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CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2016 <br />NOTE 14 – OTHER POST EMPLOYMENT BENEFITS (Continued) <br />In the June 30, 2015 actuarial valuation, the entry age normal actuarial cost method was used. The <br />actuarial assumptions include 5.5% investment rate of return. Assets in the plan are invested in a <br />moderately conservative portfolio that will provide current income with capital appreciation as a <br />secondary objective. A 3.0% general rate of inflation was used, as well as 3.3% aggregate payroll <br />increases. <br />The unfunded actuarial accrued liability (UAAL) is being amortized as a level percentage of projected <br />payroll over a 25 year closed amortization period. There is no assumed postretirement benefit increase. <br />Healthcare costs trends utilized actual premium rates for 2015. Future years were reduced to <br />an ultimate rate 5% for both HMO and PPO plans by 2019. <br />The CPI was assumed to be a constant at 3% per year. <br />Assets in the plan will be invested in a moderately conservative portfolio that will provide <br />current income with capital appreciation as a secondary objective. <br />5.5% Investment rate of return (net of administrative expenses). <br />NOTE 15 – JOINTLY GOVERNED ORGANIZATIONS <br />The City of San Leandro participates in the East Bay Dischargers Authority established on February 15, <br />1974. The Agency Members of the Joint Powers are the City of Hayward, City of San Leandro, Oro <br />Loma Sanitary District, Castro Valley Sanitary District, and Union Sanity District. The authority has the <br />powers to plan for, acquire, construct, manage, maintain, operate, and control facilities for the collection, <br />transmission, treatment, reclamation, sale and disposal of waste water. No debt, liability, or obligation of <br />the Authority shall constitute a debt, liability or obligation of any Agency. <br />The Authority is governed by the East Bay Dischargers Commission (Commission). The Commission <br />consists of five members, one from each Agency. The ownership of the Joint Facilities is as follows: 18.6 <br />%, City of San Leandro; 29.7% Oro Loma/Castro Valley; 33.0% City of Hayward; and 18.7% Union <br />Sanitary District. The City’s shares of the expenses are recorded as expenses of the Water Pollution <br />Control Fund. <br />NOTE 16 – SUCCESSOR AGENCY ACTIVITIES <br />A. Cash and Investments <br />Cash and Investments at June 30, 2016, consisted of the following: <br />Statement of net assets: <br />Cash and Investments 3,411,732$ <br />Cash and Investments held by trustee 4,503,777 <br />Total cash and investments 10,214,824$ <br />The Successor Agency pools its cash and investment with the City in order to achieve a higher return on <br />investment. Certain restricted funds, which are held and invested by independent custodians through <br />contractual agreements, are not pooled. These restricted funds include cash with fiscal agents. <br />82