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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2012, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City Disabled police and firefighters Active employees 56 Total 59 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you- go basis. The City Council may change the funding policy at any time. E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City's annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2013, was calculated as follows: Annual required contribution (ARC) $100,767 Interest on net OPEB obligation 14,924 Adjustment to ARC (12,799) Annual OPEB cost 102,892 Contributions made during the year (17,962) Increase (decrease) in net OPEB obligation 84,930 Net OPEB obligation - beginning of year 331,640 Net OPEB obligation - end of year $416,570 For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. The City had an actuarial valuation performed for the plan as of January 1, 2012 to determine the funded status of the plan as of that date as well as the employer's annual required contribution (ARC) for the fiscal year ended December 31, 2013. The City's annual OPEB cost, the percentage of annual 75