop 172 Sales Tax -
P.S. Fund
$293,958 $354,965 $372,700 $372,700 $239,365 $282,770
Neighborhood
Safety Unit
$0 $132,313 $142,550 $37,446 $142,550 $142,550
Federal Asset
Seizure
$0 $0 $150,000 $0 $0 $0
South County Youth
Task Force
$0 $372,005 $399,802 $301,459 $245,678 $245,678
Total Special
Revenues:
$1,286,442 $1,830,536 $2,318,676 $1,413,813 $730,593 $773,998 Total: $27,261,015 $31,897,753 $35,020,067 $33,048,987 $33,644,178 $34,417,756 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 234

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Police Special Revenue Funds
Pedro Espinoza
Police Chief
Overall Description
Special revenue funds are those that supply the Gilroy Police Department with funding for special purposes and programs. Most of these funds are received on a reimbursable basis. Below is a description of these funding sources.

Fund
Number
Fund Name
222 Neighborhood Safety Unit
223 Office of Traffic Safety Grant
225 Police Grants Fund
226 Federal Asset Seizure
227 South County Youth Task Force
228 Board State and Community Corrections (Title II)
229 Special Enforcement Ops Fund
240 Prop 172 Sales Tax
NEIGHBORHOOD SAFETY UNIT (Fund 222)
This fund accounts for revenues and expenditures to support the work of the SCYTF programming and community-based agencies in an effort to reduce juvenile delinquent behavior, reduce recruitment of youth in gangs, and reduce youth violence in Santa Clara County. In addition, the funds establish a partnership to support the youth and families who reside in East Gilroy.

OFFICE OF TRAFFIC SAFETY POLICE GRANT(S) (Fund 223)
Office of Traffic Safety Grants are competitive grants that provide overtime funding directly to law enforcement agencies to combat impaired driving, encourage seat belt and child safety seat usage, initiate a statewide distracted driving campaign, enhance emergency medical services response, promote motorcycle, pedestrian and bicycle safety programs, and enforce aggressive driving and other traffic laws aimed at saving lives. These Federal funds are used for traffic safety and support such police operations as DUI and other types of traffic checkpoints and compliance monitoring operations.

POLICE GRANTS FUND (Fund 225)
Fund used to record other Police miscellaneous grants. Currently includes:
1) The Justice Assistance Grant Program (JAG) is the leading source of federal justice funding for state and local jurisdictions. The JAG Program provides critical funding necessary to support a range of program areas including law enforcement, crime prevention and education, corrections and community corrections, drug treatment and enforcement, planning, evaluation, technology improvement, and crime victim and witness initiatives and mental health programs. These funds come from the Federal government and are used for police expenditures. 2) The Officer Wellness and Mental Health Grant Program was established as a Budget Act of 2022, through the Board of State and Community Corrections (BSCC) to provide $50 million for city and county law enforcement agencies for the purpose of improving officer wellness and expanding mental City of Gilroy | FY26 and FY27 Recommended Budget Page 235

health resources. Gilroy Police Department received $43,529 which will be used towards implementing an employee wellness and resiliency program and expanding the department's Critical Incident Support Debrief Team (CISD).

FEDERAL ASSET SEIZURE (Fund 226)
Monies are received from seizures of drug-related funds/assets in cooperation with Federal Law enforcement. These funds are used for law enforcement training and equipment purposes. Purchases have included technology for the Crime Scene Investigation Team (CSI) and Cordico wellness application.

SOUTH COUNTY YOUTH TASK FORCE (Fund 227)
Funding is provided through the South County Youth Task Force (SCYTF), the cities of Gilroy and Morgan Hill, Gilroy and Morgan Hill Unified School Districts, Santa Clara County Library District, Santa Clara County District Attorney's Office, and Santa Clara County Probation Department. Funding is to be used in efforts to reduce juvenile delinquent behavior in Santa Clara County.

BOARD OF STATE AND COMMUNITY CORRECTIONS GRANT (Fund 228) This is a grant issued by the Board of State and Community Corrections (BSCC) for $1.04 million over three years to fund the South County Restorative Justice Youth Diversion Program (RJYDP). The RJYDP provides an opportunity for Santa Clara County youth who engage in alleged citable or harmful conduct to come together with impacted community members and collectively address the incident as a circle, while supporting and respecting youth as a valuable community member with the goal of diverting youth away from the Juvenile Justice System.

SPECIAL ENFORCEMENT OPERATIONS (Fund 229)
Monies received from seizures of drug-related funds/assets. The funds are used by the Anti-Crime Team for undercover investigative purposes.

PROPOSITION 172 SALES TAX – POLICE SERVICES (Fund 240)
Funds are received from State sales tax and must be used for public safety activities. Expenditures are services provided by the County and include crime lab billing, prisoner transport, Cal-ID photo program, sexual assault exams (SART), and Criminal Justice Information Control (CJIC).

City of Gilroy | FY26 and FY27 Recommended Budget Page 236

Police Special Revenue Expenditures by Fund
2026 Recommended Expenditures by Fund
SSSooouuuttthhh CCCooouuunnntttyyy YYYooouuuttthhh TTTaaassskkk FFFooorrrccceee (((333333...666%%%))) PPPrrroooppp 111777222 SSSaaallleeesss TTTaaaxxx --- PPP...SSS... FFFuuunnnddd (((333222...888%%%))) NNNeeeiiiggghhhbbbooorrrhhhooooooddd SSSaaafffeeetttyyy UUUnnniiittt (((111999...555%%%))) PPPooollliiiccceee GGGrrraaannntttsss FFFuuunnnddd (((111333...777%%%))) SSSpppeeeccciiiaaalll EEEnnnfffooorrrccceeemmmeeennnttt OOOpppsss FFFuuunnnddd (((000...444%%%))) Ots Pd Grant $30,754 $130,757 $168,500 $90,818 $0 $0
Police Grants Fund $894,389 $696,712 $265,957 $184,079 $100,000 $100,000 Brd State&Comm Corr
Title Ii
$64,341 $140,785 $819,167 $424,311 $0 $0
Special Enforcement
Ops Fund
$3,000 $3,000 $0 $3,000 $3,000 $3,000
Prop 172 Sales Tax -
P.S. Fund
$293,958 $354,965 $372,700 $372,700 $239,365 $282,770
Neighborhood Safety
Unit
$0 $132,313 $142,550 $37,446 $142,550 $142,550
Federal Asset Seizure $0 $0 $150,000 $0 $0 $0
South County Youth
Task Force
$0 $372,005 $399,802 $301,459 $245,678 $245,678
Total: $1,286,442 $1,830,536 $2,318,676 $1,413,813 $730,593 $773,998 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 237

Police Special Revenue Funds Expenditure by Expense Type 2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((888666...333%%%))) IIInnnttteeerrrfffuuunnnddd TTTrrraaannnsssfffeeerrrsss (((111333...777%%%))) Expense Objects
Personnel
Expenses
$286,697 $67,601 $0 $17,132 $0 $0
Materials and
Services
$873,612 $1,068,208 $1,970,007 $1,208,092 $630,593 $673,998 Capital Outlay $10,861 $28,904 $248,669 $88,589 $0 $0
Interfund
Transfers
$115,271 $665,822 $100,000 $100,000 $100,000 $100,000
Total Expense
Objects:
$1,286,442 $1,830,536 $2,318,676 $1,413,813 $730,593 $773,998 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 238

Utilities
Heath McMahon
Utilities Department Director
Overall Department Description
The Utilities Department is responsible for providing the people and businesses of Gilroy with high-quality, safe, and reliable drinking water and wastewater collection and treatment services. Together, these necessities form the foundation of a successful and sustainable city by ensuring a clean water supply and preventing waterborne diseases, which are fundamental for promoting public health, economic growth, environmental protection, and quality of life.

Utilities staff provide these services by planning, constructing, maintaining, and operating the City’s water production/distribution system and wastewater collection system. Utilities also oversees the South County Regional Wastewater Authority (SCRWA) wastewater treatment plant, which operates via a joint power agreement with the City of Morgan Hill.

The City of Gilroy owns and operates its own water and wastewater utilities. Historically, utilities were part of the Public Works Department. After thoroughly assessing services and functions, a dedicated Utilities Department was created in 2024.

Financial/Budget Implications
The previous budget included adding new positions, which was foundational to establishing the new Utilities Department. The crucial task of providing life-supporting water and sewer services to the community has become more complex due to the demands of community growth, and ever-increasing regulations requiring more monitoring and reporting, ensuring compliance with amplified federal and state mandates. It is also essential to manage the vast investment in infrastructure effectively to prolong its useful life, and also plan for major maintenance and eventual replacement so that the city continues to provide reliable water and sewer services 24 hours a day, 365 days a year. Since hiring the new Utilities Director, careful examination has been made of the organizational structure to determine the staff necessary to operate the new Utilities Department effectively and sustainably into the future.

The following positions are added and/or reclassified as part of this budget cycle:

Water Quality Specialist, $117,000 and $121,000 in FY26 and FY27 respectively. Water Operator, $106,000 and $109,000 in FY26 and FY27 respectively.

Reclassify Office Assistant to Management Assistant, net increase of $20,000 and $22,000 in FY26 and FY27 respectively.

Reclassify Operations Services Supervisor to Water Systems Superintendent, net increase of $15,000 in FY26 and FY27 respectively.

Reclassify Maintenance Worker II to Water Operator, net increase of $10,000 in FY26 and FY27 respectively.

Wastewater
The Wastewater Collection Division safely and efficiently maintains the City's sanitary sewer collection infrastructure to ensure a continuous flow of wastewater to prevent sanitary sewer overflows (SSOs).

Infrastructure includes 167 miles of gravity pipeline, 0.2 miles of force main, 4,030 manholes, one lift station, and over 14,200 lateral connections. The division ensures the city complies with all state and federal wastewater collection and disposal requirements and that the wastewater flows continuously to the SCRWA wastewater treatment plant. Maintenance and operation of the sanitary sewer collection system is funded through fees based on the rate structures approved by the City Council.

City of Gilroy | FY26 and FY27 Recommended Budget Page 239

FY24 and FY25 Highlights
Initiated the Computer Maintenance Management System (CMMS) rollout by successfully migrating the asset database. Once fully operational, the system is expected to boost efficiency by ensuring staff inspect and clean the appropriate pipe segments at the proper intervals while logging all maintenance activities.

Conducted training sessions for staff on the newly deployed closed-circuit television (CCTV) inspection unit.

Installed and activated three (3) SmartCovers equipped with level sensors to monitor key maintenance manholes in the sanitary sewer collection system, providing early warnings to staff about potential overflow risks.

Purchased a second large sewer line cleaning combination truck (Vactor).

Supplied the Utilities Department with data on sanitary sewer infrastructure condition for use in Capital Improvement Project (CIP) development.

Responded to twenty sewer blockages, nine sewer overflows, and forty-one sewer repairs.

FY26 and FY27 Workplan
Perform the mandatory biannual audit for the Sewer System Management Plan (SSMP). The audit involves updating the document and training staff in new regulations. Recertification is required to maintain compliance with the Regional Water Quality Control Board Install additional SmartCovers to monitor key segments within the sanitary sewer collection system.

This will help eliminate potential overflows and optimize collection system cleaning, decreasing threats to public health.

Incorporate and utilize the Underground Service Alert Web Ticket Management System through the City's CMMS program.

Develop an Emergency Response Plan for the Gavilan Sanitary Sewer Pump Station FY26 and FY27 Activity Goals
Comply with state and federal regulations regarding the operation and maintenance of the sanitary sewer collection system 100% of the time.

Develop a comprehensive citywide sewer line flushing program based on industry standards to enhance system performance and prevent blockages.

Establish a targeted flushing program to address recurring hot spot issues, ensuring proactive maintenance and improved system reliability.

Install up to three additional SmartCovers within the Sanitary Sewer Collection System to better predict flow levels and prevent sanitary sewer overflows throughout the community.

Implement a manhole rehabilitation program to maintain optimal sewer flow to avoid backups.

Re-establish chemical root control treatment.

Financial/Budget Implications
Every five years, the City reviews water and sewer rates through a cost-of-service rate study. The City Council approved the most recent rate study recommendations on October 16, 2023, and the updated rates took effect on January 1, 2024. The rate study recommended annual increases from 2024 through 2028.

For FY26 and FY27 combined, the Wastewater Collections budget includes $240,000 for heavy equipment, $173,000 for vehicles, $150,000 for root control, $80,000 for Smart Covers, $510,000 for emergency services, and $385,000 for equipment and improvements.

City of Gilroy | FY26 and FY27 Recommended Budget Page 240

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
Linear Feet of Preventive
Sewer Line Cleaning
870,247 850,000 880,000 880,000 880,000
# of USA Locates Completed 1,848 1,750 2,100 2,000 2,000 # of Sewer Lateral/Main Line
Repairs
23 30 18 20 20
Linear Feet of Chemical Root
Control Treatment
0 15,700 0 31,600 31,600
Water
The Water Division is responsible for providing the residents and visitors with reliable and safe drinking water. It accomplishes this through the operation and maintenance of 9 drinking water wells,6 pump stations, 11 reservoirs, over 210 miles of pressurized pipeline ranging from 4” to 30” in diameter, over 15,730 water services ranging in size from ¾” up to 10”, and 2,320 fire hydrants. Meter readings are taken monthly, with 14,680 meters being read utilizing Advanced Metering Infrastructure (AMI), also known as a smart meter system, and 1,050 meters read with a drive-by radio read system. All large meters (4”-10”) are tested for accuracy annually. The Water Division performs all water sampling to ensure it is safe for drinking and meets federal and state regulatory requirements. Weekly bacteria samples are taken at multiple locations, totaling over 750 each year, and monthly source water sampling occurs at all well locations. Water quality results are documented and submitted to the State Water Resources Control Board (SWRCB). In addition, the Water Division manages multiple other tasks and programs, including the installation of water sample stations, steel service replacements, backflow prevention program, and water conservation.

FY24 and FY25 Highlights
The City's next proposed well, Well #9, is under development; a test well was drilled and water quality samples were collected. Well #3 has been upgraded with a programmable logic controller (PLC) and a new pump. PLCs are industrial digital computers used to automate and control various processes to improve efficiencies.

Upgraded water meters to advanced metering infrastructure (AMI), which reduced staff’s meter reading workload by 50%.

Successfully executed the full-scale implementation of the "Ignition" supervisory control and data acquisition (SCADA) system.

Upgraded PLCs at Well #4 and Booster Station #5.

Completed 90 steel service line replacements. Cumulatively, since 2020, 62% (288) of the 464 identified for replacement have been completed. The project is anticipated to finish ahead of the initially designated FY28 deadline.

Completed facility upgrades at all water sites, including site improvements and/or communication equipment upgrades.

Performed weekly microbiological and chemical water testing.

Completed lead service line inventory (LSLI) investigation and submitted to the state; added notification to the City website.

Began quarterly per- and polyfluoroalkyl substances (PFAS) testing at all wells. PFAS is a group of man- made chemicals found in many consumer products and is linked to various health problems when ingested in significant quantities. They are also known as "forever chemicals" because they break down extremely slowly over time.

City of Gilroy | FY26 and FY27 Recommended Budget Page 241

FY26 and FY27 Workplan
Perform lead and copper sampling and testing for triennial sampling and testing as required by SWRCB.

Perform bacteria and chemical sampling throughout the city for laboratory testing in accordance with federal and state regulations.

Perform quarterly PFAS testing to meet new federal and state legislative requirements.

Restart the fire hydrant flushing program.

Start the valve exercising program and map valve locations using the geographical information systems (GIS) software.

Upgrade 12 residential-style hydrants to commercial-style hydrants.

Upgrade meter shut-offs to meet new state standards (ball valves) Clean and inspect 11 reservoirs per the State of California in preparation for interior and exterior coatings.

Complete annual load bank testing for Well and Booster sites.

Rebuild 27 pump control valves.

Install a new 10” valve, 10” water meter, and meter bypass system for Saint Louis Regional Hospital.

FY26 and FY27 Activity Goals
Paint 330 hydrants annually, ensuring all 2,320 hydrants in the system are painted every seven years.

Test 100% of large meters (120) annually and perform repairs on those that fail.

Flush 100% of all 210 dead-end water lines for water quality purposes.

Upgrade 12 residential-style hydrants to commercial-style hydrants per year.

Complete 65 steel service replacements per year.

Upgrade 525 meters per year to AMI, in addition to routine maintenance and repairs.

Financial/Budget Implications
For FY26 and FY27 combined, the Water Division budget includes $455,000 for the steel service line replacements, $346,000 for vehicles, $389,000 for heavy-duty machinery, $100,000 for water sample laboratory testing, $550,000 for upgrading existing meters, and $350,000 for replacing broken meters and installing meters for new customers.

Workload Indicators
Measure
Actuals
FY24
Budget
FY25
Projected
FY25
Recommended
FY26
Recommended
FY27
# of Hydrants Replaced 4 12 12 12 12
# of Meter Shutoffs
Replaced
40 50 50 50 50
# of Steel Services
Replaced
65 50 25 65 65
# of Meter/AMI Repairs
and Radio Read to AMI
Conversion
600 615 615 615* 615*
# of Hydrants Flushed Operational
Needs Only
Operational
Needs Only
Operational
Needs Only
520 1,240
# of Blow-Offs Flushed 210 210 210 210 210
# of Large Meters Tested 115 120 120 120 120
Fire Hydrant Painting 112 300 300 330 330
# Valves Exercised 30 N/A 36 1,460 3,500
* This will complete the conversion from radio reading to AMI. The 615 total includes 525 conversions and 90 repairs to existing meters.

City of Gilroy | FY26 and FY27 Recommended Budget Page 242

UTILITIES DEPARTMENT CAPITAL IMPROVEMENT PROGRAM (CIP)
The Capital Improvement Program (CIP) is a strategic planning tool that is periodically updated to include new infrastructure to support changing community needs, prioritization of maintenance projects, and consideration of funding opportunities to ensure that infrastructure exists to support the community’s longterm goals and objectives. The Utilities Capital Improvement Program includes a multitude of water and sewer-related projects. Water projects range from new water sources (groundwater wells) to upgrading the water distribution infrastructure such as pipes, pump stations, reservoirs, and meters. Sewer collection projects include repairing and increasing the pipeline size where the community is outgrowing the capacity of existing infrastructure constructed decades ago. These projects are further illustrated in the Capital Improvement Program section of the budget book, under the Utilities Program, and are summarized at a high level below.

Type of Project Number of CIP Projects Total Budget for FY26 (M) Total Budget for FY27 (M) Sewer 10 $3.8M $9.5M
Water 20 $10.7M $5.9M
The SCRWA Wastewater Treatment Plant Expansion is an $82 million project anticipated to be completed in 2026. It will expand wastewater treatment capacity from the current 8.5 million gallons per day up to 11 million gallons per day to accommodate planned growth identified in the City of Gilroy's and City of Morgan Hill's Adopted General Plans.

The ongoing improvements at the SCRWA wastewater treatment plant will also enhance the capacity to produce recycled water. Recycled water produced by the SCRWA plant is wastewater that is improved through multiple levels of treatment and made safe for non-potable uses such as landscape irrigation, cooling towers, golf courses, and agriculture. SCRWA’s recycled water is rigorously monitored and treated to strict standards set by state and federal agencies. The benefits of recycled water include: conserves drinking water supplies, provides a dependable, drought-proof supply, and it is economically and environmentally sustainable. In 2024, the SCRWA treatment plant produced almost 800 million gallons of recycled water.

Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 243

Utilities Expenditures by Division/Function
2026 Recommended Expenditures by Function
WWWaaattteeerrr (((444666%%%)))
SSSeeewwweeerrr SSSyyysssttteeemmm (((333333...999%%%))) SSSeeewwweeerrr AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((111000...777%%%))) WWWaaattteeerrr AAAdddmmmiiinnniiissstttrrraaatttiiiooonnn (((999%%%))) BBBaaaccckkkflflflooowww PPPrrreeevvveeennntttiiiooonnn (((000...444%%%))) Expenditures
Sewer
Sewer
Administration
$4,077,359 $5,177,768 $4,518,389 $4,513,964 $4,680,308 $5,044,295 Sewer System $7,594,859 $8,979,274 $20,921,524 $17,237,428 $14,866,769 $19,348,498 Total Sewer: $11,672,218 $14,157,042 $25,439,913 $21,751,392 $19,547,077 $24,392,793 Water
Water
Administration
$2,505,890 $4,806,232 $3,608,779 $3,529,752 $3,944,633 $4,357,143 Water $8,393,463 $10,204,424 $31,576,497 $12,660,701 $20,140,163 $18,478,009 Backflow
Prevention
$137,591 $148,429 $191,876 $157,494 $179,909 $190,028
Total Water: $11,036,944 $15,159,086 $35,377,151 $16,347,947 $24,264,705 $23,025,180 Total Expenditures: $22,709,162 $29,316,128 $60,817,064 $38,099,339 $43,811,782 $47,417,973 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 244

Utilities Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((222555...888%%%))) IIInnnttteeerrrfffuuunnnddd TTTrrraaannnsssfffeeerrrsss (((222111...333%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((111777...888%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((111444%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((111222...888%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((888...444%%%))) Expense Objects
Personnel
Expenses
$4,413,583 $5,817,235 $7,233,928 $6,219,985 $5,588,659 $5,879,887 Materials and
Services
$2,005,007 $2,145,307 $3,263,577 $2,330,258 $3,668,250 $3,755,250 Capital Outlay -$1,150,358 -$287,043 $27,423,383 $3,155,501 $11,292,000 $12,684,372 Interfund
Transfers
$5,405,681 $6,975,428 $10,063,535 $13,715,851 $9,333,950 $9,958,181 Internal Services
Charges
$3,859,939 $5,332,866 $5,609,590 $5,610,244 $6,125,323 $6,898,683 Other Expenses
and Charges
$8,175,311 $9,332,335 $7,223,050 $7,067,500 $7,803,600 $8,241,600 Total Expense
Objects:
$22,709,162 $29,316,128 $60,817,064 $38,099,339 $43,811,782 $47,417,973 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 245

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Public Works
John Doughty
Public Works Director
Overall Department Description
The Public Works Department's core objectives are to promote safety, livability, and sustainability through the effective management of streets, parks, and related infrastructure. The Department is dedicated to excellence and integrity in all of its activities. Public Works is responsible for the maintenance, management, replacement and enhancement of City non-utility infrastructure, including streets, sidewalks, medians, parkways, trails/paths, urban forests, stormwater structures, parks, and related public infrastructure. The Department prepares, coordinates and implements the Capital Improvement Program (CIP) for all City nonutility infrastructure through the biennial development of a five-year CIP and the biennial Capital Budget.

The CIP is considered a strategic planning tool focusing on City-owned infrastructure, summarizing in one document the City's overall capital project needs and associated funding requirements during a five-year period. The Adopted FY24 to FY28 Capital Improvement Program is available as a separate document and was approved on June 5, 2023. The Department did a soft update to the CIP, and recommended changes are included in the FY26 and FY27 Recommended Budget. The next comprehensive five-year CIP will be prepared as a workplan item during FY26. Public Works reviews new developments to ensure that all new public infrastructure meets state, federal, and local regulations and standards.

The Public Works Department's Vision: Enhancing quality of life through excellent service, dedication, and organizational commitment.

The Department's Mission: Dedicated to integrity and fiscally responsible stewardship of the environment and public infrastructure through excellent and efficient customer service.

The Public Works Department includes the following divisions:

Administration and Engineering
Parks and Landscape Maintenance
Street Maintenance, Stormwater, and Forestry
Environmental Services
City of Gilroy | FY26 and FY27 Recommended Budget Page 246

Public Works Organizational Chart
City of Gilroy | FY26 and FY27 Recommended Budget Page 247

Public Works Expenditures by Division/Function
2026 Recommended Expenditures by Division/Function
LLLaaannndddssscccaaapppiiinnnggg (((333888...999%%%))) EEEnnngggiiinnneeeeeerrriiinnnggg (((333555...666%%%))) SSStttrrreeeeeettt MMMaaaiiinnnttteeennnaaannnccceee (((111999...777%%%))) EEEnnnvvviiirrrooonnnmmmeeennntttaaalll PPPWWW (((555...888%%%))) Expenditures
Environmental $199,492 $0 $0 $0 $0 $0
Landscaping $2,939,819 $2,927,752 $3,874,520 $3,530,251 $3,461,169 $3,551,421 Street
Maintenance
$1,157,166 $2,441,215 $5,187,745 $2,949,030 $1,750,397 $1,823,179 Engineering $2,410,568 $1,325,922 $1,616,424 $1,602,794 $3,162,016 $3,260,212 Environmental
PW
$0 $198,557 $294,640 $223,921 $515,617 $524,367
Total Expenditures: $6,707,045 $6,893,445 $10,973,329 $8,305,996 $8,889,200 $9,159,178 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 248

Public Works Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((555999...333%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((222777...555%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((777...111%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((555...666%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((000...555%%%))) Expense Objects
Personnel
Expenses
$2,401,856 $2,338,326 $3,117,015 $2,931,723 $5,274,506 $5,480,111 Materials and
Services
$2,303,292 $2,166,334 $2,863,789 $2,898,520 $2,443,415 $2,477,629 Capital Outlay $1,416,982 $1,938,058 $4,487,592 $1,970,820 $500,000 $505,512 Internal Services
Charges
$584,916 $450,728 $504,933 $504,933 $630,279 $654,926
Other Expenses
and Charges
$0 $0 $0 $0 $41,000 $41,000
Total Expense
Objects:
$6,707,045 $6,893,445 $10,973,329 $8,305,996 $8,889,200 $9,159,178 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 249

Administration and Engineering
John Doughty
Public Works Director
Description
The purpose of the Administration and Engineering Division is to promote a safe, efficient, and attractive community for those who live, work, and visit the City of Gilroy. The Division achieves this through the provision of quality and cost-effective maintenance and operations, and construction of public infrastructure, including streets, sidewalks, parks, facilities, stormwater facilities, landscaping, and other public non-utility infrastructure within City limits. The division also coordinates and collaborates with state and regional agencies on programs and projects that may affect the City and its infrastructure. The Division plays a significant part in maintaining orderly growth and development within the City through its role in the development review, permitting, and inspection process. The Division oversees the design and construction of high-quality and sustainable City infrastructure, provides guidance on maintenance operations, and manages and implements the City’s five-year Capital Improvement Program and biennial Capital Budget.

FY24 and FY25 Highlights
Managed individual capital improvement projects from the initial planning to project delivery.

Received Measure B Highway Program funding for the design and environmental process of the Highway 101/10th Street - SR 152 Interchange. Design was initiated, and City staff are participating in the process.

Reestablished City participation in various Valley Transportation Authority subcommittees, including the Capital Improvement Program, Level of Service and Vehicle Miles Traveled, Land Use and Transportation, and Systems Operations Management Committee.

Completed the City of Gilroy Gourmet Alley and downtown parking lot Project.

Completed the construction of the City Hall Back-Up Generator Project.

Completed the construction of the FY23 and FY24 Citywide Pavement Maintenance Projects.

Commenced the design (95% construction plans) for the installation of a High Intensity Activated Crosswalk Signal (HAWK) adjacent to the Gateway Senior Apartments on Monterey Road between 10 Street and Luchessa Avenue, utilizing awarded state and federal grant funds.

Completed the design for a new Traffic Signal Installation at First & Kern. Staff is currently working with Caltrans to finalize plans, obtain an encroachment permit, and solicit bids.

Completed the design for a new Traffic Signal at Church & Luchessa, with plans to solicit construction and installation bids in the Summer of 2025.

Completed the design for a new Traffic Signal at Monterey and IOOF. Staff is currently working with Union Pacific Railroad (UPRR) to finalize construction documents and obtain a UPRR permit, as necessary.

Completed the Downtown Parking Management Plan.

Commenced an update to the City's Traffic Circulation Master Plan and Traffic Impact Fee (TIF) Program.

Modified the Traffic Signal at 3 & Wren to provide dedicated left turn lanes on 3rd Street and to improve pedestrian safety.

Constructed the FY25 Citywide Sidewalk Replacement Project.

Designed and solicited bids for the FY25 Pavement Project. Pending Council award, the project is anticipated to commence in the Summer of 2025.

Completed two, four-way stop intersection improvements (Church and 7 Street/3 Street and Eigleberry).

Participated in the development and migration to a Land Use Management System (EnerGov) with Community Development.
th
rd
th rd
City of Gilroy | FY26 and FY27 Recommended Budget Page 250

FY26 and FY27 Workplan
Update the Department's comprehensive fee schedule for application processing by June 30 of each fiscal year.

Represent the City to the Valley Transportation Authority Technical Advisory Committee by attending the monthly committee meetings to ensure the City receives the appropriate funding levels to further transportation enhancement efforts.

Operate a Neighborhood Traffic Management Program in conjunction with the Police Department to evaluate traffic concerns submitted by residents in a creative and innovative manner that promotes solutions to neighborhood traffic issues while maintaining public safety through best practice traffic standards.

Provide traffic, engineering and infrastructure planning services for the High Speed Rail Station Area Planning grant.

Design, bid and construct the FY26 and FY27 Annual Sidewalk Replacement Projects.

Design, bid, and construct the FY25 through FY27 Annual Citywide Pavement Projects.

Construct new Traffic Signals at Church & Luchessa, Monterey & IOOF and First & Kern.

Manage the State's Municipal Discharge Elimination Permit for point source and non-point source pollution sources.

Complete the update to the Traffic Circulation Master Plan, nexus study and update of Transportation Impact Fee(s).

Continue to participate in the Highway 101/10 Street - SR 152 interchange project. Work with Frontier Communications to review and permit their plans to install a high-speed fiber optic backbone system in Gilroy.

Prepare the next comprehensive Five-Year Capital Improvement Program.

FY26 and FY27 Activity Goals
Successfully deliver the planned CIP projects in the two-year period.

Update the Division's Standard Plans, Specifications and Standard Details and other Standard Operating Procedures for efficiencies.

Participate in the regional advisory committees and advocate for resources to be allocated in the South County.

Development and adoption of the next comprehensive five-year CIP program.

Financial/Budget Implications
Activities for this Division are funded through the General, Special, Capital and Grant Funds, with revenue from application fees for development review, plan check and inspections, regional intergovernmental allocations, and CIP administration overhead.

As a result of the recent establishment of the separate Utilities Department, the Public Works Department's recommended budget includes adjustments to personnel and funding allocations to effectuate the separation of duties and certain roles, notably in the Engineering Division for delivery of the non-utilities capital improvement program.
th
City of Gilroy | FY26 and FY27 Recommended Budget Page 251

Public Works Administration and Engineering Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((888666...666%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((777...444%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((666%%%))) Expense Objects
Personnel
Expenses
$844,927 $902,399 $890,827 $871,151 $2,739,868 $2,829,414 Materials and
Services
$114,204 $81,800 $441,786 $447,842 $188,696 $189,635
Capital Outlay $1,335,165 $224,887 $150,010 $150,000 $0 $0 Internal Services
Charges
$116,272 $116,837 $133,801 $133,801 $233,452 $241,163
Total Expense
Objects:
$2,410,568 $1,325,922 $1,616,424 $1,602,794 $3,162,016 $3,260,212 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 252

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Parks and Landscape Maintenance
Matt Jones
Deputy Director of Public Works
Description
The purpose of the Parks and Landscape Division is to maintain all City parks, trails, pathways, landscaped facilities (fire stations, civic center, police facilities), and landscaped roadways; with emphasis on gateway locations, downtown, median islands, sound walls, and civic entryways. Work ensures these facilities are in a safe condition and are a benefit to residents and visitors alike. The Division also provides services to the Deer Park and Citywide Community Facilities Districts (CFD).

FY24 and FY25 Highlights
Supported the Parks and Recreation Commission.

Renewed City-wide and Deer Park Community Facilities Districts (CFDs) routine landscape maintenance contract services.

Updated City-wide landscape contract standards with the required State regulations for stormwater detention basins.

Completed restroom improvements at Las Animas Veterans Park and San Ysidro Park.

Renewed City-wide contract to repair concrete walkways within parks.

Removed and installed a new restroom at Christmas Hill Mulberry picnic area.

Installed an all-inclusive play structure at Donald Elvis Prieto Downtown Pop-Up Park.

Installed picnic tables, park benches, trash receptacles and musical play equipment at the Donald Elvis Prieto Downtown Pop-Up Park.

Refurbished the handball courts at San Ysidro Park.

Re-seeded the sports fields at Christmas Hill Park Ranch site and Las Animas Park.

Planted 13 large trees at the 3 Street Dog Park as part of Arbor Day recognition.

Refreshed the Gilroy Garlic Festival Memorial and planted four (4) large oak trees at the site.

Planted thirty (30) trees around the perimeter of the horse arena at the Christmas Hill Park Ranch site.

FY26 and FY27 Workplan
Conduct City Park Trees Assessment to better plan for the care and maintenance of the urban forest as well as the proper replacement or removal as needed.

Implement maintenance of Gourmet Alley including litter removal and cleaning of solid waste enclosures.

Rehabilitation of baseball and softball infields; fencing, base pegs, infield field, backboards, backstops, and remaining bleachers.

Park restroom and hardening improvements at San Ysidro Park, Las Animas Park, and Christmas Hill Park
Provide construction management assistance on San Ysidro Park playground upgrades.

Implement Park playground regular replacements and upgrades to existing parks.

Continue parks sports court maintenance and re-striping.

FY26 and FY27 Activity Goals
Continue to implement downtown sidewalk cleaning services on Monterey Street (4th to 8th Streets).

Rehabilitate baseball and softball infields, including fencing, backstops, and bleachers.

Complete restroom upgrades at San Ysidro, Las Animas, and Christmas Hill Parks.

Complete upgrades of aging playground equipment across multiple parks. rd
City of Gilroy | FY26 and FY27 Recommended Budget Page 253

Financial/Budget Implications
Increased Equipment Rental Costs $15,000 per year to meet operational demands caused by aging fleet, deferred maintenance and specialized needs in parks.

General Fund contribution of $500,000 per year to use for various Parks and Landscape Infrastructure Improvements.

Parks and Landscape Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((555000...333%%%))) PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((333111...666%%%))) CCCaaapppiiitttaaalll OOOuuutttlllaaayyy (((111222...111%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((666%%%))) Expense Objects
Personnel
Expenses
$1,009,050 $943,580 $1,106,174 $1,071,351 $1,311,946 $1,381,903 Materials and
Services
$1,845,979 $1,861,510 $2,538,947 $2,432,040 $2,086,154 $2,093,939 Capital Outlay $17,493 $296,037 $730,516 $419,589 $500,000 $505,512 Internal Services
Charges
$414,368 $223,475 $246,790 $246,790 $250,957 $262,118
Total Expense
Objects:
$3,286,890 $3,324,601 $4,622,427 $4,169,770 $4,149,057 $4,243,472 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 254

Street Maintenance, Stormwater, and Forestry
Matt Jones
Deputy Director of Public Works
Description
The purpose of the Street Maintenance Division is to maintain the City's streets and associated rights-of-way in a clean, functional, and safe condition and oversee the City's street tree maintenance program with the goal of maintaining the City's urban forest in an environmentally sustainable manner.

FY24 and FY25 Highlights
Street sweeping services were provided in locations not covered under solid waste contracts, including medians, traffic islands, and in response to traffic accidents.

Provided graffiti removal at 18 locations and removal of garage sale signs, shopping carts, and other aesthetic nuisances.

Provided operational support and onsite traffic control to the city and downtown special events. Streets crews assisted with the following events: Spring Sidewalk Sale, Summer Concert Series, Car Show, Holiday Parade and Tree Lighting, Harvest Festival and Tamal Festival. In addition, operational support was also provided for Mattress Recycling Event, Chalk Festival, Craft-Vendor Fair, Veterans Day Parade, Dia De Los Muertos, Gourmet Alley, and Wine and Hop.

Completed the Storm Drain Annual Inlet Cleaning Program which is important to prevent pollution and containments from entering the City's waterways and prevents blockages from disrupting the flow of water. "Hot Spots" Zones lA to 4B (core of the city) estimated 750 storm inlets.

Responded to 79 sign requests, weekly trash and debris removal requests, numerous potholes, shopping cart removal requests, 28 tree removals, and 1,400 tree trimmings and roadway flooding requests.

Implemented a full-time Citywide trash program to remove debris from rights-of-way.

Completed three storm drain main line repairs.

FY26 and FY27 Workplan
Maintain scheduled City rights-of-way including weed spraying and mowing.

Create an annual road maintenance program to ensure the long-term viability of paved surfaces, including crack seal and pothole repair on residential streets.

Initiate work on regulatory sign assessment and replacement program.

Maintain the City's Storm Drainage System, including clearing catch basins and the inlet cleaning program according to schedule.

Maintain and oversee the City's Street Tree Program, including the Elm Tree Program, planting and replacement of street trees, removal of dead or diseased trees, limited pest control activities, tree inspections, coordination of tree placement and planting within new development as well as conducting pruning activities.

Maintain street legends, signs, markings, and painting according to schedule.

Provide emergency response to hazardous conditions, including downed trees and limbs, hazardous material spills, Fire and Police Department response requests, traffic control and other requested services within 30 minutes of request during working hours and one hour of request during off-hour call-outs.

Provide for the removal of garage sale signs and graffiti, as well as other aesthetic nuisances.

Provide operational support and traffic control for special event requests from the community.

Fully implement the City's Computer Maintenance Management System (CMMS) to automate the tracking of City assets such as streets, street signs, striping, debris removal, graffiti removal, and any associated maintenance efforts.

Implement an eight (8) year grid trimming cycle for City Street trees.

City of Gilroy | FY26 and FY27 Recommended Budget Page 255

FY26 and FY27 Activity Goals
On-going update of the inventory of city trees (parks, fire stations, other city facilities, and open spaces) into a database to get an accurate count for the Urban Forest. Staff utilizes the total count of the inventory to develop comprehensive maintenance programs and project contracting costs.

Full implementation of the Computer Maintenance Management System (CMMS) to other programs.

Refresh curb markings, stop bars, lead lines and crosswalks within school zones. Coordinate with Public Works Engineering Department on the Capital Improvement Plan and Street Rehabilitation Program.

Implement an asphalt hot mix program targeting potholes, skin patching and roadside curb patching.

Continue the removal of debris in the right-of-way.

Create and implement a leaf removal program.

Create and implement a Street Sign program to update street signs to the correct font, font size and sign size.

Create an annual striping and road marking program to refresh areas such as School zones, crosswalks and around City Parks.

Financial/Budget Implications
None.

Street Maintenance Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((666000...555%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((333000...666%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((888...999%%%))) City of Gilroy | FY26 and FY27 Recommended Budget Page 256

Expense Objects
Personnel
Expenses
$547,879 $469,701 $855,581 $829,362 $1,058,370 $1,102,354 Materials and
Services
$496,833 $423,800 $514,741 $573,080 $536,127 $558,359
Capital Outlay $64,324 $1,417,134 $3,672,066 $1,401,231 $0 $0 Internal Services
Charges
$48,131 $130,580 $145,357 $145,357 $155,900 $162,466
Total Expense
Objects:
$1,157,166 $2,441,215 $5,187,745 $2,949,030 $1,750,397 $1,823,179 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 257

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Environmental Services
Mark Johnson
Environmental Programs Manager
Description
The Environmental Services Division is responsible for ensuring compliance with state and federal environmental regulations, including Water Board (state and federal) stormwater requirements and solid waste (CalRecycle) mandates and managing the City’s franchise agreement with Recology South Valley, the City's current Franchise Waste Hauler. The Division develops, implements, and manages programs that facilitate meeting regulatory obligations while maintaining essential environmental standards. Through these efforts, the Division works to protect public health, water quality, and waste management systems in accordance with applicable laws. Environmental Services coordinates with Recology South Valley on various elements, including community outreach, implementation of existing/new regulations, and response to public inquiries. Our efforts serve to promote environmental and fiscal sustainability through the reduction of waste and the conservation of resources.

