2017-066 - Approving Committments of Fund Balance Under GASB 54RESOLUTION 2017 -066
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, 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, in prior years, the Town Council appropriated funds in a deferred revenue
deposit account to be used as a funding source for future CalPERS required employer
contributions. The deferred revenue balance not used by the Town for employer contributions to
CalPERS is $1,804,511.
WHEREAS, upon review of its prior accounting for the amounts as deferred revenue,
the Town reclassified the $1,804,511 deposit account as a prior period adjustment, increasing the
General Fund Reserve for CalPERS /OPEB and decreasing the same amount from the deferred
revenue CalPERS deposit liability account.
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Resolution 2017 -066 December 19, 2017
WHEREAS, there exists an excess balance as of June 30, 2017 from year -end surplus
beyond the minimum dollar amount required under the approved Town Council General Fund
Reserve Policy; and
WHEREAS, the Budget Stabilization and Catastrophic Reserve should be maintained
at the required minimum 12.5% of FY 2017/18 general fund budgeted operating expenditures of
$4,969,847 as specified in the Town Council General Fund Reserve Policy. This would increase
both Budget Stabilization and Catastrophic Reserves from $4,636,406 by $332,441 from available
year- end savings; and
WHEREAS, per Town Council General Fund Reserve Policy, $300,000 will be placed to
the CalPERS /OPEB Reserve from available year -end savings; and
WHEREAS, the remainder of the available year -end savings will be placed to the
Capital Project Reserve according to the Town Council Reserve Policy; and
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the following fund balances as of June 30, 2017 as restricted, assigned, or
formally committed as follows:
Restricted Fund Balances
Capital Outlay
Repairs and Maintenance
Committed Fund Balances
Budget Stabilization
Catastrophic
CaIPERS /OPEB
Almond Grove Street Project
Assigned Fund Balances
Capital Projects
Strategic Planning
Compensated Absences
Parking
Open Space
Sustainability
Carryover Encumbrances
Comcast PEG
Special Revenue Funds
Total Fund Balances
General Fund Other Total
June 30, 2017 Appropriated Nonmajor Governmental
Reserve Governmental Funds
Funds June 30, 2017
$ 5,428,064 $ 5,428,064
199,943 199,643
$ 4,969,847
-
4,969,847
4,969,847
-
4,969,847
3,388,913
-
3,388,913
1,801,318
$ 10,354,584 -
12,155,902
8,273,124
6,237,237 -
14,510,361
2,600,000
-
2,600,000
2,440,170
-
2,440,170
-
1,460,210 -
1,460,210
562,000
- -
562,000
140,553
-
140,553
34,852
- -
34,852
-
50,000 -
50,000
-
- 181,547
181,547
$ 29,180,624
$ 18,102,031 $ 5,809,554
$ 53,091,909
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Resolution 2017 -066 December 19, 2017
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 19th day
of December 2017 by the following vote:
COUNCIL MEMBERS:
AYES: Marcia Jensen, Steve Leonardis, Marico Sayoc, Barbara Spector, Mayor Rob Rennie
NAYS: None.
ABSENT: None.
ABSTAIN: None.
SIGNED:
/*0
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: I �/ // -r
ATTEST:
5W&-k'A 1 � "
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: la r- D_IL -1
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Resolution 2017 -066 December 19, 2017