HomeMy WebLinkAbout2021-03-01 City Council Regular Meeting Agenda Packet
February 24, 2021 2:14 PM City Council Regular Meeting Agenda Page1 MAYOR
Marie Blankley
COUNCIL MEMBERS
Rebeca Armendariz
Dion Bracco
Zach Hilton
Peter Leroe-Muñoz
Carol Marques
Fred Tovar
CITY COUNCIL
AGENDA
CITY OF GILROY
CITY COUNCIL CHAMBERS, CITY HALL
7351 ROSANNA STREET
GILROY, CA 95020
REGULAR MEETING 6:00 P.M.
MONDAY, MARCH 1, 2021
CITY COUNCIL MEETING MATERIAL IS AVAILABLE ON THE CITY WEBSITE www.cityofgilroy.org
VIEW THE MEETING LIVE ON THE CITY WEBSITE www.cityofgilroy.org.
THE MARCH 1, 2021 MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS
OF THE GOVERNOR’S EXECUTIVE ORDER N-29-20
In order to minimize the spread of the COVID 19 virus the City Council is conducting
this meeting by web conference and will be offering alternative options for public
participation. You are encouraged to watch the City Council meeting live on the City of
Gilroy’s website at www.cityofgilroy.org or on Cable Channel 17. To view from the
website, select the City Council Meetings section on the home page.
PUBLIC COMMENTS WILL BE TAKEN ON AGENDA ITEMS BEFORE ACTION IS TAKEN BY THE
CITY COUNCIL. DURING THE MEETING: TO PROVIDE VERBAL PUBLIC COMMENTS ON AN
AGENDA ITEM DURING THIS MEETING, LOG INTO THE ZOOM MEETING AND ENTER THE
PASSCODE, OR CALL THE PHONE NUMBER LIST ED HERE
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Mayor announces the item which you wish to speak on, press
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time limit for all other speakers for the particular agenda item.
COMMENTS MAY ALSO BE EMAILED TO THE CITY CLERK’s OFFICE BY 6:00 P.M. PRIOR TO THE
MEETING START AT suzanne.guzzetta@cityofgilroy.org, OR MAILED TO: GILROY CITY CLERK,
7351 ROSANNA STREET, GILROY, CA. 95020, TO BE DISTRIBUTED TO THE COUNCIL MEMBERS
AND BE INCORPORATED INTO THE RECORD.
In compliance with the Americans with Disabilities Act, and Governors Order N -29-20, the City will
make reasonable arrangements to ensure accessibility to this meeting. If you need special
assistance to participate in this meeting, please contact the City Clerk a minimum of 2 hours prior
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If you challenge any planning or land use decision made at this meeting in court, you may be
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meeting, or in written correspondence delivered to the City Council at, or prior to, the public
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City Council Regular Meeting Agenda
03/1/2021 Page2 hearing. Please take notice that the time within which to seek judicial review of any final
administrative determination reached at this meeting is governed by Section 1094.6 of the
California Code of Civil Procedure.
A Closed Session may be called during this meeting pursuant to Government Code Section
54956.9 (d)(2) if a point has been reached where, in the opinion of the legislative body of the City
on the advice of its legal counsel, based on existing facts and circumstances, there is a
significant exposure to litigation against the City.
Materials related to an item on this agenda submitted to the City Council after distribution of the
agenda packet are available with the agenda packet on the City website at www.cityofgilroy.org
subject to Staff’s ability to post the documents before the meeting.
The City Council meets regularly on the f irst and third Monday of each month, at 6:00 p.m. If a
holiday, the meeting will be rescheduled to the following Monday, with the exception of the single
meeting in July which lands on the first day of the month not a holiday, Friday, Saturday or
Sunday.
KNOW YOUR RIGHTS UNDER THE GILROY OPEN GOVERNMENT ORDINANCE
Government's duty is to serve the public, reaching its decisions in full view of the public.
Commissions, task forces, councils and other agencies of the City exist to conduct the
people's business. This ordinance assures that deliberations are conducted before the
people and that City operations are open to the people's review.
FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN
GOVERNMENT ORDINANCE, TO RECEIVE A FREE COPY OF THE ORDINANCE
OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE OPEN
GOVERNMENT COMMISSION STAFF AT (408) 846-0204 or
shawna.freels@cityofgilroy.org
I. OPENING
A. Call to Order
1. Pledge of Allegiance
2. Invocation
3. City Clerk's Report on Posting the Agenda
4. Roll Call
B. Orders of the Day
C. Employee Introductions
II. CEREMONIAL ITEMS
A. Proclamations, Awards, and Presentations
1. Proclamation Naming the Month of March Red Cross Month
2. Recognize Corporal Robert Basuino, Detective Eric Cryar and Detective
Hugo Del Moral as Recipients of the State of California Governor's Public
Safety Officer Medal of Valor for an Act of Heroism Demonstrated at the
Gilroy Garlic Festival on July 28, 2019
III. PRESENTATIONS TO THE COUNCIL
City Council Regular Meeting Agenda
03/1/2021 Page3 PUBLIC COMMENT BY MEMBERS OF THE PUBLIC ON ITEMS NOT ON THE
AGENDA BUT WITHIN THE SUBJECT MATTER JURISDICTION OF THE CITY
COUNCIL PUBLIC COMMENTS MAY BE SUBMITTED BY EMAIL TO:
shawna.freels@cityofgilroy.org, (This portion of the meeting is reserved for persons desiring to
address the Council on matters not on this agenda. The law does not permit Council action or
extended discussion of any item not on the agenda except under special circumstances. If Council
action is requested, the Council may place the matter on a future agenda. Written material provided
by public members for Council agenda item “public comment by Members of the Public on items not
on the agenda” will be limited to 10 pages in hard copy. An unlimited amount of material may be
provided electronically.)
City Council Regular Meeting Agenda
03/1/2021 Page4 IV. REPORTS OF COUNCIL MEMBERS
Council Member Bracco – Gilroy Sister Cities Association (alternate), Santa Clara Co.
Library JPA, SCVWD Joint Council-SCRWA-Board Water Resources Committee, South
County Regional Wastewater Authority Board, South County Youth Task Force Policy
Team, Street Naming Committee, URM Task Force Sub-committee
Council Member Armendariz – ABAG (Alternate), CalTrain Policy Group, Gilroy
Downtown Business Association Board (alternate), Historic Heritage Committee, Santa
Clara Valley Habitat Agency Implementation Board, Silicon Valley Clean Energy
Authority JPA Board (Alternate), Street Naming Committee, VTA Committee for Transit
Accessibility (Alternate)
Council Member Marques - Gilroy Downtown Business Association Board, Gilroy
Gardens Board of Directors, Historic Heritage Committee (Alternate), Santa Clara
Valley Habitat Agency Governing Board (alternate), Santa Clara Valley Habitat Agency
Implementation Board (alternate), South County Regional Wastewater Authority
(Alternate), URM Task Force Sub-Committee
Council Member Hilton – Gilroy Economic Development Partnership, Silicon Valley
Clean Energy Authority JPA Board, South County United for Health, V isit Gilroy
California Welcome Center Board
Council Member Tovar – Economic Development Corporation Board, Recycling and
Waste Reduction Commission, Santa Clara Co. Expressway Plan 2040 Policy Advisory
Board, Recycling and Waste Reduction Commission, Santa Clara Co. Library JPA
(alternate), SCVWD Water Commission (alternate), South County Regional Wastewater
Authority Board, Street Naming Committee, VTA Committee for Transit Accessibility
Council Member Leroe-Muñoz - ABAG, CalTrain Policy Group (alternate), Cities
Association of Santa Clara County Board of Directors (alternate), Economic
Development Corporation Board, Gilroy Youth Task Force, SCVWD Water Commission,
Silicon Valley Regional Interoperability Authority Board, South County Youth Task Force
Policy Team (alternate), VTA Mobility Partnership, VTA South County City Group, VTA
Policy Advisory Committee
Mayor Blankley - Cities Association of Santa Clara Co. Board of Directors, Gilroy
Economic Development Partnership, Gilroy Sister Cities Association, Gilroy Youth Task
Force (alternate), Santa Clara Valley Habitat Agency Governing Board, SCVWD Joint
Council-SCRWA-Board Water Resources Committee, South County Regional
Wastewater Authority Board, VTA Board of Directors Alternate, VTA Mobility
Partnership, VTA Policy Advisory Committee, VTA South County City Group
V. FUTURE COUNCIL INITIATED AGENDA ITEMS
VI. CONSENT CALENDAR (ROLL CALL VOTE)
All matters listed under the Consent Calendar are considered by the City Council to be routine
and will be enacted by one motion. There will be no separate discussion of these items unless a
request is made by a member of the City Council or a member of the public. Any person desiring
to speak on any item on the consent calendar should ask to have that item removed fro m the
consent calendar prior to the time the Council votes to approve. If removed, the item will be
discussed in the order in which it appears.
City Council Regular Meeting Agenda
03/1/2021 Page5 A. Resolution in Support of AB 271 (Rivas) Allowing for Valley Water to Utilize
a "Best Value" Procurement Method for the Anderson Dam Seismic Retrofit
Project
B. Claim of Colleen Loebs (The City Administrator recommends a “yes” vote
under the Consent Calendar shall constitute the denial of the claim)
C. Proclamation Naming the Month of March Youth Arts Month
VII. BIDS AND PROPOSALS
VIII. PUBLIC HEARINGS
IX. UNFINISHED BUSINESS
A. Adoption of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19 of the Gilroy City Code Entitled "Smoking
Prohibited" Modifying Sections 19B.2 (9) Pertaining to Parks (introduced
2/22/2021 with a 6-0-1 vote, Council Member Tovar Absent)
1. Staff Report: Adam Henig, Recreation Manager
2. Public Comment
3. Possible Action:
Adopt an ordinance of the City Council of the City of Gilroy amending Chapter 19
of the Gilroy City Code entitled "Smoking Prohibited" Modifying Sections 19B.2
(9) Pertaining to Parks.
X. INTRODUCTION OF NEW BUSINESS
A. Acceptance of the Fiscal Year 2020 Audit and Comprehensive Annual
Financial Report and Appropriations Limit for the Reporting Period of July
1, 2019 to June 30, 2020
1. Staff Report: Cindy Murphy, Interim Finance Director
2. Public Comment
3. Possible Action:
Accept the report.
B. Consent to the Appointment of Harjot Sangha as Finance Director
1. Staff Report: LeeAnn McPhillips, Human Resources Director/Risk Manager
2. Public Comment
3. Possible Action:
Consent to the City Administrator’s recommendation to appoint Harjot Sangha to
the Department Head position of Finance Director.
XI. CITY ADMINISTRATOR'S REPORTS
A. Standing Report on Operational Impacts and City/Community Efforts
Related to the COVID-19 Pandemic
City Council Regular Meeting Agenda
03/1/2021 Page6 1. Staff Report: Jimmy Forbis, City Administrator
2. Public Comment
3. Possible Action:
Receive report.
XII. CITY ATTORNEY'S REPORTS
XIII. CLOSED SESSION
ADJOURNMENT
MEETING DATES
MARCH 2021
1* Regular Meeting - 6:00 p.m.
8* Special Meeting/Study Session - 6:00 p.m.
15* Regular Meeting - 6:00 p.m.
22* Special Meeting/Study Session - 6:00 p.m.
APRIL 2021
5* Regular Meeting - 6:00 p.m.
19* Regular Meeting - 6:00 p.m.
* meeting is webstreamed and televised
Proclamation of the City of Gilroy
Whereas, March is American Red Cross Month, a special time to honor the
kindness of our neighbors who aid families in need every day in Gilroy, across the United
States and around the world. Their dedication touches millions of lives each year as they
carry out the organization’s 140-year mission of preventing and alleviating suffering; and
Whereas, during the trying times of the coronavirus pandemic, people have
stepped up to help others in need, whether it was responding to this year’s record-breaking
disasters across the country or rolling up their sleeves to give blood when our country faced a
severe blood shortage; and
Whereas, here in Gilroy, local families have relied on American Red Cross
volunteers for comfort and hope while coping with disaster. Volunteers also helped people
affected by home fires by addressing their urgent needs like food, lodging and recovery
support; and
Whereas, American Red Cross volunteers have supported local families in other
ways too. It collects nearly 40 percent of the nation’s blood supply; provides 24-hour support
to military members, veterans and their families; teaches millions lifesaving skills, such as
lifeguarding and CPR; and through its Restoring Family Links program, connects family
members separated by crisis, conflict or migration ; and
Whereas, this lifesaving work is vital to strengthening our community’s resilience.
Nearly 200 years since the birth of American Red Cross founder Clara Barton, we
dedicate this month of March to all those who continue to advance her noble legacy, and we
ask others to join in their commitment to care for people in need.
NOW, THEREFORE , I, Marie Blankley, Mayor of the City of Gilroy, on
behalf of the entire City Council, do hereby proclaim March 2021 as
American Red Cross Month
and encourage all Citizens of Gilroy to support this outstanding organization and its noble
humanitarian mission.
_____________________
Mayor Marie Blankley
2.A.1
Packet Pg. 7 Communication: Proclamation Naming the Month of March Red Cross Month (Proclamations, Awards, and Presentations)
City of Gilroy
STAFF REPORT
Agenda Item Title: Recognize Corporal Robert Basuino, Detective Eric Cryar and
Detective Hugo Del Moral as Recipients of the State of California
Governor's Public Safety Officer Medal of Valor for an Act of
Heroism Demonstrated at the Gilroy Garlic Festival on July 28,
2019
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Police Department
Submitted By: Pedro Espinoza
Prepared By: Pedro Espinoza
Patricia Vigil
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Recognize Corporal Robert Basuino, Detective Eric Cryar and Detective Hugo Del
Moral as Recipients of the State of California Governor's Public Safety Officer Medal of
Valor for an Act of Heroism Demonstrated at the Gilroy Garlic Festival on July 28, 2019
EXECUTIVE SUMMARY
Corporal Robert Basuino, Detective Eric Cryar, and Detective Hugo Del Moral are
recipients of the State of California Governor’s Public Safety Officer Medal of Valor
2.A.2
Packet Pg. 8 Communication: Recognize Corporal Robert Basuino, Detective Eric Cryar and Detective Hugo Del Moral as Recipients of the State of California
Award for their courageous actions demonstrated at the G ilroy Garlic Festival on July
28, 2019.
ANALYSIS
The Governor’s State Public Safety Officer Medal of Valor Award is the highest honor
the State of California bestows upon its employees. It is awarded to individuals, on or off
duty, who perform an act of heroism above and beyond the call of duty to save the life
of another person or state property.
Corporal Robert Basuino, Detective Eric Cryar and Detective Hugo Del Moral were
presented with the award for valor and bravery for the actions demonstrated at the
Gilroy Garlic Festival on July 28, 2019, when a lone gunman fatally wounded three
victims and injured many more. The three Officer’s demonstrated courage in the face of
life-threatening circumstances and their actions were above and beyond the call of duty.
Governor Gavin Newsom and Attorney General Xavier Becerra presented the Public
Safety Officer Medal of Valor award to the three officers’, virtually, on January 25, 2020.
In his presentation, Governor Newsom stated, “Today’s Medal of Valor honorees
demonstrated unparalleled heroism in service to their communities, risking t heir own
safety to save lives. Their actions are an inspiration to all of us and we offer our deep
reverence and gratitude to these extraordinary individuals for the sacrifices they make
every day to protect their fellow Californians.”
The actions displayed by Corporal Basuino and Detectives Cryar and Del Moral on July
28, 2019, were bold, courageous, fearless, selfless, and heroic. Their actions
undoubtedly saved many lives.
2.A.2
Packet Pg. 9 Communication: Recognize Corporal Robert Basuino, Detective Eric Cryar and Detective Hugo Del Moral as Recipients of the State of California
City of Gilroy
STAFF REPORT
Agenda Item Title: Resolution in Support of AB 271 (Rivas) Allowing for Valley Water
to Utilize a "Best Value" Procurement Method for the Anderson
Dam Seismic Retrofit Project
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Approve a resolution in support of AB 271 (Rivas) that would authorize Valley Water to
utilize a "Best Value" method of contractor selection for the Anderson Dam Retrofit
Project.
BACKGROUND
The Leroy Anderson Dam and Reservoir owned by the Santa Clara Valley Water
District (Valley Water) is located in unincorporated Santa Clara County and was built in
1950. The dam is an integral part of the regions water supply system and is the large st
dam in the county with a capacity of almost 90,000 acre -feet.
As far back as 2008 it was been known that the dam needed seismic retrofits to prevent
a dam failure. In February 2020, the Federal Energy Regulatory Commission directed
6.A
Packet Pg. 10
the Santa Clara Valley Water District to maintain the reservoir at a level that is
equivalent to 35 percent of the reservoir’s capacity, begin draining the reservoir to
Deadpool by October 1, 2020, and expenditure reconstruction and improvement of the
dam as soon as feasible to allow the deadpool to be maintained.
ANALYSIS
The Anderson Dam Seismic Retrofit Project is complex and must be evaluated under
both state and federal environmental laws. The independent Board of Consultants,
convened pursuant to the Federal Energy R egulatory Commission process, has
recommended the “best value” method for awarding the construction contracts for the
Anderson Dam Seismic Retrofit Project due to its complex design, delivery, and
installation.
This procurement method must be authorized by the California State Legislature.
Authorizing the Anderson Dam Seismic Retrofit Project for the “best value” method of
contract award, like other major surface storage projects, is in keeping with construction
industry practices and is prudent for a pr oject of this scale and importance.
Assembly Bill 271 authored by Assembly member Robert Rivas would give Valley
Water the authorization to award project contracts on the “best value” method of
procurement and not necessarily the lowest bidder.
Representatives from both Valley Water and Assembly Member Rivas’ office have
requested that the City provide a letter of support for AB 271.
ALTERNATIVES
Council could decide not support AB 271.
FISCAL IMPACT/FUNDING SOURCE
None associated with this action.
NEXT STEPS
Should Council approve the support of AB 271, the Mayor will submit a letter of support
on behalf of Council to Assembly Member Rivas.
Attachments:
1. AB 271 Fact Sheet 2.10.20
6.A
Packet Pg. 11
2. AB 271 Bill Language
6.A
Packet Pg. 12
Assemblymember Robert Rivas, 30th Assembly District
Last Revised 2/10/21
AB 271: Timely, Safe, Expert Construction for the Anderson Dam Project
SUMMARY
Assembly Bill 271 will authorize use of the “best value” method
to select the construction contractor for the Anderson Dam
Seismic Retrofit Project, instead of a mandated selection of the
lowest bidder, and will require use of a skilled and trained
workforce.
Federal, state, and local officials have determined that the Leroy
Anderson Dam and Reservoir—owned by the Santa Clara Valley
Water District (Valley Water)—would be at risk of an
uncontrolled release of water in the event of a large earthquake,
which could inundate cities and rural areas from San Francisco
Bay south to Monterey Bay, including much of Silicon Valley.
Expert construction is critical for a project of this size and
complexity. “Best Value” is a procurement process that allows a
public agency to select contractors based on objective criteria for
evaluating the qualifications of bidders, rather than the lowest
price, with the resulting selection providing the best combination
of price and qualifications. Under current California law, Valley
Water must select the contractor offering the lowest bid rather
than the best value. Because of the size and complexity of the
Anderson Project, Valley Water needs authorization in state law
to award the contract to the most qualified bidder. “Best value”
selection of the construction contractor will help ensure the best
combination of price, expertise, and value for the Anderson Dam
project.
BACKGROUND
Critical Dam Safety Project for Silicon Valley - The Anderson
Dam Seismic Retrofit Project will remove and replace most of the
existing dam, and will include significant downstream
environmental enhancements. It is a complex project to protect
lives and property from dam failure, reduce flood risk for
downstream communities, and restore Anderson Reservoir’s
supply of clean, safe drinking water for the region. The project is
estimated to cost $576 million and create 5,400 jobs.
Built in 1950 to the safety standards of the day, Anderson Dam
would not withstand a large earthquake on the nearby Calaveras
and Coyote Creek faults. A breach of the dam at full capacity
would have catastrophic consequences for life and property,
inundating an area with 450,000 residents and thousands of job
creating Silicon Valley businesses. The inundation zone extends
more than 30 miles northwest to San Francisco Bay, including the
cities of San José, Santa Clara, Sunnyvale, Milpitas, and more
than 40 miles southeast to Monterey Bay, including the cities of
Morgan Hill, Gilroy, and Watsonville.
Dam Safety Experts Recommend Best Value Contractor
Selection for the Anderson Project - The independent Board of
Consultants, convened pursuant to the Federal Energy Regulatory
Commission process and consisting of some of the nation’s
foremost dam safety experts, has recommended the “best value”
method of contractor selection for the Anderson Dam project due
Maximum Flood Area from Anderson Dam Failure
to its complex design, delivery, and installation. Other major
surface storage projects in California are already authorized for
best value contractor selection, and doing so for the Anderson
Dam project is in keeping with construction industry practices and
is prudent for a project of this scale and importance.
SOLUTION
This bill will authorize Valley Water to use the “best value”
method to select the construction contractor for the Anderson
Dam Seismic Retrofit Project and will require a skilled and trained
workforce to ensure expert construction. Using “best value” will
allow the safest and best overall value for the removal and
replacement of Silicon Valley’s largest and most critical local
water storage facility.
SUPPORT
Valley Water (Sponsor)
CONTACT
Amy McElroy
(831) 673-0210
Amy.McElroy@asm.ca.gov
6.A.a
Packet Pg. 13 Attachment: AB 271 Fact Sheet 2.10.20 (3199 : Support of AB 271)
california legislature—2021–22 regular session
ASSEMBLY BILL No. 271
Introduced by Assembly Member Robert Rivas
(Principal coauthor: Senator Laird)
(Coauthors: Assembly Members Berman and Kalra)
January 19, 2021
An act to add Section 21163 to the Public Contract Code, relating to
public contracts.
legislative counsel’s digest
AB 271, as introduced, Robert Rivas. Santa Clara Valley Water
District: contracts: best value procurement.
Existing law authorizes certain local entities to select a bidder for a
contract on the basis of “best value,” as defined. Existing law governs
various types of contract procedures applicable to the Santa Clara Valley
Water District and prescribes competitive bidding procedures for any
improvement or unit of work over $50,000.
This bill would authorize the district, upon approval by the board of
directors of the district, to award contracts on a best value basis for any
work of the Anderson Dam project, defined to include prescribed
activities and works of construction with regard to the Leroy Anderson
Dam and Reservoir and certain fish and aquatic habitat measures
described in a federal-state settlement agreement. The bill would require
the district, if the board elects to award contracts on a best value basis,
to comply with specified requirements governing the documents
prepared setting forth the scope and estimated price of the project and
the request for qualifications. The bill would prohibit a best value
contractor from being prequalified, shortlisted, or awarded a contract
unless the contractor provides an enforceable commitment to the district
99 6.A.b
Packet Pg. 14 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
that the contractor and its subcontractors at every tier will use a skilled
and trained workforce to perform all work on the project, in accordance
with certain criteria. By requiring certain information of bidders to be
certified under penalty of perjury, the bill would expand an existing
crime, thereby imposing a state-mandated local program.
This bill would make legislative findings and declarations as to the
necessity of a special statute for the Santa Clara Valley Water District.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares all of the
line 2 following:
line 3 (a) The Leroy Anderson Dam and Reservoir, owned by the
line 4 Santa Clara Valley Water District and located in the County of
line 5 Santa Clara, is the largest reservoir in the county with a capacity
line 6 of 89,278 acre-feet, is a critical part of the region’s water supply
line 7 system, and provides incidental flood protection, as well as
line 8 environmental and recreational benefits.
line 9 (b) A breach of the Leroy Anderson Dam at full capacity could
line 10 have catastrophic consequences, including inundation of a land
line 11 area extending more than 30 miles northwest to San Francisco
line 12 Bay, including the Cities of Milpitas, San Jose, Santa Clara, and
line 13 Sunnyvale, and more than 40 miles southeast to Monterey Bay,
line 14 including the Cities of Gilroy, Morgan Hill, and Watsonville. This
line 15 area includes a significant part of the region known as Silicon
line 16 Valley and is home to thousands of job-creating businesses that
line 17 drive the regional, state, and national economies.
line 18 (c) The dam has been determined by the Santa Clara Valley
line 19 Water District, the Department of Water Resources Division of
line 20 Safety of Dams, and the Federal Energy Regulatory Commission
line 21 to be at risk of an uncontrolled release of water due to a seismic
line 22 event. On February 20, 2020, the Federal Energy Regulatory
line 23 Commission directed the Santa Clara Valley Water District to
99
— 2 — AB 271 6.A.b
Packet Pg. 15 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
line 1 maintain the reservoir at a level that is equivalent to 35 percent of
line 2 the reservoir’s capacity, begin draining the reservoir to deadpool
line 3 by October 1, 2020, and expedite reconstruction and improvement
line 4 of the dam outlet structure to begin as soon as feasible to allow
line 5 the deadpool to be maintained. The Santa Clara Valley Water
line 6 District is in the process of complying with the federal order and
line 7 began the draining of the reservoir on October 1, 2020, and is
line 8 moving expeditiously to construct a new dam outlet structure.
line 9 (d) Built in 1950 to the seismic and dam safety standards of the
line 10 day, the dam would not withstand the largest likely earthquake,
line 11 known as the maximum credible earthquake, on the nearby
line 12 Calaveras and Coyote Creek faults. A 2008 seismic stability
line 13 evaluation identified potential embankment instability as a result
line 14 of seismic shaking and liquefaction. In 2012, and again in 2020,
line 15 voters in the County of Santa Clara approved parcel taxes to pay
line 16 for the initiation of the Anderson Dam Seismic Retrofit Project
line 17 and pay for a portion of the overall project costs. By 2016, findings
line 18 from the geotechnical and geologic investigations performed during
line 19 the project’s design phase led to the conclusion that a more
line 20 extensive dam retrofit than had originally been envisioned would
line 21 have to be performed, causing a necessary delay and redesign of
line 22 the project.
line 23 (e) In February 2017, an atmospheric river event, which
line 24 conveyed a series of wet storms to the region, resulted in flows
line 25 over the dam’s spillway that, together with heavy flows from
line 26 surrounding waterways, eventually exceeded the capacity of Coyote
line 27 Creek. The creek flooded homes and businesses in economically
line 28 diverse neighborhoods in San Jose, including disadvantaged
line 29 communities and communities of color, requiring the evacuation
line 30 of 14,000 people. The dam’s outlet, used to draw down the
line 31 reservoir in an emergency, is too small by modern standards, and
line 32 in advance of the 2017 storms, the outlet had been releasing as
line 33 much water as possible for more than a month.
line 34 (f) The Santa Clara Valley Water District’s Anderson Dam
line 35 Seismic Retrofit Project will remove and replace the dam. It will
line 36 be constructed to modern seismic and dam safety standards,
line 37 including increased capacities for the dam’s spillway and outlet
line 38 to allow a rapid, controlled drawdown in an emergency and to
line 39 enhance incidental flood protection.
99
AB 271 — 3 — 6.A.b
Packet Pg. 16 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
line 1 (g) The Anderson Dam Seismic Retrofit Project is complex and
line 2 must be evaluated under both state and federal environmental laws.
line 3 The independent Board of Consultants, convened pursuant to the
line 4 Federal Energy Regulatory Commission process, has recommended
line 5 the “best value” method for awarding the construction contracts
line 6 for the Anderson Dam Seismic Retrofit Project due to its complex
line 7 design, delivery, and installation.
line 8 (h) Authorizing the Anderson Dam Seismic Retrofit Project for
line 9 the “best value” method of contract award, similar to other major
line 10 surface storage projects, is in keeping with construction industry
line 11 practices and is prudent for a project of this scale and importance.
line 12 SEC. 2. Section 21163 is added to the Public Contract Code,
line 13 to read:
line 14 21163. (a) As used in this section:
line 15 (1) (A) “Anderson Dam project” or “project” means any activity
line 16 or work of construction to retrofit, repair, replace, or improve the
line 17 safety of the Leroy Anderson Dam and Reservoir, owned by the
line 18 Santa Clara Valley Water District and located in the County of
line 19 Santa Clara, including any upstream or downstream construction,
line 20 improvements, changes in operational activities, and flood
line 21 protection measures that may be required to implement that activity
line 22 or work.
line 23 (B) The “Anderson Dam project” or “project” includes any
line 24 avoidance, minimization, or mitigation measures, including the
line 25 Coyote Creek-related Phase 1 measures of the Fish and Aquatic
line 26 Habitat Collaborative Effort, as described in the settlement
line 27 agreement, determined to be appropriate by the district, in
line 28 consultation with state and federal agencies identified as
line 29 “responsible agencies” or “trustee agencies” pursuant to Division
line 30 13 (commencing with Section 21000) of the Public Resources
line 31 Code.
line 32 (2) “Best value” means a procurement process whereby the
line 33 selected bidder may be selected on the basis of objective criteria
line 34 for evaluating the qualifications of bidders with the resulting
line 35 selection representing the best combination of price and
line 36 qualifications.
line 37 (3) “Best value contract” means a competitively bid contract
line 38 entered into pursuant to this section.
99
— 4 — AB 271 6.A.b
Packet Pg. 17 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
line 1 (4) “Best value contractor” means a properly licensed person,
line 2 firm, or corporation that submits a bid for, or is awarded, a best
line 3 value contract.
line 4 (5) “District” means the Santa Clara Valley Water District.
line 5 (6) “Project labor agreement” has the same meaning as in
line 6 paragraph (1) of subdivision (b) of Section 2500.
line 7 (7) “Settlement agreement” means the agreement entitled
line 8 “Settlement Agreement Regarding Water Rights of the Santa Clara
line 9 Valley Water District on Coyote, Guadalupe, and Stevens Creeks”
line 10 initialed on May 27, 2003, by the district, the United States
line 11 Department of the Interior, United States Fish and Wildlife Service,
line 12 the United States Department of Commerce, National Marine
line 13 Fisheries Service, the California Department of Fish and Game,
line 14 the Guadalupe-Coyote Resource Conservation District, Trout
line 15 Unlimited, the Pacific Coast Federation of Fishermen’s
line 16 Associations, and California Trout, Incorporated.
line 17 (b) Upon the approval of the board, the district may award
line 18 contracts on a best value basis for any work for the Anderson Dam
line 19 project.
line 20 (c) If the board elects to award a contract on a best value basis
line 21 pursuant to the authorization in subdivision (b), the district shall
line 22 comply with both of the following:
line 23 (1) The district shall prepare a set of documents setting forth
line 24 the scope and estimated price of the project. The documents may
line 25 include, but need not be limited to, the size, type, and desired
line 26 design character of the project, performance specifications covering
line 27 the quality of materials, equipment, workmanship, preliminary
line 28 plans or layouts, or any other information deemed necessary to
line 29 adequately describe the district’s needs. The performance
line 30 specifications and any plans shall be prepared by a design
line 31 professional who is duly licensed and registered in California.
line 32 (2) The district shall prepare and issue a request for
line 33 qualifications in order to prequalify or short-list the entities,
line 34 including subcontractors and suppliers, whose bids shall be
line 35 evaluated for final selection. The request for qualifications shall
line 36 include, but need not be limited to, all of the following elements:
line 37 (A) Identification of the basic scope and needs of the project or
line 38 contract, the expected cost range, the methodology that will be
line 39 used by the district to evaluate bids, the procedure for final
line 40 selection of the bidder, and any other information deemed
99
AB 271 — 5 — 6.A.b
Packet Pg. 18 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
line 1 necessary by the district to inform interested parties of the
line 2 contracting opportunity.
line 3 (B) Significant factors that the district reasonably expects to
line 4 consider in evaluating qualifications, including technical
line 5 design-related expertise, construction expertise, acceptable safety
line 6 records, and all other non-price-related factors.
line 7 (C) A standard template request for statements of qualifications
line 8 prepared by the district. In preparing the standard template, the
line 9 district may consult with the construction industry, the building
line 10 trades and surety industry, and other local agencies with experience
line 11 awarding a contract on a best value basis. The template shall
line 12 require all of the following information:
line 13 (i) If the bidder is a privately held corporation, limited liability
line 14 company, partnership, or joint venture, composed of privately held
line 15 entities, a listing of all of the shareholders, partners, or members
line 16 known at the time of statement of qualification submission who
line 17 will perform work on the project.
line 18 (ii) Evidence that the members of the contracting team have
line 19 completed, or demonstrated the experience, competency, capability,
line 20 and capacity to complete, projects of similar size, scope, or
line 21 complexity and that proposed key personnel have sufficient
line 22 experience and training to competently manage and complete the
line 23 project, and a financial statement that ensures that the bidder has
line 24 the capacity to complete the project.
line 25 (iii) The licenses, registration, and credentials required for the
line 26 project, including, but not limited to, information on the revocation
line 27 or suspension of any license, credential, or registration.
line 28 (iv) Evidence that establishes that the bidder has the capacity
line 29 to obtain all required payment and performance bonding, liability
line 30 insurance, and errors and omissions insurance.
line 31 (v) Information concerning workers’ compensation experience
line 32 history and a worker safety program.
line 33 (vi) An acceptable safety record. “Safety record” means the
line 34 prior history concerning the safe performance of construction
line 35 contracts. The criteria used to evaluate a bidder’s safety record
line 36 shall include, at a minimum, its experience modification rate for
line 37 the most recent three-year period, and its average total recordable
line 38 injury or illness rate and average lost work rate for the most recent
line 39 three-year period.
99
— 6 — AB 271 6.A.b
Packet Pg. 19 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
line 1 (vii) The information required under this subparagraph shall be
line 2 certified under penalty of perjury by the bidder and its general
line 3 partners or joint venture members.
line 4 (d) (1) A best value contractor shall not be prequalified,
line 5 shortlisted, or awarded a contract, regardless of whether the best
line 6 value process is used, unless the contractor provides an enforceable
line 7 commitment to the district that the contractor and its subcontractors
line 8 at every tier will use a skilled and trained workforce to perform
line 9 all work on the project or contract that falls within an
line 10 apprenticeable occupation in the building and construction trades,
line 11 in accordance with Chapter 2.9 (commencing with Section 2600)
line 12 of Part 1.
line 13 (2) Paragraph (1) shall not apply if either of the following
line 14 requirements are met:
line 15 (A) The district has entered into a project labor agreement that
line 16 will bind all contractors and subcontractors performing work on
line 17 the project or contract to use a skilled and trained workforce, and
line 18 the contractor agrees to be bound by that project labor agreement.
line 19 (B) The contractor has entered into a project labor agreement
line 20 that will bind the contractor and all its subcontractors at every tier
line 21 performing the project or contract to use a skilled and trained
line 22 workforce.
line 23 SEC. 3. The Legislature finds and declares that a special statute
line 24 is necessary and that a general statute cannot be made applicable
line 25 within the meaning of Section 16 of Article IV of the California
line 26 Constitution because of the findings set forth in Section 1 of this
line 27 act.
line 28 SEC. 4. No reimbursement is required by this act pursuant to
line 29 Section 6 of Article XIII B of the California Constitution because
line 30 the only costs that may be incurred by a local agency or school
line 31 district will be incurred because this act creates a new crime or
line 32 infraction, eliminates a crime or infraction, or changes the penalty
line 33 for a crime or infraction, within the meaning of Section 17556 of
line 34 the Government Code, or changes the definition of a crime within
line 35 the meaning of Section 6 of Article XIII B of the California
line 36 Constitution.
O
99
AB 271 — 7 — 6.A.b
Packet Pg. 20 Attachment: AB 271 Bill Language (3199 : Support of AB 271)
City of Gilroy
STAFF REPORT
Agenda Item Title: Claim of Colleen Loebs (The City Administrator recommends a
“yes” vote under the Consent Calendar shall constitute the denial of
the claim)
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Human Resources Department
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal
counsel, this claim is recommended for rejection.
EXECUTIVE SUMMARY
Based on the recommendation from Municipal Pooling Authority (MPA) and/or legal
counsel, the following claim is submitted to the City Council for rejection at the March 1,
2021 meeting:
Claim of Colleen Loebs
Attachments:
6.B
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1. Claim of Colleen Loebs
6.B
Packet Pg. 22
6.B.a
Packet Pg. 23 Attachment: Claim of Colleen Loebs (3197 : Claim of Colleen Loebs)
6.B.a
Packet Pg. 24 Attachment: Claim of Colleen Loebs (3197 : Claim of Colleen Loebs)
6.B.a
Packet Pg. 25 Attachment: Claim of Colleen Loebs (3197 : Claim of Colleen Loebs)
6.B.a
Packet Pg. 26 Attachment: Claim of Colleen Loebs (3197 : Claim of Colleen Loebs)
6.B.a
Packet Pg. 27 Attachment: Claim of Colleen Loebs (3197 : Claim of Colleen Loebs)
Proclamation of the City of Gilroy
WHEREAS, the Council for Art Education administers Youth Art Month
on a national level and thousands of schools participate;
WHEREAS, the Santa Clara County Board of Education has recognized
March as Youth Arts Month and is committed to supporting the arts to inspire and
prepare students for success in the 21st century and allowing them to develop as
productive, contributing members of a strong community, and
WHEREAS, we share the vision of ensuring that students have access to high-
quality arts education that is culturally relevant and inclusive in all forms as part of a
comprehensive education that sparks curiosity, imagination, creativity, and joy; and
WHEREAS, according to the California Department of Education, Fine
Arts are taught in almost 60,000 classes in Santa Clara County. Studies have proven
that arts learning strategies and arts integration help teachers to recognize and build
upon critical thinking skills, curiosity, flexibility, communication, innovation,
collaboration and are the traits required for post-secondary and workplace success; and
WHEREAS, each March Arts Education is celebrated in local schools, school
districts, community arts organizations, and larger communities;
NOW, THEREFORE , I Marie Blankley, Mayor of the City of
Gilroy, on this 1st Day of March, along with my colleagues on the City Council, do hereby
proclaim the Month of March 2020 as
Youth Arts Month
and supports arts education in Santa Clara County and encourages arts in our classrooms
and celebrates students’ creativity, inspiration, and joy through artistic expression.
_____________________
Marie Blankley, Mayor
6.C
Packet Pg. 28 Communication: Proclamation Naming the Month of March Youth Arts Month (CONSENT CALENDAR (ROLL CALL VOTE))
City of Gilroy
STAFF REPORT
Agenda Item Title: Adoption of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19 of the Gilroy City Code Entitled "Smoking
Prohibited" Modifying Sections 19B.2 (9) Pertaining to Parks
(introduced 2/22/2021 with a 6-0-1 vote, Council Member Tovar
Absent)
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Adam Henig
Prepared By: Adam Henig
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Adopt an ordinance of the City Council of the City of Gilroy amending Chapter 19 of the
Gilroy City Code entitled "Smoking Prohibited" Modifying Sections 19B.2 (9) Pertaining
to Parks.
EXECUTIVE SUMMARY
The adoption of an ordinance of the City Council of the City of Gilroy amending Gilroy
City Code Chapter 19 of the Gilroy City Code entit led "Smoking Prohibited” modifying
Sections 19B.2 (9) Pertaining to Parks that was introduced on February 22, 2021 with a
6-0-1 vote (Council Member Tovar Absent).
9.A
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The staff report presented to Council on February 22, 2021 is included for reference.
BACKGROUND
In July 2020, Santa Clara County’s Public Health Department released its findings from
its Tobacco-free Communities report and shared it with the Parks and Recreation
Commission. Among the 15 cities within the County, all but three have banned tobac co
usage in parks (Gilroy, Mountain View, and Los Altos Hills). At their September 2020
regular meeting, the Commission motioned unanimously to approve recommending an
ordinance change to the city code, chapter “19B.2.9 Parks. Smoking Pollution Control,”
that would ban designated smoking areas at all city parks.
On January 25, 2021, Council directed staff to draft an amendment to the ordinance that
would ban smoking at all city parks.
On February 22, 2021, Council adopted an Ordinance of the City Council of the City of
Gilroy Amending Chapter 19 of the Gilroy City Code Entitled "Smoking Prohibited"
Modifying Sections 19B.2 (9) Pertaining to Parks.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are associated with adoption of the proposed ordinance. The County
can support the City’s effort to ban smoking in parks by funding “no smoking” signage.
NEXT STEPS
The ordinance will be in effect thirty (30) days from the date of Council action.
Attachments:
1. Printout-3171-1003-A47688
2. Ordinance to Ban Smoking in City Parks (EDKR 2.3) v1
9.A
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City of Gilroy
STAFF REPORT
Agenda Item Title: Introduction of an Ordinance of the City Council of the City of Gilroy
Amending Chapter 19 of the Gilroy City Code Entitled "Smoking
Prohibited” Modifying Sections 19B.2 (9) Pertaining to Parks;
finding that the project is exempt from CEQA pursuant to CEQA
Guidelines Section 15061(b)(3).
Meeting Date: February 22, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Adam Henig
Prepared By: Adam Henig
Adam Henig
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
a) Motion to read the ordinance by title onl y and waive further reading
b) Find that the proposed ordinance is exempt from the California Environmental
Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it
can be seen clearly that the ordinance would not have a significant impac t on the
environment.
c) Introduce an ordinance of the City Council of the City of Gilroy amending Chapter
19 of the Gilroy City Code entitled "Smoking Prohibited” Modifying Sections
19B.2 (9) Pertaining to Parks.
9.A.a
Packet Pg. 31 Attachment: Printout-3171-1003-A47688 (3207 : Smoking in Parks Ordinance)
EXECUTIVE SUMMARY
The consideration of an ordinance of the City Council of the City of Gilroy amending
Gilroy City Code Chapter 19 of the Gilroy City Code entitled "Smoking Prohibited”
modifying Sections 19B.2 (9) Pertaining to Parks that was presented to Council at the
January 25, 2021 meeting. Council directed staff to draft amendments to the ordinance.
The staff report presented to Council on January 25, 2021 is included for reference.
BACKGROUND
In July 2020, Santa Clara County’s Public Health Department released its findings from
its Tobacco-free Communities report and shared it with the Parks and Recreation
Commission. Among the 15 cities within the County, all but three have banned tobacco
usage in parks (Gilroy, Mountain View, and Los Altos Hills). The Commission motioned
unanimously to approve recommending an ordinance change to the city code, chapter
“19B.2.9 Parks. Smoking Pollution Control,” that would ban designated smoking areas
at all city parks.
On January 25, 2021, Council directed staff to draft an amendment to the ordinance th at
would ban smoking at all city parks.
FISCAL IMPACT/FUNDING SOURCE
No fiscal impacts are associated with adoption of the proposed ordinance. The County
can support the City’s effort to ban smoking in parks by funding “no smoking” signage.
NEXT STEPS
The ordinance will be in effect thirty (30) days from the date of Council action.
Attachments:
1. Ordinance to Ban Smoking in City Parks (EDKR 2.3) v1
2. January 25, 2021 Staff Report
9.A.a
Packet Pg. 32 Attachment: Printout-3171-1003-A47688 (3207 : Smoking in Parks Ordinance)
-1-
ORDINANCE NO. 2021-XX__ 4851-6497-4811v1
ERAMAKRISHNAN\04706083
ORDINANCE NO. 2021-XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GILROY AMENDING GILROY CITY CODE CHAPTER
19 TO ADD MODIFY SECTIONS 19B.2 (9) PERTAINING
TO SMOKING IN PARKS.
WHEREAS, pursuant to California Constitution article XI, section 7, and the City
Charter, section 600, the City Council has the authority to enact ordinances which promote the
public health, safety and general welfare of its residents; and
WHEREAS, the City Council finds that the modification to Gilroy City Code, Chapter
19, pertaining to banning smoking at all city parks is necessary and in the interest of the health,
safety and welfare of the residents of the City; and
WHEREAS, the City Council finds that this Ordinance is exempt from review under the
California Environmental Quality Act (“CEQA,” Public Resources Code sections 21000 et
seq.), because it will not result in a direct or reasonably foreseeable indirect physical change in
the environment, and it does not have the potential to result in a physical change to the
environment, directly or indirectly (Title 14, Chapter 3 of the California Code of Regulations
“CEQA Guidelines,” sections 15061(b)(3)).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 19 of the Gilroy City Code entitled “Smoking Prohibited” is hereby amended by
modifying Sections 19B.2 (9) to read as follows:
19B.2 Smoking prohibited.
Labor Code Section 6404.5 prohibits smoking in enclosed places of employment (as defined in
that code section) in the State of California. In addition, pursuant to Labor Code Section 6404.5,
local governments retain the right to adopt and implement stricter anti-smoking requirements
than are imposed pursuant to Labor Code Section 6404.5, including the right to regulate and
prohibit smoking in any area not defined as a place of employment or in which smoking is not
regulated pursuant to Labor Code Section 6404.5. This chapter is intended to supplement the
9.A.b
Packet Pg. 33 Attachment: Ordinance to Ban Smoking in City Parks (EDKR 2.3) v1 (3207 : Smoking in Parks Ordinance)
-2-
ORDINANCE NO. 2021-XX__ 4851-6497-4811v1
ERAMAKRISHNAN\04706083
provisions of Labor Code Section 6404.5. All places within the city shall be subject to the
provisions of Labor Code Section 6404.5, as such section may be amended or recodified from
time to time. In addition, smoking is prohibited in all of the following places within the city:
Section 19B.2 (9) Parks
(9) Parks. Park grounds and parking lot(s).
SECTION II
If any section, subsection, sentence, clause or phrase of this Ordinance is for any
reason held to be invalid or unconstitutional, such decision shall not affect the validity of
the remaining portions of this ordinance. The City Council of the City of Gilroy hereby
declares that it would have passed and adopted this ordinance, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases may be declared invalid or unconstitutional.
SECTION III
Pursuant to section 608 of the Charter of the City of Gilroy, this ordinance shall be in full force
and effect thirty (30) days from and after the date it is adopted.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF GILROY
this 22nd day of February, 2021, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ATTEST: APPROVED:
_______________________ ________________________
Shawna Freels, City Clerk Marie Blankley, Mayor
9.A.b
Packet Pg. 34 Attachment: Ordinance to Ban Smoking in City Parks (EDKR 2.3) v1 (3207 : Smoking in Parks Ordinance)
City of Gilroy
STAFF REPORT
Agenda Item Title: Acceptance of the Fiscal Year 2020 Audit and Comprehensive
Annual Financial Report and Appropriations Limit for the Reporting
Period of July 1, 2019 to June 30, 2020
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Finance Department
Submitted By: Cindy Murphy
Prepared By: Cindy Murphy
Rosemary Guerrero
Strategic Plan Goals
Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability ☐ Public Engagement
RECOMMENDATION
Accept the report.
EXECUTIVE SUMMARY
Council is requested to accept and file the Fiscal Year 2020 Comprehensive
Annual Financial Report for the City and the Appropriations Limit (Gann Limit) report for
the reporting period July 1, 2019 to June 30, 2020.
BACKGROUND
10.A
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Following the close of each fiscal year at June 30th, the City’s external auditors conduct
an audit of the City’s financial records and assist in the compilation of the
Comprehensive Annual Financial Report (CAFR).
The objective of external financial reporting is to ensure accountability. The goal of a
financial statement audit is to provide users with a reasonable assurance from an
independent source that the information presented in the statements is reliable. The
audit for the fiscal year ended June 30, 2020 (FY20), was recently completed by The
Pun Group, LLP (Auditor), Certified Public Accountants.
In conjunction with the annual audit, the City also prepares the optional CAFR. The City
prepares the CAFR to comply with the requirements to receive the Certificate of
Achievement for Excellence in Financial Reporting administered by the Government
Finance Officers Association (GFOA). The Certificate of Achievement is a prestigious
national award recognizing conformance with the highest standard for preparation of
state and local government financial reports. The City’s CAFR has received this award
for the previous six fiscal years and we believe our current report continues to conform
to GFOA’s highest standard.
The Gann Limit report is required by Article XIIIB of the California Constitution and is a
calculation of the City’s appropriation of tax revenues compared to a baseline
established in 1979 and adjusted annually for inflation. Its intent is to limit the City’s
growth in appropriations based on the rate of growth in the cost of living and the
percentage increase in the City’s population. For FY20, the City’s Appropriations subject
to limitation were $189 million. The City’s tax-based expenditures were approximately
$45 million, approximately $144 million below the statutory limit.
ANALYSIS
As a result of their annual independent audit of the City’s financial records and
statements, the Auditor has rendered an unmodified (“clean”) opinion, the optimal
opinion issued by independent auditors, on the City’s financial statements for the fiscal
year ended June 30, 2020 (FY20).
In their opinion, “the financial statements… present fairly, in all material respects, the
respective financial position 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, as of June 30, 2020, and the respective changes in
financial position, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of
America.”
A detailed analysis of the City’s financial positi on as of June 30, 2020, is included in the
10.A
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CAFR document attached to this report (Attachment 1). In accordance with Government
Auditing Standards, the auditors also identify any deficiencies in internal control over
financial reporting and provide recommendations to City management on correcting
these deficiencies.
Of particular note are the following items related to the general health of the City:
1. The City’s overall net financial position decreased by $7.6 million from FY19
primarily due to the financial and operational impacts as a result of the COVID -19
pandemic.
2. The general fund actual revenues of $51.3 million were less than the prior year
due to revenue decline in sales tax, transient occupancy tax, plan check and
inspection revenue, and building per mit revenue.
3. The general fund actual expenditures were $4.7 million less than the amended
budget due to savings in personnel and conservative departmental spending
practices during the fiscal year.
4. The general fund reserve (for CAFR purposes) as of June 30, 2020, was $14.9
million, which is a decrease of $12.9 million, which is 26% of actual FY20
expenditures.
FISCAL IMPACT/FUNDING SOURCE
There are no direct fiscal impacts to receiving and filing the CAFR or other audit
documents. The audit provides Council with the assurance that the City is meeting its
obligation for producing financial reports that are presented fairly and accurately.
CONCLUSION
As is illustrated in the results of the annual audit, the City continues to promote a culture
of compliance and fiscal accountability. Thus, the Auditors have rendered an unmodified
opinion for the reporting period July 1, 2019 to June 30, 2020.
The preparation of this document is the result of the hard work of the entire Finance
Department staff. Their efforts, coupled with the assistance of our auditors, have
culminated in the timely completion of this report. The financial success of the City is
directly attributable to the City Council’s responsible manner of addressing the business
of this municipality.
Attachments:
1. 2020 Gilroy GANN FINAL
2. 2020 Gilroy CAFR FINAL
10.A
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City of Gilroy
Gilroy, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures to
Appropriations Limit Schedule
For the Year Ended June 30, 2020
10.A.a
Packet Pg. 38 Attachment: 2020 Gilroy GANN FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
INDEPENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
We have performed the procedures enumerated below, which were agreed to by the City of Gilroy, California (the
“City”) and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures
Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) on assisting
you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution for the year ended
June 30, 2020. The City’s management is responsible for the Appropriations Limit Schedule. The sufficiency of
these procedures is solely the responsibility of the City. Consequently, we make no representation regarding the
sufficiency of the procedures described below either for the purpose for which this report has been requested or any
other purpose.
The procedures performed and associated findings are as follows:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year
ended June 30, 2020, and verified that the limit and annual calculation factors were adopted by resolution
of the City Council. We also verified that the population and inflation options were selected by a recorded
vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total
adjustments, and agreed the resulting amount to the current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to
corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the
appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM
10.A.a
Packet Pg. 39 Attachment: 2020 Gilroy GANN FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
To the Honorable Mayor and Members of City Council
of the City of Gilroy
Gilroy, California
Page 2
2
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by
the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on
assisting you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the City Council and management of the City and is not
intended to be and should not be used by anyone other than these specified parties.
Santa Ana, California
February 1, 2021
10.A.a
Packet Pg. 40 Attachment: 2020 Gilroy GANN FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Appropriations Limit Schedule
For the Year Ended June 30, 2020
3
Amount Source
A. Appropriations Limit FY 2018-2019 179,932,769$ Prior year appropriation
limit adopted by the City
B. Calculation Factors:
1) Population increase %1.0122 California Department of Finance
2) Inflation increase %1.0385 California Department of Finance
3) Total adjustment %1.0512 (B1 x B2)
C. Annual Adjustment Increase 9,207,106 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-)- N/A
2) Transfer to private (-)- N/A
3) Transfer to fees (-)- N/A
4) Assumed responsibility (+)- N/A
E. Total Adjustments 9,207,106 (C + D)
F. Appropriations Limit FY 2019-2020 189,139,875$ (A + E)
See Accompanying Notes to Appropriations Limit Schedule.
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City of Gilroy
Notes to Appropriations Limit Schedule
For the Year Ended June 30, 2020
4
Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California
governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective
for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the
appropriations limit is subject to a limited procedures review in connection with the annual audit.
Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is
required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population
factors discussed in Notes 3 and 4 below.
Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the
jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is
located. The factor adopted by the City for the year ended June 30, 2020, represents the annual percentage change
in population for the City of Gilroy.
Note 4 – Inflation factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th
quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the
percentage change in the local assessment roll from the preceding year due to the change of local nonresidential
construction. The factor adopted by the City for the year ended June 30, 2020, represents the annual percentage
change in per capital personal income.
Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such
as the transfer of responsibility for municipal services to, or from, another government agency or private entity.
The City had no such adjustments for the year ended June 30, 2020.
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City of Gilroy
California
Year Ended June 30, 2020
Comprehensive Annual
Financial Report
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Prepared By
Finance Department
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City of Gilroy
Comprehensive Annual Financial Report
For the Year Ended June 30, 2020
Table of Contents
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ...................................................................................................................................................... i
Elected Officials & City Staff ....................................................................................................................................... v
Organizational Chart .................................................................................................................................................... vi
Map ............................................................................................................................................................................. vii
GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................... viii
FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ......................................................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................................................. 18
Statement of Activities ................................................................................................................................... 20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet .......................................................................................................................................... 27
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 28
Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................ 29
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities ...................................................................................................................... 30
Proprietary Fund Financial Statements:
Statement of Net Position ........................................................................................................................ 32
Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 35
Statement of Cash Flows ......................................................................................................................... 36
Fiduciary Fund Financial Statements:
Statement of Fiduciary Assets and Liabilities ......................................................................................... 41
Notes to the Basic Financial Statements ........................................................................................................... 47
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City of Gilroy
Comprehensive Annual Financial Report
For the Year Ended June 30, 2020
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios– Last Ten Fiscal Years
CalPERS Miscellaneous Plan ........................................................................................................................ 92
CalPERS Safety Plan ..................................................................................................................................... 93
Schedule of Plan Contributions - Pension – Last Ten Fiscal Years
CalPERS Miscellaneous Plan ........................................................................................................................ 94
CalPERS Safety Plan ..................................................................................................................................... 95
Schedule of Changes in the Net OPEB Liability and Related Ratios – Last Ten Fiscal Years ........................ 97
Budgetary Comparison Schedules
General Fund .................................................................................................................................................. 98
Notes to the Budgetary Comparison Schedules ................................................................................................ 101
Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Public Facilities Impact Capital Projects Fund ............................................................................................ 104
Gilroy Community Library Debt Service Fund ........................................................................................... 105
Nonmajor Governmental Funds:
Description of Nonmajor Governmental Funds ........................................................................................... 106
Combining Balance Sheet ............................................................................................................................ 108
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 115
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Gas Tax Special Revenue Fund ............................................................................................................. 122
Pavement Management Special Revenue Fund ..................................................................................... 123
Public Safety Grants Special Revenue Fund ......................................................................................... 124
Prop 172 Sales Tax Special Revenue Fund ........................................................................................... 125
Community Development Block Grant Special Revenue Fund ............................................................ 126
Rehabilitation Loans Special Revenue Fund ......................................................................................... 127
Housing Trust Fund Special Revenue Fund .......................................................................................... 128
Community Facilities District Special Revenue Fund ........................................................................... 129
Measure B Special Revenue Fund ......................................................................................................... 130
Vehicle License Fee Special Revenue Fund .......................................................................................... 131
Los Arroyos Fund Special Revenue Fund ............................................................................................. 132
CalHome Funds Special Revenue Fund .............................................................................................. 133
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City of Gilroy
Comprehensive Annual Financial Report
For the Year Ended June 30, 2020
Table of Contents (Continued)
Page
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Continued):
Capital Projects Fund ............................................................................................................................ 134
BANS 2009 Financing Capital Projects Fund ....................................................................................... 135
Traffic Impact Capital Projects Fund .................................................................................................... 136
Storm Drains Capital Projects Fund ...................................................................................................... 137
Utility Undergrounding Capital Projects Fund ...................................................................................... 138
Street Trees Development Capital Projects Fund .................................................................................. 139
Sewer Development Capital Projects Fund ........................................................................................... 140
Water Development Capital Projects Fund ........................................................................................... 141
Bank Interest Capital Projects Fund ...................................................................................................... 142
Gilroy Community Library Capital Projects Fund ................................................................................ 143
Refunding Lease 2010 Debt Service Fund ............................................................................................ 144
2013 Refunding Bond Debt Service Fund ............................................................................................. 145
CA Energy Commission Loan Debt Service Fund ................................................................................ 146
Internal Service Funds:
Combining Statement of Net Position.......................................................................................................... 148
Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 150
Combining Statement of Cash Flows ........................................................................................................... 153
Agency Funds:
Combining Statement of Fiduciary Assets and Liabilities ........................................................................... 157
Combining Statement of Changes in Fiduciary Assets and Liabilities ........................................................ 160
Additional Schedules:
Analysis of Available Resources – Selected Funds ..................................................................................... 166
Composition of Available Resources – Selected Funds............................................................................... 168
Annual Report Fillings ................................................................................................................................. 171
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City of Gilroy
Comprehensive Annual Financial Report
For the Year Ended June 30, 2020
Table of Contents (Continued)
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 181
Financial Trends:
Net Position By Component - Last Ten Fiscal Years ............................................................................................ 182
Changes in Net Position - Last Ten Fiscal Years .................................................................................................. 184
Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................................... 188
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 190
Revenue Capacity:
Sales Tax by Category - Last Ten Fiscal Years ..................................................................................................... 192
Sales Tax Rates - Last Ten Fiscal Years ................................................................................................................ 194
Principal Sales Tax Producers – Last Fiscal Year and Nine Years Ago ................................................................ 195
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ................................. 196
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .................................................................... 197
Principal Property Taxpayers - Current Year and Nine Years Ago ....................................................................... 198
Property Tax Levies, Tax Collections, and Delinquency - Last Ten Fiscal Years ................................................ 199
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................... 200
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years .................................................................... 202
Schedule of Direct and Overlapping Bonded Debt ................................................................................................ 203
Legal Debt Margin Information - Last Ten Fiscal Years ....................................................................................... 204
Revenue Bond Coverage - Wastewater System - Last Ten Fiscal Years .............................................................. 206
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ........................................................................... 209
Principal Employers – Current Year and Five Years Ago ..................................................................................... 210
Operating Information:
Full-Time Equivalent City Government Employees By Function/Program – Last Ten Fiscal Years ................... 211
Operating Indicators by Function / Program – Last Ten Fiscal Years ................................................................... 212
Capital Assets By Function – Last Ten Fiscal Years ............................................................................................. 214
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INTRODUCTORY
SECTION
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i
CITY
ADMINISTRATOR’S
OFFICE
7351 Rosanna Street
Gilroy, CA 95020
Telephone (408) 846-0202
Facsimile (408) 846-0500
http://www.ci.gilroy.ca.us
February 1, 2021
To the Honorable Mayor, Members of the City Council and Citizens of Gilroy:
The City of Gilroy’s (City) Charter requires that the City publish a complete set of audited financial
statements for each fiscal year. This report is published to fulfill that requirement for the fiscal
year ended June 30, 2020. This Comprehensive Annual Financial Report (CAFR) is submitted for
your information and review. The information contained herein has been provided to allow the
reader to gain an understanding of Gilroy’s financial activities. Management assumes full
responsibility for the completeness and reliability of the information contained in this report. The
Management Discussion and Analysis (MD&A) is included to assist the reader in its review of the
City’s financial statements. It provides a roadmap for the financial statements and related notes.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive framework of internal controls that is designed to both protect the
government’s assets from loss, theft or misuse and to compile sufficient reliable information for
the preparation of the City’s financial statements in conformity with U.S. Generally Accepted
Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their
benefits, the City’s comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute assurance that the financial statements will be free from material
misstatements. Management is committed to maintaining the City’s internal controls to adequately
safeguard assets; and to provide reasonable assurances of proper recording of financial
transactions.
The Pun Group LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion
on Gilroy’s financial statements for the year ended June 30, 2020. The independent auditor’s report
is located at the front of the financial section of this report. The MD&A immediately follows the
independent auditor’s report and provides a narrative introduction, overview, and analysis of the
basic financial statements. The MD&A complements this letter of transmittal and should be read
in conjunction.
Profile of the government
The City is the southernmost city in Santa Clara County, and is located approximately 25 miles
south of San Jose and approximately 75 miles south of San Francisco. Gilroy sits at the crossing
of U.S. Highway 101 and State Highway 152. The City was first incorporated in 1870 and became
a charter city on January 8, 1960. As of May 2020, the City had a population estimate of 57,084.
Situated between the Diablo and Santa Cruz mountains in the Santa Clara Valley, the City
experiences mild temperatures, while missing most of the coastal fog. The agricultural growing
season ranges from 300 to 350 days a year. Over the past few decades, the City has been
transitioning from an agricultural economy into a light industrial- and services-based economy.
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The City operates under the Council-Administrator form of government. The seven City Council
members, including the Mayor, are elected-at-large to four-year terms in alternate slates of three
every two years, with the Mayor being elected every four years. The City Council appoints the
City Administrator who heads the executive branch of the government, implements City Council
directives and policies, and manages the administrative and operational functions through the
department directors. The City Administrator appoints the department directors with the exception
of the City Clerk and the City Attorney, who are appointed by the City Council.
The budget of the City is a detailed operating and capital improvement plan that identifies
estimated costs and activities as related to estimated revenues. The City Administrator submits to
the City Council a proposed biennial budget for all funds and the Council then proceeds to make
any changes to the proposed budget it deems necessary. Before adopting the proposed budget, the
Council holds a public hearing. After the conclusion of the public hearing the Council may further
make revisions to the proposed budget. Thereafter the Council adopts the budget with revisions, if
any.
The City provides municipal services including police and fire protection, community and
economic development, recreation activities, parks and street maintenance, water and sewer
utilities and general City administration. Natural gas and electricity are provided by Pacific Gas
and Electric Company. Water service is provided by the City. Wastewater is collected and treated
by the South County Regional Wastewater Authority. Recycling and solid waste disposal services
are provided in the City by Recology South Valley.
Economic Setting
Gilroy’s economy has been dominated by agriculture and its related industries (food processing,
etc.) since the 1800s. However, the growing influence of Silicon Valley and regional population
growth have resulted in significant changes in the local economy during the past twenty years. The
economic boom in Silicon Valley which began in the early 1990s had profound impacts on the
local economy, resulting in significant increases in home prices and land values as well as
significant decreases in local unemployment.
Today, Gilroy’s economy is diversified into non-agricultural commercial and industrial activities
such as light manufacturing, wholesale operations, automobile sales, and large retail centers.
The Gilroy Outlets, Auto Mall area, and retail developments east of Highway 101 have put the
City on the map as a regional retail destination, and helped strengthen the City’s tax revenues.
Manufacturing and wholesale/distribution operations take advantage of Gilroy’s proximity to
Silicon Valley and easy access to Highway 152, leading to Interstate 5 and the Central Valley.
Development and Construction Activity
Prior to the 2008 economic recession, local real estate development and construction industries
experienced a high demand for new residential, commercial, and industrial development. Although
limited by the City’s Residential Development Ordinance (RDO), new housing construction saw
a surge of activity, as RDO allocations approved in earlier years were built out. Housing
developments in the northwest quad, north-central Gilroy, and Eagle Ridge area brought new
households to the City, many residents of which commute to work in the north county area.
Construction activity was also high in the southeast industrial area.
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Fiscal Year 2020 (FY 20) Financial Results
The City ended FY 20 with an operating loss. Total Citywide expenditures were less than
anticipated primarily due to savings in personnel and departmental expenditures, consistent with
FY 19 savings. However, General Fund revenue for FY 20 was lower than budgeted, primarily
due to less Sales Tax revenue, Plan Check and Inspection revenue, and Building Permit revenue
than anticipated. The net impact was an operating loss in the General Fund.
Revitalization and Capital Improvements
Commercial development in certain corridors in Gilroy has added millions of square feet of retail
and professional services space to the City. Downtown revitalization efforts have helped attract
new businesses to the area, has retained existing businesses, and creating a core area of antique
stores, specialty shops, and restaurants. Restored historic buildings also add to the downtown’s
character, including the Old City Hall and Train Depot. However, some vacant storefronts persist
and the City is focusing additional efforts at revitalizing these spaces. Within the past decade major
projects including the Downtown Streetscape, the Camino Arroyo Bridge, the New Gilroy Library,
and the Aquatics Center at Christopher High School have been added as significant assets to the
community. The new Gilroy Library was completed in the spring of 2012 under budget and ahead
of schedule.
The City’s capital improvement plan (CIP) provides a 5-year window of projects to be completed
within the CIP horizon. The financial health of the capital improvement funds have improved over
the last few years as a result of new development.
Long-term financial planning and major initiatives
The City’s general fund balance as of June 30, 2020 was $14.9 million. In June 2017, City Council
adopted a general fund reserve policy of retaining a general fund reserve equal to 20% of annual
general fund expenditures, or approximately $11.6 million at budget adoption for FY 20. The
policy also adopted a separate economic stability reserve that is used only for limited purposes, at
10% of general fund expenditures, or approximately $5.8 million.
Near the end of FY 20, the City realized significant financial and operational impacts as a result
of the Covid-19 pandemic. The City immediately implemented a Financial Recovery Plan which
included the use of the Economic Uncertainty Fund and instituted workforce reductions that
stabilized the City’s fiscal health. As part of the recovery plan, the City also implemented long-
term expenditure adjustments to address a known structural imbalance. These measures were
made to ensure that City maintained its’ long-standing fiscal health for years to come and to this
point have achieved the desired results.
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Award and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Gilroy for its comprehensive annual financial
report (CAFR) for the fiscal year ended June 30, 2019. This was the sixth consecutive year that
the government achieved this prestigious award. In order to be awarded a Certificate of
Achievement, the government had to publish an easily readable and efficiently organized CAFR
that satisfied both generally accepted accounting principles and applicable program requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one
year only. However, we believe that our current CAFR continues to meet the Certificate of
Achievement for Excellence in Financial Reporting Program’s requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the skill, diligence, and
commitment of the entire staff of the Finance Department, and specifically Finance Manager
Rosemary Guerrero. We wish to thank all government departments for their assistance in providing
the data necessary to prepare this report. Credit also is due to the Mayor and the City Council for
their continuing support for maintaining the highest standards of professionalism in the
management of Gilroy’s finances and prioritizing the goal of financial sustainability.
Respectfully submitted,
Jimmy Forbis
City Administrator
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City of Gilroy
Elected Officials & City Staff
As of Fiscal Year End - June 30, 2020
ELECTED OFFICIALS
Roland Velasco Mayor
Marie Blankley Mayor Pro Tempore
Dion Bracco Council Member
Carol Marques Council Member
Peter Leroe-Muñoz Council Member
Cat Tucker Council Member
Fred Tovar Council Member
CITY STAFF
Jimmy Forbis (Interim) City Administrator
Shawna Freels City Clerk
Karen Garner Community Development Director
Jimmy Forbis Finance Director
Mark Bisbee (Interim) Fire Chief
LeeAnn McPhillips Human Resources Director/Risk Manager
Scot Smithee Police Chief
Girum Awoke Public Works Director
Maria DeLeon Recreation Director
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CITY COUNCILADMINISTRATIVE ORGANIZATION CITY ATTORNEY Andy Faber CITY CLERK Shawna Freels COMMUNITY & ENGAGEMENT MANAGER Rachelle Bedell SR. MANAGEMENT ANALYST Trevin W. Barber MANAGEMENT ASSISTANT OFFICE ASSISTANT II COMMUNITY DEVELOPMENTKaren Garner PUBLIC WORKSGirum Awoke FINANCEJimmy Forbis HUMAN RESOURCESLeeAnn McPhillips RECREATIONMaria De Leon POLICEScot Smithee ENVIRONMENTAL SERVICESFIRE PREVENTION/HAZARDOUS MATERIALSPLANNINGOPERATIONSPARKS WATER STREETS, SEWERS, TREES FACILITIES FLEET ENGINEERINGTRANSPORTATION/TRAFFIC DEVELOPMENT CAPITAL PROJECTS SCRWAGENERAL ACCOUNTING ACCOUNTS PAYABLE PAYROLL INFORMATION TECHNOLOGY ADMINISTRATION CITY ADMINISTRATOR Jimmy Forbis (Interim) FIREMark Bisbee (Interim) OPERATIONS EMS/TRAINING ADMINISTRATIVE SUPPORTLABOR RELATIONS EMPLOYEE BENEFITS RECRUITMENT/SELECTION RISK MANAGEMENT/ WORKERS COMP CLASSIFICATION/ COMPENSATION EMPLOYEE TRAINING & DE-VELOPMENT ADAPTIVE AFTER SCHOOL AQUATICS ADULT & YOUTH SPORTS CONTRACT CLASSES CULTURAL ARTS EARLY CHILDHOOD RECREA-TION MUSEUM PARK & FACITIES RESERVA-TIONS SENIOR CENTER SPECIAL EVENITS SUMMER DAY CAMP VOLUNTEERS YOUTH CENTER YOUTH SCHOLARSHIP FIELD OPERATIONSBUILDINGHOUSING AND COMMUNITY DEVELOPMENTCODE ENFORCEMENTSPECIAL OPERATIONS TRAFFIC UNIT INVESTIGATIONS ANTI-CRIME TEAM YOUTH TASK FORCE ADMIN. SERVICES RECORDS COMMUNICATIONS ADMINISTRATIONBUDGET UTILITY BILLING PURCHASING 10.A.b
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City of Gilroy Map
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viii
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Report on the Financial Statements
We have audited the accompanying 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 City of
Gilroy, California (the “City”) as of and for the year ended June 30, 2020, and the related notes to the basic financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.com
3939352 Pun & McGeady_L_final.pdf 2 1/14/14 3:48 PM
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To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Page 2
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position 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, as of June 30, 2020, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion
and Analysis, the Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related
Ratios, the Schedules of Contributions – Pensions, the Schedule of Changes in Net Other Postemployment Benefits
Liability and Related Ratios, and the Schedule of Contributions – Other Postemployment Benefits on pages 5 to 14
and 92 to 101 be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the Required supplementary Information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The Introductory Section, the Combining and Individual Nonmajor Fund
Financial Statements, Additional Schedules, and the Statistical Section are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The Combining and Individual Nonmajor Fund Financial Statements are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and the Statistical Sections, and Additional Schedules have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
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Packet Pg. 64 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
To the Honorable Mayor and the Members of the City Council
of the City of Gilroy
Gilroy, California
Page 3
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 1, 2021 on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
February 1, 2021
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City of Gilroy
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2020
5
The following discussion and analysis of the financial performance of the City of Gilroy provides an overview of the
City’s financial activities for the fiscal year ended June 30, 2020 (FY 20). Please read it in conjunction with the
financial statements identified in the accompanying table of contents.
Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of
Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s
finances. Also included in the accompanying report are fund financial statements. For governmental activities, the fund
financial statements tell how these services were financed in the short term as well as what remains for future spending.
Fund financial statements also report the City’s operations in more detail than the government -wide statements by
providing information about the City’s most significant funds. The remaining statements provide financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements.
FINANCIAL HIGHLIGHTS
• The City’s overall net position decreased from FY 19 primarily due to revenue decline in sales tax, plan check
and inspection revenue, and building permit revenue. As of June 30, 2020, the City’s governmental funds reported
a combined ending fund balance of $72.0 million, a decrease of $11.5 million.
• The FY 20 General Fund final budget revenue amount of $56.5 million was higher than the actual amount of
$51.3 million. The difference of $5.2 million was due in part to lower than anticipated Sales Tax revenue, Plan
Check and Inspection Fee revenue, and Building Permit revenue.
• General Fund revenue overall was lower than budgeted for certain revenue types. While property tax revenue
was approximately $0.9 million more, and utility tax was $0.7 million more than anticipated, sales tax revenue
was $3.3 million less, and transient occupancy tax revenue was $0.7 million less than anticipated.
• The FY 20 amended General Fund budget expenditure amount of $60.8 million was higher than the actual amount
of $56.1 million due to departmental savings, including personnel savings resulting from vacant positions and
one-time expenditures that were not completed in FY 20. In addition, the City maintained its conservative
spending practices during the fiscal year.
• The general fund reserve as of June 30, 2020 decreased by $12.9 million to $14.9 million which is 26% of actual
FY 20 expenditures.
• Total City’s long-term debt decreased by $3.8 million due to principal reduction payments and amortization of
premium of $22.9 and new bond proceeds from Library GO Bond Series B of $19.1 million.
10.A.b
Packet Pg. 67 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
6
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial
statements, required supplementary information, and a section that presents combining statements for nonmajor
governmental funds, internal service funds and fiduciary funds. The basic financial statements include two kinds of
statements that present different views of the City:
• The first two statements are government-wide financial statements that provide both long-term and short-term
information about the City’s overall financial status.
• The remaining statements are fund financial statements that focus on individual parts of the City government,
reporting the City’s operations in more detail than the government-wide statements.
• The governmental funds statements tell how general government services like public safety were
financed in the short term as well as what remains for future spending.
• Proprietary funds statements offer short-term and long-term financial information about the activities
the government operates like businesses, such as the water and sewer system.
• Fiduciary funds statements provide information about the fiduciary relationships – like the agency
funds of the City – in which the City acts solely as agent or trustee for the benefit of others, to whom
the resources in question belong.
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of required supplementary information that provides
additional financial and budgetary information.
Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City
government they cover and the types of information they contain. The remainder of this overview section of
management’s discussion and analysis explains the structure and contents of each of the statements.
10.A.b
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
7
Figure A-1
Major Features of the City’s Government-wide and Fund Financial Statements
Fund Statements
Government-wide Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
Scope Entire City government
(except fiduciary funds) and
the City’s component units
The activities of the
City that are not
proprietary or fiduciary
Activities the City
operates similar to
private businesses
Instances in which the
City is the trustee or
agent for someone
else’s resources
Required
financial
statements
• Statement of net position
• Statement of activities
• Balance sheet
• Reconciliation to
the balance sheet
to the statement of
net position
• Statement of
revenues,
expenditures and
changes in fund
balances
• Reconciliation of
the statement of
revenues,
expenditures and
changes to fund
balances to the
statement of
activities
• Statement of net
position
• Statement of
revenues,
expenses and
changes in net
position
• Statement of cash
flows
• Statement of
fiduciary net
position
• Statement of
changes in
fiduciary net
position
Accounting
basis and
measurement
focus
Accrual accounting and
economic resources focus
Modified accrual
accounting and current
financial resources
focus
Accrual accounting
and economic
resources focus
Accrual accounting no
measurement focus
Type of asset/
liability
information
All assets, liabilities, and
deferred inflows/outflows of
resources, both financial and
capital, and short-term and
long-term
Only assets expected to
be used up and
liabilities that come
due during the year or
soon thereafter; no
capital assets or long-
term debt included
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
All assets and
liabilities, both short-
term and long-term;
the City’s fiduciary
funds do not currently
contain capital assets,
although they can.
Type of inflow/
outflow
information
All revenues and expenses
during year, regardless of
when cash is received or paid
Revenues for which
cash is received during
or soon after the end of
the year; expenditures
when goods or services
have been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the
year, regardless of
when cash is received
or paid
All revenues and
expenses during year,
regardless of when
cash is received or
paid.
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
8
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the
City as a whole. One of the most important questions asked about the City’s finances is, “Is the City as a whole better
off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities
report information about the City as a whole and about its activities in a way that helps answer this question. These
statements include all assets, deferred outflows of resources and liabilities using the accrual basis of accounting, which
is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are
considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. You can think of the City’s net position – the
difference between assets and deferred outflow of resources, and liabilities and deferred inflow of resources– as one way
to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net
position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other
nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s roads, to
assess the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
• Governmental activities - Most of the City’s basic services are reported here. Sales taxes, property taxes,
and other revenues finance most of these activities.
• Business-type activities - The City charges a fee to customers to help it cover all or most of the cost of the
services accounted for in these funds.
Reporting the City’s Major Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a
whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes
many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative
responsibilities for using certain taxes, grants, or other money (such as grants received). The City’s two kinds of funds
– governmental and proprietary – use different accounting approaches.
• Governmental funds - Most of the City’s basic services are reported in governmental funds, which focus on
how money flows into and out of those funds and the balances left at year end that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures
cash and all other current financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short- term view of the City’s general government operations and the basic
services it provides. Governmental fund information helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City’s programs. We describe the
relationship or differences between governmental activities (reported in the Statement of Net Position and
the Statement of Activities) and governmental funds in reconciliations following the fund financial
statements.
• Proprietary funds - When the City charges customers for the services it provides - whether to outside
customers or to other units of the City - these services are generally reported in proprietary funds. Proprietary
funds are reported in the same way that all activities are reported in the Statement of Net Position and the
Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as
the business-type activities we report in the government-wide statements but provide more detail and
additional information, such as cash flows for proprietary funds. We use internal service funds (the other
component of proprietary funds) to report activities that provide supplies and services for the City’s other
programs and activities.
10.A.b
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
9
Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the
City’s fiduciary activities are reported in a separate Statement of Fiduciary Assets and Liabilities. We exclude these
activities from the City’s other financial statements because the City cannot use these assets to finance its operations.
The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
A summary of the government-wide statement of net position (in millions) follows:
2020 2019 2020 2019 2020 2019
Cash and investments $ 95.3 $ 102.4 $ 44.5 $ 41.6 $ 139.8 $ 144.0
Other Assets 10.6 12.0 73.7 73.0 84.3 85.0
Capital Assets 216.7 219.8 91.4 91.1 308.1 310.9
Total Assets 322.6 334.2 209.6 205.7 532.2 539.9
Deferred Outflows 13.7 16.2 2.5 0.7 16.2 16.9
Other Liabilities 13.7 12.7 3.7 4.1 17.4 16.8
Long term liabilities outstanding 151.4 154.8 20.6 19.4 172.0 174.2
Total Liabilities 165.1 167.5 24.3 23.5 189.4 191.0
Deferred Inflows 4.8 4.7 0.8 0.1 5.6 4.8
Net Position
Net investment in capital assets 151.9 156.9 86.5 91.1 238.4 248.0
Restricted 57.1 50.7 0.0 0.0 57.1 50.7
Unrestricted (42.6) (29.4) 100.5 91.7 57.9 62.3
Total Net Position $ 166.4 $ 178.2 $ 187.0 $ 182.8 $ 353.4 $ 361.0
Governmental Activities Business-Type Activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
10
A summary of the government-wide statement of activities follows:
Changes in Net Position (In millions):
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services 9.4$ 12.6$ 27.5$ 25.2$ 36.9$ 37.8$
Operating grants and contributions 14.2 14.1 - 14.2 14.1
Capital grants and contributions 1.9 6.5 2.4 4.2 4.3 10.7
General revenues:
Taxes 41.6 43.2 - - 41.6 43.2
Investment income 2.0 2.8 - - 2.0 2.8
Miscellaneous 0.2 - 1.2 1.3 1.4 1.3
Total revenues 69.3 79.2 31.1 30.7 100.4 109.9
Expenses:
General government 6.1 7.4 - - 6.1 7.4
Public safety 40.1 32.8 - - 40.1 32.8
Public Works 23.5 20.8 - - 23.5 20.8
Community development 8.6 7.7 - - 8.6 7.7
Interest expense 2.4 3.3 - - 2.4 3.3
Water and Sewer - - 27.3 31.9 27.3 31.9
Reclaimed water - - - - - -
Total expenses 80.7 72.0 27.3 31.9 108.0 103.9
Change in net position before special item and
extraordinary loss and transfers (11.4) 7.2 3.8 (1.2) (7.6) 6.0
Transfers (0.4) (0.6) 0.4 0.6 - -
Speical Items - - - (2.3) - (2.3)
Change in net position (11.8) 6.6 4.2 (2.9) (7.6) 3.7
Net position, beginning of year (as restated)178.2 171.6 182.8 185.7 361.0 357.3
Net position, end of year 166.4$ 178.2$ 187.0$ 182.8$ 353.4$ 361.0$
Business-Type Activities TotalGovernmental Activities
The increase or decrease in net position can provide an indication as to whether the overall financial position of the
City improved or deteriorated during the year. The net position of the City’s governmental activities decreased between
years primarily due to decreased revenue due to the financial and operational impacts as a result of the COVID-19
pandemic. See below for a discussion of the change in capital assets.