FY24 and FY25 Highlights
Initiated enforcement activities as required under California Senate Bill (SB) 1383, a State law mandating organics recycling. Efforts included significant outreach and education to residents before enforcement commenced in 2024.

Applied for and received grant approval to fund 100% of the costs of purchasing and installing electric vehicle chargers at the Gilroy Community Library.

Reviewed and approved the annual rate increase with Recology South Valley for solid waste services pursuant to the Council-approved franchise agreement.

Developed partnerships with local, regional, and state agencies to enhance environmental initiatives.

FY26 and FY27 Workplan
Develop an implementation plan to address the multi-year State Trash Amendments Stormwater Compliance project, ensuring adherence to state-mandated deadlines and performance requirements.

Prepare for the Jurisdictional and Agency Compliance and Enforcement Branch audit of the City’s SB 1383 programs, including compliance with the paper procurement and post-consumer recycled content requirements, as well as organics recycling and waste reduction mandates.

Prepare for the implementation of the new Phase II MS4 Permit, expected to introduce updated regulatory requirements. This includes assessing necessary programs modifications, updating compliance strategies, and ensuring the City remains in good standing with state and regional water board regulations.

Integrate environmental reporting responsibilities into the City’s new Tyler software system to improve data management, streamline reporting processes, and enhance compliance tracking.

Staff will be presenting a comprehensive overview of State and federal regulations shaping the FY26 and FY27 environmental compliance workplan, and seek City Council's policy direction regarding the City's compliance efforts and potential implementation measures.

City of Gilroy | FY26 and FY27 Recommended Budget Page 258

FY26 and FY27 Activity Goals
Maintain compliance with SB 1383, stormwater, and solid waste regulations.

Initiate the next phase of the City’s Statewide Trash Amendments compliance activities.

Continue collaboration with regional and state partners to strengthen environmental program delivery.

Advance long-term planning efforts to align program goals with evolving state mandates and available resources.

Financial/Budget Implications
Municipal Separate Storm Sewer System (MS4) Permit fee paid to the State Water Resources Control Board in the amount of $28,112 (FY26) and $28,955 (FY27).

Contract for MS4 Permit Inspection and Reporting services in the amount of $81,385 (FY26) and $83,827 (FY27).

Contract with Santa Clara County for Hazardous Household Waste Collection for Gilroy residents in the amount of $41,000 each year.

Environmental Services Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
PPPeeerrrsssooonnnnnneeelll EEExxxpppeeennnssseeesss (((444999...555%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((333999...777%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((888%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((222...888%%%))) Expense Objects
Personnel
Expenses
$0 $22,647 $264,433 $159,859 $255,294 $260,328
Materials and
Services
$192,676 $175,910 $30,207 $64,062 $204,907 $208,192
Internal Services
Charges
$6,816 $0 $0 $0 $14,416 $14,847
Other Expenses
and Charges
$0 $0 $0 $0 $41,000 $41,000
Total Expense
Objects:
$199,492 $198,557 $294,640 $223,921 $515,617 $524,367
Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026 Recommended
Budget
FY2027 Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 259

Capital Improvement Program
John Doughty
Public Works Director
Description
Public Works designs, builds and maintains the City’s storm drain, street, sidewalk, park, landscape, urban forest, and related infrastructure. The Department prepares and coordinates the Capital Improvement Program (CIP) for all City infrastructure through the biennial development of a Five-Year CIP. The Program is considered a strategic planning tool focusing on City-owned infrastructure, summarizing in one document the City’s overall capital project needs and associated funding requirements, during a five-year period. The Adopted FY24 to FY28 Capital Improvement Program is available as a separate document and was approved on June 5, 2023. The Department did a soft update to the CIP and recommended changes are included in the FY26 and FY27 Recommended Budget. The next comprehensive five-year Capital Improvement Program will be conducted as a workplan item during FY26.

The section highlights the Department's various special revenues and capital project funds. These include transportation-related special revenue funds, development impact fee funds, and other capital project funds.

The Capital Improvement Program includes:

Development Impact Fee Funds
Transportation Special Revenue Funds
Other Capital Project Special Revenue Funds
City of Gilroy | FY26 and FY27 Recommended Budget Page 260

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Development Impact Fee Funds
John Doughty
Director of Public Works
Description
Development impact fees are collected and used to provide expanded capital infrastructure needs that are caused by new development in the community. The fees collected are based on an analysis of the impacts of development, called a nexus study. The City of Gilroy has a handful of development impact fees that address a myriad of services. The development impact fee funds include:

Fund Number Fund Name
410 Storm Drain Development Impact Fee
420 Street Trees Development Impact Fee
425 Traffic Development Impact Fee
430 Sewer Development Impact Fee
435 Water Development Impact Fee
440 Public Facilities Development Impact Fee
STORM DRAIN DEVELOPMENT IMPACT FEE (410)
This fund provides for the construction of drainage collection and conveyance systems in conformance with the Gilroy Storm Drainage Master Plan in order to accommodate development of new residential, commercial, and industrial uses as well as expand system capacity. Projects are identified and undertaken in compliance with updated and approved master plans based on population projections, the General Plan policies, land use needs, and other standards approved by the City Council.

FY26 and FY27 Work Plan
Deliver CIP projects identified in the City’s Storm Drainage Master Plan.

Design and construction of the storm drain line extension on Church Street south of Seventh Street.

This project includes an installation of a new 12” storm drain pipe and the associated catch basins.

Design and construction of two new storm drain catch basins at the intersection of Monterey and Luchessa to mitigate surface ponding during rain events.

Design and construction of the storm drain improvements at Cohansey Avenue/Terri Court and storm drain rehabilitation at the intersection of Miller Avenue and Third Street.

FY26 and FY27 Activity Goals
Identify current ponding areas associated with increased impervious areas and prioritize improvements to correct drainage issues.

Financial/Budget Implications
Projects implemented through this program are funded through developer impact fees.

STREET TREES DEVELOPMENT IMPACT FEE (420)
The Street Tree Development Impact Fee Fund collects a fee to plant trees in new developments. There are no planned projects or activities for the FY26 and F27 biennial budget.

TRAFFIC DEVELOPMENT IMPACT FEE (425)
This fund provides for the construction of streets, bridges, interchanges, and traffic signals as identified in the City's General Plan Circulation Element to accommodate development of new residential, commercial City of Gilroy | FY26 and FY27 Recommended Budget Page 261

and industrial uses for the purpose of expanding transportation system capacity. Projects are completed in conformance with approved master plans based on the General Plan, population projections, land use, and other standards approved by the City Council.

FY24 and FY25 Highlights
Worked with the Santa Clara County Valley Transportation Authority to convert traffic evaluation criteria for California Environmental Quality Act from Level of Service to Vehicle Miles Traveled. Worked with the City’s Transportation Consultants to finalize the update of the City’s Traffic Forecast Model.

Participated in the Valley Transportation Authority Mobility Partnership Committee in the planning for the Highway 101- SR25 Interchange Improvements.

Reimbursed Traffic Impact Fund fees for two developer-constructed transportation projects after final inspection acceptance and thorough review of supporting documentation.

Continued design of the Tenth Street and Uvas Creek Bridge.

FY26 and FY27 Work Plan
Work with developers to install various identified traffic improvement projects when warranted. This includes the traffic signal improvement at First and Kern, Luchessa and Church, Mantelli and Kern, Monterey and IOOF, and Automall and Luchessa.

Provide reimbursements to developers for public improvements based on the City’s Traffic Impact Fee Reimbursement Procedures/Criteria.

FY26 and FY27 Activity Goals
Update the Traffic Circulation Master Plan and Traffic Improvement Fee Program in conformance with the 2040 General Plan.

Update list of Traffic Impact Fund projects based on implementation of the Urban Service Boundary.

Update individual project costs based on current construction value.

Update Traffic Impact Fee based on updated valuation of projects.

Update Traffic Impact Fee Reimbursement Procedures/Criteria based on a review of Best Management Practices from surrounding cities.

Update the Nexus Study and Traffic Impact Fund Program based on the updated Traffic Master Plan.

Financial/Budget Implications
None
SEWER DEVELOPMENT IMPACT FEE (430)
This fund provides for the construction of expanded sewer collection, treatment, and conveyance systems as identified in the Sewer Master Plan, to accommodate the development of new residential, commercial, and industrial uses based on standards adopted by the City Council.

FY24 and FY25 Highlights
Issued Request for Proposal and received proposal for the design of the Master Plan Projects - Sewer Improvements Project (CIP 800970). The Sewer Improvements Project is a $15 million project to implement over 5 years the improvements recommended in the 2023 Sewer Master Plan. This project will add conveyance capacity to the sewer trunk system and alleviate some of the surcharges that occur in various areas of the City
Continue construction of the South County Regional Wastewater Authority Treatment Plant Expansion.

The expansion project increases the treatment capacity from 8.5 to 11 million gallons per day to support the planned growth outlined in the General Master Plans for the City of Gilroy and City of Morgan Hill.

Awarded the design of emergency/intermediate repairs to the Joint Gilroy/Morgan Hill Trunk Line.

City of Gilroy | FY26 and FY27 Recommended Budget Page 262

FY26 and FY27 Work Plan
Plan, design, and construct capital projects based on the 2023 Sewer Master Plan.

The Public Works and Utilities Departments will collaborate on developer-driven infrastructure projects where reimbursements are warranted.

FY26 and FY27 Activity Goals
Design and deliver high-priority projects identified in the Sewer System Master Plan.

Proposed projects include:

Carmel-Dowdy Alley – Sixth to Seventh Sewer Replacement Monterey and Princevalle Sewer Network
Seventh St – Carmel-Dowdy to Hanna-Rosanna Alleys Sewer Replacement Complete the Wastewater Treatment Plant Expansion (SCRWA) project.

Complete the design and construction of emergency repairs to the Joint Gilroy/Morgan Hill Trunk Line, as identified through recent study
Financial/Budget Implications
Projects completed are funded through developer impact fees, which are periodically reviewed and updated based on the cost of service.

WATER DEVELOPMENT IMPACT FEE (435)
This fund provides for the construction of improvements and expansion of water production, transmission, distribution and storage within the water system as described in the Water System Master Plan. These identified improvements are necessary to accommodate the capacity requirements of new residential, commercial and industrial uses in accordance with the General Plan and other standards established by the City Council.

FY24 and FY25 Highlights
Proceeded with acquiring the parcel at McCarthy Park to install Well 9 and design the associated facilities, as outlined in the 2003 Water System Master Plan.

FY26 and FY27 Work Plan
Plan, design, and deliver capital projects based on the 2023 Water System Master Plan.

The Public Works and Utilities Departments will collaborate on developer-driven infrastructure projects where reimbursements are warranted.

FY26 and FY27 Activity Goals
Design and deliver high-priority projects identified in the Water System Master Plan.

Proposed projects include:

Begin construction of a new well east of US 101 on the McCarthy site – Well #9.

Initiate the Master Plan Projects – Water Improvements.

Financial/Budget Implications
Projects completed are funded through developer impact fees, which are periodically reviewed and updated based on the cost of service.

City of Gilroy | FY26 and FY27 Recommended Budget Page 263

PUBLIC FACILITIES DEVELOPMENT IMPACT FEE (440)
The purpose of this fund is to finance the construction of parks, police, fire, and other City facilities as described in the City of Gilroy’s Public Facilities Master Plan. These improvements to public facilities are completed in order to accommodate and provide service as a result of new residential and commercial development.

FY26 and FY27 Work Plan
Design and construct site improvements to support a new Gilroy Ice Center facility at the Gilroy Sports Park.

Complete right-of-way acquisition needed to construct expanded Gilroy Sports Park/Ice Center access drive.

Design and construct the Gilroy Ice Center to be funded by Bond Proceeds.

Complete the Civic Center Master Plan.

FY26 and FY27 Activity Goals
Construct the Gilroy Ice Center facility at the Gilroy Sports Park.

Financial/Budget Implications
Activities performed by this fund are paid for by fees applied to new development.

Development Impact Fee Funds Expenditure by Fund
2026 Recommended Expenditures by Fund
PPPuuubbbllliiiccc FFFaaaccciiillliiitttiiieeesss IIImmmpppaaacccttt FFFuuunnnddd (((666000...444%%%))) TTTrrraaaffiffifficcc IIImmmpppaaacccttt FFFuuunnnddd (((111666...777%%%))) WWWaaattteeerrr DDDeeevvveeelllooopppmmmeeennnttt FFFuuunnnddd (((111000...666%%%))) SSSeeewwweeerrr DDDeeevvveeelllooopppmmmeeennnttt FFFuuunnnddd (((999...666%%%))) SSStttooorrrmmm DDDrrraaaiiinnn DDDeeevvveeelllooopppmmmeeennnttt FFFuuunnnddd (((222...777%%%))) SSStttrrreeeeeettt TTTrrreeeeee DDDeeevvveeelllooopppmmmeeennnttt FFFuuunnnddd (((000...000000777%%%))) City of Gilroy | FY26 and FY27 Recommended Budget Page 264

Storm Drain
Development Fund
$2,739 $7,038 $470,233 $760 $922,642 $220,875
Street Tree
Development Fund
$0 $238 $2,248 $2,248 $2,289 $2,303
Traffic Impact Fund $4,040,371 $2,847,825 $11,034,141 $3,174,233 $5,597,457 $3,523,475 Sewer Development
Fund
$1,563,218 $1,517,357 $3,709,109 $2,288,317 $3,229,571 $4,837,120 Water Development
Fund
$308,064 $16,491 $3,215,053 $1,357,705 $3,545,645 $976,702 Public Facilities
Impact Fund
$3,255,817 $3,500,178 $18,219,529 $5,232,685 $20,300,998 $20,246,420 Total: $9,170,210 $7,889,128 $36,650,313 $12,055,948 $33,598,602 $29,806,895 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 265

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Transportation Special Revenue Funds
John Doughty
Public Works Director
Description
The Transportation Special Revenue Funds are those funds that pay for improvements to the streets, roads, sidewalks, streetlights, and other components that facilitate transportation for motorists throughout the City.

The only exception to this is the Traffic Development Impact Fee Fund, which is included under the Development Impact Fee Funds. The special revenue funds assembled into this category include:

Fund Number Fund Name
200 Sidewalk Repair Reserve
202 Downtown Parking Management Fund
205 Gas Tax Funds
210 Road Maintenance and Rehabilitation (SB1)
212 Local Streets and Roads (Measure B)
215 Transportation Grants
220 Vehicle Registration Fees
SIDEWALK REPAIR RESERVE (200)
This fund provides for the removal and replacement of damaged sidewalk, curb, and gutter, and street trees with new concrete, including Americans with Disabilities Act (ADA) curb ramps, in order to enhance pedestrian travel ways and promote obstruction-free access throughout the City.

FY24 and FY25 Highlights
Managed the Annual Shared-Cost Sidewalk Replacement Program—including project management of the program, resident application reviews, coordination of site meetings with property owners, oversight of the bidding process per the City’s policy, and site inspections. The purpose of this program is to assist property owners in maintaining their sidewalks in a safe manner. The current program reimburses 50% of the sidewalk repair cost and 100% of any other repairs in the City’s right-of-way, including curb and gutter, driveway approach, street repair, tree removal (if warranted), and replacement.

Researched Sidewalk Replacement Program Best Management Practices (BMPs) from other cities to provide guidance and background for modification of Gilroy’s Sidewalk Replacement Program.

FY26 and FY27 Work Plan
Repair sidewalks, curbs and gutters by working with property owners to qualify them for participation in the City's Annual Shared-Cost Sidewalk Replacement Program in each fiscal year.

Update the Annual Shared-Cost Sidewalk Replacement Program based on a review of best practices from neighboring cities.

Complete the design and construction of sidewalk gap closures as well as defective and damaged sidewalks, curbs and gutters with new concrete including ADA curb ramps in order to enhance pedestrian travel ways and promote obstruction-free accessways at designated locations throughout the City each fiscal year.

FY26 and FY27 Activity Goals
Revamp and improve the City’s Sidewalk Replacement Program based on review of BMPs from surrounding communities to expand coverage of the program, including at least 40 repairs each fiscal year.

City of Gilroy | FY26 and FY27 Recommended Budget Page 266

Design and deliver sidewalk projects to close current gaps in the pedestrian network.

Financial/Budget Implications
The City’s sidewalk program is funded through annual General Fund contributions of $250,000 to this fund established by Council policy.

Revisions to the City Sidewalk Replacement Program will be funded through this fund.

DOWNTOWN PARKING MANAGEMENT FUND (202)
This fund was established to account for downtown parking programs. The funding for this project was derived from a one-time investment by the General Fund to study the Downtown Parking and establishment of related activities.

FY24 and FY25 Highlights
Completed Downtown Parking Management Plan.

Performed public outreach to determine downtown parking concerns.

Financial/Budget Implications
The Plan indicated no significant issues with downtown parking and no further enforcement activities are planned. As such, the project and this fund will be closed out in FY25.

GAS TAX FUND (205)
Gas Tax Funds are used to maintain the City's street infrastructure with chip seal, sidewalk, and street repair projects including traffic signals, streetlight repair and maintenance that enhances multiple modes of transportation for Gilroy residents, along with the implementation of projects required by the Congestion Management Authority.

FY24 and FY25 Highlights
Completed design and construction of the FY24 Pavement Maintenance Project using City Councilapproved General Funds and Gas Tax Funds.

Award FY25 Pavement Maintenance Project.

Implemented the Sidewalk Condition Assessment through targeted sidewalk and curb ramps in need of repair.

Management of the annual traffic signal and street lighting contracts.

Management of the annual Citywide striping contracts.

Completed curb ramp retrofits and replacements under the Annual Curb Ramps Citywide project and the Annual Pavement Maintenance under various funding sources which includes Gas Tax Funds.

FY26 and FY27 Work Plan
Manage the City’s pavement management system, which has a goal to achieving a pavement condition index (PCI) of 70 or better, which serves as a standard established by a consortium of nine Bay Area counties.

Ensure that 95% of all service calls for traffic signals and streetlights are responded to within two hours for emergencies and five working days for non-emergencies.

Manage a program to provide maintenance of the City streets through surface seal, asphalt overlay, and pothole repair programs each fiscal year.

Apply for grants, including state and federal funding, as they become available in accordance with grant application guidelines.

FY26 and FY27 Activity Goals
Incorporate and promote recycled materials in all of the City's street construction projects.

City of Gilroy | FY26 and FY27 Recommended Budget Page 267

Install approximately 30 ADA ramps each year along Circulation Element pedestrian transportation routes to promote east-west and north-south disabled pedestrian travel routes.

Deliver the Annual Citywide Curb Ramp Project to install/reconstruct ADA curb ramps along high-use pedestrian routes including around schools, parks, downtown, etc.

Contract for miscellaneous citywide striping and marking improvements.

Financial/Budget Implications
While Gas Tax revenue has been historically consistent, the challenge still remains as the gap between available funding and deferred maintenance and operations needs continues to grow. It is unclear how EV conversion will impact the Gas Tax Fund. The City’s long-term goal of maintaining streets is highly dependent on this funding. Gas Tax funds are supplementing various streets-related capital projects.

ROAD MAINTENANCE AND REHABILITATION (SB1) FUND (210)
This fund was established to account for funding via Senate Bill 1, the Road Repair and Accountability Act of 2017 (SB 1), which was signed into law on April 28, 2017. This legislative package invests $54.0 billion in transportation improvements. A portion of these funds are distributed to cities and counties, and a subset of that portion is allocated to the City of Gilroy. SB 1 will enable cities to address significant maintenance, rehabilitation and safety needs of their local street and road system. SB 1 is anticipated to generate approximately $1.5 billion per year. The City receives approximately $1.0 million annually. The City is currently evaluating various road improvement options to maximize the effective use of these funds. SB1 funds are being utilized to supplement streets-related capital projects.

