HomeMy WebLinkAboutResolution No. 2026-06 | CIR Funding Policy Resolution | Adopted 01/26/2026RESOLUTION NO. 2026-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY ESTABLISHING A CAPITAL
INFRASTRUCTURE RESERVE (CIR) FUND AND
ADOPTING A RELATED RESERVE FUNDING POLICY
WHEREAS, the City of Gilroy is responsible for maintaining and improving public
infrastructure that supports community livability, economic vitality, and quality of life, including
parks, streets, landscaping, and other community-serving capital assets; and
WHEREAS, long-term infrastructure needs require a sustainable and disciplined funding
approach to address capital renewal, enhancement, and planning efforts; and
WHEREAS, the City Council desires to establish a dedicated Capital Infrastructure
Reserve Fund to support capital infrastructure and related planning efforts, while maintaining
flexibility to respond to changing fiscal conditions; and
WHEREAS, the City Council desires to approve a budget amendment as a one-time seed
funding transfer of $310,000 from the Fiscal Year 2024-25 year-end General Fund (100) budgetary
savings to establish the CIR Fund; and
WHEREAS, the City Council has existing Pension and Other Post-Employment Benefit
(OPEB) funding policies that utilize annual year-end General Fund budgetary savings; and
WHEREAS, the City Council further desires to adopt a formal policy governing the
funding, administration, and use of the Capital Infrastructure Reserve Fund; and
WHEREAS, the reasons supporting this Resolution are set forth in detail in that certain
City Council Staff Report submitted for City Council consideration at its meeting of January 26,
2026, submitted to the City Council by the City Administrator (the “Staff Report”), the contents
of which Staff Report are incorporated herein by this reference; and
WHEREAS, the City Council determines that adoption of this Resolution is in the public
interest.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy
does hereby:
SECTION 1.
The City Council hereby establishes a Capital Infrastructure Reserve (CIR) Fund as a
separate reserve fund of the City, to be maintained and accounted for in accordance
with generally accepted accounting principles and the City’s adopted financial
policies.
SECTION 2.
The City Council approves a one-time Budget Amendment funding transfer of
$310,000 from the General Fund (100) to the CIR Fund in Fiscal Year 2025-26.
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Resolution No. 2026-06
CIR Funding Policy Resolution
City Council Regular Meeting | January 26, 2026
Page 2 of 5
SECTION 3.
The City Council hereby adopts the Capital Infrastructure Reserve Funding Policy,
attached hereto as Exhibit A and incorporated herein by reference.
SECTION 4.
The City Council authorizes future transfers to the Capital Infrastructure Reserve
Fund of up to twenty-five percent (25%) of year-end General Fund budgetary savings,
subject to City Council approval and in accordance with the adopted policy.
SECTION 5.
The Finance Director is authorized and directed to take all actions necessary to
implement this Resolution, including establishing appropriate accounting
mechanisms, recording approved transfers, and reporting on the CIR Fund as part of
the City’s annual budget and financial reporting processes.
SECTION 6.
This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Gilroy at
its meeting held on this 26th day of January 2026 by the following vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON,
RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: MARQUES
APPROVED:
Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, City Clerk
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Resolution No. 2026-06
CIR Funding Policy Resolution
City Council Regular Meeting | January 26, 2026
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CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-06 is an original resolution, or true and correct copy of a City Resolution, duly
adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held Monday,
January 26, 2026 with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the
City of Gilroy this Wednesday, January 28, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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Resolution No. 2026-06
CIR Funding Policy Resolution
City Council Regular Meeting | January 26, 2026
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EXHIBIT A
CAPITAL INFRASTRUCTURE RESERVE (CIR) FUND POLICY
1. Purpose
The purpose of the Capital Infrastructure Reserve (CIR) Fund is to establish a dedicated
funding mechanism to support the long-term planning, renewal, enhancement, and
development of the City’s capital infrastructure. The CIR Fund is intended to provide a
flexible, fiscally prudent tool to address infrastructure needs that may not be fully funded
through existing capital funding sources, with particular emphasis on community-serving
assets such as parks, streetscapes, and beautification improvements.
2. Fund Established
The City Council hereby establishes a Capital Infrastructure Reserve (CIR) Fund as a separate
reserve fund to be maintained in accordance with generally accepted accounting principles
(GAAP) and the City’s adopted financial policies.
3. Initial Fund
Upon adoption of this policy, the CIR Fund shall receive a one-time seed funding transfer of
$310,000 from the General Fund (100).
4. Ongoing Funding
• Source of Funds
o The primary source of funding for the CIR Fund will be through transfers from
year-end budgetary savings in the General Fund expenditures.
o Nothing in this policy shall preclude the City Council from authorizing
additional discretionary payments at any time and in any amount to further
achieve the intended purpose.
• Annual Contribution Limits
o Annual contributions to the CIR Fund shall be up to 25% of year-end General
Fund budgetary savings, subject to City Council approval as part of the annual
year-end reporting or other Council-approved action.
o The annual year-end budgetary savings determination and related transfer
for the CIR Fund are to be reviewed and made in conjunction with the
Council’s existing Pension and the OPEB Funding Policy transfers.
o The General Fund Reserve Policy of 30% must be met first in the fiscal
year when the annual contribution transfers are considered.
• Council Discretion
o The City Council retains full discretion to increase, decrease, defer, or
eliminate annual contributions based on fiscal conditions, operational
needs, or competing priorities.
5. Eligible Uses
CIR Fund resources may be used for qualified capital infrastructure expenditures, including
but not limited to the following categories:
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Resolution No. 2026-06
CIR Funding Policy Resolution
City Council Regular Meeting | January 26, 2026
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• Capital Infrastructure Projects
o Construction, rehabilitation, or replacement of City-owned public
infrastructure assets.
• Beautification and Community Enhancement Projects
o Landscaping improvements
o Streetscape enhancements
o Gateway features
o Public realm and aesthetic improvements
• Parks and Recreation Infrastructure
o Park improvements, renovations, and expansions
o Trails, recreational facilities, and related park infrastructure
• Planning and Studies
o Infrastructure master plans
o Capital improvement plans
o Feasibility studies, condition assessments, and design studies directly related
to capital infrastructure or beautification projects
• Leverage for External Funding
o Local match requirements for grants or partnerships related to eligible capital
infrastructure projects, subject to City Council approval.
6. Ineligible Uses
CIR Fund resources shall not be used for:
• Ongoing operating or maintenance costs
• Personnel salaries or routine departmental expenses
• Programs or services not directly related to capital infrastructure or qualifying studies
7. Appropriations
All appropriations from the CIR Fund shall be approved by the City Council through the
annual budget, Capital Improvement Program, or a separate Council action.
8. Policy Review
This policy shall be reviewed periodically by the City Council as part of the City’s financial
policy review process and may be amended or repealed at any time by Council action.
9. Effective
This policy shall become effective upon adoption by the City Council.
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