Gilroy council adopts $207 million two‑year budget, delays new recreation hires

The Gilroy City Council adopted the city’s two‑year operating and capital budget for fiscal years 2026 and 2027 on June 2, approving an approximately $207 million spending plan and related items including an appropriations limit and a position control list.

City Administrator Jimmy Forbes told the council the budget process “started now a hundred and 10 days ago” and described the adopted plan as “a policy document” and “a dynamic document.” Finance Director Harjit Sanga said the recommended budget shows $207.1 million in expenditures for FY26 and roughly $206.6 million for FY27, with roughly $178.6 million in expected revenues in FY26 and planned use of fund balances for capital projects.

The council’s adoption includes a two‑year capital improvement program that programs roughly $59 million in FY26 and $54 million in FY27, with major projects noted for utilities, the Gilroy Ice Center and a planned fire station. Sanga said the budget maintains the council’s policy reserve (30%) through the forecast period.

Council members spent significant time on recreation funding after weeks of public comment and staff presentations. Forbes told the council that the recreation fund has built an approximately $1.5 million balance over several years and that staff recommended delaying hiring three recreation positions while the city finishes evaluations and a one‑year swim contract. “We are not removing it, we’re delaying it,” Forbes said, adding that staff would return with details and recommended staffing after additional analysis.

Several residents and Parks & Rec commissioners urged the council to keep or restore the new recreation positions and to use some of the accumulated recreation fund balance to expand programs, lower fees and invest in facilities. Rebuilding Together Silicon Valley and other nonprofits also urged greater funding for home repair work for low‑income residents (see separate article on CDBG funding).

The council voted 7‑0 to adopt related resolutions: the FY26 appropriation limit, operating and CIP budgets for FY26–27, and the position control list. The final adopted package included deletion/delay of the three proposed recreation positions and the addition of two temporary general‑fund code‑enforcement officers funded for two years. Harjit Sanga told council the two code positions would cost about $180,000 in year one and $378,000 in year two, and that the recommended change left the city “in a balanced position” under the staff forecast.

What’s next: staff will return over the summer with a more detailed recreation program analysis, recommendations on staffing and the swim program, and quarterly updates on the work plan items the council adopted as part of the budget process.

Votes at a glance: The council adopted the FY26–27 operating and capital budgets, the appropriation limit, and the position control list by a 7‑0 roll call vote with Councilmember Ramirez making the motion and Councilmember Marks seconding.

Speakers quoted or referenced in this article are identified from the meeting transcript: Jimmy Forbes, city administrator; Harjit Sanga, finance director; Councilmembers Joey Fugazi, Debbie Bracco, Terrence Klein, Sharon Marks, Melissa Hilton and Carol Ramirez; and multiple members of the public who spoke during the public hearing and public comment periods.