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Other Post - Employment Benefits
<br />The Governmental Accounting Standards Board (GASB) has issued Statement No. 45,
<br />Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
<br />Pensions (GASB 45), which addresses how state and local governments must account for and
<br />report their obligations related to post - employment healthcare and other non - pension benefits
<br />(referred to as Other Post Employment Benefits or "OPEB "). GASB 45 requires that local
<br />governments account for and report the annual cost of OPEB and the outstanding obligations
<br />and commitments related to OPEB in essentially the same manner as they currently do for
<br />pensions.
<br />The City of Lino Lakes does not offer post - employment or post- retirement benefits to City
<br />employees, except for public safety employee or families of public safety employees disabled or
<br />killed in the line of duty, as required by Minnesota Statutes. Employees leaving employment
<br />may continue insurance coverage under COBRA, and early retirees may continue insurance
<br />coverage, per Minnesota Statues, at their own expense, until age 65. Therefore, the City's
<br />greatest liability under GASB 45 would come through an implicit rate subsidy. The implicit rate
<br />subsidy is the additional cost of health insurance to current employees and the City as a result
<br />of the higher cost of providing health insurance to retirees. It is the City's intention to quantify
<br />this liability through actuarial estimate or another acceptable method and to disclose it in the
<br />notes to the financial statements by the deadline date for implementation.
<br />General Fund Budget
<br />Adopted 2006 Adopted 2007
<br />Budget Budget
<br />Revenues:
<br />Property Taxes $6,757,626 $7,298,995
<br />Licenses and permits 866,600 827,550
<br />Intergovernmental 365,000 695,000
<br />Charges for services 20,000 22,500
<br />Public Safety 108,000 156,000
<br />Fines and forfeits 110,000 110,000
<br />Investment earnings 80,000 150,000
<br />Administrative Charges 70,000 70,000
<br />Miscellaneous 230,000 279,200
<br />Total General Fund Revenues $8 607,226 $9,609,245
<br />Expenditures:
<br />Administration $1,325,333 $1,311,470
<br />Community Development 1,094,731 1,305,018
<br />Public Safety 3,350,148 3,627,635
<br />Public Services 2,250,404 2,575,122
<br />Contingency /Other 586,610 790,000
<br />Total General Fund Expenditures $8,607,226 $9,609,245
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