How to Read the Budget

How to Read the Budget Identifies the overall mission of the department or division Describes the actions to be taken to fulfill the general goal, including services, programs or projects to be completed during the budget term Current Two Year Budget Proposed Two Year Budget Documents the actual and projected results of the services delivered to the community and provides a basis for assessing service/program effectiveness Historical audited financials for the previously completed fiscal year Original Adopted Budget Adopted budget PLUS budget amendments made throughout the current fiscal year (7/1/14 6/30/15) 1

How to Read the Budget Sources of income received by the City Budget Document shows two year history (FY 14 and FY 15) as compared to the proposed twoyear budget (FY 16 and FY 17) Uses of income; monies spent on service delivery Salaries and benefits where personnel are assigned to the given divisional budget; however, some divisional budgets do not have a personnel component BOLD rows represent subtotals for each expenditure type Costs to the City to support divisional activities including consumable materials, utilities, training, supplies and services provided by other agencies Charges for services and capital equipment provided by the centrally managed fleet, equipment, facilities and IT divisions 2

How to Read the Budget Fund # Dept # Identifies full-time specific positions and percentage charged to the divisions for the fiscal years listed 3

Full Time Position Listing Department Full Time Position FY 15 FY 16 FY17 Administration City Administrator 1 1 1 City Clerk 1 1 1 Office Assistant I/II 2 2 2 Public Information Officer 1 1 1 Secretary to the City Administrator 1 1 1 Administration Total 6 6 6 Community Development Building Inspector I/II 3 4 4 Building Plan Check Engineer 1 2 2 Chemical Control Specialist II 3 3 3 Code Enforcement Officer 2 2 2 Community Development Director 1 1 1 Deputy Fire Marshal 1 1 1 Development Center Manager 1 1 1 Fire Marshal 1 1 1 HCD Coordinator 1 1 1 HCD Technician II 1 1 1 Office Assistant I/II 1 1 1 Permit Technician 1 1 1 Planner I/II 2 2 2 Planning Division Manager 1 1 1 Planning Technician 1 1 1 Senior Planner 1 1 1 Community Development Total 22 24 24 Facility Services Custodian 1 1 1 Facilities Maintenance Specialist 3 3 3 Facilities Superintendent 1 1 1 Senior Custodian 1 1 1 Facility Services Total 6 6 6 Finance Accountant II 1 1 1 Accounting Assistant I/II 4 4 4 Accounting Technician 2 2 2 Assistant Finance Director 1 1 1 Budget Analyst 2 2 2 Finance Director 1 1 1 Puchasing Coordinator 1 1 1 Revenue Officer 1 1 1 Supervising Accounting Technician 1 1 1 Finance Total 14 14 14 Fire Fire Captain 10 10 10 Fire Chief 1 1 1 Fire Division Chief 3 3 3 Fire Engineer 9 9 9 Firefighter/Paramedic 16 16 16 Fire Admin Technician 1 1 1 Fire Total 40 40 40 Fleet Services Equipment Mechanic 3 3 3 Fleet Superintendent 1 1 1 Fleet Total 4 4 4 4

Full Time Position Listing Human Resources H.R. Analyst 1 1 1 H.R. Assistant II 1 1 1 H.R. Director/Risk Manager 1 1 1 H.R. Technician I 1 1 1 Human Resources Total 4 4 4 Information Technology Information Tech I 1 1 1 Information Tech Manager 1 1 1 Public Safety Systems Administrator 1 1 1 Systems Administrator 1 1 1 Information Technology Total 4 4 4 Police Administrative Secretary 1 1 1 Captain 3 4 4 Community Service Officer 4 4 4 Corporal 8 7 7 Crime Analyst/Records, Property & Evidence Manager 1 1 1 Detention Services Officer - 1 1 Multi-Service Officer 4 4 4 Office Assistant I/II 2 2 2 P.S. Communicator 7 8 8 P.S. Communicator Supervisor 1 1 1 Police Chief 1 1 1 Police Officer 40 43 43 Police Records Technician I/II 6 6 6 Property & Evidence Technician 1 1 1 PSC Trainee 2 2 2 Sergeant 10 10 10 Sr. P.S. Communicator 1 1 1 Sr. Police Records Technician 2 2 2 Youth Task Force Coordinator 1 1 1 Police Total 95 100 100 Public Works Budget Analyst - 1 - Engineer I 3 3 3 Engineering Tech/Inspector II/III 3 3 3 Maintenance Worker I/II 22 25 28 Office Assistant I/II 1 2 1 Public Works Director/City Engineer 1 1 1 Senior Environmental Engineer 1 1 1 Operations Services Supervisor 3 3 3 Senior Civil Engineer 3 3 3 Senior Maintenance Worker 4 4 4 Public Works Total 41 46 47 Recreation Administrative Secretary 1 1 1 Office Assistant I/II 2 2 2 Recreation Coordinator 4 5 5 Recreation Director 1 1 1 Recreation Supervisor 3 3 3 Recreation Total 11 12 12 Grand Total 247 260 261 5

