City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
Function
Fiscal Year
2015 2016 2017 2018 2019
General Government
City Buildings 55 55 55 57 57
Public Safety
Police
Fi
Public Works
Park sites 16 16 16 19 19
Centerline Miles of Streets 120 119 126 151 166
Number of Streetlights 4,150 4,773 4,794 4,841 4,861
Miles of Storm Trunk Mains* 31 31 37 39 40
Miles of Sewer Mains 111 111 151 160 161
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 Water Meters in Municipal Service Area 14,127 14,669 14,783 14,450 15,133 Miles of Water Mains 152 152 204 205 210
Number of Fire Hydrants 2,150 2,265 2,290 1,948 2,229
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments.
Police Stations 1 1 1 1 1
Police Vehicles 79 86 87 83 103
re
Fire Stations 3 3 3 3 3
Fire Vehicles 20 20 21 20 19
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
Function
Fiscal Year
2020 2021 2022 2023 2024
General Government
City Buildings 57 57 57 57 57
Public Safety
Police
Fi
Public Works
Park sites 20 21 21 21 23
Centerline Miles of Streets 166 166 168 125 127
Number of Streetlights 4,885 4,295 4,315 4,320 4,322
Miles of Storm Trunk Mains* 40 40 131 131 131
Miles of Sewer Mains 163 162 168 168 168
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 Water Meters in Municipal Service Area 15,220 15,266 15,595 15,553 15,822 Miles of Water Mains 205 219 209 213 219
Number of Fire Hydrants 2,187 2,293 2,317 2,321 2,321
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.
Source: City of Gilroy, Various City Departments
Police Stations 1 1 1 1 1
Police Vehicles 109 109 113 117 122
re
Fire Stations 3 3 3 3 3
Fire Vehicles 19 20 20 21 21
APPENDIX
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Glossary
Accounts Payable
A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government.
Accounts Receivable
An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government.
Accounting System
The total structure of records and procedures that identify, record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components.
Accrued Interest
The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date).
Accrual Basis of Accounting
A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows.
Adopted Budget
The City Council approved the annual budget, establishing the legal authority for the expenditure of funds as set forth in the adopted Council budget resolution.
American Rescue Plan Act (ARPA)
The American Rescue Plan Act of 2021 (ARPA), also called the COVID-19 Stimulus Package, is a $1.9 trillion economic stimulus bill passed by the 117th United States Congress to speed up the country's recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. The plan provided aid to individuals, small businesses and governmental agencies, including the City of Gilroy.
Amortization
The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule, including related interest and other finance charges.
Annual Comprehensive Financial Report (ACFR)
The official annual report of the City’s financial condition at the conclusion of the fiscal year. The report is prepared to conform to Generally Accepted Accounting Principles (GAAP) for governmental units and presentation of the financial data in conformity with the Adopted Budget.
Appropriation
Legal authorization, as required by the City Charter, granted to the City Administrator by the City Council to expend monies, and/or to incur legal obligations for specific departmental purposes. An appropriation is usually limited in amount, as well as to the time when it may be expended.
Assessed Valuation
A dollar value placed upon real estate or other property by Santa Clara County as a basis for levying property taxes.
Assets
Property owned by a government, which has monetary value.
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Audit
An examination of a community's financial systems, procedures, and data prepared by an independent certified public accountant (CPA), the primary objective of an audit is to determine if the City’s financial statements fairly present the City’s financial position and results of operations in conformity with generally accepted accounting principles.
Authorized Positions
Regular positions are authorized in the budget to be employed during the fiscal year.
Basis of Accounting
The timing of recognition, that is, when the effects of transactions or events are recognized for financial reporting or budgeting purposes. The three basis of accounting for governmental agencies are: (1) cash basis (when cash is received or paid), (2) accrual basis (when the underlying transaction or event takes place), and (3) modified accrual basis (revenues are recognized in the accounting period in which they become available and measurable and expenditures are recognized in the accounting period in which the fund liability occurred).
Balance Sheet
A statement purporting to present the financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specific date.
Balanced Budget
When the total of revenues and other financing sources is equal to or greater than the total of expenditures and other financing uses, the budget is balanced.
