Attachment 2RESOLUTION 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 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 constra ints 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
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
ATTACHMENT 2
Reserve from $6,621,808 increasing the committed fund balance for CalPERS Reserve by
$1,984,402; and
WHEREAS, the Town Council desires the description of the CalPERS committed fund
balance to include all post-employment liabilities by changing its title to CalPERS/OPEB;
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the following fund balances as of February 21, 2017 as restricted, assigned,
or formally committed as follows:
Total Resolution Total
Governmental Approved Governmental
Funds Increase Funds
June 30, 2016 (Decrease)February 21, 2017
Restricted Fund Balances:
Capital Outlay 6,200,681$ 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$
CalPERS/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$
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 21st day
of February 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