CITY OF GILROY FUND ANALYSIS FY 16 & 17 PROJECTED PROJECTED PROJECTED 6/30/15 6/30/16 6/30/17 FUND FY2016 FY2016 FUND FY2017 FY2017 FUND FUND DESCRIPTION BALANCE REVENUE EXPENSE BALANCE REVENUE EXPENSE BALANCE 100 GENERAL FUND 20,145,006 48,015,671 47,990,486 19,820,191 48,252,857 48,229,377 19,843,671 200 SIDEWALK REPAIR RESERVE 986,800 259,975 257,489 989,286 260,000 260,000 989,286 201 LIBRARY RESERVE 25,305 256 0 25,561 258 0 25,819 209 GAS TAX 2105 175,676 301,231 282,176 194,731 305,764 284,561 215,934 210 GAS TAX 2106 801,406 157,566 215,000 743,972 157,742 250,000 651,714 211 GAS TAX 2107 84,401 412,874 368,400 128,875 424,844 378,100 175,619 212 GAS TAX 2107.5 3,663 7,537 7,500 3,700 7,537 7,500 3,737 213 GAS TAX 2103 1,719,240 298,987 1,800,000 218,227 283,977 400,000 102,204 224 TRANSPORT MOBILITY GRANTS 0 2,580,300 2,580,300 0 4,600,000 4,600,000 0 225 VEHICLE REGISTRATION FEE 394,349 303,943 643,000 55,292 300,883 183,000 173,175 226 CALGRIP SO. COUNTY ONE GRANT 0 650,001 650,001 0 794,567 794,567 0 235 OFFICE OF TRAFFIC SAFETY GRANT 0 330,000 330,000 0 184,885 184,885 0 238 POLICE JAG GRANT E BYRNE (0) 15,800 15,800 (0) 15,800 15,800 (0) 239 FEDERAL ASSET SEIZURE 53,494 66,000 10,000 109,494 66,000 10,000 165,494 243 CALGRIP REACH GRANT 70,804 189,995 189,995 70,804 0 0 70,804 245 POLICE SPECIAL GRANTS 0 5,592 5,592 0 26,687 26,687 0 248 STATE BLOCK GRANT 0 100,000 100,000 0 100,000 100,000 0 251 SPECIAL ENFORCEMENT 127,672 1,200 22,000 106,872 1,200 22,000 86,072 253 PROP 172 SALES TAX 13,014 228,282 228,282 13,014 246,981 258,029 1,966 254 COMMUNITY DEV. BLOCK GRANT 778,900 752,255 1,029,699 501,456 479,088 596,808 383,736 259 CDBG HOUSING TRUST FUND 3,243,734 301,500 401,441 3,143,793 294,000 405,125 3,032,668 263 DEER PARK CFD 24,758 15,551 8,214 32,095 16,237 18,957 29,375 266 CFD CITYWIDE 7,561 141,126 39,507 109,180 489,888 253,369 345,699 268 REACT TASK FORCE 0 193,260 193,260 0 200,866 200,866 0 275 FIRE SPECIAL GRANTS 17,531 125 0 17,656 125 0 17,781 289 GOLF COURSE RECREATION (526,759) 45,142 0 (481,617) 45,866 0 (435,751) 290 RECREATION 6,666 3,259,075 3,259,075 6,666 3,293,241 3,293,241 6,666 400 CAPITAL PROJECTS 0 23,082 23,082 0 23,082 23,082 0 415 GILROY COMMUNITY LIBRARY 356,000 117 0 356,117 118 0 356,235 420 STORM DRAIN DEVELOPMENT 413,644 76,700 161,925 328,419 134,935 5,261 458,093 431 UTILITY UNDERGROUND DEVELOP. 