The net position of the City’s business activities also decreased slightly between years. See below for a discussion of
the change in capital assets.
Charges for services for governmental activities decreased between years primarily due to decreased plan check and
inspection fees, and building permit fees from FY 19. Additionally, sales tax revenue and interest income decreased from
FY 19. Capital contributions for business-type activities decreased between years due to a reduction in the investment
and completion of sewer improvement projects.
10.A.b
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
11
MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to
demonstrate compliance with finance-related legal requirements.
Major Governmental Funds. The General Fund is the chief operating fund of the City. In the financial statements for
the year ended June 30, 2011, the City began combining its Sidewalk Repair, Library Reserve, Golf Course and
Community Recreation special revenue funds with the City’s General Fund for financial statement presentation as
required under GASB 54. At the end of FY 20, the total fund balance of the general fund (as presented in the
aforementioned manner) was $14.9 million.
Revenues decreased between the years ended June 30, 2019 and June 30, 2020 primarily as a result of decreased sales
tax revenue, and decreased charges for services in the areas of plan check and inspection fees, and building permits.
Near the end of FY 20, the City realized significant financial and operational impacts as a result of the COVID-19
pandemic.
The Public Facilities Impact Capital Projects Fund has a total fund deficit of $6.3 million. In the year ended
June 30, 2006 several impact funds were consolidated into this fund. In February 2008, this fund borrowed $13.7
million from several funds for the purchase of Gilroy Gardens. See Note 4, in the Notes to the Basic Financial
Statements for additional information.
Major Enterprise Funds. Unrestricted net position of the Sewer Fund at the end of the year amounted to $82.6 million
and for the Water Fund amounted to $17.9 million.
GENERAL FUND
The final budgeted operating expenditures of the General Fund were $60.8 million. The actual operating expenditures
of the General Fund were $56.1 million, approximately $4.7 million less than the final budget. The difference is
primarily due to savings in personnel and departmental expenditures. In the last quarter of FY 20, the City enacted
numerous expenditure adjustments to minimize the use of the City’s Unrestricted General Fund Reserve. At the time,
the City expected to utilize the entire Economic Stability Reserve (ESR) and to a great extent did so. As the COVID-
19 pandemic has continued to impact both the City’s operational and financial performance, the City now expects to
utilize the remaining ESR in FY 21 while the City awaits the return of a more normal economic environment. The ESR
has been used for the purposes it was originally intended – to allow the City (as much as possible) to maintain service
levels in the event of a severe economic downturn.
In June 2017, the City Council adopted a new general fund reserve policy that consisted of (i) an unrestricted General
Fund Reserve of 20% of general fund expenditures and (ii) an Economic Stability Reserve of 10% of general fund
expenditures that is intended to help the City weather a severe economic crisis. The following table summarizes the
adopted general fund reserve policy:
General Fund Reserve Description of Use Amount
Unrestricted Unbudgeted costs or revenue shortfall
Economic Stability Specific triggers in severe economic
downturn
Minimum of 20% of
expenditures
Minimum of 10% of
expenditures
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
12
The Economic Stability Reserve shall only be used in extraordinary circumstances, upon satisfaction of one of the
following “economic triggers” and with the majority vote of the City Council:
• State take-away of significant revenue
• Large drop in property taxes (decrease in assessed valuations)
• Major business closures (sales tax and/or utility users’ tax impact)
• Dramatic drop in development from projections
• Large unexpected drop in sales taxes (or other primary revenues - utility users’ tax, franchise fees or
transient occupancy tax) due to severe recession
• The economic triggers cause the General Fund Reserve to fall below a predetermined percentage of
expenditures (e.g., 20%).
When the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next
biennial budget to 10% of the general fund expenditures for the given year.
CAPITAL ASSETS
Capital Assets (net of depreciation) (In millions):
2020 2019 2020 2019 2020 2019
Land $ 21.3 $ 21.3 $ - $ - $ 21.3 $ 21.3
Construction in progress 8.8 4.6 7.6 5.8 16.4 10.4
Buildings and structures 77.8 80.9 - - 77.8 80.9
Infrastructure/water mains
and lines/sewer mains 101.4 105.3 83.8 85.3 185.2 190.6
Furniture and equipment 7.4 7.6 - - 7.4 7.6
Total $ 216.7 $ 219.7 $ 91.4 $ 91.1 $ 308.1 $ 310.8 .
Governmental activities Business-Type activities Total
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
13
The major changes to capital assets during the year ended June 30, 2020 were as follows:
• Buildings and improvements for governmental activities decreased primarily as a result of depreciation.
• Furniture and equipment for governmental activities decreased as a result of depreciation.
• Vehicles for governmental activities increased due to several major vehicle purchases, offset by
depreciation expense.
• IT equipment and software for governmental activities decreased as a result of depreciation.
• Infrastructure for governmental activities decreased due to depreciation and assets reaching end of life,
partially offset by additions in medians, storm drains, streetlights, pavement, sidewalk, and curb and
gutter.
• Construction in progress for governmental activities increased due to numerous projects that have started
and will be completed in FY 21.
• Utility system capital assets for business-type activities decreased as a result of depreciation and assets
reaching end of life.
• Construction in progress for business-type activities increased due to the transfer of completed assets to
the utility system.
Additional information on the City’s capital assets can be found in the Notes 1I and 5 to the Basic Financial Statements.
LONG-TERM DEBT
As of June 30, 2020, the City’s governmental activities had bonded debt outstanding of $64.2 million. Of this amount,
$26.6 million represents general obligation bonds secured solely by specified revenue sources. The remaining debt of
$36.7 million represents refunding revenue bonds and a loan payable of $0.9.
2020 2019
Loan Payable 857,429$ 948,011$
General Obligation Bonds 26,630,459 27,983,538
Refunding Revenue Bonds 36,713,218 39,097,182
Total Long-Term Debt 64,201,106$ 68,028,731$
The City issued Certificates of Participation 2003 Series, in the amount of $45,900,000 to fund several capital projects.
These debt instruments were refinanced in August 2009 with bond anticipation notes (BANs). In 2010 the City
refinanced its 2009 BANs with 50% fixed-rate, long- term lease revenue bonds (LRBs) (with a final maturity in 2033)
and 50% three-year short-term BANs. These BANs were scheduled to mature on November 1, 2013 and were
refinanced in August 2013 with LRBs. See Note 8 in the Notes to the Basic Financial Statements for a further discussion.
The City issued $10.5 million principal amount of General Obligation Bonds 2009 Series to finance the acquisition,
construction and improvement of facilities to be used as a public library within the City. In FY 11, the City issued an
additional $23.5 million principal amount of General Obligation Bonds 2010 Series for the library. The bonds were
refunded on June 26, 2019 with proceeds from the 2019 General Obligation Refunding Bonds, Series A. See Note 8 in
the Notes to the Basic Financial Statements for additional information.
The City’s long-term business-type debt includes Wastewater Revenue Bonds of $7,080,000. See Note 8 for additional
information.
Additional information on the City’s long-term debt can be found in the Notes to the Basic Financial Statements.
10.A.b
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City of Gilroy
Management’s Discussion and Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2020
14
Budgetary Highlights
See the Required Supplementary Information in the City’s financial statements for a comparison of the City’s budgeted
revenues and expenditures to actual revenues and expenditures. When preparing its budget, the City projects its
revenues using realistic, but conservative methods so as to budget its expenditure appropriations in a prudent manner.
As the City had adequate reserves, funds were utilized from the unrestricted fund balance to augment revenue shortfalls
during the year. As previously noted, the City has two unrestricted reserve levels – the Unrestricted General Fund
Reserves and the Economic Stability Reserve, the latter being partially utilized in FY 20. The City continues to monitor
and make adjustments as necessary to ensure that there will be no need to utilize Unrestricted General Reserves.
In addition, the City continued economic incentive transfers from the general fund to the impact funds, to make these
funds whole for the previously granted incentives.
Economic Factors and Fiscal Year 20 Budgets
For the first three-quarters of FY 20 the City continued to experience a healthy economy as evidenced by the increase
in sales tax and property tax receipts during that period, however on March 13, 2020 the City ceased in-person
operations as a results of the Santa Clara County (SCC) Public Health “Stay-At-Home” order which also closed most
of the City’s businesses to in-person activity. The results of this event were immediate and significant and at the time,
the City forecasted an annual loss of 20% of its’ sales tax revenue. To date, that assumption has proved to be accurate.
The City has continually shown the will to address its’ issues head-on and as a result the City not only weathered the
initial financial impacts of the COVID-19 pandemic, but it is also primed and ready to respond to ongoing challenges
the pandemic is most likely to present. The City has always taken a conservative approach in its spending in order to
maintain a balanced budget – for and on behalf of the community – and will continue to be financially prudent during
the current biennial budget.
The City regularly reviews its revenues and expenditures and reports to the City Council to keep both the Council and the
residents apprised of its current fiscal health and to ensure the adequate protection of the City’s financial resources.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview
of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this
report or need additional financial information, contact the Finance Director’s Office, at the City of Gilroy, 7351 Rosanna
Street, Gilroy, California 95020.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Discrete
Component Unit
South Regional
Governmental Business-Type Wastewater
Activities Activities Total Authority
ASSETS
Current assets:
Cash and investments 90,642,564$ 41,858,353$ 132,500,917$ -$
Cash and investments with fiscal agent 4,697,482 2,665,006 7,362,488 -
Accounts receivable 90,823 3,639,635 3,730,458 -
Due from other governments 4,929,016 - 4,929,016 -
Inventory 147,311 470,571 617,882 -
Prepaid items 110,821 - 110,821 -
Interest receivable 1,172,875 - 1,172,875 -
Loans receivable 3,392,599 - 3,392,599 -
Due from primary government - - - -
Due from joint venture 1,044,367 1,044,367 -
Total current assets 105,183,491 49,677,932 154,861,423 -
Noncurrent assets:
Land held for resale 706,754 - 706,754 -
Investment in joint venture (Note 6) - 68,502,785 68,502,785 -
Capital assets - nondepreciable 30,092,317 7,603,111 37,695,428 -
Capital assets - depreciable, net 186,655,090 83,803,970 270,459,060 -
Total noncurrent assets 217,454,161 159,909,866 377,364,027 -
Total assets 322,637,652 209,587,798 532,225,450 -
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding - 124,254 124,254 -
Deferred outflows of resources related to pensions 12,871,991 2,172,815 15,044,806 -
Deferred outflows of resources related to OPEB 800,597 168,531 969,128 -
Total deferred outflows of resources 13,672,588 2,465,600 16,138,188 -
Primary Government
City of Gilroy
Statement of Net Position
June 30, 2020
See accompanying Notes to the Basic Financial Statements
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Discrete
Component Unit
South Regional
Governmental Business-Type Wastewater
Activities Activities Total Authority
LIABILITIES
Current liabilities:
Accounts payable 3,067,774$ 1,091,382$ 4,159,156$ -$
Accrued payroll and benefits 2,733,556 - 2,733,556 -
Deposits payable - 57,670 57,670 -
Interest payable 641,509 147,500 789,009 -
Unearned revenues 2,726,102 - 2,726,102 -
Due to joint venture 426,788 149,657 576,445 -
Due to the primary government - - - -
Compensated absences due within one year 230,000 27,000 257,000 -
Claims payable due within one year 909,000 - 909,000 -
Long-term debt due within one year 2,957,328 2,260,000 5,217,328 -
Total current liabilities 13,692,057 3,733,209 17,425,266 -
Noncurrent liabilities:
Compensated absences due in more than one year 1,756,656 242,477 1,999,133 -
Claims payable due in more than one year 2,713,445 - 2,713,445 -
Long-term debt due in more than one year 61,243,778 5,285,517 66,529,295 -
Aggregate net pension liabilities 73,684,672 12,488,155 86,172,827 -
Net OPEB liabilities 12,056,601 2,538,001 14,594,602 -
Total noncurrent liabilities 151,455,152 20,554,150 172,009,302 -
Total liabilities 165,147,209 24,287,359 189,434,568 -
DEFERRED INFLOWS OF RESOURCES
Deferred pension-related items 2,495,300 282,048 2,777,348 -
Deferred OPEB-related items 2,299,361 484,032 2,783,393 -
Total deferred inflows of resources 4,794,661 766,080 5,560,741 -
NET POSITION
Net investment in capital assets 151,904,792 86,503,324 238,408,116 -
Restricted for:
Public safety 560,033 - 560,033 -
Community development 8,022,954 - 8,022,954 -
Public works 44,465,113 - 44,465,113 -
Debt service 4,089,661 - 4,089,661 -
Total restricted 57,137,761 - 57,137,761 -
Unrestricted (deficit) (42,674,183) 100,496,635 57,822,452 -
Total net position 166,368,370$ 186,999,959$ 353,368,329$ -$
June 30, 2020
Statement of Net Position (Continued)
City of Gilroy
Primary Government
See accompanying Notes to the Basic Financial Statements
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Capital Grants
Charges for Operating Grants and
Expenses Services and Contributions Contributions
Functions/Programs
Governmental Activities:
General government 6,131,791$ 3,550,758$ 135,442$ -$
Public safety 40,088,865 1,188,951 1,093,696 -
Community development 8,556,959 3,909,360 12,973,930 1,931,458
Public works 23,525,423 715,299 44,567 -
Interest 2,431,588 - - -
Total Governmental Activities 80,734,626 9,364,368 14,247,635 1,931,458
Business-Type Activities:
Sewer 14,668,434 12,872,189 - 1,655,291
Water 12,603,780 14,590,973 - 783,826
Total Business-Type Activities 27,272,214 27,463,162 - 2,439,117
Total Primary Government 108,006,840$ 36,827,530$ 14,247,635$ 4,370,575$
Discrete Component Unit
South County Regional Wastewater
Authority (1)$ -$ -$ -$
City of Gilroy
Statement of Activities
For the Year Ended June 30, 2020
Program Revenues
See accompanying Notes to the Basic Financial Statements
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Discrete
Component Unit
South Regional
Governmental Business-Type Wastewater
Activities Activities Total Authority
Functions/Programs
Governmental Activities:
General government (2,445,591)$ -$ (2,445,591)$ -$
Public safety (37,806,218) - (37,806,218) -
Community development 10,257,789 - 10,257,789 -
Public works (22,765,557) - (22,765,557) -
Interest (2,431,588) - (2,431,588) -
Total Governmental Activities (55,191,165) - (55,191,165) -
Business-Type Activities:
Sewer - (140,954) (140,954) -
Water - 2,771,019 2,771,019 -
Total Business-Type Activities - 2,630,065 2,630,065 -
Total Primary Government (55,191,165) 2,630,065 (52,561,100) -
Discrete Component Unit
South County Regional Wastewater
Authority - - - 1
General Revenues:
Taxes:
Property taxes 15,595,639 - 15,595,639 -
Sales taxes 17,233,882 - 17,233,882 -
Transient occupancy taxes 1,237,812 - 1,237,812 -
Franchise taxes 1,855,622 - 1,855,622 -
Utility users tax 5,177,426 - 5,177,426 -
Real property transfer taxes 489,775 - 489,775 -
Investment earnings 2,039,471 1,169,133 3,208,604 -
Miscellaneous 127,479 - 127,479 -
Transfers (447,847) 447,847 -
Total General Revenues 43,309,259 1,616,980 44,926,239 -
Changes in Net Position (11,881,906) 4,247,045 (7,634,861) 1
Net Position - Beginning, as restated (Note 15)178,250,276 182,752,914 361,003,190 2
Net Position - Ending 166,368,370$ 186,999,959$ 353,368,329$ 3$
Net (Expense) Revenue and Changes in Net Position
City of Gilroy
Statement of Activities (Continued)
For the Year Ended June 30, 2020
See accompanying Notes to the Basic Financial Statements
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FUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
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Capital Debt
Projects Service
Fund Fund
Public Gilroy Other
General Facilities Community Governmental
Fund Impact Library Funds Total
ASSETS
Cash and investments 14,804,080$ 1,277,614$ 1,131,376$ 54,149,031$ 71,362,101$
Receivables:
Accounts 17,623 - - 40,000 57,623
Due from other governments 4,148,570 - 7,140 773,306 4,929,016
Interest - - - 1,172,875 1,172,875
Loans and notes - - - 3,392,599 3,392,599
Due from other funds 470,965 - - - 470,965
Advances from other funds - - - 2,758,836 2,758,836
Prepaid items 18,577 - - - 18,577
Inventories 108,338 - - - 108,338
Land held for resale - - - 706,754 706,754
Restricted assets:
Cash and investments with fiscal agents - - - 2,697,482 2,697,482
Total assets 19,568,153$ 1,277,614$ 1,138,516$ 65,690,883$ 87,675,166$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 804,751$ 131,318$ -$ 900,620$ 1,836,689$
Accrued liabilities 2,197,499 256,509 - 113,000 2,567,008
Unearned revenue 1,707,433 251,104 - 767,565 2,726,102
Due to other funds - - - 470,965 470,965
Advances to other funds - 6,997,367 - - 6,997,367
Due to the component unit - - - 426,788 426,788
Total liabilities 4,709,683 7,636,298 - 2,678,938 15,024,919
Deferred inflows of resources:
Unavailable revenues - - - 675,970 675,970
Total deferred inflows of resources - - - 675,970 675,970
Fund balances:
Nonspendable 126,915 - - 706,754 833,669
Restricted - - 1,138,516 56,283,167 57,421,683
Assigned - - - 5,368,008 5,368,008
Unassigned (deficit)14,731,555 (6,358,684) - (21,954) 8,350,917
Total fund balances 14,858,470 (6,358,684) 1,138,516 62,335,975 71,974,277
Total liabilities, deferred inflows
of resources, and fund balances 19,568,153$ 1,277,614$ 1,138,516$ 65,690,883$ 87,675,166$
City of Gilroy
Balance Sheet
June 30, 2020
Governmental Funds
See accompanying Notes to the Basic Financial Statements
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Total Fund Balances - Total Governmental Funds 71,974,277$
Nondepreciable, net of $969,219 reported in Internal Service Fund 29,123,098$
Depreciable, net of $5,004,841 reported in Internal Service Fund 181,650,249 210,773,347
Bonds payable (62,340,459)$
Premium on bonds payable (1,003,218)
Loans payable (857,429)
Interest payable (641,509)
Compensated absences, net of $119,999 reported in Internal Service Fund (1,866,657) (66,709,272)
Pension related deferred outflows of resources 12,871,991$
Aggregate net pension liability (73,684,672)
Pension related deferred inflows of resources (2,495,300) (63,307,981)
OPEB related deferred outflows of resources 800,597$
Aggregate net OPEB liability (12,056,601)
OPEB related deferred inflows of resources (2,299,361) (13,555,365)
675,970
26,517,394
Net Position of Governmental Activities 166,368,370$
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All
liabilities, both current and long-term, are reported in the Statement of Net Position:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in
the Governmental Funds Balance Sheet.
Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment
replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the
governmental activities in the Government-Wide Statement of Net Position.
Revenue reported as unavailable revenue in the governmental funds when it is not received soon enough after year-end to
be considered available. The availability criteria does not apply to the Government-Wide Financial Statements and,
therefore, the revenue is recognized when eligibility requirements are met and earned.
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund
financial statements:
Net OPEB liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and
payable in the current period or not available for current expenditures and are not reported in the governmental fund
financial statements:
City of Gilroy
Reconciliation of the Governmental Funds Balance Sheet to the
June 30, 2020
Government-Wide Statement of Net Position
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:
See accompanying Notes to the Basic Financial Statements
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Capital Debt
Projects Service
Fund Fund
Public Gilroy Other
General Facilities Community Governmental
Fund Impact Library Funds Total
Revenues:
Taxes 41,634,421$ -$ 1,921,576$ 713,940$ 44,269,937$
Intergovernmental 196,685 - - 5,276,844 5,473,529
Charges for services 5,872,162 3,679,043 - 4,400,617 13,951,822
Licenses and permits 1,776,651 - - - 1,776,651
Fines and forfeitures 282,535 - - - 282,535
Investment income 489,509 78,375 97,797 1,218,468 1,884,149
Miscellaneous 1,011,718 - - 336,412 1,348,130
Total revenues 51,263,681 3,757,418 2,019,373 11,946,281 68,986,753
Expenditures:
Current:
General government 6,200,542 - 129,296 31,204 6,361,042
Public safety 35,693,586 - - 1,174,301 36,867,887
Community services 7,897,645 - - - 7,897,645
Community development 6,347,065 3,277,318 - 9,518,860 19,143,243
Debt service:
Principal retirement - - 1,090,630 1,895,582 2,986,212
Interest and fiscal charges - 102,559 1,123,892 1,785,256 3,011,707
Total expenditures 56,138,838 3,379,877 2,343,818 14,405,203 76,267,736
Revenues over (under)
expenditures (4,875,157) 377,541 (324,445) (2,458,922) (7,280,983)
Other financing sources (uses):
Bond proceeds - - 19,087,551 - 19,087,551
Payment to refunded bond escrow - - (19,350,000) - (19,350,000)
Transfers in 239,510 40,762 - 8,657,712 8,937,984
Transfers out (8,265,753) (3,594,976) - (1,045,268) (12,905,997)
Total other financing sources (uses)(8,026,243) (3,554,214) (262,449) 7,612,444 (4,230,462)
Net Change in Fund Balances (12,901,400) (3,176,673) (586,894) 5,153,522 (11,511,445)
Fund balances:
Beginning of year 27,759,870 (3,182,011) 1,725,410 57,182,453 83,485,722
End of year 14,858,470$ (6,358,684)$ 1,138,516$ 62,335,975$ 71,974,277$
City of Gilroy
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2020
See accompanying Notes to the Basic Financial Statements
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Net Change in Fund Balances - Total Governmental Funds (11,511,445)$
Capital outlay, net of $1,566,359 in Internal Service Fund 7,070,839$
Depreciation, net of $716,351 in Internal Service Funds (10,957,543) (3,886,704)
(89,724)
(19,087,551)
Bonds payable 22,245,630$
Loans payable 90,582 22,336,212
1,155
578,964
(245,056)
(3,091,814)
(234,503)
3,348,560
Change in Net Position of Governmental Activities (11,881,906)$
Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental
funds.
Governmental activities in the Statement of Activities were reported differently because:
City of Gilroy
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes
For the Year Ended June 30, 2020
in Fund Balances to the Government-Wide Statement of Activities
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment
replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.
Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds.
Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds.
Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of
current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental
funds.
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as
revenue in the Statement of Activities.
Amortization of bond discount was recognized in interest expense on the Government-Wide Statement of Activities, but
did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an
expenditure in the governmental funds.
Proceeds from the issuance of long-term debt is not a revenue in the Statement of Activities, but is reported as a liability on
the Government-Wide Statement of Net Position.
Principal repayment on long-term debt is not an expense in the Statement of Activities, but is considered an expenditure in
governmental funds.
Interest accrued on long-term debt is reported in the Statement of Activities, but does not require the use of current
financial resources. Therefore, accrued interest is not reported as an expenditure in governmental funds. This amount
represents the change in accrued interest from the prior year.
See accompanying Notes to the Basic Financial Statements
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PROPRIETARY FUND FINANCIAL STATEMENTS
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
ASSETS
Current assets:
Cash and investments 18,610,720$ 23,247,633$ 41,858,353$ 19,280,463$
Cash and investments with fiscal agent 2,665,006 - 2,665,006 2,000,000
Accounts Receivable 1,685,038 1,954,597 3,639,635 33,200
Inventory of materials - 470,571 470,571 38,973
Prepaid items - - - 92,244
Investment in joint venture 1,044,367 - 1,044,367 -
Total current assets 24,005,131 25,672,801 49,677,932 21,444,880
Noncurrent assets:
Interfund loans receivable (Note 3) - - - 4,238,531
Investment in joint venture (Note 5) 68,502,785 - 68,502,785 -
Capital assets:
Capital assets, not depreciated - 7,603,111 7,603,111 969,219
Capital assets, depreciated, net 33,116,971 50,686,999 83,803,970 5,004,841
Total noncurrent assets 101,619,756 58,290,110 159,909,866 10,212,591
Total assets 125,624,887 83,962,911 209,587,798 31,657,471
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 124,254 - 124,254 -
Deferred outflows of resources related to pension 1,116,985 1,055,830 2,172,815 -
Deferred outflows of resources related to OPEB 76,658 91,873 168,531 -
Total deferred outflows of resources 1,317,897 1,147,703 2,465,600 -
June 30, 2020
Proprietary Funds
Statement of Net Position
City of Gilroy
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
LIABILITIES
Current liabilities:
Accounts payable 223,872 867,510 1,091,382 1,231,085
Accrued liabilities - - - 166,548
Deposits payable - 57,670 57,670 -
Interest payable 147,500 - 147,500 -
Due to joint venture 149,657 - 149,657 -
Compensated absences, current portion 13,000 14,000 27,000 12,000
Claims payable, current portion - - - 909,000
Bond payable, current portion 2,260,000 - 2,260,000 -
Total current liabilities 2,794,029 939,180 3,733,209 2,318,633
Noncurrent liabilities:
Compensated absences 114,056 128,421 242,477 107,999
Claims payable - - - 2,713,445
Bond payable 5,285,517 - 5,285,517 -
Net pension liability 6,419,821 6,068,334 12,488,155 -
Net OPEB liability 1,154,433 1,383,568 2,538,001 -
Total noncurrent liabilities 12,973,827 7,580,323 20,554,150 2,821,444
Total liabilities 15,767,856 8,519,503 24,287,359 5,140,077
DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources related to pension 144,993 137,055 282,048 -
Deferred inflow of resources related to OPEB 220,166 263,866 484,032 -
Total deferred inflows of resources 365,159 400,921 766,080 -
NET POSITION
Net investment in capital assets 28,213,214 58,290,110 86,503,324 5,974,060
Unrestricted 82,596,555 17,900,080 100,496,635 20,543,334
Total net position 110,809,769$ 76,190,190$ 186,999,959$ 26,517,394$
City of Gilroy
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2020
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
OPERATING REVENUES:
Charges for services 12,872,189$ 14,572,310$ 27,444,499$ 25,874,719$
Miscellaneous - 18,663 18,663 602,100
TOTAL OPERATING REVENUES 12,872,189 14,590,973 27,463,162 26,476,819
OPERATING EXPENSES:
Operations 9,462,155 9,861,000 19,323,155 23,800,494
Depreciation 1,502,987 1,325,138 2,828,125 716,351
Billing 730,892 730,893 1,461,785 -
Administration 667,733 686,749 1,354,482 323,349
Claims and judgments - - - 838,388
Insurance premiums - - - 1,373,381
TOTAL OPERATING EXPENSES 12,363,767 12,603,780 24,967,547 27,051,963
OPERATING INCOME (LOSS)508,422 1,987,193 2,495,615 (575,144)
NONOPERATING REVENUES (EXPENSES):
Investment income 561,664 607,469 1,169,133 403,538
Interest expense (192,327) - (192,327) -
Share of joint venture net loss (2,112,340) - (2,112,340) -
Total Nonoperating Income (Loss)(1,743,003) 607,469 (1,135,534) 403,538
NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (1,234,581) 2,594,662 1,360,081 (171,606)
TRANSFERS:
Transfers in (Note 3) 693,577 - 693,577 3,520,166
Transfers out (Note 3) (100,000) (145,730) (245,730) -
Capital contributions 1,655,291 783,826 2,439,117 -
TOTAL TRANSFERS AND
CAPITAL CONTRIBUTIONS 2,248,868 638,096 2,886,964 3,520,166
CHANGES IN NET POSITION 1,014,287 3,232,758 4,247,045 3,348,560
NET POSITION:
Beginning of the year, as restated (Note 15) 109,795,482 72,957,432 182,752,914 23,168,834
End of the year 110,809,769$ 76,190,190$ 186,999,959$ 26,517,394$
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position
City of Gilroy
Business-Type Activities
For the Year Ended June 30, 2020
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 12,463,663$ 13,910,570$ 26,374,233$ 26,474,709$
Cash paid to suppliers for goods and services (6,753,426) (7,474,140) (14,227,566) (21,664,293)
Cash paid to employees for services (2,978,161) (3,113,950) (6,092,111) (1,965,240)
Cash paid for insurance claims - - - (2,454,147)
Net Cash Provided by (Used in) Operating Activities 2,732,076 3,322,480 6,054,556 391,029
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 593,577 (145,730) 447,847 3,852,691
Cash payments to joint venture (1,509,334) - (1,509,334) -
Net Cash Provided by (Used in) Noncapital Financing Activities (915,757) (145,730) (1,061,487) 3,852,691
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets 1,146,655 (1,807,812) (661,157) (1,566,359)
Principal paid (2,150,000) - (2,150,000) -
Interest paid (407,750) - (407,750) -
Net Cash (Used in) Capital and Related
Financing Activities (1,411,095) (1,807,812) (3,218,907) (1,566,359)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 561,664 607,469 1,169,133 403,538
Net Cash Provided by Investing Activities 561,664 607,469 1,169,133 403,538
Net Change In Cash and Cash Equivalents 966,888 1,976,407 2,943,295 3,080,899
CASH AND CASH EQUIVALENTS:
Beginning of year 20,308,838 21,271,226 41,580,064 18,199,564
End of year 21,275,726$ 23,247,633$ 44,523,359$ 21,280,463$
CASH AND CASH EQUIVALENTS:
Cash and investments 18,610,720$ 23,247,633$ 41,858,353$ 19,280,463$
Cash and investments with fiscal agent 2,665,006 - 2,665,006 2,000,000
Total cash and cash equivalents 21,275,726$ 23,247,633$ 44,523,359$ 21,280,463$
City of Gilroy
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2020
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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Governmental
Activities
Total Internal
Enterprise Service
Sewer Water Funds Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by Operating Activities:
Operating income (loss) 508,422$ 1,987,193$ 2,495,615$ (575,144)$
Adjustments to reconcile to net cash provided by
Operating activities:
Depreciation 1,502,987 1,325,138 2,828,125 716,351
Noncapital financing activities:
Share of joint venture net loss (603,006) - (603,006) -
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (408,476) (661,563) (1,070,039) (2,110)
(Increase)/decrease in inventory of materials - (152,404) (152,404) 8,582
(Increase)/decrease in prepaid items 2,037 3,463 5,500 (67,242)
(Increase)/decrease in due from joint venture (59,843) - (59,843) -
(Increase)/decrease in investment in joint venture 535,840 - 535,840 -
(Increase)/decrease in deferred outflows of resources
related to pension (188,773) (260,614) (449,387) -
(Increase)/decrease in deferred outflows of resources
related to OPEB (35,210) (42,198) (77,408) -
Increase/(decrease) in accounts payable 33,473 (590,029) (556,556) 513,868
Increase/(decrease) in accrued liabilities - - - 21,019
Increase/(decrease) in deposits payable (50) (18,840) (18,890) -
Increase/(decrease) in due to joint venture 127,009 - 127,009 -
Increase/(decrease) in compensated absences 43,174 39,553 82,727 18,083
Increase/(decrease) in claims payable - - - (242,378)
Increase/(decrease) in net pension liabilities 1,255,630 1,644,077 2,899,707 -
Increase/(decrease) in net OPEB liabilities (26,846) (32,175) (59,021) -
Increase/(decrease) in deferred inflows of resources (38,801) (20,405) (59,206) -
Increase/(decrease) in deferred inflows of resources
related to OPEB 84,509 101,284 185,793 -
Net Cash Provided by Operating Activities 2,732,076$ 3,322,480$ 6,054,556$ 391,029$
Noncash Financing, capital or Investing activities:
Capital assets 1,655,291$ 783,826$ 2,439,117$ -$
City of Gilroy
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2020
Business-Type Activities
See accompanying Notes to the Basic Financial Statements
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FIDUCIARY FUND FINANCIAL STATEMENTS
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Total
Agency
Funds
ASSETS
Cash and investments 4,418,961$
Cash and investments with fiscal agent 291,501
Accounts receivable 6,760
Due from County 1,253
Total assets 4,718,475$
LIABILITIES
Accounts payable 472,499$
Due to bond holders 1,083,959
Unearned revenues 197,173
Deposits payable 2,964,844
Total liabilities 4,718,475$
June 30, 2020
Statement of Fiduciary Assets and Liabilities
City of Gilroy
Fiduciary Funds
See accompanying Notes to the Basic Financial Statements
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NOTES TO THE BASIC FINANCIAL STATEMENTS
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City of Gilroy
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2020
45
Page
Note 1 – Summary of Significant Accounting Policies ..................................................................................... 47
A. Description of the Reporting Entity ............................................................................................... 47
B. Basis of Accounting and Measurement Focus ............................................................................... 48
C. Cash and Investments ..................................................................................................................... 51
D. Interfund Loans Receivable and Payable ....................................................................................... 51
E. Accounts and Due from Other Governments ................................................................................. 52
F. Notes and Loans Receivable .......................................................................................................... 52
G. Inventories ...................................................................................................................................... 52
H. Land Held for Resale ...................................................................................................................... 52
I. Capital Assets ................................................................................................................................. 52
J. Deferred Outflows/Inflows of Resources ....................................................................................... 53
K. Interest Payable .............................................................................................................................. 53
L. Unearned Revenue ......................................................................................................................... 53
M. Compensated Absences .................................................................................................................. 53
N. Net Pension Liability ...................................................................................................................... 54
O. Other Postemployment Benefits Liability ...................................................................................... 54
P. Claims Payable ............................................................................................................................... 54
Q. Net Pension .................................................................................................................................... 55
R. Fund Balances ................................................................................................................................ 55
S. Spending Policy ............................................................................................................................. 56
T. Property Taxes ............................................................................................................................... 56
U. Use of Estimates ............................................................................................................................. 57
V. Implementation of New GASB Pronouncements .......................................................................... 57
Note 2 – Stewardship, Compliance and Accountability ................................................................................... 57
A. Encumbrances ................................................................................................................................ 57
B. Continuing Appropriations ............................................................................................................. 57
C. Deficit Fund Balances/Net Position ............................................................................................... 58
D. Excess of Expenditure Over Appropriations .................................................................................. 58
Note 3 – Cash and Investments .......................................................................................................................... 59
A. Demand Deposits ........................................................................................................................... 59
B. Investments Authorized by the California Government Code and the
City's Investment Policy ................................................................................................................. 60
C. Fair Value Measurements ............................................................................................................... 60
D. Disclosures Relating to Interest Rate Risk ..................................................................................... 61
E. Disclosures Relating to Credit Risk ............................................................................................... 61
F. Concentration of Credit Risk .......................................................................................................... 61
G. Custodial Credit Risk ..................................................................................................................... 62
H. Investment in State Investment Pool .............................................................................................. 62
Note 4 – Interfund Transactions ........................................................................................................................ 63
A. Due to/from Other Funds ............................................................................................................... 63
B. Advances to/from Other Funds ...................................................................................................... 63
C. Transfers ......................................................................................................................................... 64
D. Due to/from Component Unit ........................................................................................................ 64
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City of Gilroy
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
46
Page
Note 5 – Capital Assets ........................................................................................................................................ 65
Note 6 – Investment in Joint Venture ................................................................................................................. 67
Note 7 – Deferred Compensation ........................................................................................................................ 68
Note 8 – Long-Term Liabilities ........................................................................................................................... 68
A. Governmental Activities ................................................................................................................. 68
B. Business-Type Activities ................................................................................................................. 72
C. Debt without Government Commitment ......................................................................................... 73
Note 9 – Defined Benefit Pension Plans (CalPERS) .......................................................................................... 74
A. Summary ......................................................................................................................................... 74
B. General Information about the Pension Plans ................................................................................. 75
C. Net Pension Liability ....................................................................................................................... 77
D. Changes in the Net Pension Liability .............................................................................................. 79
E. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ................... 80
Note 10 – Other Postemployment Healthcare Plan ........................................................................................... 81
Note 11 – Claims Payable .................................................................................................................................... 85
Note 12 – Risk Management ................................................................................................................................ 85
Note 13 – Commitments and Contingencies ...................................................................................................... 86
Note 14 – Classification of Fund Balances ......................................................................................................... 87
Note 15 – Prior Period Adjustments ................................................................................................................... 88
Note 16 – Subsequent Events .............................................................................................................................. 89
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements
For the Year Ended June 30, 2020
47
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Gilroy, California, (the “City”) have been prepared in conformity with
accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies.
The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The following is a summary of the City’s significant
policies:
A. Description of the Reporting Entity
The City was incorporated in 1870 under the general laws of the State of California and became a charter city on
January 8, 1960. The City operates under the Council-Administrator form of government. As required by
accounting principles generally accepted in the United States of America, these financial statements present the City
and its component units, entities for which the City is considered to be financially accountable. The City is
considered to be financially accountable for an organization if the City appoints a voting majority of that
organization’s governing body and the organization is able to provide specific financial benefits to or impose
specific financial burdens on the City. The City is also considered to be financially accountable if an organization
is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue bonded debt
without approval from the City). In certain cases, other organizations are included as component units if the nature
and significance of their relationship with the City are such that their exclusion would cause the City’s financial
statements to be misleading or incomplete.
The Gilroy Public Facilities Financing Authority is considered to be a blended component unit of the reporting
entity of the City because its sole purpose is to finance and construct the City’s public facilities. Blended
component units, although legally separate entities, are in substance, part of the City’s operations and so data
from these units are reported with interfund data of the primary government. The Gilroy Public Facilities
Financing Authority does not issue separate component unit financial statements.
Discretely Presented Component Unit
The South County Regional Wastewater Authority (Authority) was created on July 1, 1992 by the City of
Gilroy and City of Morgan Hill (Member Agencies). The purpose of the Authority is to plan and implement
regional solutions to the wastewater treatment and management problems resulting from the generation of
wastewater within the service areas of the Member Agencies. To achieve this purpose, the Authority constructs,
maintains and operates facilities for sewage treatment and wastewater reclamation. The City of Gilroy has a
58.1% ownership interest in the Authority. The City of Morgan Hill has a 41.9% ownership interest in the
Authority.
The Authority is governed by a Board of Directors, which consists of three members from the Gilroy City
Council and two members from the Morgan Hill City Council.
The Authority’s budget and member contribution requirements are approved by the Board of Directors of the
Authority. The City’s management provides accounting services, engineering services and administrative support
to the Authority, and day-to-day operations associated with the Authority have been contracted directly by the
Authority to a private provider of services for wastewater management and operations. The Authority is presented
in a separate column to emphasize that it is legally separate from the City and provides a financial benefit to the
City. Debt issued by the Authority requires approval by the City, and the City approves the budget of the
Authority.
Complete financial statements of the component unit can be obtained from the City’s administrative offices.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
48
Note 1 – Summary of Significant Accounting Policies (Continued)
A. Description of the Reporting Entity (Continued)
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information about the reporting government as a whole, except for its fiduciary activities. All fiduciary
activities are reported only in the fund financial statements. Governmental activities, which normally are
supported by taxes, intergovernmental revenues and other nonexchange transactions, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from discretely presented component units for which the primary government is
financially accountable.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting
entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund
accounting segregates funds according to their intended purpose and is used to aid management in demonstrating
compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained
in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of
Activities. These statements present summaries of governmental and business-type activities for the City
accompanied by a total column. Fiduciary activities of the City are not included in these statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis
of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as
infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The
Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are
recognized in the period in which they are earned while expenses are recognized in the period in which the
liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal
balances in the Statement of Net Position have been eliminated except those representing balances between the
governmental activities and the business-type activities, which are presented as internal balances and eliminated
in the total primary government column. In the Statement of Activities, internal service fund transactions have
been eliminated; however, those transactions between governmental and business-type activities have not been
eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
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Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures
and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An
accompanying schedule is presented to reconcile and explain the differences between fund balance as presented
in these statements to the net position presented in the Government-Wide Financial Statements. The City has
presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and
the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on
the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in net current
assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected within 60 days
of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to
accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are
recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided
to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds:
General Fund - The General Fund is used to account for resources traditionally associated with governments
which are not required by law or sound financial management to be accounted for in another fund.
