CCP 05-24-1999 - Laserfiche WebLink

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I Ie I I I I I I I Ie I I I I I I I Ie I CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER31,1998 Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED J. Fund Equity Reservations and Designations The components of fund equity are described in Note I. Certain reserves and designations have been made in the following funds: Puroose Amount $ 21,652 194.555 $ 715.207 $ 553.571 Reserved General Fund Debt Service Fund Total Compensated absences Payment oflong-term debt Designated General Fund Working capital K. Contributed Capital The changes in the City's contributed capital accounts of its proprietary funds were as follows: Sources Water Sewer Total $4,217,879 $2,326,265 $6,544,144 117,620 380,948 498,568 (49.432) (56.579) (106.01 J) $4.286.067 $2.650.634 $6.936.701 Beginning balance, contributed capital Contributions from other funds Less depreciation on contributed assets Ending balance, contributed capital Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the City are covered by defmed benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) which is a cost-sharing, multiple-employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute and vest after three years of credited service. The defmed retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher ofthe step-rate benefit accrual formula (Method I) or a level accrual formula (Method 2). Under Method I, the annuity accrual rate for a Basic Plan member who retired before July I, 1997 is 2.0 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. The annuity accrual rate for Basic members who retire on or after July I, 1997 is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. For a Coordinated Plan member who retired before July I, 1997, the annuity accrual rate is 1.0 percent of average salary for each of the years and 1.7 percent for each remaining year). Under Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic Plan members and 1.5 percent for Coordinated Plan members who retired before first 10 years and 1.5 percent for each remaining year. For Coordinated members who retire on or after July I, 1997, the annuity -20-