Gilroy City Council
April 6, 2026

108

The City Administrator submits to the City Council a proposed budget for all funds. Council then proceeds to make any changes to the proposed budget it deems necessary. Before adopting the proposed budget, Council holds a public hearing for any interested party desiring to be heard. Notice must be given 10 days prior to the hearing and must be published in the City’s official newspaper. After the conclusion of the public hearing, Council may further make revisions to the proposed budget. Thereafter, Council adopts the budget with revisions, if any.

Legally adopted budgets for all governmental funds are established on a basis consistent with accounting principles generally accepted in the United States of America. City Council approval is required for all revisions to the adopted budget that require additional appropriations or new funding. City Administrator approval is required for all transfers within the adopted budget.

Operational appropriations lapse at fiscal year-end unless City Council takes formal action to carry forward appropriations into the following fiscal year.

The level on which expenditures may not legally exceed appropriations is the fund level.

City of Gilroy
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
Budget and Budgetary Accounting
109

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes:

Property taxes 20,848,125 $ 20,848,125 $ 20,967,513 $ 119,388 $ Sales tax 22,427,000 21,827,000 20,478,194 (1,348,806)
Transient occupancy tax 2,016,000 2,016,000 1,509,597 (506,403) Utility taxes 6,731,915 6,731,915 7,014,280 282,365
Franchise taxes 2,374,463 2,459,463 2,354,848 (104,615) Document transfer tax 455,000 375,000 403,750 28,750
Motor vehicle in lieu tax 64,700 64,700 96,232 31,532
Total taxes 54,322,203 54,917,203 52,824,414 (1,497,789) Intergovernmental:

Grants 475,195 1,087,759 1,421,484 333,725
Total intergovernmental
Charges for Services:

Administrative charges 4,163,525 4,233,525 4,233,451 (74) Plan checks and inspections 2,290,199 2,290,199 2,330,943 40,744 Special planning services 730,000 730,000 762,951 32,951 Special police services 25,000 25,000 41,580 16,580
Special fire services 200,000 200,000 236,985 36,985
Community recreation 823,895 823,895 803,893 (20,002)
Total charges for services 8,302,619 8,232,619 8,409,803 107,184 Licenses and Permits:

Business licenses 739,000 839,000 800,040 (38,960)
Hazardous material permits 270,000 270,000 311,254 41,254 Building permits 2,010,000 2,010,000 1,741,168 (268,832) Other licenses and permits 60,500 60,500 118,570 58,070 Total licenses and permits 3,179,500 3,079,500 2,971,032 (208,468) Fines:

Vehicle fines 72,631 72,631 38,895 (33,736)
Parking fines 20,916 20,916 15,067 (5,849)
Abandoned vehicle 130,000 130,000 115,463 (14,537)
Total fines 223,547 223,547 169,425 (54,122)
Investment income 561,550 961,550 2,074,383 1,112,833
Miscellaneous:

Police and fire 23,834 23,834 88,517 64,683
Recreation 2,500 2,500 2,473 (27)
Other 853,768 853,768 1,701,715 847,947
Total miscellaneous 880,102 880,102 1,792,705 912,603
TOTAL REVENUES 68,957,280 68,369,716 69,663,246 705,966 (Continued)
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
110

Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:

General Government:

City council 241,450 241,450 299,423 (57,973)
City administration 3,100,542 3,169,322 2,654,964 514,358 Emergency services 459,655 505,855 468,068 37,787
Finance 1,227,044 1,267,038 1,118,125 148,913
General administration 3,307,929 3,532,521 3,196,305 336,216 City attorney 530,000 530,000 981,405 (451,405)
Human resources 1,794,535 1,826,035 1,709,075 116,960
Total general government 11,072,221 10,661,155 10,427,365 644,856 Public Safety:

Police administration 6,840,394 7,081,179 7,444,392 (363,213) Police patrol operations 18,572,644 18,567,092 18,443,289 123,803 Police investigation 2,334,946 2,334,946 2,192,529 142,417 Communications 3,119,069 3,119,069 2,364,241 754,828
Police records 1,366,764 1,366,764 979,328 387,436
Fire administration 2,515,510 2,676,889 2,620,692 56,197 Fire operations 12,113,323 12,139,481 12,720,863 (581,382) Total public safety 47,285,420 46,862,650 46,765,334 520,086 Recreation services:

Community recreation 2,202,215 2,203,145 1,828,765 374,380 Total recreation services 2,203,145 2,202,215 1,828,765 374,380 Community development:

Administration 1,352,597 1,382,807 1,299,024 83,783
Housing and Community Services 385,455 398,927 420,174 (21,247) Planning 1,460,164 2,292,097 1,504,105 787,992
Buildings 2,022,350 2,024,141 2,012,381 11,760
Chemical containment hazardous materials 457,139 457,139 476,094 (18,955) Total community development 6,555,111 5,677,705 5,711,778 843,333 Public works:

Public works administration 12,069 12,069 12,069 -
Street maintenance/forestry 1,482,632 1,515,679 1,411,385 104,294 Environmental 293,708 294,640 312,968 (18,328)
Landscape maintenance 2,891,996 3,206,738 2,804,861 401,877 Engineering 1,234,789 1,426,424 1,200,295 226,129
Total public works 5,915,194 6,455,550 5,741,578 713,972 Capital outlay 2,457,000 3,348,462 1,808,585 1,539,877
Total capital outlay 3,348,462 2,457,000 1,808,585 1,539,877 Debt services
Principal payment - - 11,246 (11,246)
Interest and fiscal charges - - 1 (1)
Total debt services - - 11,247 (11,247)
TOTAL EXPENDITURES 76,919,909 73,775,919 72,294,652 4,625,257 Excess (deficiency) of revenues
over expenditures (7,962,629) (5,406,203) (2,631,406) 5,331,223 OTHER FINANCING SOURCES (USES):

Issuance of inew subscription - - 24,721 24,721
Transfers in 3,638,495 3,627,241 1,186,873 (2,440,368)
Transfers out (1,693,061) (2,499,998) (249,999) 2,249,999 Total other financing sources (uses) 1,127,243 1,945,434 961,595 (165,648) NET CHANGE IN FUND BALANCE $ (3,460,769) $ (6,835,386) 5,165,575 (1,669,811) $ FUND BALANCE:

Beginning of Year 42,681,483
End of Year $ 41,011,672
(Concluded)
For the Year Ended June 30, 2025
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund (Continued) 111

112

SUPPLEMENTARY INFORMATION
113

114

Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Developer impact fee 10,934,196 $ 10,934,196 $ 1,578,836 $ (9,355,360) $ Investment income 63,622 63,622 93,415 29,793
Miscellaneous - - 207,265 207,265
Total revenues 10,997,818 10,997,818 1,879,516 (9,118,302) EXPENDITURES:

Current:

Public works 26,762 31,600 78,532 (46,932)
Capital outlay 13,441,107 14,429,665 857,645 13,572,020 Debt service:

Interest and fiscal charges - - 29,179 (29,179)
Total expenditures 14,461,265 13,467,869 965,356 13,495,909 Excess (deficiency) of revenues
over expenditures (3,463,447) (2,470,051) 914,160 4,377,607 OTHER FINANCIN SOURCES (USES):

Issuance of debt 12,500,000 12,500,000 - (12,500,000)
Transfers in 81,526 81,526 81,526 -
Transfers out (3,758,264) (3,758,264) (2,978,011) 780,253 Total other financing sources (uses) 8,823,262 8,823,262 (2,896,485) (11,719,747) NET CHANGE IN FUND BALANCE $ 5,359,815 6,353,211 $ (1,982,325) (7,342,140) $ FUND BALANCE (DEFICIT):

Beginning of Year (318,628)
End of Year $ (2,300,953)
City of Gilroy
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Public Facilities Impact Capital Projects Fund
For the Year Ended June 30, 2025
115

Sidewalk
Repair Parking
General Fund Reserve Management Golf course
ASSETS
Cash and investments $ 1,873,501 28,178,689 $ - $ 55,484 $ Receivables:

Accounts - 373,326 - 6,844
Due from other governments - 4,662,091 - -
Interest - 1,585,510 - -
leases - 5,310,704 -
Due from other funds - 1,085,359 - -
Prepaid items - 86,832 - -
Restricted assets:

Cash and investments with fiscal agents 5,669,222 - - - Total assets $ 1,873,501 46,951,733 $ - $ 62,328 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - 979,710 $ - $ 4,201 $
Accrued liabilities - 3,664,462 - -
Retention payable - 11,631 - -
Deposits payable - - - -
Unearned revenue - - - -
Total liabilities - 4,655,803 - 4,201
Deferred inflows of resources:
leases related 5,165,512 - - -
Unavailable revenues 71,840 - - -
Total deferred inflows of resources - 5,237,352 - -
Fund balances:

Nonspendable - 86,832 - -
Restricted - 5,669,222 - -
Committed 7,291 7,039,566 - -
Unassigned (deficit) 1,866,210 24,262,958 - 58,127
Total fund balances (deficit) 1,873,501 37,058,578 - 58,127 Total liabilities, deferred inflows of
resources, and fund balances $ 1,873,501 41,714,381 $ - $ 62,328 $ (Continued)
Combining Balance Sheet
City of Gilroy
June 30, 2025
General Fund
116

Recreation Deposit Revolving Trust Special Employee Wellness ASSETS
Cash and investments $ 4,614,740 2,269,457 $ 235,872 $ 2,312 $ Receivables:

Accounts 95,936 - - -
Due from other governments - - - -
Interest 207 - - -
leases - - - -
Due from other funds - - - -
Prepaid items 25,000 - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 4,710,676 2,294,664 $ 235,872 $ 2,312 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 95,539 52,010 $ - $ - $
Accrued liabilities 103,496 146,507 - -
Retention payable - - - -
Deposits payable 4,237,729 - 234,706 1,872
Unearned revenue 145,885 204,314 - -
Total liabilities 4,684,089 301,391 234,706 1,872
Deferred inflows of resources:
leases related - - - -
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:

Nonspendable - 25,000 - -
Restricted - - - -
Committed - 182,877 - (269)
Unassigned (deficit) 26,587 1,785,397 1,166 709
Total fund balances (deficit) 26,587 1,993,273 1,166 440 Total liabilities, deferred inflows of
resources, and fund balances $ 4,710,676 2,294,664 $ 235,872 $ 2,312 $ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
General Fund
June 30, 2025
117

Total
General
Fund
ASSETS
Cash and investments $ 37,230,055
Receivables:

Accounts 476,106
Due from other governments 4,662,091
Interest 1,585,717
leases 5,310,704
Due from other funds 1,085,359
Prepaid items 111,832
Restricted assets:

Cash and investments with fiscal agents 5,669,222
Total assets $ 56,131,086

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 1,131,460
Accrued liabilities 3,914,465
Retention payable 11,631
Deposits payable 4,474,307
Unearned revenue 350,199
Total liabilities 9,882,062
Deferred inflows of resources:
leases related 5,165,512
Unavailable revenues 71,840
Total deferred inflows of resources 5,237,352
Fund balances:

Nonspendable 111,832
Restricted 5,669,222
Committed 7,229,465
Unassigned (deficit) 28,001,153
Total fund balances (deficit) 41,011,672
Total liabilities, deferred inflows of
resources, and fund balances $ 56,131,086
(Concluded)
City of Gilroy
Combining Balance Sheet (Continued)
General Fund
June 30, 2025
118

Sidewalk
Repair Parking
General Fund Reserve Management Golf course
Revenues:

Taxes $ - 52,824,414 $ - $ - $
Intergovernmental - 1,421,384 - -
Charges for services 7,606,462 - - 134,362
Licenses and permits 2,971,032 - - -
Fines and forfeitures 169,425 - - -
Investment income 78,695 1,960,880 - 917
Miscellaneous 1,794,938 - - -
Total revenues 78,695 68,748,535 - 135,279
Expenditures:

Current:

General government 10,430,055 - - -
Public safety 46,765,334 - - -
Recreation services - - - -
Community development 5,711,778 - - -
Public works 5,729,509 12,069 - -
Capital outlay 1,747,741 60,844 - -
Debt service:

Principal retirement 11,246 - - -
Interest and fiscal charges 1 - - -
Total expenditures 72,913 70,395,664 - -
Excess (deficiency) of revenues over expenditures 5,782 (1,647,129) - 135,279 Other financing sources (uses):

Issuance of new subscription 24,721 - - -
Transfers in 1,190,333 250,000 241,154 -
Transfers out (2,241,153) - - -
Total other financing sources (uses) 250,000 (1,026,099) 241,154 - NET CHANGE IN FUND BALANCES 255,782 (2,673,228) 241,154 135,279 Fund balances (deficit):

Beginning of year 39,731,806 1,617,719 (241,154) (77,152) End of year $ 1,873,501 37,058,578 $ - $ 58,127 $
(Continued)
June 30, 2025
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund
119

Recreation Deposit Revolving Trust Special Employee Wellness Revenues:

Taxes $ - - $ - $ - $
Intergovernmental - 100 - -
Charges for services 668,979 - - -
Licenses and permits - - - -
Fines and forfeitures - - - -
Investment income - 23,464 10,292 135
Miscellaneous 5,806 - (8,039) -
Total revenues - 698,349 2,253 135
Expenditures:

Current:

General government - - - (2,690)
Public safety - - - -
Recreation services 1,828,765 - - -
Community development - - - -
Public works - - - -
Capital outlay - - - -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - 1,828,765 - (2,690)
Excess (deficiency) of revenues over expenditures - (1,130,416) 2,253 2,825 Other financing sources (uses):

Issuance of new subscription - - - -
Transfers in 1,500,000 - - 305
Transfers out (2,663) (797) (305) -
Total other financing sources (uses) (797) 1,497,337 (305) 305 NET CHANGE IN FUND BALANCES (797) 366,921 1,948 3,130
Fund balances (deficit):

Beginning of year 1,626,352 27,384 (782) (2,690)
End of year $ 26,587 1,993,273 $ 1,166 $ 440 $
(Continued)
City of Gilroy
June 30, 2025
General Fund
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 120

Total
General
Eliminations (1) Fund
Revenues:

Taxes $ 52,824,414 - $
Intergovernmental - 1,421,484
Charges for services - 8,409,803
Licenses and permits - 2,971,032
Fines and forfeitures - 169,425
Investment income - 2,074,383
Miscellaneous - 1,792,705
Total revenues - 69,663,246
Expenditures:

Current:

General government - 10,427,365
Public safety - 46,765,334
Recreation services - 1,828,765
Community development - 5,711,778
Public works - 5,741,578
Capital outlay - 1,808,585
Debt service: -
Principal retirement - 11,246
Interest and fiscal charges - 1
Total expenditures - 72,294,652
Excess (deficiency) of revenues over expenditures (2,631,406) - Other financing sources (uses):

Issuance of new subscription - 24,721
Transfers in (1,994,919) 1,186,873
Transfers out 1,994,919 (249,999)
Total other financing sources (uses) - 961,595
NET CHANGE IN FUND BALANCES (1,669,811) -
Fund balances (deficit):

Beginning of year 42,681,483 -
End of year $ 41,011,672 - $
(Concluded)
June 30, 2025
General Fund
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Gilroy
121

122

Traffic Impact Fund - This fund is used to finance the construction of streets, bridges, interchanges, and traffic signals within the City as described in the City of Gilroy’s Circulation Element. Improvements and expansions of the City’s traffic circulation system are needed to accommodate development of new residential, commercial and industrial uses with the City. The traffic impact fee is used to expand system capacity to accommodate new development.

Storm Drains Fund - This fund is used finance the construction of drainage collection and distribution systems within the City as described in the City of Gilroy’s Storm Drain Master Plan. Improvements and expansions of the City’s storm drain system are needed to accommodate development of new residential, commercial and industrial uses within the City. The storm drain development fee is used to expand system capacity to accommodate new development.

Prop 172 Sales Tax Fund - This fund is used to account for funds received from state sales tax used for public safety activities.

Opioid Settlement Fund - State led participation in the National Opioid Settlement with Teva, Allergan, CVS, Walgreens, and Walmart.

Money can be used for opioid abatement. 85% of the monies received from the settlement will be distributed to cities and counties.

Los Arroyos Fund - This fund is used to account for funds received from South County Housing to support future homebuyers in the Los Arroyos neighborhood.

CalHome Funds - This fund is used to account funds received from South County Housing to support low-income homebuyers.

CAPITAL PROJECTS FUNDS
These funds account for resources intended to be used primarily for major capital facilities (other than those financed by revenues of proprietary funds).

Capital Projects Fund - This fund is used to account for major capital projects other than those financed by revenues of proprietary funds, including projects that are partially funded from other sources such as grants or fuel tax.

Community Development Block Grant Fund - This fund is used to account for Housing and Urban Development grants used to operate the Community Development Grant Program.

Housing Trust Fund - This fund is used to support affordable housing through revenue from below market rate home resales, refinances, downpayment assistance loan repayments, and multi-family rehabilitation loan programs. This fund has funded down payment assistance, rehabilitation of multi-family properties, and a shelter for the chronically homeless. Loans are offered at belowmarket rates, often with deferral periods, and interest income is reinvested into the fund to sustain ongoing affordable housing Community Facilities District Fund - This fund is used to account for funds from special landscape assessment districts used to maintain improvements of a public nature that provide benefits to the property owner.

Vehicle License Fee Fund - This fund is used to account for vehicle license fees received from Santa Clara County to be used for pavement maintenance, operations, signals, signs, and markings.

Measure B Fund - This fund is used to account for street and road maintenance and repair projects.

Building Equity and Growth in Neighborhoods Fund - This fund is used to account for Building Equity and Growth in Neighborhoods program grants used to operate the BEGIN Program.

NONMAJOR GOVERNMENTAL FUNDS
These funds account for revenue sources that are restricted for specific purposes (other than those resources to be expended solely for the construction of major capital facilities).

Gas Tax Fund - This fund is used to account for the City’s share of state gasoline tax required to be used for construction and maintenance of the City’s road network system.

Pavement Management Fund - This fund is used to account for County Measure A and other transportation grants used to repair and rebuild various roads.

Public Safety Grants Fund - This fund is used to account for state and federal grants used for public safety activities.

SPECIAL REVENUE FUNDS
123

PERMANENT FUNDS
Museum Trust Fund - This fund was established by the sale of a vase by the Gilroy Museum. The purpose in selling the vase was to create an endowment for the museum. This would generate interest income for the museum.

Henry Miller Fund - This fund is used to account for a donation from Henry Miller. The annual interest earned on the original donation of $15,000 is the amount donated to the poor of Gilroy each Christmas season.

Lease Revenue Bonds Series 2020A Fund - This fund is used to account for the payments of debt service of principal and interest for the PFFA Lease Revenue 2020A Bonds.

Street Trees Development Fund - This fund is used to account for the collection of a front footage fee to plant trees in new developments.

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

Gilroy Community Library Fund - This fund is used to account for payments of the indebtedness of the refinanced 2019 series A and B General Obligation Bonds for the Gilroy Community Library. 2022A Refunding Bond Fund - This fund is used to account for the payments of debt service of principal and interest for the 2022A Lease Revenue Refunding Bonds.