Public Facilities Impact Capital Projects Fund - This fund has been established to track expenditures related
to the construction of facilities for public use.
Gilroy Community Library Debt Service Fund – This fund is used to account for payments of the
indebtedness of the 2009 and 2010 General Obligation Bonds for the new Gilroy Community Library.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
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Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses
and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the Government-Wide
Financial Statements. The City’s internal service funds include three individual funds which provide services
directly to other City funds. These areas of service include Garage, Information Technology, and Self-Insurance.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement
of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues)
and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in
the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible
amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of
the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that
are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major enterprise fund:
Sewer Fund - This fund is used to account for sewage stations and collection systems provided by the City to
the public.
Water Fund - This fund is used to account for water services provided by the City to the public.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in
Assets and Liabilities of Agency Funds. These funds have been established to account for assets received
and held by the City while acting in the capacity of an agent or custodian. Cash and deposits are
maintained for activities associated with various associations and third-party projects.
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
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Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash and Investments
The City pools its available cash for investment purposes. Highly liquid market investments with maturities of
one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about
fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial
statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair
value.
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the
measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and
liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would
use in pricing the assets and liabilities at the measurement date.
The statement of cash flows requires presentation of “cash and cash equivalents”. For this purpose, the City
considers all proprietary fund pooled cash and investments as “cash and cash equivalents”, as such funds are
available to the various funds as needed.
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments,
highly sensitive investments, credit quality at year-end and other disclosures.
D. Interfund Loans Receivable and Payable
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans) or advances
to/from other fund (i.e., non-current interfund loans). Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial statements as
“interfund balances”.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
52
Note 1 – Summary of Significant Accounting Policies (Continued)
E. Accounts and Due from Other Governments
All accounts and due from other governments are shown net of any allowance for uncollectible accounts, if
applicable, and estimated refunds due.
F. Notes and Loans Receivable
The accompanying financial statements reflect the recording of certain loans receivable that represent loans
made to various parties for homebuyer and rehabilitation loan programs. Where reasonably estimable, an
allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses
associated with nonrepayment. An estimate of any additional potential losses associated with nonrepayment
cannot be reasonably estimated at this time.
G. Inventories
Inventories are stated at cost using the first-in, first-out (FIFO) method. Inventories recorded in governmental
funds are recorded as an expenditure when used (consumption method). Inventory balances represent expendable
supplies held for consumption. Reported expenditures reflecting the purchase of supplies have been restated to
reflect the consumption method of recognizing inventory-related expenditures. Nonspendable fund balance has
been reported in the governmental funds’ fund financial statements to show that inventories do not constitute
“available spendable resources,” even though they are a component of fund balance.
H. Land Held for Resale
Land held for resale represents land, structures, and their related improvements acquired for resale in accordance
with the objective of the Redevelopment Project. Land held for resale is valued at the lower of cost or the
estimated realizable value determined at the date a disposition and development agreement is executed.
I. Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where
no historical records exist. Contributed capital assets are valued at acquisition value at the date of the
contribution. Generally, capital asset purchases in excess of $10,000 are capitalized if they have an expected
useful life of more than one year. Capital assets include all public domain (infrastructure) assets consisting of
certain improvements including roads, streets, sidewalks, medians and storm drains.
The following schedule summarizes capital asset useful lives:
Buildings 40 years
Utility lines 50 years
Machinery and equipment 5 - 25 years
Furniture and fixtures 10 - 20 years
Vehicles 8 years
Infrastructure 5 - 50 years
Water wells and pumps 70 years
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the
government-wide financial statements and in the fund financial statements of the proprietary funds.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
53
Note 1 – Summary of Significant Accounting Policies (Continued)
J. Deferred Outflows/Inflows of Resources
The statement of financial position reports separate sections for deferred outflows of resources and deferred
inflows of resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to
future periods and that, therefore, will not be recognized as an expense until that time. The City reports
pension contribution after measurement date and deferred loss related to pension, OPEB, debt refunding in
this category.
Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future
periods and that, therefore, are not recognized as revenue until that time. The City reports unavailable
revenues and deferred gain related to pension and OPEB in this category.
K. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is
incurred for governmental activities and business-type activities. In the fund financial statements, only
proprietary fund and private-purpose trust fund types recognize the interest payable when the liability is incurred.
L. Unearned Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions
recorded as unearned revenues are prepaid charges for services.
M. Compensated Absences
All full-time employees accumulate vacation benefits in varying annual amounts. Sick leave benefits accrue at
the rate of one day per month for all full-time employees (except fire shift employees who accrue 12 hours of
sick leave per month) regardless of their length of service to the City. Upon termination or retirement, employees
are paid for all unused vacation time and overtime. No cash payment is made for unused sick leave upon
termination or retirement.
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’
entitlement to these balances are attributable to services already rendered and it is probable that virtually all of
these balances will be liquidated by either paid time off or payments upon termination or retirement.
If material, a proprietary fund liability is accrued for all leave benefits relating to the operations of the
proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on
demand to governmental fund employees that have terminated prior to year-end. All other amounts are recorded
in the government-wide financial statements. These noncurrent amounts will be recorded as fund expenditures in
the year in which they are paid or become due.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
54
Note 1 – Summary of Significant Accounting Policies (Continued)
N. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to
pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the
fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial
Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when
currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension
expense systematically over time. The first amortized amounts are recognized in pension expense for the year the
gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to pensions and are to be recognized in future pension expense. The amortization period differs
depending on the source of the gain or loss. The difference between projected and actual earnings is amortized
straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining
service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of
the measurement period.
O. Other Postemployment Benefits Liability
For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB and OPEB expense, information about the City's OPEB plan have been determined by an
independent actuary. For this purpose, benefit payments are recognized when currently due and payable in
accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to liability and asset
information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
P. Claims Payable
The City records a liability for litigation, judgments and claims when it is probable that an asset has been
impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance
coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the
City’s self-insurance activity.
10.A.b
Packet Pg. 116 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
55
Note 1 – Summary of Significant Accounting Policies (Continued)
Q. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as
follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of
accumulated depreciation and related deferred charges on refunding, reduced by the outstanding balances of
debt that are attributable to the acquisition, construction, or improvement of those items, net of unspent debt
proceeds.
Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred
inflows of resources related to those assets.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources,
liabilities, and deferred inflows of resources that are not included in the determination of net investment in
capital assets or the restricted component of net position.
R. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable
fund balance represents inventory, prepaid expenses, land held for resale, and loans receivable unless the
proceeds from the collection of those loans receivable or from sale of the properties is restricted, committed,
or assigned.
Restricted fund balance includes resources that are subject to externally enforceable legal restrictions. It
includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource
providers, or through enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a
formal action of the City’s highest level of decision-making authority. The City Council, as the City’s
highest level of decision-making authority, may commit, through a resolution, fund balance for specific
purposes pursuant to constraints imposed by such formal actions taken. Committed amounts cannot be used
for any other purpose unless the City Council removes or changes the specific use through the same type of
formal action taken to establish the commitment.
Assigned fund balance consists of funds that are set aside for specific purposes by the City’s highest level of
decision-making authority or a body or official that has been given the authority to assign funds. The City
has not adopted a policy on the authority to assign amounts for specific purposes.
Unassigned fund balance is the residual classification for the City’s fund balance and includes all spendable
amounts not contained in the other classifications. This category also provides the resources necessary to
meet unexpected expenditures and revenue shortfalls. The General Fund is the only fund that reports a
positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a
positive unassigned fund balance amount. However, in governmental funds other than General Fund, if
expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to
those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
56
Note 1 – Summary of Significant Accounting Policies (Continued)
S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position
are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted
component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are
available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses
the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund
balance:
Committed
Assigned
Unassigned
T. Property Taxes
Property taxes in the State of California are administered for all local agencies at the County level, and consist of
secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to
property taxes:
Property Valuations - are established by the Assessor of the County of Santa Clara for the secured and
unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under
the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on
June 6, 1978), properties are assessed at 100% of full value. From this base of assessment, subsequent annual
increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for
property improvements or upon change in ownership. Personal property is excluded from these limitations
and is subject to annual reappraisal.
Tax Levies - are limited to 1% of full market value which results in a tax rate of $1.00 per $100 assessed
valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from
this limitation.
Tax Levy Dates - are attached annually on March 1 preceding the fiscal year for which the taxes are levied.
The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and
unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal
property, are not relieved by subsequent renewal or change in ownership.
Tax Collections - are the responsibility of the County Tax Collector. Taxes and assessments on secured and
utility rolls which constitute a lien against the property may be paid in two installments. The first is due on
November 1 of the fiscal year and is delinquent if not paid by December 10, and the second is due on March
1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not
constitute a lien against real property unless the taxes become delinquent. Payment must be made in one
installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed
by the County for late payments.
10.A.b
Packet Pg. 118 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
57
Note 1 – Summary of Significant Accounting Policies (Continued)
T. Property Taxes (Continued)
Tax Levy Apportionments - Due to the nature of the City-wide maximum levy, it is not possible to identify
general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of
Proposition 13, apportionments to local agencies are made by the County Auditor-Controller based
primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to
fiscal year 1979.
Property Tax Administration Fees - The State of California fiscal year 1990-91 Budget Act authorized
counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are
recorded as net of administrative fees withheld during the fiscal year.
U. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that
affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of
the financial statements, as well as the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
V. Implementation of New GASB Pronouncements
During fiscal year ended June 30, 2020, the City has implemented the following new GASB Pronouncement:
GASB Statement No. 95 - In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of
Certain Authoritative Guidance. The primary objective of this Statement is to provide temporary relief to
governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by
postponing the effective dates of certain provisions in Statements and Implementation Guides that first became
effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. Application of
this statement is effective immediately and did not have a material effect on City's financial statements for the
fiscal year ending June 30, 2020.
Note 2 – Stewardship, Compliance and Accountability
A. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These
commitments are recorded for budgetary control purposes in the General, Special Revenue, and similar
governmental funds. Encumbrances outstanding at fiscal year-end are reported as committed or assigned fund
balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in-
process at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities. There were
no significant amounts of encumbrances outstanding as of June 30, 2020.
B. Continuing Appropriations
The unexpended and unencumbered appropriations that are available and recommended for continuation are
approved by the City Council for carryover to the following fiscal year. These commitments are reported as
committed or assigned fund balance.
10.A.b
Packet Pg. 119 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
58
Note 2 – Stewardship, Compliance and Accountability (Continued)
C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balance/net position as of June 30, 2020:
Funds Amount
Major Capital Projects Fund:
Public Facilities Impact Fund (6,358,684)$
Nonmajor Governmental Funds:
Capital Projects Fund:
Bank Interest (54)
Debt Service Fund:
Lease Revenue Bond 2020A (21,900)
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2020
for its governmental activities of $ (42,674,183) of which, $(73,684,672) and $(12,056,601) were attributed to
aggregate net pension liabilities and net other postemployment benefits liability, respectively.
D. Excess of Expenditure Over Appropriations
The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2020:
Final
Funds Appropriations Expenditures Excess
General Fund:
General government 5,824,947$ 6,200,542$ (375,595)$
Public Facilities Impact Capital
Projects Fund:
Debt service:
Interest and fiscal charges 58,715 102,559 (43,844)
Gilroy Community Library Debt
Service Fund:
General government 5,200 129,296 (124,096)
Debt service:
Principal retirement 865,000 1,090,630 (225,630)
Nonmajor Funds:
Special Revenue Funds:
Gas Tax Fund
Community development 1,535,471 2,757,438 (1,221,967)
Prop 172 Sales Tax Fund
Public safety 292,693 293,128 (435)
Capital Projects Funds:
Water Development Fund
Community development 447,806 507,085 (59,279)
10.A.b
Packet Pg. 120 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
59
Note 3 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all
funds.
Statement of
Governmental Business-type Discretely Fiduciary
Activities Activities Presented Net Position Total
Cash and investments 90,642,564$ 41,858,353$ -$ 4,418,961$ 136,919,878$
Cash and investment with fiscal agent 4,697,482 2,665,006 - 291,501 7,653,989
Total cash and investments 95,340,046$ 44,523,359$ -$ 4,710,462$ 144,573,867$
Government-Wide Statement of Net Position
Cash and investment at June 30, 2020 consisted of the following:
Cash and cash equivalents:
Demand deposits 5,002,403$
Petty cash 4,955
Total cash and cash equivalents 5,007,358
Investments:
Local Agency Investment Fund 141,847,784
Investments with Fiscal Agent:
Investment Agreement 4,365,606
Money Market Mutual Fund 3,288,383
Total investments 149,501,773
Total cash and investments 154,509,131$
A. Demand Deposits
The carrying amount of the City’s demand deposits were $5,002,403 at June 30, 2020. Bank balances before
reconciling items were $5,343,165 at that date, the total amount of which was insured or collateralized with
securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner
shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.
Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also
allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of
the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully
insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not
waived the collateralization requirements.
10.A.b
Packet Pg. 121 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
60
Note 3 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized by the City's investment policy and the
California Government Code. The table also identifies certain provisions of the California Government Code (or
the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of
credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California Government
Code or the City's investment policy.
Maximum Maximum
Maximum Percentage of Investment in One
Authorized Investment Type Maturity Portfolio Issuer
Local Agency Investment Fund (LAIF) N/A None None
U.S. Government Sponsored Agency Securities N/A None None
Insured Certificate of Deposit (CD's) N/A 15% $250,000
Banker's Acceptances N/A 15% None
Commercial Paper N/A 10% None
Passbook Savings or Money Market Demand Deposits N/A None None
Money Market Mutual Funds N/A 5% None
Liquidity:
*Securities or bonds purchased under a prior investment policy may be held or sold but additional purchases shall not be made.
N/A- Not applicable
C. Fair Value Measurements
At June 30, 2020, investments are reported at fair value. The following table presents the fair value measurement
of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value
measurements fall at June 30, 2020:
Observable Unobservable
Input Input
Primary Government Total Level 2 Level 3 N/A
Local Agency Investment Fund 141,847,784$ -$ -$ 141,847,784$
Investment Agreement 4,365,606 - 4,365,606 -
Money Market Mutual Funds 3,288,383 3,288,383 - -
Total Leveled Investments 149,501,773$ 3,288,383$ 4,365,606$ 141,847,784$
10.A.b
Packet Pg. 122 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
61
Note 3 – Cash and Investments (Continued)
D. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by
purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities
so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide
the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's
investments to market interest rate fluctuations is as follows:
12 Months More than
Investment Type Total or less 25-36 60 Months
Local Agency Investment Fund 141,847,784$ 141,847,784$ -$ -$
Investment Agreement 4,365,606 - 2,621,000 1,744,606
Money Market Mutual Funds 3,288,383 3,288,383 - -
Total 149,501,773$ 145,136,167$ 2,621,000$ 1,744,606$
Remaining Maturity (in Months)
E. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the California Government
Code, the City’s investment policy or debt agreements, and the actual rating by Standard & Poor’s as of year-end
for each investment type.
Minimum
Legal
Investment Type Total Rating
Local Agency Investment Fund 141,847,784$ N/A
Investment Agreement 4,365,606 A1
Money Market Mutual Funds 3,288,383 N/A
Total 149,501,773$
F. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. There are no investments in any one issuer (other
than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of total City
investments.
10.A.b
Packet Pg. 123 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
62
Note 3 – Cash and Investments (Continued)
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in
the possession of an outside party.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-
dealer) to a transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The California Government Code and the City’s investment
policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for
deposits or investments, other than the following provision for deposits: The California Government Code
requires that a financial institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the
governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of
the total amount deposited by the public agencies. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the
applicable trust agreement, acquires the investment and holds the investment on behalf of the reporting
government.
H. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (“LAIF”) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of
the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the
City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized
cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost basis. The City investments in LAIF at June 30, 2020 included a portion of pool funds
invested in Structured Notes and Asset-Backed Securities.
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon
rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded
forwards or options.
Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share
of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages
(for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2020, the City had $141,847,784 invested in LAIF, which had invested 3.37% of the pool
investment funds in Structured Notes and Asset-Backed Securities.
10.A.b
Packet Pg. 124 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
63
Note 4 – Interfund Transactions
A. Due to/from Other Funds
The following is a summary of due to and due from other funds as of June 30, 2020:
Due From
Other Funds
Due To Other Funds General Fund Total
Nonmajor Governmental Funds 470,965$ 470,965$
Total 470,965$ 470,965$
These short-term borrowings were made to cover cash deficits at June 30, 2020.
B. Advances to/from Other funds
The following is a summary of advances to and from other funds as of June 30, 2020:
Advances to Other Funds
Nonmajor
Governmental
Funds
Internal Service
Fund Total
Public Facilities Impact Capital Projects Fund 2,758,836$ 4,238,531$ 6,997,367$
2,758,836$ 4,238,531$ 6,997,367$
Advances from Other Funds
In February 2008, the City purchased the Gilroy Gardens Property (Property), which includes a horticultural
education and theme park, for approximately $13.7 million. At the same time, the City entered into a single
tenant lease of the Property with the seller, Gilroy Gardens Family Theme Park, Inc. To fund the acquisition, the
Public Facilities Fund (Fund 440) borrowed from certain funds. The borrowings are accounted for as interfund
loans for a period of twenty years and are reflected as balance sheet activity in accordance with GAAP. In
addition, the annual budget reflects the loan activity through revenue and expenditure transactions. The interfund
loans bear interest at the City’s annual average portfolio yield. The borrowing funds and their respective original
loan amounts are as follows: Storm Drains Fund (Fund 420, $1.2 million), the Sewer Development Fund (Fund
435, $5.0 million), the Fleet Services Fund (Fund 600, $4.3 million), the Equipment Outlay Fund (Fund 605,
$2.2 million) and the Water Fund (Fund 720, $1.0 million). As of June 30, 2017, the Water Fund loan has been
paid off.
10.A.b
Packet Pg. 125 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
64
Note 4 – Interfund Transactions (Continued)
C. Transfers
During the year ended June 30, 2020, the City had the following transfers:
Public Facilities Nonmajor Sewer Water
Impact Capital Governmental Enterprise Enterprise
Transfers In General Fund1 Projects Fund2 Funds3 Fund4 Fund4 Total
General Fund -$ -$ 193,780$ -$ 45,730$ 239,510$
Public Facilities Impact Capital Projects Fund 40,762 - - - - 40,762
Nonmajor Governmental Funds 4,905,991 3,594,976 156,745 - - 8,657,712
Sewer Enterprise Fund - - 693,577 - - 693,577
Internal Service Fund 3,319,000 - 1,166 100,000 100,000 3,520,166
Total 8,265,753$ 3,594,976$ 1,045,268$ 100,000$ 145,730$ 13,151,727$
Transfers Out
1General Fund support of certain capital projects, safety related grants, and fleet and facility services.
2Public Facilities Impact Capital Projects Fund supports various debt instruments.
3Other Governmental Funds support of grant personnel costs and sewer development project costs.
4Enterprise Fund transfers to the Internal Service Funds and the General Fund to support fringe benefit costs and subsidize
environmental costs.
D. Due to/from Component Unit
The following is a summary of due to and from component unit as of June 30, 2020:
Due from
component unit
Due to component unit South Regional
Wastewater
Authority
Nonmajor Governmental Funds 426,788$
Sewer Enterprise Fund 149,657
576,445$
The due from primary government of $576,445 consists of $426,788 and $149,657 due from Sewer Development
Special Revenue Fund and Sewer Enterprise, respectively, for capital costs.
10.A.b
Packet Pg. 126 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
65
Note 5 – Capital Assets
Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended
June 30, 2020:
Prior
Balance Period Balance
July 1, 2019 Adjustment Additions Deletions Reclassifications June 30, 2020
Capital assets not being depreciated:
Land 21,334,900$ -$ -$ -$ -$ 21,334,900$
Construction in progress 4,638,085 - 5,622,353 - (1,503,021) 8,757,417
Total capital assets not being depreciated 25,972,985 - 5,622,353 - (1,503,021) 30,092,317
Capital assets being depreciated:
Building and improvements 121,325,914 - - - - 121,325,914
Equipment and furniture 10,703,075 - 351,469 - - 11,054,544
IT equipment and software 2,871,105 - 25,646 - - 2,896,751
Vehicle 12,747,179 - 511,007 (18,690) - 13,239,496
Infrastructure 279,341,301 - 2,126,723 (281,464) 1,503,021 282,689,581
Total capital assets being depreciated 426,988,574 - 3,014,845 (300,154) 1,503,021 431,206,286
Less accumulated depreciation for:
Building and improvements (40,441,435) - (3,029,574) - - (43,471,009)
Equipment and furniture (7,847,230) - (466,952) - - (8,314,182)
IT equipment and software (2,443,731) - (137,216) - - (2,580,947)
Vehicle (8,402,697) - (522,643) 18,690 - (8,906,650)
Infrastructure (174,456,603) 414,240 (7,517,509) 281,464 - (181,278,408)
Total accumulated depreciation (233,591,696) 414,240 (11,673,894) 300,154 - (244,551,196)
Total capital assets being depreciated, net 193,396,878 414,240 (8,659,049) - 1,503,021 186,655,090
Total governmental activities 219,369,863$ 414,240$ (3,036,696)$ -$ -$ 216,747,407$
Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2020
as follows:
General government 860,545$
Public safety 1,246,873
Public works 1,168,162
Community services 7,681,963
Internal service fund 716,351
Total depreciation expense 11,673,894$
10.A.b
Packet Pg. 127 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
66
Note 5 – Capital Assets (Continued)
Business-Type Activities
The following is a summary of changes in capital assets for the business-type activities for the year ended
June 30, 2020:
Balance Balance
July 1, 2019 Additions Deletions June 30, 2020
Capital assets not being depreciated:
Construction in progress 5,795,301$ 1,807,810$ -$ 7,603,111$
Total capital assets not being depreciated 5,795,301 1,807,810 - 7,603,111
Capital assets being depreciated:
Land improvements 427,852 - - 427,852
Equipment and furniture 212,630 - - 212,630
Vehicles - 213,353 - 213,353
Infrastructure 149,807,922 1,079,111 - 150,887,033
Total capital assets being depreciated 150,448,404 1,292,464 - 151,740,868
Less accumulated depreciation for:
Land improvements (427,853) - - (427,853)
Equipment and furniture (191,421) (2,737) - (194,158)
Vehicles - (4,741) - (4,741)
Infrastructure (64,489,499) (2,820,647) - (67,310,146)
Total accumulated depreciation (65,108,773) (2,828,125) - (67,936,898)
Total capital assets being depreciated, net 85,339,631 (1,535,661) - 83,803,970
Total business-type activities 91,134,932$ 272,149$ -$ 91,407,081$
Depreciation expense was charged to the Sewer Maintenance Fund within business-type activities.
Sewer 1,502,987$
Water 1,325,138
Total depreciation expense 2,828,125$
10.A.b
Packet Pg. 128 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
67
Note 5 – Capital Assets (Continued)
Discretely Presented Component Unit
The following is a summary of changes in capital assets for the discretely presented component unit for the year
ended June 30, 2020:
Balance Balance
July 1, 2019 Additions Deletions Reclassifications June 30, 2020
Capital assets not being depreciated:
Land 13,396,202$ -$ -$ -$ 13,396,202$
Construction in progress 13,791,603 2,647,982 - (4,728,366) 11,711,219
Total capital assets not being depreciated 27,187,805 2,647,982 - (4,728,366) 25,107,421
Capital assets being depreciated:
Building and improvements 67,494,863 4,728,366 72,223,229
Land improvements 10,681,371 - - - 10,681,371
Equipment and furnitures 19,964,163 - - - 19,964,163
Vehicles 1,295,492 - - - 1,295,492
Infrastructure 35,618,048 31,269 - - 35,649,317
Total capital assets being depreciated 135,053,937 31,269 - 4,728,366 139,813,572
Less accumulated depreciation for:
Building and improvements (37,924,692) (1,595,406) - - (39,520,098)
Land improvements (5,527,237) (190,342) - - (5,717,579)
Equipment and furniture (6,147,129) (998,978) - - (7,146,107)
Vehicles (1,073,365) (34,760) - - (1,108,125)
Infrastructure (13,366,673) (1,639,300) - - (15,005,973)
Total accumulated depreciation (64,039,096) (4,458,786) - - (68,497,882)
Total capital assets being depreciated, net 71,014,841 (4,427,517) - 4,728,366 71,315,690
Total governmental activities 98,202,646$ (1,779,535)$ -$ -$ 96,423,111$
Note 6 – Investment in Joint Venture
The City of Gilroy and the City of Morgan Hill are members of a joint venture (South County Regional Wastewater
Authority) that provides for the construction, ownership, maintenance and operation of a domestic sewer treatment
plant. The agreement provides for the participants’ right to use the system. The participants are also obligated to
share annual direct operating costs. The City of Gilroy maintains the accounting records for the joint venture. The
City of Gilroy’s interest in joint venture assets is reflected on the statement of net position of the City’s sewer
enterprise fund as an “investment in joint venture” in the amount of $68,502,785 as required under the equity method
of accounting for investments. The financial statements of the joint venture can be obtained from the City of Gilroy’s
finance department.
- -
10.A.b
Packet Pg. 129 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
68
Note 7 – Deferred Compensation
The City maintains a deferred compensation plan under Section 457 of the Internal Revenue Code (IRC) for the
benefit of its employees. The plan allows the employees to defer or postpone the taxation of a designated amount of
earnings set aside for retirement.
The City has a fiduciary responsibility to safeguard the assets of the program and to ensure that the plan is properly
maintained by the plan administrator. Generally speaking, assets are available to participants only upon termination
of employment with the City, retirement, death or disability. The City has placed the plan assets into a trust for the
exclusive benefit of plan participants and their beneficiaries. Accordingly, all plan assets have been excluded from
the accompanying financial statements, except for those plan assets for which the City provides record keeping
services.
Note 8 – Long-Term Liabilities
A. Governmental Activities
The following is a summary of changes in the City’s long-term liabilities for the fiscal year ended June 30, 2020:
Balance Balance Due within Due in more
July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year
Governmental Activities:
Other Debt:
General Obligation Bonds:
Library 2010 Series 19,350,000$ -$ (19,350,000)$ -$ -$ -$
Refunding Lease Revenue Bonds:
2010 Series 18,450,000 - (895,000) 17,555,000 930,000 16,625,000
2013 Series 19,065,000 (910,000) 18,155,000 945,000 17,210,000
Unamortized premium 1,582,182 - (578,964) 1,003,218 - 1,003,218
Loan payable 948,011 - (90,582) 857,429 91,515 765,914
Direct borrowings and placement
General Obligation Bonds:
Library 2019A Series 8,633,538 - (290,960) 8,342,578 326,786 8,015,792
Library 2019B Series - 19,087,551 (799,670) 18,287,881 664,027 17,623,854
Total long-term debt 68,028,731 19,087,551 (22,915,176) 64,201,106 2,957,328 61,243,778
Other long-term liabilities
Claims payable 3,864,823 596,010 (838,388) 3,622,445 909,000 2,713,445
Compensated absences 1,723,517 2,060,575 (1,797,436) 1,986,656 230,000 1,756,656
Total long-term liabilities 73,617,071$ 21,744,136$ (25,551,000)$ 69,810,207$ 4,096,328$ 65,713,879$
Classification
10.A.b
Packet Pg. 130 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
69
Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2010 Series
On July 21, 2010, the City of Gilroy issued General Obligation Bonds 2010 Series, in the amount of
$23,500,000. The proceeds from the issue are being used to finance the acquisition, construction and
improvement of facilities for the public library within the City.
Interest on the bonds is payable semiannually on February 1 and August 1 of each year commencing on
February 1, 2011, and the Bonds mature on February 1, 2040. The bonds are payable solely from ad valorem
property taxes levied by the City and collected by the County. The principal balance outstanding of $19,350,000
was paid off during the year.
Refunding Lease Revenue Bonds (LRBs) 2010 Series
On July 27, 2010, the City of Gilroy refinanced its 2009 BANs and issued Refunding Revenue Bonds, in the
amount of $24,475,000. The proceeds from the issue were used to redeem the 2009 BANs.
Interest on the bonds is payable semiannually on May 1 and November 1 of each year commencing on
May 1, 2011, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at
June 30, 2020 was $17,555,000. The reserve requirement on the bonds was $1,744,606, and the actual reserve
was $1,775,338.
The annual debt service requirements to maturity for the Refunding Lease Revenue Bonds 2010 Series are as
follows:
Year ending
June 30, Principal Interest Total
2021 930,000$ 810,706$ 1,740,706$
2022 965,000 775,219 1,740,219
2023 1,005,000 738,231 1,743,231
2024 1,045,000 697,231 1,742,231
2025 1,090,000 654,531 1,744,531
2026-2030 6,235,000 2,475,834 8,710,834
2031-2034 6,285,000 681,319 6,966,319
Total 17,555,000$ 6,833,071$ 24,388,071$
Refunding Lease Revenue Bonds (LRBs) 2013 Series
On July 25, 2013, the City of Gilroy refinanced its Bond Anticipation Notes (BANs) Gilroy 2010 and issued
Refunding Revenue Bonds, in the amount of $23,120,000. The proceeds from the issue were used to redeem the
2010 BANs.
Interest on the bonds is payable semiannually on May 1 and November 1 of each year commencing on
November 1, 2013, and the Bonds mature on November 1, 2033. The principal balance of outstanding bonds at
June 30, 2020 was $18,155,000.
The reserve requirement was $920,222, and the actual reserve was $922,096.
10.A.b
Packet Pg. 131 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
70
Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Refunding Lease Revenue Bonds (LRBs) 2013 Series (Continued)
The annual debt service requirements to maturity for the Refunding Lease Revenue Bonds 2013 Series are as
follows:
Year ending
June 30, Principal Interest Total
2021 945,000$ 891,669$ 1,836,669$
2022 990,000 848,019 1,838,019
2023 1,035,000 805,156 1,840,156
2024 1,080,000 760,044 1,840,044
2025 1,130,000 710,444 1,840,444
2026-2030 6,440,000 2,751,278 9,191,278
2031-2034 6,535,000 813,750 7,348,750
Total 18,155,000$ 7,580,360$ 25,735,360$
Loan Payable
The City entered into a loan agreement with the California Energy Commission (CEC) to provide funds to install
equipment for energy conservation. The original loan agreement was for the CEC to loan the City $1,812,722
with interest paid at 1% with semiannual payments to be paid commencing December following the year the
project is complete. The City borrowed $1,201,155 with semiannual payments of interest and principal of
$49,931 with the first payment occurring on December 27, 2016. The principal balance of outstanding at
June 30, 2020 was $857,429.
The annual debt service requirements to maturity for the loans payable are as follows:
Year ending
June 30, Principal Interest Total
2021 91,515$ 8,347$ 99,862$
2022 92,433 7,429 99,862
2023 93,359 6,503 99,862
2024 94,281 5,581 99,862
2025 95,240 4,622 99,862
2026-2029 390,601 8,846 399,447
Total 857,429$ 41,328$ 898,757$
10.A.b
Packet Pg. 132 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
71
Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series A
On June 26, 2019, the City of Gilroy issued General Obligation Refunding Bonds 2019 Series A through a
private placement, in the amount of $8,633,538. The proceeds from the issue were used to currently refund the
General Obligation Bonds Series 2019. The City’s refunding of the 2009 General Obligation Bonds resulted in an
economic gain of (difference between the present value of the old and new debt) of $1,447,576 and an aggregate
savings in debt services between the refunding debt and the refunded debt of $1,966,116.
Interest on the bonds is payable semiannually on February 1 and August 1 of each year commencing on
February 1, 2011, and the Bonds mature on February 1, 2039. The bonds are payable solely from ad valorem
property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at
June 30, 2020 was $8,342,578.
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series A are
as follows:
Year ending
June 30, Principal Interest Total
2021 326,786$ 260,288$ 587,074$
2022 337,143 250,093 587,236
2023 347,829 239,574 587,403
2024 358,853 228,722 587,575
2025 370,226 217,525 587,751
2026-2030 2,034,760 906,863 2,941,623
2031-2035 2,378,312 568,671 2,946,983
2036-2039 2,188,669 173,379 2,362,048
Total 8,342,578$ 2,845,115$ 11,187,693$
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B
On November 1, 2019, the City of Gilroy issued General Obligation Refunding Bonds 2019 Series B through a
private placement, in the amount of $19,087,551. The proceeds from the issue were used to currently refund the
General Obligation Bonds Series 2019. The City’s refunding of the 2010 General Obligation Bonds resulted in an
economic gain of (difference between the present value of the old and new debt) of $3,430,633 and an aggregate
savings in debt services between the refunding debt and the refunded debt of $2,525,981.
Interest on the bonds is payable semiannually on February 1 and August 1 of each year commencing on
February 1, 2020, and the Bonds mature on February 1, 2040. The bonds are payable solely from ad valorem
property taxes levied by the City and collected by the County. The principal balance of outstanding bonds at
June 30, 2020 was $18,287,881.
10.A.b
Packet Pg. 133 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
72
Note 8 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
General Obligation Bonds (Gilroy Community Library Project) 2019 Refunding Bonds, Series B
(Continued)
The annual debt service requirements to maturity for the General Obligation Refunding Bonds, 2019 Series B are
as follows:
Year ending
June 30, Principal Interest Total
2021 664,027$ 583,383$ 1,247,410$
2022 685,553 562,201 1,247,754
2023 707,776 540,332 1,248,108
2024 730,720 517,754 1,248,474
2025 754,408 494,444 1,248,852
2026-2030 4,155,121 2,095,248 6,250,369
2031-2035 4,873,709 1,388,122 6,261,831
2036-2039 5,716,567 558,706 6,275,273
Total 18,287,881$ 6,740,190$ 25,028,071$
B. Business-Type Activities
Balance Balance Due within Due in more
July 1, 2019 Additions Deletions June 30, 2020 One Year than One Year
Other debt:
2010 Wastewater Revenue Bonds 9,230,000$ -$ (2,150,000)$ 7,080,000$ 2,260,000$ 4,820,000$
Unamortized premium 698,275 - (232,758) 465,517 - 465,517
9,928,275 - (2,382,758) 7,545,517 2,260,000 5,285,517
Other long-term liabilities
Compensated absences 186,750 279,504 (196,777) 269,477 27,000 242,477
10,115,025$ 279,504$ (2,579,535)$ 7,814,994$ 2,287,000$ 5,527,994$
Classification
2010 Wastewater Revenue Refunding Bonds
On March 1, 2010, the City issued revenue refunding bonds in the amount of $23,375,000. The bonds were issued
to refinance an existing installment payment obligation of the City. The City had originally structured the sewer
revenue bonds through its joint venture with Morgan Hill (South County Regional Wastewater Authority or
SCRWA). The structure consisted of a pledge of an installment sale from the City to SCRWA as the collateral
for the revenue bonds issued by SCRWA.
As part of the March 2010 refunding, the City issued the debt obligation, paid off the SCRWA bonds and now has
the new obligation in the sewer fund. There is no longer any outstanding debt on SCRWA’s financial statements
for Gilroy. The City’s sewer enterprise fund now maintains an obligation to generate net revenues to pay its
outstanding obligation off over time without any responsibility or requirements from SCRWA.
The bonds are payable from the net revenues of the City’s Sewer Fund so pledged as security for the debt. Interest
on the bonds is payable at rates ranging from 3.0% to 5.0%. Principal payments range from $1,465,000 to
$2,440,000 payable on August 1 of each year beginning in 2011 and maturing in 2022. The principal balance of
outstanding bonds at June 30, 2020 was $7,080,000.
10.A.b
Packet Pg. 134 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
73
Note 8 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2010 Wastewater Revenue Refunding Bonds (Continued)
Covenants within the bonds require the City of Gilroy to, among other things, maintain insurance on the facility,
establish wastewater rates, exclusive of sewer development fees, which are sufficient to pay the operating costs
and debt service on the bonds and to provide revenues equal to at least 1.2 times the annual payments due.
The reserve requirement was $2,621,000, and the actual reserve was $2,621,011.
The annual debt service requirements (principal and interest) to maturity for the 2010 Wastewater Revenue
Refunding Bonds are as follows:
Year ending
June 30, Principal Interest Total
2021 2,260,000$ 297,500$ 2,557,500$
2022 2,380,000 181,500 2,561,500
2023 2,440,000 61,000 2,501,000
Total 7,080,000$ 540,000$ 7,620,000$
C. Debt without Government Commitment
Community Facilities District No. 2000-1, Highway 152, Special Tax Bonds
In December 2002, the City issued debt for and on behalf of Community Facilities District No. 2000-1 pursuant
to Mello-Roos Community Facilities Act of 1982, $7,185,000 of Special Tax Bonds to finance the costs
associated with the construction of public facilities for interchange improvements at State Highway 152 and U.S.
Highway 101 and for widening and improving of Highway 152. In September 2006, the City issued debt for and
on behalf of the Community Facilities District No. 2000-1 pursuant to Mello-Roos Community Facilities Act of
1982, $8,670,000 of Special Tax Bonds to finance the costs associated with the construction of public facilities
for interchange improvements at State Highway 152 and U.S. Highway 101 and for the widening and improving
of Highway 152.
These bonds (Series 2002 and 2001) were refunded in July 2018 with proceeds from the issuance in a private
placement of Community Facilities District No. 2000-1 (Highway 152) Special Tax Refunded Bonds, Series
2018 in the aggregate principal amount of $7,815,860. These bonds do not constitute a debt or obligation of the
City because they are payable solely from and secured by assets and revenues of other parties. The City is in no
way liable for repayment but is only acting as an agent for the property owners in collecting the assessments,
forwarding the collections to bondholders, and initiating foreclosure proceedings, if appropriate. The outstanding
principal balance as of June 30, 2020 was $7,212,008.
10.A.b
Packet Pg. 135 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
74
Note 9 – Defined Benefit Pension Plans (CalPERS)
A. Summary
The following is the summary of net pension liabilities and the related deferred outflow of resources and deferred
inflow of resources at June 30, 2020 and pension expenses for the year then ended:
Governmental Business-Type
Activities Sewer Water Activities Total
Deferred outflows of resources:
Pension contribution after measurement date:
Miscellaneous 2,323,645$ 678,946$ 641,772$ 1,320,718$ 3,644,363$
Safety 6,320,861 - - - 6,320,861
Total contribution after measurement date 8,644,506 678,946 641,772 1,320,718 9,965,224
Changes in assumptions:
Safety 2,728,320 - - - 2,728,320
Total changes in assumptions 2,728,320 - - - 2,728,320
Difference between expected and actual experience:
Miscellaneous 1,499,165$ 438,040$ 414,057$ 852,097$ 2,351,262
Total difference between expected and actual experience 1,499,165 438,040 414,057 852,097 2,351,262
Total deferred outflows of resources 12,871,991$ 1,116,986$ 1,055,829$ 2,172,815$ 15,044,806$
Aggregate net pension liabilities:
Miscellaneous 21,971,434$ 6,419,821$ 6,068,334$ 12,488,155$ 34,459,589$
Safety 51,713,238 - - - 51,713,238
Total aggregate net pension liabilities 73,684,672$ 6,419,821$ 6,068,334$ 12,488,155$ 86,172,827$
Deferred inflows of resources:
Changes in assumptions:
Miscellaneous 143,847$ 42,031$ 39,729$ 81,760$ 225,607$
Safety 316,799 - - - 316,799
Total changes in assumptions 460,646 42,031 39,729 81,760 542,406
Difference between expected and actual experience:
Safety 1,112,059 - - - 1,112,059
Total difference between expected and actual experience 1,112,059 - - - 1,112,059
Difference between projected and actual earnings on plan
investments:
Miscellaneous 352,382$ 102,962$ 97,326$ 200,288$ 552,670
Safety 570,213 - - - 570,213
Total difference between projected and actual earnings on plan
investments 922,595 102,962 97,326 200,288 1,122,883
Total deferred inflows of resources 2,495,300$ 144,993$ 137,055$ 282,048$ 2,777,348$
Pension expense:
Miscellaneous 4,214,347$ 1,231,388$ 1,163,969$ 2,395,357$ 6,609,704$
Safety 8,838,448 - - - 8,838,448
Total net pension expense 13,052,795$ 1,231,388$ 1,163,969$ 2,395,357$ 15,448,152$
10.A.b
Packet Pg. 136 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
75
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans
Plan Descriptions
The City participates in the 2.5% at 55 (Miscellaneous Tier I), 2.0% at 62 (Miscellaneous Tier II PEPRA), 3.0%
at 50 (Police Safety Tier I), 2.0% at 50 (Police Safety Tier II), 2.7% at 57 (Police Safety Tier III PEPRA), 3% at
55 (Fire Safety Tier I), 2% at 55 (Fire Safety Tier II) and 2% at 57 (Fire Safety Tier III PEPRA) agent multiple-
employer defined benefit plans. The City’s defined benefit pension plans provide retirement and disability
benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The Plans are
part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent
multiple-employer plan administered by CalPERS, which acts as a common investment and administrative
agent for participating public employers within the State of California. A menu of benefit provisions as well as
other requirements are established by state statutes within the Public Employees’ Retirement Law.
