Attachment 21 of 3
Resolution 20 18 - June 5, 2018
RESOLUTION 201 8 -
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING COMMITMENTS OF FUND BALANCE UNDER GASB 54
WHEREAS , t he Governmental Accounting Standards Board (GASB) has issued its
Statement No. 5 4, 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
WHER E AS , GASB 54 pro vides that the Town Council of the Town of Los Gatos
classify governmental fund balances as restricted, assigned, or commit ted fund balances ; and
WHEREAS GASB 54 provides that restricted reserves are funds that are restricted
for exter nally 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 , the Town Counc il 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 these balances ; and
WHEREAS , on November 3, 2015 the Town Council established the committed
Almond Grove Reserve to provide funding delivering the Almond Grove Street Rehabilitation
Project in the amount of $12.2 million ($3,696,000 existing project balance and $8,459,973
committed Almond Grove General Fund Reserve); and
WHEREAS , on June 2016 the Town Council established the committed
Pension/OPEB Reserve to provide funding for pension and Other Post -Employment Benefits
(OPEB) unfunded obligations placing discre tionary amount to the reserve with formal Council
action and transferring available year -end surpluses based on the General Fund Reserve Policy ;
and
ATTACHMENT 2
2 of 3
Resolution 20 18 - June 5, 2018
WHEREAS , on May 16, 2017 the Town Council directed and additional transfer of
approximately $1,000,000 mill ion from the Almond Grove Reserve to the General Fund
committed Pension/OPEB Reserve ; and
WHEREAS , on May 16, 2017 after the Almond Grove project contract award the
Town Council directed the transfer of approximately $2,896,200 million excess balance from
the Almond Grove Reserve to the General Fund committed (including the $1 million transfer to
the Pension/OPEB reserve) and assigned reserves for immediate and future use, maintaining
the required minimum 25% of operating budget as specified in the Town’s G eneral Fund
Reserve Policy. This action w ill reduce the General Fund Almond Grove Reserve by $2,896,200
to $0 ; and
WHEREAS , on April 16, 2018 the Town Council directed the transfer of the total
amount of available Pension/OPEB Reserve to the Town IRS 115 Pension Trust Fund transferring
$300,000 monthly reducing the reserve.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE t hat the following estimated Budget Stabilization, Catastrophic ,
Pension /OPEB , Almond Grove , Capital /Spec ial Project , and Strategic Planning Reserves as of
June 30 , 201 8 and as of June 30, 2019 as assigned, or formally committed as follows :
Estimated Resolution Estimated Resolution Estimated
General Approved General Approved General
Fund Reserves Increase Fund Reserves Increase Fund Reserves
June 30, 2018 *(Decrease)June 30, 2018 *(Decrease)June 30, 2019
Committed Fund Balances
Budget Stabilization Reserve 4,969,847 $ 67,396 $ 5,037,243 $ -$ 5,037,243 $
Catastrophic Reserve 4,969,847 67,396 5,037,243 5,037,243
Pension/OPEB Reserve 3,188,913 3,188,913 (3,188,913) -
Almond Grove Reserve - - - - -
Assigned Fund Balance
Capital/Special Projects Reserve 7,881,738 - 7,881,738 $ (2,785,220) 5,096,518
Strategic Reserve 263,882 (134,792) 129,090 $ 129,090
Designated One-Time Use of the Reserves during FY 2018/19
Payments to the Town IRS 115 Trust Fund 3,188,913 $
Transfer to Capital Projects (GFAR)2,335,220
Transfer to Equipment Replacement Fund 450,000
Total 5,974,133 $
*Actual June 30, 2018 General Fund Reserve Balances to be based on audited financial report
information and directed by adopted General Fund Reserve Policy .
3 of 3
Resolution 20 18 - June 5, 2018
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos , California, held on the 5 th day of June , 20 18 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________