Reso 2011-053 Attachment - Laserfiche WebLink

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City of San Leandro Notes to Basic Financial Statements For the year ended June 30, 2010 NOTE 13 - COMMITMENTS AND CONTINGENCIES, Continued D. Others The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act of 1984 and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City is a defendant in a number of lawsuits which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. As discussed in Note 11 to the Financial Statement, the City maintains a Self Insurance Fund which has reserves of $2.OM at the end of June 30, 2010. These reserves are available to satisfy any future liability. NOTE 14 - EMPLOYEE RETIREMENT PLANS IA. California Public Employees' Retirement System Plan Description - The City of San Leandro Miscellaneous Plan is an agent multiple -employer public employee defined benefit pension plan. Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. The City of San Leandro Safety Plan is in a cost -sharing multiple -employer plan is a single plan with pooling (cost - sharing) arrangements for the participating employers. All risks, rewards, and costs, including benefit costs, are shared and are not attributed individually to the employers. A single actuarial valuation covers all plan members and the same contribution rates) applies for each employer. A menu of benefit provisions and other requirements are established by State statutes within the Public Employee's Retirement Law. The City of San Leandro selects optional benefit provisions from the benefit menu by contract with Ca1PERS and adopts those benefits through local resolutions. The City of San Leandro participates in separate Safety and Miscellaneous (Police, Firefighters, Fire Administrators, and Miscellaneous) Employee Plans. Funding Policy - Active plan members are required by state statute to contribute 8% for miscellaneous and 9% for safety employees of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account, which amounted to $2,692,173 for the year ended June 30, 2010. The City as employer is required to contribute an actuarially determined payment that is reflected as a percentage of annual covered payrolls for miscellaneous and safety employees. 77