The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those
benefits through City ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of
CalPERS’s annual financial report may be obtained from the CalPERS Executive Office, 400 P Street,
Sacramento, CA 95814.
All full-time employees of the City are eligible to participate in the Plans. Part-time employees and temporary
employees who work an average of 20 hours per week and over 1,000 hours per year are also eligible to
participate. Upon 5 years of service, miscellaneous employees and public safety employees who retire at or after
age 50 are entitled to receive an annual retirement benefit.
The benefit is payable monthly for life, in an amount that varies from each Tier, of the employees’ single highest
year’s salary for each year of credited service. The Plans also provide death and disability benefits.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited
service, equal to one year of full-time employment. Members with five years of total service are eligible to retire
at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula,
eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members
become eligible for service retirement upon attainment of age 52 with at least five years of service. All members
are eligible for nonduty disability benefits after five years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit or the Optional Settlement 2W Death Benefit.
Safety members can receive a special death benefit if the member dies while actively employed and the death is
job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957
Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service.
The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
10.A.b
Packet Pg. 137 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
76
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at the measurement date of June 30, 2019 are summarized as
follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 60 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 1.0% to 2.5%
Required employee contribution rates 8.000% 7.000%
Required contribution during measurement period 10.531% 10.531%
Miscellaneous
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 3% @ 50 2% @ 57 2.7% @ 50
Benefit vesting schedule 3 years of service 3 years of service 3 years of service
Benefit payments Monthly for life Monthly for life Monthly for life
Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 3.000% 2.00%-2.70% 2.00%-2.70%
Required employee contribution rates 9.000% 9.000% 13.000%
Required contribution during measurement period 19.471% 19.471% 8.250%
Safety - Police
Hire Date
Prior to
January 5, 2011
Prior to
January 1, 2013
On or After
January 1, 2013
Benefit formula 2% @ 55 2% @ 55 2% @ 50
Benefit vesting schedule 3 years of service 3 years of service 3 years of service
Benefit payments Monthly for life Monthly for life Monthly for life
Retirement age 50-55 50-55 50-57
Benefit per year of service, as a percentage of salary 2.4%-3.0% 1.426%-2.0% 1.426%-2.0%
Required employee contribution rates 9.000% 7.000% 8.250%
Required contribution during measurement period 19.471% 19.471% 8.250%
Safety - Fire
10.A.b
Packet Pg. 138 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
77
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
B. General Information about the Pension Plans (Continued)
Employees Covered
At the measurement date of June 30, 2019, the following employees were covered by the benefit terms for all
Plans:
Inactives currently receiving benefits 116
Inactives entitled to but not yet receiving benefits 30
Active employees 124
Total 270
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution
rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July
1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual
actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs
of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability. The City is required to contribute the difference between the actuarially determined rate and the
contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments
made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan
member contributions requirements are classified as plan member contributions.
C. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2018 valuation was rolled forward to determine the June 30, 2019 total pension liability, based on
the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB
Statement No. 68
7.15%
2.50%
Varies by Entry Age and Service
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of
projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table,
please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found
on the CalPERS website.
Derived using CalPERS’ membership data for all funds.
The lesser of contract COLA or 2.50% until Purchasing Power
Protection Allowance floor on purchasing power applies, 2.50%
thereafter
10.A.b
Packet Pg. 139 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
78
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
C. Net Pension Liability (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all the
funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years)
and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both
short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return
was set by calculating the rounded single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of
return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses.
The expected real rates of return by asset class are as follows:
Current Target Real Return Real Return
Asset Class1 Allocation Years 1 - 102 Years 11+3
Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
2 An expected inflation of 2.0% used
3 An expected inflation of 2.92% used
1 In the CalPER's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments;
Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current member
contribution rates and that contributions from employers will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on
plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
79
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
D.Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City’s miscellaneous plan recognized over
the measurement period.
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2018 (Valuation Date) 109,153,967$ 78,451,278$ 30,702,689$
Changes Recognized for the Measurement Period:
Service Cost 2,218,281 -2,218,281
Interest on the total pension liability 7,888,537 -7,888,537
Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience 3,067,906 -3,067,906
Plan to plan resource movement - - -
Contributions from the employer -3,254,181 (3,254,181)
Contributions from employees -992,926 (992,926)
Net investment income -5,226,520 (5,226,520)
Benefit payments, including refunds of employee
contributions (6,003,668) (6,003,668)-
Administrative expenses -(55,985)55,985
Other Miscellaneous Income/(Expense)182 (182)
Net Changes during July 1, 2018 to June 30, 2019 7,171,056 3,414,156 3,756,900
Balance at June 30, 2019 (Measurement Date)116,325,023$ 81,865,434$ 34,459,589$
Increase (Decrease)
Miscellaneous Plan
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2018 (Valuation Date) 164,393,053$ 113,500,016$ 50,893,037$
Changes Recognized for the Measurement Period:
Service Cost 4,001,654 -4,001,654
Interest on the total pension liability 11,586,454 -11,586,454
Changes of benefit terms - - -
Changes of assumptions - - -
Difference between expected and actual experience (560,783) -(560,783)
Plan to plan resource movement - - -
Contributions from the employer -5,572,994 (5,572,994)
Contributions from employees -1,245,565 (1,245,565)
Net investment income -7,469,298 (7,469,298)
Benefit payments, including refunds of employee
contributions (7,569,570) (7,569,570)-
Administrative expenses -(80,996)80,996
Other Miscellaneous Income/(Expense)263 (263)
Net Changes during July 1, 2018 to June 30, 2019 7,457,755 6,637,554 820,201
Balance at June 30, 2019 (Measurement Date)171,850,808$ 120,137,570$ 51,713,238$
Safety
Increase (Decrease)
-
-
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
80
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
D. Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for all Plans, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that
is one percentage point lower or one percentage point higher than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan 48,837,561$ 34,459,589$ 22,487,052$
Safety Plan 74,870,212$ 51,713,238$ 32,590,135$
Plan's Net Pension Liability/(Asset)
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued
CalPERS financial reports.
E. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2020, the City recognized pension expense in the amounts of $6,609,704 and
$8,838,448 for the miscellaneous plan and safety plan, respectively.
As of measurement date of June 30, 2019, the City has deferred outflows and deferred inflows of resources
related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 3,644,363$ -$
Changes of assumptions - (225,607)
Difference between expected and actual experience 2,351,262 -
Net difference between projected and actual earning on
pension plan investments - (552,670)
Total 5,995,625$ (778,277)$
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after the measurement date 6,320,861$ -$
Changes of assumptions 2,728,320 (316,799)
Difference between expected and actual experience - (1,112,059)
Net difference between projected and actual earnings
on pension plan investments - (570,213)
Total 9,049,181$ (1,999,071)$
Safety Plan
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
81
Note 9 – Defined Benefit Pension Plans (CalPERS) (Continued)
E. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$3,644,363 reported in the Miscellaneous Plans and $6,320,861 reported in the Safety Plans as deferred outflows
of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the year ending June 30, 2021. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement
Period Miscellaneous Safety
Ending June 30 Plan Plan
2020 1,584,654$ 1,756,242$
2021 79,838 (852,401)
2022 (151,232) (297,194)
2023 59,725 122,602
2024 - -
Thereafter - -
1,572,985$ 729,249$
Deferred Outflows/(Inflows)
of Resources
Note 10 – Other Postemployment Healthcare Plan
Governmental Business-Type
Activities Sewer Water Activities Total Total
Deferred outflows of resources:
Employer contributions made
subsequent to the measurement date 413,652$ 39,608$ 47,469$ 87,077$ 500,729$
Changes of assumption 386,945 37,050 44,404 81,454 468,399
Total deferred outflows of resources 800,597$ 76,658$ 91,873$ 168,531$ 969,128$
Total OPEB liability 12,056,601$ 1,154,433$ 1,383,568$ 2,538,001$ 14,594,602$
Total OPEB liability 12,056,601$ 1,154,433$ 1,383,568$ 2,538,001$ 14,594,602$
Deferred inflows of Resources:
Change in assumption 1,130,105$ 108,209$ 129,686$ 237,895$ 1,368,000$
Difference between expected and actual experience 1,169,256 111,958 134,179 246,137 1,415,393
Total deferred inflows of resources 2,299,361$ 220,167$ 263,865$ 484,032$ 2,783,393$
OPEB Expense 648,154$ 62,062$ 74,380$ 136,442$ 784,596$
Business-Type Activities
Plan Description
The City of Gilroy Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered
by the City. The plan provides healthcare benefits to eligible retirees and their dependents through the California
Public Employee’s Retirement System healthcare program (PEMHCA) and a post-employment retention/recognition
incentive benefit program (RRIB) which requires proof of medical coverage. Benefit provisions are established and
may be amended through agreements and memorandums of understanding between the City, its management
employees and unions representing City employees.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
82
Note 10 – Other Postemployment Healthcare Plan (Continued)
Plan Description (Continued)
For all retirees under the plan, the City contributes the PEMHCA minimum on the unequal method for eligible
retirees and surviving spouses. The PEMHCA minimum amount is $136 in 2019 and $139 in 2020. No dental, vision
or life insurance benefits are provided.
The RRIB incentive benefit is for certain bargaining units’ retirees that retired prior to July 1, 2014 (police and fire
employees), July 1, 2015 (management employees) or November 1, 2015 (AFSCME, miscellaneous employees).
Prior employees that retired and were fifty (50) or more years of age (police and fire employees) or fifty-five (55) or
more years of age (AFSCME and management employees) and previously retired from City service with a minimum
of fifteen (15) years of service with the City are eligible to receive this postretirement benefit until reaching the age
of sixty-five (65). Additional tiers of years of service were added to the plan to qualify for benefits. This
supplemental pension plan has been discontinued for new participants after the dates noted above. The City offers a
Health Reimbursement Plan (PEMHCA) for new retirees after the dates noted above.
The employer contribution under RRIB provides a temporary monthly annuity (to age 65) up to $300 per month
based on service at retirement to eligible retirees. All classes of employees are covered, if eligible.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. The plan does not
issue a separate report.
Employees Covered
At the measurement date of June 30, 2019, the following current and former employees were covered by the benefit
terms under the plan:
Active plan members 261
Retirees 215
Total 476
Total OPEB Liability
The City’s OPEB liability of $14,594,602 was measured as of June 30, 2019 and was determined by an actuarial
valuation as of June 30, 2019 rolled forward to 2020 using standard update procedures. The OPEB liability from the
governmental activities is primarily liquidated from the general fund.
10.A.b
Packet Pg. 144 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
83
Note 10 – Other Postemployment Healthcare Plan (Continued)
Actuarial Assumptions and Other Inputs
The total OPEB liability as of June 30, 2019 actuarial valuation was determined using the following actuarial
assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Valuation Date June 30, 2019
Contribution Policy No pre-funding
Discount Rate 3.50% at June 30, 2019 (Bond Buyer 20-Bond
Inflation 2.75% annually
Salary Increase Aggregate - 3% annually, Merit - CalPERS 1997-
2015 Experience Study
Mortality, Retirement,
Termination, and
ibili
CalPERS 1997-2015 Experience Study
Mortality Improvement
Scale
Modified projected fully generational with Scale
MP-2019
Healthcare Trend Rate -
Non-Medicare
An annual healthcare cost trend rate of 7.25% for
2021, decreasing to an ultimate rate of 4.0% in
Healthcare Trend Rate -
Medicare
An annual healthcare cost trend rate of 6.3% for
2021, decreasing to an ultimate rate of 4.0% in
Changes in total OPEB Liability
The change in total OPEB liability are as follows:
Total OPEB
Liability
Balance at June 30, 2019 (Measurement Date) 14,934,000$
Changes Recognized for the Measurement Period:
Service Cost 697,310
Interest on the total OPEB liability 594,793
Difference between expected and actual experience (1,655,290)
Changes of assumptions 547,789
Benefit payments (524,000)
Net Changes during July 1, 2018 to June 30, 2019 (339,398)
Balance at June 30, 2019 (Measurement Date) 14,594,602$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate for the Plan, as well as
what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower or one percentage point higher than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%
Rate (2.50%) Rate (3.50%) Rate (4.50%)
16,858,633$ 14,594,602$ 12,772,720$
Plan's Total OPEB Liability
10.A.b
Packet Pg. 145 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
84
Note 10 – Other Postemployment Healthcare Plan (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate (Continued)
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if
it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher)
than the current healthcare cost trend rates:
Healthcare Cost
-1% Trend Rates 1%
12,524,048$ 14,594,602$ 17,224,950$
Plan's Total OPEB Liability
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2020, the City recognized OPEB expense of $784,596. At June 30, 2020, the City reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred outflows Deferred inflows
of Resources of Resources
Difference between expected and actual experience -$ (1,415,393)$
Changes of assumptions 468,399 (1,368,000)
Employer contributions made
subsequent to the measurement date 500,729 -
Total 969,128$ (2,783,393)$
$500,729 reported as deferred outflows of resources related to contributions subsequent to the measurement date will
be recognized as a reduction of the OPEB liability in the year ending June 30, 2021. The change in assumptions was
due to the change in discount rate of 3.50% from 3.87% for the June 30, 2019 measurement date and is amortized
over the average expected remaining service lives.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized as OPEB expense as follows:
Measurement Period Deferred Outflows/
Ended June 30 (Inflows) of Resources
2021 (507,507)$
2022 (507,507)
2023 (507,507)
2024 (420,507)
2025 (227,507)
Thereafter (144,459)
(2,314,994)$
10.A.b
Packet Pg. 146 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
85
Note 11 – Claims Payable
The workers’ compensation and general liability claims administrators have estimated liabilities for probable future
payments relating to claims outstanding as of June 30, 2020 in the following amounts which are recorded in separate
internal service funds:
Worker' compensation claims 2,932,396$
General liability claims 690,049
Total claims payable 3,622,445$
Although the eventual outcome of these claims is uncertain, in the opinion of management, the resolution of these
matters is not expected to have a material adverse effect on the financial condition of the City, beyond the provision
for losses reflected in the recorded claims payable liabilities.
Changes in claims payable for workers’ compensation for the past three fiscal years are as follows:
Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Workers' Compensation Liability Estimates Payments Liability One Year One Year
2017-2018 2,991,505$ 485,364$ (588,389)$ 2,888,480$ 780,000$ 2,108,480$
2018-2019 2,888,480 1,433,203 (1,066,813) 3,254,870 879,000 2,375,870
2019-2020 3,254,870 70,329 (392,803) 2,932,396 792,000 2,140,396
Changes in claims payable for general liability for the past three fiscal years are as follows:
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
General Liability Liability Estimates Payments Liability One Year One Year
2017-2018 226,974$ 77,496$ (166,232)$ 138,238$ 24,000$ 114,238$
2018-2019 138,238 114,526 (642,811) (390,047) (66,000) (324,047)
2019-2020 609,953 525,681 (445,585) 690,049 117,000 573,049
Note 12 – Risk Management
Bodily injury, property damage and public officials’ errors and omissions insurance is provided via participation in a
joint power’s authority. Effective July 1, 2015, the City is a member of the Municipal Pooling Authority (MPA), a
joint powers authority established pursuant to California Government Code Sections 990.4-990.8 and 6500, et seq.
The pool has 20 member cities. The City is insured by the MPA for up to $29,000,000 per claim for liability
coverage, including $28,000,000 provided by an excess policy with the California Affiliated Risk Management
Authority, after a deductible of $50,000 which is paid by the City. Premiums paid by the participating members may
be retrospectively increased or decreased to reflect the actual operating costs of MPA and the City’s share of incurred
losses. The City is contingently liable for assessments which may be made by MPA in the event that MPA has
insufficient resources to pay unexpectedly large claims. Prior to July 1, 2015, the City was a member of the ABAG
Plan Corp. (ABAG Plan) insurance pool, a nonprofit public benefit corporation organized under Section 5110, et seq.
of the Corporations Code of California. ABAG Plan, now called PLAN JPA, coverage applies to occurrences/claims
prior to July 1, 2015. The City was operating under a five-year withdrawal agreement with PLAN JPA due to
unresolved claims that had not yet closed. During the fiscal year ended June 30, 2020, a final actuarial valuation was
completed as required by the Withdrawal Agreement and necessary equity has been returned to the City.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
86
Note 12 – Risk Management (Continued)
The City is self-insured for the first $500,000 of each workers’ compensation claim. The City belongs to the Local
Agency Workers’ Compensation Excess (LAWCX) joint powers authority, established pursuant to California
Government Code Sections 990.4-990.8 and 6500 et seq., for the purpose of workers’ compensation excess coverage.
LAWCX coverage is for individual workers’ compensation claims in excess of $500,000 up to $5,000,000. In
addition, additional excess coverage beyond $5,000,000 is purchased via California State Association of Counties
Excess Insurance Authority (CSAC EIA) bringing statutory coverage to $50,000,000.
Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three
fiscal years.
Note 13 – Commitments and Contingencies
Under the terms of federal, county, and state grants, periodic audits are required and certain costs may be questioned
as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor
agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.
The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the
opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the
City’s financial position.
Gilroy Garlic Festival
On July 28, 2019, the Gilroy Garlic Festival, held at Christmas Hill Park, was the site of a mass shooting. The
gunman killed himself and three others and wounded 17 people. The City’s response costs have been submitted to
the California Governor’s Office of Emergency Services (Cal OES) for reimbursement consideration. The City may
incur additional financial impacts as a result of this tragedy. However, at this time, the extent of those impact is
unknown.
COVID-19
In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social
disruption. The coronavirus was declared a Public Health Emergency of International Concern by the World Health
Organization on January 30, 2020. The operations and business results of the City could potentially be adversely
affected by this global pandemic. The extent to which the coronavirus may impact business activity or investment
results will depend on future developments, which are highly uncertain and cannot be predicted, including new
information which may emerge concerning the severity of the coronavirus and the actions required to contain the
coronavirus. The ultimate financial impact and duration cannot be estimated at this time.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
87
Note 13 – Commitments and Contingencies (Continued)
The City had the following commitments outstanding as of June 30, 2020:
Name of Project Spent-to-date
Remaining
Commitment
Citywide Sign Replacement -$ 289,060$
FY21 Citywide Pavement Maintenance 2,900,058
-$ 3,189,118$
Note 14 – Classification of Fund Balances
Public Facilities Gilroy Community Nonmajor
Impact Capital Library Debt Governmental
General Projects Fund Service Fund Funds Total
Nonspendable:
Inventory of materials 108,338$ -$ -$ -$ 108,338$
Prepaid items 18,577 - - - 18,577
Land held for resale - - - 706,754 706,754
126,915 - - 706,754 833,669
Restricted:
Public safety - - - 560,033 560,033
Community library - - 1,138,516 5,229,657 6,368,173
Street maintenance - - - 6,499,937 6,499,937
Grant programs - - - 2,133,862 2,133,862
Housing - - - 2,807,898 2,807,898
Traffic impact - - - 13,414,069 13,414,069
Sewer development - - - 13,376,865 13,376,865
Water development - - - 4,656,240 4,656,240
Storm drains - - - 2,046,518 2,046,518
Community
development - - - 2,606,943 2,606,943
Debt service - - - 2,951,145 2,951,145
Subtotal - - 1,138,516 56,283,167 57,421,683
Assigned:
Capital projects - - - 5,368,008 5,368,008
Subtotal - - - 5,368,008 5,368,008
Unassigned (deficit) 14,731,555 (6,358,684) - (21,954) 8,350,917
Total 14,858,470$ (6,358,684)$ 1,138,516$ 62,335,975$ 71,974,277$
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
88
Note 14 – Classification of Fund Balances (Continued)
General Fund Balance Policy
The City’s general fund reserve policy consists of an unrestricted General Fund Reserve of 25% of general fund
expenditures and an Economic Stability Reserve of 15% of general fund expenditures. The Economic Stability
Reserve would only be used in extraordinary circumstances, upon satisfaction of one of the following “economic
triggers” and with the majority vote of the City Council: (i) state take-away of significant revenue; (ii) large drop
in property taxes (decrease in assessed valuations), (iii) major business closures (sales tax and/or utility users’ tax
impact); (iv) dramatic drop in development from projections; (v) large unexpected drop in sales taxes (or other primary
revenues - utility users’ tax, franchise fees or transient occupancy tax) due to severe recession or (vi) the economic
triggers cause the General Fund Reserve to fall below a predetermined percentage of expenditures (e.g. 20%). In the
event the Economic Stability Reserve is used, the City is obligated to replenish the reserve by the end of the next
biennial budget to 15% of the general fund expenditures for the given year.
Note 15 – Prior Period Adjustments
The City made following prior period adjustments as of July 1, 2019:
Governmental Business-Type
Activities Activities Total
Net position at July 1, 2019, as previously reported 168,398,582$ 191,188,191$ 359,586,773$
Understatement of accounts receivable grants 1,002,177 - 1,002,177
Understatement of capital assets, net 414,240 - 414,240
(Under)over-statement of net pension liabilities and related items* 5,631,139 (5,631,139) -
(Under)over-statement of net OPEB liabilities and related items* 2,804,138 (2,804,138) -
Net position at July 1, 2019, as restated 178,250,276$ 182,752,914$ 361,003,190$
Sewer Water Total
Net position at July 1, 2019, as previously reported 114,098,068$ 77,090,123$ 191,188,191$
Understatement of net pension liabilities and related items (3,027,098) (2,604,041) (5,631,139)
Understatement of net OPEB liabilities and related items (1,275,488) (1,528,650) (2,804,138)
Net position at July 1, 2019, as restated 109,795,482$ 72,957,432$ 182,752,914$
Enterprise Funds
*Prior period adjustments in pension and OPEB liabilities and related items were due to correcting the allocation
between Governmental Activities and Business-Type Activities.
10.A.b
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City of Gilroy
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2020
89
Note 16 – Subsequent Events
COVID-19 Funding
On June 29, 2020, the State approved the budget and authorized the Department of Finance to allocate
$1,289,065,000 to address the public health and public safety impacts of COVID-19 including homelessness.
Pursuant to the provisions of Control Section 11.90, cities with populations between 300,000 and 500,000 were
allocated $225 million and cities with populations of less than 300,000 were allocated $275 million. Based on the
City’s population, the City was allocated $704,824 and be received starting July 2020.
Bond Issuance
On July 29, 2020, the City issued Gilroy Public Facilities financing Authority Lease Revenue Refunding Bonds,
Series 2020A for $13,740,000 to refund the Authority’s outstanding Refunding Lease Revenue Bonds, Series 2010
and to pay for the cost associated with the issuance of the Series 2020A.
General Fund Amendment
At the June 1, 2020, City Council Meeting, a recovery plan was introduced to Council to address the decrease of
revenue sources due to COVID19 emergency incident. As part of the recovery plan, staff recommended reductions in
staffing and operating expenses to address the shortfall in FY21 and the estimated $8 million shortfall in subsequent
years. Approval of the General Fund amendments to FY21 were adopted in FY21 (November 16, 2020 City Council
Meeting).
10.A.b
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
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Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15
2013-141
Total pension liability
Service cost 2,218,281$ 2,107,888$ 2,119,709$ 1,974,107$ 1,914,477$ 1,886,470$
Interest 7,888,537 7,397,421 7,057,333 6,992,371 6,720,915 6,378,166
Changes of benefit terms - - - - - -
Changes of assumptions - (870,201) 5,558,063 - (1,563,145) -
Differences between expected and actual experience 3,067,906 1,618,519 (2,724,046) (878,722) 67,994 -
Benefit payments, including refunds of employee
contributions (6,003,668) (5,515,662) (4,810,256) (4,335,513) (4,140,599) (3,800,609)
Net change in total pension liability 7,171,056 4,737,965 7,200,803 3,752,243 2,999,642 4,464,027
Total pension liability - beginning 109,153,967 104,416,002 97,215,199 93,462,956 90,463,314 85,999,287
Total pension liability - ending (a)116,325,023$ 109,153,967$ 104,416,002$ 97,215,199$ 93,462,956$ 90,463,314$
Pension fiduciary net position
Contributions - employer 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ 2,236,836$ 2,105,469$
Contributions - employee 992,926 1,003,145 888,342 895,816 894,531 978,326
Net investment income 5,226,520 6,275,073 7,621,577 355,337 1,523,463 10,200,504
Benefit payments, including refunds of employee
contributions (6,003,668) (5,515,662) (4,810,256) (4,335,513) (4,140,599) (3,800,609)
Plan to plan resource movement - (182) - - - -
Administrative expense 2 (55,985) (115,667) (100,535) (41,912) (77,393) -
Other Miscellaneous Income/(Expense)1 182 (219,654) - - - -
Net change in plan fiduciary net position 3,414,156 4,223,543 6,134,773 (677,528) 436,838 9,483,690
Plan fiduciary net position - beginning 3 78,451,278 74,227,735 68,092,962 68,770,490 68,333,652 58,849,962
Plan fiduciary net position - ending (b)81,865,434$ 78,451,278$ 74,227,735$ 68,092,962$ 68,770,490$ 68,333,652$
Plan net pension liability - ending (a) - (b)34,459,589$ 30,702,689$ 30,188,267$ 29,122,237$ 24,692,466$ 22,129,662$
Plan fiduciary net position as a percentage 70.38% 71.87% 71.09% 70.04% 73.58% 75.54%
of the total pension liability
Covered payroll3 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ 10,920,524$ 10,072,452$
Plan net pension liability as a percentage of covered
payroll 287.09% 267.98% 276.90% 260.27% 226.11% 219.70%
Notes to Schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This
applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of
Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016,
there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a
reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2020
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal
years ended June 30, 2014-17.
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Measurement period 2018-19 2017-18 2016-17 2015-16 2014-15
2013-141
Total pension liability
Service cost 4,001,654$ 3,782,506$ 3,795,030$ 3,436,724$ 3,251,786$ 3,441,840$
Interest 11,586,454 11,090,179 10,658,420 10,258,316 9,778,748 9,235,218
Changes of benefit terms - - - - - -
Changes of assumptions - (633,599) 9,024,447 - (2,444,546) -
Differences between expected and actual experience (560,783) (600,354) (1,138,485) (557,694) 437,762 -
Benefit payments, including refunds of employee
contributions (7,569,570) (7,391,540) (6,957,768) (6,616,198) (5,976,690) (5,792,746)
Net change in total pension liability 7,457,755 6,247,192 15,381,644 6,521,148 5,047,060 6,884,312
Total pension liability - beginning 164,393,053 158,145,861 142,764,217 136,243,069 131,196,009 124,311,697
Total pension liability - ending (a)171,850,808$ 164,393,053$ 158,145,861$ 142,764,217$ 136,243,069$ 131,196,009$
Pension fiduciary net position
Contributions - employer 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ 3,911,991$ 3,844,918$
Contributions - employee 1,245,565 1,196,981 1,157,337 1,130,369 1,106,970 1,082,775
Net investment income 7,469,298 8,983,812 10,785,793 541,083 2,139,791 14,460,928
Benefit payments, including refunds of employee
contributions (7,569,570) (7,391,540) (6,957,768) (6,616,198) (5,976,690) (5,792,746)
Plan to plan resource movement - (263) - - - -
Administrative expense 2 (80,996) (165,621) (143,087) (59,596) (110,062) -
Other Miscellaneous Income/(Expense)1 263 (314,517) - - - -
Net change in plan fiduciary net position 6,637,554 7,215,185 9,370,535 (872,655) 1,072,000 13,595,875
Plan fiduciary net position - beginning 3 113,500,016 106,284,831 96,914,296 97,786,951 96,714,951 83,119,076
Plan fiduciary net position - ending (b)120,137,570$ 113,500,016$ 106,284,831$ 96,914,296$ 97,786,951$ 96,714,951$
Plan net pension liability - ending (a) - (b)51,713,238$ 50,893,037$ 51,861,030$ 45,849,921$ 38,456,118$ 34,481,058$
Plan fiduciary net position as a percentage 69.91% 69.04% 67.21% 67.88% 71.77% 73.72%
of the total pension liability
Covered payroll3 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ 12,055,260$ 12,092,757$
Plan net pension liability as a percentage of covered
payroll 383.63% 395.16% 408.33% 362.80% 319.00% 285.14%
Notes to Schedule:
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal
years ended June 30, 2014-17.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This
applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of
Actuarial Assumption December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016,
there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a
reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued)
For the Year Ended June 30, 2020
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
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Fiscal Year End 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
2013-14 1
Actuarially determined contribution 3,644,363$ 3,254,181$ 2,796,490$ 2,535,645$ 2,448,744$ 2,236,836$ 2,105,469$
Contributions in relation to the actuarially
determined contribution2 (3,644,363) (3,254,181) (2,796,490) (2,535,645) (2,448,744) (2,236,836) (2,105,469)
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$
Covered payroll3 12,363,124$ 12,003,033$ 11,457,160$ 10,902,171$ 11,189,178$ 10,920,524$ 10,072,452$
Contributions as a percentage of covered
payroll3 29.48% 27.11% 24.41% 23.26% 21.88% 20.48% 20.90%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll Growth 3.00%
Investment rate of return
Retirement age
Mortality
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension
For the Year Ended June 30, 2020
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
7.375% net of pension plan investment expenses; includes Inflation.
The probabilities of retirement are based on the 2014 CalPERS Experience study for
the period from 1997 to 2011.
The probabilities of mortality are based on the 2014 CalPERS Experience Study for
the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates
include 20 years of projected mortality improvement using Scale BB published by
the Society of Actuaries.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018-19 were derived from the June 30, 2016 funding
valuation report.
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2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
2013-14 1
Actuarially determined contribution 6,320,861$ 5,572,994$ 4,906,333$ 4,528,260$ 4,131,687$ 3,911,991$ 3,844,918$
Contributions in relation to the actuarially
determined contribution2 (6,320,861) (5,572,994) (4,906,333) (4,528,260) (4,131,687) (3,911,991) (3,844,918)
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$
Covered payroll3 13,884,336$ 13,479,938$ 12,879,248$ 12,700,905$ 12,637,804$ 12,055,260$ 12,092,757$
Contributions as a percentage of covered
payroll3 45.53% 41.34% 38.09% 35.65% 32.69% 32.45% 31.80%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll Growth 3.00%
Investment rate of return
Retirement age
Mortality
The probabilities of retirement are based on the 2014 CalPERS Experience study for
the period from 1997 to 2011.
The probabilities of mortality are based on the 2014 CalPERS Experience Study for
the period from 1997 to 2011. Pre-retirement and Post-retirement mortality rates
include 20 years of projected mortality improvement using Scale BB published by
the Society of Actuaries.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018-19 were derived from the June 30, 2016 funding
valuation report.
7.375% net of pension plan investment expenses; includes Inflation.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption
for fiscal years ended June 30, 2014-17.
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2020
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan
1 Historical information is presented only for measurement periods for which GASB 68 is applicable.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
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Measurement period 2018-19 2017-18 2016-17
Total OPEB liability
Service cost 697,310$ 723,000$ 832,000$
Interest 594,793 546,000 463,000
Actual vs. expected experience (1,655,290) - -
Changes of assumptions 547,789 (625,000) (1,691,000)
Benefit payments, including refunds of employee contributions (524,000) (491,000) (479,000)
Net change in total OPEB liability (339,398) 153,000 (875,000)
Total OPEB liability - beginning 14,934,000 14,781,000 15,656,000
Total OPEB liability - ending (a)14,594,602$ 14,934,000$ 14,781,000$
Covered payroll 3 29,906,910$ 27,610,000$ 26,626,000$
Plan net OPEB liability as a percentage of covered payroll 48.80% 54.09% 55.51%
Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
The discount rate for the June 30, 2017 measurement date was increased to 3.58% from 2.85%.
The discount rate for the June 30, 2018 measurement date was increased to 3.87% from 3.58%.
The discount rate for the June 30, 2019 measurement date was increased to 3.50% from 3.87%.
Other Post Employment Benefit Plan
City of Gilroy
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios
For the Year Ended June 30, 2020
Last Ten Fiscal Years
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes:
Property taxes 14,663,707$ 14,663,707$ 15,595,639$ 931,932$
Sales tax 20,558,684 20,558,684 17,233,882 (3,324,802)
Transient occupancy tax 1,898,986 1,898,986 1,237,812 (661,174)
Utility taxes 4,643,909 4,514,371 5,177,426 663,055
Franchise taxes 1,724,598 1,724,598 1,855,622 131,024
Document transfer tax 313,982 313,982 489,775 175,793
Motor vehicle in lieu tax 32,462 32,462 44,265 11,803
Total taxes 43,836,328 43,706,790 41,634,421 (2,072,369)
Intergovernmental:
Grants 141,500 106,500 196,685 90,185
Total intergovernmental
Charges for Services:
Administrative charges 2,231,512 2,231,512 2,800,293 568,781
Overhead to enterprise 434,756 434,756 445,491 10,735
Plan checks and inspections 2,703,851 2,703,851 1,047,625 (1,656,226)
Special planning services 500,000 500,000 546,308 46,308
Special police services 54,122 54,122 21,075 (33,047)
Special fire services 150,000 150,000 222,617 72,617
Community recreation 1,183,565 1,170,565 788,753 (381,812)
Total charges for services 7,257,806 7,244,806 5,872,162 (1,372,644)
Licenses and Permits:
Business licenses 710,435 710,435 708,554 (1,881)
Hazardous material permits 200,000 200,000 250,925 50,925
Building permits 2,689,783 2,689,783 771,244 (1,918,539)
Other licenses and permits 54,000 54,000 45,928 (8,072)
Total licenses and permits 3,654,218 3,654,218 1,776,651 (1,877,567)
Fines:
Vehicle fines 166,580 166,580 90,839 (75,741)
Parking fines 21,150 21,150 30,010 8,860
Abandoned vehicle 75,000 75,000 161,686 86,686
Total Fines 262,730 262,730 282,535 19,805
Investment incomes 500,637 500,637 489,509 (11,128)
Miscellaneous:
Police and fire 488,536 488,036 627,520 139,484
Community services 116,300 116,300 128,293 11,993
Buildings 2,000 2,000 2,694 694
Other 428,557 428,557 253,211 (175,346)
Total Miscellaneous 1,035,393 1,034,893 1,011,718 (23,175)
Total Revenues 56,688,612$ 56,510,574$ 51,263,681$ (5,246,893)$
(Conitnued)
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2020
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Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
General Government:
City council 209,099 209,099 211,181 (2,082)
City administration 1,384,323 1,384,322 1,397,751 (13,429)
Emergency services 4,020 1,000 442,928 (441,928)
Finance 804,293 794,294 730,637 63,657
General administration 1,489,572 1,483,202 1,630,898 (147,696)
City attorney 435,000 425,000 575,993 (150,993)
Personnel 1,534,031 1,528,030 1,211,154 316,876
Total general government 5,860,338 5,824,947 6,200,542 (375,595)
Public Safety:
Police administration 3,735,485 3,735,484 4,003,359 (267,875)
Police patrol operations 16,206,794 16,204,094 15,194,094 1,010,000
Police investigation 1,626,649 1,607,150 1,458,790 148,360
Communications 2,344,324 2,344,324 1,988,891 355,433
Police records 1,320,961 1,320,960 1,128,481 192,479
Fire administration 1,770,778 1,769,928 1,359,547 410,381
Fire operations 10,857,429 10,856,228 10,560,424 295,804
Total public safety 37,862,420 37,838,168 35,693,586 2,144,582
Community Services:
Public information 680,525 680,525 616,654 63,871
Environmental programs 129,083 124,683 201,837 (77,154)
Street maintenance/forestry 1,271,666 1,254,969 1,219,837 35,132
Landscape maintenance 2,993,191 2,993,190 2,718,569 274,621
Community recreation 3,834,832 3,792,446 3,140,748 651,698
Total community services 8,909,297 8,845,813 7,897,645 948,168
Community development:
Public works and administration: 261,065 261,065 269,462 (8,397)
Engineering 1,417,147 1,420,741 1,165,373 255,368
Planning 2,310,718 3,766,154 2,462,528 1,303,626
B.L.E.S.1,956,937 1,956,938 1,624,692 332,246
Chemical containment hazardous materials 641,214 641,214 633,191 8,023
Economic development 160,669 257,317 191,819 65,498
Total community development 6,747,750 8,303,429 6,347,065 1,956,364
TOTAL EXPENDITURES 59,379,805 60,812,357 56,138,838 4,673,519
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,691,193) (4,301,783) (4,875,157) (573,374)
OTHER FINANCING SOURCES:
Transfers in 144,000 144,000 239,510 95,510
Transfers out (1,784,633) (6,409,633) (8,265,753) (1,856,120)
Total other financing sources (1,640,633) (6,265,633) (8,026,243) (1,760,610)
NET CHANGE IN FUND BALANCE (4,331,826)$ (10,567,416)$ (12,901,400) (2,333,984)$
FUND BALANCE:
Beginning of Year 27,759,870
End of Year 14,858,470$
(Concluded)
For the Year Ended June 30, 2020
City of Gilroy
Required Supplementary Information
Budgetary Comparison Schedule - General Fund (Continued)
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Packet Pg. 162 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
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. The budgetary comparison schedules
are not presented for the Lease Revenue Bond Series 2020A Debt Service Fund.
City of Gilroy
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2020
Budget and Budgetary Accounting
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SUPPLEMENTARY INFORMATION
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Charges for services 8,993,125$ 8,993,125$ 3,679,043$ (5,314,082)$
Investment income 153,606 153,606 78,375 (75,231)
Total revenues 9,146,731 9,146,731 3,757,418 (5,389,313)
EXPENDITURES:
Current:
Community development 10,000 4,110,675 3,277,318 833,357
Debt service:
Interest and fiscal charges 58,715 58,715 102,559 (43,844)
Total expenditures 68,715 4,169,390 3,379,877 789,513
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 9,078,016 4,977,341 377,541 (4,599,800)
OTHER FINANCIN SOURCES (USES):
Transfers in 40,763 40,763 40,762 (1)
Transfers out (3,594,976) (3,594,976) (3,594,976) -
Total other financing sources (uses)(3,554,213) (3,554,213) (3,554,214) (1)
NET CHANGE IN FUND BALANCE 5,523,803$ 1,423,128$ (3,176,673) (4,599,801)$
FUND BALANCE:
Beginning of Year (3,182,011)
End of Year (6,358,684)$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Public Facilities Impact Capital Projects Fund
For the Year Ended June 30, 2020
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Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes 2,114,233$ 2,114,233$ 1,921,576$ (192,657)$
Investment income 27,179 27,179 97,797 70,618
Total revenues 2,141,412 2,141,412 2,019,373 (122,039)
EXPENDITURES:
Current:
General government 5,200 5,200 129,296 (124,096)
Debt service:
Principal retirement 865,000 865,000 1,090,630 (225,630)
Interest and fiscal charges 1,244,033 1,244,033 1,123,892 120,141
Total expenditures 2,114,233 2,114,233 2,343,818 (229,585)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 27,179 27,179 (324,445) (351,624)
OTHER FINANCIN SOURCES (USES):
Bond proceeds - - 19,087,551 19,087,551
Payment to refunded bond escrow - - (19,350,000) (19,350,000)
Total other financing sources (uses)- - (262,449) (262,449)
NET CHANGE IN FUND BALANCE 27,179$ 27,179$ (586,894) (614,073)$
FUND BALANCE:
Beginning of Year 1,725,410
End of Year 1,138,516$
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, 2020
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BANS 2009 Financing -This fund is used to account for the 2009 short-term refinancing of the City’s public facilities debt. The
City included its cost for the Christopher High School joint use public facilities with GUSD in the refinancing.