Gilroy Community Library Fund - This fund is used to account for the acquisition, construction and improvement of facilities to be used as a public library within the City. Funding was provided by issuance of general obligation bonds. Interest earned on specific LAIF account will be recorded directly to the Library fund.

DEBT SERVICE FUNDS
These funds account for resources accumulated for the payment of principal and interest (other than that for proprietary fund debt).

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

CAPITAL PROJECTS FUNDS (CONTINUED)
Stormwater Management Fund - established to set aside funds to implement State required trash capture device provisions in the Stormwater system.

Downtown Beautification Fund - The purpose of this fund is to finance the design and construction improvements along Gourmet Alley and Railroad Alley. These improvements are funded by a $3.9M grant from Caltrans' Clean California Local Grant Program. Interest is allocated.
124

Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
ASSETS
Cash and investments $ 253,519 5,389,290 $ 908,107 $ 32,474 $ Receivables:

Accounts 734 - 535,750 -
Due from other governments - 284,742 128,713 85,135
Interest - - - -
Loans - - - -
Advances to other funds - - - -
Land held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 254,253 5,674,032 $ 1,572,570 $ 117,609 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 27,567 302,824 $ 361,237 $ 11,667 $
Accrued liabilities - 27,444 21,496 -
Retention payable 5,604 - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - 204,579 -
Total liabilities 33,171 330,268 587,312 11,667
Deferred inflows of resources:

Unavailable revenues - - 177,839 -
Total deferred inflows of resources - - 177,839 -
Fund balances:

Nonspendable - - - -
Restricted 221,082 5,343,764 807,419 105,942
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 221,082 5,343,764 807,419 105,942 Total liabilities, deferred inflows of
resources, and fund balances $ 254,253 5,674,032 $ 1,394,731 $ 117,609 $ (Continued)
City of Gilroy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
125

Community Housing Community
Development Trust Facilities
Block Grant Fund District Measure B
ASSETS
Cash and investments $ 578,902 - $ 2,093,606 $ 2,472,568 $ Receivables:

Accounts 1,379 - - -
Due from other governments - 89,640 2,879 -
Interest - - - -
Loans 1,180,640 574,992 - -
Advances to other funds - - - -
Land held for resale 1,250,221 - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 3,011,142 664,632 $ 2,096,485 $ 2,472,568 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 54,352 81,127 $ 134,189 $ - $
Accrued liabilities - - - -
Retention payable - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - 46,788 - -
Total liabilities 54,352 127,915 134,189 -
Deferred inflows of resources:

Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:

Nonspendable - - - -
Restricted 2,956,790 536,717 1,962,296 2,472,568
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 2,956,790 536,717 1,962,296 2,472,568 Total liabilities, deferred inflows of
resources, and fund balances $ 3,011,142 664,632 $ 2,096,485 $ 2,472,568 $ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
126

Vehicle
License Los Arroyos CalHome Opioid Settlement
Fee Fund Funds Fund
ASSETS
Cash and investments $ 1,240,735 2,267,056 $ 539,693 $ 185,283 $ Receivables:

Accounts - - - 18,432
Due from other governments - - - -
Interest - - 192,169 -
Loans - - 249,288 -
Advances to other funds - - - -
Land held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 1,240,735 2,267,056 $ 981,150 $ 203,715 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - 1,591 $ - $ - $
Accrued liabilities - - - -
Retention payable - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities - 1,591 - -
Deferred inflows of resources:

Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:

Nonspendable - - - -
Restricted 1,240,735 2,265,465 981,150 203,715
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 1,240,735 2,265,465 981,150 203,715 Total liabilities, deferred inflows of
resources, and fund balances $ 1,240,735 2,267,056 $ 981,150 $ 203,715 $ (Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
127

Special
Revenue Funds
Capital Traffic Storm
BEGIN Projects Impact Drains
ASSETS
Cash and investments $ 10,138,730 556,088 $ 18,495,713 $ 1,745,645 $ Receivables:

Accounts - - - -
Due from other governments - - - -
Interest - 9,635 - -
Loans - 1,025,660 - -
Advances to other funds - - - 635,161
Land held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 10,138,730 1,591,383 $ 18,495,713 $ 2,380,806 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 15,375 - $ 89,855 $ 801 $
Accrued liabilities - - - -
Retention payable - - - -
Deposits payable - - - -
Unearned revenue 350,000 - - -
Due to other funds - - - -
Total liabilities 365,375 - 89,855 801
Deferred inflows of resources:

Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:

Nonspendable - - - -
Restricted 3,589,243 1,591,383 18,405,858 2,380,005
Assigned 6,184,112 - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 9,773,355 1,591,383 18,405,858 2,380,005 Total liabilities, deferred inflows of
resources, and fund balances $ 10,138,730 1,591,383 $ 18,495,713 $ 2,380,806 $ (Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
128

Street Gilroy
Trees Community Downtown Stormwater
Development Library Beautification Management
ASSETS
Cash and investments $ 5,839,180 187,026 $ - $ 855,570 $ Receivables:

Accounts - - - -
Due from other governments - - 856,062 -
Interest 63,567 - - -
Loans - - - -
Advances to other funds - - - -
Land held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total assets $ 5,902,747 187,026 $ 856,062 $ 855,570 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 746 - $ - $ - $
Accrued liabilities - - - -
Retention payable - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - 828,971 -
Total liabilities 746 - 828,971 -
Deferred inflows of resources:

Unavailable revenues - - 856,062 -
Total deferred inflows of resources - - 856,062 -
Fund balances:

Nonspendable - - - -
Restricted 5,902,001 187,026 - -
Assigned - - - 855,570
Unassigned (deficit) - - (828,971) -
Total fund balances (deficit) 5,902,001 187,026 (828,971) 855,570 Total liabilities, deferred inflows of
resources, and fund balances $ 5,902,747 187,026 $ 856,062 $ 855,570 $ (Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
129

2022A Gilroy CA Energy Lease Revenue
Refunding Community Commission Bond Series
Bond Library Loan 2020A
ASSETS
Cash and investments $ 1,335,452 190,900 $ 23,571 $ 716,311 $ Receivables:

Accounts 6,791 - - -
Due from other governments - - - -
Interest - - - -
Loans - - - -
Advances to other funds - - - -
Land held for resale - - - -
Restricted assets:

Cash and investments with fiscal agents - 1,297 - 227
Total assets $ 1,342,243 192,197 $ 23,571 $ 716,538 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ 2,194 - $ - $ - $
Accrued liabilities - - - -
Retention payable - - - -
Deposits payable - - - -
Unearned revenue - - - -
Due to other funds - - - -
Total liabilities 2,194 - - -
Deferred inflows of resources:

Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:

Nonspendable - - - -
Restricted 1,340,049 192,197 23,571 716,538
Assigned - - - -
Unassigned (deficit) - - - -
Total fund balances (deficit) 1,340,049 192,197 23,571 716,538 Total liabilities, deferred inflows of
resources, and fund balances $ 1,342,243 192,197 $ 23,571 $ 716,538 $ (Continued)
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Debt Service Funds
130

Total Nonmajor
Henry Museum Governmental
Miller Trust Funds
ASSETS
Cash and investments $ 45,818 15,712 $ 56,106,949 $
Receivables:

Accounts - - 563,086
Due from other governments - - 1,447,171
Interest - - 265,371
Loans - - 3,030,580
Advances to other funds - - 635,161
Land held for resale - - 1,250,221
Restricted assets:

Cash and investments with fiscal agents - - 1,524
Total assets $ 45,818 15,712 $ 63,300,063 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable $ - - $ 1,083,525 $
Accrued liabilities - - 48,940
Retention payable - - 5,604
Deposits payable 35,299 - 35,299
Unearned revenue - - 350,000
Due to other funds - - 1,080,338
Total liabilities 35,299 - 2,603,706
Deferred inflows of resources:

Unavailable revenues - - 1,033,901
Total deferred inflows of resources - - 1,033,901
Fund balances:

Nonspendable 35,000 15,000 50,000
Restricted - 712 53,426,226
Assigned - - 7,039,682
Unassigned (deficit) (24,481) - (853,452)
Total fund balances (deficit) 10,519 15,712 59,662,456
Total liabilities, deferred inflows of
resources, and fund balances $ 45,818 15,712 $ 63,300,063 $ (Concluded)
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Permanent Funds
City of Gilroy
131

Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
Revenues:

Taxes $ - - $ - $ 330,632 $
Intergovernmental 248,325 3,360,729 969,144 -
Developer impact fees - - - -
Investment income 9,599 208,526 50,975 259
Miscellaneous - - 11,824 -
Total revenues 257,924 3,569,255 1,031,943 330,891
Expenditures:

Current:

General government - - - -
Public safety - - 1,072,816 404,223
Recreation services - - - -
Community development - - - -
Public works 1,109,529 1,539 - -
Capital outlay 460,122 267,567 19,822 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 269,106 1,569,651 1,092,638 404,223
Excess (deficiency) of revenues
over expenditures (11,182) 1,999,604 (60,695) (73,332)
Other financing sources (uses):

Issuance of debt - - - -
Transfers in - - - -
Transfers out (99,863) (2,721) (100,000) -
Total other financing sources (uses) (2,721) (99,863) (100,000) - Net change in fund balances (13,903) 1,899,741 (160,695) (73,332) Fund balances (deficit):

Beginning of year, as previously reported 3,444,023 234,985 968,114 179,274 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 3,444,023 234,985 968,114 179,274 End of year $ 221,082 5,343,764 $ 807,419 $ 105,942 $
(Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
132

Community Housing Community
Development Trust Facilities
Block Grant Fund District Measure B
Revenues:

Taxes $ - - $ 550,893 $ - $
Intergovernmental - 488,800 - 312,767
Developer impact fees - - - -
Investment income 53,480 - 84,329 113,911
Miscellaneous - 19,729 - -
Total revenues 73,209 488,800 635,222 426,678
Expenditures:

Current:

General government - - - -
Public safety - - - -
Recreation services - - - -
Community development 312,278 254,968 - -
Public works - - 544,929 208,482
Capital outlay 172,003 - - 117,065
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 254,968 484,281 544,929 325,547
Excess (deficiency) of revenues
over expenditures (181,759) 4,519 90,293 101,131
Other financing sources (uses):

Issuance of debt - 520,354 - -
Transfers in - - - -
Transfers out (58,049) (562,853) - -
Total other financing sources (uses) (42,499) (58,049) - - Net change in fund balances (224,258) (53,530) 90,293 101,131 Fund balances (deficit):

Beginning of year, as previously reported 2,095,343 3,181,048 1,872,003 2,371,437 Change with financial reporting entity
(governmental and enterprise funds classification) (1,505,096) - - - Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 590,247 3,181,048 1,872,003 2,371,437 End of year $ 2,956,790 536,717 $ 1,962,296 $ 2,472,568 $ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
133

Vehicle
License Los Arroyos CalHome Opioid Settlement
Fee Fund Funds Fund
Revenues:

Taxes $ - - $ - $ - $
Intergovernmental 143,000 402,669 - -
Developer impact fees - - - -
Investment income 43,435 90,305 19,397 7,640
Miscellaneous - - - 129,696
Total revenues 186,435 492,974 19,397 137,336
Expenditures:

Current:

General government - - - -
Public safety - - - -
Recreation services - - - -
Community development - 86,400 - -
Public works 3,325 - - -
Capital outlay 79,178 - - -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 86,400 82,503 - -
Excess (deficiency) of revenues
over expenditures 100,035 410,471 19,397 137,336
Other financing sources (uses):

Issuance of debt - - - -
Transfers in - 276,213 488,103 -
Transfers out - (5,679) (388,615) -
Total other financing sources (uses) 270,534 - 99,488 - Net change in fund balances 370,569 410,471 118,885 137,336 Fund balances (deficit):

Beginning of year, as previously reported 1,854,994 870,166 420,808 66,379 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - Restatement (Note 18) - - 441,457 -
Beginning of year, as restated (Note 18) 1,854,994 870,166 862,265 66,379 End of year $ 1,240,735 2,265,465 $ 981,150 $ 203,715 $ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue Funds
134

Special
Revenue Funds
Capital Traffic Storm
BEGIN Projects Impact Drains
Revenues:

Taxes $ - - $ - $ - $
Intergovernmental 133,384 - - -
Developer impact fees - - 1,988,918 31,196
Investment income 467,090 21,655 849,406 74,401
Miscellaneous - 2,542,906 - -
Total revenues 3,143,380 21,655 2,838,324 105,597
Expenditures:

Current:

General government - - - -
Public safety - - - -
Recreation services - - - -
Community development - - - -
Public works - 257 127,689 2,587
Capital outlay - 185,703 884,089 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 185,960 - 1,011,778 2,587
Excess (deficiency) of revenues
over expenditures 2,957,420 21,655 1,826,546 103,010
Other financing sources (uses):

Issuance of debt - - - -
Transfers in 121,250 1,046,337 97,538 12,268
Transfers out (56,618) - (1,046,337) -
Total other financing sources (uses) 1,046,337 64,632 (948,799) 12,268 Net change in fund balances 4,003,757 86,287 877,747 115,278 Fund balances (deficit):

Beginning of year, as previously reported - 5,769,598 17,528,111 2,264,727 Change with financial reporting entity
(governmental and enterprise funds classification) 1,505,096 - - - Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 1,505,096 5,769,598 17,528,111 2,264,727 End of year $ 9,773,355 1,591,383 $ 18,405,858 $ 2,380,005 $ (Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Capital Projects Funds
135

Street Gilroy
Trees Community Downtown Stormwater
Development Library Beautification Management
Revenues:

Taxes $ - - $ - $ - $
Intergovernmental - - 2,233,813 -
Developer impact fees - - - -
Investment income 286,643 8,245 - 37,698
Miscellaneous - - - -
Total revenues 286,643 8,245 2,233,813 37,698
Expenditures:

Current:

General government - - - -
Public safety - - - -
Recreation services - - - -
Community development - - - -
Public works 248 390 - -
Capital outlay - - 2,668,467 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 390 248 2,668,467 -
Excess (deficiency) of revenues
over expenditures 286,253 7,997 (434,654) 37,698
Other financing sources (uses):

Issuance of debt - - - -
Transfers in 55 - - -
Transfers out - - - -
Total other financing sources (uses) - 55 - -
Net change in fund balances 286,253 8,052 (434,654) 37,698 Fund balances (deficit):

Beginning of year, as previously reported 178,974 5,615,748 (394,317) 817,872 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 178,974 5,615,748 (394,317) 817,872 End of year $ 5,902,001 187,026 $ (828,971) $ 855,570 $ (Continued)
For the Year Ended June 30, 2025
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
136

2022A Gilroy CA Energy Lease Revenue
Refunding Community Commission Bond Series
Bond Library Loan 2020A
Revenues:

Taxes $ 1,699,940 - $ - $ - $
Intergovernmental - - - -
Developer impact fees - - - -
Investment income 41,917 6,472 1,984 24,122
Miscellaneous - - - -
Total revenues 1,741,857 6,472 1,984 24,122
Expenditures:

Current:

General government 4,702 9,884 - 3,419
Public safety - - - -
Recreation services - - - -
Community development - - - -
Public works - - 512 -
Capital outlay - - - -
Debt service:

Principal retirement 1,140,757 1,124,634 95,188 840,000 Interest and fiscal charges 474,128 711,969 4,674 513,250 Total expenditures 1,846,487 1,619,587 100,374 1,356,669 Excess (deficiency) of revenues
over expenditures (104,630) (1,613,115) (98,390) (1,332,547) Other financing sources (uses):

Issuance of debt - - - -
Transfers in 1,614,885 - 99,863 1,353,250
Transfers out - - - -
Total other financing sources (uses) 1,614,885 99,863 - 1,353,250 Net change in fund balances (104,630) 1,770 1,473 20,703 Fund balances (deficit):

Beginning of year, as previously reported 190,427 1,444,679 22,098 695,835 Change with financial reporting entity
(governmental and enterprise funds classification) - - - - Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 190,427 1,444,679 22,098 695,835 End of year $ 1,340,049 192,197 $ 23,571 $ 716,538 $
(Continued)
Debt Service Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
137

Henry Museum Sewer Water
Miller Trust Development Development
Revenues:

Taxes $ - - $
Intergovernmental - -
Developer impact fees - -
Investment income 712 2,104
Miscellaneous - -
Total revenues 2,104 712
Expenditures:

Current:

General government 1,039 -
Public safety - -
Recreation services - 3,124
Community development - -
Public works - -
Capital outlay - -
Debt service:

Principal retirement - -
Interest and fiscal charges - -
Total expenditures 3,124 1,039
Excess (deficiency) of revenues
over expenditures (1,020) (327)
Other financing sources (uses):

Issuance of debt - -
Transfers in - -
Transfers out - -
Total other financing sources (uses) - -
Net change in fund balances (1,020) (327)
Fund balances (deficit):

Beginning of year, as previously reported 16,039 11,539 17,322,623 7,157,919 Change with financial reporting entity
(governmental and enterprise funds classification) - - (17,322,623) (7,157,919) Restatement (Note 18) - - - -
Beginning of year, as restated (Note 18) 16,039 11,539 - - End of year $ 10,519 15,712 $ - $ - $
(Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Permanent Funds Formely Capital Projects Funds
138

Total Nonmajor
Governmental
Funds
Revenues:

Taxes $ 2,581,465
Intergovernmental 8,292,631
Developer impact fees 2,020,114
Investment income 2,504,305
Miscellaneous 2,704,155
Total revenues 18,102,670
Expenditures:

Current:

General government 19,044
Public safety 1,477,039
Recreation services 3,124
Community development 653,646
Public works 1,999,487
Capital outlay 4,854,016
Debt service:

Principal retirement 3,200,579
Interest and fiscal charges 1,704,021
Total expenditures 13,910,956
Excess (deficiency) of revenues
over expenditures 4,191,714
Other financing sources (uses):

Issuance of debt 520,354
Transfers in 5,109,762
Transfers out (2,320,735)
Total other financing sources (uses) 3,309,381
Net change in fund balances 7,501,095
Fund balances (deficit):

Beginning of year, as previously reported 76,200,446
Change with financial reporting entity
(governmental and enterprise funds classification) (24,480,542) Restatement (Note 18) 441,457
Beginning of year, as restated (Note 18) 52,161,361
End of year $ 59,662,456
(Concluded)
For the Year Ended June 30, 2025
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Gilroy
139

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 3,225,167 3,400,737 $ 3,360,729 $ 135,562 $ Investment income 122,590 122,590 208,526 85,936
Total revenues 3,347,757 3,523,327 3,569,255 221,498
Expenditures:

Current:

Public works 820,216 930,640 1,109,529 (178,889)
Capital outlay 4,914,387 2,718,647 460,122 4,454,265
Total expenditures 5,845,027 3,538,863 1,569,651 4,275,376 Excess (deficiency) of revenues
over expenditures (2,497,270) (15,536) 1,999,604 4,496,874 Other Financing (Uses):

