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CITY OF ROSEVILLE,MINNESOTA <br /> NOTES TO FINANCIAL STATEMENTS <br /> December 31, 2014 <br /> D. Funding Policy <br /> The additional cost of using a blended rate for actives and retirees is currently funded on a <br /> pay-as-you-go basis. The City Council may change the funding policy at any time. <br /> E. Annual OPEB Cost and Net OPEB Obligation <br /> The City's annual other post-employment benefit(OPEB) cost is calculated based on the annual <br /> required contribution(ARC) of the employer, an amount actuarially determined in accordance <br /> with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if <br /> paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded <br /> actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB <br /> obligation as of December 31, 2014, was calculated as follows: <br /> Annual required contribution $221,969 <br /> Interest on OPEB obligation 33,450 <br /> Adjustment to annual required contribution (46,565) <br /> Annual OPEB cost 208,854 <br /> Contributions made (66,169) <br /> Increase (decrease) in net OPEB obligation 142,685 <br /> Net OPEB obligation beginning of year 743,327 <br /> Net OPEB obligation end of year $886,012 <br /> For the governmental activities, other post-employment benefits are generally liquidated through <br /> the general fund. <br /> The City first had an actuarial valuation performed for the plan as of January 1, 2014 to determine <br /> the funded status of the plan as of that date as well as the employer's annual required contribution <br /> (ARC). As of December 31, 2014, the City's annual OPEB cost (expense) is $208,854. The <br /> City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net <br /> OPEB obligation for 2014 was as follows: <br /> Annual Percentage Net <br /> Fiscal OPEB Employer of Annual OPEB OPEB <br /> Year Ended Cost Contributions Cost Contributed Obligation <br /> 2009 $234,937 $ 119,317 50.8% $244,063 <br /> 2010 232,654 125,980 54.1% 350,737 <br /> 2011 215,574 101,582 47.1% 464,729 <br /> 2012 213,503 68,009 31.9% 610,223 <br /> 2013 210,809 77,705 36.9% 743,327 <br /> 2014 208,854 66,169 31.7% 886,012 <br /> 68 <br />