2017-027 - Approving Commitment of Fund Balance Under GASB 54RESOLUTION 2017 -027
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
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Resolution 2017 -027 June 6, 2017
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 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:
Proposed Use of the Strategic Planning Reserve
General Fund Use - One Time $ 446,595
Traffic Mobility Manager 217,805
Transfer to Capital Projects (GFAR) 1,864,419
Transfer to Faciities Fund 300,000
Transfer to Equipment Replacemer,t Fun d 300,000
Total 5 3,128,822
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Resolution 2017 -027 June 6, 2017
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 S
331,941
$ 4,969,347
Catastrophic Reserve
4,637,406
331,941
4,969,347
CaIPERS /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 217,805
Transfer to Capital Projects (GFAR) 1,864,419
Transfer to Faciities Fund 300,000
Transfer to Equipment Replacemer,t Fun d 300,000
Total 5 3,128,822
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Resolution 2017 -027 June 6, 2017
PASSED AND ADOPTED at a regular meeting of the Town Council held on the 6`h day of June
2017 by the following vote:
COUNCIL MEMBERS
AYES:
Marcia Jensen, Rob Rennie, Mayor Marico Sayoc
NAYS:
Barbara Spector
ABSENT:
Steve Leonardis
ABSTAIN:
None.
SIGNED:
MAYOR OFT &ORNIA
OF LOS GATOS
LOS GATOS,
DATE: (fâ 1-7â
ATTEST:
CLERK D INISTR,40R OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: Lo "(
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Resolution 2017 -027 June 6, 2017