FY24 and FY25 Highlights
Completed design, bid, and construction of the FY24 Pavement Rehabilitation Project.

Awarded the FY25 Pavement Rehabilitation Project - SB1 funded portion.

FY26 and FY27 Work Plan
Design, bid, and construct the FY26 and FY27 Annual Citywide Pavement Rehabilitation Project - SB1 funded portion.

FY26 and FY27 Activity Goals
Deliver the FY26 and FY27 Citywide Pavement Rehabilitation Project.

LOCAL STREETS AND ROADS (MEASURE B) FUND (212)
This fund was approved by voters in 2016. Measure B is a Santa Clara County funding measure for transportation projects initiated by the Santa Clara Valley Transportation Authority (VTA). As part of that measure, a portion of the funding is provided to local municipalities, including Gilroy, to improve local streets and roads. The City will receive approximately $1.0 million annually in Local Streets and Roads Program (LS&R) funds to use on road maintenance, repairs, and improvements. Funding also included a catch-up portion in addition to the annual entitlement. As with the Road Maintenance and Rehabilitation Fund, this is a new fund, and the City is similarly evaluating options to effectively use these funds. In FY26 and FY27, staff will continue to deliver the Council adopted five-year street repair program, using Measure B funding, to improve the City’s roadway condition and improve the City’s overall Pavement Condition Index (PCI) rating.

FY24 and FY25 Highlights
Completed design, bid, and construction of the FY24 Pavement Rehabilitation Project Award the FY25 Pavement Rehabilitation Project.

Completed the citywide Bicycle and Pedestrian GIS Mapping Project.

FY26 and FY27 Work Plan
Design, bid, and construct the FY26 and F27 Annual Citywide Pavement Rehabilitation Project.

City of Gilroy | FY26 and FY27 Recommended Budget Page 268

FY26 and FY27 Activity Goals
Deliver the FY26 and FY27 Pavement Rehabilitation Project.

TRANSPORTATION GRANTS FUND (215)
The transportation grants fund is used to account for transportation projects that are funded via a grant source. Typically, these funds come through the California Department of Transportation, or from the United States Department of Transportation via one of their agencies.

FY24 and FY25 Highlights
Secured additional grant funds for the Lions Creek Trail Project - Kern to Tapestry.

Completed Citywide Curb Ramp Project utilizing TDA Article 3 Funding.

FY26 and FY27 Work Plan
Design, bid, and construct the Lions Creek Trail Project.

FY26 and FY27 Activity Goals
Complete the Lions Creek Trail Project.

Financial/Budget Implications
The transportation grants are typically reimbursement-based. Because of this, the fund may be presented as a negative balance when looking at its fund balance. This is caused by the reimbursement not being received within the same fiscal year that the expenditures are incurred.

VEHICLE REGISTRATION FEE (VRF) FUND (220)
This fund represents registration fees from Santa Clara County which are used to fund pavement maintenance, operations, signals, signs, and markings.

FY24 and FY25 Highlights
Public Works contracted with a maintenance contractor to maintain and repair the City’s streetlights and signal infrastructure as well as perform underground service alert locate requests.

Annual construction of curb ramps are funded out of this program. The curb ramps provide ADA access for the pedestrians within the community.

FY26 and FY27 Work Plan
Continue an annual road maintenance and markings program to ensure the long-term viability of paved surfaces, including crack seal and pothole repair.

Coordinate contractor maintenance and repair of the City streetlights and signals.

Design, bid and construct new curb ramps on an annual basis.

Continue to update faded striping through the Annual Pavement Markings program.

FY26 and FY27 Activity Goals
Construct curb ramps in conformance with ADA requirements.

Maintenance and repair of the City’s streetlights and signals.

Refresh faded or unclear street markings.

Financial/Budget Implications
None.

City of Gilroy | FY26 and FY27 Recommended Budget Page 269

Transportation Special Revenue Funds Expenditure by Fund 2026 Recommended Expenditures by Fund
MMMeeeaaasssuuurrreee BBB (((222777%%%)))
GGGaaasss TTTaaaxxx FFFuuunnndddsss (((222666%%%)))
RRRoooaaaddd FFFuuunnnddd (((111777...999%%%)))
TTTrrraaannnssspppooorrrttt///MMMooobbbiiillliiitttyyy GGGrrraaannnttt FFFuuunnnddd (((111777...666%%%))) SSSiiidddeeewwwaaalllkkk RRReeepppaaaiiirrr RRReeessseeerrrvvveee FFFuuunnnddd (((555...999%%%))) VVVeeehhhiiicccllleee RRReeegggiiissstttrrraaatttiiiooonnn FFFeeeeee FFFuuunnnddd (((555...777%%%))) Sidewalk Repair
Reserve Fund
$158,677 $182,259 $841,391 $561,391 $527,588 $538,423
Parking Management $205,122 $38,828 $0 $0 $0 $0
Gas Tax Funds $2,103,422 $4,201,118 $2,453,436 $1,864,827 $2,335,130 $2,449,672 Road Fund $1,062,165 $2,381,155 $1,724,937 $3,298,609 $1,612,836 $1,769,897 Measure B $947,800 $1,883,892 $4,825,547 $3,331,956 $2,424,956 $2,443,223 Transport/Mobility
Grant Fund
$0 $113,546 $1,744,011 $409,437 $1,579,363 $1,879
Vehicle Registration
Fee Fund
$19,554 $25,685 $451,730 $641,734 $515,330 $540,199
Total: $4,496,740 $8,826,483 $12,041,051 $10,107,954 $8,995,203 $7,743,293 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 270

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Capital Project Special Revenue Funds
John Doughty
Public Works Director
Description
The following special revenue funds are the capital project funds, excluding transportation and development impact fee funds. These funds either receive their revenue from the City’s General und, or from outside entities, but typically do not generate their own revenue.

Fund Number Fund Name
400 Capital Projects Fund
405 Gilroy Community Library
422 Stormwater Management
487 Downtown Beautification
CAPITAL PROJECTS FUND (400)
This fund allocates resources intended to be used 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. Currently, the interest earned from this fund is used to contribute to various capital projects including the shared cost sidewalk repair program and annual pavement program. The goals for these programs are detailed in the CIP section of the budget book. This fund includes special developer contributions notably the Glen Loma required contributions to the permanent Santa Teresa which is programmed into the FY26 and FY27 CIP.

GILROY COMMUNITY LIBRARY (405)
The purpose of this fund is to finance the acquisition, construction, and improvement of facilities to be used as a public library within the City of Gilroy. Funding was provided by issuance of general obligation bonds.

The CIP includes a major renovation project utilizing remainder bond funds.

STORMWATER MANAGEMENT (422)
This fund pays for post-construction site inspection of stormwater treatment facilities. These improvements are required to be inspected annually, and the property owner is responsible for payment of staff time to conduct the site inspections.

DOWNTOWN BEAUTIFICATION (487)
The purpose of this fund is to finance the design and construction improvements along Gourmet Alley and Railroad Alley. The project has been constructed and a Notice of Completion is scheduled for City Council action prior to fiscal year-end. Staff will then formally close out the Caltrans' Clean California Local Grant.

City of Gilroy | FY26 and FY27 Recommended Budget Page 271

Other Capital Project Funds Expenditure by Fund
2026 Recommended Expenditures by Fund
CCCaaapppiiitttaaalll PPPrrrooojjjeeecccttt FFFuuunnnddd (((555222...777%%%))) GGGiiilllrrroooyyy CCCooommmmmmuuunnniiitttyyy LLLiiibbbrrraaarrryyy FFFuuunnnddd (((444666...333%%%))) SSStttooorrrmmmwwwaaattteeerrr MMMnnngggmmmttt IIImmmpppaaacccttt FFFeeeeee (((111%%%))) Capital Project Fund $2,029,838 $179,749 $3,823,849 $215,160 $5,846,199 $12,135,993 Gilroy Community
Library Fund
$0 $0 $800,000 $400,000 $5,135,491 $0
Stormwater Mngmt
Impact Fee
$0 $0 $0 $0 $110,000 $113,000
Downtown
Beautification
$336,854 $931,853 $2,687,186 $2,687,186 $0 $0
Total: $2,366,692 $1,111,601 $7,311,035 $3,302,346 $11,091,690 $12,248,993 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025 Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 272

Non-Departmental
Other General Government is a non-departmental budget section and contains appropriations that are managed by the Finance Department. The two components of this budget include Other General Government and Central Services. As part of the adopted budget, the two are further recommended to be consolated into one component entitled Other General Government (1001000).

Other General Government is intended to capture appropriations that are not tied to a specific General Fund department. It accounts for transfers from the General Fund to other funds (notably the Recreation contribution) managed by the City and payments to outside entities that are non-departmental related. Additionally, other expenditures that do not fall under the purview of a specific General Fund department and are also not associated with any enterprise or special revenue fund purpose, would be appropriated for in this budget, such as membership to League of California Cities, Local Agency Formation Commission, and various Council appointed boards and commission budgets. This budget also accounts for office supplies, contracts, internal service fund contributions, postage, and other day-to-day expenditures shared amongst various departments.

Non-Departmental Expenditures by Expense Type
2026 Recommended Expenditures by Expense Type
IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceeesss CCChhhaaarrrgggeeesss (((333888...888%%%))) IIInnnttteeerrrfffuuunnnddd TTTrrraaannnsssfffeeerrrsss (((555333...777%%%))) MMMaaattteeerrriiiaaalllsss aaannnddd SSSeeerrrvvviiiccceeesss (((444...999%%%))) OOOttthhheeerrr EEExxxpppeeennnssseeesss aaannnddd CCChhhaaarrrgggeeesss (((222...666%%%))) City of Gilroy | FY26 and FY27 Recommended Budget Page 273

Expense Objects
Personnel
Expenses
$663,295 $0 $900,000 $900,000 $0 $0
Materials and
Services
$232,295 $322,102 $188,440 $199,908 $229,942 $238,192
Capital Outlay $0 $39,131 $0 $80,582 $0 $0
Interfund Transfers $2,844,008 $1,999,998 $2,499,998 $2,499,998 $2,499,998 $2,499,998 Internal Services
Charges
$1,914,828 $2,720,110 $2,245,481 $2,246,184 $1,804,428 $1,986,887 Other Expenses
and Charges
$468,436 $104,195 $198,600 $198,600 $120,000 $120,000
Total Expense
Objects:
$6,122,862 $5,185,536 $6,032,519 $6,125,272 $4,654,368 $4,845,077 Name FY2023
Actual
FY2024
Actual
FY2025
Amended
FY2025
Projected
Actuals
FY2026
Recommended
Budget
FY2027
Recommended
Budget
City of Gilroy | FY26 and FY27 Recommended Budget Page 274

DEBT
City of Gilroy | FY26 and FY27 Recommended Budget Page 275

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Debt Management Overview
The California Constitution requires that long-term debt pledged by the full faith and credit of the City can only be approved by voter referendum. Per State of California statute, and the City of Gilroy’s Charter, the City’s debt limit is set at 15 percent of the total assessed valuation of all the real and personal property within the City.

Within the Annual Comprehensive Financial Report (ACFR), the City calculates its legal debt limit (the maximum amount of debt the City can issue) and compares it to the debt outstanding at the end of the year to produce the legal debt margin (the amount of debt the City can issue in future years). Currently, the City’s total General Obligation Debt is significantly below its debt limit. The City also carries bonded debt secured by specific revenue sources, but by being secured through specific revenue sources, they do not apply to the debt limit.

The City currently has the following outstanding debt:

Community Facilities District Refinancing Bonds 2018 - maintained to collect the special assessments and pay the bonded indebtedness for the refinanced Highway 152 Series 2018 improvements.

General Obligation Bonds (Gilroy Community Library) 2019 Refunding Bonds, Series A and B - used to pay the indebtedness related to the refunding of the Series A and B General Obligation Bonds for the Gilroy Community Library.

Refunding Lease Revenue Bonds 2020A Series - used to account for the payments of debt service principal and interest for the Public Facilities Financing Authority Lease Revenue 2020A Bonds. Wastewater Revenue Bonds 2021A Series - used to account for the payments of debt service principal and interest for the Wastewater revenue bonds issued for the sewer treatment plant expansion.

Refunding Lease Revenue Bonds 2022A Series - used to account for the debt service principal and interest for the refunding of the 2013 Lease Revenue Bonds.

California Energy Commission Loan - used to account for the payments of debt service principal and interest for the loan agreement between the CA Energy Commission (CEC) and the City-wide LED streetlight replacement project.

Debt Limit
Of the $93.3 million in debt currently outstanding, only $21.3 million is associated with general obligation bonds (“GO Bonds”). The two bond series that comprise this total include the 2019 General Obligation Library Refunding Bonds (Series A) and the 2019 General Obligation Library Refunding Bonds (Series B), and are therefore subject to the debt limit. The City’s assessed valuation as of June 30, 2024 is $11.6 billion, resulting in a debt limit of $1.7 billion and a current ratio of debt to assessed value of 0.184 percent. The remaining outstanding debt detailed in this appendix is supported by other specific revenue streams and is not subject to the debt limit. Of the $1.7 billion debt limit, only $21.3 million, or 1.228 percent of the debt limit is being utilized.

Debt Service Appropriations
In the Adopted Operating Budget, the City identifies the amount of principal and interest payments (combined, the “debt service”) appropriated for expenditure. Within each fund that carries debt service, the following account object numbers and descriptions identify these costs:
57110 - Debt Redemption
57115 - Debt Interest
57130 - Lease Principal
57135 - Lease Interest
City of Gilroy | FY26 and FY27 Recommended Budget Page 276

Debt Calculation
Debt Limit Calculation
Total Assessed Valuation within
Gilroy (June 30, 2024)
$11,590,365,209
Debt Limit Rate 15%
Debt Limit Value $1,738,554,781
Debt Limit Compliance
Analysis
Principal
Remaining as of
7/1/2025
Debt Principal
Subject to Limit
2018 Community Facilities
District Refinancing Bonds
(non-GO) (Not Rated)
$3,713,003 exempt
2019 General Obligation Library
Refunding Bonds, Series A
(Not Rated)
$6,601,741 $6,601,741
2019 General Obligation Library
Refunding Bonds, Series B (Not
Rated)
$14,745,397 $14,745,397
2020 Refunding Lease Revenue
Bonds, Series A (non-GO)
(Rating: S&P AA)
$9,845,000 exempt
2021 Wastewater Revenue
Bonds, Series A (non-GO)
(Rating: S&P AA)
$45,600,000 exempt
2022A Lease Revenue Bonds
(non-GO) (Not Rated)
$12,383,928
California Energy Commission
Loan (non-GO) (Not rated)
$390,600 exempt
Total $93,279,669 $21,347,138
Debt Ratio
Debt to Assessed Value Ratio 0.184%
Debt Limit Utilization 1.228%
Additional Debt Limit Capacity 98.772%
Total 100.000%
Per the Gilroy City Charter Section 1108 entitled Bonded Debt Limit, “the City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of fifteen percent (15%) of the total assessed valuation for purposes of City taxation of all the real and personal property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purposes of acquiring, constructing, extending or maintaining municipal utilities for which purpose a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter.” City of Gilroy | FY26 and FY27 Recommended Budget Page 277

Community Facilities District, 2018 Series
Fiscal
Year
Period
Ending Principal Coupon Interest Debt Service Annual Debt Service 9/1/2025 $ 768,888.00 3.28% $ 62,246.43 $ 831,134.43
FY 26 3/1/2026 48,551.72 48,551.72 $ 879,686.15
9/1/2026 796,189.00 3.28% 49,356.46 845,545.46
FY 27 3/1/2027 35,421.69 35,421.69 880,967.15
9/1/2027 562,168.00 3.28% 36,008.79 598,176.79
FY 28 3/1/2028 26,295.39 26,295.39 624,472.18
9/1/2028 459,461.00 3.28% 26,584.35 486,045.35
FY 29 3/1/2029 18,573.89 18,573.89 504,619.24
9/1/2029 474,666.00 3.28% 18,881.74 493,547.74
FY 30 3/1/2030 10,746.12 10,746.12 504,293.86
9/1/2030 488,931.00 3.28% 10,924.23 499,855.23
FY 31 3/1/2031 2,683.10 2,683.10 502,538.33
FY 32 9/1/2031 162,700.00 3.28% 2,727.58 165,427.58 165,427.58 Totals $ 3,713,003.00 $ 349,001.49 $ 4,062,004.49 $ 4,062,004.49 City of Gilroy | FY26 and FY27 Recommended Budget Page 278

2019 General Obligation Library Refunding Bonds, Series A - Debt Service Schedule
Fiscal
Year Period Ending Principal Coupon Interest Debt Service Annual Debt
Service
8/1/2025 $ 102,987.16 $ 102,987.16
FY 26 2/1/2026 $ 381,960.00 3.12% 102,987.16 484,947.16 $ 587,934.32 8/1/2026 97,028.58 97,028.58
FY 27 2/1/2027 394,066.00 3.12% 97,028.58 491,094.58 588,123.16 8/1/2027 90,881.15 90,881.15
FY 28 2/1/2028 406,556.00 3.12% 90,881.15 497,437.15 588,318.30 8/1/2028 84,538.88 84,538.88
FY 29 2/1/2029 419,442.00 3.12% 84,538.88 503,980.88 588,519.76 8/1/2029 77,995.59 77,995.59
FY 30 2/1/2030 432,736.00 3.12% 77,995.59 510,731.59 588,727.18 8/1/2030 71,244.90 71,244.90
FY 31 2/1/2031 446,451.00 3.12% 71,244.90 517,695.90 588,940.80 8/1/2031 64,280.27 64,280.27
FY 32 2/1/2032 460,601.00 3.12% 64,280.27 524,881.27 589,161.54 8/1/2032 57,094.89 57,094.89
FY 33 2/1/2033 475,200.00 3.12% 57,094.89 532,294.89 589,389.78 8/1/2033 49,681.77 49,681.77
FY 34 2/1/2034 490,261.00 3.12% 49,681.77 539,942.77 589,624.54 8/1/2034 42,033.70 42,033.70
FY 35 2/1/2035 505,799.00 3.12% 42,033.70 547,832.70 589,866.40 8/1/2035 34,143.24 34,143.24
FY 36 2/1/2036 521,830.00 3.12% 34,143.24 555,973.24 590,116.48 8/1/2036 26,002.69 26,002.69
FY 37 2/1/2037 538,369.00 3.12% 26,002.69 564,371.69 590,374.38 8/1/2037 17,604.13 17,604.13
FY 38 2/1/2038 555,433.00 3.12% 17,604.13 573,037.13 590,641.26 8/1/2038 8,939.38 8,939.38
FY 39 2/1/2039 573,037.00 3.12% 8,939.38 581,976.38 590,915.76 Totals $ 6,601,741.00 $ 1,648,912.66 $ 8,250,653.66 $ 8,250,653.66 City of Gilroy | FY26 and FY27 Recommended Budget Page 279

