Attachment 1DRAFT RESOLUTION 2017-
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 statement s; 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, exists a $3,388,913 balance in the CalPERS/OPEB committed reserve at
June 30, 2017 per final audit;
WHEREAS, Town Council wishes to use the balance of $3,388,913 to place in the 115
Pension Trust; and
WHEREAS, the Town Council wishes that these assets placed in the 115 Pension Trust
be dollar cost averaged over the next year to mitigate risks associated with a single market entry
point;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the Town Council hereby authorizes the use of the committed
CalPERS/OPEB reserve of $3,388,913 to place in the 115 Pension Trust;
ATTACHMENT 1
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:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA