The Gilroy City Council approved a $207.2 million budget June 2 that provides funding for new pickleball courts but will “delay” the hiring of three new recreation staff, according to city officials.
The 2025-26 budget includes a general fund of $75.6 million, and a full-time city staff of 299 employees. An expense of about $900,000 to build new pickleball courts in Gilroy is appropriated in the budget.
The council approves the city’s budget for two years at a time. Also at the June 2 meeting, the council approved a 2026-27 budget of $206.6 million, which includes general fund expenditures of $78.3 million.
The seven-member council’s vote approving the two-year budget was unanimous.
Although council members and city officials had previously discussed adding funds for three new recreation services staff members to the 2025-26 budget, City Administrator Jimmy Forbis said staff decided to “delay” those positions, at least until the end of this summer.
Forbis said due to other priorities identified by the council in Gilroy’s recreation services, it is unclear now what kind of staff positions to add. These priorities include long-term funding for the city’s swimming program, which is currently under only a one-year operator’s contract; as well as existing workplans and a recreation master plan in the works.
“We’re not removing it; we’re delaying it,” Forbis said. “It’s an ongoing conversation.”
The three recreation positions that were previously proposed in a preliminary budget for this year were recreation supervisor, recreation coordinator and recreation management analyst. Those positions collectively would have cost the city about $413,000 this year and $434,000 next year.
Forbis added that city staff will present a report to the council later this month about the financial details of the city’s swimming program, which is currently operated by an outside contractor. He also said staff will return to the council in August with a more comprehensive report on recreation, and more details on when the city could hire more recreation staff.
The city’s recreation services have turned a profit since the end of the COVID-19 pandemic, which resulted in mandatory closures and a decline in revenues. Coming out of the pandemic, the council added $1.5 million in annual funding to recreation services to “organically grow programs based on cost recovery,” according to a city staff report.
Over the years, recreation revenues have grown, resulting in a present day excess of about $400,000 for the division, according to Gilroy Finance Director Harjot Sangha. That surplus was the reason city officials had previously proposed adding recreation staff to the 2025-26 budget.
Some members of the public at the June 2 meeting urged the council to add more funding to recreation services now, citing the high costs that children, families and other users pay for sports and other programs.
Council member Carol Marques insisted that her council colleagues and city staff make sure to keep the public and each other informed often and consistently about the recreation programs’ financial situation.
“We are not going to penalize the families that cannot afford to play soccer” at city facilities, Marques said.
More budget highlights
The approved budget includes $180,000 for 2025-26, and $378,000 for 2026-27 for two code enforcement officers. Sangha said those positions are not funded past 2027 due to uncertain revenue projections beyond that year, especially from sales tax.
For the first time, the city will hire an economic development director under the new budget. The new director, funded by the general fund, will be tasked with establishing a new economic development department, according to a city staff report.
Gilroy budget, by the numbers
Total 2025-26 budget: $207.2 million
Includes:
General fund: $75.6 million
Special revenue funds: $14.8 million
Capital/development impact fund: $44.7 million
Personnel expenses: $54.2 million
Capital improvement program
2026: $59.2 million
2027: $54.3 million
Includes (two-year total):
Streets: $19.2 million
Utilities: $30.1 million
Public facilities: $21.2 million
Engineering: $36.7 million
Parks and trails: $6.4 million