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.
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 -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.
CalHome Funds - This fund is used to account funds received from South County Housing to support future homebuyers.
Traffic Impact - 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 - 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.
Utility Undergrounding - This fund is used to allocate resources to underground existing overhead utilities (electricity, telephone
and cable) along fully constructed streets. The City collects the fee from developers as development occurs along these streets.
Street Trees Development - This fund is used to account for the collection of a front footage fee to plant trees in new developments.
Prop 172 Sales Tax - This fund is used to account for funds received from state sales tax used for public safety activities.
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 - 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 - This fund is used to account for County Measure A and other transportation grants used to repair and
rebuild various roads.
Public Safety Grants - This fund is used to account for state and federal grants used for public safety activities.
SPECIAL REVENUE FUNDS
Community Development Block Grant - This fund is used to account for Housing and Urban Development grants used to operate
the Community Development Grant Program.
Rehabilitation Loans - This fund is used to account for loan proceeds used from the state for housing projects.
Housing Trust Fund - This fund is used to account for local funds used to address affordable housing and homelessness, for both
capital projects and services provided to homebuyers regarding down payment assistance and administrative oversight.
Community Facilities District - 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 - 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 - This fund is used to account for street and road maintenance and repair projects.
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Refunding Lease 2010 -This fund is used to account for the payments of debt service of principal and interest for the PFFA
Refunding Lease 2010 Bonds.
2013 Refunding Bond -This fund is used to account for the payments of debt service of principal and interest for the 2013 Lease
Revenue Refunding Bonds.
Bank Interest - This fund is used to account for the interest earned on the citywide treasurer’s investment pool. Quarterly, the
earnings are allocated to the appropriate funds. At the end of the fiscal year, the earnings of those funds not subject to interest are
transferred to the Capital Projects Fund.
Gilroy Community Library - 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.
Lease Revenue Bonds Series 2020A - This fund is used to account for the payments of debt service of principal and interest for the
PFFA Lease Revenue 2020A Bonds.
Sewer Development - This fund is used to account for the construction of sewer collection and conveyance systems within the City
as described in the City of Gilroy’s Sewer Master Plan. Improvements and expansions of the City’s sewer system are needed to
accommodate development of new residential, commercial and industrial uses within the City. The sewer development fee is used to
expand system capacity to accommodate new development.
CA Energy Commission Loan -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.
NONMAJOR GOVERNMENTAL FUNDS (Continued)
CAPITAL PROJECTS FUNDS (Continued)
DEBT SERVICE FUNDS
These funds account for resources accumulated for the payment of principal and interest (other than that for proprietary fund debt).
Water Development - This fund is used to account for the construction of water transmission, distribution and storage systems within
Pressure Zone 1 of the City’s water system as described in the City of Gilroy’s Water Master Plan. Improvements and expansions of
the City’s water system are needed to accommodate development of new residential, commercial and industrial uses within the City.
The water development fee is used to expand capacity to accommodate new development.
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Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
ASSETS
Cash and investments 6,499,984$ 152,213$ 441,288$ 44,160$
Receivables:
Accounts - - 40,000 -
Due from other governments 420,891 - 99,552 40,048
Interest - - - -
Loans and notes - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 6,920,875$ 152,213$ 580,840$ 84,208$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 420,938$ 98,585$ 46,263$ 12,927$
Accrued liabilities - - 45,825 -
Unearned revenue - - - -
Due to other funds - - - -
Due to the component unit - - - -
Total liabilities 420,938 98,585 92,088 12,927
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Nonspendable - - - -
Restricted 6,499,937 53,628 488,752 71,281
Assigned - - - -
Unassigned (deficit)- - - -
Total fund balances 6,499,937 53,628 488,752 71,281
Total liabilities, deferred inflows of
resources, and fund balances 6,920,875$ 152,213$ 580,840$ 84,208$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2020
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Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
ASSETS
Cash and investments 332,168$ 230$ 906,106$ 1,255,483$
Receivables:
Accounts - - - -
Due from other governments 190,429 - - 3,447
Interest 378,998 - 290,619 -
Loans and notes 1,826,475 - 1,385,524 -
Advances from other funds - - - -
Land held for resale - - 706,754 -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 2,728,070$ 230$ 3,289,003$ 1,258,930$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 166,786$ -$ 34,396$ 23,762$
Accrued liabilities 42,301 - 24,874 -
Unearned revenue - - - -
Due to other funds - - - -
Due to the component unit - - - -
Total liabilities 209,087 - 59,270 23,762
Deferred inflows of resources:
Unavailable revenues 385,351 - 290,619 -
Total deferred inflows of resources 385,351 - 290,619 -
Fund balances:
Nonspendable - - 706,754 -
Restricted 2,133,632 230 2,232,360 1,235,168
Assigned - - - -
Unassigned (deficit)- - - -
Total fund balances 2,133,632 230 2,939,114 1,235,168
Total liabilities, deferred inflows of
resources, and fund balances 2,728,070$ 230$ 3,289,003$ 1,258,930$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 171 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
ASSETS
Cash and investments 244,298$ 1,180,136$ 405,525$ 210,013$
Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - 52,347
Loans and notes - - - 180,600
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 244,298$ 1,180,136$ 405,525$ 442,960$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ 44,700$ -$ -$
Accrued liabilities - - - -
Unearned revenue 240,462 - - 272,947
Due to other funds - - - -
Due to the component unit - - - -
Total liabilities 240,462 44,700 - 272,947
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Nonspendable - - - -
Restricted 3,836 1,135,436 405,525 170,013
Assigned - - - -
Unassigned (deficit)- - - -
Total fund balances 3,836 1,135,436 405,525 170,013
Total liabilities, deferred inflows of
resources, and fund balances 244,298$ 1,180,136$ 405,525$ 442,960$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 172 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
ASSETS
Cash and investments 5,413,114$ 34,795$ 13,554,468$ 1,039,566$
Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - -
Loans and notes - - - -
Advances from other funds - - - 1,006,952
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 5,413,114$ 34,795$ 13,554,468$ 2,046,518$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 45,106$ -$ 5,257$ -$
Accrued liabilities - - - -
Unearned revenue - - 135,142 -
Due to other funds - - - -
Due to the component unit - - - -
Total liabilities 45,106 - 140,399 -
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Nonspendable - - - -
Restricted - 34,795 13,414,069 2,046,518
Assigned 5,368,008 - - -
Unassigned (deficit)- - - -
Total fund balances 5,368,008 34,795 13,414,069 2,046,518
Total liabilities, deferred inflows of
resources, and fund balances 5,413,114$ 34,795$ 13,554,468$ 2,046,518$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 173 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Street
Utility Trees Sewer Water
Undergrounding Development Development Development
ASSETS
Cash and investments 8,092$ 135,988$ 12,146,465$ 4,680,558$
Receivables:
Accounts - - - -
Due from other governments - - - -
Interest - - - -
Loans and notes - - - -
Advances from other funds - - 1,751,884 -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total assets 8,092$ 135,988$ 13,898,349$ 4,680,558$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Unearned revenue - - 94,696 24,318
Due to other funds - - - -
Due to the component unit - - 426,788 -
Total liabilities - - 521,484 24,318
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Nonspendable - - - -
Restricted 8,092 135,988 13,376,865 4,656,240
Assigned - - - -
Unassigned (deficit)- - - -
Total fund balances 8,092 135,988 13,376,865 4,656,240
Total liabilities, deferred inflows of
resources, and fund balances 8,092$ 135,988$ 13,898,349$ 4,680,558$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 174 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Gilroy Refunding 2013
Bank Community Lease Refunding
Interest Library 2010 Bond
ASSETS
Cash and investments -$ 5,210,718$ 152,361$ 81,429$
Receivables:
Accounts - - - -
Due from other governments - 18,939 - -
Interest 450,911 - - -
Loans and notes - - - -
Advances from other funds - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - 1,775,370 922,112
Total assets 450,911$ 5,229,657$ 1,927,731$ 1,003,541$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 1,900$ -$ -$ -$
Accrued liabilities - - - -
Unearned revenue - - - -
Due to other funds 449,065 - - -
Due to the component unit - - - -
Total liabilities 450,965 - - -
Deferred inflows of resources:
Unavailable revenues - - - -
Total deferred inflows of resources - - - -
Fund balances:
Nonspendable - - - -
Restricted - 5,229,657 1,927,731 1,003,541
Assigned - - - -
Unassigned (deficit)(54) - - -
Total fund balances (54) 5,229,657 1,927,731 1,003,541
Total liabilities, deferred inflows of
resources, and fund balances 450,911$ 5,229,657$ 1,927,731$ 1,003,541$
(Continued)
Capital Projects Funds Debt Service Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 175 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
CA Energy Lease Revenue Total Other
Commission Bond Series Governmental
Loan 2020A Funds
ASSETS
Cash and investments 19,873$ -$ 54,149,031$
Receivables:
Accounts - - 40,000
Due from other governments - - 773,306
Interest - - 1,172,875
Loans and notes - - 3,392,599
Advances from other funds - - 2,758,836
Land held for resale - - 706,754
Restricted assets:
Cash and investments with fiscal agents - - 2,697,482
Total assets 19,873$ -$ 65,690,883$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 900,620$
Accrued liabilities - - 113,000
Unearned revenue - - 767,565
Due to other funds - 21,900 470,965
Due to the component unit - - 426,788
Total liabilities - 21,900 2,678,938
Deferred inflows of resources:
Unavailable revenues - - 675,970
Total deferred inflows of resources - - 675,970
Fund balances:
Nonspendable - - 706,754
Restricted 19,873 - 56,283,167
Assigned - - 5,368,008
Unassigned (deficit)- (21,900) (21,954)
Total fund balances 19,873 (21,900) 62,335,975
Total liabilities, deferred inflows of
resources, and fund balances 19,873$ -$ 65,690,883$
(Concluded)
Debt Service Funds
City of Gilroy
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2020
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Packet Pg. 176 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Public
Pavement Safety Prop 172
Gas Tax Management Grants Sales Tax
Revenues:
Taxes -$ -$ -$ 260,773$
Intergovernmental 3,476,089 133,234 805,278 -
Charges for services - - - -
Investment income 112,525 513 10,236 552
Miscellaneous 31,600 - 90,678 -
Total revenues 3,620,214 133,747 906,192 261,325
Expenditures:
Current:
General government - - - -
Public safety - - 881,173 293,128
Community development 2,757,438 57,996 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 2,757,438 57,996 881,173 293,128
Revenues over (under)
expenditures 862,776 75,751 25,019 (31,803)
Other financing sources (uses):
Transfers in - - 140,265 34,970
Transfers out (107,363) - (185,449) (3,167)
Total other financing sources (uses)(107,363) - (45,184) 31,803
Net Change in Fund Balances 755,413 75,751 (20,165) -
Fund balances:
Beginning of year 5,744,524 (22,123) 508,917 71,281
End of year 6,499,937$ 53,628$ 488,752$ 71,281$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
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Community Housing Community
Development Rehabilitation Trust Facilities
Block Grant Loans Fund District
Revenues:
Taxes -$ -$ -$ 453,167$
Intergovernmental 445,291 - - -
Charges for services - - - -
Investment income 11,369 4 46,405 20,682
Miscellaneous 26,438 - 187,696 -
Total revenues 483,098 4 234,101 473,849
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development 519,013 - 113,110 291,297
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 519,013 - 113,110 291,297
Revenues over (under)
expenditures (35,915) 4 120,991 182,552
Other financing sources (uses):
Transfers in - - 12,886 -
Transfers out (55,712) - - -
Total other financing sources (uses)(55,712) - 12,886 -
Net Change in Fund Balances (91,627) 4 133,877 182,552
Fund balances:
Beginning of year 2,225,259 226 2,805,237 1,052,616
End of year 2,133,632$ 230$ 2,939,114$ 1,235,168$
(Continued)
Special Revenue Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
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Vehicle
License Los Arroyos CalHome
Measure B Fee Fund Funds
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - 374,773 42,179 -
Charges for services - - - -
Investment income 3,836 25,058 7,356 9,679
Miscellaneous - - - -
Total revenues 3,836 399,831 49,535 9,679
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - 897,092 - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - 897,092 - -
Revenues over (under)
expenditures 3,836 (497,261) 49,535 9,679
Other financing sources (uses):
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net Change in Fund Balances 3,836 (497,261) 49,535 9,679
Fund balances:
Beginning of year - 1,632,697 355,990 160,334
End of year 3,836$ 1,135,436$ 405,525$ 170,013$
(Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
Special Revenue Funds
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BANS
Capital 2009 Traffic Storm
Projects Financing Impact Drains
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - - -
Charges for services - - 2,319,258 9,538
Investment income 43,699 684 268,940 33,201
Miscellaneous - - - -
Total revenues 43,699 684 2,588,198 42,739
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development 850,025 - 2,075,285 7,292
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures 850,025 - 2,075,285 7,292
Revenues over (under)
expenditures (806,326) 684 512,913 35,447
Other financing sources (uses):
Transfers in 4,690,516 - 48,769 1,196
Transfers out - - - -
Total other financing sources (uses)4,690,516 - 48,769 1,196
Net Change in Fund Balances 3,884,190 684 561,682 36,643
Fund balances:
Beginning of year 1,483,818 34,111 12,852,387 2,009,875
End of year 5,368,008$ 34,795$ 13,414,069$ 2,046,518$
(Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
Capital Projects Funds
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Street
Utility Trees Sewer Water
Undergrounding Development Development Development
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - - -
Charges for services - 344 1,608,755 462,722
Investment income 159 2,673 266,951 92,917
Miscellaneous - - - -
Total revenues 159 3,017 1,875,706 555,639
Expenditures:
Current:
General government - - - -
Public safety - - - -
Community development - - 1,367,560 507,085
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Total expenditures - - 1,367,560 507,085
Revenues over (under)
expenditures 159 3,017 508,146 48,554
Other financing sources (uses):
Transfers in - 27 28,351 5,893
Transfers out - - (693,577) -
Total other financing sources (uses)- 27 (665,226) 5,893
Net Change in Fund Balances 159 3,044 (157,080) 54,447
Fund balances:
Beginning of year 7,933 132,944 13,533,945 4,601,793
End of year 8,092$ 135,988$ 13,376,865$ 4,656,240$
(Continued)
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
Capital Projects Funds
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Packet Pg. 181 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Gilroy Refunding 2013
Bank Community Lease Refunding
Interest Library 2010 Bond
Revenues:
Taxes -$ -$ -$ -$
Intergovernmental - - - -
Charges for services - - - -
Investment income 75,664 105,867 63,731 15,144
Miscellaneous - - - -
Total revenues 75,664 105,867 63,731 15,144
Expenditures:
Current:
General government - - 5,152 4,152
Public safety - - - -
Community development 75,667 - - -
Debt service:
Principal retirement - - 895,000 910,000
Interest and fiscal charges - - 847,207 928,770
Total expenditures 75,667 - 1,747,359 1,842,922
Revenues over (under)
expenditures (3) 105,867 (1,683,628) (1,827,778)
Other financing sources (uses):
Transfers in - - 1,747,706 1,847,270
Transfers out - - - -
Total other financing sources (uses)- - 1,747,706 1,847,270
Net Change in Fund Balances (3) 105,867 64,078 19,492
Fund balances:
Beginning of year (51) 5,123,790 1,863,653 984,049
End of year (54)$ 5,229,657$ 1,927,731$ 1,003,541$
(Continued)
Capital Projects Funds
City of Gilroy
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2020
Debt Service Funds
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Packet Pg. 182 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
CA Energy Lease Revenue Total Other
Commission Bond Series Governmental
Loan 2020A Funds
Revenues:
Taxes -$ -$ 713,940$
Intergovernmental - - 5,276,844
Charges for services - - 4,400,617
Investment income 623 - 1,218,468
Miscellaneous - - 336,412
Total revenues 623 - 11,946,281
Expenditures:
Current:
General government - 21,900 31,204
Public safety - - 1,174,301
Community development - - 9,518,860
Debt service:
Principal retirement 90,582 - 1,895,582
Interest and fiscal charges 9,279 - 1,785,256
Total expenditures 99,861 21,900 14,405,203
Revenues over (under)
expenditures (99,238) (21,900) (2,458,922)
Other financing sources (uses):
Transfers in 99,863 - 8,657,712
Transfers out - - (1,045,268)
Total other financing sources (uses)99,863 - 7,612,444
Net Change in Fund Balances 625 (21,900) 5,153,522
Fund balances:
Beginning of year 19,248 - 57,182,453
End of year 19,873$ (21,900)$ 62,335,975$
(Concluded)
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, 2020
121
10.A.b
Packet Pg. 183 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 2,007,500$ 2,007,500$ 3,476,089$ 1,468,589$
Investment income 114,873 114,872 112,525 (2,347)
Miscellaneous - - 31,600 31,600
Total Revenues 2,122,373 2,122,372 3,620,214 1,497,842
Expenditures:
Current:
Community development 1,221,169 1,535,471 2,757,438 (1,221,967)
Total Expenditures 1,221,169 1,535,471 2,757,438 (1,221,967)
REVENUE OVER
(UNDER) EXPENDITURES 901,204 586,901 862,776 275,875
Other Financing Sources (Uses):
Transfers out (107,363) (107,363) (107,363) -
Total Other Financing Sources (Uses)(107,363) (107,363) (107,363) -
NET CHANGE IN FUND BALANCE 793,841$ 479,538$ 755,413 275,875$
FUND BALANCE:
Beginning of Year 5,744,524
End of Year 6,499,937$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2020
Budgeted Amounts
Gas Tax Special Revenue Fund
122
10.A.b
Packet Pg. 184 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 700,000$ 700,000$ 133,234$ (566,766)$
Investment income - - 513 513
Total Revenues 700,000 700,000 133,747 (566,253)
Expenditures:
Current:
Community development 1,028,000 1,533,297 57,996 1,475,301
Total Expenditures 1,028,000 1,533,297 57,996 1,475,301
REVENUE OVER
(UNDER) EXPENDITURES (328,000) (833,297) 75,751 909,048
NET CHANGE IN FUND BALANCE (328,000)$ (833,297)$ 75,751 909,048$
FUND BALANCE:
Beginning of Year (22,123)
End of Year 53,628$
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, 2020
Budgeted Amounts
123
10.A.b
Packet Pg. 185 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 526,000$ 526,000$ 805,278$ 279,278$
Investment income 11,043 11,043 10,236 (807)
Miscellaneous - - 90,678 90,678
Total Revenues 537,043 537,043 906,192 369,149
Expenditures:
Current:
Public safety 574,664 998,646 881,173 117,473
Total Expenditures 574,664 998,646 881,173 117,473
REVENUE OVER
(UNDER) EXPENDITURES (37,621) (461,603) 25,019 486,622
Other Financing Sources (Uses):
Transfers in 143,664 143,664 140,265 (3,399)
Transfers out (100,000) (100,000) (185,449) (85,449)
Total Other Financing Sources (Uses)43,664 43,664 (45,184) (88,848)
NET CHANGE IN FUND BALANCE 6,043$ (417,939)$ (20,165) 397,774$
FUND BALANCE:
Beginning of Year 508,917
End of Year 488,752$
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, 2020
124
10.A.b
Packet Pg. 186 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 257,000$ 257,000$ 260,773$ 3,773$
Investment income 723 723 552 (171)
Total Revenues 257,723 257,723 261,325 3,602
Expenditures:
Current:
Public safety 292,693 292,693 293,128 (435)
Total Expenditures 292,693 292,693 293,128 (435)
REVENUE OVER
(UNDER) EXPENDITURES (34,970) (34,970) (31,803) 3,167
Other Financing Sources (Uses):
Transfers in 34,970 34,970 34,970 -
Transfers out - - (3,167) (3,167)
Total Other Financing Sources (Uses)34,970 34,970 31,803 (3,167)
NET CHANGE IN FUND BALANCE -$ -$ - -$
FUND BALANCE:
Beginning of Year 71,281
End of Year 71,281$
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, 2020
125
10.A.b
Packet Pg. 187 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 509,869$ 509,869$ 445,291$ (64,578)$
Investment income 3,798 3,798 11,369 7,571
Miscellaneous - - 26,438 26,438
Total Revenues 513,667 513,667 483,098 (30,569)
Expenditures:
Current:
Community development 229,520 529,518 519,013 10,505
Total expenditures 229,520 529,518 519,013 10,505
REVENUE OVER
(UNDER) EXPENDITURES 284,147 (15,851) (35,915) (20,064)
Other Financing Sources (Uses):
Transfers out (53,500) (53,500) (55,712) (2,212)
Total Other Financing Sources (Uses)(53,500) (53,500) (55,712) (2,212)
NET CHANGE IN FUND BALANCE 230,647$ (69,351)$ (91,627) (22,276)$
FUND BALANCE:
Beginning of Year 2,225,259
End of Year 2,133,632$
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, 2020
126
10.A.b
Packet Pg. 188 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 5$ 5$ 4$ (1)$
Total revenues 5 5 4 (1)
Net Change in Fund Balances 5$ 5$ 4 (1)$
Fund balances:
Beginning of year 226
End of year 230$
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Rehabilitation Loans Special Revenue Fund
Budgeted Amounts
For the Year Ended June 30, 2020
127
10.A.b
Packet Pg. 189 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 31,441$ 31,441$ 46,405$ 14,964$
Miscellaneous 55,000 55,000 187,696 132,696
Total revenues 86,441 86,441 234,101 147,660
Expenditures:
Current:
Community development 146,913 149,713 113,110 36,603
Total expenditures 146,913 149,713 113,110 36,603
Revenues over (under)
expenditures (60,472) (63,272) 120,991 184,263
Other financing sources (uses):
Transfers in - - 12,886 12,886
Total other financing sources (uses)- - 12,886 12,886
Net Change in Fund Balances (60,472)$ (63,272)$ 133,877 197,149$
Fund balances:
Beginning of year 2,805,237
End of year 2,939,114$
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, 2020
128
10.A.b
Packet Pg. 190 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes 380,000$ 380,000$ 453,167$ 73,167$
Investment income 16,856 16,855 20,682 3,827
Total revenues 396,856 396,855 473,849 76,994
Expenditures:
Current:
Community development 329,477 329,477 291,297 38,180
Total expenditures 329,477 329,477 291,297 38,180
Net Change in Fund Balances 67,379$ 67,378$ 182,552 115,174$
Fund balances:
Beginning of year 1,052,616
End of year 1,235,168$
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, 2020
129
10.A.b
Packet Pg. 191 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 1,000,804$ 1,000,804$ -$ (1,000,804)$
Investment income - - 3,836 3,836
Total revenues 1,000,804 1,000,804 3,836 (996,968)
Net Change in Fund Balances 1,000,804$ 1,000,804$ 3,836 (996,968)$
Fund balances:
Beginning of year -
End of year 3,836$
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, 2020
130
10.A.b
Packet Pg. 192 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 320,000$ 320,000$ 374,773$ 54,773$
Investment income 37,126 37,126 25,058 (12,068)
Total revenues 357,126 357,126 399,831 42,705
Expenditures:
Current:
Community development 133,600 977,903 897,092 80,811
Total expenditures 133,600 977,903 897,092 80,811
Net Change in Fund Balances 223,526$ (620,777)$ (497,261) 123,516$
Fund balances:
Beginning of year 1,632,697
End of year 1,135,436$
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, 2020
131
10.A.b
Packet Pg. 193 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental -$ -$ 42,179$ 42,179$
Investment income 7,634 7,634 7,356 (278)
Total revenues 7,634 7,634 49,535 41,901
Net Change in Fund Balances 7,634$ 7,634$ 49,535 41,901$
Fund balances:
Beginning of year 355,990
End of year 405,525$
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, 2020
132
10.A.b
Packet Pg. 194 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 2,220$ 2,220$ 9,679$ 7,459$
Total revenues 2,220 2,220 9,679 7,459
Net Change in Fund Balances 2,220$ 2,220$ 9,679 7,459$
Fund balances:
Beginning of year 160,334
End of year 170,013$
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, 2020
133
10.A.b
Packet Pg. 195 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 34,815$ 34,815$ 43,699$ 8,884$
Total revenues 34,815 34,815 43,699 8,884
Expenditures:
Current:
Community development 23,082 1,214,994 850,025 364,969
Total expenditures 23,082 1,214,994 850,025 364,969
Revenues over (under)
expenditures 11,733 (1,180,179) (806,326) 373,853
Other financing sources (uses):
Transfers in - - 4,690,516 4,690,516
Total other financing sources (uses)- - 4,690,516 4,690,516
Net Change in Fund Balances 11,733$ (1,180,179)$ 3,884,190 5,064,369$
Fund balances:
Beginning of year 1,483,818
End of year 5,368,008$
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, 2020
134
10.A.b
Packet Pg. 196 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 276$ 276$ 684$ 408$
Total revenues 276 276 684 408
Net Change in Fund Balances 276$ 276$ 684 408$
Fund balances:
Beginning of year 34,111
End of year 34,795$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
BANS 2009 Financing Capital Projects Fund
For the Year Ended June 30, 2020
135
10.A.b
Packet Pg. 197 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 5,129,491$ 5,129,491$ 2,319,258$ (2,810,233)$
Investment income 302,924 302,924 268,940 (33,984)
Total revenues 5,432,415 5,432,415 2,588,198 (2,844,217)
Expenditures:
Current:
Community development 3,416,697 3,863,439 2,075,285 1,788,154
Total expenditures 3,416,697 3,863,439 2,075,285 1,788,154
Revenues over (under)
expenditures 2,015,718 1,568,976 512,913 (1,056,063)
Other financing sources (uses):
Transfers in 48,769 48,769 48,769 -
Total other financing sources (uses)48,769 48,769 48,769 -
Net Change in Fund Balances 2,064,487$ 1,617,745$ 561,682 (1,056,063)$
Fund balances:
Beginning of year 12,852,387
End of year 13,414,069$
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, 2020
136
10.A.b
Packet Pg. 198 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 74,367$ 74,367$ 9,538$ (64,829)$
Investment income 27,594 27,594 33,201 5,607
Total revenues 101,961 101,961 42,739 (59,222)
Expenditures:
Current:
Community development 155,155 197,522 7,292 190,230
Total expenditures 155,155 197,522 7,292 190,230
Revenues over (under)
expenditures (53,194) (95,561) 35,447 131,008
Other financing sources (uses):
Transfers in 1,196 1,196 1,196 -
Total other financing sources (uses)1,196 1,196 1,196 -
Net Change in Fund Balances (51,998)$ (94,365)$ 36,643 131,008$
Fund balances:
Beginning of year 2,009,875
End of year 2,046,518$
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, 2020
137
10.A.b
Packet Pg. 199 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 181$ 181$ 159$ (22)$
Total revenues 181 181 159 (22)
Net Change in Fund Balances 181$ 181$ 159 (22)$
Fund balances:
Beginning of year 7,933
End of year 8,092$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Utility Undergrounding Capital Projects Fund
For the Year Ended June 30, 2020
138
10.A.b
Packet Pg. 200 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 5,257$ 5,257$ 344$ (4,913)$
Investment income 3,032 3,032 2,673 (359)
Total revenues 8,289 8,289 3,017 (5,272)
Other financing sources (uses):
Transfers in 27 27 27 -
Total other financing sources (uses)27 27 27 -
Net Change in Fund Balances 8,316$ 8,316$ 3,044 (5,272)$
Fund balances:
Beginning of year 132,944
End of year 135,988$
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, 2020
139
10.A.b
Packet Pg. 201 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 3,546,705$ 3,546,705$ 1,608,755$ (1,937,950)$
Investment income 323,585 323,585 266,951 (56,634)
Total revenues 3,870,290 3,870,290 1,875,706 (1,994,584)
Expenditures:
Current:
Community development 3,256,562 3,256,362 1,367,560 1,888,802
Total expenditures 3,256,562 3,256,362 1,367,560 1,888,802
Revenues over (under)
expenditures 613,728 613,928 508,146 (105,782)
Other financing sources (uses):
Transfers in 28,351 28,351 28,351 -
Transfers out (694,146) (694,146) (693,577) 569
Total other financing sources (uses)(665,795) (665,795) (665,226) 569
Net Change in Fund Balances (52,067)$ (51,867)$ (157,080) (105,213)$
Fund balances:
Beginning of year 13,533,945
End of year 13,376,865$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Sewer Development Capital Projects Fund
For the Year Ended June 30, 2020
140
10.A.b
Packet Pg. 202 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 870,563$ 870,563$ 462,722$ (407,841)$
Investment income 102,996 102,996 92,917 (10,079)
Total revenues 973,559 973,559 555,639 (417,920)
Expenditures:
Current:
Community development 447,806 447,806 507,085 (59,279)
Total expenditures 447,806 447,806 507,085 (59,279)
Revenues over (under)
expenditures 525,753 525,753 48,554 (477,199)
Other financing sources (uses):
Transfers in 5,893 5,893 5,893 -
Total other financing sources (uses)5,893 5,893 5,893 -
Net Change in Fund Balances 531,646$ 531,646$ 54,447 (477,199)$
Fund balances:
Beginning of year 4,601,793
End of year 4,656,240$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Water Development Capital Projects Fund
For the Year Ended June 30, 2020
141
10.A.b
Packet Pg. 203 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ 3$ 75,664$ 75,661$
Total revenues - 3 75,664 75,661
Expenditures:
Current:
Community development 96,900 96,900 75,667 21,233
Total expenditures 96,900 96,900 75,667 21,233
Net Change in Fund Balances (96,900)$ (96,897)$ (3) 96,894$
Fund balances:
Beginning of year (51)
End of year (54)$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Bank Interest Capital Projects Fund
For the Year Ended June 30, 2020
142
10.A.b
Packet Pg. 204 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 87,730$ 87,730$ 105,867$ 18,137$
Total revenues 87,730 87,730 105,867 18,137
Net Change in Fund Balances 87,730$ 87,730$ 105,867 18,137$
Fund balances:
Beginning of year 5,123,790
End of year 5,229,657$
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, 2020
143
10.A.b
Packet Pg. 205 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 62,500$ 62,500$ 63,731$ 1,231$
Total revenues 62,500 62,500 63,731 1,231
Expenditures:
Current:
General government 5,500 5,500 5,152 348
Debt service:
Principal retirement 895,000 895,000 895,000 -
Interest and fiscal charges 847,206 847,207 847,207 -
Total expenditures 1,747,706 1,747,707 1,747,359 348
Revenues over (under)
expenditures (1,685,206) (1,685,207) (1,683,628) 1,579
Other financing sources (uses):
Transfers in 1,747,706 1,747,706 1,747,706 -
Total other financing sources (uses)1,747,706 1,747,706 1,747,706 -
Net Change in Fund Balances 62,500$ 62,499$ 64,078 1,579$
Fund balances:
Beginning of year 1,863,653
End of year 1,927,731$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Refunding Lease 2010 Debt Service Fund
For the Year Ended June 30, 2020
144
10.A.b
Packet Pg. 206 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income -$ -$ 15,144$ 15,144$
Total revenues - - 15,144 15,144
Expenditures:
Current:
General government 8,500 8,500 4,152 4,348
Debt service:
Principal retirement 910,000 910,000 910,000 -
Interest and fiscal charges 928,770 928,770 928,770 -
Total expenditures 1,847,270 1,847,270 1,842,922 4,348
Revenues over (under)
expenditures (1,847,270) (1,847,270) (1,827,778) 19,492
Other financing sources (uses):
Transfers in 1,847,270 1,847,270 1,847,270 -
Total other financing sources (uses)1,847,270 1,847,270 1,847,270 -
Net Change in Fund Balances -$ -$ 19,492 19,492$
Fund balances:
Beginning of year 984,049
End of year 1,003,541$
Budgeted Amounts
City of Gilroy
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
2013 Refunding Bond Debt Service Fund
For the Year Ended June 30, 2020
145
10.A.b
Packet Pg. 207 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Investment income 822$ 822$ 623$ (199)$
Total revenues 822 822 623 (199)
Expenditures:
Debt service:
Principal retirement 90,583 90,582 90,582 -
Interest and fiscal charges 9,280 9,279 9,279 -
Total expenditures 99,863 99,861 99,861 -
Revenues over (under)
expenditures (99,041) (99,039) (99,238) (199)
Other financing sources (uses):
Transfers in 99,863 99,863 99,863 -
Total other financing sources (uses)99,863 99,863 99,863 -
Net Change in Fund Balances 822$ 824$ 625 (199)$
Fund balances:
Beginning of year 19,248
End of year 19,873$
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, 2020
146
10.A.b
Packet Pg. 208 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
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.
Fringe 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.
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
$1,000.
Workers’ Compensation - This fund is used to account for all expenses relating to workers’ compensation (i.e., injury claims,
insurance premiums, etc.). The costs are recovered through an annual “user fee” which is charged to all departments/funds that have
employees.
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Fleet Equipment Workers' General
Services Outlay Compensation Liability
ASSETS
Current assets:
Cash and investments 3,358,394$ 2,502,891$ 3,643,623$ 2,186,207$
Cash and investments with fiscal agent - - - -
Accounts receivable - - - -
Inventory of materials 38,973 - - -
Prepaid items - - - -
Total current assets 3,397,367 2,502,891 3,643,623 2,186,207
Noncurrent assets:
Interfund loans receivable 3,220,764 1,017,767 - -
Capital assets:
Nondepreciable - 4,404 - -
Depreciable, net 4,170,770 527,519 - -
Total capital assets 4,170,770 531,923 - -
Total noncurrent assets 7,391,534 1,549,690 - -
Total assets 10,788,901 4,052,581 3,643,623 2,186,207
Current Liabilities:
Accounts payable 163,860 39,163 33 44,423
Accrued liabilities 31,331 - 736 -
Compensated absences, current portion 6,200 - - -
Claims payable, current portion - - 792,000 117,000
Total current liabilities 201,391 39,163 792,769 161,423
Noncurrent liabilities:
Compensated absences 55,313 - - -
Claims payable - - 2,140,396 573,049
Total noncurrent liabilities 55,313 - 2,140,396 573,049
Total liabilities 256,704 39,163 2,933,165 734,472
NET POSITION:
Investment in capital assets 4,170,770 531,923 - -
Unrestricted 6,361,427 3,481,495 710,458 1,451,735
Total net position 10,532,197$ 4,013,418$ 710,458$ 1,451,735$
(Continued)
LIABILITIES
Internal Service Funds
June 30, 2020
City of Gilroy
Combining Statement of Net Position
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Facility Information Fringe
Services Technologies Benefits Total
ASSETS
Current assets:
Cash and investments 1,797,086$ 5,257,205 535,057$ 19,280,463$
Cash and investments with fiscal agent - - 2,000,000 2,000,000
Accounts receivable 33,200 - - 33,200
Inventory of materials - - - 38,973
Prepaid items - 92,244 - 92,244
Total current assets 1,830,286 5,349,449 2,535,057 21,444,880
Noncurrent assets:
Interfund loans receivable - - - 4,238,531
Capital assets:
Nondepreciable - 964,815 - 969,219
Depreciable, net - 306,552 - 5,004,841
Total capital assets - 1,271,367 - 5,974,060
Total noncurrent assets - 1,271,367 - 10,212,591
Total assets 1,830,286 6,620,816 2,535,057 31,657,471
Current Liabilities:
Accounts payable 239,126 264,604 479,876 1,231,085
Accrued liabilities 41,928 37,582 54,971 166,548
Compensated absences, current portion 3,100 2,700 - 12,000
Claims payable, current portion - - - 909,000
Total current liabilities 284,154 304,886 534,847 2,318,633
Noncurrent liabilities:
Compensated absences 28,082 24,604 - 107,999
Claims payable - - - 2,713,445
Total noncurrent liabilities 28,082 24,604 - 2,821,444
Total liabilities 312,236 329,490 534,847 5,140,077
NET POSITION:
Investment in capital assets - 1,271,367 - 5,974,060
Unrestricted 1,518,050 5,019,959 2,000,210 20,543,334
TOTAL NET POSITION 1,518,050$ 6,291,326$ 2,000,210$ 26,517,394$
(Concluded)
LIABILITIES
Internal Service Funds
June 30, 2020
City of Gilroy
Combining Statement of Net Position (Continued)
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Fleet Equipment Workers' General
Services Outlay Compensation Liability
OPERATING REVENUES:
Charges for services 1,626,839$ 125,923$ 1,294,102$ 1,317,106$
Miscellaneous - - - 410,494
Total operating revenues 1,626,839 125,923 1,294,102 1,727,600
OPERATING EXPENSES:
Current:
Operations 1,610,201 326,580 - -
Depreciation 497,251 98,279 - -
Administration - - 220,113 103,236
Claims and judgments - - 392,803 445,585
Insurance premiums - - 224,979 1,148,402
Total operating expenses 2,107,452 424,859 837,895 1,697,223
OPERATING INCOME (LOSS)(480,613) (298,936) 456,207 30,377
NONOPERATING REVENUES:
Investment income 104,548 67,331 66,267 29,623
Total nonoperating revenues 104,548 67,331 66,267 29,623
INCOME (LOSS) BEFORE TRANSFERS (376,065) (231,605) 522,474 60,000
TRANSFERS:
Transfers in 365,000 - - -
Total transfers 365,000 - - -
CHANGES IN NET POSITION (11,065) (231,605) 522,474 60,000
NET POSITION:
Beginning of year 10,543,262 4,245,023 187,984 1,391,735
End of year 10,532,197$ 4,013,418$ 710,458$ 1,451,735$
(Continued)
Internal Service Funds
For the Year Ended June 30, 2020
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position
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Facility Information Fringe
Services Technologies Benefits Total
OPERATING REVENUES:
Charges for services 2,513,352$ 2,482,746$ 16,514,651$ 25,874,719$
Miscellaneous 188,006 3,600 - 602,100
Total operating revenues 2,701,358 2,486,346 16,514,651 26,476,819
OPERATING EXPENSES:
Current:
Operations 2,732,798 2,622,381 16,508,534 23,800,494
Depreciation - 120,821 - 716,351
Administration - - - 323,349
Claims and judgments - - - 838,388
Insurance premiums - - - 1,373,381
Total operating expenses 2,732,798 2,743,202 16,508,534 27,051,963
OPERATING INCOME (LOSS)(31,440) (256,856) 6,117 (575,144)
NONOPERATING REVENUES:
Investment income 31,440 104,329 - 403,538
Total nonoperating revenues 31,440 104,329 - 403,538
INCOME (LOSS) BEFORE TRANSFERS - (152,527) 6,117 (171,606)
TRANSFERS:
Transfers in - 1,155,166 2,000,000 3,520,166
Total transfers - 1,155,166 2,000,000 3,520,166
CHANGES IN NET POSITION - 1,002,639 2,006,117 3,348,560
NET POSITION:
Beginning of year 1,518,050 5,288,687 (5,907) 23,168,834
End of year 1,518,050$ 6,291,326$ 2,000,210$ 26,517,394$
(Concluded)
City of Gilroy
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued)
For the Year Ended June 30, 2020
Internal Service Funds
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Fleet Equipment Workers' General
Services Outlay Compensation Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 1,626,839$ 125,923$ 1,294,102$ 1,727,600$
Cash paid to suppliers for goods and services (892,131) (322,220) (219,194) (79,320)
Cash paid to employees for services (563,213) - - -
Cash paid for insurance claims - - (940,256) (1,513,891)
Net cash provided by (used in) operating activities 171,495 (196,297) 134,652 134,389
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 585,930 111,595 - -
Net cash provided by noncapital financing activities 585,930 111,595 - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (394,674) (206,870) - -
Net Cash (Used in) Capital and Related
Financing Activities (394,674) (206,870) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 104,548 67,331 66,267 29,623
Net Cash Provided by Investing Activities 104,548 67,331 66,267 29,623
Net change in cash and cash equivalents 467,299 (224,241) 200,919 164,012
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 2,891,095 2,727,132 3,442,704 2,022,195
End of year 3,358,394$ 2,502,891$ 3,643,623$ 2,186,207$
CASH AND CASH EQUIVALENTS:
Cash and investments 3,358,394$ 2,502,891$ 3,643,623$ 2,186,207$
Cash and investments with fiscal agent - - - -
Total cash and cash equivalents 3,358,394$ 2,502,891$ 3,643,623$ 2,186,207$
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) (480,613)$ (298,936)$ 456,207$ 30,377$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 497,251 98,279 - -
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables - - - -
(Increase)/decrease in inventory of materials 8,582 - - -
(Increase)/decrease in prepaid items - 24,608 150 -
Increase/(decrease) in accounts payable 138,319 (20,248) 33 23,916
Increase/(decrease) in accrued liabilities 553 - 736 -
Increase/(decrease) in compensated absences 7,403 - - -
Increase/(decrease) in claims payable - - (322,474) 80,096
Net cash provided by (used in) operating activities 171,495$ (196,297)$ 134,652$ 134,389$
City of Gilroy
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2020
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Facility Information Fringe
Services Technologies Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 2,692,048$ 2,493,546$ 16,514,651$ 26,474,709$
Cash paid to suppliers for goods and services (1,789,789) (1,947,423) (16,414,216) (21,664,293)
Cash paid to employees for services (791,055) (610,972) - (1,965,240)
Cash paid for insurance claims - - - (2,454,147)
Net cash provided by (used in) operating activities 111,204 (64,849) 100,435 391,029
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds - 1,155,166 2,000,000 3,852,691
Net cash provided by noncapital financing activities - 1,155,166 2,000,000 3,852,691
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (964,815) - (1,566,359)
Net Cash (Used in) Capital and Related
Financing Activities - (964,815) - (1,566,359)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 31,440 104,329 - 403,538
Net Cash Provided by Investing Activities 31,440 104,329 - 403,538
Net change in cash and cash equivalents 142,644 229,831 2,100,435 3,080,899
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:
Beginning of year 1,654,442 5,027,374 434,622 18,199,564
End of year 1,797,086$ 5,257,205$ 2,535,057$ 21,280,463$
CASH AND CASH EQUIVALENTS:
Cash and investments 1,797,086$ 5,257,205$ 535,057$ 19,280,463$
Cash and investments with fiscal agent - - 2,000,000 2,000,000
Total cash and cash equivalents 1,797,086$ 5,257,205$ 2,535,057$ 21,280,463$
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (used in) Operating Activities:
Operating income (loss) (31,440)$ (256,856)$ 6,117$ (575,144)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation - 120,821 - 716,351
Changes in assets and liabilities:
(Increase)/decrease in accounts receivables (9,310) 7,200 - (2,110)
(Increase)/decrease in inventory of materials - - - 8,582
(Increase)/decrease in prepaid items 244 (92,244) - (67,242)
Increase/(decrease) in accounts payable 148,648 146,273 76,927 513,868
Increase/(decrease) in accrued liabilities 888 1,451 17,391 21,019
Increase/(decrease) in compensated absences 2,174 8,506 - 18,083
Increase/(decrease) in claims payable - - - (242,378)
Net cash provided by (used in) operating activities 111,204$ (64,849)$ 100,435$ 391,029$
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2020
City of Gilroy
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These funds account for assets held by the City on behalf of other organizations.