7,377 74 0 7,451 75 0 7,526 432 STREET TREE DEVELOPMENT 100,915 1,998 5,223 97,690 1,950 5,261 94,379 433 TRAFFIC IMPACT 3,710,394 7,127,964 10,541,150 297,208 7,628,971 4,804,460 3,121,719 435 SEWER DEVELOPMENT (479,577) 5,720,035 2,123,646 3,116,812 4,567,608 1,789,463 5,894,957 436 WATER DEVELOPMENT 1,466,614 1,653,757 644,611 2,475,760 1,332,488 128,318 3,679,930 440 PUBLIC FACILITIES IMPACT (7,396,527) 11,250,573 6,832,440 (2,978,394) 9,643,442 5,025,603 1,639,445 485 DOWNTOWN STREETSCAPE 86,787 868 0 87,655 877 0 88,532 486 DOWNTOWN IMPROVEMENTS 72,846 728 75,726 (2,152) 500 0 (1,652) 499 BANK INTEREST 0 60,000 60,000 0 60,000 60,000 0 505 GILROY COMMUNITY LIBRARY 1,328,285 2,112,269 2,112,269 1,328,285 2,110,155 2,110,155 1,328,285 511 CA ENERGY COMMISSION 0 71,400 71,400 0 71,400 71,400 0 514 LEASE REVENUE BONDS 2013 948,148 1,842,151 1,841,669 948,630 1,839,351 1,838,869 949,112 516 LEASE REVENUE BONDS 2010 1,865,970 1,747,232 1,746,706 1,866,496 1,746,032 1,745,506 1,867,022 600 FLEET SERVICES 3,900,701 1,876,071 2,732,126 3,044,646 2,007,618 2,669,517 2,382,747 605 EQUIPMENT OUTLAY 2,680,964 263,152 716,886 2,227,230 141,491 346,368 2,022,353 620 WORKERS COMPENSATION (667,039) 1,119,126 1,057,073 (604,986) 1,126,363 1,073,014 (551,637) 630 LIABILITY INSURANCE (144,560) 1,273,616 1,228,106 (99,050) 1,295,814 1,260,275 (63,511) 651 FACILITY SERVICES 0 2,791,140 2,791,140 0 2,532,210 2,532,210 0 690 INFORMATION TECHNOLOGY 1,797,447 2,267,880 3,102,640 962,687 2,159,074 2,890,348 231,413 700 SEWER 16,343,479 12,668,706 19,312,346 9,699,839 13,562,971 15,205,271 8,057,539 720 WATER 15,654,229 7,459,083 14,924,765 8,188,547 7,455,319 10,935,294 4,708,572 806 GILROY JUNIOR GOLF 3,596 25 0 3,621 25 0 3,646 807 SOFTBALL BOARD 7,484 25 0 7,509 25 0 7,534 808 SENIOR ADVISORY BOARD 7,232 75 0 7,307 75 0 7,382 810 HENRY MILLER 17,097 130 130 17,097 130 130 17,097 811 FIRE BARNEY J. GARCIA 2,571 20 0 2,591 20 0 2,611 813 EMPLOYEE WELLNESS 1,347 25 0 1,372 25 0 1,397 6

