2002-08-12 CC Worksession - Laserfiche WebLink

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CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS. CONTINUED G. Fund Equity Reservations and Designations The components of fund equity are described in Note 1. Certain reservations and designations have been made in the following funds: Reserved Pumose Amount Enterprise Fund Sewer Governmental Funds General Fund Debt Service Funds Senior housing project commitment $ 7163] Prepaid items Debt service on bonds issued $ 273 1.410.643 $ ] 410.916 Total Unreserved. Designated Governmental Funds General Working capital $ 712 807 H. Contributed Capital The chaoges in the City's contributed capita! accounts for its proprietary funds were as follows: Sources Enterorise Funds Water Sewer Total $ 627,972 $ 790,037 $ ],4]8,009 233,063 3]5,861 548,924 09.045 ) (20.377) (39.422 ) $ 84] 990 $ ] 085521 $ ] 927.511 Beginning balance, contributed capital Sources: Fixed assets contributed by 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 ofMinaesota (PERA). PERA administers the Public Employees Retirement Fund (pERF), which is a cost.sharing, multiple-employer retirement plan. The 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], the annnity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first] 0 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is ].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. -19-