Laserfiche WebLink
City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2013 <br />NOTE 15 — OTHER POST EMPLOYMENT BENEFITS (Continued) <br />B. Funding Policy <br />Annual required contributions (ARC) are based upon actuarial valuations. The contribution requirements <br />of the ARC are established and may be amended by the City Council. Plan members do not make <br />contributions to the plan; the plan is funded entirely by the employer contributions. <br />The City's annual OPEB cost is calculated based upon the ARC, an amount actuarially determined in <br />accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, <br />if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded <br />actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table <br />shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the <br />plan, and changes in the City's net OPEB obligation: <br />Annual required contribution <br />$1,448,000 <br />Interest on net OPEB obligation <br />84,000 <br />Adjustment to the annual required contribution <br />(129,000) <br />Annual OPEB cost <br />1,403,000 <br />Less: Contributions made <br />(913,026) <br />Increase in net OPEB obligation <br />489,974 <br />NET OPEB obligation - beginning year <br />1,639,025 <br />NET OPEB obligation - end of year <br />$2,128,999 <br />The City's annual OPEB cost, equal to the ARC, the percentage of OPEB cost contributed to the plan and <br />the net OPEB obligation for 2013 and the preceding years were as follows: <br />Fiscal Year <br />Ended June Annual OPEB Contributions <br />30, Cost Made <br />2009 <br />$1,791,000 <br />$1,411,315 <br />2010 <br />1,870,000 <br />1,359,742 <br />2011 <br />1,387,000 <br />920,415 <br />2012 <br />1,452,000 <br />1,169,503 <br />2013 <br />1,403,000 <br />913,026 <br />Total Net OPEB Obligation <br />77 <br />Percentage of <br />Annual OPEB Cost <br />Contributed <br />79% <br />73% <br />66% <br />81% <br />65% <br />Net OPEB <br />Obligation <br />$379,685 <br />510,258 <br />466,585 <br />282,497 <br />489,974 <br />$2,128,999 <br />