2018-055 - Approving Commitments of Fund Balance Under GASB 54RESOLUTION 2018 -055
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, there exists an excess balance of $4.2 million as of June 30, 2018 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 2018/19 general fund budgeted operating expenditures of
$5,037,243 as specified in the Town Council General Fund Reserve Policy. This would increase
both Budget Stabilization and Catastrophic Reserves from $4,969,847 by $67,396 from available
year -end savings; and
WHEREAS, per Town Council General Fund Reserve Policy, $690,000 will be placed to
the CaIPERS /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
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Resolution 2018 -055 December 18, 2018
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY
RESOLVE that the following fund balances as of June 30, 2018 as restricted, assigned, or formally
committed as follows:
Committed to
Budget Stabilization $
5,037,243
Other
5,037,243
Catastrophic
5,037,243
Nonmajor
Total
CaIPERS /OPEB
Appropriated
Governmental
Governmental
Almond Grove Street Project
General Fund Reserves
Funds
Funds
FUND BALANCE
Restricted for:
Capital Outlay
$ 606,933.0
$ 6,187,130.0
$ 6,794,063.0
Repairs and Maintenance
198,684
198,684
Committed to
Budget Stabilization $
5,037,243
5,037,243
Catastrophic
5,037,243
5,037,243
CaIPERS /OPEB
2,878,913
2,878,913
Almond Grove Street Project
5,571,087
5,571,087
Assigned to:
Vasona Land sale
Open Space
562,000
562,000
PERS Unfunded Liability
Parking
1,460,210
1,460,210
Susta i na bi I ity
140,553
140,553
Strategic Planning
129,090
129,090
Capital Projects
14,421,203
4,613,202
19,034,405
Carryover Encumbrances
99,927
99,927
Comcast PEG
50,000
50,000
Compensated Absences
2,122,512
2,122,512
Special Revenue Funds
237,991 237,991
Total Fund Balances $ 30,428,684 $ 12,301,432 $ 6,623,805 $ 49,353,921
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 18th day
of December 2018 by the following vote:
COUNCIL MEMBERS:
AYES: Marcia Jensen, Rob Rennie, Marico Sayoc, Barbara Spector, Mayor Steve Leonardis
NAYS: None.
ABSENT: None
ABSTAIN: None.
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMiiJIST ATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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Resolution 2018 -055 December 18, 2018