Transfers out (99,863) (99,863) (99,863) -
Total other financing (uses) (99,863) (99,863) (99,863) - NET CHANGE IN FUND BALANCE $ (2,597,133) (115,399) $ 1,899,741 4,496,874 $ FUND BALANCE:

Beginning of year 3,444,023
End of year $ 5,343,764
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budgeted Amounts
Gas Tax Special Revenue Fund
140

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 1,633,853 1,451,253 $ 248,325 $ (1,385,528) $ Investment income 3,647 3,647 9,599 5,952
Total revenues 1,637,500 1,454,900 257,924 (1,379,576)
Expenditures:

Current:

Public works 1,538 1,538 1,539 (1)
Capital outlay 1,740,000 1,399,153 267,567 1,472,433
Total expenditures 1,741,538 1,400,691 269,106 1,472,432 Excess (deficiency) of revenues
over expenditures (104,038) 54,209 (11,182) 92,856
Other Financing (Uses):

Transfers out - - (2,721) (2,721)
Total Other Financing (Uses) - - (2,721) (2,721)
NET CHANGE IN FUND BALANCE $ (104,038) 54,209 $ (13,903) 90,135 $ FUND BALANCE:

Beginning of year 234,985
End of year $ 221,082
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Pavement Management Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
141

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 1,745,142 957,512 $ 969,144 $ (775,998) $ Investment income 5,731 5,731 50,975 45,244
Miscellaneous - - 11,824 11,824
Total revenues 1,750,873 963,243 1,031,943 (718,930)
Expenditures:

Current:

Public safety 1,815,347 857,212 1,072,816 742,531
Capital outlay 33,629 - 19,822 13,807
Total expenditures 1,848,976 857,212 1,092,638 756,338
Excess (deficiency) of revenues
over expenditures (98,103) 106,031 (60,695) 37,408
Other Financing (Uses):

Transfers out (100,000) (100,000) (100,000) -
Total other financing (uses) (100,000) (100,000) (100,000) - NET CHANGE IN FUND BALANCE $ (198,103) 6,031 $ (160,695) 37,408 $ FUND BALANCE:

Beginning of year 968,114
End of year $ 807,419
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Safety Grants Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
142

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes $ 372,700 372,700 $ 330,632 $ (42,068) $
Investment income 1,171 1,171 259 (912)
Total revenues 373,871 373,871 330,891 (42,980)
Expenditures:

Current:

Public safety 404,300 372,700 404,223 77
Total expenditures 404,300 372,700 404,223 77
NET CHANGE IN FUND BALANCE $ (30,429) 1,171 $ (73,332) (42,903) $ FUND BALANCE:

Beginning of year 179,274
End of year $ 105,942
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop 172 Sales Tax Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
143

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 496,246 368,000 $ 488,800 $ (7,446) $ Total revenues 496,246 368,000 488,800 (7,446)
Expenditures:

Current:

Community development 307,870 211,952 312,278 (4,408)
Capital outlay 179,943 172,003 99,500 7,940
Total expenditures 487,813 311,452 484,281 3,532
Excess (deficiency) of revenues
over expenditures 8,433 56,548 4,519 (3,914)
Other Financing Sources (Uses):

Transfers in - - - -
Transfers out (8,433) (56,999) (58,049) (49,616)
Total other financing sources (uses) (8,433) (56,999) (58,049) (49,616) NET CHANGE IN FUND BALANCE $ (0) (451) $ (53,530) (53,530) $ FUND BALANCE:

Beginning of year, as previously reported 2,095,343
Change with financial reporting entity
(governmental and enterprise funds classification) (1,505,096) Beginning of year, as restated (Note 18) 590,247
End of year $ 536,717
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
144

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 24,334 24,334 $ 53,480 $ 29,146 $
Miscellaneous 271,000 271,000 19,729 (251,271)
Total revenues 295,334 295,334 73,209 (222,125)
Expenditures:

Current:

Community development 100,180 300,294 254,968 45,326
Total expenditures 300,294 100,180 254,968 45,326
Excess (deficiency) of revenues
over expenditures (4,960) 195,154 (181,759) (176,799)
Other financing sources (uses):

Issuance of debt - - 520,354 520,354
Transfers out (177,815) (177,815) (562,853) (385,038)
Total other financing sources (uses) (177,815) (177,815) (42,499) 135,316 NET CHANGE IN FUND BALANCE $ (182,775) 17,339 $ (224,258) (41,483) $ FUND BALANCE:

Beginning of year 3,181,048
End of year $ 2,956,790
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Trust Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
145

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes 550,000 $ 550,000 $ 550,893 $ 893 $
Investment income 24,521 24,521 84,329 59,808
Total revenues 574,521 574,521 635,222 60,701
Expenditures:

Current:

Public works 486,015 679,885 544,929 134,956
Capital outlay - 65,000 - 65,000
Total expenditures 744,885 486,015 544,929 199,956
NET CHANGE IN FUND BALANCE $ (170,364) 88,506 $ 90,293 260,657 $ FUND BALANCE:

Beginning of year 1,872,003
End of year $ 1,962,296
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Facilities District Special Revenue Fund
For the Year Ended June 30, 2025
146

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 4,500,000 4,500,000 $ 312,767 $ (4,187,233) $ Investment income 30,816 30,816 113,911 83,095
Total revenues 4,530,816 4,530,816 426,678 (4,104,138)
Expenditures:

Current:

Public works 488 208,482 208,482 -
Capital outlay 4,500,000 6,723,474 117,065 6,606,409
Total expenditures 6,931,956 4,500,488 325,547 6,606,409 NET CHANGE IN FUND BALANCE $ (2,401,140) 30,328 $ 101,131 2,502,271 $ FUND BALANCE:

Beginning of year 2,371,437
End of year $ 2,472,568
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure B Special Revenue Fund
For the Year Ended June 30, 2025
147

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 413,692 413,692 $ 402,669 $ (11,023) $ Investment income 20,195 20,195 90,305 70,110
Total revenues 433,887 433,887 492,974 59,087
Expenditures:

Current:

Public works 26,734 26,734 3,325 23,409
Capital outlay 240,500 924,996 79,178 845,818
Total expenditures 951,730 267,234 82,503 869,227
NET CHANGE IN FUND BALANCE $ (517,843) 166,653 $ 410,471 928,314 $ FUND BALANCE:

Beginning of year 1,854,994
End of year $ 2,265,465
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vehicle License Fee Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
148

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ - - $ 143,000 $ 143,000 $
Investment income 9,204 9,204 43,435 34,231
Total revenues 9,204 9,204 186,435 177,231
Expenditures:

Current:

Community development 86,400 86,400 86,400 -
Total expenditures 86,400 86,400 86,400 -
Excess (deficiency) of revenues
over expenditures (77,196) (77,196) 100,035 177,231
Other financing sources (uses):

Transfers in - - 276,213 276,213
Transfers out - - (5,679) (5,679)
Total other financing sources (uses) - - 270,534 270,534 NET CHANGE IN FUND BALANCE $ (77,196) (77,196) $ 370,569 447,765 $ FUND BALANCE:

Beginning of year 870,166
End of year $ 1,240,735
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Los Arroyos Fund Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
149

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 5,779 5,779 $ 19,397 $ 13,618 $
Total revenues 5,779 5,779 19,397 13,618
Excess (deficiency) of revenues
over expenditures 5,779 5,779 19,397 13,618
Other financing sources (uses):

Transfers in - - 488,103 488,103
Transfers out - - (388,615) (388,615)
Total other financing sources (uses) - - 99,488 99,488
NET CHANGE IN FUND BALANCE $ 5,779 5,779 $ 118,885 113,106 $ FUND BALANCE:

Beginning of year, as previously reported 420,808
Restatement (Note 18) 441,457
Beginning of year, as restated (Note 18) 862,265
End of year $ 981,150
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CalHome Funds Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2025
150

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 270 270 $ 7,640 $ 7,370 $
Miscellaneous - - 129,696 129,696
Total revenues 270 270 137,336 137,066
NET CHANGE IN FUND BALANCE $ 270 270 $ 137,336 137,066 $ FUND BALANCE:

Beginning of year 66,379
End of year $ 203,715
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Opioid Settlement Special Revenue Fund
For the Year Ended June 30, 2025
151

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 7,005 7,005 $ 21,655 $ 14,650 $
Total revenues 7,005 7,005 21,655 14,650
Excess (deficiency) of revenues
over expenditures 7,005 7,005 21,655 14,650
Other financing sources (uses):

Transfers in - - 121,250 121,250
Transfers out - - (56,618) (56,618)
Total other financing sources (uses) - - 64,632 64,632
NET CHANGE IN FUND BALANCE $ 7,005 7,005 $ 86,287 79,282 $ FUND BALANCE:

Beginning of year, as previously reported -
Change with financial reporting entity
(governmental and enterprise funds classification) 1,505,096 Beginning of year, as restated (Note 18) 1,505,096
End of year $ 1,591,383
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Building Equity and Growth in Neighborhoods Special Revenue Fund For the Year Ended June 30, 2025
152

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ 3,753,992 2,621,471 $ 133,384 $ (3,620,608) $ Investment income 41,033 41,033 467,090 426,057
Miscellaneous - 6,153,663 2,542,906 (3,610,757)
Total revenues 9,948,688 2,662,504 3,143,380 (6,805,308) Expenditures:

Current:

Public works 257 257 257 -
Capital outlay 2,673,571 3,823,592 185,703 3,637,889
Total expenditures 3,823,849 2,673,828 185,960 3,637,889 Excess (deficiency) of revenues
over expenditures 6,124,839 (11,324) 2,957,420 (3,167,419) Other financing Sources:

Transfers in - 1,046,337 1,046,337 -
Total other financing sources 1,046,337 - 1,046,337 -
NET CHANGE IN FUND BALANCE $ 7,171,176 (11,324) $ 4,003,757 (3,167,419) $ FUND BALANCE:

Beginning of year 5,769,598
End of year $ 9,773,355
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund
For the Year Ended June 30, 2025
153

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Developer impact fees 9,221,157 $ 9,221,157 $ 1,988,918 $ (7,232,239) $ Investment income 304,498 304,498 849,406 544,908
Total revenues 9,525,655 9,525,655 2,838,324 (6,687,331) Expenditures:

Current:

Public works 18,848 299,941 127,689 172,252
Capital outlay 8,660,209 9,061,456 884,089 8,177,367
Total expenditures 9,361,397 8,679,057 1,011,778 8,349,619 Excess (deficiency) of revenues
over expenditures 164,258 846,598 1,826,546 1,662,288
Other financing sources (uses):

Transfers in 97,538 97,538 97,538 -
Transfers out - (1,046,337) (1,046,337) -
Total other financing sources (uses) (948,799) 97,538 (948,799) - NET CHANGE IN FUND BALANCE $ (784,541) 944,136 $ 877,747 1,662,288 $ FUND BALANCE:

Beginning of year 17,528,111
End of year $ 18,405,858
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Impact Capital Projects Fund
For the Year Ended June 30, 2025
154

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Developer impact fees 259,878 $ 259,878 $ 31,196 $ (228,682) $ Investment income 20,065 20,065 74,401 54,336
Total revenues 279,943 279,943 105,597 (174,346)
Expenditures:

Current:

Public works 6,810 10,035 2,587 7,448
Capital outlay 230,811 460,197 - 460,197
Total expenditures 470,232 237,621 2,587 467,645
Excess (deficiency) of revenues
over expenditures (190,289) 42,322 103,010 293,299
Other financing sources:

Transfers in 93,668 93,668 12,268 (81,400)
Total other financing sources 93,668 93,668 12,268 (81,400) NET CHANGE IN FUND BALANCE $ (96,621) 135,990 $ 115,278 211,899 $ FUND BALANCE:

Beginning of year 2,264,727
End of year $ 2,380,005
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Storm Drains Capital Projects Fund
For the Year Ended June 30, 2025
155

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Developer impact fees 2,000 $ 2,000 $ - $ (2,000) $
Investment income 2,275 2,275 8,245 5,970
Total revenues 4,275 4,275 8,245 3,970
Expenditures:

Current:

Public works 2,248 2,248 248 2,000
Total expenditures 2,248 2,248 248 2,000
Excess (deficiency) of revenues
over expenditures 2,027 2,027 7,997 5,970
Other financing sources:

Transfers in 54 54 55 1
Total other financing sources 54 54 55 1
NET CHANGE IN FUND BALANCE $ 2,081 2,081 $ 8,052 5,971 $ FUND BALANCE:

Beginning of year 178,974
End of year $ 187,026
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Trees Development Capital Projects Fund
For the Year Ended June 30, 2025
156

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 100,000 100,000 $ 286,643 $ 186,643 $ Total revenues 100,000 100,000 286,643 186,643
Expenditures:

Current:

Public work - - 390 (390)
Capital outlay - 800,000 - 800,000
Total expenditures 800,000 - 390 799,610
NET CHANGE IN FUND BALANCE $ (700,000) 100,000 $ 286,253 986,253 $ FUND BALANCE:

Beginning of year 5,615,748
End of year $ 5,902,001
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Capital Projects Fund
For the Year Ended June 30, 2025
157

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ - - $ 2,233,813 $ 2,233,813 $
Total revenues - - 2,233,813 2,233,813
Expenditures:

Capital outlay - 2,673,678 2,668,467 5,211
Total expenditures 2,673,678 - 2,668,467 5,211
NET CHANGE IN FUND BALANCE $ (2,673,678) - $ (434,654) 2,239,024 $ FUND BALANCE (DEFICIT):

Beginning of year (394,317)
End of year $ (828,971)
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Downtown Beautification Capital Projects Fund
For the Year Ended June 30, 2025
158

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 9,122 9,122 $ 37,698 $ 28,576 $
Total revenues 9,122 9,122 37,698 28,576
NET CHANGE IN FUND BALANCE $ 9,122 9,122 $ 37,698 28,576 $ FUND BALANCE:

Beginning of year 817,872
End of year $ 855,570
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stormwater Management Capital Projects Fund
For the Year Ended June 30, 2025
159

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 1,695 1,695 $ 6,472 $ 4,777 $
Total revenues 1,695 1,695 6,472 4,777
Expenditures:

Current:

General government 6,939 6,939 4,702 2,237
Debt service:

Principal retirement 1,140,757 1,140,757 1,140,757 -
Interest and fiscal charges 474,128 474,128 474,128 -
Total expenditures 1,621,824 1,621,824 1,619,587 2,237
Excess (deficiency) of revenues
over expenditures (1,620,129) (1,620,129) (1,613,115) 7,014 Other financing sources:

Transfers in 1,614,885 1,614,885 1,614,885 -
Total other financing sources 1,614,885 1,614,885 1,614,885 - NET CHANGE IN FUND BALANCE $ (5,244) (5,244) $ 1,770 7,014 $ FUND BALANCE:

Beginning of year 190,427
End of year $ 192,197

Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2022A Refunding Bond Debt Service Fund
For the Year Ended June 30, 2025
160

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes 1,897,950 $ 1,897,950 $ 1,699,940 $ (198,010) $
Investment income 11,904 41,917 11,904 30,013
Total revenues 1,909,854 1,909,854 1,741,857 (167,997)
Expenditures:

Current:

General government 6,478 7,691 9,884 (2,193)
Debt service:

Principal retirement 1,124,634 1,124,634 1,124,634 -
Interest and fiscal charges 711,970 711,970 711,969 1
Total expenditures 1,844,295 1,843,082 1,846,487 (2,192) NET CHANGE IN FUND BALANCE $ 65,559 66,772 $ (104,630) (170,189) $ FUND BALANCE:

Beginning of year 1,444,679
End of year $ 1,340,049
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gilroy Community Library Debt Service Fund
For the Year Ended June 30, 2025
161

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 624 624 $ 1,984 $ 1,360 $
Total revenues 624 624 1,984 1,360
Expenditures:

Current:

Public works 512 512 512 -
Debt service:

Principal retirement 95,241 95,241 95,188 53
Interest and fiscal charges 4,622 4,622 4,674 (52)
Total expenditures 100,375 100,375 100,374 1
Excess (deficiency) of revenues
over expenditures (99,751) (99,751) (98,390) 1,361
Other financing sources:

Transfers in 99,863 99,863 99,863 -
Total other financing sources 99,863 99,863 99,863 -
NET CHANGE IN FUND BALANCE $ 112 112 $ 1,473 1,361 $
FUND BALANCE:

Beginning of year 22,098
End of year $ 23,571
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CA Energy Commission Loan Debt Service Fund
For the Year Ended June 30, 2025
162

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 8,345 8,345 $ 24,122 $ 15,777 $
Total revenues 8,345 8,345 24,122 15,777
Expenditures:

Current:

General government 5,658 5,658 3,419 2,239
Debt service:

Principal retirement 840,000 840,000 840,000 -
Interest and fiscal charges 513,250 513,250 513,250 -
Total expenditures 1,358,908 1,358,908 1,356,669 2,239
Excess (deficiency) of revenues
over expenditures (1,350,563) (1,350,563) (1,332,547) 18,016 Other financing sources:

Transfers in 1,353,250 1,353,250 1,353,250 -
Total other financing sources 1,353,250 1,353,250 1,353,250 - NET CHANGE IN FUND BALANCE $ 2,687 2,687 $ 20,703 18,016 $ FUND BALANCE:

Beginning of year 695,835
End of year $ 716,538

Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Lease Revenue Bonds Series 2020A Debt Service Fund
For the Year Ended June 30, 2025
163

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 241 241 $ 712 $ 471 $
Total revenues 241 241 712 471
Expenditures:

Current:

General government - - 1,039 (1,039)
Total expenditures - - 1,039 (1,039)
NET CHANGE IN FUND BALANCE $ 241 241 $ (327) (568) $
FUND BALANCE:

Beginning of year 16,039
End of year $ 15,712
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Henry Miller Permanent Fund
For the Year Ended June 30, 2025
164

Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Investment income $ 727 727 $ 2,104 $ 1,377 $
Total revenues 727 727 2,104 1,377
Expenditures:

Current:

Recreation services - - 3,124 (3,124)
Total expenditures - - 3,124 (3,124)
NET CHANGE IN FUND BALANCE $ 727 727 $ (1,020) (1,747) $ FUND BALANCE:

Beginning of year 11,539
End of year $ 10,519
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Museum Trust Permanent Fund
For the Year Ended June 30, 2025
165

166

General Liability - This fund is used to account for all expenses relating to the City’s general liability insurance. The costs are recovered through an annual “user fee” which is charged to various funds.

INTERNAL SERVICE FUNDS
These funds account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered or the services rendered to those departments.

Fleet Services - This fund is used to account for the operations required to maintain the City’s vehicles. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have vehicle use. This fund also provides funding for replacement of all the City’s vehicles on an “as needed” basis.

Equipment Outlay - This fund is used to allocate resources intended for the purchase of General Fund equipment costing more than $1,000.

Workers’ Compensation - This fund is used to account for all expenses relating to workers’ compensation (i.e., injury claims, insurance premiums, etc.). The costs are recovered through an annual “user fee” which is charged to all departments/funds that have employees.