Beginning Fund Balance
Fund balance available in a fund from the end of the prior year for use in the following year.
Bond
A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year.
Bond Rating
An evaluation of a bond issuer’s credit quality and perceived ability to pay the principal and interest on time and in full. Two agencies regularly review city bonds and generate bond ratings: Moody’s Investors Service and Standard and Poor’s Ratings Group.
Budget
A plan of financial and program operations listing an estimate of proposed appropriations or expenses and the proposed means of financing them, for a particular period. The budget is proposed or preliminary until it has been adopted by the City Council.
Budget Calendar
The schedule of key dates or milestones which a government follows in preparation and adoption of a budget.
Budget Adoption
Formal action by the City Council, which sets the spending path for the year.
Budget Message
A general discussion of the proposed budget as presented in writing by the City Administrator to the City Council. The message contains an explanation of the principal budget items and summarizes the proposed budget relative to the current year adopted budget.
Budgetary Control
The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues.
CalPERS
State of California Public Employees’ Retirement System.
Capital Asset
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A tangible, fixed asset that is long-term in nature, of significant value, and obtained or controlled as a result of past transactions, events, or circumstances. Fixed assets include land, buildings, equipment, improvements to buildings, and infrastructure (i.e., streets, highways, bridges, and other immovable assets). A capital asset is defined as an asset with a useful life extending beyond a single accounting period.
Capital Budget
A financial plan of proposed capital improvement projects and the means of financing them for a given period of time.
Capital Outlay
A budget category which budgets all equipment having a unit cost of more than $10,000 and an estimated useful life of more than three years. Capital Outlay items are budgeted in the operating budget.
Cash Basis of Accounting
A basis of accounting under which transactions are recognized only when cash is received or disbursed.
Certificates of Participation (COPs)
This financing technique provides long-term financing through a lease, installment sale agreement or loan agreement. Certificates of Participation (COPs) allow the public to purchase (in $5,000 increments) participation in a stream of lease payments, installment payments or loan payments relating to the acquisition or construction of specific equipment, land, or facilities.
City Charter
Legal authority approved in August of 1959 by the voters of Gilroy under the State of California Constitution establishing the current "Council - Administrator" form of government organization, subsequently approved by the California legislature in 1960.
Community Priorities
Strategic work objectives that require collaborative action by several City departments and partnerships with other elements of the community.
Consumer Price Index (CPI)
A statistical description of price levels provided by the U.S Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.
Contingency
A budgetary reserve set aside for emergency or unanticipated expenditures, revenue shortfalls, and/or unknown expenditures.
Department
An operational and budgetary unit designated by the City Council to define and organize City operations, or a group of related operations within a functional area.
Debt
An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants, and notes.
Debt Financing
Issuance of bonds and other debt instruments to finance municipal improvements and services.
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Debt Service
Debt service refers to the interest and principal payments on bond issues and Certificate of Participation, and includes the issuance costs related to bond funding.
Deficit
The excess of an entity’s liabilities over its assets, or the excess of expenditures or expenses over revenue during a single accounting period.
Depreciation
(1) Expiration in the service life of capital outlay assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence. (2) The portion of the cost of a capital asset that is charged as an expense during a particular period.
Division
An organizational unit consisting of programs or activities within a department which furthers the objectives of the City Council by providing services or a product.
Encumbrances
Financial commitments related to unperformed contracts for goods or services for which part of an appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated.
Enterprise Fund
An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. These funds are entirely or predominately selfsupporting. With an enterprise fund, all costs of service delivery--direct, indirect, and capital costs—are identified. This allows the City to recover total service costs through user fees. Enterprise accounting also enables cities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end.
Expenditure
The payment made for cost of services rendered, materials, equipment, and capital improvements.
Expense
Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest, or other charges.
Expense Category
Expense object categories: Salaries and Benefits, Supplies and Expenses, Internal Services, Capital Outlay, etc.
Fee
The payment for direct receipt of a public service by the party who benefits from the service.
Fiduciary Fund
A fund type to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. The fiduciary fund category includes pension, trust funds, investment trust funds, private-purpose trust funds, and agency funds.
Fiscal Year
A twelve-month accounting period of time to which the budget applies; for Gilroy it is July 1 through June 30.
