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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 CURRENT REFUNDING On July 24, 2014, the City issued the $3,665,000 General Obligation Tax Increment Revenue Refunding Bonds, Series 2014B with an average interest rate of 3.02% to refund the 2015 through 2031 maturities aggregating $4,045,000 in principal amount of the City's $4,640,000 General Obligation Tax Increment Revenue Bonds, Series 2007 with an average interest rate of 4.98%, dated April 17, 2007. Net proceeds of $3,671,077 along with $379,750 of City funds were used to retire all outstanding principal of the refunded bonds on August 1, 2014. The City refunded the bonds to reduce its total debt service payments over the seventeen years by $1,060,281 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $855,598. Note 7 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the internet at www.moera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. 68