Facility Services - This fund is used to account for all expenses relating to the operation and maintenance of City facilities.

The costs are recovered through an annual “user fee” which is charged to all departments/funds that have facilities.

Information Technologies - This fund is used to account for all expenses relating to computer hardware, software, maintenance, capital purchasing and other service charges. The costs are recovered through an annual “user fee” which is charged to all departments/funds that have computer equipment.

Personnel Benefits - This fund is used for City paid benefits which are charged. Examples include medical, dental, disability, unemployment, life insurance and retirement including PERS and PARS. These benefit costs are allocated to the funds based on budget for three quarters and then reconciled to actual in the fourth quarter. 167

Fleet Equipment Workers' General
Services Outlay Compensation Liability
ASSETS
Current assets:

Cash and investments 3,745,115 $ 3,468,345 $ 4,905,006 $ 2,561,138 $ Accounts receivable - - - 23,685
Interest receivable - - - -
Lease receivable - current - - - -
Prepaid items - - - -
Total current assets 3,468,345 3,745,115 4,905,006 2,584,823 Noncurrent assets:

Interfund loans receivable 1,916,723 - - -
Lease receivable -noncurrent - - - -
Capital assets:

Nondepreciable 151,428 24,137 - -
Depreciable and amortizable, net 4,898,433 353,816 - -
Total capital assets 5,049,861 377,953 - -
Total noncurrent assets 377,953 6,966,584 - -
Total assets 3,846,298 10,711,699 4,905,006 2,584,823

DEFERRED OUTFLOWS OF RESOURCES
Pension related 168,963 - - -
OPEB related 46,227 - - -
Total deferred outflows of resources 215,190 - - -
(Continued)
City of Gilroy
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
168

Fleet Equipment Workers' General
Services Outlay Compensation Liability

LIABILITIES
Current Liabilities:

Accounts payable 48,204 $ 23,781 $ 17,759 $ 33,243 $
Accrued liabilities 58,154 - - -
Retention payable - - - -
Interest payable - - - -
Deposit payable - - - -
Due to other funds - - - -
Compensated absences, current portion 6,767 - - -
Long term debt, current portion - - - -
Claims payable, current portion - - 1,341,000 862,169
Total OPEB liability, current portion 12,796 - - -
Total current liabilities 23,781 125,921 1,358,759 895,412 Noncurrent liabilities:

Compensated absences, noncurrent portion 20,299 - - -
Long term debt, noncurrent portion - - - -
Claims payable - - 6,720,000 1,883,591
Net pension liability 815,657 - - -
Total OPEB liability, noncurrent portion 240,788 - - -
Total noncurrent liabilities - 1,076,744 6,720,000 1,883,591 Total liabilities 23,781 1,202,665 8,078,759 2,779,003

DEFERRED INFLOWS OF RESOURCES
OPEB related 67,309 - - -
Leases related - - - -
Total deferred inflows of resources - 67,309 - -
NET POSITION:

Net investment in capital assets 5,049,861 377,953 - -
Unrestricted (deficit) 4,607,054 3,444,564 (3,173,753) (194,180) Total net position $ 3,822,517 9,656,915 $ (3,173,753) $ (194,180) $ (Continued)
City of Gilroy
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2025
169

Facility Information Personnel
Services Technologies Benefits Total
ASSETS
Current assets:

Cash and investments 3,829,273 $ 4,005,781 $ 147,397 $ 22,662,055 $ Accounts receivable 24,708 - 6,633 55,026
Interest receivable 2,506 - - 2,506
Lease receivable - current 49,672 - - 49,672
Prepaid items - 194,379 - 194,379
Total current assets 4,200,160 3,906,159 154,030 22,963,638 Noncurrent assets:

Interfund loans receivable - - - 1,916,723
Lease receivable -noncurrent 335,090 - - 335,090
Capital assets:

Nondepreciable 598,404 - - 773,969
Depreciable and amortizable, net 51,250 3,804,595 - 9,108,094 Total capital assets 649,654 3,804,595 - 9,882,063
Total noncurrent assets 3,804,595 984,744 - 12,133,876
Total assets 8,004,755 4,890,903 154,030 35,097,514

DEFERRED OUTFLOWS OF RESOURCES
Pension related 236,580 327,046 - 732,589
OPEB related 38,111 52,235 - 136,573
Total deferred outflows of resources 379,281 274,691 - 869,162 (Continued)
City of Gilroy
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2025
170

Facility Information Personnel
Services Technologies Benefits Total

LIABILITIES
Current Liabilities:

Accounts payable 287,343 $ 377,492 $ 6,542 $ 794,364 $
Accrued liabilities 121,185 117,316 5 296,660
Retention payable 28,387 - - 28,387
Interest payable - 16,842 - 16,842
Deposit payable 4,777 - - 4,777
Due to other funds - - 5,021 5,021
Compensated absences, current portion 17,152 32,731 - 56,650 Long term debt, current portion - 589,289 - 589,289
Claims payable, current portion - - - 2,203,169
Total OPEB liability, current portion 10,549 14,459 - 37,804 Total current liabilities 1,148,129 469,393 11,568 4,032,963 Noncurrent liabilities:

Compensated absences, noncurrent portion 51,455 98,191 - 169,945 Long term debt, noncurrent portion - 724,373 - 724,373
Claims payable - - - 8,603,591
Net pension liability 1,142,076 1,578,793 - 3,536,526
Total OPEB liability, noncurrent portion 198,510 272,080 - 711,378 Total noncurrent liabilities 2,673,437 1,392,041 - 13,745,813 Total liabilities 3,821,566 1,861,434 11,568 17,778,776

DEFERRED INFLOWS OF RESOURCES
OPEB related 55,491 76,057 - 198,857
Leases related 307,040 - - 307,040
Total deferred inflows of resources 76,057 362,531 - 505,897 NET POSITION:

Net investment in capital assets 621,267 2,490,933 - 8,540,014 Unrestricted (deficit) 2,320,362 1,995,480 142,462 9,141,989 Total net position $ 4,486,413 2,941,629 $ 142,462 $ 17,682,003 $ (Concluded)
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2025
City of Gilroy
171

Fleet Equipment Workers' General
Services Outlay Compensation Liability
OPERATING REVENUES:

Charges for services 2,817,424 $ - $ 1,659,597 $ 2,575,268 $ Miscellaneous 4,622 - - 287,921
Total operating revenues - 2,822,046 1,659,597 2,863,189 OPERATING EXPENSES:

Current:

Operations 1,784,420 686,001 20,888 335
Depreciation/Amortization expense 713,618 60,774 - -
Administration 42,366 - 159,705 21,395
Claims and judgments 13,783 - 1,479,161 222,975
Insurance premiums - - 370,645 2,538,043
Total operating expenses 746,775 2,554,187 2,030,399 2,782,748 OPERATING INCOME (LOSS) (746,775) 267,859 (370,802) 80,441 NONOPERATING REVENUES:

Investment income 192,963 167,101 200,986 53,201
Interest expense - - - -
Total nonoperating revenues 167,101 192,963 200,986 53,201 CHANGES IN NET POSITION (579,674) 460,822 (169,816) 133,642 NET POSITION (DEFICIT):

Beginning of year, as previously reported 9,207,736 4,402,191 (3,003,937) (327,822) Change in accounting principle (GASB 101) (11,643) - - - Beginning of year, as restated (Note 18) 9,196,093 4,402,191 (3,003,937) (327,822) End of year 9,656,915 $ 3,822,517 $ (3,173,753) $ (194,180) $ (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position 172

Facility Information Personnel
Services Technologies Benefits Total
OPERATING REVENUES:

Charges for services 4,233,234 $ 3,901,953 $ - $ 15,187,476 $ Miscellaneous 209,787 - - 502,330
Total operating revenues 3,901,953 4,443,021 - 15,689,806 OPERATING EXPENSES:

Current:

Operations 3,230,222 3,270,782 - 8,992,648
Depreciation/Amortization expense 1,314 733,426 - 1,509,132 Administration 515 530 - 224,511
Claims and judgments - - - 1,715,919
Insurance premiums - - - 2,908,688
Total operating expenses 4,004,738 3,232,051 - 15,350,898 OPERATING INCOME (LOSS) (102,785) 1,210,970 - 338,908
NONOPERATING REVENUES:

Investment income 144,903 168,019 - 927,173
Interest expense - (21,759) - (21,759)
Total nonoperating revenues 146,260 144,903 - 905,414
CHANGES IN NET POSITION 43,475 1,355,873 - 1,244,322
NET POSITION (DEFICIT):

Beginning of year, as previously reported 1,606,299 4,500,083 142,462 16,527,012 Change in accounting principle (GASB 101) (20,543) (57,145) - (89,331) Beginning of year, as restated (Note 18) 1,585,756 4,442,938 142,462 16,437,681 End of year 2,941,629 $ 4,486,413 $ 142,462 $ 17,682,003 $ (Concluded)
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) For the Year Ended June 30, 2025
Internal Service Funds
173

Fleet Equipment Workers' General
Services Outlay Compensation Liability

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ - 2,822,046 $ 1,659,597 $ 2,839,534 $ Cash paid to suppliers for goods and services (672,715) (1,423,892) (198,940) (240,977) Cash paid to employees for services - (679,061) - (30)
Cash paid for insurance claims - (13,783) (1,496,806) (2,527,563) Net cash provided by (used in) operating activities (672,715) 705,310 (36,149) 70,964

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other funds - 316,327 - -
Net cash provided by noncapital financing activities - 316,327 - -

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (24,137) (1,138,607) - -
Principal paid - - - -
Interest paid - - - -
Net cash (used in) capital and related
financing activities (24,137) (1,138,607) - -
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 167,101 192,963 200,986 53,201
Net cash provided by investing activities 167,101 192,963 200,986 53,201 Net change in cash and cash equivalents (529,751) 75,993 164,837 124,165 CASH AND CASH EQUIVALENTS:

Beginning of year 3,998,096 3,669,122 4,740,169 2,436,973 End of year $ 3,468,345 3,745,115 $ 4,905,006 $ 2,561,138 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION:

Cash and investments $ 3,468,345 3,745,115 $ 4,905,006 $ 2,561,138 $ Total cash and cash equivalents $ 3,468,345 3,745,115 $ 4,905,006 $ 2,561,138 $ (Continued)
City of Gilroy
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
174

Fleet Equipment Workers' General
Services Outlay Compensation Liability
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:

Operating income (loss) $ (746,775) 267,859 $ (370,802) $ 80,441 $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation and amortization expense 60,774 713,618 - - Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - - - (23,685) (Increase)/decrease in lease receivables - - - -
(Increase)/decrease in prepaid items - - - -
(Increase)/decrease in deferred outflows of resources
related to pensions - 55,506 - -
(Increase)/decrease in deferred outflows of resources
related to OPEB - 12,580 - -
Increase/(decrease) in accounts payable 13,286 (146,284) (18,347) 3,728 Increase/(decrease) in accrued liabilities - (22,451) - - Increase/(decrease) in deposit payable - - - -
Increase/(decrease) in compensated absences - (12,869) - - Increase/(decrease) in claims payable - - 353,000 10,480 Increase/(decrease) in net pension liabilities - (118,504) - - Increase/(decrease) in total OPEB liabilities - (16,120) - - Increase/(decrease) in deferred inflows of resources lease related - - - - Increase/(decrease) in deferred inflows of resources
related to pensions - (3,339) - -
Increase/(decrease) in deferred inflows of resources
related to OPEB - (24,686) - -
Net cash provided by (used in) operating activities $ (672,715) 705,310 $ (36,149) $ 70,964 $ NONCASH ITEMS:

Acquisition of subscription assets $ - - $ - $ - $
Issuance of subscription liabilities $ - - $ - $ - $
(Continued)
City of Gilroy
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
175

Facility Information Personnel
Services Technologies Benefits Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 3,901,953 4,431,638 $ (6,633) $ 15,648,135 $ Cash paid to suppliers for goods and services (1,544,923) (2,607,238) (2,434) (6,691,119) Cash paid to employees for services (1,088,952) (712,737) - (2,480,780) Cash paid for insurance claims - - - (4,038,152)
Net cash provided by (used in) operating activities 1,268,078 1,111,663 (9,067) 2,438,084

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other funds - - 5,021 321,348
Net cash provided by noncapital financing activities - - 5,021 321,348

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (318,476) (152,308) - (1,633,528) Principal paid (647,091) - - (647,091)
Interest paid (12,761) - - (12,761)
Net cash (used in) capital and related
financing activities (978,328) (152,308) - (2,293,380)
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 168,019 144,515 - 926,785
Net cash provided by investing activities 168,019 144,515 - 926,785 Net change in cash and cash equivalents 457,769 1,103,870 (4,046) 1,392,837 CASH AND CASH EQUIVALENTS:

Beginning of year 3,548,012 2,725,403 151,443 21,269,218 End of year $ 4,005,781 3,829,273 $ 147,397 $ 22,662,055 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENT OF NET POSITION:

Cash and investments $ 4,005,781 3,829,273 $ 147,397 $ 22,662,055 $ Total cash and cash equivalents $ 4,005,781 3,829,273 $ 147,397 $ 22,662,055 $ (Continued)
City of Gilroy
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
176

Facility Information Personnel
Services Technologies Benefits Total
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:

Operating income (loss) $ (102,785) 1,210,970 $ - $ 338,908 $ Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation and amortization expense 733,426 1,314 - 1,509,132 Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - (7,406) (6,633) (37,724) (Increase)/decrease in lease receivables 302,867 302,867 (Increase)/decrease in prepaid items 231,028 - - 231,028 (Increase)/decrease in deferred outflows of resources
related to pensions 10,012 70,096 - 135,614
(Increase)/decrease in deferred outflows of resources
related to OPEB (3,002) 11,122 - 20,700
Increase/(decrease) in accounts payable 101,895 (55,112) (2,439) (103,273) Increase/(decrease) in accrued liabilities 35,341 51,122 5 64,017 Increase/(decrease) in deposit payable - 500 - 500
Increase/(decrease) in compensated absences 31,324 10,568 - 29,023 Increase/(decrease) in claims payable - - - 363,480
Increase/(decrease) in net pension liabilities 176,075 (134,204) - (76,633) Increase/(decrease) in total OPEB liabilities 60,740 (16,740) - 27,880 Increase/(decrease) in deferred inflows of resources lease related - (307,344) - (307,344) Increase/(decrease) in deferred inflows of resources
related to pensions (5,014) (4,562) - (12,915)
Increase/(decrease) in deferred inflows of resources
related to OPEB (962) (21,528) - (47,176)
Net cash provided by (used in) operating activities $ 1,268,078 1,111,663 $ (9,067) $ 2,438,084 $ NONCASH ITEMS:

Acquisition of subscription assets $ (1,254,735) - $ - $ (1,254,735) $ Issuance of subscription liabilities $ 1,254,735 - $ - $ 1,254,735 $ (Concluded)
City of Gilroy
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
177

178

These funds account for assets held by the City on behalf of other organizations.

Fiduciary Funds
Senior Advisory Board - This fund is used to account for revenues that come from fundraising and donations. The funds are used to buy equipment for the Senior Center.

Highway 152 Series 2018 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the Highway 152 Series 2018 Bonds.

Custodial Funds
179

180

Senior
Advisory Highway 152
Board Series 2018 Total
Assets:

Cash and investments 10,080 $ 917,022 $ 927,102 $
Cash and investments with fiscal agent - 301,229 301,229 Accounts receivable 1,119 - 1,119
Total Assets 1,219,370 10,080 1,229,450
Net Position:

Restricted for:

Individuals, organizations, and other governments 1,219,370 10,080 1,229,450 Total Net Position $ 1,219,370 10,080 $ 1,229,450 $
Custodial Funds
City of Gilroy
Combining Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
181

Senior
Advisory Highway 152
Board Series 2018 Total
ADDITIONS:

Taxes $ 910,772 - $ 910,772 $
Investment income 30,946 438 31,384
Total additions 941,718 583 942,301
DEDUCTIONS:

General administration 32,221 32,221 -
Payments on conduit bonds - principal 744,468 - 744,468 Payments on conduit bonds - interest 135,959 - 135,959
Total deductions 912,648 - 912,648
CHANGE IN NET POSITION 29,070 583 29,653
NET POSITION:

Beginning of year 1,190,300 9,497 1,199,797
End of year $ 1,219,370 10,080 $ 1,229,450 $
For the Year Ended June 30, 2025
Custodial Funds
City of Gilroy
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds
182

STATISTICAL SECTION
183

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184

Contents Page
Financial Trends 186-195
Revenue Capacity 196-205
Debt Capacity 206-213
Demographic and Economic Information 215-216
Operating Information 217-222

STATISTICAL SECTION
(Unaudited)
This part of the City of Gilroy's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Sources: Unless otherwise noted, the information in these tables is derived from the annual comprehensive financial reports for the relevant year.

These tables contain information to help the reader assess the City's most significant local revenue source, the property tax.

