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 November 3, 2017 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, 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 as of June 30, 2017 in the committed
Almond Grove Reserve funds beyond the amount required to deliver the Almond Grove Street
Rehabilitation Project; and
WHEREAS, on May 16, 2017 the Town Council directed the transfer of approximately
$2,896,200 million from the Almond Grove Reserve to the General Fund committed and assigned
ATTACHMENT 2
reserves for immediate and future use, maintaining the required minimum 12.5% of FY 2017/18
budgeted revenues of $4,969,347 as specified in the Town’s General Fund Reserve Policy. This
would reduce the Almond Grove Reserve by $2,896,200; and
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES
HEREBY RESOLVE that the following estimated Budget Stabilization, Catastrophic, CalPERS/OPEB,
Almond Grove, Capital Reserve, and Strategic Planning Reserves as of June 30, 2017 as assigned,
or formally committed as follows:
Estimated Resolution Estimated
General Approved General
Fund Reserves Increase Fund Reserves
June 30, 2017 (Decrease)June 30, 2017
Committed Fund Balances
Budget Stabilization Reserve 4,637,406$ 331,941$ 4,969,347$
Catastrophic Reserve 4,637,406 331,941 4,969,347
CalPERS/OPEB Reserve 1,284,402 1,000,000 2,284,402
Almond Grove Reserve 2,896,200 (2,896,200) -
Assigned Fund Balance
Capital/Special Projects Reserve 2,822,405 703,496 3,525,901
Strategic Reserve 2,600,000 528,822 3,128,822 *
* Proposed Use of the Strategic Planning Reserve
General Fund Use - One Time 446,595$
Traffic Mobility Manager 217,808
Transfer to Capital Projects (GFAR)1,864,419
Transfer to Facilities fund 300,000
Transfer to Equipment Replacement Fund300,000
Total 3,128,822$
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 6th day of June 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