CITY OF GILROY FUND ANALYSIS FY 16 & 17 PROJECTED PROJECTED PROJECTED 6/30/15 6/30/16 6/30/17 FUND FY2016 FY2016 FUND FY2017 FY2017 FUND FUND DESCRIPTION BALANCE REVENUE EXPENSE BALANCE REVENUE EXPENSE BALANCE 814 MUSEUM ENDOWMENT TRUST 41,867 400 0 42,267 400 0 42,667 815 HIGHWAY 152 SERIES 2002 1,611,683 609,385 591,385 1,629,683 604,403 586,403 1,647,683 817 HIGHWAY 152 SERIES 2006 1,463,108 639,545 638,485 1,464,168 641,598 640,538 1,465,228 TOTAL 73,355,303 121,290,596 133,962,146 60,333,753 121,537,838 116,519,618 65,351,973 7

CITY OF GILROY REVENUES - GENERAL FUND COST CENTER DESCRIPTION BUDGET FY16 BUDGET FY17 100-0431-0000 PROPERTY TAX SECURED 6,271,079 6,537,149 100-0431-0000 PROPERTY TAX UNSECURED 432,000 432,000 100-0431-0000 SUPPLEMENTAL PROPERTY TAX 187,335 193,892 100-0431-0000 HOMEOWNER'S EXEMPTION 35,620 35,620 100-0431-0000 DOCUMENTARY TRANSFER TAX 369,807 382,750 100-0431-0000 SALES TAX 17,339,818 16,789,533 100-0431-0000 MOTOR VEHICLE TAX 20,000 20,000 100-0431-0000 TRANSIENT OCCUPANCY TAX 1,361,844 1,402,699 100-0431-0000 BUSINESS LICENSES 615,865 622,024 100-0431-0000 OTHER LICENSES & PERMITS 18,320 18,320 100-0431-0000 ADMIN. FEE - GARBAGE 416,935 425,274 100-0431-0000 OVERHEAD CHARGES 2,097,040 1,919,492 100-0431-0000 MISC REVENUES 429,792 377,125 100-0431-0000 ACCUMULATED ANNUAL SAVINGS 350,000 350,000 100-0431-0212 GAS TAX 2107.5 7,500 7,500 100-0431-0225 VLF REIMBURSEMENT 3,896,469 4,032,846 100-0431-0499 BANK INTEREST 158,081 158,081 100-0431-0839 SCRWA CONSTRUCTION OVERHEAD BILLINGS 15,850 8,250 100-0431-0840 SCRWA OPERATIONS OVERHEAD BILLINGS 490,842 490,842 100-0431-1510 GAS UTILITY USERS TAX 451,152 460,175 100-0431-1511 ELECTRIC UTILITY USERS TAX 2,290,368 2,359,079 100-0431-1520 STEAM UTILITY USERS TAX 128,732 128,732 100-0431-1530 GAS MISCELLANEOUS UTILITY USERS TAX 181,182 184,806 100-0431-1531 ELECTRIC MISCELLANEOUS UTILITY USERS TAX 94,778 97,622 100-0431-1540 PHONE UTILITY USERS TAX 162,165 148,219 100-0431-1545 TOURISM BUSINESS IMPROVEMENT DISTRICT 5,895 6,072 100-0431-1550 PHONE MISCELLANEOUS UTILITY USERS TAX 237,657 232,904 100-0431-1560 WIRELESS PHONE UTILITY USERS TAX 779,075 815,861 100-0431-1570 CABLE TV UTILITY USERS TAX 186,838 183,101 100-0431-1710 GAS & ELECTRICITY FRANCHISE TAX 714,374 725,089 100-0431-1720 GARBAGE FRANCHISE TAX 519,723 530,117 100-0431-1730 CABLE TV FRANCHISE TAX 218,856 214,479 100-0431-1910 UNCLAIMED FUNDS 231 231 100-1400-0000 VEHICLE/COURT FINES 176,296 179,822 100-1400-0000 PARKING FINES 20,272 20,272 100-1400-0000 ABANDONED VEHICLE ABATEMENT 72,000 73,440 100-1400-0000 POLICE SERVICE CHARGE 51,000 52,020 100-1400-0000 POLICE ADMIN MISC REVENUES 200,000 204,000 100-1400-0226 CALGRIP SOUTH COUNTY ONE GRANT - ADMIN 48,775 48,775 100-1400-0243 CALGRIP REACH GRANT - ADMIN 12,553 0 100-1400-0248 STATE BLOCK GRANT 100,000 100,000 100-1400-5137 POLICE ADMIN CITATION 500 500 100-1400-6180 ANIMAL CONTROL 53,890 59,558 100-1400-6300 POST TRAINING 43,000 49,000 100-1401-0000 POLICE OVERTIME REIMBURSEMENT 12,987 13,247 100-1401-0000 POLICE MISC. REIMBURSEMENT/REVENUE 155,620 157,332 100-1401-0226 CALGRIP SOUTH COUNTY ONE GRANT - PATROL 100,782 100,782 100-1401-0243 CALGRIP REACH GRANT - PATROL 15,909 0 8