These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
185

2016 2017 2018 2019 2020
Governmental Activities:

Net investment in capital assets 159,684,128 $ 154,863,285 $ 159,069,886 $ 156,750,373 $ 151,904,792 $ Restricted 35,564,991 41,636,040 48,731,281 49,688,804 57,137,761 Unrestricted (deficit) (25,032,197) (25,229,815) (36,193,491) (37,759,850) (42,674,183) Total governmental activities net position (1) 171,269,510 170,216,922 171,607,676 168,679,327 166,368,370 Business-type Activities:

Net investment in capital assets 90,917,108 88,183,287 87,336,604 91,134,932 86,503,324 Restricted - - - - -
Unrestricted 88,668,400 93,612,020 98,375,675 100,053,259 97,543,664 Total business-type activities net position 179,585,508 181,795,307 185,712,279 191,188,191 184,046,988 Primary Government:

Net investment in capital assets 250,601,236 243,046,572 246,406,490 247,885,305 238,408,116 Restricted 35,564,991 41,636,040 48,731,281 49,688,804 57,137,761 Unrestricted 63,636,203 68,382,205 62,182,184 62,293,409 54,869,481 Total primary government net position 349,802,430 $ 353,064,817 $ 357,319,955 $ 359,867,518 $ 350,415,358 $ Governmental Activities Net Position restated in FY2024 (1) Fiscal Year
City of Gilroy
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
186

2021 2022 2023 2024 2025
Governmental Activities: (as restated)
Net investment in capital assets 149,891,568 $ 147,079,194 $ 149,484,869 $ 156,065,446 $ 161,963,439 $ Restricted 57,570,568 71,627,654 75,520,059 74,999,533 60,253,307 Unrestricted (deficit) (42,545,831) (28,023,535) (29,547,209) (27,272,265) (12,889,972) Total governmental activities net position (1) 190,683,313 164,916,305 195,457,719 203,792,714 209,326,774 Business-type Activities:

Net investment in capital assets 83,119,598 73,389,328 56,102,435 41,274,595 38,388,637 Restricted - - - - 24,842,965
Unrestricted 99,198,302 109,250,688 130,281,582 147,256,214 151,891,562 Total business-type activities net position 182,317,900 182,640,016 186,384,017 188,530,809 215,123,164 Primary Government:

Net investment in capital assets 233,011,166 220,468,522 205,587,304 197,340,041 200,352,076 Restricted 57,570,568 71,627,654 75,520,059 74,999,533 85,096,272 Unrestricted 56,652,471 81,227,153 100,734,373 119,983,949 139,001,590 Total primary government net position 347,234,205 $ 373,323,329 $ 381,841,736 $ 392,323,523 $ 424,449,938 $ Governmental Activities Net Position restated in FY2024 (1) Fiscal Year
City of Gilroy
Net Position By Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
187

2016 2017 2018 2019 2020
Expenses:

Governmental activities:

General government $ 6,437,408 3,900,226 $ 7,315,065 $ 7,696,445 $ 6,131,791 $ Public safety 31,020,245 33,393,829 35,591,790 37,837,438 40,088,865 Community development 21,413,283 19,167,193 19,211,323 18,348,409 8,556,959 Public works 8,217,318 8,978,597 9,654,957 9,526,627 23,525,423 Recreation services - - - - -
Interest and other charges 3,327,992 3,256,733 3,147,606 3,226,849 2,431,588 Total governmental activities expenses 67,879,064 71,233,760 74,920,741 76,635,768 80,734,626 Business-type activities
Sewer 12,060,236 12,298,662 11,538,388 14,044,716 14,668,434 Water 8,370,320 9,197,426 9,937,768 11,777,220 12,603,780 Total business-type activities expenses 20,668,982 21,257,662 21,476,156 25,821,936 27,272,214 Total primary government expenses 88,548,046 $ 92,491,422 $ 96,396,897 $ 102,457,704 $ 108,006,840 $ Program revenues:

Governmental activities:

Charges for services:

General government $ 3,087,335 1,651,713 $ 3,280,977 $ 3,726,486 $ 3,550,758 $ Public safety 1,146,593 1,439,418 959,277 1,234,017 1,188,951 Community development 6,145,791 5,207,571 6,430,321 6,624,477 3,909,360 Public works 978,780 986,582 977,834 1,009,235 715,299
Recreation services - - - - -
Operating grants and contributions 22,838,535 15,860,767 19,389,757 13,146,274 14,247,635 Capital grants and contributions 3,820,892 5,438,560 10,319,300 2,649,021 1,931,458 Total governmental activities program revenues 36,582,304 32,020,233 41,357,466 28,389,510 25,543,461 Business-type activities:

Charges for services:

Sewer 12,833,030 11,984,798 12,961,285 12,904,657 12,872,189 Water 7,330,300 9,156,082 11,343,036 12,294,119 14,590,973 Operating grants and contributions - - - - -
Capital grants and contributions 5,086,464 1,172,844 2,330,335 4,160,510 2,439,117 Total business-type activities program revenues 24,401,562 23,161,956 26,634,656 29,359,286 29,902,279 Total primary government program revenues 60,983,866 $ 55,182,189 $ 67,992,122 $ 57,748,796 $ 55,445,740 $ Net revenue (expense):

Governmental activities (31,296,760) $ (39,213,527) $ (33,563,275) $ (48,246,258) $ (55,191,165) $ Business-type activities 3,732,580 1,904,294 5,158,500 3,537,350 2,630,065 Total primary government net expense (27,564,180) $ (37,309,233) $ (28,404,775) $ (44,708,908) $ (52,561,100) $ City of Gilroy
Fiscal Year
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
188

2021 2022 2023 2024 2025
Expenses: (as restated)
Governmental activities:

General government $ 10,224,823 7,315,868 $ 10,440,465 $ 10,791,941 $ 11,885,614 $ Public safety 40,797,962 38,706,978 42,789,395 49,655,154 27,017,687 Community development 7,147,532 7,689,175 6,999,373 5,581,774 6,390,947 Public works 16,862,660 13,840,272 17,285,317 15,161,026 15,766,481 Recreation services 1,779,121 1,600,210 1,755,454 1,871,024 1,831,889 Interest and other charges 2,081,420 2,089,473 2,199,547 1,619,175 1,448,886 Total governmental activities expenses 75,984,563 74,150,931 81,469,551 84,680,094 64,341,504 Business-type activities
Sewer 12,678,990 15,820,944 12,134,168 14,608,119 15,846,817 Water 16,435,598 10,930,989 11,574,875 15,684,791 15,698,968 Total business-type activities expenses 32,256,542 23,609,979 23,709,043 30,292,910 31,545,785 Total primary government expenses 108,241,105 $ 97,760,910 $ 105,178,594 $ 114,973,004 $ 95,887,289 $ Program revenues:

Governmental activities:

Charges for services:

General government $ 4,595,133 2,815,647 $ 4,645,730 $ 4,942,026 $ 5,049,218 $ Public safety 1,242,281 476,918 713,565 553,136 459,161 Community development 4,185,811 3,346,864 3,513,190 4,405,597 4,026,283 Public works 3,593,959 1,317,695 1,122,432 1,466,793 1,942,315 Recreation services 223,154 599,265 561,859 724,581 668,979 Operating grants and contributions 16,482,904 15,464,192 8,683,432 4,312,788 8,547,710 Capital grants and contributions 2,000,357 18,227,036 7,203,431 10,139,778 15,069,439 Total governmental activities program revenues 30,544,113 44,027,103 26,443,639 26,544,699 35,763,105 Business-type activities:

Charges for services:

Sewer 12,912,113 12,702,398 13,037,892 14,229,982 15,234,796 Water 14,830,153 13,959,847 13,286,485 14,615,051 15,831,992 Operating grants and contributions - 414,952 47,697 39,091 - Capital grants and contributions 2,511,059 566,140 561,591 872,072 1,454,890 Total business-type activities program revenues 30,043,610 27,853,052 26,933,665 29,756,196 32,521,678 Total primary government program revenues 60,587,723 $ 71,880,155 $ 53,377,304 $ 56,300,895 $ 68,284,783 $ Net revenue (expense):

Governmental activities (45,440,450) $ (30,123,828) $ (55,025,912) $ (58,135,395) $ (28,578,399) $ Business-type activities (2,212,932) 4,243,073 3,224,622 (536,714) 975,893 Total primary government net expense (47,653,382) $ (25,880,755) $ (51,801,290) $ (58,672,109) $ (27,602,506) $ City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
189

2016 2017 2018 2019 2020
General revenues and other changes in net position:

Governmental Activities:

Taxes:

Property taxes 11,468,510 $ 12,278,553 $ 13,161,002 $ 14,476,481 $ 15,595,639 $ Sales tax 17,884,735 17,768,469 18,827,189 20,186,105 17,233,882 Transient occupancy taxes 1,676,691 1,709,332 1,722,355 1,771,882 1,237,812 Franchise tax 1,569,059 1,623,951 1,713,690 1,669,817 1,855,622 Other taxes 5,116,588 5,264,486 5,192,899 5,093,813 5,667,201 Investment income 647,057 900,622 1,190,732 2,567,147 2,039,471 State motor vehicle in lieu 21,385 24,715 29,444 26,695 - Other 392,815 15,188 571,340 166,316 127,479
Transfers (685,189) (305,505) 1,241,528 (640,347) (447,847) Total governmental activities 38,091,651 39,279,811 43,650,179 45,317,909 43,309,259 Business-type activities:

Investment and rental income - - - 1,298,215 1,169,133
Other - - - - -
Transfers 685,189 305,505 (1,241,528) 640,347 447,847
Total business-type activities 685,189 305,505 (1,241,528) 1,938,562 1,616,980 Total primary government 38,776,840 $ 39,585,316 $ 42,408,651 $ 47,256,471 $ 44,926,239 $ Changes in net position:

Governmental activities 6,794,891 $ 66,284 $ 10,086,904 $ (3,209,094) $ (11,881,906) $ Business-type activities 4,417,769 2,209,799 3,916,972 5,475,912 4,247,045 Total primary government 11,212,660 $ 2,276,083 $ 14,003,876 $ 2,266,818 $ (7,634,861) $ Net Position, Beginning
Beginning Net Position Restatement (1)(2) 348,802,430 338,589,770 343,316,059 357,319,935 358,050,219 Restatement - (7,762,454) - (1,536,534) 12,990
Changes in Net Position 11,212,660 2,276,083 14,003,876 2,266,818 (7,634,861) Net Position, Ending $ 343,316,059 349,802,430 $ 357,319,935 $ 358,050,219 $ 350,428,348 $ (1)
(2)
Net Position, as restated in FY2024, 2023, 2020, 2018, and 2015.

A change in accounting estimate and change within the financial reporting entity are treated prospectively, prior periods are not restated.

Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
190

2021 2022 2023 2024 2025
General revenues and other changes in net position: (as restated) Governmental Activities:

Taxes:

Property taxes 17,016,855 $ 20,294,522 $ 21,600,130 $ 22,449,412 $ 22,667,453 $ Sales tax 18,584,534 23,216,109 22,936,208 23,178,306 20,478,194 Transient occupancy taxes 1,105,300 1,545,721 1,754,615 1,560,500 1,509,597 Franchise tax 1,732,613 1,874,046 2,198,150 2,239,365 2,354,848 Other taxes 5,030,153 6,107,309 6,955,492 6,923,185 7,418,030 Investment income 502,770 (418,588) 3,438,121 7,321,678 3,075,916 State motor vehicle in lieu - - - - -
Other 644,291 3,345,996 1,417,790 3,012,623 2,269,201
Transfers (641,121) (74,279) (878,113) (656,136) 829,416 Total governmental activities 43,975,395 55,890,836 59,422,393 66,028,933 60,602,655 Business-type activities:

Investment and rental income (157,277) (4,011,115) (365,320) 2,012,613 2,072,352 Other - 15,879 6,586 14,757 117,947
Transfers 641,121 74,279 878,113 656,136 (829,416)
Total business-type activities 483,844 (3,920,957) 519,379 2,683,506 1,360,883 Total primary government 44,459,239 $ 51,969,879 $ 59,941,772 $ 68,712,439 $ 61,963,538 $ Changes in net position:

Governmental activities (1,465,055) $ 25,767,008 $ 4,396,481 $ 7,893,538 $ 32,024,256 $ Business-type activities (1,729,088) 322,116 3,744,001 2,146,792 2,336,776 Total primary government (3,194,143) $ 26,089,124 $ 8,140,482 $ 10,040,330 $ 34,361,032 $ Net Position, Beginning
Beginning Net Position Restatement (1)(2) 347,234,205 350,428,348 373,701,254 381,841,736 390,088,906 Restatement - 377,925 - 441,457 -
Changes in Net Position (3,194,143) 26,089,124 8,140,482 10,040,330 34,361,032 Net Position, Ending $ 373,701,254 347,234,205 $ 381,841,736 $ 392,323,523 $ 424,449,938 $ (1)
(2)
Net Position, as restated in FY2024, 2023, 2020, 2018, and 2015.

A change in accounting estimate and change within the financial reporting entity are treated prospectively, prior periods are not restated.

Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
191

2016 2017 2018 2019 2020
General fund:

Nonspendable 84,923 $ 74,217 $ 126,965 $ 76,000 $ 126,915 $ Restricted - - - - -
Committed - - - - -
Unassigned 22,202,316 24,354,609 25,475,105 27,683,870 14,731,555 Total general fund 22,287,239 $ 24,428,826 $ 25,602,070 $ 27,759,870 $ 14,858,470 $ All other governmental funds:

Nonspendable 8,670 9,470 25,570 1,000 706,754
Restricted 44,922,496 50,775,875 55,248,281 57,445,219 57,421,683 Assigned 2,827,521 1,588,907 1,448,954 1,483,818 5,368,008 Unassigned (deficit) (7,883,587) (5,761,804) (2,841,776) (4,206,362) (6,380,638) Total all other governmental funds 39,875,100 $ 46,612,448 $ 53,881,029 $ 54,723,675 $ 57,115,807 $ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
192

2021 2022 2023 2024* 2025
General fund:

Nonspendable 47,874 $ 739 $ 23,750 $ 51,833 $ 111,832 $ Restricted - 1,983,396 2,532,036 3,964,467 5,669,222
Committed - 5,572,376 6,205,317 6,952,136 7,229,465
Unassigned 19,585,369 30,349,205 33,190,840 31,713,047 28,001,153 Total general fund 19,633,243 $ 37,905,716 $ 41,951,943 $ 42,681,483 $ 41,011,672 $ All other governmental funds:

Nonspendable - - - - 50,000
Restricted 58,391,239 67,727,936 71,140,553 71,266,622 53,426,226 Assigned 5,276,579 5,494,298 3,603,942 5,769,598 7,039,682 Unassigned (deficit) (5,397,542) - (1,205,740) (712,945) (3,154,405) Total all other governmental funds 58,270,276 $ 73,222,234 $ 73,538,755 $ 76,323,275 $ 57,361,503 $ Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
193

2016 2017 2018 2019 2020
Revenues:

Taxes 40,177,903 $ 41,350,739 $ 43,512,402 $ 51,483,855 $ 44,269,937 $ Licenses and permits 3,720,755 2,713,733 2,751,137 3,487,338 1,776,651 Intergovernmental 4,291,272 3,748,000 4,047,728 3,913,484 5,473,529 Charges for services 24,960,535 18,973,863 22,820,605 11,501,828 13,951,822 Developer impact fees - - - - -
Fines 266,163 293,899 208,305 239,873 282,535
Investment income (loss) 608,641 762,671 1,084,408 1,247,543 1,884,149 Miscellaneous 2,059,106 1,604,397 1,635,888 1,990,459 1,348,130 Total revenues 76,084,375 69,447,302 76,060,473 73,864,380 68,986,753 Expenditures:

General government 4,532,241 4,906,824 5,103,946 5,760,831 6,361,042 Public safety 29,867,361 30,830,873 31,781,515 34,062,421 36,867,887 Public works 6,764,060 7,231,274 7,723,166 7,831,193 7,897,645 Recreation services - - - - -
Community development 14,675,204 11,052,313 14,993,509 15,421,483 19,143,243 Capital outlay - - - - -
Debt service:

Principal retirement 2,305,000 2,459,619 2,558,818 2,654,708 2,986,212 Interest 3,479,710 3,410,441 3,302,252 3,448,556 3,011,707 Bond issuance costs - - - 112,903 -
Total expenditures 61,623,576 59,891,344 65,463,206 69,292,095 76,267,736 Excess of revenues over
(under) expenditures 14,460,799 9,555,958 10,597,267 4,572,285 (7,280,983) Other Financing Sources (Uses):

Transfers in 6,803,782 4,233,745 4,503,781 4,236,075 8,937,984 Transfers out (8,521,471) (4,910,768) (6,659,253) (5,876,422) (12,905,997) Issuance of loan/notes 241,926 - - - -
Issuance of bonds - - - - 19,087,551
Issuance of new subscription - - - - -
Payment to refunded bond escrow - - - - (19,350,000)
Payment to bond escrow agent - - - (8,565,000) -
Premium on bonds - - - 8,633,538 -
Total other financing sources (uses) (1,475,763) (677,023) (2,155,472) (1,571,809) (4,230,462) Net Change in fund balances 12,985,036 $ 8,878,935 $ 8,441,795 $ 3,000,476 $ (11,511,445) $ Fund balances - July 1 - 12,985,036 21,863,971 30,305,766 83,485,722 Fund balances - June 30 12,985,036 $ 21,863,971 $ 30,305,766 $ 33,306,242 $ 71,974,277 $ Debt service as a percentage
of noncapital expenditures 9.52% 9.97% 9.58% 8.99% 8.67% Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
194

2021 2022 2023 2024* 2025
Revenues:

Taxes 45,916,497 $ 53,037,707 $ 53,901,735 $ 54,719,656 $ 55,405,879 $ Licenses and permits 2,278,304 2,672,186 2,696,318 3,437,189 2,971,032 Intergovernmental 6,612,274 14,805,279 9,788,254 6,640,522 9,714,115 Charges for services 17,484,867 7,380,631 7,621,129 8,430,618 8,409,803 Developer impact fees - 18,227,036 7,021,901 9,112,253 3,598,950 Fines 231,688 262,403 255,359 238,128 169,425
Investment income (loss) 358,452 (541,243) 3,094,097 6,464,017 4,672,103 Miscellaneous 2,867,269 4,023,213 2,395,534 4,799,222 4,704,125 Total revenues 75,749,351 99,867,212 86,774,326 93,841,605 89,645,432 Expenditures:

General government 5,931,022 7,949,662 9,335,054 9,330,022 10,446,409 Public safety 35,856,183 37,687,794 40,547,210 45,346,356 48,242,373 Public works 7,231,722 6,094,830 6,073,851 6,396,896 1,831,889 Recreation services 1,702,666 1,463,448 1,755,215 1,816,860 6,365,424 Community development 5,523,912 5,535,526 5,682,180 5,827,599 7,819,597 Capital outlay 6,243,057 2,639,733 12,146,904 16,426,670 7,520,246 Debt service:

Principal retirement 2,817,325 2,820,129 2,961,464 3,042,000 3,211,825 Interest 2,784,374 2,377,338 2,097,145 1,926,493 1,733,201 Bond issuance costs - - 169,268 - -
Total expenditures 68,090,261 66,568,460 80,768,291 90,112,896 87,170,964 Excess of revenues over
(under) expenditures 7,659,090 33,298,752 6,006,035 3,728,709 2,474,468 Other Financing Sources (Uses):

Transfers in 24,306,099 6,603,536 6,325,297 6,948,526 6,378,161 Transfers out (24,953,804) (6,677,815) (7,203,410) (7,604,662) (5,548,745) Issuance of loan/notes - - - - 520,354
Issuance of bonds 16,459,825 - 14,587,831 - -
Issuance of new subscription - - - - 24,721
Payment to refunded bond escrow (17,555,000) - (15,352,976) - - Payment to bond escrow agent - - - - -
Premium on bonds - - - - -
Total other financing sources (uses) (1,742,880) (74,279) (1,643,258) (656,136) 1,374,491 Net Change in fund balances 5,916,210 $ 33,224,473 $ 4,362,777 $ 3,072,573 $ 3,848,959 $ Fund balances - July 1 71,987,267 77,903,477 111,127,950 115,932,185 94,524,216 Fund balances - June 30 77,903,477 $ 111,127,950 $ 115,490,726 $ 119,004,758 $ 98,373,175 $ * Governmental Funds restricted fund balance were restated in FY2024 A change in accounting estimate and change within the financial reporting entity are treated prospectively, prior periods are not restated.

