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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2016
<br />
<br />
<br />NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (Continued)
<br />
<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 asset for 2016 and the preceding years were as follows:
<br />
<br />Fiscal Year
<br />Ended June
<br />30,
<br />Annual OPEB
<br />Cost
<br />Contributions
<br />Made
<br />Percentage of
<br />Annual OPEB Cost
<br />Contributed
<br />Net OPEB
<br />Obligation
<br />(Asset)
<br />2009 1,791,000$ 1,411,315$ 79%379,685$
<br />2010 1,870,000 1,359,742 73%510,258
<br />2011 1,387,000 920,415 66%466,585
<br />2012 1,452,000 1,169,503 81%282,497
<br />2013 1,403,000 913,026 65%489,974
<br />2014 1,471,000 1,980,000 135%(509,000)
<br />2015 1,378,000 2,575,668 187%(1,197,668)
<br />2016 960,480 2,616,649 272%(1,656,169)
<br />Total Net OPEB (Asset)(1,233,838)$
<br />
<br />C. Plan Funded Status Information
<br />
<br />As of June 30, 2015, the latest valuation date, the funded status of the plan, was as follows:
<br />
<br />
<br />Actuarial accrued liability (AAL)15,577,516$
<br />Actuarial value of plan assets 3,502,137
<br />Unfunded actuarial accrued liability (UAAL)12,075,379
<br />Funded ratio (actuarial value of plan assets/AAL)22%
<br />Covered payroll (active plan members)28,353,329
<br />UAAL as percentage of covered payroll 42.6%
<br />Actuarial Valuations
<br />
<br />Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
<br />assumptions about the probability of occurrence of events far into the future. Examples include
<br />assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
<br />regarding the funded status of the plan and the annual requires contributions of the employer are subject
<br />to continual revision as actual results are compared with past expectations and new estimates are made
<br />about the future. The schedule of funding progress, presented as required supplementary information
<br />following the notes to the financial statements, present multi-year trend information that shows whether
<br />the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
<br />liabilities for benefits.
<br />
<br />D. Actuarial Methods and Assumptions
<br />
<br />Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as
<br />understood by the employer and plan members) and include the types of benefits provided at the time of
<br />each valuation and the historical pattern of sharing benefit costs between the employer and the plan
<br />members to the point. The methods assumptions used include techniques that are designed to reduce the
<br />effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
<br />with the long-term perspective of the calculations.
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