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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 C. Participants As of the actuarial valuation dated January 1, 2014, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 13 Disabled police and firefighters 1 Active Employees 146 Total 160 D. Funding Policy The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-go basis. The City Council may change the funding policy at any time. E. Annual OPEB Cost and Net OPEB Obligation The City’s annual other post-employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2016, was calculated as follows: Annual required contribution 221,969$ Interest on OPEB obligation 45,325 Adjustment to annual required contribution (64,306) Annual OPEB cost 202,988 Contributions made (98,053) Increase (decrease) in net OPEB obligation 104,935 Net OPEB obligation be ginning of year 1,007,223 Net OPEB obligation end of year 1,112,158$ For the governmental activities, other post-employment benefits are generally liquidated through the general fund. The City first had an actuarial valuation performed for the plan as of January 1, 2014 to determine the funded status of the plan as of that date as well as the employer’s annual required contribution (ARC). As of December 31, 2016, the City’s annual OPEB cost (expense) is $202,988. The 75 Item 8: Attachment D