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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2015 <br /> <br /> <br /> <br />E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION <br /> <br />The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual <br />required contribution (ARC) of the employer, an amount actuarially determined in accordance with the <br />parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an <br />ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial <br />liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of <br />December 31, 2015, was calculated as follows: <br /> <br />Annual required contribution (ARC)$107,192 <br />Interest on net OPEB obligation 22,937 <br />Adjustment to ARC (19,243) <br />Annual OPEB cost 110,886 <br />Contributions made during the year (19,485) <br />Increase (decrease) in net OPEB obligation 91,401 <br />Net OPEB obligation - beginning of year 509,707 <br />Net OPEB obligation - end of year $601,108 <br /> <br />For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. <br /> <br />The City had an actuarial valuation performed for the plan as of January 1, 2014 to determine the <br />funded status of the plan as of that date as well as the employer’s annual required contribution (ARC) <br />for the fiscal year ended December 31, 2015. The City’s annual OPEB cost, the percentage of annual <br />OPEB cost contributed to the plan and the net OPEB obligation for 2013, 2014, and 2015 was as <br />follows: <br /> <br />Percentage of <br />Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB <br />Ended Cost Contributions Contributed Obligation <br />December 31, 2013 $102,892 $17,962 17% $416,570 <br />December 31, 2014 106,523 13,386 13% 509,707 <br />December 31, 2015 110,886 19,485 18% 601,108 <br /> <br />F. FUNDED STATUS AND FUNDING PROGRESS <br /> <br />The City currently has no assets that have been irrevocably deposited in a trust for future health <br />benefits; therefore, the actuarial value of assets is zero. The funded status of the plan was as follows: <br /> <br />Actuarial Unfunded Actuarial UAAL as a <br />Actuarial Actuarial Accrued Accrued Funded Covered Percentage of <br />Valuation Value of Assets Liability (AAL)*Liability (UAAL) Ratio Payroll Covered Payroll <br />Date (a)(b)(b-a)(a/b)(c) ( (b-a) / c) <br />January 1, 2014 $ - $869,401 $869,401 0.00% $3,834,128 22.68% <br />*Using the Projected Unit Credit Actuarial cost method. <br /> <br />79