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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31. 2009 The City first had an actuarial valuation performed for the plan as of January 1, 2008 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, 2009. The City's annual OPEB cost (expense) of $116,485 was equal to the ARC for the fiscal year, as the transition liability was set at zero as of December 31, 2008. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2009 was as follows: Fiscal Year Ended Percentage of Annual OPEB Employer Annual OPEB Cost Net OPEB Cost Contributions Contributed Obligation December 31, 2009 $116,485 $27,350 23.0% $89,135 F. FUNDED STATUS AND FUNDING PROGRESS The City currently has no assets that have been irrevocably deposited in a trust for future health benefits; therefore, the actuarial value of assets is zero. The funded status of the plan was as follows: Unfunded Actuarial Actuarial URAL as a Actuaiial Actuarial Accrued Accrued Funded Covered Percentage of Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll Date (a) (b) (b -a) (a/b) (c) ( (b -a) / c) January 1, 2009 $0 $1,160,956 $1,160956 0.00% $3,383,647 34.00% *Using the Projected Uou Credit Actuarial cost method. Note, the first OPEB actuarial valuation was conducted as of January I, 2008. There is no data available prior to the first valuation. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared will) past expectations and new estimates are )made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend infoinnation that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as undeistood by the employer and plan members) and include the types of benefits provided at the tine Of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are 72