Laserfiche WebLink
CITY OF ROSEVILLE, MINNESOTA <br />NOTES TO FINANClAL 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 (ar 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 <br />Interest on OPEB obligation <br />Adjustment to annual required contribution <br />Annual OPEB cost <br />Contributions made <br />Increase (decrease) in net OPEB obligation <br />Net OPEB obligation begulning ofyear <br />Net OPEB obligation end ofyear <br />$ 221,969 <br />33,450 <br />(46,565) <br />208,854 <br />(66,169) <br />142,685 <br />743,327 <br />$ 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 $208,854. The <br />City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net <br />OPEB obligation for 2014 was as follows: <br />Fiscal <br />Year Ended <br />2009 <br />2010 <br />2011 <br />2012 <br />2013 <br />2014 <br />Annual <br />OPEB <br />Cost <br />$ 234,937 <br />232,654 <br />215,574 <br />213,503 <br />210,809 <br />208,854 <br />Employer <br />C ontnbutions <br />$ 119,317 <br />125,980 <br />101,582 <br />68,009 <br />77,705 <br />66,169 <br />.: <br />Percentage <br />of Annual OPEB <br />Cost Contributed <br />50.8% <br />54.1 % <br />47.1 % <br />31.9% <br />36.9% <br />31.7% <br />Net <br />OPEB <br />Obligation <br />$ 244,063 <br />350,737 <br />464,729 <br />610,223 <br />743,327 <br />886,012 <br />