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CITY OF ARDEN HILLS, MINNESOTA NOTES TO TIlE FINANCIAL STATEMENTS DECEMBER 31 .Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED FT ~ "'f-11",,-~- Increment District No, 2 M's, 469 Redevelopment ~'ax Increment District No.3 M.S,469 Housing Authorizing law Type of district Year established Duration of district Tax capacity Original Current 1989 1993 25 years 15 years $ 25,135 $ 1,758 461,116 48,599 Captured - retained Total General Obligatiou Tax Increment Bonds and Notes issued Amounts redeemed $ 435,981 $ 46.841 $ 3,100,000 705,000 $ Outstanding at December 31, 2005 $ 2395.000 $ .Note 4: DEFINED BENEFIT PENSION PLAN - STATEWIDE A. Plan Description AU fuB-rime and certain part-time employees oftbe City are covered by defined benefit plans ad..--ninistered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), wbich is a cost-sharing, multiple-employer retirement plan. This plan is established aud adrninistered 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 Secunty 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 Minnesota statute, and vest after three years of credited SCJ\licc. The dermed 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 ofa step-rate benefit accrual fomm1a (Mcthod I) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each oftbe 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 of average 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 all PERF 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 memhers seeking early retirement. -36-