2019 General Obligation Library Refunding Bonds, Series B - Debt Service Schedule
Fiscal
Year
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
8/1/2025 $ 235,189.08 $ 235,189.08
FY 26 2/1/2026 $ 778,864.00 3.19% 235,189.08 1,014,053.08 $ 1,249,242.16 8/1/2026 222,766.20 222,766.20
FY 27 2/1/2027 804,112.00 3.19% 222,766.20 1,026,878.20 1,249,644.40 8/1/2027 209,940.61 209,940.61
FY 28 2/1/2028 830,179.00 3.19% 209,940.61 1,040,119.61 1,250,060.22 8/1/2028 196,699.26 196,699.26
FY 29 2/1/2029 857,091.00 3.19% 196,699.26 1,053,790.26 1,250,489.52 8/1/2029 183,028.66 183,028.66
FY 30 2/1/2030 884,875.00 3.19% 183,028.66 1,067,903.66 1,250,932.32 8/1/2030 168,914.90 168,914.90
FY 31 2/1/2031 913,560.00 3.19% 168,914.90 1,082,474.90 1,251,389.80 8/1/2031 154,343.62 154,343.62
FY 32 2/1/2032 943,175.00 3.19% 154,343.62 1,097,518.62 1,251,862.24 8/1/2032 139,299.98 139,299.98
FY 33 2/1/2033 973,750.00 3.19% 139,299.98 1,113,049.98 1,252,349.96 8/1/2033 123,768.67 123,768.67
FY 34 2/1/2034 1,005,317.00 3.19% 123,768.67 1,129,085.67 1,252,854.34 8/1/2034 107,733.86 107,733.86
FY 35 2/1/2035 1,037,906.00 3.19% 107,733.86 1,145,639.86 1,253,373.72 8/1/2035 91,179.26 91,179.26
FY 36 2/1/2036 1,071,552.00 3.19% 91,179.26 1,162,731.26 1,253,910.52 8/1/2036 74,088.01 74,088.01
FY 37 2/1/2037 1,106,288.00 3.19% 74,088.01 1,180,376.01 1,254,464.02 8/1/2037 56,442.71 56,442.71
FY 38 2/1/2038 1,142,151.00 3.19% 56,442.71 1,198,593.71 1,255,036.42 8/1/2038 38,225.40 38,225.40
FY 39 2/1/2039 1,179,176.00 3.19% 38,225.40 1,217,401.40 1,255,626.80 8/1/2039 19,417.55 19,417.55
FY 40 2/1/2040 1,217,401.00 3.19% 19,417.55 1,236,818.55 1,256,236.10 Totals $ 14,745,397.00 $ 4,042,075.54 $ 18,787,472.54 $ 18,787,472.54 City of Gilroy | FY26 and FY27 Recommended Budget Page 280

Refunding Lease Revenue Bonds, Series 2020A
Fiscal
Year Period Ending Principal Interest Debt Service Annual Debt Service 11/1/2025 $ 880,000.00 $ 246,125.00 $ 1,126,125.00
FY 26 5/1/2026 224,125.00 224,125.00 $ 1,350,250.00
11/1/2026 925,000.00 224,125.00 1,149,125.00
FY 27 5/1/2027 201,000.00 201,000.00 1,350,125.00
11/1/2027 1,000,000.00 201,000.00 1,201,000.00
FY 28 5/1/2028 176,000.00 176,000.00 1,377,000.00
11/1/2028 1,030,000.00 176,000.00 1,206,000.00
FY 29 5/1/2029 150,250.00 150,250.00 1,356,250.00
11/1/2029 1,085,000.00 150,250.00 1,235,250.00
FY 30 5/1/2030 123,125.00 123,125.00 1,358,375.00
11/1/2030 1,140,000.00 123,125.00 1,263,125.00
FY 31 5/1/2031 94,625.00 94,625.00 1,357,750.00
11/1/2031 1,200,000.00 94,625.00 1,294,625.00
FY 32 5/1/2032 64,625.00 64,625.00 1,359,250.00
11/1/2032 1,260,000.00 64,625.00 1,324,625.00
FY 33 5/1/2033 33,125.00 33,125.00 1,357,750.00
FY 34 11/1/2033 1,325,000.00 33,125.00 1,358,125.00 1,358,125.00 Totals $ 9,845,000.00 $ 2,379,875.00 $ 12,224,875.00 $ 12,224,875.00 City of Gilroy | FY26 and FY27 Recommended Budget Page 281

Wastewater Revenue Bonds, 2021A Series
Fiscal
Year
Period
Ending Principal Coupon Interest Debt Service Annual Debt Service 8/1/2025 $ 785,000.00 4.00% $ 737,150.00 $ 1,522,150.00 FY 26 2/1/2026 721,450.00 721,450.00 $ 2,243,600.00
8/1/2026 815,000.00 4.00% 721,450.00 1,536,450.00
FY 27 2/1/2027 705,150.00 705,150.00 2,241,600.00
8/1/2027 850,000.00 4.00% 705,150.00 1,555,150.00
FY 28 2/1/2028 688,150.00 688,150.00 2,243,300.00
8/1/2028 885,000.00 4.00% 688,150.00 1,573,150.00
FY 29 2/1/2029 670,450.00 670,450.00 2,243,600.00
8/1/2029 920,000.00 4.00% 670,450.00 1,590,450.00
FY 30 2/1/2030 652,050.00 652,050.00 2,242,500.00
8/1/2030 960,000.00 4.00% 652,050.00 1,612,050.00
FY 31 2/1/2031 632,850.00 632,850.00 2,244,900.00
8/1/2031 1,000,000.00 4.00% 632,850.00 1,632,850.00
FY 32 2/1/2032 612,850.00 612,850.00 2,245,700.00
8/1/2032 1,040,000.00 4.00% 612,850.00 1,652,850.00
FY 33 2/1/2033 592,050.00 592,050.00 2,244,900.00
8/1/2033 1,080,000.00 4.00% 592,050.00 1,672,050.00
FY 34 2/1/2034 570,450.00 570,450.00 2,242,500.00
8/1/2034 1,125,000.00 4.00% 570,450.00 1,695,450.00
FY 35 2/1/2035 547,950.00 547,950.00 2,243,400.00
8/1/2035 1,170,000.00 4.00% 547,950.00 1,717,950.00
FY 36 2/1/2036 524,550.00 524,550.00 2,242,500.00
8/1/2036 1,215,000.00 3.00% 524,550.00 1,739,550.00
FY 37 2/1/2037 506,325.00 506,325.00 2,245,875.00
8/1/2037 1,250,000.00 3.00% 506,325.00 1,756,325.00
FY 38 2/1/2038 487,575.00 487,575.00 2,243,900.00
8/1/2038 1,290,000.00 3.00% 487,575.00 1,777,575.00
FY 39 2/1/2039 468,225.00 468,225.00 2,245,800.00
8/1/2039 1,330,000.00 3.00% 468,225.00 1,798,225.00
FY 40 2/1/2040 448,275.00 448,275.00 2,246,500.00
8/1/2040 1,370,000.00 3.00% 448,275.00 1,818,275.00
FY 41 2/1/2041 427,725.00 427,725.00 2,246,000.00
8/1/2041 1,410,000.00 3.00% 427,725.00 1,837,725.00
FY 42 2/1/2042 406,575.00 406,575.00 2,244,300.00
8/1/2042 1,455,000.00 3.00% 406,575.00 1,861,575.00
FY 43 2/1/2043 384,750.00 384,750.00 2,246,325.00
8/1/2043 1,495,000.00 3.00% 384,750.00 1,879,750.00
FY 44 2/1/2044 362,325.00 362,325.00 2,242,075.00
8/1/2044 1,540,000.00 3.00% 362,325.00 1,902,325.00
FY 45 2/1/2045 339,225.00 339,225.00 2,241,550.00
8/1/2045 1,590,000.00 3.00% 339,225.00 1,929,225.00
FY 46 2/1/2046 315,375.00 315,375.00 2,244,600.00
8/1/2046 1,640,000.00 3.00% 315,375.00 1,955,375.00
City of Gilroy | FY26 and FY27 Recommended Budget Page 282

Fiscal
Year
Period
Ending PrincipalCoupon Interest Debt Service Annual Debt Service FY 47 2/1/2047 290,775.00 290,775.00 2,246,150.00
8/1/2047 1,690,000.00 3.00% 290,775.00 1,980,775.00
FY 48 2/1/2048 265,425.00 265,425.00 2,246,200.00
8/1/2048 1,740,000.00 3.00% 265,425.00 2,005,425.00
FY 49 2/1/2049 239,325.00 239,325.00 2,244,750.00
8/1/2049 1,790,000.00 3.00% 239,325.00 2,029,325.00
FY 50 2/1/2050 212,475.00 212,475.00 2,241,800.00
8/1/2050 1,845,000.00 3.00% 212,475.00 2,057,475.00
FY 51 2/1/2051 184,800.00 184,800.00 2,242,275.00
8/1/2051 1,905,000.00 3.00% 184,800.00 2,089,800.00
FY 52 2/1/2052 156,225.00 156,225.00 2,246,025.00
8/1/2052 1,960,000.00 3.00% 156,225.00 2,116,225.00
FY 53 2/1/2053 126,825.00 126,825.00 2,243,050.00
8/1/2053 2,020,000.00 3.00% 126,825.00 2,146,825.00
FY 54 2/1/2054 96,525.00 96,525.00 2,243,350.00
8/1/2054 2,080,000.00 3.00% 96,525.00 2,176,525.00
FY 55 2/1/2055 65,325.00 65,325.00 2,241,850.00
8/1/2055 2,145,000.00 3.00% 65,325.00 2,210,325.00
FY 56 2/1/2056 33,150.00 33,150.00 2,243,475.00
FY 57 8/1/2056 2,210,000.00 3.00% 33,150.00 2,243,150.00 2,243,150.00 Totals $ 45,600,000.00 $ 26,207,500.00 $ 71,807,500.00 $ 71,807,500.00 City of Gilroy | FY26 and FY27 Recommended Budget Page 283

Refunding Lease Revenue Bonds, Series 2022A
Fiscal
Year
Period
Ending Principal Interest Debt Service Annual Debt Service 11/1/2025 $ 1,183,287.00 $ 226,625.88 $ 1,409,912.88
FY 26 5/1/2026 204,971.73 204,971.73 $ 1,614,884.61
11/1/2026 1,227,403.00 204,971.73 1,432,374.73
FY 27 5/1/2027 182,510.26 182,510.26 1,614,884.99
11/1/2027 1,273,163.00 182,510.26 1,455,673.26
FY 28 5/1/2028 159,211.37 159,211.37 1,614,884.63
11/1/2028 1,320,630.00 159,211.37 1,479,841.37
FY 29 5/1/2029 135,043.84 135,043.84 1,614,885.21
11/1/2029 1,369,866.00 135,043.84 1,504,909.84
FY 30 5/1/2030 109,975.30 109,975.30 1,614,885.14
11/1/2030 1,420,938.00 109,975.30 1,530,913.30
FY 31 5/1/2031 83,972.13 83,972.13 1,614,885.43
11/1/2031 1,473,913.00 83,972.13 1,557,885.13
FY 32 5/1/2032 56,999.52 56,999.52 1,614,884.65
11/1/2032 1,528,864.00 56,999.52 1,585,863.52
FY 33 5/1/2033 29,021.31 29,021.31 1,614,884.83
FY 34 11/1/2033 1,585,864.00 29,021.31 1,614,885.31 1,614,885.31 Totals $ 12,383,928.00 $ 2,150,036.97 $ 14,533,964.80 $ 14,533,964.80 City of Gilroy | FY26 and FY27 Recommended Budget Page 284

California Energy Commission Loan
Fiscal
Year
Payment
Date
Interest
Payment
Principal
Payment
Payment
Amount
Annual Debt
Service
Principal
Balance
FY 25 $ 390,600.97
12/22/2025 $ 1,958.36 $ 47,972.57 $ 49,930.93 342,628.40 FY 26 6/22/2026 1,708.45 48,222.48 49,930.93 $ 99,861.86 294,405.92 12/22/2026 1,476.06 48,454.87 49,930.93 245,951.05
FY 27 6/22/2027 1,226.39 48,704.54 49,930.93 99,861.86 197,246.51 12/22/2027 988.93 48,942.00 49,930.93 148,304.51
FY 28 6/22/2028 743.55 49,187.38 49,930.93 99,861.86 99,117.13 12/22/2028 496.94 49,433.99 49,930.93 49,683.14
FY 29 6/22/2029 247.74 49,683.14 49,930.88 99,861.81 -
Totals $ 8,846.42 $ 390,600.97 $ 399,447.39 $ 399,447.39 - City of Gilroy | FY26 and FY27 Recommended Budget Page 285

CAPITAL IMPROVEMENT PROGRAM
City of Gilroy | FY26 and FY27 Recommended Budget Page 286

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Five-Year Capital Improvement Program (CIP)
The purpose of the Capital Improvement Program
(CIP) is to provide the City of Gilroy with a long-range plan for capital improvements. It is a planning
document and does not authorize or fund projects.

Investments in CIP projects are intended to support
safe and equitable services, community and
economic vitality, and infrastructure preservation.

Evaluation criteria for selecting which projects to
include for funding typically include, in no particular order, the elimination of hazards, legal mandates and
compliance, achieving economic development
objectives, prior commitments, availability of state or federal grants, project readiness, efficiency
improvements, and a project’s expected useful life.

The planning time frame for the CIP is typically five
years. It is produced periodically as a separate
planning document to identify capital improvement
needs and to coordinate financing and timing of
those needs in a manner that maximizes the return
to the public. Generally, as each biennial budget is
prepared, additional projects and priority needs are
developed and added to the program to maintain a
total five-year plan. Projects slated for subsequent
years are approved on a planning basis and do not
receive expenditure authority until they are
eventually incorporated into the capital budget for
that respective fiscal year. As such, tentative Council endorsement of the overall five-year program is
desirable for the effective implementation of overall
City goals and objectives.

The complete adopted five-year, FY24 through FY28,
CIP document is accessible here .

In 2023, the City Council approved the current fiveyear, FY24 through FY28, Capital Improvement Plan.

The CIP is intended to be a biennial process
conducted during the off-year of the biennial
Operating Budget process. As such, the next
comprehensive CIP plan update will be undertaken
in January 2026 (FY26). Although not directly related
to the City’s operating budget, resources are
allocated through the operating budget process and
are reflected in the CIP for the FY26 and FY27
Recommended Budget. The City’s capital projects
budgeted for FY26 and FY27 are presented on the
tables below, which are primarily based on the
projects within the existing five-year CIP, as funded or unfunded, or are otherwise new recommended
projects.

City of Gilroy | FY26 and FY27 Recommended Budget Page 287

Capital Projects for FY26 and FY27 - Streets Program
Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800060 Citywide Pavement Rehabilitation 4,500,000 4,500,000 9,000,000 800070 Citywide Curb Ramp Project 240,000 240,000 480,000 800320
Engineering Sidewalk Replacement
Program
500,000 500,000 1,000,000
800330 Pavement Markings 232,000 244,000 476,000
800340 Signal/Street Light Maintenance 355,000 372,200 727,200 800350
Luchessa/Church Traffic Signal
Installation
892,000 - 892,000
800360 Mantelli/Kern Traffic Signal Installation 155,000 984,000 1,139,000 800370 Monterey/I.O.O.F. Traffic Signal Installation 941,000 - 941,000 800390 Miller and Third Storm Drain
Rehabilitation
287,000 - 287,000
800400 Monterey and Luchessa Storm Drain
Modifications
382,000 - 382,000
800410 Citywide Traffic Signal Upgrades 150,000 150,000 300,000 800430
Cohansey Avenue/Terri Court Storm Drain
Improvements
30,000 - 30,000
800440
Automall/Luchessa Traffic Signal
Installation
130,000 842,000 972,000
800450 CDBG Sidewalk/Curb Ramp Project 130,000 130,000 260,000 800480 First/Kern Traffic Signal Installation 882,000 - 882,000 800730
Gateway Senior Apartments Pedestrian
Crossing Safety Improvements
700,000 - 700,000
800770 Tenth Street/Hwy 101 Bridge Widening 405,000 - 405,000 801120 Citywide Safety Improvements 70,000 220,000 290,000 Total All Projects $ 10,981,000 $ 8,182,200 $ 19,163,200 City of Gilroy | FY26 and FY27 Recommended Budget Page 288

Proposed Proposed
Funding Sources FY26 FY27 Two-Year Total
200 - Sidewalk Repair Reserve 500,000 500,000 1,000,000 205 - Gas Taxes 1,109,749 1,237,818 2,347,567
210 - Road Funds 1,565,251 1,604,382 3,169,633
212 - Measure B 2,400,000 2,400,000 4,800,000
215 - Transportation/ Mobility Grant - - -
220 - Vehicle Registration Fee 472,000 484,000 956,000
245 - CDBG 130,000 130,000 260,000
400 - Capital Projects 700,000 - 700,000
410 - Storm Drain Development Impact 699,000 - 699,000
425 - Traffic Impact 3,405,000 1,826,000 5,231,000
Total All Projects $ 10,981,000 $ 8,182,200 $ 19,163,200 City of Gilroy | FY26 and FY27 Recommended Budget Page 289

Capital Projects for FY26 and FY27 - Parks and Trails Program Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800270 Lions Creek Trail Kern to Tapestry 1,610,348 - 1,610,348 800780
San Ysidro Park Healthy Living
Enhancement
2,958,000 - 2,958,000
801040 Citywide Park Improvement Program 500,000 500,000 1,000,000 801050 Pickleball Courts 862,500 - 862,500
Total All Projects $ 5,930,848 $ 500,000 $ 6,430,848
Proposed Proposed
Funding Sources FY26 FY27 Two-Year Total
100 - General Fund 500,000 500,000 1,000,000
205 - Gas Taxes 78,247 - 78,247
215 - Transportation/ Mobility Grant 1,532,101 - 1,532,101 290 - Recreation 862,500 - 862,500
400 - Capital Projects 2,958,000 - 2,958,000
Total All Projects $ 5,930,848 $ 500,000 $ 6,430,848
City of Gilroy | FY26 and FY27 Recommended Budget Page 290

Capital Projects for FY26 and FY27 - Public Facilities Program Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800160 Golf Course Water Tank Replacement - - -
800230 Shooting Range Assessment - - -
800290 Santa Teresa Fire Station 1,500,000 11,500,000 13,000,000 800800
Gilroy Center for the Arts HVAC
Replacement
- - -
800810 Old City Hall HVAC Replacement - - -
800830 Senior Center Roof Replacement - - -
800840 Chestnut Fire Station Renovation 1,250,000 - 1,250,000 800850 Las Animas Fire Station Renovation 1,250,000 - 1,250,000 800930 Civic Center Master Plan - - -
801000 Library Improvements 5,000,000 - 5,000,000
801020
Parks/Civic Facilities Sidewalk
Improvements Citywide
155,000 - 155,000
801030 Parking Lot Resurfacing - Downtown - 80,000 80,000 801090 City Facilities Repairs and Maintenance 150,000 150,000 300,000 801100 Annex Server Room AC Replacement - 75,000 75,000 801130 Parking Lot Resurfacing - Parks - 80,000 80,000
Total All Projects $ 9,305,000 $ 11,885,000 $ 21,190,000 Proposed Proposed
Funding Sources FY26 FY27 Two-Year Total
400 - Capital Projects 1,500,000 11,500,000 13,000,000
405 - Gilroy Community Library 5,000,000 - 5,000,000
440 - Public Facilities Impact - - -
615 - Facilities 305,000 385,000 690,000
625 - Equipment Outlay 2,500,000 - 2,500,000
-
Total All Projects $ 9,305,000 $ 11,885,000 $ 21,190,000 City of Gilroy | FY26 and FY27 Recommended Budget Page 291

Capital Projects for FY26 and FY27 - Engineering Program Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800240
Traffic Circulation Master Plan and Traffic
Impact Fee Update
3,350 - 3,350
800470 Stormwater NPDES Compliance 198,439 210,000 408,439 800900 Gilroy Ice Center 18,000,000 18,000,000 36,000,000 800910 Corporation Yard EV and EV Charging 259,618 - 259,618 Total All Projects $ 18,461,407 $ 18,210,000 $ 36,671,407 Proposed Proposed
Funding Sources FY26 FY27 Two-Year Total
400 - Capital Projects 259,618 - 259,618
410 - Storm Drain Development Impact 198,439 210,000 408,439 425 - Traffic Impact 1,503,350 1,500,000 3,003,350
440 - Public Facilities Impact 16,500,000 16,500,000 33,000,000 Total All Projects $ 18,461,407 $ 18,210,000 $ 36,671,407 City of Gilroy | FY26 and FY27 Recommended Budget Page 292