Debt service as a percentage
of noncapital expenditures 8.79% 8.15% 7.25% 6.93% 6.59% (modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
195

CATEGORY 2016 2017 2018 2019 2020
Outlet Center $ 2,669,216 2,747,030 $ 2,571,713 $ 2,464,617 $ 1,739,806 $ Newman Development 2,500,961 2,426,698 2,529,804 2,743,665 2,643,207 Regency Center 968,005 999,738 987,417 1,004,376 896,599 Downtown Core 398,344 356,687 385,497 505,600 472,427
General Retail 6,536,526 6,530,153 6,474,431 6,718,258 5,752,039 Auto Dealers 3,224,719 2,633,013 3,691,038 3,855,166 3,056,022 Service Stations 1,064,232 1,094,398 1,290,582 1,298,298 1,129,189 Transportation 4,288,951 3,727,411 4,981,620 5,153,464 4,185,211 Others 4,263,541 4,018,337 4,632,323 4,418,367 4,294,454 Allocation from State and County 2,679,451 3,608,834 2,152,877 3,896,016 3,002,179 TOTALS: $ 17,768,469 17,884,735 $ 18,241,251 $ 20,186,105 $ 17,233,883 $ Population 55,170 55,936 55,615 55,928 57,084
Sales Tax Per Capita 324 318 328 361 321
City of Gilroy
Sales Tax by Category
Last Ten Fiscal Years
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities Fiscal Year
0 50
100
150
200
250
300
350
400
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0 5,000
10,000
15,000
20,000
25,000
Others State/County Gen. Retail Transportation Per Capita 196

CATEGORY 2021 2022 2023 2024 2025
Outlet Center $ 2,042,775 1,869,275 $ 2,009,201 $ 2,007,700 $ 1,818,992 $ Newman Development 3,251,290 2,955,455 3,243,837 3,226,099 3,151,904 Regency Center 1,028,435 1,000,140 1,032,918 1,047,510 1,100,673 Downtown Core 547,587 512,427 502,300 501,092 525,938
General Retail 6,870,087 6,337,297 6,788,256 6,782,400 6,597,507 Auto Dealers 3,609,865 2,446,254 3,890,947 4,164,506 3,578,128 Service Stations 1,572,748 1,085,319 1,527,970 1,497,575 1,397,148 Transportation 5,182,613 3,531,573 5,418,917 5,662,082 4,975,276 Others 5,317,890 4,580,258 4,929,974 4,899,445 4,818,317 Allocation from State and County 4,238,018 3,867,949 3,892,813 3,775,708 4,087,094 TOTALS: $ 21,608,608 18,317,077 $ 21,029,959 $ 21,119,634 $ 20,478,194 $ Population 59,920 59,269 60,078 61,033 62,205
Sales Tax Per Capita 361 355 350 346 329
City of Gilroy
Sales Tax by Category (Continued)
Last Ten Fiscal Years
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities Fiscal Year
197

Agency 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

6.250% 6.000% 6.000% 6.000% 6.000% 6.000% 6.000% 6.000% 6.000% 6.000%

0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250% 0.250%

1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000% 1.000%

0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125%

0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%

0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500%

0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125% 0.125%

0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 0.500% 2020 Peninsula Corridor JPB Retail 0.125% 0.125% 0.125% 0.125% Total 8.750% 9.000% 9.000% 9.000% 9.000% 9.000% 9.000% 9.000% 9.125% 9.125% Source: California Department of Tax and Fee Administration

FISCAL YEAR
City of Gilroy
Sales Tax Rates
Last Ten Fiscal Years
SCC Transit District
SCC Valley Transportation Authority
SCC VTA Bay Area Rapid Transit
Silicon Valley Transportation Solutions Tax
State of California
Santa Clara County (SCC) Transportation
City of Gilroy
SCC Retail Transactions and Use Tax
SCC Transactions and Use Tax

0.00% 2.00% 4.00% 6.00% 8.00% 10.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Gilroy
198

Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations Ross Stores Apparel Stores Best Buy Stores Furniture/Appliance Kohl's Department Stores Department Stores Chevron Service Stations Service Stations Home Depot Bldg.Matls-Retail Costco Wholesale Department Stores Chrysler Jeep Dodge Ram Auto Sales - New Cresco Equipment Rentals Heavy Industry Arco AM/PM Mini Marts Service Stations Freeway Toyota Of Gilroy Auto Sales - New Wal Mart Stores Department Stores Gilroy Buick Gmc Auto Sales - New Target Stores Department Stores Gilroy Chevrolet Cadillac Auto Sales - New Best Buy Stores Furniture/Appliance Gilroy Chrysler Dodge Jeep Ram Auto Sales - New Nike Factory Store Apparel Stores Home Depot Bldg.Matls-Retail Chevron Service Stations Service Stations Hyundai Of Gilroy Auto Sales - New South County Nissan Hyundai Auto Sales - New In-N-Out Burgers Restaurants Ann Taylor Loft Apparel Stores Lowe's Home Centers Bldg.Matls-Retail Gilroy Chevrolet Cadillac Auto Sales - New Marshall's Stores Apparel Stores Rotten Robbie Service Stations Service Stations Mcdonald's Restaurants Restaurants Calvin Klein Apparel Stores Nike Factory Store Apparel Stores Shell Service Stations Service Stations Pape Machinery Heavy Industry Union 76 Service Stations Service Stations Performance Foodservice- Ledyard Office Equipment Ralph Lauren Apparel Stores Ross Stores Apparel Stores Coach Stores Miscellaneous Retail Rotten Robbie Service Stations Service Stations Vans Apparel Stores Shell Service Stations Service Stations Lowe's Home Centers Bldg.Matls-Retail Target Stores Department Stores Gilroy Toyota Auto Sales - New Tesla Auto Sales - New Costco Wholesale Department Stores Union 76 Service Stations Service Stations Mcdonald's Restaurants Restaurants WalMart Stores Department Stores See Grins RV Misc. Vehicle Sales Source: MuniServices, LLC / Neumo
City of Gilroy
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2025 2016
199

Fiscal
Year
End Local Secured*
Homeowner
Exempt
Valuation
Net Local
Secured Net Utility
Net
Unsecured
Net Taxable
Assessed Value
Total
Direct
Tax Rate
(1)
Estimated
Actual Taxable
Value (2)
Factor of
Taxable
Assessed
Value (2)
Assessed
Value as a
Percentage
of Actual
Value
2015-16 6,798,621,370 $ 45,871,000 $ 6,752,750,370 $ 47,030,836 $ 268,445,327 $ 7,068,226,533 $ 0.902963 - $ - - 2016-17 7,385,130,561 46,578,000 7,338,552,561 42,130,836 273,713,487 7,654,396,884 0.902963 - - - 2017-18 7,872,947,886 47,244,400 7,825,703,486 39,330,836 263,667,226 8,128,701,548 0.097037 10,250,699,087 1.261050 79.30% 2018-19 8,445,397,378 48,090,000 8,397,307,378 38,939,704 256,724,279 8,692,971,361 0.097037 11,893,042,148 1.368122 73.09% 2019-20 9,001,686,593 47,874,400 8,953,812,193 32,539,704 257,410,089 9,243,761,986 0.097037 16,306,012,109 1.764002 56.69% 2020-21 9,557,360,668 47,341,000 9,510,019,668 29,739,704 267,854,749 9,807,614,121 0.097037 11,688,408,441 1.191769 83.91% 2021-22 9,968,898,669 46,512,200 9,922,386,469 27,039,704 293,294,693 10,242,720,866 0.097037 14,183,999,567 1.384788 72.21% 2022-23 10,644,717,775 45,712,800 10,599,004,975 39,839,704 289,253,563 10,928,098,242 0.097037 17,373,962,605 1.589843 62.90% 2023-24 11,234,636,496 46,515,000 11,188,121,496 30,437,000 325,291,713 11,543,850,209 0.097037 16,382,162,561 1.419125 70.47% 2024-25 11,761,412,938 46,487,000 11,714,925,938 26,537,000 363,106,171 12,104,569,109 0.097037 18,980,213,717 1.568021 63.77% Source: Santa Clara County Assessor data, MuniServices, LLC / Neumo Source: City of Gilroy Publication, 2024 Annual Comprehensive Financial Statement Report *Local Secured is net of Other Exemptions.
(1) Total direct tax rate is the city share of the 1% Proposition 13 tax only for TRA 02-000.

City of Gilroy
Citywide Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(2) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values. 200

Category 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Residential 6,316,795,853 $ 6,846,995,669 $ 7,292,373,081 $ 7,766,498,649 $ 8,150,395,267 $ 8,690,685,653 $ 9,207,065,066 $ 9,207,065,066 $ Commercial 848,468,930 899,654,270 931,059,983 989,793,738 1,013,695,555 1,051,729,768 1,079,459,529 1,079,459,529 Industrial 483,919,877 479,091,993 538,635,466 667,191,707 638,120,876 667,277,047 721,813,976 721,813,976 Vacant 162,759,148 - 216,844,260 163,403,099 192,863,417 262,155,390 281,375,235 281,375,235 Professional 101,593,308 17,961,578 108,709,436 110,337,229 116,626,048 111,984,310 116,212,988 116,212,988 Institutional 109,350,727 112,041,055 111,348,784 65,615,240 90,554,109 91,711,842 93,584,474 93,584,474 Agriculture 55,688,053 47,135,427 52,895,647 38,226,087 38,372,143 47,049,922 57,468,039 57,468,039 Unitary 17,729,263 38,939,704 32,539,704 29,739,704 27,039,704 39,839,704 30,437,000 30,437,000 Public 16,969,672 104,675,187 23,763,391 31,201,356 37,443,425 37,469,354 39,008,670 39,008,670 Transportation 39,330,836 193,663,876 28,585,319 28,569,765 27,777,083 29,389,066 15,515,172 15,515,172 Recreational 18,281,904 22,525,565 23,001,970 22,973,251 23,200,859 26,346,641 27,906,775 27,906,775 Social 2,107,545 18,604,008 19,463,964 19,888,529 20,081,552 20,568,947 20,849,482 20,849,482 Forestry 1,773,940 6,830,161 6,966,865 7,106,317 7,180,104 7,323,632 7,470,029 7,470,029 Unknown - 2,149,694 - - - - - -
Gross Secured Value 8,174,769,056 8,790,268,187 9,386,187,870 9,940,544,671 10,383,350,142 11,083,531,276 11,698,166,435 11,698,166,435 Unsecured Value 265,619,082 260,824,323 261,877,511 272,030,637 297,421,158 289,253,563 325,291,713 325,291,713 Less Exemptions 358,121,149 311,686,590 404,303,395 404,961,187 438,050,434 444,686,597 479,607,939 479,607,939 Net Taxable Value 8,128,701,548 $ 8,692,971,361 $ 9,243,761,986 $ 9,807,614,121 $ 10,242,720,866 $ 10,928,098,242 $ 11,543,850,209 $ 11,543,850,209 $ Source: Santa Clara County Assessor data, MuniServices, LLC / Neumo Use code categories are based on Santa Clara County Assessor's data (1)Data available since fiscal year 2017-18
City of Gilroy
Assessed Value of Property by Use Code
Last Eight Fiscal Year(1)
201

2015-16 2016-17 2017-18 2018-19 2019-20
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963

1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.008800 0.008600 0.008200 0.007200 0.006900
County Housing Bond 2016 0.000000 0.000000 0.012660 0.010500 0.010000 Gilroy City Bond 2008 0.029000 0.027200 0.026000 0.025000 0.020000 Gilroy Unified School 2002 0.052200 0.050100 0.047800 0.046700 0.044400 Gilroy Unified 11/2008 0.054900 0.051300 0.049100 0.046300 0.054400 Gilroy Unified 2016 0.000000 0.060000 0.055900 0.015400 0.053400 Gavilan Community College 04 0.022600 0.021600 0.020000 0.019200 0.018700 Gavilan Jt CCD 2018 0.000000 0.000000 0.000000 0.000000 0.024400 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.005700 0.008600 0.006200 0.004200 0.004100

0.214400 0.268600 0.267060 0.215700 0.277500
TOTAL TAX RATE 1.214400 1.268600 1.267060 1.215700 1.277500 Source: Santa Clara County Auditor data, MuniServices, LLC / Neumo Source: City of Gilroy Publication, 2024 Annual Comprehensive Financial Statement Report This table shows rates for TRA 02-000.

City of Gilroy
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
202

2020-21 2021-22 2022-23 2023-24 2024-25
Basic City and County Levy
City Direct Rate 0.097037 0.097037 0.097037 0.097037 0.097037 All others 0.902963 0.902963 0.902963 0.902963 0.902963

1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
County Retire Levy 0.038800 0.038800 0.038800 0.038800 0.038800 County Library 0.002400 0.002400 0.002400 0.002400 0.002400 VMC 2008 0.006900 0.006100 0.006300 0.005500 0.005500
County Housing Bond 2016 0.000000 0.012660 0.010800 0.009500 0.004300 Gilroy City Bond 2008 0.019000 0.017500 0.017000 0.015000 0.013000 Gilroy Unified School 2002 0.042800 0.037000 0.028000 0.031600 0.023900 Gilroy Unified 11/2008 0.054100 0.052700 0.050900 0.049000 0.048900 Gilroy Unified 2016 0.055000 0.050900 0.047300 0.045300 0.045100 Gavilan Community College 04 0.018400 0.017900 0.016800 0.015900 0.015800 Gavilan Jt CCD 2018 0.023200 0.024100 0.022600 0.023800 0.021700 Lease Debt-Gilroy Unified 0.000000 0.000000 0.000000 0.000000 0.000000 Lease Debt-Gilroy Unified Priorye 0.000000 0.000000 0.000000 0.000000 0.000000 SCVWD-State Water Project 0.003700 0.005100 0.004400 0.004100 0.004100

0.264300 0.265160 0.245300 0.240900 0.223500
TOTAL TAX RATE 1.264300 1.265160 1.245300 1.240900 1.223500 Source: Santa Clara County Auditor data, MuniServices, LLC / Neumo Source: City of Gilroy Publication, 2024 Annual Comprehensive Financial Statement Report This table shows rates for TRA 02-000.

City of Gilroy
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
203

Taxpayer Taxable Value ($)
Percent of Total City
Taxable Value (%) Taxable Value ($)
Percent of Total City
Taxable Value (%)
Simon Property Group 237,048,346 $ 1.96% 201,180,862 $ 2.85% Olam West Coast Inc. 85,811,521 0.71% 69,130,585 0.98%
United Natural Foods West Inc. 74,352,025 0.61% 22,854,481 0.32% Amazon Data Services Inc. 65,664,454 0.54%
Gilroy Industrial Owner LLC 65,601,359 0.54%
Joule Gilroy Crossing Owner LLC 61,002,927 0.50%
Mabury Vineyards LLC 58,244,468 0.48%
Performance Food Group Inc. 55,264,106 0.46%
Monterey Gourmet Foods 48,286,685 0.40% 25,104,539 0.36% Walmart - Real Estate Business Trust 37,119,456 0.31% 31,938,384 0.45% MG at Gilroy LP 36,140,361 0.30%
E P & G South Valley Plaza LLC 30,119,008 0.25%
Gilroy Plant 70 28,231,447 0.23%
Towman Cadena LLC 27,621,203 0.23%
Costco Wholesale Corporation 25,554,470 0.21% 20,860,091 0.30% Syngenta Flowers LLC 25,483,568 0.21% 13,775,897 0.19%
Avery Cypress Pointe LP 23,636,616 0.20% 13,562,417 0.19% Canciamilla Anthony Trust 23,588,438 0.19%
Lennar Homes Of California LLC 22,561,551 0.19%
Target Corporation 22,229,779 0.18% 16,392,277 0.23%
FSC Industrial 10 Manager LLC 19,930,682 0.16%
First Street Gilroy I LLC 19,298,476 0.16%
Blue Diamond Hospitality LLC 19,009,053 0.16%
EHJ9 Property LLC 18,889,502 0.16%
Sterigenics U S LLC 18,849,524 0.16% 19,021,401 0.27%
Excel Gilroy LLC 1.02% 72,005,285
Inland Western Gilroy I LLC 0.69% 48,619,795
Westwood Drive Fee Owner LLC 39,170,653 0.55%
Tin Inc. 0.44% 31,118,009
7610 Isabella Way LLC 0.41% 28,708,975
Shapell Industries Inc. 0.29% 20,615,674
Meritage Homes Of California I 20,482,477 0.29%
Calpine Gilroy Cogen LP 0.27% 18,763,617
CP6SV LLC 0.26% 18,600,000
Standard Pacific Corporation 18,201,755 0.26%
Lowes HIW Inc. 0.23% 15,963,315
Mission Park Gilroy LLC 0.22% 15,446,495
HD Dev Of Maryland Inc. 0.22% 15,379,084
Gilroy Village Shopping Center 14,746,059 0.21%
KB Home So Bay Inc. 0.20% 14,469,427
Total Top 25 Taxpayers 1,149,539,025 9.50% 826,111,554 11.69% Total Taxable Value 12,104,569,109 100.00% 7,068,226,533 100.00% Source: Santa Clara County Assessor data, MuniServices, LLC / Neumo City of Gilroy
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2025 2016
204

Fiscal Year Tax Levied for the Fiscal Year Amount Collected Percent (%) of Levy 2015-16 6,903,278 $ 6,963,327 $ 100.87%
2016-17 7,472,764 7,487,528 100.20%
2017-18 7,941,242 7,941,242 100.00%
2018-19 8,521,868 8,521,868 100.00%
2019-20 9,060,136 9,060,136 100.00%
2020-21 9,598,648 9,598,648 100.00%
2021-22 9,990,898 9,990,898 100.00%
2022-23 10,734,341 10,734,341 100.00%
2023-24 11,311,772 11,311,772 100.00%
2024-25 11,849,042 11,849,042 100.00%
Source: MuniServices, LLC / Neumo
Source: County Auditor-Controller
City of Gilroy
Property Tax Levies and Collections
Last Ten Fiscal Years
205

General Tax Lease Special
Fiscal Revenue Allocation Notes & Revenue Assessment Subscription Year Bonds (4)(5)(6) Bonds Loans Bonds(4) Bonds Payable 2016 30,335,000 $ - $ 1,201,155 $ 44,496,134 $ - $ - $
2017 29,550,000 - 1,126,536 42,763,150 - -
2018 28,745,000 - 1,037,719 40,965,166 - -
2019 19,350,000 - 948,011 39,097,182 - -
2020 26,630,459 - 857,428 36,713,218 - -
2021 25,639,646 - 765,913 33,337,681 - -
2022 24,616,950 - 673,484 31,366,561 - 890,209
2023 23,561,345 - 580,122 28,177,439 - 625,094
2024 22,471,772 - 485,844 26,110,077 - 706,018
2025 21,347,138 - 911,010 23,920,103 - 1,327,137
Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.

Source:
(1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021.

Governmental Activities
City of Gilroy
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
206

Wastewater Total % of
Fiscal Revenue Subscription Primary Property Net Debt
Year Bonds(3) (7) Payable Government(1) Assessed Value (2) per Capita 2016 16,491,551 $ - $ 92,523,840 $ 1.31% 1,677
2017 14,393,793 - 87,833,479 1.15% 1,570
2018 12,206,034 - 82,953,919 1.02% 1,484
2019 9,928,276 - 69,323,469 0.90% 1,391
2020 7,545,517 - 71,746,622 0.78% 1,257
2021 57,865,509 - 117,608,749 1.20% 1,963
2022 55,093,508 22,500 112,640,712 1.10% 1,892
2023 52,494,265 - 105,438,264 1.07% 1,755
2024 51,610,022 - 101,383,733 0.93% 1,661
2025 50,695,779 13,474 98,201,167 0.81% 1,579
Note: Details regarding the outstanding debt can be found in the notes to the basic financial statements.