Fringe Benefits
Benefits including employee retirement, Medicare, health, dental, vision, life insurance, uniforms, and deferred compensation plans.
FTE
Full Time Equivalent Employee (FTE) 2,080 hours per year = 1.0 Full-Time Equivalent position.
Fund
An independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created. There are three major types of fund: Governmental (general, special revenue, debt service, capital projects, and permanent), Proprietary (enterprise and internal service), and Fiduciary (trust and agency).
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Fund Balance
The amount of financial resources immediately available for use. Generally, this represents the excess of unrestricted current assets over current liabilities.
Gann Appropriation Limit
Article XIIIB of the State constitution was amended by Proposition 4 (Gann initiative) in 1979. Article XIIIB limits growth in the spending of tax proceeds to tax proceeds appropriated in the "base year" of 1978-79 times the product of the allowable annual percentage change in a cost-of-living factor and the allowable annual percentage change in a population change factor. The cost-of-living factor is the larger of the annual percentage change in the State per capita personal income or the annual percentage change in the local nonresidential assessed valuation due to new construction. The population change factor is the larger of the annual percentage change of the jurisdiction's population or the annual percentage population change of the county in which the jurisdiction is located.
GASB 34
A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, roads, sewers, etc. It also requires the presentation of a narrative statement of the government's financial performance, trends, and prospects for the future.
GASB 45
This is another Governmental Accounting Standards Board major pronouncement that each public entity to account for and to report other post-employment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service.
General Fund
The primary fund of the City used to account for all revenues and expenditures of the City not legally restricted as to use. Examples of departments financed by the General Fund include City Council, Police and Fire Departments.
General Obligation Bond
A type of bond that is backed by the full faith, credit, and taxing power of the City.
Generally Accepted Accounting Principles (GAAP)
Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. The primary authoritative body on the application of GAAP to state and local governments is the GASB.
Goal
Goals are general statements of desired results and serve as points of reference to guide actions, decisions, and resource allocation.
Government Finance Officers Association (GFOA)
The Government Finance Officers Association was founded in 1906. Its purpose is to advance transparency and excellence in government finance. The association represents public finance officials throughout the United States and Canada. GFOA issues the Distinguished Budget Presentation Award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device.
Governmental Accounting
The composite activity of analyzing, recording, summarizing, reporting, and interpreting the financial transactions of governments.
Governmental Accounting Standards Board (GASB)
The authoritative accounting and financial reporting standard-setting body for government entities.
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Governmental Fund
A fund type to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.
Grant
Contributions or gifts of cash or other assets from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is the Community Development Block Grant given by the Federal government.
Indirect Cost Allocation Plan
The City uses an indirect cost allocation plan to ensure that enterprises and certain special revenue-supported operations pay for themselves and are not subsidized by City taxpayers. General fund supported central services costs such as payroll, accounting, data processing, personnel, city management and facilities maintenance are allocated to those funds benefiting from these services based on statistical data reflecting use of these support services.
Infrastructure
Facilities on which the continuance and growth of a community depend on such as roads, water lines, sewers, public buildings, parks, and airports.
Interfund Transactions
These budgetary transactions consist of quasi-external transactions which would be treated as revenues and expenditures if they involved organizations external to the governmental unit, reimbursements of expenditures initially made in one fund which are attributable to another fund, and operating transfers where monies are appropriated from one fund to another fund to reimburse expenses which are of benefit to the first fund.
Internal Service Fund
Funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, on a cost-reimbursement basis.
Labor Group or Labor Union
A group of two or more employees who join together to advance common interests such as wages, benefits, schedules and other employment terms and conditions.
Liability
Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed, or refunded at some future date. Note: This term does not include encumbrances.
Line Item Detail
A budget that lists detailed expenditure categories (permanent salaries, utilities, travel, training, etc.) separately, along with the amount budgeted for each specified category.
Long-Term Debt
Debt with a maturity of more than one year after the date of issue.
Mission
A description of the basic purpose and responsibility of the division or department.
Modified Accrual Basis of Accounting
Basis of accounting whereby revenues are recognized in the accounting period in which they become available and measurable; expenditures are recognized in the accounting period in which the fund liability is incurred (if measurable), except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.