Capital Projects for FY26 and FY27 - Utilities Program
Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800050 McCarthy Site Well (Well #9) 3,542,000 367,000 3,909,000 800250
Casey and Swanston Water Line
Replacement
984,000 2,582,000 3,566,000
800310
Automated Flexnet Water Meter
Installation
225,000 225,000 450,000
800490
Annual Citywide Sewer Repair and
Rehabilitation Program
215,000 225,000 440,000
800510
Asbestos Cement Sewer Pipe
Replacement Citywide
- 291,000 291,000
800520
Carmel-Dowdy Alley - Sixth to Seventh
Sewer Replacement
- 85,000 85,000
800530
Large Diameter Sewer Rehabilitation
Citywide
280,000 1,130,000 1,410,000
800540 Monterey and Princevalle Sewer
Network
- 935,000 935,000
800550 Old Gilroy - Chestnut to Forest Sewer
Upgrade
55,000 270,000 325,000
800560
Seventh St - Carmel-Dowdy to HannaRosanna Alleys Sewer Replacement - 64,000 64,000
800570 Sewer Plant Expansion (SCRWA) - - -
800590
Broadway and Sargent Water Line
Replacement
1,494,000 - 1,494,000
800600
Church and Gurries Water Line
Replacement
509,000 - 509,000
800610
Church Street - Welburn to First Water
Line Replacement
2,134,000 - 2,134,000
800620
Forest and Eighth Water Line
Replacement
- 105,000 105,000
800630
Steel Water Service Lines Replacement
Citywide
225,000 230,000 455,000
800640 Monterey and Eighth Water Line
Replacement
- 120,000 120,000
800650
Abandon 2" Water Line from 7041 to
7161 Monterey Street
- 160,000 160,000
800660 Murray at Burke Water Line Reroute 414,000 - 414,000 800670
Saint Louise Hospital Large Water
Meter Replacement
65,000 - 65,000
800690 Water Reservoirs A and B - Painting - 92,000 92,000 800700 Water Reservoirs A and B - Retrofit
Overflow Piping
- 85,000 85,000
City of Gilroy | FY26 and FY27 Recommended Budget Page 293

Project Proposed Proposed
Number Project Title FY26 FY27 Two-Year Total
800710 Water Well Nos. 1 and 4 Compliance
Improvements
16,000 90,000 106,000
800870 Old Gilroy Street at Railroad Crossing
Sewer Replacement
275,000 - 275,000
800890 Monterey - Leavesley to Ronan Water
Line Replacement
797,000 986,000 1,783,000
800970 Master Plan Projects - Sewer
Improvements
2,400,000 3,731,000 6,131,000
800980
Joint Morgan Hill-Gilroy Trunk Line
Repairs
597,000 2,778,000 3,375,000
800990 Master Plan Projects - Water
Improvements
- 960,372 960,372
801060 Well 8/8a Rehabilitation 320,000 - 320,000
Total All Projects $ 14,547,000 $ 15,511,372 $ 30,058,372 Proposed Proposed
Funding Sources FY26 FY27 Two-Year Total
430 - Sewer Development Impact 975,000 2,587,000 3,562,000 435 - Water Development Impact 3,542,000 973,000 4,515,000 700 - Sewer 2,847,000 6,922,000 9,769,000
705 - Water 7,183,000 5,029,372 12,212,372
Total All Projects $ 14,547,000 $ 15,511,372 $ 30,058,372 City of Gilroy | FY26 and FY27 Recommended Budget Page 294

SUPPLEMENTAL INFORMATION
City of Gilroy | FY26 and FY27 Recommended Budget Page 295

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Revenues and Expenditures Line-Item Details
Below are the links to download the Fiscal Year 2026 (FY26) and Fiscal Year 2027 (FY27) Adopted Budget Line-Item Details in PDF. The details are totaled by Fund. Revenue and Expenditure details are listed as separate links.

City of Gilroy | FY26 and FY27 Recommended Budget Page 296

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City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
100 GENERAL FUND 10 1000 1001000 1001000-45120 45120 USER FEES 552 $ 25 $ - $ 552 $ - $ - $ 100 GENERAL FUND 10 1000 1001000 1001000-46110 46110 BANK INTEREST - - - - - - 100 GENERAL FUND 10 1000 1001000 1001000-46210 46210 INTERFUND INTEREST INCOME - - - - - - 100 GENERAL FUND 10 1000 1001000 1001000-47810 47810 MISC REVENUES - 11,408 - - - - 100 GENERAL FUND 10 1000 1001000 1001000-48110 48110 INTERFUND TRANSFER IN 38,136 26,994 686,000 686,000 - - 100 GENERAL FUND 15 1560 1001560 1001560-43110 43110 FEDERAL GRANT 4,947 5,427 233,895 233,895 245,589 257,869 100 GENERAL FUND 15 1560 1001560 1001560-43120 43120 STATE GRANT - 181,072 25,000 25,000 - - 100 GENERAL FUND 15 1560 1001560 1001560-47810 47810 MISC REVENUES - 66 - - - - 100 GENERAL FUND 15 1570 1001570 1001570-47810 47810 MISC REVENUES - - - - 150,000 150,000 100 GENERAL FUND 20 2000 1002000 1002000-48320 48320 OTHER FINANCING SOURCES - - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-40110 40110 PROPERTY TAX SECURED 11,953,032 10,643,541 11,017,385 11,254,000 11,816,700 12,407,535 100 GENERAL FUND 20 2010 1002010 1002010-40115 40115 PROPERTY TAX UNSECURED 620,180 600,548 645,225 605,000 617,100 629,422 100 GENERAL FUND 20 2010 1002010 1002010-40117 40117 ERAF - 2,048,383 2,074,000 2,080,112 2,563,000 2,665,520 100 GENERAL FUND 20 2010 1002010 1002010-40120 40120 SUPPLEMENTAL PROPERTY TAX 406,579 253,262 232,000 253,000 253,000 253,000 100 GENERAL FUND 20 2010 1002010 1002010-40130 40130 HOMEOWNER'S EXEMPTION 29,818 30,005 29,000 29,000 29,000 29,000 100 GENERAL FUND 20 2010 1002010 1002010-40135 40135 DOCUMENTARY TRANSFER TAX 404,075 359,716 375,000 420,000 432,600 445,578 100 GENERAL FUND 20 2010 1002010 1002010-40137 40137 VLF PROPERTY TAX 6,154,839 6,502,054 6,850,515 6,814,935 7,155,682 7,513,466 100 GENERAL FUND 20 2010 1002010 1002010-40140 40140 SALES TAX 21,029,959 21,119,635 21,827,000 20,538,000 20,400,000 20,600,000 100 GENERAL FUND 20 2010 1002010 1002010-40145 40145 MOTOR VEHICLE TAX 61,476 74,209 64,700 96,232 101,044 106,096 100 GENERAL FUND 20 2010 1002010 1002010-40147 40147 TRANSIENT OCCUPANCY TAX 1,754,615 1,560,500 2,016,000 1,850,000 1,905,500 2,362,665 100 GENERAL FUND 20 2010 1002010 1002010-40150 40150 UUT GAS 1,239,885 1,002,043 1,279,590 1,152,130 1,198,215 1,246,144 100 GENERAL FUND 20 2010 1002010 1002010-40151 40151 UUT ELECTRICITY 2,145,103 2,426,131 2,241,582 3,266,279 3,429,593 3,601,073 100 GENERAL FUND 20 2010 1002010 1002010-40152 40152 UUT SVCEA ELECTRICITY 1,358,720 1,431,103 1,482,516 1,636,314 1,718,130 1,804,036 100 GENERAL FUND 20 2010 1002010 1002010-40153 40153 UUT GAS MISC 603,595 452,298 687,834 400,000 416,000 432,640 100 GENERAL FUND 20 2010 1002010 1002010-40154 40154 UUT ELECTRICITY MISC 332,241 384,298 277,957 530,000 556,500 584,325 100 GENERAL FUND 20 2010 1002010 1002010-40155 40155 UUT PHONE 63,064 58,406 58,662 53,866 48,479 43,631 100 GENERAL FUND 20 2010 1002010 1002010-40156 40156 UUT PPD MOBILE PHONE 33,755 32,452 28,350 31,500 28,350 25,515 100 GENERAL FUND 20 2010 1002010 1002010-40157 40157 UUT PHONE MISC 239,358 251,479 213,893 206,000 199,820 193,825 100 GENERAL FUND 20 2010 1002010 1002010-40158 40158 UUT WIRELESS PHONE 258,781 273,554 210,600 296,566 287,669 279,039 100 GENERAL FUND 20 2010 1002010 1002010-40159 40159 UUT CABLE TV 276,915 251,705 250,931 308,284 317,533 327,058 100 GENERAL FUND 20 2010 1002010 1002010-40170 40170 FRANCHISE GAS & ELECTRICITY 1,018,659 1,019,468 1,144,463 1,144,463 1,201,686 1,261,770 100 GENERAL FUND 20 2010 1002010 1002010-40172 40172 FRANCHISE GARBAGE 854,852 930,235 972,000 1,145,212 1,202,473 1,262,596 100 GENERAL FUND 20 2010 1002010 1002010-40174 40174 FRANCHISE CABLE TV 324,639 289,662 343,000 250,000 245,000 240,100 100 GENERAL FUND 20 2010 1002010 1002010-41110 41110 BUSINESS LICENSES 727,165 883,812 839,000 807,000 823,140 839,603 100 GENERAL FUND 20 2010 1002010 1002010-41150 41150 OTHER LICENSES & PERMITS 5,534 5,298 25,500 6,375 6,566 6,763 100 GENERAL FUND 20 2010 1002010 1002010-43110 43110 FEDERAL GRANT 663,000 - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-45130 45130 ADMIN. FEE-GARBAGE 683,881 744,188 780,000 801,648 833,714 867,063 100 GENERAL FUND 20 2010 1002010 1002010-45145 45145 OVERHEAD REVENUE 3,228,599 3,308,703 3,453,525 3,453,525 3,972,100 4,170,705 100 GENERAL FUND 20 2010 1002010 1002010-46110 46110 BANK INTEREST 298,391 1,336,439 888,240 1,581,788 1,388,841 1,315,149 100 GENERAL FUND 20 2010 1002010 1002010-46120 46120 INVESTMENT INTEREST 409,059 - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-46310 46310 OTHER INTEREST - 473,917 - - - - 100 GENERAL FUND 20 2010 1002010 1002010-46315 46315 INTEREST INCOME LEASE 127,844 109,650 - - - - 100 GENERAL FUND 20 2010 1002010 1002010-46410 46410 GAIN/LOSS ON INVESTMENTS 1,390,560 - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-46420 46420 UNREALIZED GAIN/LOSS (441,999) 1,013,798 - - - - 100 GENERAL FUND 20 2010 1002010 1002010-46510 46510 RENTS,LEASES&CONCESSIONS - - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-47115 47115 LEASE REVENUE 140,240 334,956 194,716 194,716 194,716 256,859 100 GENERAL FUND 20 2010 1002010 1002010-47310 47310 MISC REIMBURSEMENTS - - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-47810 47810 MISC REVENUES 53,277 484,706 9,300 50,000 218,540 219,096 100 GENERAL FUND 20 2010 1002010 1002010-47820 47820 REVENUE SUSPENSE - - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-48110 48110 INTERFUND TRANSFER IN 7,500 - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-48320 48320 OTHER FINANCING SOURCES 22,500 - - - - - 100 GENERAL FUND 20 2010 1002010 1002010-48510 48510 ACCUM ANNUAL SAVINGS - - - - - - 100 GENERAL FUND 30 3000 1003000 1003000-41150 41150 OTHER LICENSES & PERMITS - - - - - - 100 GENERAL FUND 30 3000 1003000 1003000-42110 42110 VEHICLE/COURT FINES 80,830 33,024 72,631 23,607 26,558 26,558 100 GENERAL FUND 30 3000 1003000 1003000-42120 42120 PARKING FINES 20,401 24,053 20,916 16,726 20,916 20,916 100 GENERAL FUND 30 3000 1003000 1003000-42130 42130 ABANDONED VEHICLE ABATE 154,128 181,051 130,000 148,296 130,000 130,000

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
100 GENERAL FUND 30 3000 1003000 1003000-43120 43120 STATE GRANT 38,243 57,686 34,500 47,329 56,053 56,053 100 GENERAL FUND 30 3000 1003000 1003000-45125 45125 SERVICE CHARGE 31,603 41,394 25,000 25,608 25,000 25,000 100 GENERAL FUND 30 3000 1003000 1003000-47810 47810 MISC REVENUES 61,292 70,807 63,118 79,850 63,118 63,118 100 GENERAL FUND 30 3000 1003000 1003000-48110 48110 INTERFUND TRANSFER IN 115,271 100,000 100,000 100,000 100,000 100,000 100 GENERAL FUND 30 3010 1003010 1003010-43130 43130 OTHER INTERGOVTL REVENUE 19,750 19,000 15,000 15,000 115,000 115,000 100 GENERAL FUND 30 3010 1003010 1003010-47310 47310 MISC REIMBURSEMENTS 29,537 97,569 - 37,151 - - 100 GENERAL FUND 30 3010 1003010 1003010-47320 47320 OVERTIME REIMBURSEMENT 17,751 20,949 23,834 19,151 11,507 11,852 100 GENERAL FUND 30 3010 1003010 1003010-47810 47810 MISC REVENUES 257,453 268,451 436,634 301,315 300,018 300,018 100 GENERAL FUND 30 3010 1003010 1003010-48110 48110 INTERFUND TRANSFER IN - - - - - - 100 GENERAL FUND 30 3030 1003030 1003030-47810 47810 MISC REVENUES - - - - - - 100 GENERAL FUND 35 3500 1003500 1003500-43110 43110 FEDERAL GRANT 69,634 66,583 - - - - 100 GENERAL FUND 35 3500 1003500 1003500-43125 43125 COUNTY GRANT - - - 8,930 - - 100 GENERAL FUND 35 3500 1003500 1003500-45125 45125 SERVICE CHARGE 408,852 252,665 200,000 250,000 200,000 200,000 100 GENERAL FUND 35 3500 1003500 1003500-45145 45145 OVERHEAD REVENUE - - - - 280,000 291,000 100 GENERAL FUND 35 3500 1003500 1003500-47320 47320 OVERTIME REIMBURSEMENT - - - - - - 100 GENERAL FUND 35 3500 1003500 1003500-47330 47330 GILROY REIMBURSEMENT 275,608 120,013 174,835 785,000 130,000 130,000 100 GENERAL FUND 35 3500 1003500 1003500-47810 47810 MISC REVENUES 23,457 3,981 5,000 5,500 5,000 5,000 100 GENERAL FUND 35 3500 1003500 1003500-48110 48110 INTERFUND TRANSFER IN - - - - - - 100 GENERAL FUND 35 3510 1003510 1003510-47810 47810 MISC REVENUES - - - - - - 100 GENERAL FUND 35 3510 1003510 1003510-48110 48110 INTERFUND TRANSFER IN - 200,000 - - - - 100 GENERAL FUND 40 4000 1004000 1004000-47810 47810 MISC REVENUES 991 4,164 5,000 23,000 800 800 100 GENERAL FUND 40 4000 1004000 1004000-48110 48110 INTERFUND TRANSFER IN - - - - - - 100 GENERAL FUND 40 4010 1004010 1004010-43120 43120 STATE GRANT 99,581 - - - - - 100 GENERAL FUND 40 4010 1004010 1004010-45125 45125 SERVICE CHARGE 8,932 - - - - - 100 GENERAL FUND 40 4010 1004010 1004010-47810 47810 MISC REVENUES 127,414 - - - - - 100 GENERAL FUND 40 4010 1004010 1004010-48110 48110 INTERFUND TRANSFER IN 39,898 - - - - - 100 GENERAL FUND 40 4020 1004020 1004020-43120 43120 STATE GRANT 106,718 - 335,529 - 150,000 185,529 100 GENERAL FUND 40 4020 1004020 1004020-45125 45125 SERVICE CHARGE 668,785 588,762 730,000 636,000 655,000 675,000 100 GENERAL FUND 40 4020 1004020 1004020-47310 47310 MISC REIMBURSEMENTS 8,951 8,951 - 8,950 8,950 8,950 100 GENERAL FUND 40 4020 1004020 1004020-47810 47810 MISC REVENUES - 1,353 - - - - 100 GENERAL FUND 40 4020 1004020 1004020-48110 48110 INTERFUND TRANSFER IN - - - - - - 100 GENERAL FUND 40 4030 1004030 1004030-41120 41120 BUILDING PERMITS 1,488,520 1,972,830 1,900,000 1,900,000 1,995,000 2,094,750 100 GENERAL FUND 40 4030 1004030 1004030-45110 45110 PLAN CHECK FEES 525,137 877,034 650,000 685,000 719,000 755,000 100 GENERAL FUND 40 4030 1004030 1004030-45115 45115 INSPECTIONS AND ANALYSIS 135,630 104,218 135,000 135,000 141,750 148,838 100 GENERAL FUND 40 4030 1004030 1004030-45125 45125 SERVICE CHARGE - - - - - - 100 GENERAL FUND 40 4030 1004030 1004030-47810 47810 MISC REVENUES 32,687 66,328 7,000 7,000 7,000 7,000 100 GENERAL FUND 40 4030 1004030 1004030-48110 48110 INTERFUND TRANSFER IN - - - - - - 100 GENERAL FUND 40 4035 1004035 1004035-45110 45110 PLAN CHECK FEES - - - - 750 750 100 GENERAL FUND 40 4035 1004035 1004035-45115 45115 INSPECTIONS AND ANALYSIS - - - - 500 500 100 GENERAL FUND 40 4035 1004035 1004035-47810 47810 MISC REVENUES - - - - 20,000 20,000 100 GENERAL FUND 40 4040 1004040 1004040-41120 41120 BUILDING PERMITS 88,768 106,767 110,000 73,000 75,000 77,000 100 GENERAL FUND 40 4040 1004040 1004040-41130 41130 HMSO PERMITS 189,115 284,667 165,000 260,000 268,000 276,000 100 GENERAL FUND 40 4040 1004040 1004040-41140 41140 UFC PERMITS 124,752 68,199 105,000 65,000 67,000 69,000 100 GENERAL FUND 40 4040 1004040 1004040-41150 41150 OTHER LICENSES & PERMITS 72,465 115,616 35,000 125,000 129,000 133,000 100 GENERAL FUND 40 4040 1004040 1004040-45110 45110 PLAN CHECK FEES 83,117 89,279 93,000 71,000 73,000 75,000 100 GENERAL FUND 40 4040 1004040 1004040-45115 45115 INSPECTIONS AND ANALYSIS 113,670 181,565 70,000 170,000 175,000 180,000 100 GENERAL FUND 40 4040 1004040 1004040-45155 45155 NUISANCE ABATEMENT - - - - - - 100 GENERAL FUND 40 4040 1004040 1004040-47810 47810 MISC REVENUES 38,172 32,331 23,000 34,000 34,000 34,000 100 GENERAL FUND 40 4070 1004070 1004070-48110 48110 INTERFUND TRANSFER IN - 117,655 186,248 186,248 183,570 188,660 100 GENERAL FUND 55 5500 1005500 1005500-47810 47810 MISC REVENUES - 518 - - - - 100 GENERAL FUND 55 5510 1005510 1005510-43110 43110 FEDERAL GRANT - - - - - - 100 GENERAL FUND 55 5510 1005510 1005510-45125 45125 SERVICE CHARGE - - - - - - 100 GENERAL FUND 55 5510 1005510 1005510-47810 47810 MISC REVENUES 550 1,918 - - - - 100 GENERAL FUND 55 5520 1005520 1005520-47330 47330 GILROY REIMBURSEMENT - - - - - - 100 GENERAL FUND 55 5520 1005520 1005520-47810 47810 MISC REVENUES - 1,730 - - - - 100 GENERAL FUND 55 5520 1005520 1005520-48110 48110 INTERFUND TRANSFER IN 600,000 780,000 819,000 819,000 860,000 904,000