CITY OF GILROY REVENUES - GENERAL FUND COST CENTER DESCRIPTION BUDGET FY16 BUDGET FY17 100-1404-0000 PD COMMUNICATIONS MISC REVENUES 19,114 19,114 100-1500-0000 FIRE ADMIN OVERTIME REIMBURSEMENT 15,560 15,560 100-1500-0000 FIRE ADMIN GILROY REIMBURSEMENT 6,650 6,650 100-1500-1715 STRIKE TEAM REIMBURSEMENT 1,100 1,100 100-1500-1716 ASSIST FOR HIRE REIMBURSEMENT 1,100 1,100 100-1500-7083 PARAMEDIC FIRST RESPONDER 138,000 138,000 100-2404-0720 WATER 22,604 23,008 100-2404-1586 AB 939 WASTE MGMT 52,000 52,000 100-2404-1587 HOUSEHOLD HAZWASTE 25,000 25,000 100-2404-1588 CONTAINER RECYCLING 13,000 13,000 100-2404-1589 SVDR SERVICES 110,000 110,000 100-2420-0000 LANDSCAPE MAINTENANCE SERVICE CHARGE 20,000 20,000 100-2420-0000 LANDSCAPE MAINTENANCE MISC REVENUES 500 500 100-2600-5137 ADMIN CITATION PROCESS 12,000 12,000 100-2601-0000 ENGINEERING PLAN CHECK FEES 2,140,755 2,372,000 100-2601-0000 ENGINEERING SERVICE CHARGE 20,013 30,496 100-2602-0000 PLANNING SERVICE CHARGE 898,507 971,076 100-2603-0000 PLAN CHECK & INSPECTION BUILDING PERMITS 1,911,369 2,009,229 100-2603-0000 PLAN CHECK & INSPECTION PLAN CHECK FEES 477,842 502,307 100-2603-0000 PLAN CHECK & INSPECTION - INSPEC. & ANALYSIS 30,000 35,000 100-2603-0000 PLAN CHECK & INSPECTION MISC REVENUES 2,000 545 100-2603-0254 CDBG 13,500 13,500 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT BUILDING PERMITS 120,000 105,000 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT HMSO PERMITS 130,000 135,000 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT UFC PERMITS 85,250 88,200 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREAT. OTHER LICENSES & PERMITS 22,000 25,000 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT PLAN CHECK FEES 95,000 95,000 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT INSPECTION & ANALYSIS 80,000 80,000 100-2605-5315 FIRE PREV., HAZ. MAT. & PRE-TREATMENT CERS DATA MGMT 4,000 4,840 TOTAL REVENUES 48,015,671 48,252,857 9

CITY OF GILROY EXPENDITURES - GENERAL FUND COST CENTER DESCRIPTION BUDGET FY16 BUDGET FY17 100-0100-0000 CITY COUNCIL 231,566 237,246 100-0101-0000 CITY ATTORNEY 580,000 580,000 100-0102-0000 CITY ADMINISTRATOR 430,071 447,676 100-0103-0000 CITY CLERK 323,096 391,055 100-0104-0000 EMERGENCY SERVICES 4,020 4,020 100-0400-0000 ADMINISTRATION 500,575 504,700 100-0400-0200 SIDEWALK REPAIR RESERVE 250,000 250,000 100-0400-0290 RECREATION 2,300,518 2,324,352 100-0400-0420 STORM DRAIN DEVELOPMENT 1,914 1,196 100-0400-0432 STREET TREE DEVELOPMENT 44 27 100-0400-0433 TRAFFIC IMPACT 78,031 48,769 100-0400-0435 SEWER DEVELOPMENT 45,361 28,351 100-0400-0436 WATER DEVELOPMENT 9,428 5,893 100-0400-0440 PUBLIC FACILITIES IMPACT 65,221 40,763 100-0400-3761 ECONOMIC DEVELOPMENT 200,000 200,000 100-0400-3762 BANNER PROGRAM 0 5,000 100-0410-0000 FINANCE 699,210 746,446 100-0411-0000 GENERAL ADMINISTRATION 929,601 859,075 100-0411-0630 LIABILITY INSURANCE 202,727 202,727 100-0420-0000 HUMAN RESOURCES & RISK MGMT 904,024 903,769 100-0420-1652 CITY AWARDS 9,900 7,900 100-0420-1654 SAFETY COMMITTEE 14,500 14,500 100-1400-0000 POLICE ADMINISTRATION 3,794,610 3,724,611 100-1400-6300 POST TRAINING 83,278 75,191 100-1401-0000 POLICE PATROL 12,511,727 13,048,898 100-1401-0226 CALGRIP SOUTH COUNTY ONE GRANT - PATROL 145,573 156,802 100-1401-0235 OFFICE OF TRAFFIC SAFETY GRANT 0 84,885 100-1401-0243 CALGRIP REACH GRANT - PATROL 1,995 0 100-1401-0268 REACT TASK FORCE GRANT 92,260 99,866 100-1401-6180 ANIMAL CONTROL 47,715 47,131 100-1402-0000 POLICE INVESTIGATION 1,269,884 1,316,753 100-1404-0000 POLICE COMMUNICATIONS 1,994,639 2,072,582 100-1405-0000 POLICE RECORDS 1,099,127 1,176,821 100-1500-0000 FIRE ADMINISTRATION 1,410,630 1,353,626 100-1500-7082 EMERGENCY MEDICAL DISPATCH 40,000 40,000 100-1501-0000 FIRE OPERATIONS 8,168,038 8,492,891 100-2401-0000 PUBLIC INFORMATION 220,791 219,893 100-2404-0000 ENVIRONMENTAL PROGRAM 66,719 68,742 100-2404-1586 AB 939 WASTE MGMT 2,200 2,200 100-2404-1587 HOUSEHOLD HAZWASTE 1,500 1,500 100-2404-1588 CONTAINER RECYCLING 9,400 9,400 100-2404-1589 SVDR SERVICES 32,200 32,200 100-2404-1590 KEEP GILROY BEAUTIFUL 1,000 1,000 100-2420-0000 LANDSCAPE MAINTENANCE 2,577,519 2,849,092 100-2420-9095 LANDSCAPE OPS WORK ORDER 2,700 2,700 100-2420-9501 SPORTS PARK TAXES 22,800 22,800 100-2430-0000 STREET MAINTENANCE 806,254 834,606 10

CITY OF GILROY EXPENDITURES - GENERAL FUND COST CENTER DESCRIPTION BUDGET FY16 BUDGET FY17 100-2430-2489 FORESTRY 211,540 211,540 100-2430-9095 STREET OPS WORK ORDER 2,700 2,700 100-2430-9305 STREET CONTRACTUAL SERVICES 7,698 7,698 100-2600-0000 COMMUNITY DEVELOPMENT ADMIN 11,400 10,904 100-2601-0000 ENGINEERING 383,426 355,776 100-2601-3000 PLAN CHECK AND REVIEW 30,000 30,000 100-2601-3001 GEOTECHNICAL PEER REVIEW 5,000 5,000 100-2601-3002 LANDSCAPE INSP SERVICES 5,000 5,000 100-2601-3003 PLAN CHECK & INSP SERVICES 150,000 150,000 100-2601-3009 CITY SURVEYOR SERVICES 140,000 100,000 100-2602-0000 PLANNING 2,402,096 1,374,527 100-2603-0000 PLAN CHECK & INSPECTION 1,765,210 1,792,858 100-2604-0000 ECONOMIC DEVELOPMENT 241,171 231,924 100-2605-0000 FIRE PREV., HAZ. MAT. & PRE-TREATMENT 448,299 409,215 100-2605-5315 FIRE PREV., HAZ. MAT. & PRE-TREAT. CERS 4,580 4,580 TOTAL EXPENDITURES 47,990,486 48,229,377 11

