CCP 05-30-2000 - Laserfiche WebLink

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I I. Note3: I I I I I CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 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: Purpose Amount Reserved General Fund Compensated absences Debt Service Fund Tax Increment Bonds of 1999A Payment oflong-term debt Capital Projects Fund Permanent Improvement Revolving Interfund Loan $ 21,652 63,548 1,065,000 Total $1150200 Designated General Fund Working capital $ 579742 K. Contributed Capital I The changes in the City's contributed capital accounts of its proprietary funds were as follows: . .. Sources Water Sewer Total Beginning balance, contributed capital $4,286,067 49.432 $4236635 $2,650,634 56,579 $6,936,701 106,011 $6 830,690 Less depreciation on contributed assets . Note 4: DEFINED BENEFIT PENSION PLANS - STATEWIDE Ending balance, contributed capital $2 594 055 I . . . . .. . I 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 of a 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 is 2.2 percent of average salary for each of the first 10 years of service and 2,7 percent for each remaining year, The annuity accrual rate for a Coordinated Plan member is 1.2 percent ofaverage salary for each of the first 10 years and 1.7 percent for each remaining year, Under Method 2, the annuity accrual rate is 2,7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90, A reduced retirement annuity is also available to eligible members seeking early retirement. -20-