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
100 GENERAL FUND 55 5530 1005530 1005530-43110 43110 FEDERAL GRANT - - 190,000 190,000 - - 100 GENERAL FUND 55 5530 1005530 1005530-43120 43120 STATE GRANT - - - - - - 100 GENERAL FUND 55 5530 1005530 1005530-45110 45110 PLAN CHECK FEES 1,036,044 1,368,110 1,300,000 1,100,000 1,200,000 1,300,000 100 GENERAL FUND 55 5530 1005530 1005530-45125 45125 SERVICE CHARGE 77,456 97,766 42,199 170,000 180,000 187,000 100 GENERAL FUND 55 5530 1005530 1005530-45145 45145 OVERHEAD REVENUE - - - - 1,308,991 1,271,650 100 GENERAL FUND 55 5530 1005530 1005530-47310 47310 MISC REIMBURSEMENTS - - - - - - 100 GENERAL FUND 55 5530 1005530 1005530-47810 47810 MISC REVENUES - - - - - - 100 GENERAL FUND 55 5540 1005540 1005540-43120 43120 STATE GRANT - 95,671 79,000 75,000 64,000 64,000 100 GENERAL FUND 55 5540 1005540 1005540-45125 45125 SERVICE CHARGE - 917 - - 25,600 26,400 100 GENERAL FUND 55 5540 1005540 1005540-47810 47810 MISC REVENUES - 110,000 110,000 110,000 252,800 260,000 100 GENERAL FUND 55 5540 1005540 1005540-48110 48110 INTERFUND TRANSFER IN - 43,788 48,681 48,681 263,065 270,000 GENERAL FUND Total 65,794,485 69,592,505 69,897,504 70,956,734 74,277,226 77,084,483 200 SIDEWALK REPAIR RESERVE FUND 55 5500 2005500 2005500-45125 45125 SERVICE CHARGE - - - - 250,000 250,000 200 SIDEWALK REPAIR RESERVE FUND 55 5500 2005500 2005500-46110 46110 BANK INTEREST 23,979 69,064 23,153 79,799 56,130 43,395 200 SIDEWALK REPAIR RESERVE FUND 55 5500 2005500 2005500-48110 48110 INTERFUND TRANSFER IN 250,000 250,000 250,000 250,000 250,000 250,000 SIDEWALK REPAIR RESERVE FUND Total 273,979 319,064 273,153 329,799 556,130 543,395 202 PARKING MANAGEMENT 55 5500 2025500 2025500-46110 46110 BANK INTEREST 945 1,852 - 2,842 - - PARKING MANAGEMENT Total 945 1,852 - 2,842 - -
205 GAS TAX FUNDS 55 5500 2055500 2055500-43110 43110 FEDERAL GRANT - - - - - - 205 GAS TAX FUNDS 55 5500 2055500 2055500-43120 43120 STATE GRANT 375,953 364,461 379,227 385,512 388,526 391,246 205 GAS TAX FUNDS 55 5500 2055500 2055500-43121 43121 STATE- GAS TAX 2106 205,113 219,315 227,425 231,823 233,631 236,201 205 GAS TAX FUNDS 55 5500 2055500 2055500-43122 43122 STATE GASTAX 2107 465,275 493,329 517,167 526,013 530,250 533,962 205 GAS TAX FUNDS 55 5500 2055500 2055500-43123 43123 STATE GASTAX2107.5 7,500 7,500 7,500 7,500 7,500 7,500 205 GAS TAX FUNDS 55 5500 2055500 2055500-43124 43124 STATE GASTAX 2103 489,019 546,507 566,774 564,781 555,420 560,974 205 GAS TAX FUNDS 55 5500 2055500 2055500-46110 46110 BANK INTEREST 65,194 74,829 64,597 85,456 46,389 16,248 205 GAS TAX FUNDS 55 5500 2055500 2055500-47810 47810 MISC REVENUES - 83,915 - - - - GAS TAX FUNDS Total 1,608,054 1,789,856 1,762,690 1,801,085 1,761,716 1,746,131 210 ROAD FUND 55 5500 2105500 2105500-43120 43120 STATE GRANT 1,324,331 1,519,658 1,527,074 1,541,038 1,601,310 1,665,362 210 ROAD FUND 55 5500 2105500 2105500-43125 43125 COUNTY GRANT 159 - - - - - 210 ROAD FUND 55 5500 2105500 2105500-46110 46110 BANK INTEREST 64,542 118,500 57,993 118,277 17,750 17,033 ROAD FUND Total 1,389,031 1,638,158 1,585,067 1,659,315 1,619,060 1,682,395 212 MEASURE B 55 5500 2125500 2125500-43125 43125 COUNTY GRANT 2,968,901 - 4,500,000 1,650,504 2,495,367 2,400,000 212 MEASURE B 55 5500 2125500 2125500-46110 46110 BANK INTEREST 32,683 139,635 30,816 116,491 37,876 38,487 MEASURE B Total 3,001,584 139,635 4,530,816 1,766,995 2,533,243 2,438,487 215 TRANSPORT/MOBILITY GRANT FUND 55 5500 2155500 2155500-43110 43110 FEDERAL GRANT - - 1,552,100 167,899 1,326,101 - 215 TRANSPORT/MOBILITY GRANT FUND 55 5500 2155500 2155500-43120 43120 STATE GRANT - 106,467 81,753 240,000 206,000 - 215 TRANSPORT/MOBILITY GRANT FUND 55 5500 2155500 2155500-46110 46110 BANK INTEREST 3,747 10,331 3,647 11,450 10,181 9,299 215 TRANSPORT/MOBILITY GRANT FUND 55 5500 2155500 2155500-48110 48110 INTERFUND TRANSFER IN - - - - - - TRANSPORT/MOBILITY GRANT FUND Total 3,747 116,798 1,637,500 419,349 1,542,282 9,299 220 VEHICLE REGISTRATION FEE FUND 55 5500 2205500 2205500-43125 43125 COUNTY GRANT 341,769 445,177 413,692 402,669 414,749 427,192 220 VEHICLE REGISTRATION FEE FUND 55 5500 2205500 2205500-46110 46110 BANK INTEREST 21,120 80,383 20,195 88,433 74,512 69,925 VEHICLE REGISTRATION FEE FUND Total 362,889 525,560 433,887 491,102 489,261 497,117 222 NEIGHBORHOOD SAFETY UNIT 30 3000 2223000 2223000-43125 43125 COUNTY GRANT - 138,222 142,550 37,403 142,550 142,550 222 NEIGHBORHOOD SAFETY UNIT 30 3000 2223000 2223000-46110 46110 BANK INTEREST - 2,389 - 11,002 10,843 10,843 222 NEIGHBORHOOD SAFETY UNIT 30 3000 2223000 2223000-47810 47810 MISC REVENUES - - - - - - 222 NEIGHBORHOOD SAFETY UNIT 30 3000 2223000 2223000-48110 48110 INTERFUND TRANSFER IN - 221,707 - - - - NEIGHBORHOOD SAFETY UNIT Total - 362,318 142,550 48,405 153,393 153,393 223 OTS PD GRANT 30 3010 2233010 2233010-43120 43120 STATE GRANT 49,353 96,724 168,500 90,818 - - 223 OTS PD GRANT 30 3010 2233010 2233010-46110 46110 BANK INTEREST - 1,301 - 525 875 875 223 OTS PD GRANT 30 3010 2233010 2233010-48110 48110 INTERFUND TRANSFER IN - - - - - - OTS PD GRANT Total 49,353 98,025 168,500 91,343 875 875 225 POLICE GRANTS FUND 30 3000 2253000 2253000-43110 43110 FEDERAL GRANT 28,160 31,088 33,629 21,761 17,519 - 225 POLICE GRANTS FUND 30 3000 2253000 2253000-43120 43120 STATE GRANT 393,956 334,218 210,318 296,533 100,000 100,000 225 POLICE GRANTS FUND 30 3000 2253000 2253000-43125 43125 COUNTY GRANT 502,047 - - - - - 225 POLICE GRANTS FUND 30 3000 2253000 2253000-46110 46110 BANK INTEREST 4,012 28,010 2,807 14,438 19,304 19,698 225 POLICE GRANTS FUND 30 3000 2253000 2253000-47810 47810 MISC REVENUES 120,678 - - - - -

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
225 POLICE GRANTS FUND 30 3000 2253000 2253000-48110 48110 INTERFUND TRANSFER IN 163,672 13,791 - - - - POLICE GRANTS FUND Total 1,212,525 407,107 246,754 332,732 136,823 119,698 226 FEDERAL ASSET SEIZURE 30 3000 2263000 2263000-43115 43115 FEDERAL MONIES - - - 8,996 - - 226 FEDERAL ASSET SEIZURE 30 3000 2263000 2263000-46110 46110 BANK INTEREST - - - 10,080 10,209 10,209 226 FEDERAL ASSET SEIZURE 30 3000 2263000 2263000-48110 48110 INTERFUND TRANSFER IN - 207,798 - - - - FEDERAL ASSET SEIZURE Total - 207,798 - 19,076 10,209 10,209 227 SOUTH COUNTY YOUTH TASK FORCE 30 3000 2273000 2273000-43125 43125 COUNTY GRANT - 294,238 370,678 301,483 245,678 245,678 227 SOUTH COUNTY YOUTH TASK FORCE 30 3000 2273000 2273000-46110 46110 BANK INTEREST - 970 - 5,329 6,379 6,379 227 SOUTH COUNTY YOUTH TASK FORCE 30 3000 2273000 2273000-47810 47810 MISC REVENUES - 90,678 - - - - 227 SOUTH COUNTY YOUTH TASK FORCE 30 3000 2273000 2273000-48110 48110 INTERFUND TRANSFER IN - 122,526 - - - - SOUTH COUNTY YOUTH TASK FORCE Total - 508,412 370,678 306,812 252,057 252,057 228 BRD STATE&COMM CORR TITLE II 30 3000 2283000 2283000-43110 43110 FEDERAL GRANT 57,476 89,068 819,167 424,311 - - 228 BRD STATE&COMM CORR TITLE II 30 3000 2283000 2283000-43120 43120 STATE GRANT - - - - - - 228 BRD STATE&COMM CORR TITLE II 30 3000 2283000 2283000-46110 46110 BANK INTEREST - - - - - - BRD STATE&COMM CORR TITLE II Total 57,476 89,068 819,167 424,311 - - 229 SPECIAL ENFORCEMENT OPS FUND 30 3000 2293000 2293000-43120 43120 STATE GRANT - - 300 - 3,000 3,000 229 SPECIAL ENFORCEMENT OPS FUND 30 3000 2293000 2293000-46110 46110 BANK INTEREST 2,631 7,361 2,575 8,196 7,968 7,968 229 SPECIAL ENFORCEMENT OPS FUND 30 3000 2293000 2293000-47810 47810 MISC REVENUES - 6,917 - - - - SPECIAL ENFORCEMENT OPS FUND Total 2,631 14,278 2,875 8,196 10,968 10,968 230 BEGIN LOAN FUND 40 4060 2304060 2304060-46110 46110 BANK INTEREST 1,347 3,730 1,311 4,149 4,102 4,102 230 BEGIN LOAN FUND 40 4060 2304060 2304060-46310 46310 OTHER INTEREST - - - - - - 230 BEGIN LOAN FUND 40 4060 2304060 2304060-47110 47110 PRINCIPAL LOAN REPAYMENT - - - - - - BEGIN LOAN FUND Total 1,347 3,730 1,311 4,149 4,102 4,102 235 RESIDENTIAL DEV LOAN PROG FUND 40 4060 2354060 2354060-46110 46110 BANK INTEREST 4 11 - - - - RESIDENTIAL DEV LOAN PROG FUND Total 4 11 - - - -
240 PROP 172 SALES TAX - P.S. FUND 30 3000 2403000 2403000-40140 40140 SALES TAX 301,913 353,350 372,700 325,000 321,900 326,300 240 PROP 172 SALES TAX - P.S. FUND 30 3000 2403000 2403000-46110 46110 BANK INTEREST 1,353 6,112 1,171 316 4,524 583 240 PROP 172 SALES TAX - P.S. FUND 30 3000 2403000 2403000-48110 48110 INTERFUND TRANSFER IN - - - - - - PROP 172 SALES TAX - P.S. FUND Total 303,265 359,462 373,871 325,316 326,424 326,883 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-43110 43110 FEDERAL GRANT 1,002,854 557,285 496,246 496,246 400,000 400,000 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-46110 46110 BANK INTEREST 146 628 - - 386 24 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-46310 46310 OTHER INTEREST - - - - - - 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-46510 46510 RENTS,LEASES&CONCESSIONS 6,346 311 - - - - 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-47830 47830 DEPOSIT FOR OTHERS - - - - - - 245 COMMUNITY DEV BLOCK GRANT FUND 40 4060 2454060 2454060-48110 48110 INTERFUND TRANSFER IN - - - - - - COMMUNITY DEV BLOCK GRANT FUND Total 1,009,346 558,223 496,246 496,246 400,386 400,024 250 HOUSING TRUST FUND 40 4060 2504060 2504060-45135 45135 LOAN ADMINISTRATION FEES - - - - - - 250 HOUSING TRUST FUND 40 4060 2504060 2504060-46110 46110 BANK INTEREST 18,957 58,489 18,334 57,797 28,026 21,532 250 HOUSING TRUST FUND 40 4060 2504060 2504060-46310 46310 OTHER INTEREST 6,216 2,151 6,000 2,494 3,300 3,300 250 HOUSING TRUST FUND 40 4060 2504060 2504060-46510 46510 RENTS,LEASES&CONCESSIONS 16,885 16,349 18,000 - 8,184 8,184 250 HOUSING TRUST FUND 40 4060 2504060 2504060-47110 47110 PRINCIPAL LOAN REPAYMENT - - 50,000 11,445 11,500 11,500 250 HOUSING TRUST FUND 40 4060 2504060 2504060-47410 47410 EQUITY SHARE PAYMENT 502,300 393,860 203,000 - 200,000 200,000 250 HOUSING TRUST FUND 40 4060 2504060 2504060-47810 47810 MISC REVENUES 18,349 - - 1,353 101,000 300,000 250 HOUSING TRUST FUND 40 4060 2504060 2504060-48110 48110 INTERFUND TRANSFER IN 268,276 246 - - - - HOUSING TRUST FUND Total 830,983 471,095 295,334 73,089 352,010 544,516 255 LOS ARROYOS FUND 40 4060 2554060 2554060-46110 46110 BANK INTEREST 9,387 27,806 9,204 44,525 45,274 48,406 255 LOS ARROYOS FUND 40 4060 2554060 2554060-47110 47110 PRINCIPAL LOAN REPAYMENT - - - - - - 255 LOS ARROYOS FUND 40 4060 2554060 2554060-47410 47410 EQUITY SHARE PAYMENT 137,127 177,952 - 143,000 166,000 166,000 255 LOS ARROYOS FUND 40 4060 2554060 2554060-47810 47810 MISC REVENUES - 118,913 - - - - LOS ARROYOS FUND Total 146,514 324,671 9,204 187,525 211,274 214,406 260 COMM FACILITIES DISTRICT FUND 55 5500 2605500 2605500-40110 40110 PROPERTY TAX SECURED 507,823 533,365 550,000 550,000 577,500 606,375 260 COMM FACILITIES DISTRICT FUND 55 5500 2605500 2605500-46110 46110 BANK INTEREST 25,397 72,998 24,521 84,427 81,527 77,116 COMM FACILITIES DISTRICT FUND Total 533,219 606,363 574,521 634,427 659,027 683,491 265 BEGIN REUSE FUND 40 4060 2654060 2654060-46110 46110 BANK INTEREST 5,820 10,486 5,694 18,254 17,991 17,991 265 BEGIN REUSE FUND 40 4060 2654060 2654060-46310 46310 OTHER INTEREST - - - - - - 265 BEGIN REUSE FUND 40 4060 2654060 2654060-47110 47110 PRINCIPAL LOAN REPAYMENT - - - - - -

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
265 BEGIN REUSE FUND 40 4060 2654060 2654060-48110 48110 INTERFUND TRANSFER IN - - - - - - BEGIN REUSE FUND Total 5,820 10,486 5,694 18,254 17,991 17,991 270 CALHOME FUND 40 4060 2704060 2704060-46110 46110 BANK INTEREST 5,938 16,726 5,779 20,067 19,839 19,839 270 CALHOME FUND 40 4060 2704060 2704060-46310 46310 OTHER INTEREST - - - - - - 270 CALHOME FUND 40 4060 2704060 2704060-47110 47110 PRINCIPAL LOAN REPAYMENT - - - - - - 270 CALHOME FUND 40 4060 2704060 2704060-47410 47410 EQUITY SHARE PAYMENT - - - - - - 270 CALHOME FUND 40 4060 2704060 2704060-47810 47810 MISC REVENUES - 36,897 - - - - CALHOME FUND Total 5,938 53,623 5,779 20,067 19,839 19,839 272 CALHOME REUSE FUND 40 4060 2724060 2724060-46110 46110 BANK INTEREST - - - - - - 272 CALHOME REUSE FUND 40 4060 2724060 2724060-46310 46310 OTHER INTEREST - - - - - - 272 CALHOME REUSE FUND 40 4060 2724060 2724060-47110 47110 PRINCIPAL LOAN REPAYMENT - - - - - - 272 CALHOME REUSE FUND 40 4060 2724060 2724060-48110 48110 INTERFUND TRANSFER IN - - - - - - CALHOME REUSE FUND Total - - - - - -
275 FIRE SPECIAL GRANTS FUND 35 3500 2753500 2753500-46110 46110 BANK INTEREST 359 993 349 1,105 1,092 1,092 FIRE SPECIAL GRANTS FUND Total 359 993 349 1,105 1,092 1,092 280 GOLF COURSE FUND 45 4500 2804500 2804500-46110 46110 BANK INTEREST - - - 255 5,061 10,078 280 GOLF COURSE FUND 45 4500 2804500 2804500-47810 47810 MISC REVENUES 24,237 - - - - - 280 GOLF COURSE FUND 45 4500 2804500 2804500-47840 47840 CONTRACTOR PAYMENTS 57,012 51,411 52,400 134,362 110,000 113,000 GOLF COURSE FUND Total 81,249 51,411 52,400 134,617 115,061 123,078 290 RECREATION FUND 50 5000 2905000 2905000-45120 45120 USER FEES - 475,581 - 480,000 504,000 519,120 290 RECREATION FUND 50 5000 2905000 2905000-46110 46110 BANK INTEREST - - 16,225 - 70,948 45,445 290 RECREATION FUND 50 5000 2905000 2905000-47710 47710 CONTRIBU/ GIFTS & DONATIONS - - - - - - 290 RECREATION FUND 50 5000 2905000 2905000-47810 47810 MISC REVENUES 3,212 10,288 2,500 2,500 2,500 2,500 290 RECREATION FUND 50 5000 2905000 2905000-48110 48110 INTERFUND TRANSFER IN 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 290 RECREATION FUND 50 5010 2905010 2905010-45120 45120 USER FEES 17,054 7,894 18,750 16,000 16,800 17,304 290 RECREATION FUND 50 5010 2905010 2905010-47710 47710 CONTRIBU/ GIFTS & DONATIONS - - - - - - 290 RECREATION FUND 50 5015 2905015 2905015-45120 45120 USER FEES 6,800 1,680 12,000 600 800 900 290 RECREATION FUND 50 5020 2905020 2905020-45120 45120 USER FEES 1,586 1,142 2,000 1,000 1,500 1,575 290 RECREATION FUND 50 5020 2905020 2905020-47710 47710 CONTRIBU/ GIFTS & DONATIONS - - - - - - 290 RECREATION FUND 50 5025 2905025 2905025-45120 45120 USER FEES 5,000 239 3,600 3,760 3,800 3,800 290 RECREATION FUND 50 5025 2905025 2905025-47710 47710 CONTRIBU/ GIFTS & DONATIONS - - - - - - 290 RECREATION FUND 50 5025 2905025 2905025-47810 47810 MISC REVENUES - 5,000 - - - - 290 RECREATION FUND 50 5030 2905030 2905030-45120 45120 USER FEES - - - - - - 290 RECREATION FUND 50 5030 2905030 2905030-47710 47710 CONTRIBU/ GIFTS & DONATIONS - 250 - - - - 290 RECREATION FUND 50 5030 2905030 2905030-48110 48110 INTERFUND TRANSFER IN 38,452 32,185 37,313 37,313 - - 290 RECREATION FUND 50 5035 2905035 2905035-45120 45120 USER FEES 384,173 157,250 551,250 168,000 173,040 178,500 290 RECREATION FUND 50 5035 2905035 2905035-47810 47810 MISC REVENUES 9,777 - - - - - 290 RECREATION FUND 50 5040 2905040 2905040-45120 45120 USER FEES - (279) - - - - 290 RECREATION FUND 50 5040 2905040 2905040-46315 46315 INTEREST INCOME LEASE 1,295 - - - - - 290 RECREATION FUND 50 5040 2905040 2905040-46420 46420 UNREALIZED GAIN/LOSS - (796) - - - - 290 RECREATION FUND 50 5040 2905040 2905040-46510 46510 RENTS,LEASES&CONCESSIONS 90,298 65,086 113,850 117,560 127,486 131,310 290 RECREATION FUND 50 5040 2905040 2905040-47115 47115 LEASE REVENUE 59,280 159 - - - - 290 RECREATION FUND 50 5050 2905050 2905050-47710 47710 CONTRIBU/ GIFTS & DONATIONS - - - - - - 290 RECREATION FUND 50 5055 2905055 2905055-45120 45120 USER FEES - - - - - - 290 RECREATION FUND 50 5055 2905055 2905055-48110 48110 INTERFUND TRANSFER IN - - - - - - 290 RECREATION FUND 50 5060 2905060 2905060-45120 45120 USER FEES 17,978 2,344 56,500 2,810 3,750 4,313 290 RECREATION FUND 50 5060 2905060 2905060-48110 48110 INTERFUND TRANSFER IN - - - - - - 290 RECREATION FUND 50 5070 2905070 2905070-45120 45120 USER FEES 38,970 13,644 13,545 888 1,200 1,500 RECREATION FUND Total 2,173,875 2,271,669 2,327,533 2,330,430 2,405,824 2,406,267 293 OPIOID SETTLEMENT 10 1000 2931000 2931000-43120 43120 STATE GRANT - - - - - - 293 OPIOID SETTLEMENT 10 1000 2931000 2931000-46110 46110 BANK INTEREST 420 1,976 270 7,494 8,129 8,129 293 OPIOID SETTLEMENT 10 1000 2931000 2931000-47810 47810 MISC REVENUES 46,131 43,127 - 106,776 - - OPIOID SETTLEMENT Total 46,551 45,103 270 114,270 8,129 8,129 400 CAPITAL PROJECT FUND 35 3500 4003500 4003500-47810 47810 MISC REVENUES - 2,336,791 6,153,663 6,153,663 - - 400 CAPITAL PROJECT FUND 35 3500 4003500 4003500-48110 48110 INTERFUND TRANSFER IN - - 1,046,337 1,046,337 - - 400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-43110 43110 FEDERAL GRANT - - 3,089,961 42,000 3,308,000 -