Municipal Code, City Code or the Code
A compilation of City Council approved ordinances currently in effect. The Code defines City policy in various categories. For example, civil service rules, traffic regulations, sanitation and health standards, building regulations, and planning and zoning regulations.
Objective
Statement describing a significant result or service level change to be accomplished during the next fiscal year.
It describes specific, verifiable, and measurable actions, steps, or processes undertaken in the service of a goal.
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Operating Budget
A financial, programmatic and organizational plan for furthering the goals of the City Council through the departments of the City, which does not include one-time capital improvement projects.
Ordinance
A formal legislative enactment by the City Council. It has the full force and effect of law within the City boundaries unless it is in conflict with any higher form of law such as a State statute or constitutional provision.
An ordinance has higher legal standing than a resolution.
Pay-As-You-Go Basis
A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing.
Performance Metric
Quantifiable indicators that measure program workload or progress in achieving program objectives.
Program
An activity or division within a department which furthers the objectives of the City Council by providing services or a product.
Proprietary Fund
Funds that focus on the determination of operating income, changes in net assets (cost recovery), financial position, and cash flows. There are two types of proprietary funds: Enterprise and Internal Service Funds.
Purchase Order
A document issued to authorize a vendor to deliver specified merchandise or render a specified service for a stated estimated price. Outstanding purchase orders are called encumbrances.
Re-appropriation
The amount of money that is budgeted for a project in a prior year but is not spent or encumbered and needs to be appropriated again in the current year in order to continue the program originally intended.
Reimbursements
Payments of amounts remitted on behalf of another party, department, or fund. They are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed (see Interfund Transactions).
Reserve
An account used to set aside a portion of the fund balance as legally segregated for a specific use.
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Resolution
A special order of the City Council which requires less legal formality than an ordinance in terms of public notice and the number of public readings prior to approval. A resolution has lower legal standing than an ordinance. The adopted City budget is approved by resolution and requires a majority vote of the Council members present at budget adoption time. During the fiscal year other budget modifications made by the City Council require a majority plus one vote.
Return on Investment
Requests for additional resources previously classified as enhancements are now categorized as Return on Investments. Requests will only be considered when the investment increases revenue, decreases operating expenses, or creates operating efficiency.
Revenue
Sources of income used to finance City governmental services.
Salaries and Wages
A budget category which generally accounts for full-time, part-time, and temporary employees’ salaries, overtime costs and fringe benefits for a particular division or program.
Self-Insurance
A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or the activity of the agency.
Service Benchmark
A short list of indicators (outputs, outcomes, trends over time) for the departmental or interdepartmental efforts important to Council and the community to communicate the City’s strategic and day-to-day work.
Special Revenue Funds
Revenues that can be spent only for specific purposes stipulated by the Constitution, external resource providers, or through enabling legislation
Supplies and Expenses
A budget category which accounts for all non-personnel expenses. Examples include office supplies, utility costs, legal advertising, equipment maintenance, small tool purchases, building/structure maintenance and contractual services.
Taxes
Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. This term does not include charges for services rendered only to those paying such charges.
For example refuse collection.
Tourism Business Improvement District (TBID)
An assessment established by the hoteliers in the City of Gilroy in 2013, used to administer marketing programs to promote the City of Gilroy as a tourism destination and to fund projects, programs, and activities that benefit lodging businesses within the district. The assessment levied on lodging businesses within the city is a 2% hotel tax on room rentals. The funding and operations of the TBID are managed by Visit Gilroy. The City is entitled to retain a small portion of the assessment collected to defer the administrative costs incurred, as authorized by the TBID.
Transient Occupancy Tax (TOT)
A tax on hotel/motel stays of 30 days or less. The rate in the City of Gilroy is currently 9%.
Trust and Agency Funds
Types of fiduciary funds which account for assets held by the City in a trustee capacity. The budget does not appropriate fiduciary funds.
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Undesignated Fund Balance
Monies in the various government funds as of the end of the fiscal year that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash.
Unreserved Fund Balance (Surplus Revenue Account)
The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash)
Valuation (100 Percent)
The legal requirement that the assessed value on property must reflect its market, or full and fair cash value.
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