Strategic PartnershipsThe Gilroy City Council in California unanimously approved two budgets on June 2 encompassing the city’s operations and capital improvements through fiscal year (FY) 2025-2027. Totaling $413.8 million, the new budgets will guide the Northern Californian city through the biennium.
The combined budgets allocate $113.5 million to the city’s Capital Improvement Program (CIP)—$59.2 million in FY 2025-2026 and $54.3 million in FY 2026-2027. The CIP outlines infrastructure improvements across five categories: streets and sidewalks, utilities, public facilities, engineering and parks.
The Engineering Program received the largest CIP allocation at more than $36 million. The centerpiece is the Gilroy Ice Center, which will receive $18 million annually.
The ice center is an 80,000-square-foot facility featuring two indoor ice rinks, a restaurant, a snack bar, a pro shop and additional amenities. Sharks Sports & Entertainment LLC is set to manage operations, with completion expected in 2026.
Efforts to improve the sports park have been underway for more than 25 years. The city is pursuing this project as part of its broader initiative to develop the area in line with the Sports Park Master Plan, which was adopted in 1999.
The Utilities Program follows the ice rink as the second-largest investment, with just over $30 million in funding. Major projects include $4 million for the McCarthy Site Well, $8 million for water line projects and $3 million for sewer improvements and replacements.
The Public Facilities Program will receive more than $21 million over the two-year period. Key allocations include $13 million for the Santa Teresa Fire Station, $5 million for library improvements and $2.5 million for general fire station renovations at two locations.
Street and sidewalk improvements total $10 million for rehabilitation and replacement work. An additional $9 million supports the Streets Program, covering traffic signal upgrades, storm drain rehabilitation, crossing safety improvements and street light maintenance.
The Parks and Trails Program secured more than $6 million in funding. Projects include $1.6 million for new trail construction, nearly $3 million for the San Ysidro Park Healthy Living Enhancement project and just under $2 million for citywide park improvements and new pickleball courts.
The budget approval caps months of public input and deliberation by the seven-member council.
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