Annual Financial Report 12/31/1990

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Page 16 of 23 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RETIREMENT - MULTIPLE EMPLOYER PERS (Continued) Changes in Actuarial Methods and Benefit Provision& For the fiscal year 1990 actuarial valuat ion, the PERA Board of Trustees approved the use of new withdrawal rates. The change was made to reduce, if not eliminate, the series of large, annually recurring actuarial losses in the last few years due to lower than expected terminations. With the adoption of new withdrawal rates, the pension benefit obligation increased $59,942,000 in the PERF and $6,978,000 in the PEPFF. Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1990. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. Related Party Investments As of June 30, 1990, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. DESIGNATIONS AND RESERVATIONS OF FUND EQUITY Major fund equity designations at December 31, 1990 and 1989 are as follows: December 31, 1990 1989 General Fund: Reserve for prepaid items $70,667 Designated for general contingencies 217,151 Designated for cash flow reserve 824,523 Designated for Installment Purchase Contract 57,283 $53,290 Debt Service Funds: Reserved for debt retirement 2,784,745 2,302,412 Capital Projects Funds: Designated for capital improvements 3,900,882 2,228,693 Designated for committed contracts 151,732 213,594 Designated for equipment acquisition 164,343 158,663 Designated for park improvements 188,932 201,209 Totals $8,360,258 _ $5,157,861