City of Gilroy General Fund Revenue Definitions General fund revenue is comprised of revenue that is not restricted for specific purposes. The following are the different types of General Fund revenues that the City receives: - Taxes - Licenses and Permits - Fines and Forfeitures - Intergovernmental (Federal and State grants) and reimbursements - Charges for services (inspections and review) - Use of money and property (bank interest, rents, leases and concessions) - Other revenues (economic incentive penalties and unclaimed funds) - Other financing sources (operating transfers in or sale of assets) The following is a brief definition or explanation of the taxes received by the City of Gilroy. 1. CURRENT TAXES, SECURED: Based upon the Proposition 13 limits, the tax is limited to 1% of the assessed value of the property plus amounts required for the payment of principal and interest on voter approved bond indebtedness. The City receives approximately 10% of the Proposition 13 tax. 2. SUPPLEMENTAL PROPERTY TAX: A local generated tax authorized by SB 813, Chapter 447, Government Code Section 16110, originally provided to replace lost Business Inventory Tax. An ad valorem tax is generated when property is sold. Assessment is based upon the difference between current market value and the value assigned to the prior owner. The County distributes the funds to local agencies based on collections for a particular period. 3. CURRENT TAXES, UNSECURED: Based upon taxable furnishings and equipment for businesses and industry and personal property such as boats and airplanes. 4. HOMEOWNERS EXEMPTION: The State of California controls this tax. Homeowners may apply for up to a $7,000 reduction from the assessed valuation before calculation of the tax bill. The State reimburses the City for this reduction. 5. DOCUMENTARY TRANSFER TAX: The tax ($1.10/$1,000 of the sales price) is charged each time property is sold or transferred to a different owner. Collection occurs during the escrow process and sent to the County. The City receives 50% ($.55/$1,000) of the transfer tax on the property transferred within our city limits. 6. SALES TAX: The present sales tax rate is 8.75%. The state collects this tax and distributes it monthly as an advance with actual accounting quarterly. In 2004, Proposition 57 provided the state with a mechanism to fund $15 billion in economic recovery bonds without raising taxes. It increased the State s share of 12

the sales and use tax by 0.25% and reduced the local sales and use tax by 0.25%. The lost revenues to the City were backfilled by property tax revenues from ERAF. The state bonds are expected to be fully paid in July 2015 and the full 1 percent local rate should return on January 1, 2016. 7. MOTOR VEHICLE IN LIEU: A special license fee is imposed annually by the State on the market value of motor vehicles in lieu of local property taxes (Section 11005, Revenue and Taxation Code). This fee is imposed for the privilege of operating vehicles on public streets. Cities and counties share in a percentage of this fee. In 1999, AB 1121 reduced the fee to motorists each year beginning with a 25% reduction and ending with a 67.5% reduction in 2003. The State backfilled the difference to the cities from its General Fund. In 2005, SB 1096 reduced the license fee from 2% to 0.65% and eliminated the backfill. The backfill was replaced with additional property tax revenue from ERAF. In 2011, SB89 eliminated Vehicle License Fee (VLF) revenues allocated to cities and counties. As a part of the Legislator s efforts to solve the state s chronic budget problems, the bill shifted all city VLF revenues to fund law enforcement grants that previously had been paid by a temporary state tax and prior to that by the state general fund. 8. TRANSIENT OCCUPANCY TAX: Hotels and motels pay 9% of their room rates. 9. GTBID: The City of Gilroy Tourism Business Improvement District (GTBID) was effective January 1, 2013. The assessment revenue of 2% of taxable rents provides dedicated funding for a sales and marketing plan, administered by the Welcome Center, with the primary purpose of increasing overnight room sales. The City receives a reimbursement for its administration of the revenue. 10. UTILITY TAX, ELECTRICITY & GAS : This is a 5% tax on utilities charged by gas and electric providers. 11. UTILITY TAX, STEAM: This is a 5% tax on steam generation collected from Gilroy Energy Company. 12. UTILITY TAX, TELECOMMUNICATIONS & VIDEO: This is a 4.5% tax on telecommunication and video services. 13. FRANCHISE FEES: The fee is for the right to do business on or above City rights of way. The fees are as follows: a. Gas 1% based on the 1937 Act computation b. Electricity 1% based on the 1937 Act computation c. Garbage 5% d. Cable TV 5% 13