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-43120 43120 STATE GRANT - - 350,000 - 350,000 - 400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-43130 43130 OTHER INTERGOVTL REVENUE - - 314,031 172,903 259,618 - 400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-46110 46110 BANK INTEREST 109,091 462,555 41,033 328,207 560,999 240,046 400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-47810 47810 MISC REVENUES - - - - - - 400 CAPITAL PROJECT FUND 55 5500 4005500 4005500-48110 48110 INTERFUND TRANSFER IN - - - - - - CAPITAL PROJECT FUND Total 109,091 2,799,346 10,995,025 7,743,110 4,478,617 240,046 405 GILROY COMMUNITY LIBRARY FUND 20 2010 4052010 4052010-46110 46110 BANK INTEREST - - - - 132,001 16,452 405 GILROY COMMUNITY LIBRARY FUND 20 2010 4052010 4052010-46310 46310 OTHER INTEREST 123,138 224,247 100,000 264,921 - - 405 GILROY COMMUNITY LIBRARY FUND 20 2010 4052010 4052010-46420 46420 UNREALIZED GAIN/LOSS (13,438) 60,595 - - - - 405 GILROY COMMUNITY LIBRARY FUND 20 2010 4052010 4052010-48110 48110 INTERFUND TRANSFER IN - - - - - - GILROY COMMUNITY LIBRARY FUND Total 109,700 284,842 100,000 264,921 132,001 16,452 410 STORM DRAIN DEVELOPMENT FUND 55 5500 4105500 4105500-45150 45150 DEVELOPER'S IMPACT FEE 34,005 35,053 259,878 63,110 30,000 30,000 410 STORM DRAIN DEVELOPMENT FUND 55 5500 4105500 4105500-46110 46110 BANK INTEREST 21,044 66,713 20,065 75,745 62,192 42,264 410 STORM DRAIN DEVELOPMENT FUND 55 5500 4105500 4105500-46210 46210 INTERFUND INTEREST INCOME 11,635 - - - - - 410 STORM DRAIN DEVELOPMENT FUND 55 5500 4105500 4105500-48110 48110 INTERFUND TRANSFER IN 1,196 13,174 93,668 93,668 96,853 100,998 STORM DRAIN DEVELOPMENT FUND Total 67,880 114,939 373,611 232,523 189,045 173,262 415 UTILITY UNDERGROUNDING FUND 55 5500 4155500 4155500-46110 46110 BANK INTEREST - - - - - - 415 UTILITY UNDERGROUNDING FUND 55 5500 4155500 4155500-47310 47310 MISC REIMBURSEMENTS - - - - - - UTILITY UNDERGROUNDING FUND Total - - - - - -
418 BANS REFINANCE SER 2009 55 5500 4185500 4185500-46110 46110 BANK INTEREST - - - - - - 418 BANS REFINANCE SER 2009 55 5500 4185500 4185500-48110 48110 INTERFUND TRANSFER IN - - - - - - BANS REFINANCE SER 2009 Total - - - - - -
420 STREET TREE DEVELOPMENT FUND 55 5500 4205500 4205500-45150 45150 DEVELOPER'S IMPACT FEE 8,008 21,031 2,000 - 5,000 5,000 420 STREET TREE DEVELOPMENT FUND 55 5500 4205500 4205500-46110 46110 BANK INTEREST 2,365 7,674 2,275 8,532 8,401 8,525 420 STREET TREE DEVELOPMENT FUND 55 5500 4205500 4205500-48110 48110 INTERFUND TRANSFER IN 27 54 54 54 54 54 STREET TREE DEVELOPMENT FUND Total 10,400 28,760 4,329 8,586 13,455 13,579 422 STORMWATER MNGMT 55 5500 4225500 4225500-45150 45150 DEVELOPER'S IMPACT FEE - - - - - - 422 STORMWATER MNGMT 55 5500 4225500 4225500-46110 46110 BANK INTEREST 10,414 23,783 9,122 39,002 36,084 31,067 422 STORMWATER MNGMT 55 5500 4225500 4225500-47310 47310 MISC REIMBURSEMENTS - - - - - - 422 STORMWATER MNGMT 55 5500 4225500 4225500-47810 47810 MISC REVENUES 783,676 - - - - - 422 STORMWATER MNGMT 55 5500 4225500 4225500-48110 48110 INTERFUND TRANSFER IN - - - - - - STORMWATER MNGMT Total 794,089 23,783 9,122 39,002 36,084 31,067 425 TRAFFIC IMPACT FUND 55 5500 4255500 4255500-45150 45150 DEVELOPER'S IMPACT FEE 3,465,903 2,242,914 9,221,157 3,276,113 2,000,000 2,500,000 425 TRAFFIC IMPACT FUND 55 5500 4255500 4255500-46110 46110 BANK INTEREST 302,563 770,550 304,498 894,586 767,193 677,718 425 TRAFFIC IMPACT FUND 55 5500 4255500 4255500-47810 47810 MISC REVENUES - - - - - - 425 TRAFFIC IMPACT FUND 55 5500 4255500 4255500-48110 48110 INTERFUND TRANSFER IN 48,769 97,538 97,538 97,538 97,538 97,538 TRAFFIC IMPACT FUND Total 3,817,235 3,111,002 9,623,193 4,268,237 2,864,731 3,275,256 430 SEWER DEVELOPMENT FUND 55 5500 4305500 4305500-45150 45150 DEVELOPER'S IMPACT FEE 1,122,624 2,178,317 5,620,243 1,956,917 1,300,000 1,500,000 430 SEWER DEVELOPMENT FUND 55 5500 4305500 4305500-46110 46110 BANK INTEREST 233,678 704,397 228,868 811,397 761,530 645,581 430 SEWER DEVELOPMENT FUND 55 5500 4305500 4305500-46210 46210 INTERFUND INTEREST INCOME 10,950 - - - - - 430 SEWER DEVELOPMENT FUND 55 5500 4305500 4305500-48110 48110 INTERFUND TRANSFER IN 28,351 61,809 410,049 410,049 56,702 56,702 SEWER DEVELOPMENT FUND Total 1,395,602 2,944,523 6,259,160 3,178,363 2,118,232 2,202,283 435 WATER DEVELOPMENT FUND 55 5500 4355500 4355500-45150 45150 DEVELOPER'S IMPACT FEE 317,576 697,174 1,512,512 495,039 300,000 400,000 435 WATER DEVELOPMENT FUND 55 5500 4355500 4355500-46110 46110 BANK INTEREST 100,028 296,672 97,635 349,447 226,780 141,308 435 WATER DEVELOPMENT FUND 55 5500 4355500 4355500-48110 48110 INTERFUND TRANSFER IN 5,893 11,786 11,786 11,786 11,786 11,786 WATER DEVELOPMENT FUND Total 423,497 1,005,632 1,621,933 856,272 538,566 553,094 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-43120 43120 STATE GRANT - - - - - - 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-45150 45150 DEVELOPER'S IMPACT FEE 2,073,786 3,937,764 10,934,196 3,100,584 4,250,000 4,250,000 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-46110 46110 BANK INTEREST 60,303 100,175 63,622 135,110 418,159 400,000 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-47810 47810 MISC REVENUES - 112,500 - - - - 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-48110 48110 INTERFUND TRANSFER IN 40,763 81,526 81,526 81,526 81,526 81,526 440 PUBLIC FACILITIES IMPACT FUND 55 5500 4405500 4405500-48420 48420 BOND PROCEEDS - - 12,500,000 - 15,000,000 15,000,000 PUBLIC FACILITIES IMPACT FUND Total 2,174,852 4,231,964 23,579,344 3,317,220 19,749,685 19,731,526 487 DOWNTOWN BEAUTIFICATION 55 5500 4875500 4875500-43120 43120 STATE GRANT 181,530 692,860 - 2,842,510 - - 487 DOWNTOWN BEAUTIFICATION 55 5500 4875500 4875500-46110 46110 BANK INTEREST - - - - - - DOWNTOWN BEAUTIFICATION Total 181,530 692,860 - 2,842,510 - -

City of Gilroy
Revenues Line-item Details by Fund
FY26 and FY27 Recommended Budget Draft as of 05/07/2025

FUND FUND NAME DEPARTMENT
CODE
DIVISION ORGANIZATION GL ACCOUNT OBJECT DESCRIPTION 2023 ACTUAL 2024 ACTUAL 2025 AMENDED BUDGET
2025 YEAR-END

PROJECTION
2026

RECOMMENDED
BUDGET
2027

RECOMMENDED
BUDGET
500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-40110 40110 PROPERTY TAX SECURED 1,841,915 1,731,563 1,845,000 1,737,000 1,800,000 1,800,000 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-40115 40115 PROPERTY TAX UNSECURED - 63,422 8,000 60,000 50,000 50,000 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-40120 40120 SUPPLEMENTAL PROPERTY TAX 84,739 35,978 40,000 22,286 20,000 20,000 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-40130 40130 HOMEOWNER'S EXEMPTION 1,205 7,291 4,950 6,100 5,000 5,000 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-46110 46110 BANK INTEREST 12,594 39,487 11,904 53,624 67,233 68,535 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-46310 46310 OTHER INTEREST - - - - - - 500 GILROY COM LIBRARY DS FUND 20 2010 5002010 5002010-48420 48420 BOND PROCEEDS - - - - - - GILROY COM LIBRARY DS FUND Total 1,940,453 1,877,743 1,909,854 1,879,010 1,942,233 1,943,535 505 CA ENERGY COMM LOAN FUND 55 5500 5055500 5055500-46110 46110 BANK INTEREST 590 1,897 624 2,077 1,051 1,024 505 CA ENERGY COMM LOAN FUND 55 5500 5055500 5055500-48110 48110 INTERFUND TRANSFER IN 99,863 99,863 99,863 99,863 99,863 99,863 CA ENERGY COMM LOAN FUND Total 100,453 101,760 100,487 101,940 100,914 100,887 510 LEASE REVEN BONDS DS 2013 FUND 20 2010 5102010 5102010-46110 46110 BANK INTEREST 1,585 1,245 1,695 8,666 8,823 8,731 510 LEASE REVEN BONDS DS 2013 FUND 20 2010 5102010 5102010-46310 46310 OTHER INTEREST 16,371 265 - 2,666 - - 510 LEASE REVEN BONDS DS 2013 FUND 20 2010 5102010 5102010-48110 48110 INTERFUND TRANSFER IN 1,840,156 1,614,885 1,614,885 1,614,885 1,618,000 1,618,000 510 LEASE REVEN BONDS DS 2013 FUND 20 2010 5102010 5102010-48420 48420 BOND PROCEEDS 14,587,831 - - - - - LEASE REVEN BONDS DS 2013 FUND Total 16,445,942 1,616,394 1,616,580 1,626,217 1,626,823 1,626,731 515 PFFA REFUNDING LEASE2010 FUND 20 2010 5152010 5152010-46110 46110 BANK INTEREST - - - - - - 515 PFFA REFUNDING LEASE2010 FUND 20 2010 5152010 5152010-46310 46310 OTHER INTEREST - - - - - - 515 PFFA REFUNDING LEASE2010 FUND 20 2010 5152010 5152010-47810 47810 MISC REVENUES - - - - - - 515 PFFA REFUNDING LEASE2010 FUND 20 2010 5152010 5152010-48110 48110 INTERFUND TRANSFER IN - - - - - - 515 PFFA REFUNDING LEASE2010 FUND 20 2010 5152010 5152010-48420 48420 BOND PROCEEDS - - - - - - PFFA REFUNDING LEASE2010 FUND Total - - - - - -
520 LEASE REV BONDS SER 2020A FUND 20 2010 5202010 5202010-46110 46110 BANK INTEREST 8,744 19,248 8,345 21,867 32,102 31,956 520 LEASE REV BONDS SER 2020A FUND 20 2010 5202010 5202010-46310 46310 OTHER INTEREST 760 1,232 - 2,254 1,200 1,200 520 LEASE REV BONDS SER 2020A FUND 20 2010 5202010 5202010-47810 47810 MISC REVENUES - - - - - - 520 LEASE REV BONDS SER 2020A FUND 20 2010 5202010 5202010-48110 48110 INTERFUND TRANSFER IN 1,347,875 1,349,125 1,353,250 1,353,250 1,350,250 1,350,125 520 LEASE REV BONDS SER 2020A FUND 20 2010 5202010 5202010-48420 48420 BOND PROCEEDS - - - - - - LEASE REV BONDS SER 2020A FUND Total 1,357,379 1,369,606 1,361,595 1,377,371 1,383,552 1,383,281 600 FLEET SERVICES FUND 60 6000 6006000 6006000-45120 45120 USER FEES 2,422,110 1,984,018 2,319,086 2,319,086 2,137,154 2,272,404 600 FLEET SERVICES FUND 60 6000 6006000 6006000-45125 45125 SERVICE CHARGE - 500,000 - - - - 600 FLEET SERVICES FUND 60 6000 6006000 6006000-46110 46110 BANK INTEREST 64,854 172,144 63,741 174,595 106,680 112,402 600 FLEET SERVICES FUND 60 6000 6006000 6006000-46210 46210 INTERFUND INTEREST INCOME 36,273 32,914 - - - - 600 FLEET SERVICES FUND 60 6000 6006000 6006000-47610 47610 CAPITAL CONTRIBUTIONS - - - - - - 600 FLEET SERVICES FUND 60 6000 6006000 6006000-47810 47810 MISC REVENUES 18,354 19,048 - - - - 600 FLEET SERVICES FUND 60 6000 6006000 6006000-48110 48110 INTERFUND TRANSFER IN - - 845,506 845,506 1,222,572 1,163,033 FLEET SERVICES FUND Total 2,541,591 2,708,123 3,228,333 3,339,187 3,466,406 3,547,839 605 WORKER'S COMPENSATION FUND 25 2510 6052510 6052510-45120 45120 USER FEES 1,500,000 1,576,406 1,653,750 1,653,750 2,100,000 2,289,000 605 WORKER'S COMPENSATION FUND 25 2510 6052510 6052510-46110 46110 BANK INTEREST 65,505 193,044 62,396 200,000 209,647 208,920 605 WORKER'S COMPENSATION FUND 25 2510 6052510 6052510-47810 47810 MISC REVENUES - 4,106 - - - - WORKER'S COMPENSATION FUND Total 1,565,505 1,773,556 1,716,146 1,853,750 2,309,647 2,497,920 610 LIABILITY INSURANCE FUND 25 2510 6102510 6102510-45120 45120 USER FEES 1,380,224 2,171,267 2,581,267 2,581,267 2,921,459 3,221,069 610 LIABILITY INSURANCE FUND 25 2510 6102510 6102510-46110 46110 BANK INTEREST 29,318 77,582 25,729 80,000 123,844 134,307 610 LIABILITY INSURANCE FUND 25 2510 6102510 6102510-47210 47210 VANDALISM & LOSS CHARGE 122,491 131,081 331,000 331,000 200,000 200,000 610 LIABILITY INSURANCE FUND 25 2510 6102510 6102510-47810 47810 MISC REVENUES 31,384 14,554 30,000 30,000 15,000 15,000 LIABILITY INSURANCE FUND Total 1,563,418 2,394,484 2,967,996 3,022,267 3,260,303 3,570,376 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-45120 45120 USER FEES 2,292,307 4,138,184 4,233,233 4,233,234 3,973,928 4,097,086 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-46110 46110 BANK INTEREST 30,808 73,690 31,699 133,484 113,691 106,766 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-46315 46315 INTEREST INCOME LEASE 9,686 8,544 - - - - 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-46510 46510 RENTS,LEASES&CONCESSIONS 54,239 45,700 180,058 160,383 123,910 123,910 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-47115 47115 LEASE REVENUE 160,706 161,231 - - - - 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-47810 47810 MISC REVENUES - 2,733 - 9,000 6,000 7,000 615 FACILITY SERVICES FUND 65 6500 6156500 6156500-48110 48110 INTERFUND TRANSFER IN 133,291 - - - - - FACILITY SERVICES FUND Total 2,681,037 4,430,082 4,444,990 4,536,101 4,217,529 4,334,762 620 INFORMATION TECHNOLOGY FUND 70 7000 6207000 6207000-45120 45120 USER FEES 2,912,645 4,447,357 3,901,954 3,901,954 3,592,379 3,486,049 620 INFORMATION TECHNOLOGY FUND 70 7000 6207000 6207000-46110 46110 BANK INTEREST 47,781 133,054 49,644 169,571 128,414 92,960 620 INFORMATION TECHNOLOGY FUND 70 7000 6207000 6207000-47810 47810 MISC REVENUES - - 19,822 - - -