Source:
(1) Finance Department, City of Gilroy (2) Finance Department, County of Santa Clara (3) In 2010, the City issued revenue refunding bonds to refinance an existing installment payment obligation. (4) Presented net of related premiums, discounts, and adjustments. (5) GO Bonds Series 2009 refinanced on June 1, 2019 to Series 2019 A. (6) GO Bonds Series 2010 refinanced on November 5, 2019 to Series 2019 B. (7) 2021 Wastewater Revenue Bonds Series A issued June 2021.

City of Gilroy
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-Type Activities
207

Ratio of
General Tax Net General Bonded General
Fiscal Obligation Allocation Assessed Debt to Net Bonded Debt Year Bonds (4) Bonds Total (1) Value (2) Population (3) Assessed Value Per Capita 2016 $ 30,893,489 30,893,489 $ 7,068,226,533 $ 55,170 0.437% 560 2017 30,080,362 30,080,362 7,654,396,884 55,936 0.393% 538 2018 29,247,235 29,247,235 8,128,701,548 55,615 0.360% 526 2019 28,305,209 28,305,209 8,692,971,361 55,928 0.326% 506 2020 26,630,459 26,630,459 9,243,761,986 57,084 0.288% 467 2021 25,639,646 25,639,646 9,807,614,121 59,920 0.261% 428 2022 24,616,950 24,616,950 10,242,720,866 59,520 0.240% 414 2023 23,561,345 23,561,345 10,928,098,242 60,078 0.216% 392 2024 22,471,772 22,471,772 11,543,850,209 61,033 0.195% 368 2025 21,347,138 21,347,138 12,104,569,109 62,205 0.176% 343 Source: (1) State of California, Finance Department.
(2) This is the amount restricted for the COP debt service principal payments.

City of Gilroy
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years

OUTSTANDING GENERAL BONDED DEBT
55 56 56 56
57 60 60 60
61 62

0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

0.300%

0.350%

0.400%

0.450%

0.500%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
50 52
54 56
58 60
62 64
208

2024-25 Assessed Valuation: $12,151,056,109
Total Debt % City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 Applicable (1) Debt 6/30/25 Santa Clara County 1,217,905,000 $ 1.747% 21,276,800 $
Gavilan Joint Community College District 229,425,000 25.290% 58,021,583 Gilroy Unified School District 331,587,495 82.368% 273,121,988 City of Gilroy 100.000% 21,347,138 21,347,138
City of Gilroy Community Facilities District No. 2000-1 3,713,003 100.000% 3,713,003 Santa Clara Valley Water District Benefit Assessment District 24,940,000 1.747% 435,702 Santa Clara Valley Water District Parcel Tax Revenue Bonds 119,365,000 1.747% 2,085,307 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 380,001,520 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Santa Clara County General Fund Obligations $ 1,002,458,930 1.747% $ 17,512,958 Santa Clara County Pension Obligation Bonds 317,654,990 1.747% 5,549,433 Santa Clara County Board of Education Certificates of Participation 12,072,417 1.747% 210,905 Gilroy Unified School District Certificates of Participation 19,470,000 82.368% 16,037,050 City of Gilroy General Fund Obligations (Lease Revenue Bonds) 23,920,103 100.000% 23,920,103 Subscriptions Obligations 1,327,137 100.000% 1,327,137
City of Gilroy Loans Payable 911,010 100.000% 911,010
Santa Clara County Vector Control Certificates of Participation - TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 65,468,596 $ Less: Santa Clara County supported obligations 42,277
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 65,426,319 $ TOTAL DIRECT DEBT $ 47,505,388
TOTAL GROSS OVERLAPPING DEBT $ 397,964,728
TOTAL NET OVERLAPPING DEBT $ 397,922,451
GROSS COMBINED TOTAL DEBT $ 445,470,116 (2)
NET COMBINED TOTAL DEBT $ 445,427,839
(2)    Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Direct Debt ($21,347,138) 0.18%
Total Direct and Overlapping Tax and Assessment Debt 3.13% Total Direct Debt ($45,657,897) 0.39%
Gross Combined Total Debt 3.67%
Net Combined Total Debt 3.67%
Source: MuniServices, LLC / Neumo, California Municipal Statistics, Inc. (1)    The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

City of Gilroy
Schedule of Direct and Overlapping Bonded Debt
June 30, 2025
209

2016 2017 2018 2019 2020
Assessed valuation 7,114,097,533 $ 7,700,974,884 $ 8,175,945,948 $ 8,741,061,361 $ 9,291,636,386 $ Debt Limit Rate (1) 15% 15% 15% 15% 15%
Debt limit 1,067,114,630 1,155,146,233 1,226,391,892 1,311,159,204 1,393,745,458 Total net debt applicable to limit:

General obligation bonds 30,335,000 29,550,000 28,745,000 27,983,538 27,087,578 Legal debt margin 1,036,779,630 $ 1,125,596,233 $ 1,197,646,892 $ 1,283,175,666 $ 1,366,657,880 $ Total debt applicable to the limit
as a percentage of debt limit 2.9% 2.6% 2.4% 2.2% 2.0%
(Continued)
(1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City.

Source: County of Santa Clara, Department of Finance
City of Gilroy
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
210

2021 2022 2023 2024 2025
Assessed valuation 9,807,614,121 $ 10,242,720,866 $ 10,928,098,242 $ 11,543,850,209 $ 12,104,569,109 $ Debt Limit Rate (1) 15% 15% 15% 15% 15%
Debt limit 1,471,142,118 1,536,408,130 1,639,214,736 1,731,577,531 1,815,685,366 Total net debt applicable to limit:

General obligation bonds 25,639,646 24,616,950 23,561,345 22,471,772 21,347,138 Legal debt margin 1,445,502,472 $ 1,511,791,180 $ 1,615,653,391 $ 1,709,105,759 $ 1,794,338,228 $ Total debt applicable to the limit
as a percentage of debt limit 1.8% 1.7% 1.6% 1.3% 1.2%
(End)
(1) Section 1108 of the City of Gilroy Charter limits the general obligation bonds of the City to 15% of total assessed value of real and personal property within the City.

Source: County of Santa Clara, Department of Finance
City of Gilroy
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
Fiscal Year
211

2016 2017 2018 2019 2020
Gross revenues:

Charges for services 11,773,938 $ 12,644,730 $ 12,720,141 $ 12,904,657 $ 12,872,189 $ Investment income (loss) 301,482 284,297 410,172 934,590 828,615 Developer impact fees* 4,452,590 3,098,889 2,483,414 2,234,082 1,608,755 Total gross revenues 16,528,010 16,027,916 15,613,727 16,073,329 15,309,559 Operating expenses:

Operations 7,314,113 7,454,202 7,466,650 8,339,489 8,411,647 Billing 612,551 594,654 618,400 668,982 730,892
Administration 500,398 472,465 558,846 706,101 667,733
Total operating expenses 8,427,062 8,521,321 8,643,896 9,714,572 9,810,272 Net Revenues 8,100,948 7,506,595 6,969,831 6,358,757 5,499,287 Debt
2010 Sewer revenue bonds (net debt service) 2,566,550 $ 2,558,688 $ 2,562,738 $ 2,557,625 $ 2,557,750 $ 2021A Sewer revenue bonds
Total net debt service 2,566,550 $ 2,558,688 $ 2,562,738 $ 2,557,625 $ 2,557,750 $ Debt service coverage (1.20x requirement) 3.16 2.93 2.72 2.49 2.15 *Developer impact fees for sewer is reported in a capital projects fund before FY2025 Fiscal Year
City of Gilroy
Wastewater System - Historical Debt Service Coverage
Last Ten Fiscal Years
212

2021 2022 2023 2024 2025
Gross revenues:

Charges for services 12,702,398 $ 12,912,113 $ 13,037,892 $ 14,229,982 $ 15,234,796 $ Investment income (loss) 51,203 64,441 825,083 3,128,406 2,492,980 Developer impact fees* 1,764,901 3,552,755 1,122,624 2,178,317 1,153,573 Total gross revenues 14,518,502 16,529,309 14,985,599 19,536,705 18,881,349 Operating expenses:

Operations 9,323,262 8,254,822 7,535,006 9,121,834 10,629,942 Billing 678,651 777,901 924,907 1,001,003 1,043,382
Administration 720,726 789,602 775,649 1,215,405 1,282,721 Total operating expenses 10,722,639 9,822,325 9,235,562 11,338,242 12,956,045 Net Revenues 3,795,863 6,706,984 5,750,037 8,198,463 5,925,304 Debt
2010 Sewer revenue bonds (net debt service) 2,510,417 $ 2,561,500 $ 2,501,000 $ - $ - $ 2021A Sewer revenue bonds 1,533,500 2,244,000 2,244,400 Total net debt service 2,510,417 $ 2,561,500 $ 4,034,500 $ 2,244,000 $ 2,244,400 $ Debt service coverage (1.20x requirement) 1.51 2.62 1.43 3.65 2.64 *Developer impact fees for sewer is reported in a capital projects fund before FY2025 Fiscal Year
City of Gilroy
Wastewater System - Historical Debt Service Coverage (Continued) Last Ten Fiscal Years
213

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214

Fiscal
Year
Population
(1)
Net Taxable
Assessed Values
Per Capita
Taxable
Property
Values Personal Income
Per Capita
Income
City
Unemployment
Rate (%) (2)
County
Population (1)
Public
School
Enrollment
(3)
2015-16 55,170 7,068,226,533 $ 128,117 $ 1,648,534,770 $ 29,881 $ 5.7% - - 2016-17 55,936 7,654,396,884 136,842 1,720,759,168 30,763 4.9% - - 2017-18 55,615 8,128,701,548 146,160 1,817,498,200 32,680 3.7% 1,956,598 11,834 2018-19 55,928 8,692,971,361 155,431 1,927,859,413 34,470 2.5% 1,954,282 11,652 2019-20 57,084 9,243,761,986 161,933 2,046,518,484 35,851 13.9% 1,961,969 11,672 2020-21 56,599 9,807,614,121 173,282 2,190,227,917 38,697 8.6% 1,934,171 10,248 2021-22 59,269 10,242,720,866 172,818 2,634,388,512 44,448 2.7% 1,894,783 10,064 2022-23 60,078 10,928,098,242 181,899 3,114,690,441 51,844 3.4% 1,886,079 10,972 2023-24 61,033 11,543,850,209 189,141 3,535,899,249 57,934 3.8% 1,903,198 10,784 2024-25 62,205 12,104,569,109 194,592 3,885,565,655 62,464 4.7% 1,922,259 10,768 Source: Santa Clara County Assessor data, MuniServices, LLC / Neumo Source: City of Gilroy Publication, 2024 Annual Comprehensive Financial Statement Report ( - ) Data unavailable.

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Unemployment and Labor Force Data are provided by the EDD's Labor Market Information Division.

City of Gilroy
Demographic and Economic Statistics
Last Ten Fiscal Years

3.) Student Enrollment reflects the total number of students enrolled in the Gilroy Unified School District. Any other school districts within the City are not accounted for in this statistic.
215

Business Name
Number of
Employees Rank
Percent of
Total
Employment
(%)
Number of
Employees Rank
Percent of
Total
Employment
(%)
Gilroy Unified School District 1,119 1 3.85%
Christopher Ranch LLC 691 2 2.37% 650 1 2.47%
Saint Louise Regional Hospital 678 3 2.33% 460 3 1.75%
Olam International (Formerly ConAgra-Gilroy Foods) (a) 450 4 1.55% 350 5 1.33% Community Solutions 402 5 1.38%
Costco Wholesale 326 6 1.12% 272 6 1.03%
Walmart Supercenter 286 7 0.98% 395 4 1.50%
City of Gilroy 286 8 0.98%
Gavilan College 244 9 0.84% 219 10 0.83%
Gilroy Health Care and Rehabilitation 182 10 0.63%
Gilroy Gardens Theme Park (formerly Bonfante) 499 2 1.90% Monterey Gourmet Foods 270 7 1.03%
Rebekah Childrens Services 240 8 0.91%
United Natural Goods, Inc (UNFI) 230 9 0.87%
Total Top 10 Employers 4,664 16.03% 3,585 13.62%
Total City Labor Force (1) 29,100
Source: MuniServices, LLC / Neumo
Source: City of Gilroy Publication, 2016 Annual Comprehensive Financial Statement Report (1) Total City Labor Force provided by EDD Labor Force Data.

Notes:

Results based on direct correspondence with city’s local businesses. (a) No response received from employer; prior year headcount used.

City of Gilroy
Principal Employers
Last Fiscal Year and Nine Years Ago
2025 2016
216

Department 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Administration 5 5 6 6 7 7 8 8 9 10
City Council and Mayor 7 7 7 7 7 7 7 7 7 7
Community Development 21 18 18 21 23 20 23 21 25 23
Finance 13 11 13 14 14 11 13 12 15 15
Fire 39 35 36 37 37 43 44 40 42 46
Fleet and Facilities 10 10 10 10 10 7 10 8 9 8
Human Resources 4 4 4 4 5 4 4 4 5 5
Information Technology 3 2 3 4 3 4 4 4 6 6
Police 94 87 92 94 96 98 99 90 91 95
Public Works 43 40 42 54 57 48 49 45 44 43
Recreation 12 10 11 11 11 4 4 4 5 4
Utilities* 35
Total 250 230 242 262 270 253 265 243 261 267
(a) Beginning in fiscal year 2013-2014, the amount represents the number of filled positions by departments. Prior to fiscal year 2013-14, the amounts noted represent budgeted positions. *Beginning in Fiscal year 2023-2024 Utilities is no longer part of Public works and is now its own department.

City of Gilroy
Full-Time Equivalent City Employees
By Function / Program
Last Ten Fiscal Years
217

Function 2016 2017 2018 2019 2020
General Government
Number of Business Licenses Issued 2,685 3,166 3,800 3,965 3,160 Total Volunteer Service Hours 34,723 33,855 31,505 28,460 18,465 Total City-Wide Training Hours Provided 2,356 3,112 3,200 2,688 2,892 Total Vehicle Work Orders Generated 2,629 2,478 1,428 1,327 1,514 Total Facilities Work Orders Generated 1,445 1,317 1,428 1,411 1,488 Public Safety
Police
Number of 911 Calls Received 21,044 23,744 23,484 22,235 23,578 Number of Police Calls for Service 62,071 63,887 63,073 64,134 58,354 Number of Investigations Assigned to Detectives 845 913 815 986 1,023 Number of Case Reports Processed 12,621 12,320 12,478 11,075 11,020 Fire
Total Calls for Service 5,007 5,441 5,374 5,555 6,243
Total Fire Calls 223 223 265 282 336
Total Emergency Medical Aid Calls 3,323 3,735 3,707 3,739 4,065 Community Development
Number of Building Inspections Completed 24,500 23,623 17,991 17,450 14,618 Number of Building Permits Processed 2,197 1,903 1,970 2,050 1,300 Number of Fire Code Permits Issued 839 476 1,060 1,230 885 Public Works
712,504 274,479 533,397 1,430,477 1,547,477
Linear Feet of Preventive Cleaning 785,288 707,379 854,304 897,479 849,228 Million Gallons of Wastewater Treated per Day 5.97 7.60 6.16 6.66 6.18 Million Gallons of Municipal Water Produced per Day 5.94 6.46 7.07 6.80 7.20 Million Gallons of Wastewater Flow per Day (COG) 3.59 4.84 3.87 4.13 3.73 Number of Utility Billing Customers 14,300 14,549 14,870 15,133 15,218 Recreation
Number of Registrations Processed 5,856 5,807 4,952 4,737 4,232 Number of Meals Provided to Seniors Annually 22,566 21,351 23,815 25,103 21,979 Source: City of Gilroy, Various City Departments
* Statistic not available
Square Feet of Chip/Cape/Slurry Seal Completed
City of Gilroy
Operating Indicators By Function / Program
Last Ten Fiscal Years
Fiscal Year
218

Function 2021 2022 2023 2024 2025
General Government
Number of Business Licenses Issued 4,319 3,673 3,335 3,511 3,712 Total Volunteer Service Hours 2,521 12,886 17,588 20,187 13,818 Total City-Wide Training Hours Provided 1,038 1,173 1,262 4,020 3,755 Total Vehicle Work Orders Generated 1,904 1,880 1,686 1,349 1,421 Total Facilities Work Orders Generated 1,405 1,416 1,381 1,277 1,356 Public Safety
Police
Number of 911 Calls Received 22,740 24,837 25,536 23,573 21,091 Number of Police Calls for Service 44,016 62,323 65,459 66,106 72,918 Number of Investigations Assigned to Detectives 1,101 971 745 271 209 Number of Case Reports Processed 10,095 9,771 8,205 11,802 11,316 Fire
Total Calls for Service 6,299 7,092 7,117 7,121 6,879
Total Fire Calls 381 435 273 347 334
Total Emergency Medical Aid Calls 4,089 4,866 5,027 5,078 4,743 -
Community Development
Number of Building Inspections Completed 15,652 16,056 15,578 14,078 13,387 Number of Building Permits Processed 1,361 1,784 1,843 2,204 2,267 Number of Fire Code Permits Issued 474 695 475 440 428
Public Works
Square Feet of Chip/Cape/Slurry Seal Completed 1,451,239 3,118,472 3,354,152 2,413,610 2,413,610 Linear Feet of Preventive Cleaning 632,280 692,143 716,194 866,122 890,700 Million Gallons of Wastewater Treated per Day 6.14 6.03 7.00 6.83 6.53 Million Gallons of Municipal Water Produced per Day 7.60 6.74 6.24 4.95 6.57 Million Gallons of Wastewater Flow per Day (COG) 3.49 3.16 3.86 3.33 6.53 Number of Utility Billing Customers 15,311 15,483 15,555 15,668 15,790 Recreation
Number of Registrations Processed 2,380 6,875 9,224 14,789 5,983 Number of Meals Provided to Seniors Annually 22,570 19,525 22,961 28,072 22,613 Source: City of Gilroy, Various City Departments
* Statistic not available
Fiscal Year
City of Gilroy
Operating Indicators By Function / Program (Continued)
Last Ten Fiscal Years
219

2016 2017 2018 2019 2020
General Government
City Buildings 55 55 57 57 57
Public Safety
Police
Police Stations 1 1 1 1 1
Police Vehicles 86 87 83 103 109
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 20 21 20 19 19
Public Works
Park sites 16 16 19 19 20
Centerline Miles of Streets 119 126 151 166 166
Number of Streetlights 4,773 4,794 4,841 4,861 4,885
Miles of Storm Trunk Mains* 31 37 39 40 40
Miles of Sewer Mains 111 151 160 161 163
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 Water Meters in Municipal Service Area 14,669 14,783 14,450 15,133 15,220 Miles of Water Mains 152 204 205 210 205
Number of Fire Hydrants 2,265 2,290 1,948 2,229 2,187
* Note that the increase in "Miles of Storm Trunk Mains" is due to the accurate tracking of data in the Cityworks GIS system.

