2017-005 - Approving commitments of fund balance under GASB 54RESOLUTION 2017 -005
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING COMMITMENTS OF FUND BALANCE UNDER GASB 54
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its
Statement No. 54, Fund Balance and Governmental Fund Type Definitions with the intent of
improving financial reporting by providing fund balance categories that will be more easily
understood and to improve the comparability of governmental fund financial statements; and
WHEREAS, the Town Council of the Town of Los Gatos has established a General
Fund Reserve Policy providing for minimum fund balance dollar target amounts for Budget
Stabilization and Catastrophic fund balances and outlines policies and procedures for use and
restoration of the these balances; and
WHEREAS, on February 7, 2017 the Town Council approved and confirmed the
fund balances and reserve classifications as recommended by the Council Finance Committee
and reported in the Comprehensive Annual Financial Report dated June 30, 2016; and
WHEREAS, GASB 54 provides that the Town Council of the Town of Los Gatos
classify governmental fund balances as restricted, assigned, or committed fund balances; and
WHEREAS GASB 54 provides that restricted reserves are funds that are restricted
for externally imposed constraints such as legal contracts or state law, assigned amounts are
constrained by the Town's intent to use them for specific purposes, and committed amounts
are dedicated for specific purposes under constraints and formal action taken by the Town
Council and these committed amounts cannot be used for any other purposes unless the Town
Council of the Town of Los Gatos removes or changes the specific use through the same formal
action to establish the commitment; and
WHEREAS, there exists an excess balance as of June 30, 2016 in the committed
Budget Stabilization funds beyond the minimum dollar amount required under the approved
Town Council reserve policy; and
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Resolution 2017 -005 February 21, 2017
WHEREAS, on January 31, 2017 the Town Council directed the transfer of
approximately $2 million from the Budget Stabilization Reserve to the CalPERS Reserve,
maintaining the required minimum 12.5% of FY 2016/17 budgeted revenues of $4,637,406 as
specified in the Town's General Fund Reserve Policy. This would reduce the Budget
Stabilization Reserve from $6,621,808 increasing the committed fund balance for CalPERS
Reserve by $1,984,402; and
WHEREAS, the Town Council desires the description of the CalPERS committed
fund balance to include all post - employment liabilities by changing its title to CalPERS /OPEB;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the following fund balances as of February 21, 2017 as restricted,
assigned, or formally committed as follows:
Total Fund Balances $ 50,755,362 $ - $ 50,755,362
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Resolution 2017 -005 February 21, 2017
Total
Resolution
Total
Governmental
Approved
Governmental
Funds
Increase
Funds
June 30, 2016
(Decrease)
February 21, 2017
Restricted Fund Balances:
Capital Outlay
$
6,200,681
$
6,200,681
Repairs and Maintenance
$
185,333
$
185,333
Assigned Fund Balances
Capital Projects
$
13,473,231
$
13,473,231
Strategic Planning
$
2,600,000
$
2,600,000
Compensated Absences
$
2,089,843
$
2,089,843
Parking
$
1,460,210
$
1,460,210
Open Space
$
562,000
$
562,000
Sustainability
$
140,553
$
140,553
Carryover Encumbrances
$
99,284
$
99,284
Comcast PEG
$
50,000
$
50,000
Special Revenue Funds
$
179,040
$
179,040
Committed Fund Balances
Budget Stabilization
$
6,621,808
$ (1,984,402)
$
4,637,406
Catastrophic
$
4,637,406
$
4,637,406
CaIPERS /OPEB
$
300,000
$ 1,984,402
$
2,284,402
Almond Grove Street Project
$
12,155,973
$
12,155,973
Total Fund Balances $ 50,755,362 $ - $ 50,755,362
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Resolution 2017 -005 February 21, 2017
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 2151 day of February, 2017 by the following vote:
COUNCIL MEMBERS:
AYES: Marcia Jensen, Steve Leonardis, Rob Rennie, Barbara Spector, Mayor Marico Sayoc
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF E Ai OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: 3--)0- 1-
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE:
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Resolution 2017 -005 February 21, 2017