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Note 4: CITY OF ARDEN HILLS, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DFcrMD8U'F' DETINED"''''''' ''''''DNPLAN-SCATEWIDE- .ONTINUED ... _ ] Th",=.""w,_"~."..,""",,._~~1f~~ - , armuity that ceases upon death of the retiree--no survivor . is, a ,:.1' . here "f,f~1S94.'Vlnous '. es oijoint and survivor armuity options available which will be payr over jOin#!t. . ein15ers may also leave theiJi contributions in the fund upon tennination of public servte, in order to qualify for a deferred armuity at retijement age. Refunds of contrIbutIOns are available at any tune tcrmemt>o>> who-\eave"ptlbl~~jjef<>re'rmrrement benefits begin. . The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, tenninated employees, who are entitled to benefits bnt are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes fmancial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the web at rnnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. B. Funding Policy Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established aud amended by the State legislature. The City makes annual contributions to the pension plans equal to the amount required by Minnesota statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10 percent and 5. I 0 percent, respectively, of their annual covered salary. PEPFF members were required to contribute 6.20 percent of their annual covered salary. The Ciry is reqnired to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members, 5.53 percent for Coordinated Plan PERF members, and 9.30 percent for PEPFF members. The City's contributions to the PERF for the years ending December 31, 2005, 2004 and 2003 were $61,615, $61,421, and $57,633, respectively. The City's . contributions were equal to the contractually required contributions for each year as set by Minnesota statute. Note 5: OTHER INFORMATION A. Risk Management The City is exposed to various risks ofloss related to torts; theft of, damage to and destruction of assets; errors and omissions~ injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sbaring pool with approxinaately 800 other governmental units. The City pays au annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self sustainirg through member premiums aud will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably esrimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBN'RS). The City's management is not aware of any incurred but not reported claims. B. Legal Debt Margin The City's statutory debt limit is computed as two percent of the taxahle market value of property within the City. Long-term debt issued and fInanced partially or entirely by special assessments or the net revenues of enterprise fund operations is excluded from the debt limit computation. There is no outstanding debt at year end that is applied against the statutory debt limit . -37-