Source: City of Gilroy, Various City Departments.

Function
City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
Fiscal Year
220

2021 2022 2023 2024 2025
General Government
City Buildings 57 57 57 57 58
Public Safety
Police
Police Stations 1 1 1 1 1
Police Vehicles 109 113 117 122 92
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 20 20 21 21 23
Public Works
Park sites 21 21 21 23 23
Centerline Miles of Streets 166 168 125 127 126
Number of Streetlights 4,295 4,315 4,320 4,322 4,861
Miles of Storm Trunk Mains* 40 131 131 131 141
Miles of Sewer Mains 162 168 168 168 168
Treatment Plant Dry Weather Flow Capacity (MGD) 9 9 9 9 9 Water Meters in Municipal Service Area 15,266 15,595 15,553 15,822 15,897 Miles of Water Mains 219 209 213 219 219
Number of Fire Hydrants 2,293 2,317 2,321 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
Fiscal Year
Function
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
221

City Population Amount
Per
capita Amount
Per
capita Amount
Per
capita Amount
Per
capita Amount
Per
capita
Morgan Hill 46,599 19,054,967 $ 409 12,189,787 $ 262 2,471,202 $ 53 - $ - 216,241 $ 5 Gilroy 19,409,424 62,205 312 20,478,194 329 1,509,597 24 7,014,280 113 800,040 13 Los Altos Hills2 8,527,387 8,476 1,006 - - - - - - 255,405 30 Campbell 43,281 26,637,000 615 16,258,133 376 4,050,000 94 - - 735,200 17 San Jose 979,415 547,588,652 559 331,430,656 338 17,212,205 18 161,886,034 165 66,419,486 68 Milpitas 81,915 51,181,370 625 38,101,357 465 13,470,736 164 - - 501,907 6 Saratoga1 36,882,155 30,486 1,210 1,271,000 42 400,000 13 - - 159,920 5 Sunnyvale 159,673 136,562,806 855 44,176,622 277 20,415,260 128 11,327,278 71 2,003,085 13 Los Altos2 34,410,697 31,255 1,101 3,442,623 110 3,065,493 98 3,517,437 113 474,551 15 Mountain View 86,513 89,769,687 1,038 21,176,755 245 10,564,518 122 11,083,814 128 5,676,597 66 Santa Clara 134,587 95,931,933 713 79,352,441 590 26,992,989 201 - - 21,677,378 161 Los Gatos1 50,566,865 33,355 1,516 8,330,978 250 2,417,630 72 - 2,975,721 - 89 Cupertino1 85,425,468 59,831 1,428 17,694,142 296 8,305,933 139 4,214,212 70 995,990 17 Monte Sereno1 7,514,430 3,501 2,146 6,241 2 - - - - 28,099 8 Palo Alto 67,900 69,401,590 1,022 35,218,990 519 28,970,382 427 20,393,512 300 5,835,235 86 COUNTY AVG. 121,933 85,257,629 $ 699 41,941,861 $ 344 9,323,063 $ 76 14,629,104 $ 120 7,250,324 $ 59 Source: ACFR /City websites
1 Property tax amount includes Santa Clara County Central Fire District FY24-25 2 FY 23-24 Actuals
City of Gilroy
Property Tax, Sales Tax, Transient Occupancy Tax, and Business License Tax Per Capita Santa Clara County Cities
Fiscal Year 2024-2025
Property Tax Sales Tax Transient Occupancy Utility Tax Business License - 500 1,000 1,500 2,000 2,500
Morgan Hill
Gilroy
Los Altos Hills2
Campbell
San Jose
Milpitas
Saratoga1
Sunnyvale
Los Altos2
Mountain View
Santa Clara
Los Gatos1
Cupertino1
Monte Sereno1
Palo Alto
COUNTY AVG.

Property Tax
Sales Tax
Transient
Occupancy
Utility Tax
Business
License
222

6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report
To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (“Government Auditing Standards”), the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Gilroy (the “City”), as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 27, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

To the Honorable Mayor and the Members of the City Council of the City of Gilroy
Gilroy, California

224
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
March 27, 2026

8.3. City of Gilroy

STAFF REPORT
Agenda Item Title: Council Consideration of Placing a Potential Sales Tax Ballot Measure for the November 2026 Election Ballot
Meeting Date: April 6, 2026
From: Matt Morley, City Administrator
Department: Administration
Submitted by: Harjot Sangha, Finance Director
Prepared by: Harjot Sangha, Finance Director
STRATEGIC PLAN GOALS: Develop a Financially Resilient Organization Ensure Neighborhood Equity from City Services
Maintain and Improve City Infrastructure

RECOMMENDATION

1. Council discussion and direction on whether to pursue the placement of a sales tax ballot measure before the Gilroy community for the 2026 General Election.

2. If proceeding with placement, then determine whether to pursue it as general tax or special sales tax.

EXECUTIVE SUMMARY
The City of Gilroy continues to face increasing fiscal pressure driven by rising service demands, escalating costs, and longstanding infrastructure and public safety needs. In 2024, the City Council placed a dedicated public safety sales tax measure before voters as a special tax, requiring two-thirds voter approval, which received encouraging results; however, it did not obtain the required threshold. While that effort focused specifically on police and fire services, the City’s current financial environment reflects broader and more complex needs that extend beyond public safety alone.

8.3. Public safety remains a critical priority, such as staffing for the Santa Teresa Fire Station; however, the City is also experiencing increasing cost pressures and needs in areas such as public works, traffic and pedestrian safety, and infrastructure maintenance. These competing demands continue to strain the City’s General Fund, which is the primary source of discretionary funding for most municipal services.

Given these conditions, staff is bringing forward for discussion and direction from the City Council on whether to place a ballot measure before the community at the November 2026 general election. If so, whether to pursue a more flexible funding approach through a general transaction and use tax, which would require majority voter approval and allow revenues to be used across a wider range of City services. While a general tax does not legally restrict how funds are spent, staff proposes that the Council establish a clear spending framework and accountability measures to ensure alignment with community priorities.

BACKGROUND
As previously presented to the City Council, including in the April 8, 2024, staff report, the City has not fully recovered staffing levels following the 2009 recession and subsequent fiscal impacts of the COVID-19 pandemic. At the same time, service expectations and operational demands have continued to increase. Public safety services alone account for approximately 64% of General Fund expenditures, reflecting both their importance and the financial pressure they place on limited resources.

Prior analyses identified significant staffing and infrastructure needs within both the Police and Fire Departments, including additional sworn officers, dispatch personnel, and fire personnel required to meet service demands and adequately staff existing and future fire stations. These needs remain valid today and continue to represent an unfunded obligation.

However, since 2024, the City’s fiscal challenges have broadened. Inflationary pressures, increased service costs (for example, services provided by the County), and ongoing infrastructure needs—particularly related to streets, parks, traffic safety, and other public facilities—have further constrained the City’s ability to maintain current service levels, let alone expand them.

ANALYSIS
The core policy question before the City Council is whether to pursue a local transactions and use tax (local sales tax) measure and, if so, how best to structure it to meet the City’s current and future needs.

Current and Future Needs

8.3. Fire
Because the fire service operates 24 hours a day, every day of the year, staffing a single position around the clock requires more than one person. After accounting for shifts, time off, training, and vacancies, it takes approximately 3.76 firefighters to cover one position continuously. Since each fire engine is staffed with three personnel—a captain, an engineer, and a firefighter/paramedic—it takes about 11 to 12 firefighters to fully staff one fire company year-round.

Today, the City operates three fire companies. Expanding service to a fourth company at the Santa Teresa station would increase staffing needs to at least 45 personnel. This expansion would improve response times, enhance coverage in growing areas of the city, and reduce service disruptions, such as temporary station closures and reliance on overtime. Adding a fifth company (a truck/aerial unit at Chestnut station) would require approximately 57 personnel, including relief. This additional unit would expand the Department’s capabilities for more complex emergencies, including multi-story structure fires, commercial incidents, rescue operations, and specialized ventilation needs, while also improving overall service levels and insurance ratings. As the Department grows from three to four, and eventually five companies, it is also recommended to add a Deputy Fire Chief to maintain effective management, oversight, and coordination of operations, training, and long-term planning.

The staffing model demonstrates that expanding fire service in Gilroy—particularly with a fourth station—requires additional personnel to ensure safe, reliable, and responsive emergency services for the community.

Position Currently
Authorized
Five Fire
Company
Deployment
Staffing
Required
Required
Relief for
Five Fire
Companies
Total
Positions
Needed
Additional
Positions
Needed
Fire
Captain
12 15 0 15 3
Engineer 9 15 0 15 6
Firefighter/
Paramedic
19 15 12 27 8
Total
Positions
40 45 12 57 17
Estimated Cost = $3.6 million/year
Police
The Police Department continues to experience staffing gaps relative to both historical service

8.3. levels and updated workload expectations. As identified in the April 2024 staffing analysis, the Department requires additional sworn, field support, and specialized support personnel to meet current service demands.

The Department remains below recommended staffing levels by multiple positions across classifications, including patrol officers, communications staff, and records personnel. These gaps impact the Department’s ability to respond proactively to community needs, maintain reasonable workloads, and adapt to increasing service demands driven by population growth, regulatory requirements, and evolving public safety expectations.

While the City has managed these constraints through operational adjustments, continued reliance on existing staffing levels is not sustainable without impacting service delivery, response times, or officer workload and retention.

Position Type Recommended
Staffing Level
FY26
Authorized
Staffing Level
Additional
Positions
Needed
Sergeant 12 11 1
Corporal 9 9 0
Police Officer 51 45 6
Community
Service Officer
(CSO)
5 4 1
Public Safety
Communicators
20 14 6
Records 9 8 1
Estimated Cost = $2.5 million/year
Public Works
In addition to public safety staffing needs, there is also a critical need for capital investment in public works infrastructure that directly supports the safety of residents on our streets and in our neighborhoods. This includes improvements such as safer intersections, enhanced crosswalks, traffic calming measures, and Safe Routes to School enhancements that protect students and families traveling to and from school. Investments in sidewalk repairs, bike lane improvements, street lighting, and signal upgrades all play a vital role in reducing accidents and improving overall safety for pedestrians, cyclists, and drivers. While these needs are well understood, limited funding has constrained the City’s ability to implement these safetyfocused projects at the necessary pace, resulting in a backlog of improvements essential to protecting the community.

8.3. Other Needs
The aforementioned analysis has outlined the needs of three core Departments that rely on discretionary funding to deliver services and projects. Other Departments across the organization are no exception to the growing demands and have unmet needs to provide optimal levels of service.

In addition to identified staffing and operational needs, the City faces a growing but not yet fully quantified liability related to deferred facility maintenance. Many of the City’s public assets— including streets, parks, recreation facilities, and the Civic Center campus—are aging and require ongoing investment to remain safe, functional, and aligned with community expectations. While routine maintenance continues, limited funding has constrained the City’s ability to proactively address lifecycle replacements, system upgrades, and major repairs. As a result, deferred maintenance needs have accumulated over time and are expected to increase as facilities continue to age. Council has recently taken action to establish a Capital Infrastructure Reserve (CIR) and a related funding policy to begin addressing capital infrastructure needs. It is important to note that these anticipated expenses constrain the City’s ability to incur additional operating costs supporting public safety.

The City Council has made economic development a clear priority by establishing a dedicated Economic Development Department and hiring an Economic Development Director to advance business attraction, retention, and long-term revenue growth. These efforts are foundational and expected to yield meaningful fiscal and community benefits over time; however, by nature, economic development is a long-term strategy that requires sustained investment and patience before it can begin generating significant new revenues. In contrast, pursuing a quarter-cent transactions and use tax would provide an immediate and locally controlled funding source, enabling the City to address pressing service delivery needs in the near term while continuing to build a stronger economic base for the future.

The table below presents the City’s current sales tax forecast through FY32, including the projected year-over-year percent change and corresponding dollar change. As shown, the base forecast reflects relatively modest growth over time, generally aligned with inflationary (CPI-level) increases rather than significant expansion in the local economy.

To illustrate the potential impact of economic development efforts, staff applied a simplified, hypothetical assumption of incremental growth above the baseline, beginning at 1% in FY28 and gradually increasing to 5% by FY32. This scenario reflects a reasonable “long game” outcome where sustained economic development efforts begin to yield measurable increases in sales tax revenue over time.

8.3. Fiscal Year FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 Base Sales Tax Forecast $ 20,478,000 $ 20,062,000 $ 20,248,000 $ 20,580,000 $ 20,873,000 $ 21,121,000 $ 21,319,000 $ 21,491,000 % Change (Base) - -2.00% 0.90% 1.60% 1.40% 1.20% 0.90% 0.80% $ Change (Base) - (416,000) 186,000 332,000 293,000 248,000 198,000 172,000 Added Growth from Econ Dev. (%) - - - 1.00% 2.00% 3.00% 4.00% 5.00% Added Revenue from Econ Dev. ($) - - - 205,800 417,460 633,630 852,760 1,074,550 Total w/ Econ Dev Impact $ 20,478,000 $ 19,646,000 $ 20,434,000 $ 21,117,800 $ 21,583,460 $ 22,002,630 $ 22,369,760 $ 22,737,550 As can be seen, even under this optimistic growth scenario, it would take approximately 4–5 years to generate meaningful incremental revenue, and by FY32, the additional annual revenue—while helpful—would still be insufficient on its own to fully fund major service expansions such as staffing a new fire station. This analysis underscores that while economic development is a critical long-term strategy for strengthening the City’s revenue base, it does not provide an immediate or sufficient solution to address the City’s current and near-term service and staffing needs.

In summary, the City’s identified service, staffing, and infrastructure needs—across public safety, public works, and facilities—clearly exceed the resources currently available within the General Fund. These are not new challenges, but they have become more pronounced over time and are increasingly difficult to address through existing funding alone. Given this reality, it is prudent for the City Council and the community to consider whether placing a transactionsand-use tax measure on the ballot is an appropriate step toward addressing some core priorities. Doing so would allow voters the opportunity to weigh in on a locally controlled funding solution to sustain and enhance the services and infrastructure that are fundamental to the community’s safety, quality of life, and long-term stability.

Potential Local Sales Tax Measure
A transaction and use tax, commonly referred to as a local sales tax, is paid on taxable goods purchased within the City and is applied to both residents and non-residents. Because of Gilroy’s regional retail draw, a significant portion of this revenue is generated by individuals who do not reside in the City, which helps distribute the financial burden more broadly. Based on current estimates, a 0.25% tax would generate approximately $4.5 million annually.

Under State law, the City’s ability to increase its local sales tax rate is limited, and a 0.25% increase represents the maximum available capacity under the current cap.

In considering a ballot measure, the Council must determine whether to structure the tax as a general tax or a special tax. A special tax would dedicate the revenue to specific purposes, such as public safety, but would require approval by two-thirds of voters. In contrast, a general tax requires only a simple majority vote but does not allow for legally binding restrictions on how the funds are used.

Given the City’s expanded fiscal needs beyond public safety, a general tax structure may provide a more practical and flexible approach. It would allow the City to respond to changing

8.3. conditions over time while increasing the likelihood of voter approval. At the same time, staff recognize the importance of maintaining public trust and ensuring that any new revenue is used in a manner consistent with community expectations.

To address this, staff would recommend that the City Council adopt a spending framework that prioritizes key service areas, which can be adjusted based on future needs. Under this approach, new revenues could be directed first toward fire services to address the staffing to cover the Santa Teresa Station. The second priority could be police services, including staffing, support functions, and community safety initiatives. The third priority would be public works infrastructure, with a focus on traffic safety improvements, pedestrian safety enhancements, and maintenance of streets and public facilities. The funding could be allocated incrementally in that order of priority, or in any combination thereof.

Potential Service Delivery Enhancement with $4.5 million/year in New Local Sales Tax Service Enhancement Amount
Fire:

Minimum 45 staffing to cover the Santa Teresa Station
$1,300,000.00
Police:

One Sergeant, six Police Officers, one CSO, six Safety
Communicators, and one Records
2,500,000.00
Public Works:

Traffic and bike/Ped. Safety infrastructure improvements 700,000.00
Total $4,500,000.00
This table identifies one potential use of funds for additional sales tax revenue. Of note, this revenue continues to leave a gap in funding, notably for a fifth fire station. Staff would anticipate other efforts, including development, both through construction and business development, to contribute to future needs.

Although this framework of utilizing funds for public safety alone would not be legally binding under a general tax structure, it would provide clear policy direction and accountability for the allocation of funds.

To further reinforce transparency and accountability, staff recommend establishing a community oversight committee composed of Gilroy residents. This committee would review the collection and expenditure of tax revenues and provide annual public reports to the City Council. In addition, independent annual audits could be conducted to ensure that funds are used in accordance with Council-adopted policies or an established framework.

Other Considerations

8.3. Staff anticipates a November ballot with a number of competing initiatives. Local funding for schools (Gavilan and Gilroy Unified) would likely be among them. In the realm of sales tax, the measures would likely be regional. This could create resistance among likely voters.

Support from community partners highlighting keeping local dollars local could be an effective way of driving interest. In addition, community focus on safety is high, pointing to an opportunity that may be difficult to find in the future.

It is also inciteful to note that sales tax in Gilroy is paid by patrons whose origin is outside the city limits due to our substantial retail infrastructure. This would shift some of the costs of city resources to these users.

At times, sales tax measures contain a sunset date. The sunset date would force the reconsideration of the tax a point in time in the future. This can be a significant and effective control measure to ensure funds are spent as expected. It is important to note, however, that the funds would fill an ongoing operating need and a sunset date could risk creating service level reductions in the future should the funding end.

With respect to polling, given the environment, timing, and past election results, staff would not recommend conducting polling or a community survey and instead pursue this as a true grassroots effort, similar to the 2024 initiative.

ALTERNATIVES
The Council could direct staff not to proceed with the local sales tax measure for the November 2026 General election.

FISCAL IMPACT/FUNDING SOURCE
There is no direct fiscal impact of receiving this report. However, the following fiscal impacts have been identified in anticipation of the Council's potential decision-making. • $150,000 to $200,000 – Ballot Measure – This cost estimate is for the County of Santa Clara Registrar of Voters to place the ballot measure on the November 2026 election.
• Other legal and administrative costs for drafting the resolutions and ballot materials.

PUBLIC OUTREACH
Should Council ultimately decide to put this initiative before the Gilroy community, additional outreach will be conducted to provide information regarding the process and the measure.

8.3. NEXT STEPS
If the Council directs staff to proceed with placing a local sales tax ballot measure, staff will take the necessary steps to complete the requirements and return to the Council for formal approval by June 2026.

Attachments: None