Payroll Withholdings - This fund is used to establish the liabilities for payroll withholdings and their subsequent payment to
outside agencies.
Museum Trust -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.
Senior Advisory Board - This fund is used to account for revenues that come from fund raising and donations. The funds are used
to buy equipment for the Senior Center.
Employee Wellness - This fund is used to account for the employee organization designed to provide recreational and educational
programs to foster the City employees’ mental and physical health.
Barney J. Garcia EMS Training - This fund is used to account for a donation from the family of Barney J. Garcia. The family has
restricted the use of donations and interest earnings to the purchase of Fire EMS training equipment only.
Highway 152 Series 2002 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the
Highway 152 Series 2002 improvements.
Highway 152 Series 2006 - This fund is used to account for special assessments collected and pay the bonded indebtedness for the
Highway 152 Series 2006 improvements.
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.
Henry Miller - This fund is used to account for a donation from Henry Miller. The annual interest earned on the original donation
of $15,000 is the amount donated to the poor of Gilroy each Christmas season.
Deposit Revolving - This fund is used to account for miscellaneous deposits, revolving deposits from developers and refundable
deposits received in advance for rental of City facilities.
Gilroy Junior Golf - This fund is used to account for entry fees received from participants in junior golf tournaments and is used to
pay associated costs such as trophies, supplies and officials.
Softball Advisory Board - This fund is used to pay for program expense such as trophies, T-shirts, supplies, umpires, scorekeepers
and donations to other recreation programs.
AGENCY FUNDS
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Gilroy Softball Senior
Henry Deposit Junior Advisory Advisory
Miller Revolving Golf Board Board
Assets:
Cash and investments 17,238$ 3,528,963$ 3,867$ 3,167$ 8,345$
Cash and investments with fiscal agent - - - - -
Accounts receivable - 6,751 - - -
Due from County - - - - -
Total Assets 17,238$ 3,535,714$ 3,867$ 3,167$ 8,345$
Liabilities:
Accounts payable -$ 472,499$ -$ -$ -$
Due to bondholders - - - - -
Unearned revenue - 197,173 - - -
Deposits payable 17,238 2,866,042 3,867 3,167 8,345
Total Liabilities 17,238$ 3,535,714$ 3,867$ 3,167$ 8,345$
(Continued)
City of Gilroy
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2020
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Employee Barney J Garcia Highway 152 Highway 152
Wellness EMS Training Series 2002 Series 2006
Assets:
Cash and investments 4,154$ 2,390$ -$ -$
Cash and investments with fiscal agent - - - -
Accounts receivable - - - -
Due from County - - 544 709
Total Assets 4,154$ 2,390$ 544$ 709$
Liabilities:
Accounts payable -$ -$ -$ -$
Due to bondholders - - 544 709
Unearned revenue - - - -
Deposits payable 4,154 2,390 - -
Total Liabilities 4,154$ 2,390$ 544$ 709$
(Continued)
City of Gilroy
Combining Statement of Fiduciary Assets and Liabilities (Continued)
Agency Funds
June 30, 2020
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Highway 152 Payroll Museum
Series 2018 Withholdings Trust Total
Assets:
Cash and investments 791,205$ 15,000$ 44,632$ 4,418,961$
Cash and investments with fiscal agent 291,501 - - 291,501
Accounts receivable - 9 - 6,760
Due from County - - - 1,253
Total Assets 1,082,706$ 15,009$ 44,632$ 4,718,475$
Liabilities:
Accounts payable -$ -$ -$ 472,499$
Due to bondholders 1,082,706 - - 1,083,959
Unearned revenue - - - 197,173
Deposits payable - 15,009 44,632 2,964,844
Total Liabilities 1,082,706$ 15,009$ 44,632$ 4,718,475$
(Concluded)
City of Gilroy
Combining Statement of Fiduciary Assets and Liabilities (Continued)
Agency Funds
June 30, 2020
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Balance Balance
July 01, 2019 Additions Deletions June 30, 2020
HENRY MILLER
Assets:
Cash and investments 17,308$ 343$ (413)$ 17,238$
Total Assets 17,308$ 343$ (413)$ 17,238$
Liabilities:
Deposits payable 17,308$ 343$ (413)$ 17,238$
Total Liabilities 17,308$ 343$ (413)$ 17,238$
DEPOSIT REVOLVING
Assets:
Cash and investments 3,440,462$ 4,027,711$ (3,939,210)$ 3,528,963$
Accounts receivable 7,027 25,374 (25,650) 6,751
Total Assets 3,447,489$ 4,053,085$ (3,964,860)$ 3,535,714$
Liabilities:
Accounts payable 89,958$ 1,647,307$ (1,264,766)$ 472,499$
Unearned revenue 54,089 - 143,084 197,173
Deposits payable 3,303,442 2,405,778 (2,843,178) 2,866,042
Total Liabilities 3,447,489$ 4,053,085$ (3,964,860)$ 3,535,714$
GILROY JUNIOR GOLF
Assets:
Cash and investments 3,791$ 76$ -$ 3,867$
Total Assets 3,791$ 76$ -$ 3,867$
Liabilities:
Deposits payable 3,791$ 76$ -$ 3,867$
Total Liabilities 3,791$ 76$ -$ 3,867$
(Continued)
City of Gilroy
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2020
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Balance Balance
July 01, 2019 Additions Deletions June 30, 2020
SOFTBALL ADVISORY BOARD
Assets:
Cash and investments 3,105$ 62$ -$ 3,167$
Total Assets 3,105$ 62$ -$ 3,167$
Liabilities:
Deposits payable 3,105$ 62$ -$ 3,167$
Total Liabilities 3,105$ 62$ -$ 3,167$
SENIOR ADVISORY BOARD
Assets:
Cash and investments 8,535$ 832$ (1,022)$ 8,345$
Total Assets 8,535$ 832$ (1,022)$ 8,345$
Liabilities:
Accounts payable 18$ -$ (18)$ -$
Deposits payable 8,517 832 (1,004) 8,345
Total Liabilities 8,535$ 832$ (1,022)$ 8,345$
EMPLOYEE WELLNESS
Assets:
Cash and investments 1,742$ 5,953$ (3,541)$ 4,154$
Total Assets 1,742$ 5,953$ (3,541)$ 4,154$
Liabilities:
Accounts payable 20$ -$ (20)$ -$
Deposits payable 1,722 5,953 (3,521) 4,154
Total Liabilities 1,742$ 5,953$ (3,541)$ 4,154$
BARNEY J. GARCIA EMS TRAINING
Assets:
Cash and investments 2,343$ 47$ -$ 2,390$
Total Assets 2,343$ 47$ -$ 2,390$
Liabilities:
Deposits payable 2,343$ 47$ -$ 2,390$
Total Liabilities 2,343$ 47$ -$ 2,390$
(Continued)
City of Gilroy
Combining Statement of Changes in Fiduciary Assets and Liabilities (Continued)
Agency Funds
For the Year Ended June 30, 2020
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Balance Balance
July 01, 2019 Additions Deletions June 30, 2020
HIGHWAY 152 SERIES 2002
Assets:
Due from County 237$ 544$ (237)$ 544$
Total Assets 237$ 544$ (237)$ 544$
Liabilities:
Due to bondholders 237$ 544$ (237)$ 544$
Total Liabilities 237$ 544$ (237)$ 544$
HIGHWAY 152 SERIES 2006
Assets:
Cash and investments 1,008$ -$ (1,008)$ -$
Due from County 308 401 - 709
Total Assets 1,316$ 401$ (1,008)$ 709$
Liabilities:
Due to bondholders 1,316$ 401$ (1,008)$ 709$
Total Liabilities 1,316$ 401$ (1,008)$ 709$
HIGHWAY 152 SERIES 2018
Assets:
Cash and investments 743,211$ 910,696$ (862,702)$ 791,205$
Cash and investments with fiscal agent 295,479 3,805 (7,783) 291,501
Total Assets 1,038,690$ 914,501$ (870,485)$ 1,082,706$
Liabilities:
Due to bondholders 1,038,690$ 914,501$ (870,485)$ 1,082,706$
Total Liabilities 1,038,690$ 914,501$ (870,485)$ 1,082,706$
PAYROLL WITHHOLDINGS
Assets:
Cash and investments 2,816$ 19,223,699$ (19,211,515)$ 15,000$
Accounts receivable - 9 - 9
Total Assets 2,816$ 19,223,708$ (19,211,515)$ 15,009$
Liabilities:
Deposits payable 2,816$ 19,223,708$ (19,211,515)$ 15,009$
Total Liabilities 2,816$ 19,223,708$ (19,211,515)$ 15,009$
(Continued)
For the Year Ended June 30, 2020
Agency Funds
City of Gilroy
Combining Statement of Changes in Fiduciary Assets and Liabilities (Continued)
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Balance Balance
July 01, 2019 Additions Deletions June 30, 2020
MUSEUM TRUST
Assets:
Cash and investments 43,754$ 2,182$ (1,304)$ 44,632$
Total Assets 43,754$ 2,182$ (1,304)$ 44,632$
Liabilities:
Deposits payable 43,754$ 2,182$ (1,304)$ 44,632$
Total Liabilities 43,754$ 2,182$ (1,304)$ 44,632$
TOTAL ALL AGENCY FUNDS
Assets:
Cash and investments 4,268,075$ 24,171,601$ (24,020,715)$ 4,418,961$
Cash and investments with fiscal agent 295,479 3,805 (7,783) 291,501
Accounts receivable 7,027 25,383 (25,650) 6,760
Due from County 545 945 (237) 1,253
Total Assets 4,571,126$ 24,201,734$ (24,054,385)$ 4,718,475$
Liabilities:
Accounts payable 89,996$ 1,647,307$ (1,264,804)$ 472,499$
Due to bondholders 1,040,243 915,446 (871,730) 1,083,959
Unearned revenue 54,089 - 143,084 197,173
Deposits payable 3,386,798 21,638,981 (22,060,935) 2,964,844
Total Liabilities 4,571,126$ 24,201,734$ (24,054,385)$ 4,718,475$
(Concluded)
City of Gilroy
Combining Statement of Changes in Fiduciary Assets and Liabilities (Continued)
Agency Funds
For the Year Ended June 30, 2020
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ADDITIONAL SCHEDULES
165
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Fleet Equipment Workers'
Sewer Water Services Outlay Compensation
BEGINNING RESOURCES AVAILABLE:
Depreciation reserve 9,274,721$ 16,133,247$ 9,046,441$ 3,545,699$ -$
Operating reserve 13,104,754 4,896,964 (2,769,971) 251,384 3,442,704
Total beginning resources 22,379,475$ 21,030,211$ 6,276,470$ 3,797,083$ 3,442,704$
Source of Funds:
Revenues 12,872,189$ 14,572,310$ 1,626,839$ 125,923$ 1,294,102$
Investment income 561,664 607,469 104,548 67,331 66,267
Miscellaneous revenue - 18,663 - - -
Capital contributions 1,655,291 783,826 - - -
Interfund transfers in 693,577 - 365,000 - -
Total sources 15,782,721 15,982,268 2,096,387 193,254 1,360,369
Use of Funds:
Expenditures (excluding depreciation) 10,860,780 11,278,642 1,610,201 326,580 837,895
Interest paid 192,327 - - - -
Principal paid 2,150,000 - - - -
Capital assets constructed/acquired (1,146,655) 1,807,812 394,674 206,870 -
Interfund transfers out 100,000 145,730 - - -
Total uses 12,156,452 13,232,184 2,004,875 533,450 837,895
Adjustments:
Adjustments for other assets and liabilities (3,268,852) 554,425 15,985 24,608 (322,324)
Total adjustments (3,268,852) 554,425 15,985 24,608 (322,324)
Total changes in resources 357,417 3,304,509 107,497 (315,588) 200,150
Ending resources available 22,736,892$ 24,334,720$ 6,383,967$ 3,481,495$ 3,642,854$
RECAP RESOURCES AVAILABLE:
Depreciation reserve 10,777,708$ 17,458,385$ 9,543,692$ 3,643,978$ -$
Operating reserve 11,959,184 6,876,335 (3,159,725) (162,483) 3,642,854
Total ending resources 22,736,892$ 24,334,720$ 6,383,967$ 3,481,495$ 3,642,854$
ANALYSIS OF DEPRECIATION RESERVE:
Beginning Balance 9,274,721$ 16,133,247$ 9,046,441$ 3,545,699$ -$
2019-20 depreciation 1,502,987 1,325,138 497,251 98,279 -
Total depreciation reserve 10,777,708$ 17,458,385$ 9,543,692$ 3,643,978$ -$
(Continued)
City of Gilroy
Analysis of Available Resources - Selected Funds
For the Year Ended June 30, 2020
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General Facility Information Fringe
Liability Services Technologies Benefits Total
BEGINNING RESOURCES AVAILABLE:
Depreciation reserve -$ 4,057$ 6,822,333$ -$ 44,826,498$
Operating reserve 2,001,688 1,542,757 (1,942,221) (5,907) 20,522,152
Total beginning resources 2,001,688$ 1,546,814$ 4,880,112$ (5,907)$ 65,348,650$
Source of Funds:
Revenues 1,317,106$ 2,513,352$ 2,482,746$ 16,514,651$ 53,319,218$
Investment income 29,623 31,440 104,329 - 1,572,671
Miscellaneous revenue 410,494 188,006 3,600 - 620,763
Capital contributions - - - - 2,439,117
Interfund transfers in - - 1,155,166 2,000,000 4,213,743
Total sources 1,757,223 2,732,798 3,745,841 18,514,651 62,165,512
Use of Funds:
Expenditures (excluding depreciation) 1,697,223 2,732,798 2,622,381 16,508,534 48,475,034
Interest paid - - - - 192,327
Principal paid - - - - 2,150,000
Capital assets constructed/acquired - - 964,815 - 2,227,516
Interfund transfers out - - - - 245,730
Total uses 1,697,223 2,732,798 3,587,196 16,508,534 53,290,607
Adjustments:
Adjustments for other assets and liabilities 80,096 2,418 (83,738) - (2,997,382)
Total adjustments 80,096 2,418 (83,738) - (2,997,382)
Total changes in resources 140,096 2,418 74,907 2,006,117 5,877,523
Ending resources available 2,141,784$ 1,549,232$ 4,955,019$ 2,000,210$ 71,226,173$
RECAP RESOURCES AVAILABLE:
Depreciation reserve -$ 4,057$ 6,943,154$ -$ 48,370,974$
Operating reserve 2,141,784 1,545,175 (1,988,135) 2,000,210 22,855,199
Total ending resources 2,141,784$ 1,549,232$ 4,955,019$ 2,000,210$ 71,226,173$
ANALYSIS OF DEPRECIATION RESERVE:
Beginning Balance -$ 4,057$ 6,822,333$ -$ 44,826,498$
2019-20 depreciation - - 120,821 - 3,544,476
Total depreciation reserve -$ 4,057$ 6,943,154$ -$ 48,370,974$
(Concluded)
City of Gilroy
Analysis of Available Resources - Selected Funds (Continued)
For the Year Ended June 30, 2020
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Fleet Equipment Workers'
Sewer Water Services Outlay Compensation
BEGINNING RESOURCES AVAILABLE:
Cash 20,308,838$ 21,271,226$ 2,891,095$ 2,727,132$ 3,442,704$
Receivables 2,261,086 1,293,034 3,441,694 1,129,362 -
Payables (190,449) (1,534,049) (56,319) (59,411) -
Total beginning working capital 22,379,475$ 21,030,211$ 6,276,470$ 3,797,083$ 3,442,704$
ENDING RESOURCES AVAILABLE:
Cash 21,275,726$ 23,247,633$ 3,358,394$ 2,502,891$ 3,643,623$
Receivables 1,685,038 1,954,597 3,220,764 1,017,767 -
Payables (223,872) (867,510) (195,191) (39,163) (769)
Total ending working capital 22,736,892$ 24,334,720$ 6,383,967$ 3,481,495$ 3,642,854$
(Continued)
City of Gilroy
Composition of Available Resources - Selected Funds
June 30, 2020
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General Facility Information Fringe
Liability Services Technologies Benefits Total
BEGINNING RESOURCES AVAILABLE:
Cash 2,022,195$ 1,654,442$ 5,027,374$ 434,622$ 59,779,628$
Receivables - 23,890 7,200 - 8,156,266
Payables (20,507) (131,518) (154,462) (440,529) (2,587,244)
Total beginning working capital 2,001,688$ 1,546,814$ 4,880,112$ (5,907)$ 65,348,650$
ENDING RESOURCES AVAILABLE:
Cash 2,186,207$ 1,797,086$ 5,257,205$ 2,535,057$ 65,803,822$
Receivables - 33,200 - - 7,911,366
Payables (44,423) (281,054) (302,186) (534,847) (2,489,015)
Total ending working capital 2,141,784$ 1,549,232$ 4,955,019$ 2,000,210$ 71,226,173$
(Concluded)
City of Gilroy
Composition of Available Resources - Selected Funds (Continued)
June 30, 2020
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City of Gilroy
Annual Report Filings
For Fiscal Year 2019-20
171
(1) Gilroy Community Library Project:
$8,633,538
CITY OF GILROY
2019 General Obligation Refunding Bonds Series A
(Gilroy Community Library Project)
$19,087,551
CITY OF GILROY
2019 General Obligation Bonds Series B
(Gilroy Community Library Project)
(a) Audited financial statements for the City for Fiscal Year 2019-2020.
This exhibit is attached to the City’s audited financial statements.
(b) Financial information and operating data.
(i) Assessed value of taxable property within the jurisdiction of the City.
CITY OF GILROY
Assessed Valuations of All Taxable Property
Fiscal Years 2015-16 to 2020-21
Fiscal Year
Gross Local
Secured(1)
Net Local
Secured(2) Net Utility(3) Net Unsecured(4) Total(2)
2015-16 $ 6,798,621,370 $ 6,752,750,370 $ 47,030,836 $ 268,445,327 $ 7,068,226,533
2016-17 7,385,130,561 7,338,552,561 42,130,836 273,713,487 7,654,396,884
2017-18 7,872,947,886 7,825,703,486 39,330,836 263,667,226 8,128,701,548
2018-19 8,445,397,378 8,397,307,378 38,939,704 256,724,279 8,692,971,361
2019-20 9,001,686,593 8,953,812,193 32,539,704 257,410,089 9,243,761,986
2020-21 9,557,360,668 9,510,019,668 29,739,704 267,854,749 9,807,614,121
________________
(1) Before deduction of homeowner’s exemptions.
(2) Net of homeowner’s exemptions.
(3) Beginning in Fiscal Year 1988-89, Chapter 921 of the Statutes of 1987 requires the establishment of a single Countywide tax area
for the assignment of the assessed value of certain types of State-assessed utility property and sets forth formulas for the
determination of Countywide tax rates for this particular type of property. This statute also spells out how to distribute the taxes
which have been collected from the bills derived from this value and specified tax rate.
(4) Does not include aircraft.
Source: Santa Clara County Auditor-Controller’s Office
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Annual Report Filings (Continued)
For Fiscal Year 2019-20
172
(1) Gilroy Community Library Project: (Continued)
(iii) If and to the extent such information is available from the County, property tax collection delinquencies
for the City if the City is no longer a participant in Santa Clara County’s Teeter Plan.
The County is not able to provide tax levy and delinquency information to the City because the County
has adopted the Teeter Plan, which means it pays to the City the amount of taxes levied rather than the
amount collected. The City will make this information available if and when it becomes available from
the County.
(iv) Amount of all general obligation debt of the City outstanding, and total scheduled debt service on such
general obligation debt.
Please see information in the audited financial statements.
(v) Any changes in the operation of Santa Clara County’s Teeter Plan since the previous Annual Report
affecting the City’s receipt of property tax revenues used to pay debt service on the Bonds.
The City is not aware of any changes in the operation of Santa Clara County’s Teeter Plan since the
previous Annual Report affecting the City’s receipt of property tax revenues used to pay debt service.
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Annual Report Filings (Continued)
For Fiscal Year 2019-20
173
(2) Gilroy Public Facilities Financing Authority:
$24,475,000
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
Refunding Lease Revenue Bonds, Series 2010
$23,120,000
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
Refunding Lease Revenue Bonds, Series 2013
(a) Audited financial statements for the City for Fiscal Year 2019-2020.
This exhibit is attached to the City’s audited financial statements.
(b) Financial information and operating data.
(i) Principal amount of Notes/Bonds outstanding.
Please see information in the audited financial statements.
(ii) Balance in each fund under the Trust Agreement as of June 30, preceding the filing of the Annual
Report.
CITY OF GILROY
Balance under the Trust Agreement as of June 30, 2020
Financing Authority
Type
Year
Account
Name
Shares/Units
Cost Basis
Market Value
Gilroy Public Facilities
Financing Authority
Lease Revenue
Bonds
Series
2010
Reserve
$1,744,606
$1,744,606
$1,744,606
Gilroy Public Facilities
Financing Authority
Lease Revenue
Bonds
Series
2013
Reserve
922,096
922,096
922,096
(iii) General fund summary of revenues and expenditures.
Please see information in the audited financial statements.
(iv) General fund balance sheet.
Please see information in the audited financial statements.
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City of Gilroy
Annual Report Filings (Continued)
For Fiscal Year 2019-20
174
(2) Gilroy Public Facilities Financing Authority: (Continued)
(v) General fund budget for the then-current fiscal year.
REVENUES
Taxes 45,168,333$
Licenses & Permits 3,662,546
Intergovernmental 142,000
Charges for Services 5,628,041
Fines 262,730
Investment Income 475,334
Miscellaneous 1,659,975
Total Revenues 56,998,959$
EXPENDITURES
Personnel Expense 39,166,463$
Maintenance and Services 5,211,904
Interfund, charges, allocations & other 7,982,305
Total Expenditures 52,360,672$
Budget 2020 - 21
Also, please see information in the audited financial statements.
(vi) General fund tax revenues by source.
Source Audited Audited Audited Audited Audited
Revenues 2015 - 16 2016 - 17 2017 - 18 2018 - 19 2019 - 20
Sales Tax 17,884,735$ 18,827,189$ 20,186,105$ 20,186,105$ 17,233,882$
Property Taxes (1) 11,468,510 12,278,552 18,827,189 14,476,481 15,595,639
Utility Users Tax 4,610,631 4,748,382 4,666,131 4,721,529 5,177,426
Motor Vehicle in lieu of Taxes 21,385 24,715 29,444 26,695 44,265
Franchise Taxes 1,569,059 1,623,952 1,713,690 1,669,817 1,855,622
Transient Occupancy Taxes 1,676,691 1,709,332 1,722,355 1,771,882 1,237,812
Document Transfer Taxes 505,957 516,105 526,583 372,284 489,775
Total 37,736,968$ 39,728,227$ 47,671,497$ 43,224,793$ 41,634,421$
(1) Property tax revenue includes secured, unsecured and supplemental property tax revenue along with penalties and interest.
Source: City of Gilroy Finance Department
City of Gilroy
General Fund Tax Revenues by Source
For Fiscal Years 2015 - 16 through 2019 - 20
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Annual Report Filings (Continued)
For Fiscal Year 2019-20
175
(2) Gilroy Public Facilities Financing Authority: (Continued)
(vii) Sales tax rates.
CITY OF GILROY
Sales Tax Rates
Effective January 1, 2020
State 6.0%
Santa Clara County Transportation Funds 0.25
City 1.00
Santa Clara County Transit District 0.50
Santa Clara County Valley Transportation Authority (VTA) 0.50
Santa Clara County Retail Transactions and Use Tax 0.125
Santa Clara VTA Bay Area Rapid Transit (BART) 0.125
Silicon Valley Transportation Solutions Tax 0.50_
Total 9.00%
Source: California State Board of Equalization.
(viii) Assessed valuation of property in the City.
Please see (1)(b)(i) above.
(ix) Updated descriptions of outstanding general fund debt and lease obligations.
Please see information in the audited financial statements.
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City of Gilroy
Annual Report Filings (Continued)
For Fiscal Year 2019-20
176
(3) Wastewater Revenue Refunding Bonds:
$23,375,000
CITY OF GILROY
2010 Wastewater Revenue Refunding Bonds
(a) Audited financial statements for the City for Fiscal Year 2019-20.
This exhibit is attached to the City’s audited financial statements.
(b) Financial information and operating data.
(i) Principal amount of Bonds outstanding.
$7,080,000
(ii) Balance in the Reserve Fund and a statement of the Reserve Requirement.
Reserve Fund Balance as of June 30, 2020: $2,621,011.
Reserve Requirement: $2,621,000. Reserve Requirement is defined in the Indenture to mean an
amount equal to the maximum amount of principal of and interest on the Bonds coming due and
payable in the current or any future Bond Year including the principal of any Term Bonds required to
be redeemed in such Bond Year under the Indenture.
(iii) Updated wastewater system information:
CITY OF GILROY WASTEWATER SYSTEM
Wastewater Flow
Fiscal Years 2014-15 through 2019-20
Fiscal Year
SCRWA
Treatment Facility
Total Flow
(MG/Year)
SCRWA
Treatment Facility
Million Gallons
per Day (MGD)
City of Gilroy
Flow (MG/Year)
City % Share of
SCRWA
Treatment Facility
Flow
2014 - 15 2,186.40 5.99 1,278.96 58
2015 - 16 2,185.58 5.97 1,311.35 60
2016 - 17 2,763.99 7.60 1,761.18 63
2017 - 18 2,250.28 6.16 1,413.14 61
2018 - 19 2,427.24 6.66 1,539.50 63
2019 - 20 2,255.70 6.18 1,398.54 62
Source: City of Gilroy
Historical Revenues and Expenses: Please see information in the audited financial statements.
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City of Gilroy
Annual Report Filings (Continued)
For Fiscal Year 2019-20
177
(3) Wastewater Revenue Refunding Bonds (Continued)
CITY OF GILROY WASTEWATER SYSTEM
Historical Debt Service Coverage
2015 - 16 2016 - 17 2017 - 18 2018 - 19 2019 - 20
Gross Revenue
Charges for services 11,773,938$ 18,827,189$ 20,186,105$ 20,186,105$ 17,233,882$
Investment income 210,826 12,278,552 18,827,189 14,476,481 15,595,639
Available rate stabilization fund balance - 4,748,382 4,666,131 4,721,529 5,177,426
Transfers from sewer impact fund 700,111 24,715 29,444 26,695 44,265
Total Gross Revenue 12,684,875 13,529,576 13,658,483 14,192,732 14,127,430
Operating Expenses:
Operations (7,296,107) (7,454,895) (746,650) (8,339,489) (9,462,155)
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 (8,409,056) (8,522,014) (1,923,896) (9,714,572) (10,860,780)
Net Wastewater System Revenues 4,275,819 5,007,562 5,014,587 4,478,160 3,266,650
Series 1999 Installment Payments 2,566,550 2,558,687 2,562,738 2,557,625 2,557,750
Refunding Series 2010 Payments
Gross Revenue Debt Service Coverage 494.24% 528.77% 532.96% 554.92% 552.34%
Net Revenue Debt Service Coverage 166.60% 195.71% 195.67% 175.09% 127.72%
Funds Available
Sewer Development Capital Project Fund 11,481,078 12,964,741 14,534,002 15,040,842 13,376,865
Sewer Fund Cash and Cash Equivalent 18,537,029 16,777,330 17,391,216 17,687,792 18,610,720
Rate Stabilization Fund 750,000 750,000 750,000 750,000 750,000
Total Funds Available 30,768,107$ 30,492,071$ 32,675,218$ 33,478,634$ 32,737,585$
Days Cash on Hand (Sewer Fund
Cash/Cash Equivalent) 805 719 734 665 625
Source: City of Gilroy
(iv) A summary of any changes in the City’s wastewater service charges since the date of the previous
Annual Report.
Effective July 1, 2019, the City of Gilroy implemented a wastewater rate increase in accordance with the rate analysis
study approved in August 2015. This represents a 3% increase in the fixed monthly charge for non-residential
wastewater rates.
The increases noted in the rate structure will help to ensure that sufficient funding is collected to operate and maintain
the capital infrastructure of the wastewater system.
(v) A description of any Parity Debt issued during the most recently completed fiscal year.
None
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STATISTICAL SECTION
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Contents Page
Financial Trends 182-191
Revenue Capacity 192-199
Debt Capacity 200-207
Demographic and Economic Information 209-210
Operating Information 211-215
STATISTICAL SECTION
(Unaudited)
This part of the City of Gilroy's comprehensive annual 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 comprehensive
annual 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.
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2011 2012 2013 2014 2015
Governmental Activities:
Net investment in capital assets 186,497,667$ 180,031,582$ 170,944,637$ 162,950,296$ 167,625,947$
Restricted 16,148,971 19,257,961 19,616,322 24,277,233 22,320,085
Unrestricted 21,373,299 25,031,844 26,414,676 28,892,199 (26,524,001)
Total governmental activities net position 224,019,937 156-161224,321,387 216,975,635 216,119,728 163,422,031
Business-type Activities:
Invested in Capital Assets, net of related debtNet investment in capital assets 96,128,432 93,390,622 91,165,074 88,728,174 90,335,349
Restricted - - - - -
UnrestrictedUnrestricted 75,964,187 79,652,868 82,012,944 85,736,094 84,832,390
Total business-type activities net position 172,092,619 173,043,490 173,178,018 174,464,268 175,167,739
Primary Government:
Invested in Capital Assets, net of related debtNet investment in capital assets 282,626,099 273,422,204 262,109,711 251,678,470 257,961,296
Restricted 16,148,971 19,257,961 19,616,322 24,277,233 22,320,085
UnrestrictedUnrestricted 97,337,486 104,684,712 108,427,620 114,628,293 58,308,389
Total primary government net position 396,112,556$ 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$
Fiscal Year
City of Gilroy
Net Position By Component
Last Ten Fiscal Years
(accrual basis of accounting)
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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 (25,032,197) (25,229,815) (36,193,491) (37,759,850) (42,674,183)
Total governmental activities net position 170,216,922 171,269,510 171,607,676 168,679,327 166,368,370
Business-type Activities:
Invested in Capital Assets, net of related debtNet investment in capital assets 90,917,108 88,183,287 87,336,604 91,134,932 86,503,324
Restricted - - - - -
UnrestrictedUnrestricted 88,668,400 93,612,020 98,375,675 100,053,259 100,496,635
Total business-type activities net position 179,585,508 181,795,307 185,712,279 191,188,191 186,999,959
Primary Government:
Invested in Capital Assets, net of related debtNet investment in capital assets 250,601,236 243,046,572 246,406,490 247,885,305 238,408,116
Special revenue 35,564,991 41,636,040 48,731,281 49,688,804 57,137,761
UnrestrictedUnrestricted 63,636,203 68,382,205 62,182,184 62,293,409 57,822,452
Total primary government net position 349,802,430$ 353,064,817$ 357,319,955$ 359,867,518$ 353,368,329$
Fiscal Year
City of Gilroy
Net Position By Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
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2011 2012 2013 2014 2015
Expenses:
Governmental activities:
General government 3,385,407$ 11,895,682$ 3,732,098$ 3,795,033$ 3,619,582$
Public safety 24,069,357 5,995,050 28,747,964 29,696,344 30,273,444
Community development 14,423,744 14,271,031 15,485,705 14,824,460 15,901,215
Community services 6,355,948 180,845 7,686,862 7,726,938 7,807,765
Interest and other charges 3,666,139 16,654,681 3,226,789 3,744,396 3,406,855
Total governmental activities expenses 51,900,595 48,997,289 58,879,418 59,787,171 61,008,861
Business-type activities
Sewer 9,599,950 11,575,152 10,206,770 9,929,622 9,806,990
Water 6,508,446 11,428,662 8,081,041 8,642,660 8,329,710
Total business-type activities expenses 16,108,396 23,003,814 18,287,811 18,572,282 18,136,700
Total primary government expenses 68,008,991$ 72,001,103$ 77,167,229$ 78,359,453$ 79,145,561$
Program revenues:
Governmental activities:
Charges for services:
General government 1,008,468$ 7,623$ 1,119,217$ 1,415,106$ 2,096,137$
Public safety 926,399 1,055,373 1,004,530 897,059 1,030,410
Community development 2,959,139 767,444 3,866,305 5,434,764 7,385,391
Community services 603,419 66,788 757,445 810,503 886,988
Operating grants and contributions 4,633,908 8,711,464 14,091,083 15,057,119 13,109,933
Capital grants and contributions 7,083,530 - 3,207,487 3,157,642 8,999,636
Total governmental activities program revenues 17,214,863 10,608,692 24,046,067 26,772,193 33,508,495
Business-type activities:
Charges for services:
Sewer 8,012,406 7,828,759 8,441,024 10,359,334 -
Water 7,219,424 4,556,861 8,179,888 8,640,784 -
Capital grants and contributions - 95,360 1,410,773 179,707 -
Total business-type activities program revenues 15,231,830 12,480,980 18,031,685 19,179,825 -
Total primary government program revenues 32,446,693$ 23,089,672$ 42,077,752$ 45,952,018$ 33,508,495$
Net revenue (expense):
Governmental activities (34,685,732)$ (38,388,597)$ (34,833,351)$ (33,014,978)$ (27,500,366)$
Business-type activities (876,566) (10,522,834) (256,126) 607,543 (18,136,700)
Total primary government net expense (35,562,298)$ (48,911,431)$ (35,089,477)$ (32,407,435)$ (45,637,066)$
City of Gilroy
Fiscal Year
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
184
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2016 2017 2018 2019 2020
Expenses:
Governmental activities:
General government 3,900,226$ 6,437,408$ 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
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 12,298,662 12,060,236 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 1,651,713$ 3,087,335$ 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
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 11,984,798 12,833,030 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
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
Changes in Net Position (Continued)
Last Ten Fiscal Years
Fiscal Year
(accrual basis of accounting)
185
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2011 2012 2013 2014 2015
General revenues and other changes in net position:
Governmental Activities:
Taxes:
Property taxes 8,861,163$ 8,907,492$ 9,462,337$ 9,728,458$ 10,862,568$
Sales tax 12,820,172 13,833,561 14,114,277 14,423,130 15,858,910
Transient occupancy taxes 889,124 998,743 1,092,486 1,234,798 1,501,837
Franchise tax 1,293,850 1,355,340 1,326,364 1,408,045 1,463,770
Other taxes 5,048,813 4,781,148 4,694,440 4,759,067 4,905,868
Investment income 1,060,450 922,309 350,105 630,095 619,139
State motor vehicle in lieu 236,142 25,739 26,670 22,072 21,479
Other - 109,798 390,812 632,113 164,321
Transfers (307,165) (647,847) (669,940) (678,707) (689,011)
Total governmental activities 29,902,549 30,286,283 30,787,551 32,159,071 34,708,881
Business-type activities:
Investment and rental income 1,013,724 777,528 - - -
Other 350 600 - - -
Share of joint revenue net income (loss)3,372,137 (1,059,357) - - -
Transfers 307,165 647,847 669,940 678,707 689,011
Total business-type activities 4,693,376 366,618 669,940 678,707 689,011
Total primary government 34,595,925$ 30,652,901$ 31,457,491$ 32,837,778$ 35,397,892$
Changes in net position:
Governmental activities (4,783,183)$ 301,450$ (4,045,800)$ (855,907)$ 7,208,515$
Business-type activities 3,816,810 950,871 413,814 1,286,250 3,800,429
Total primary government (966,373)$ 1,252,321$ (3,631,986)$ 430,343$ 11,008,944$
Net Position (Net Assets), Beginning 397,078,929$ 396,112,556$ 397,364,877$ 390,153,653$ 390,583,996$
Beginning Fund Balance Restatement (1)- - (3,579,238) - (63,003,170)
Changes in Net Position (Net Assets)(966,373) 1,252,321 (3,631,986) 430,343 11,008,944
Net Position (Net Assets), Ending 396,112,556$ 397,364,877$ 390,153,653$ 390,583,996$ 338,589,770$
(1)Net Position (Net Assets) of the governmental and business type activities were restated based on an infrastructure study performed by an independent consulting
firm. The study was conducted to obtain the values necessary for the City to implement GASB Statement No. 34. Additional restatement of net position (FY15) to
record pension liability necessary for the implementation of GASB No. 68 and No. 71.
Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
186
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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 - - - - -
Share of joint revenue net income (loss)- - - - -
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$ (2,928,349)$ (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$ 2,547,563$ (7,634,861)$
Net Position (Net Assets), Beginning 338,589,770$ 348,802,430$ 352,078,513$ -$ -$
Beginning Fund Balance Restatement (1)- - (8,762,454) - 182,752,914
Changes in Net Position (Net Assets)11,212,660 2,276,083 14,003,896 - 4,247,045
Net Position (Net Assets), Ending 349,802,430$ 351,078,513$ 357,319,955$ -$ 186,999,959$
(1)Net Position (Net Assets) of the governmental and business type activities were restated based on an infrastructure study performed by an independent consulting
firm. The study was conducted to obtain the values necessary for the City to implement GASB Statement No. 34. Additional restatement of net position (FY15) to
record pension liability necessary for the implementation of GASB No. 68 and No. 71.
Fiscal Year
City of Gilroy
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
187
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2011 2012 2013 2014 2015
General fund:
Nonspendable 54,011$ 59,670$ 45,003$ 52,592$ 74,622$
Restricted - - - - -
Assigned - - - - -
Unassigned 25,166,657 25,423,199 23,038,183 22,291,553 21,316,940
Total general fund 25,220,668$ 25,482,869$ 23,083,186$ 22,344,145$ 21,391,562$
All other governmental funds:
Nonspendable 10,848$ 9,766$ 5,454,973$ 9,265$ 9,265$
Restricted 50,980,559 37,880,519 31,995,403 41,474,238 40,117,010
Assigned 743,166 525,601 226,654 576,889 544,284
Unassigned (14,551,024) (12,379,723) (12,423,935) (11,866,882) (12,884,818)
Total all other governmental funds 37,183,549$ 26,036,163$ 25,253,095$ 30,193,510$ 27,785,741$
(a)(b)
(a) Fiscal year 2010 included the Sewer Fund as part of the Nonmajor Governmental Funds. Beginning with 2010-2011, it was reclassified
as an Enterprise Fund.
(b) The City implemented GASB Statement 54 in Fiscal Year 2010-2011 which changed the Fund Balance categories to Restricted,
Committed, Assigned or Unassigned.
Fiscal Year
City of Gilroy
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
188
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2016 2017 2018 2019 2020
General fund:
Nonspendable 84,923$ 74,217$ 126,965$ 76,000$ 126,915$
Restricted - - - - -
Assigned - - - - -
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 (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 (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
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2011 2012 2013 2014 2015
Revenues:
Taxes 28,913,122$ 30,122,948$ 33,041,266$ 33,902,225$ 37,190,336$
Licenses and permits 1,552,585 2,000,283 2,071,569 2,088,024 2,847,912
Intergovernmental 5,669,019 6,413,621 5,258,266 5,235,608 3,260,688
Charges for services 8,225,000 14,688,796 13,944,828 17,081,714 17,396,590
Fines 339,063 425,265 251,313 226,220 281,580
Special assessments 2,359,399 2,133,413 - - -
Investment income (loss)1,034,140 898,495 385,744 697,612 600,960
Contribution from property owners - - - - -
Miscellaneous 728,057 826,591 1,035,480 1,464,470 2,128,737
Total revenues 48,820,385 148-15457,509,412 55,988,466 60,695,873 63,706,803
Expenditures:
General government 2,714,636 3,287,262 3,793,066 4,073,708 4,025,604
Public safety 23,098,221 25,448,868 26,416,606 27,448,432 28,845,371
Community services 4,856,669 5,650,806 6,029,323 6,072,624 6,322,864
Community development 19,816,994 26,470,128 14,393,211 10,031,035 16,393,573
Debt service:
Principal retirement 430,000 2,170,000 1,350,000 25,745,000 2,215,000
Interest 2,804,239 3,287,244 3,319,071 3,525,898 3,557,829
Bond issuance costs - - - 275,515 2,582
Total expenditures 53,720,759 66,314,308 55,301,277 77,172,212 61,362,823
Excess of revenues over
(under) expenditures (4,900,374) (8,804,896) 687,189 (16,476,339) 2,343,980
Other Financing Sources (Uses):
Transfers in 4,522,359 5,496,446 3,746,485 3,574,115 4,318,330
Transfers out (5,037,174) (7,576,735) (7,616,425) (7,154,454) (11,012,940)
Issuance of loan/notes - - - - 959,229
Issuance of bonds 70,815,000 - - 23,120,000 -
Payment to refunded bond escrow
Payment to bond escrow agent (46,370,000) - - - -
Premium on bonds 1,737,198 - - 1,138,052 -
Total other financing sources (uses)25,667,383 (2,080,289) (3,869,940) 20,677,713 (5,735,381)
Net Change in fund balances 20,767,009$ (10,885,185)$ (3,182,751)$ 4,201,374$ (3,391,401)$
Debt service as a percentage
of noncapital expenditures 7.11%11.66%9.57%39.37%10.81%
8,252,168$ 19,502,689$ 6,503,584$ 2,831,468$ 7,967,777$
(a)Long-term debt was transferred to the Successor Agency on February 1, 2012. The Successor Agency is not considered a
component unit for the City, thus the debt payments are disclosed in the Fiduciary Funds section of this report.
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
190
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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
Fines 266,163 293,899 208,305 239,873 282,535
Special assessments - - - - -
Investment income (loss)608,641 762,671 1,084,408 1,247,543 1,884,149
Contribution from property owners - - - -
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
Community development 14,675,204 11,052,313 14,993,509 15,421,483 19,143,243
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
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)$
Debt service as a percentage
of noncapital expenditures 9.52%9.97%9.58%9.53%8.67%
870,322$ 1,003,386$ 4,284,158$ 5,261,085$ 7,070,839$
(modified accrual basis of accounting)
Fiscal Year
City of Gilroy
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
191
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CATEGORY 2011 2012 2013 2014 2015
Outkes Center 2,552,694$ 2,833,256$ 2,845,863$ 2,867,431$ 2,899,778$
Newman Development 2,070,313 2,131,034 2,201,623 2,230,855 2,332,215
Regency Center 923,509 940,836 949,436 946,073 965,112
Downtown Core 191,131 224,977 271,227 296,354 316,595
General Retail 5,737,647 6,130,103 6,268,149 6,340,713 6,513,700
Auto Dealers 871,311 1,045,717 1,131,680 1,649,758 2,136,541
Service Stations 1,355,605 1,543,421 1,457,239 1,442,888 1,292,736
Transportation 2,226,916 2,589,138 2,588,919 3,092,646 3,429,277
Others 3,234,205 3,284,517 3,344,680 3,697,010 3,695,108
Allocation from State and County 1,621,404 1,829,803 1,912,529 1,292,761 2,220,825
TOTALS:12,820,172$ 13,833,561$ 14,114,277$ 14,423,130$ 15,858,910$
Population 49,316 50,081 51,505 52,413 53,000
Sales Tax Per Capita 240 276 274 275 299
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities
Fiscal Year
City of Gilroy
Sales Tax by Category
Last Ten Fiscal Years
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
5,000
10,000
15,000
20,000
25,000
Others State/County Gen. Retail Transportation Per Capita
192
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CATEGORY 2016 2017 2018 2019 2020
Outlet Center 2,747,030$ 2,669,216$ 2,571,713$ 2,464,617$ 1,739,806$
Newman Development 2,426,698 2,500,961 2,529,804 2,743,665 2,643,207
Regency Center 999,738 968,005 987,417 1,004,376 896,599
Downtown Core 356,687 398,344 385,497 505,600 472,427
General Retail 6,530,153 6,536,526 6,474,431 6,718,258 5,752,039
Auto Dealers 2,633,013 3,224,719 3,691,038 3,855,166 3,056,022
Service Stations 1,094,398 1,064,232 1,290,582 1,298,298 1,129,189
Transportation 3,727,411 4,288,951 4,981,620 5,153,464 4,185,211
Others 4,018,337 4,263,541 4,632,323 4,418,367 4,294,454
Allocation from State and County 3,608,834 2,679,451 2,152,877 3,896,016 3,002,179
TOTALS:17,884,735$ 17,768,469$ 18,241,251$ 20,186,105$ 17,233,883$
Population 55,170 55,936 55,615 55,928 57,084
Sales Tax Per Capita 324 318 328 361 302
Source: MBIA MuniServices Company
State of California, Department of Finance, Population Estimates for California Cities
Fiscal Year
City of Gilroy
Sales Tax by Category (Continued)
Last Ten Fiscal Years
193
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Agency 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
7.250%6.250%6.500%6.500%6.500%6.250%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%
0.750%0.750%0.750%0.750%0.750%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%
----------
0.500%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%
------0.500%0.500%0.500%0.500%
Total 9.250%8.250%8.750%8.750%8.750%8.750%9.000%9.000%9.000%9.000%
Source: California Department of Tax and Fee Administration
SCC Transit District
SCC Valley Transportation
Authority
SCC VTA Bay Area Rapid
Transit
Silicon Valley
Transportation Solutions
State of California
Santa Clara County (SCC)
Transportation Funds
City of Gilroy
SCC Retail Transactions
and Use Tax
SCC Transactions and Use
Tax
FISCAL YEAR
City of Gilroy
Sales Tax Rates
Last Ten Fiscal Years
0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%10.00%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Total
Gilroy
194
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Packet Pg. 256 Attachment: 2020 Gilroy CAFR FINAL (3201 : Receive FY20 Comprehensive Annual Financial Report (CAFR) and Appropriations Limit)
Taxpayer Business Type Taxpayer Business Type
Action Gypsum Supply West Bldg.Matls-Whsle Arco AM/PM Mini Marts Service Stations
Arco AM/PM Mini Marts Service Stations Banana Republic Apparel Stores
Best Buy Stores Furniture/Appliance Best Buy Stores Furniture/Appliance
Chevron Service Stations Service Stations Chevron Service Stations Service Stations
Coach Stores Miscellaneous Retail Coach Stores Miscellaneous Retail
Costco Wholesale Department Stores Costco Wholesale Department Stores
Garlic Travel Center Service Stations Garlic Travel Center Service Stations
Gilroy Buick GMC Auto Sales - New Gilroy Chevrolet/Cadillac Auto Sales - New
Gilroy Chevrolet/Cadillac Auto Sales - New Gilroy Gas & Mini-Mart Service Stations
Gilroy Toyota Auto Sales - New Gilroy Honda Auto Sales - New
Happy Daze RV's Misc. Vehicle Sales Gilroy Toyota Auto Sales - New
Home Depot Bldg.Matls-Retail Home Depot Bldg.Matls-Retail
Lowe's Home Centers Bldg.Matls-Retail JN Abbott Distributor Energy Sales
McDonald's Restaurants Restaurants Kohl's Department Stores Department Stores
Nike Factory Store Apparel Stores Lowe's Home Centers Bldg.Matls-Retail
Ross Stores Apparel Stores McDonald's Restaurants Restaurants
Rotten Robbie Service Stations Service Stations Nike Factory Store Apparel Stores
See Grin's RV Misc. Vehicle Sales Polo Ralph Lauren Apparel Stores
Shell Service Stations Service Stations Rotten Robbie Service Stations Service Stations
South County Chrysler Jeep Dodge Ram Fiat Auto Sales - New South County Chrysler Jeep Dodge Ram Fiat Auto Sales - New
South County Hyundai of Gilroy Auto Sales - New South County Nissan Auto Sales - New
Target Stores Department Stores Target Stores Department Stores
Union 76 Service Stations Service Stations TV's Gas & Foodmart Service Stations
Vans Shoes Apparel Stores Union 76 Service Stations Service Stations
Wal Mart Stores Department Stores Wal Mart Stores Department Stores
Source: MuniServices, LLC / Avenu Insights & Analytics
City of Gilroy
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2019-20 2010-11
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Fiscal Year
End
Gross Local
Secured Exempt Valuation Net Local Secured Net Utility Net Unsecured
Net Taxable
Assessed Value
Gross Taxable
Assessed
Valuation
2011 5,515,703,007$ 47,031,600$ 5,468,671,407$ 80,918,014$ 232,541,079$ 5,782,130,500$ 5,829,162,100$
2012 5,477,242,040 46,387,600 5,430,854,440 78,686,470 281,804,033 5,791,344,943 5,837,732,543
2013 5,467,139,776 46,209,800 5,420,929,976 72,086,470 266,918,393 5,759,934,839 5,806,144,639
2014 5,913,805,270 46,463,200 5,867,342,070 64,186,470 260,981,844 6,192,510,384 6,238,973,584
2015 6,395,754,046 46,050,200 6,349,703,846 52,530,836 265,879,967 6,668,114,649 6,714,164,849
2016 6,798,621,370 45,871,000 6,752,750,370 47,030,836 268,445,327 7,068,226,533 7,114,097,533
2017 7,385,130,561 46,578,000 7,338,552,561 42,130,836 273,713,487 7,654,396,884 7,700,974,884
2018 7,872,947,886 47,244,400 7,825,703,486 39,330,836 263,667,226 8,128,701,548 8,175,945,948
2019 8,445,397,378 48,090,000 8,397,307,378 38,939,704 256,724,279 8,692,971,361 8,741,061,361
2020 9,001,686,593 47,874,400 8,953,812,193 32,539,704 257,410,089 9,243,761,986 9,291,636,386
Source: County of Santa Clara, Department of Finance
Note:In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%based upon the assessed value of
the property being taxed.Each year,the assessed value of property may be increased by an "inflation factor"(limited to a maximum increase of 2%).With few
exceptions,property is only reassessed at the time that it is sold to a new owner.At that point,the new assessed value is reassessed at the purchase price of property
sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of the taxable property and is
subject to the limitations described above.
City of Gilroy
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(modified accrual basis of accounting)
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Special
Fiscal Basic County County Total County City of Other Special Total Tax
Year Wide Levy Levy District Gilroy (1)Districts Rate
2010 1.00000 0.05340 1.05340 0.01160 0.17630 1.24130
2011 1.00000 0.05070 1.05070 0.03750 0.18710 1.27530
2012 1.00000 0.04590 1.04590 0.03650 0.13040 1.21280
2013 1.00000 0.04630 1.04630 0.03650 0.13690 1.21970
2014 1.00000 0.04470 1.04470 0.03400 0.14620 1.22490
2015 1.00000 0.05030 1.05030 0.03400 0.14690 1.23120
2016 1.00000 0.05000 1.05000 0.02900 0.13540 1.21440
2017 1.00000 0.04980 1.04980 0.02720 0.19160 1.26860
2018 1.00000 0.06206 1.06206 0.02600 0.17900 1.26706
2019 1.00000 0.05890 1.05890 0.02500 0.13180 1.21570
2020 1.0000 0.05810 1.05810 0.02000 0.19940 1.27750
Notes:
(1) In 2005 and 2006 the tax rate was only applicable to a certain tax district within Gilroy (2-007)
(2) The above tax rates are applied per $100 of assessed valuation
In 1978 the voters of the State of California passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. The City of Gilroy's share is approximately 10%.
In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment
of voter approved bonds.
Source: County of Santa Clara, Department of Finance
City of Gilroy
Direct and Overlapping Property Tax Rates
(Per $100 of Taxable Value)
Last Ten Fiscal Years
0.00000 0.20000 0.40000 0.60000 0.80000 1.00000 1.20000 1.40000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Series3
Series2
Series1
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Owner Assessed Valuation
% of Total
Assessed
Valuation Assessed Valuation
% of Total
Assessed
Valuation
Simon Property Group 216,750,517$ 2.34%187,313,681$ 3.29%
Olam West Coast Inc 67,575,848 0.73%
Excel Gilroy Llc 63,672,477 0.69%
United Natural Foods West Inc 59,227,472 0.64%
Mabury Vineyards Llc Et Al 55,665,651 0.60%
Pacheco Pass Retail Xii Llc 43,660,386 0.47%
Wal Mart Real Est Bus Trt 33,720,630 0.36%30,064,245 0.53%
Performance Food Group Inc 31,681,994 0.34%
7610 Isabella Way Llc 30,930,799 0.33%
E P & G South Valley Plaza Llc 27,540,000 0.30%
Calatlantic Group Inc 26,977,077 0.29%
Calpine Gilroy Cogen L P 26,392,634 0.29%
Central Valley Coalition 25,173,640 0.27%
Monterey Gourmet Foods 24,127,423 0.26%
Costco Wholesale Corp A Ws Cor 23,013,776 0.25%20,425,360 0.36%
Tri Pointe Homes Inc 21,978,500 0.24%
Redwoods Wheeler L P 19,952,347 0.22%
Sterigenics U S Llc 17,713,699 0.19%
Target Corporation 17,660,892 0.19%15,262,381 0.27%
First Street Gilroy I Llc 17,646,000 0.19%
Mission Park Gilroy Llc 16,678,530 0.18%
Hd Development Of Maryland,Inc 16,569,289 0.18%14,319,026 0.25%
Lee James Trustee 16,320,000 0.18%
Gilroy Village Shopping Center 15,887,249 0.17%12,211,766 0.21%
Trimark-Gilroy Hospitality Llc 15,850,593 0.17%
Lakha Properties Gilroy Llc 79,933,495 1.40%
Conagra Inc 67,175,415 1.18%
Inland Western Gilroy I Llc 64,889,748 1.14%
Shapell Industries Inc 47,709,322 0.84%
Health Care Reit Inc 34,855,601 0.61%
Mccarthy Gilroy Llc 26,614,465 0.47%
South Valley Apts Llc 23,428,128 0.41%
Land Department 20,878,710 0.37%
Cp6Sv Llc 20,698,134 0.36%
Chinatown Llc 19,603,754 0.34%
Gilroy Country Oaks Ests Llc 18,141,704 0.32%
Kelly-Kehriotis Partners Llc 15,658,065 0.27%
Lowes Hiw Inc A Ws Corp 15,343,101 0.27%
Adelaide Pines Llc 14,765,324 0.26%
Tin Inc.14,076,051 0.25%
Avery Cypress Pointe Lp 12,561,601 0.22%
Town Place Llc 12,414,777 0.22%
Garlic Farm Annex Llc 12,243,323 0.21%
Country Estates Venture 11,416,793 0.20%
Total Top 25 Taxpayers 932,367,423$ 10.09%812,003,970$ 14.24%
Gross Local Secured Valuation 9,243,761,986$ 100.00%5,701,212,486$ 100.00%
Note:
Source: Santa Clara County Assessor data, MuniServices, LLC / an Avenu Insights & Analytics Company
GASB Statement 44 requires the presentation of information about the principal revenue payers for the current year
2020 2011
City of Gilroy
Principal Property Taxpayers
Current Year and Nine Years Ago
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COLLECTED WITHIN THE
FISCAL YEAR OF LEVY TOTAL COLLECTIONS TO DATE
Fiscal Taxes Levied for Percent of Percent of
Year the Fiscal Year Amount Levy Amount Levy
2011 5,656,421$ 5,591,508$ 98.85%5,591,508$ 98.85%
2012 5,664,737 5,609,406 99.02%5,609,406 99.02%
2013 5,634,085 5,622,101 99.79%5,622,101 99.79%
2014 6,054,088 6,029,696 99.60%6,029,696 99.60%
2015 6,515,197 6,547,657 100.50%6,547,657 100.50%
2016 6,903,278 6,963,327 100.87%6,963,327 100.87%
2017 7,472,764 7,487,528 100.20%7,487,528 100.20%
2018 7,941,242 7,941,242 100.00%7,941,242 100.00%
2019 8,521,868 8,521,868 100.00%8,521,868 100.00%
2020 9,060,136 9,060,136 100.00%9,060,136 100.00%
Note: The amounts presented include City secured and supplemented property taxes.
The City of Gilroy is on Santa Clara County's teeter program. Therefore, secured revenue is based on net levy, rather than collection.
Source: Finance Department, County of Santa Clara
City of Gilroy
Property Tax Levies, Tax Collections, and Delinquency
Last Ten Fiscal Years
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General Tax Lease Special
Fiscal Revenue Allocation Notes &Revenue Assessment Revenue
Year Bonds (4)Bonds Loans Bonds (4)Bonds Bonds
2010 10,724,640$ -$ 1,500,000$ 46,370,000$ 1,130,000$ -$
2011 34,529,124 - 24,340,000 25,410,269 870,000 -
2012 33,860,997 - 24,340,000 24,438,409 - -
2013 33,162,870 - 24,340,000 23,710,455 - -
2014 32,434,743 - - 47,182,360 - -
2015 31,681,616 - 959,229 45,587,503 - -
2016 30,893,489 - 1,201,155 43,937,647 - -
2017 30,080,362 - 1,126,536 42,232,790 - -
2018 29,247,235 - 1,082,253 40,462,933 - -
2019 28,305,209 - 948,011 38,623,072 - -
2020 26,630,459 - 857,428 36,713,219 - -
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.
City of Gilroy
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
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Wastewater Total % of
Fiscal Revenue Primary Property Net Debt
Year Bonds (3) (4)Government (1)Assessed Value (2)per Capita
2010 26,168,102$ 85,892,742$ 1.39%1,758
2011 25,935,334 111,084,727 1.92%2,253
2012 24,237,585 106,876,991 1.85%2,134
2013 22,384,827 103,598,152 1.80%2,011
2014 20,477,068 100,094,171 1.62%1,910
2015 18,519,310 96,747,658 1.45%1,825
2016 16,491,551 92,523,842 1.31%1,677
2017 14,393,793 87,833,481 1.15%1,570
2018 12,206,034 82,998,455 1.02%1,484
2019 9,928,276 77,804,568 0.90%1,391
2020 7,545,517 71,746,623 0.78%1,257
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.
City of Gilroy
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Business-Type
Activities
201
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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
2010 10,724,640$ -$ 10,724,640$ 6,160,626,025$ 48,853 0.174%220
2011 34,529,124 - 34,529,124 5,782,130,500 49,316 0.597%700
2012 33,860,997 - 33,860,997 5,791,344,943 50,081 0.585%676
2013 33,162,870 - 33,162,870 5,759,934,839 51,505 0.576%644
2014 32,434,743 - 32,434,743 6,192,510,384 52,413 0.524%619
2015 31,681,616 - 31,681,616 6,668,114,649 53,000 0.475%598
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
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
48
49
50
51
52
53
55
56 56 56
57
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
42
44
46
48
50
52
54
56
58
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2019-20 City Gross Taxable Assessed Valuation:9,291,636,386$
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2020 Debt 6/30/20
Santa Clara County 881,455,000$ 1.802%15,883,819$
Gavilan Joint Community College District 124,070,000 26.109%32,393,436
Gilroy Unified School District 284,057,495 81.923%232,708,422
City of Gilroy 27,487,888 100.000%27,487,888
City of Gilroy Community Facilities District No. 2000-1 7,212,008 100.000%7,212,008
Santa Clara Valley Water District Benefit Assessment District 65,495,000 1.802%1,180,220
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 316,865,793$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations 966,725,100$ 1.802%17,420,386$
Santa Clara County Pension Obligation Bonds 346,996,639 1.802%6,252,879
Santa Clara County Board of Education Certificates of Participation 3,480,000 1.802%62,710
Gavilan Joint Community College District Certificates of Participation 6,925,000 26.109%1,808,048
Gilroy Unified School District Certificates of Participation 24,245,000 81.923%19,862,231
City of Gilroy General Fund Obligations 36,713,218 100.000%36,713,218
Santa Clara County Vector Control Certificates of Participation 2,010,000 1.802%36,220
Total Gross Direct And Overlapping General Fund Debt 82,155,692$
Less: Santa Clara County Support Obligations 579,007
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 81,576,685$
TOTAL DIRECT DEBT 64,201,106
TOTAL GROSS OVERLAPPING DEBT 334,820,379
TOTAL OVERLAPPING DEBT 334,241,372
COMBINED TOTAL DEBT 398,442,478$ (2)
(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.
(2)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded
capital lease obligations.
Ratios to 2019-20 Assessed Valuation:
Direct Debt ($27,087,578)0.29%
Total Direct and Overlapping Tax and Assessment Debt 3.41%
Total Direct Debt ($62,797,578)0.68%
Gross Combined Total Debt 4.28%
Net Combined Total Debt 4.27%
AB: ($500)
Source: County of Santa Clara, Department of Finance California Municipal Statistics
% Applicable
(1)
City of Gilroy
Schedule of Direct and Overlapping Bonded Debt
June 30, 2020
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2011 2012 2013 2014 2015
Assessed valuation 5,829,162,100$ 5,837,732,543$ 5,806,144,639$ 6,238,973,584$ 6,714,164,849$
Debt Limit Rate (1)15%15%15%15%15%
Debt limit 874,374,315 875,659,881 870,921,696 935,846,038 1,007,124,727
Total net debt applicable to limit:
General obligation bonds 33,830,000 33,190,000 32,520,000 31,820,000 31,095,000
Legal debt margin 840,544,315$ 842,469,881$ 838,401,696$ 904,026,038$ 976,029,727$
Total debt applicable to the limit
as a percentage of debt limit 4.0%3.9%3.9%3.5%3.2%
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
Fiscal Year
City of Gilroy
Legal Debt Margin Information
Last Ten Fiscal Years
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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 26,630,459
Legal debt margin 1,036,779,630$ 1,125,596,233$ 1,197,646,892$ 1,283,175,666$ 1,367,114,999$
Total debt applicable to the limit
as a percentage of debt limit 2.9%2.6%2.4%2.2%1.9%
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
Fiscal Year
City of Gilroy
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
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2011 2012 2013 2014 2015
Gross revenues:
Charges for services 8,012,406$ 8,170,711$ 8,441,024$ 9,168,356$ 10,336,111$
Investment income (loss)646,240 451,737 283,816 370,199 257,938
Rate Stabilization Fund Balance - - 750,000 - -
Transfer from Sewer Impact Fund 287,600 674,534 704,007 705,356 700,544
Total gross revenues 8,946,246 148-1549,296,982 10,178,847 10,243,911 11,294,593
Operating expenses:
Operations 4,618,320 5,259,612 5,893,404 5,612,274 6,281,516
Billing 467,355 551,109 533,611 559,262 588,131
Administration 182,670 237,750 279,787 375,945 377,770
Claims and judgements - - - - -
Total operating expenses 5,268,345 6,048,471 6,706,802 6,547,481 7,247,417
Net Revenues 3,677,901 3,248,511 3,472,045 3,696,430 4,047,176
Series 1999 installment
payments / Refunding Series 2010 payments 886,181$ 2,462,276$ 2,571,000$ 2,576,576$ 256,950$
Gross revenue debt service coverage 1009.53%377.58%395.91%397.58%440.00%
Net revenue debt service coverage 415.03%131.93%135.05%143.46%157.66%
Fund available
Sewer Development Capital Project Fund 8,519,976$ 10,391,910$ 11,416,503$ 12,304,205$ 10,362,866$
Sewer Fund cash and cash equivalent 30,519,114 29,427,892 29,267,803 27,625,188 26,336,933
Rate stabilization fund - - 750,000 750,000 750,000
Total funds available 39,039,090$ 39,819,802$ 41,434,306$ 40,679,393$ 37,449,799$
Days funds on hand 2,114 1,776 1,593 1,540 1,326
Fiscal Year
City of Gilroy
Revenue Bond Coverage - Wastewater System
Last Ten Fiscal Years
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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)210,826 188,300 241,144 593,929 561,664
Rate Stabilization Fund Balance - - - - -
Transfer from Sewer Impact Fund 700,111 696,546 697,198 694,146 693,577
Total gross revenues 12,684,875 13,529,576 13,658,483 14,192,732 14,127,430
Operating expenses:
Operations 7,296,107 7,454,895 7,466,650 8,339,489 9,462,155
Billing 612,551 594,654 618,400 668,982 730,892
Administration 500,398 472,465 558,846 706,101 667,733
Claims and judgements - - - - -
Total operating expenses 8,409,056 8,522,014 8,643,896 9,714,572 10,860,780
Net Revenues 4,275,819 5,007,562 5,014,587 4,478,160 3,266,650
Series 1999 installment
payments / Refunding Series 2010 payments 2,566,550$ 2,558,687$ 2,562,738$ 2,557,625$ 2,557,750$
Gross revenue debt service coverage 494.24%528.77%532.96%554.92%552.34%
Net revenue debt service coverage 166.60%195.71%195.67%175.09%127.72%
Fund available
Sewer Development Capital Project Fund 11,481,078$ 12,964,741$ 14,534,002$ 13,533,945$ 13,376,865$
Sewer Fund cash and cash equivalent 18,537,029 16,777,330 17,391,216 17,687,792 18,610,720
Rate stabilization fund 750,000 750,000 750,000 750,000 750,000
Total funds available 30,768,107$ 30,492,071$ 32,675,218$ 31,971,737$ 32,737,585$
Days funds on hand 805 719 734 665 625
Fiscal Year
City of Gilroy
Revenue Bond Coverage - Wastewater System (Continued)
Last Ten Fiscal Years
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Net Taxable Per Capita Average
Fiscal Assessed Taxable Property Unemployment
Year Population (1)Values (2)Values Rate (3)
2011 49,316 5,782,130,500$ 117,247$ 14.6%
2012 50,081 5,791,344,943 115,640 12.7%
2013 51,505 5,759,934,839 111,833 10.4%
2014 52,413 6,192,510,384 118,148 8.6%
2015 53,000 6,668,114,649 125,813 6.9%
2016 55,170 7,068,226,533 128,117 5.7%
2017 55,936 7,654,396,884 136,842 4.9%
2018 55,615 8,128,701,548 146,160 4.9%
2019 55,928 8,692,971,361 155,431 2.5%
2020 57,084 9,243,761,986 161,933 13.90%
Note: Data for personal income is not readily available; the City used taxable assessed values to calculate per
capita taxable property values.
Sources:
(1) State of California, Department of Finance, Population Estimates for California Cities
(2) County of Santa Clara, Finance Agency
(3) State of California, Employment and Development Department, Labor Market Information Division
City of Gilroy
Demographic and Economic Statistics
Last Ten Fiscal Years
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2020 2015
Percent of Percent of
Number of Total Number of Total
Company or Organization Employees Rank Employment Employees Rank Employment
Gilroy Unified School District*1,045 1 3.47%
Christopher Ranch LLC 780 2 2.59%600 1 3.27%
Olam International (Formerly ConAgra-Gilroy Foods)500 3 1.66%440 4 2.09%
Saint Louise Regional Hospital 478 4 1.59%500 2 2.56%
Costco Wholesale 316 5 1.05%253 7 0.87%
Gavilan College 293 6 0.97%213 10 0.72%
Wal-Mart 286 7 0.95%395 5 1.64%
City of Gilroy 284 8 0.94%
Community Solutions 270 9 0.90%219 9 0.78%
Rebekah Children's Services 243 10 0.81%233 8 0.80%
Gilroy Gardens Theme Park (formerly Bonfante)464 3 2.50%
Monterey Gourmet Foods 270 6 0.88%
Total Top 10 Employers 4,495 14.93%3,587 16.11%
Total City Employment(1)30,100 N/A
Source: MuniServices, LLC / Avenu Insights & Analytics
Source: 2014-15 previously published CAFR. Nine years prior data is unavailable.
Results based on direct correspondence with city’s local businesses.
(1) Total City Labor Force provided by EDD Labor Force Data.
* Includes FTE & PTE.
City of Gilroy
Principal Employers
Current Year and Five Years Ago
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Department 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Administration 5 5 6 5 4 5 5 6 6 7
City Council and Mayor 7 7 7 7 7 7 7 7 7 7
Community Development 17 18 18 20 21 21 18 18 21 23
Finance 13 14 13 13 13 13 11 13 14 14
Fire 43 39 41 39 40 39 35 36 37 37
Fleet and Facilities 9 10 10 10 10 10 10 10 10 10
Human Resources 3 3 3 4 4 4 4 4 4 5
Information Technology 3 2 4 4 2 2 3 3 4 3
Police 87 87 87 88 93 94 87 92 94 96
Public Works 34 34 34 36 38 43 40 42 54 57
Recreation 9 11 11 11 11 12 10 11 11 11
Total 230 230 234 237 243 250 230 242 262 270
(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.
Fiscal Year
City of Gilroy
Full-Time Equivalent City Government Employees
By Function / Program
Last Ten Fiscal Years
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Function 2011 2012 2013 2014 2015 Function
General Government
Number of Business Licenses Issued 2,967 2,958 2,855 2,615 3,034
Total Volunteer Service Hours 29,668 31,905 29,566 35,439 32,598
Total City-Wide Training Hours Provided 1,538 3,513 1,300 1,245 1,957
Total Vehicle Work Orders Generated 1,631 3,118 2,919 2,739 3,146
Total Facilities Work Orders Generated 1,576 1,660 1,658 1,613 1,542
Public Safety
Police
Number of 911 Calls Received 21,206 22,328 24,074 27,753 28,498 **
Number of Police Calls for Service 59,177 59,361 58,124 58,112 62,200
Number of Investigations Assigned to Detectives 816 781 769 727 821
Number of Case Reports Processed 10,780 10,708 11,956 11,926 13,566
Fire
Total Calls for Service 3,746 4,014 4,322 4,557 5,131
Total Fire Calls 179 172 178 182 179
Total Emergency Medical Aid Calls 2,340 2,410 2,566 2,802 3,341
Community Development
Number of Building Inspections Completed 9,378 14,055 13,938 14,101 21,592
Number of Building Permits Processed 1,212 1,160 1,158 1,706 2,042
Number of Fire Code Permits Issued 525 587 577 567 819
Public Works
10,000 430,000 660,000 930,000 90,000
Linear Feet of Preventive Cleaning 600,000 540,000 640,000 600,000 716,900
Million Gallons of Wastewater Treated per Day 6.76 6.39 6.27 6.05 5.99
Million Gallons of Municipal Water Produced per Day 7.31 7.71 8.32 7.87 6.79
Million Gallons of Wastewater Flow per Day (COG)3.91 0.37 3.58 3.45 3.50
Number of Utility Billing Customers 12,958 13,210 13,540 13,716 13,865
Recreation
Number of Registrations Processed 4,166 5,075 7,405 5,500 6,378
Number of Meals Provided to Seniors Annually 18,392 17,744 19,459 19,549 20,031
Source: City of Gilroy, Various City Departments
** Available Data Reflects
Square Feet of Chip Seal/Slurry Seal/Crack Seal Completed
City of Gilroy
Operating Indicators By Function / Program
Last Ten Fiscal Years
Fiscal Year
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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 913 845 815 986 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
Square Feet of Chip Seal/Slurry Seal/Crack Seal Completed 274,479 712,504 533,397 1,430,477 698,249
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 21,351 22,566 23,815 25,103 21,979
Source: City of Gilroy, Various City Departments
** Available Data Reflects
Fiscal Year
City of Gilroy
Operating Indicators By Function / Program (Continued)
Last Ten Fiscal Years
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2011 2012 2013 2014 2015
General Government
City Buildings 55 55 55 55 55
Public Safety
Police
Police Stations 1 1 1 1 1
Police Vehicles 73 71 72 76 79
Fire
Fire Stations 3 3 3 3 3
Fire Vehicles 20 20 20 20 20
Public Works
Park sites 16 16 16 16 16
Centerline Miles of Streets 151 156 159 118 120
Number of Streetlights 3,784 3,894 3,969 4,150 4,150
Miles of Storm Trunk Mains 30 30 31 31 31
Miles of Sewer Mains 102 108 110 110 111
Treatment Plant Dry Weather Flow Capacity (MGD)9 9 9 9 9
Water Meters in Municipal Service Area 13,063 13,319 13,651 13,831 14,127
Miles of Water Mains 109 116 120 121 152
Number of Fire Hydrants 1,815 1,948 1,960 2,048 2,150
Source: City of Gilroy, Various City Departments
Function
City of Gilroy
Capital Assets By Function
Last Ten Fiscal Years
Fiscal Year
Source: Finance Division, City of Cerritos
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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
Source: City of Gilroy, Various City Departments
Fiscal Year
Function
City of Gilroy
Capital Assets By Function (Continued)
Last Ten Fiscal Years
Source: Finance Division, City of Cerritos
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City of Gilroy
STAFF REPORT
Agenda Item Title: Consent to the Appointment of Harjot Sangha as Finance Director
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Human Resources Department
Submitted By: LeeAnn McPhillips
Prepared By: LeeAnn McPhillips
Strategic Plan Goals
☐ Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
Workforce Stability ☐ Public Engagement
RECOMMENDATION
Consent to the City Administrator’s recommendation to appoint Harjot Sangha to the
Department Head position of Finance Director.
BACKGROUND
In November 2020, the City commenced a recruitment to fill the vacant position of
Finance Director following the Council’s appointment of the former director, Jimmy
Forbis, to the position of City Administrator.
Following the recruitment and interview process, a qualified, experienced candidate was
identified. After a series of panel interviews comprised of subject matter experts,
Department Directors, and City Administrator, a top finalist was selected for the Finance
Director position, Harjot Sangha. Mr. Sangha completed a thorough background check
and, at this time, City Administrator Forbis is recommending he be ap pointed as Gilroy’s
next Finance Director. Harjot Sangha has been identified as a strong fit for the Finance
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Director position.
Mr. Sangha brings over eight years of public sector finance experience to the City of
Gilroy having served in a variety of finance and accounting positions for the City of
Morgan Hill. Currently, he serves as the Assistant to the City Manager in Morgan Hill, a
position with significant responsibilities involving city finances and key services. Prior to
this position, Mr. Sangha served as the Accounting Manager having advanced to more
responsibilities after holding other accounting and finance positions within Morgan Hill’s
Finance Department. In addition, Mr. Sangha is a Certified Government Finance
Manager (CGFM) and is an active member of the Association of Government
Accountants, Government Finance Officers Association, and the California Society of
Municipal Finance Officers.
Mr. Sangha brings to this position some of the key leadership and management traits
the City sought in the new director: strong technical and leadership skills, an excellent
customer service orientation, the ability to establish and maintain partnerships, the
ability to develop and lead teams, creative problem solving, ability to think outside the
box and implement innovative ways of doing business, and communicating complex
information to others in an easy to understand format.
Understanding some of Gilroy’s current fiscal challenges, Mr. Sangha is excited join the
Gilroy team and put his talents to work to fulfill Council and City Administrator’s goal to
ensure a financially sustainable organization into the future . He has proven experience
to lead the department and deliver results. His experience and expertise will also help to
develop and grow the team of employees within the Finance Department.
Mr. Sangha holds a Bachelor’s degree from San Francisco State University in Business
Administration with a concentration in Accounting. He is currently pursuing a Master’s
degree in Public Administration from Golden Gate University.
Upon consent of the City Council and issuance of a final offer letter, M r. Sangha is
scheduled to begin employment on April 1, 2021.
COMPENSATION
Mr. Sangha’s starting compensation after applying the current temporary pay reduction
will be $181,272 annually, plus benefits.
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City of Gilroy
STAFF REPORT
Agenda Item Title: Standing Report on Operational Impacts and City/Community
Efforts Related to the COVID-19 Pandemic
Meeting Date: March 1, 2021
From: Jimmy Forbis, City Administrator
Department: Administration
Submitted By: Jimmy Forbis
Prepared By: Jimmy Forbis
Strategic Plan Goals
Fiscal Stability
☐ Downtown
Revitalization
☐ Economic
Development
☐ Neighborhood Services
☐ Enhanced Public
Safety
☐ Workforce Stability Public Engagement
RECOMMENDATION
Receive report.
EXECUTIVE SUMMARY
The instabilities of the COVID-19 pandemic continues to play a major role in influencing
how local government responds to this current health and fiscal crisis. Timely and
accurate situational awareness is critical for elected officials to assist you in making
informed decisions on how best to allocate resources for maximum effectiveness within
the community.
This report serves as a standing Council discussion concerning the various impacts of
the pandemic. Presentations will be given on interconnected topics such as health and
safety, City finances, and business and economic recovery.
POLICY DISCUSSION
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Discussions coming from the information contained in this report may include service
levels, fiscal decisions and employee relations, among others.
FISCAL IMPACT/FUNDING SOURCE
Fiscal impacts are directly tied to and occur as the result of pandemic conditions region -
wide, and within our community.
CONCLUSION
This standing report is to inform the City Council and to keep you updated on the
changes to COVID-19 conditions within the clinical and operational spheres of local
government.
PUBLIC OUTREACH
Public education and outreach regarding COVID-19 is a regular and ongoing feature of
the City’s community engagement efforts.
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