HomeMy WebLinkAboutResolution No. 2026-47 | ST Firestation Budget Amendment and Interfund Loan | Adopted 06/29/2026RESOLUTION NO. 2026-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING THE BUDGET FOR THE CITY OF
GILROY FOR 2025-2026 AND 2026-2027 FISCAL YEARS
AND AUTHORIZING AN INTERFUND LOAN FROM THE
GENERAL FUND AND THE FACILITIES FUND
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2025-2026 (FY26) and 2026-2027 (FY27), and the
City Council carefully examined, considered, and adopted the same on June 2, 2025; and
WHEREAS, City Staff has prepared and submitted to the City Council a proposed
amendment to the budget for FY26 and FY27 for the City of Gilroy in the staff report dated June
29, 2026, to award the Design-Build Construction Services of the Santa Teresa Fire Station to
Zumwalt Construction, Inc; and
WHEREAS, the City Council has determined that construction of the Santa Teresa Fire
Station is a necessary capital improvement to improve fire service coverage and response times
and has approved award of a design-build agreement for the project; and
WHEREAS, the Santa Teresa Fire Station project is included in the City’s Capital
Improvement Program as CIP Project No. 800290 in the Capital Projects Fund, and the total project
cost exceeds the amount currently appropriated in FY26, thereby requiring a budget amendment
and temporary cashflow financing to allow the project to proceed on schedule; and
WHEREAS, under the Fourth Operating Memorandum to the Development Agreement –
Glen Loma Ranch, dated October 21, 2024, Glen Loma Ranch (“GLR”) is obligated to provide a
total of $7,200,000 toward the City’s fire station obligations, including a payment of $3,610,757
to the City upon recordation of a final map relative to Tentative Map 24-03; and
WHEREAS, the City has already received and/or secured other components of GLR’s
fire station funding obligation, including conveyance of the fire station parcel and earlier funding
obligation steps, and the remaining $3,610,757 payment is anticipated to be received upon the
occurrence of the applicable subdivision map milestone set forth in the Fourth Operating
Memorandum; and
WHEREAS, in order to proceed with the Santa Teresa Fire Station project prior to receipt
of the remaining GLR funding, the City Council finds it necessary and in the best interests of the
City to authorize a temporary interfund loan to the Capital Projects Fund f rom available fund
balances in the Facilities Fund and the General Fund, solely as interim financing for project
cashflow needs; and
WHEREAS, City staff has determined that the Facilities Fund and the General Fund have
sufficient available fund balance to support a temporary interfund loan for this purpose, and that
Docusign Envelope ID: 94867A98-CE48-8179-81D5-6367721C5096
Resolution No. 2026-47
Budget Amendment Resolution - FY26 STR Fire Station Award
City Council Special Meeting | June 29, 2026
Page 2 of 3
such loan is expected to be repaid from GLR fire station funding proceeds when received by the
City pursuant to the Fourth Operating Memorandum; and
WHEREAS, the City Council desires to authorize a temporary interfund loan to the
Capital Projects Fund in the total amount of $3,610,757, consisting of $1,500,000 from the
Facilities Fund and $2,110,757 from the General Fund, to be repaid from future GLR fire station
funding receipts or other legally available project revenues upon receipt thereof.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of City of Gilroy
hereby increases the expenditure appropriations for FY26 in Capital Projects Fund by
$11,942,555, decreases the expenditure appropriations for FY27 in Capital Projects Fund by
$11,500,000, authorizes the transfer of $37,024 from Facilities Fund to the Capital Projects Fund,
and authorizes a temporary interfund loan to the Capital Projects Fund for the Santa Teresa Fire
Station project in the total amount of $3,610,757 comprised of $1,500,000 from the Facilities
Fund and $2,110,757 from the General Fund.
PASSED AND ADOPTED this 29th day of June 2026 by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
APPROVED:
Greg Bozzo, Mayor
ATTEST:
_______________________
Kim Mancera, City Clerk
Docusign Envelope ID: 94867A98-CE48-8179-81D5-6367721C5096
Resolution No. 2026-47
Budget Amendment Resolution - FY26 STR Fire Station Award
City Council Special Meeting | June 29, 2026
Page 3 of 3
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-47 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 Special Meeting of said held on Council
held Monday, June 29, 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 Tuesday, June 30, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
Docusign Envelope ID: 94867A98-CE48-8179-81D5-6367721C5096