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12/08/2008 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING MONDAY, DECEMBER 8, 2008 5:30 P.M. EAGAN ROOM-EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF THE AGENDA Q I II. 2009 E-TV BUDGET f ? ~ III. PRESENTATION ON EAGAN RAIN GARDENS g IV. FUNDING OF OTHER POST EMPLOYMENT BENEFITS (OPEB) V. OTHER BUSINESS VI. VISITORS TO BE HEARD VII. ADJOURNMENT Agenda Memo Special City Council Meeting Monday, December 8, 2008 II. 2009 E-TV BUDGET ACTION TO BE CONSIDERED: Review 2009 Eagan Television budget and direct formal action to the December 16, 2008 Regular City Council Meeting FACTS: • On May 13, 2008, the Eagan City Council gave direction on a desired location for anew community television studio because its joint lease with the City of Burnsville on the previous studio was set to expire at the end of December, 2008. • The City of Burnsville elected to open its own studio at Burnsville High School. • On July 15, 2008 the Eagan City Council approved a Memorandum of Understanding (MOU) with Thomson Reuters Corporation to build a new Eagan Television (E-TV) public access studio on their corporate campus and a separate MOU with Burnsville to govern the sharing of a mobile production van, and the division of equipment from the old facility. • The previous joint operation had 8 FTE positions. • On November 18, 2008 the Eagan City Council authorized the hiring of four full- time positions. • E-TV funding is not from property taxes. Rather, operations are paid for by a combination of franchise fees paid for by Comcast for using the public rights of way and nominal PEG fees paid for by subscribers to support public access facilities which carry community programming, government meetings and local educational programming. • In the previous combined operation the total budget was $980,731. The Eagan- only requested budget is $443,200 and that includes at approximately $20,000 in one-time start-up costs. • Communications Director Garrison and E-TV Supervisor Jeff Ongstad will present the proposed budget and answer any questions the City Council may have. ATTACHMENTS: • 2009 Proposed E-TV Budget on pages ~ to J r'~ ~. ~~~_ ~ City o~ ~a~a~ 2009 Proposed Budget Operating Budget E-TV Responsible Manager: Tom Garrison, Director of Communications PURPOSE He DESCRIPTION Eagan Television (E-TV) creates public, educational, and government cable TV programming through a partnership of volunteers and professional staff. E-TV also provides television production equipment facilities, and channel time to televise locally-produced programming. It is cable programming by the community, for the community. PERFORMANCE INDICATORS 2009 Goals for Output: • Host a Grand Opening and at least four open houses targeted to current and potential users and volunteers of~ Eagan Television. • Establish a baseline of current Eagan users and increase its volunteer base at least 15%. • Double the number of outside paying clients from 2008 • Launch a new E-TV channel aimed at youth and community-driven programming and introduce at least one new show with real time interactive participation. • Launch a new E-TV Web site and increase online Web-streamed video (on demand) and increase community produced and submitted video content. .., ~ ~..";' ~ ~1~~ 0~ ~8~~11 2009 Proposed Budget Operating Budget Expend_itur__ es-b~Category ~~~~ Parts and `' ~~'~ Supplies ~ ~, 6% f t r Personal I l Services and Services Capital Other 73% Outlay Charges 1% 20% E-TV Responsible Manager: Tom Garrison, Director of Communications HIGHLIGHTS & CHANGES Overview: The Eagan Television (E-TV) comes before the City council for the first time following the decision by the cities of Burnsville and Eagan to move in different directions and suspend the operation of the former Burnsville Eagan Community Television effective December 19, 2008. Effective December 15, 2008 Eagan assumes responsibility for programming its own channels from a new master control at Eagan City Hall and a new public access studio located on the Thomson Reuters corporate campus. The E-TV budget is funded- by non-taxpayer dollars. The sources of funding are franchise fees paid by Comcast and a small fee on local subscriber bills which supports capital equipment for Public, Educational and Governmental (PEG) public access facilities. The 2009 E-TV budget request is $443,200. The budget has been carefully reviewed by Director Garrison and the E-TV Supervisor, but also recognizes that there may be some unknown start-up costs in the first year of operation separate from Burnsville and new opportunities for efficiencies in collaboration with its new partner. Highlight 1: Rent and Utilities Financial Impact: $12,000 Service Level Impact: Previously in the former BECT facility Eagan's share of rent was $65,000 and share of utilities was $9,000. In the new partnership with Thomson Reuters, Eagan will pay $12,000 in utilities and no rent. However, in lieu of that arrangement, Eagan will provide a negotiated number of hours of video services. The savings allow Eagan to provide significantly more direct dollars to public access operations in the new E-TV studio. Highliqht 2: Start-Up Costs Financial Impact: $20,000 Service Level Impact: Approximately $20,000 in start-up or one-time costs are included in this budget for such things as a new E-TV Web site, E-TV branded clothing for personnel, support vehicle decals, required contributions for maintaining the mobile studio vehicle still shared with Burnsville, grand opening ads, new letterhead, and a network switch required to operate the studio. Highliqht 3: E-TV personnel Financial Impact: $320,900 Service Level Impact: Nearly 73% of the E-TV budget represents personnel and benefit costs for the four E-TV full-time staff, and hourly pay for technicians who help cablecast and Web stream all of Eagan's local government meetings Highliqht 4: Computer Software Financial Impact: $8,500 Service Level Impact: New studio equipment will be furnished with state-of-the-art graphics software and a public domain music library to facilitate quality productions and outside revenue generating opportunities. ~, ~:`~;:k.. ~ . :~~ ~l~~ 0~~0~10l1 2009 Proposed Budget Operating Budget E-TV Responsible Manager: Tom Garrison, Director of Communications REVENUE SUMMARY Actual ....... Actual Budget Budget ....._ iRevenue 2006 2007 2008 2009 PEG fees ~ $ 391,000 City contribution -from Cable Franchise Fees fund _ 315,900. 'Class fees . . 500 .. . Dub/Rental/Paid production 10,000 Community programming sponsorship 6,700 ': `Total Revenues -all sources $ 724,100 Less: PEG fees available for capital equipment (280,900)' '.Total Operating Revenues $ 443,200 EXPENDITURE SUMMARY Actual Actual Budget Budget -.Expenditure 2006 2007 2008 2009 Personal Services $ 320,900 Parts and Supplies 25,700 Services and Other Charges 90,200 Capital Outlay 6,400 Total $ - $ - $ - $ 443,200 POSITION INVENTORY Personnel 2006 2007 2008 2009 Hours Studio Supervisor - - - 1 2,080 Client Services Coordinator - - - 1 2,080 Govmt Prog Coordinator - - - 1 2,080 Field Coord/Video Specialist - - - 1 2,080 Total - - - 4 8,320 ~. ,, `~ ~~~ City of Ba~a~t 2009 Proposed Budget Operating Budget E-TV Responsible Manager: Tom Garrison, Director of Communications LINE ITEM DETAIL 4cct PERSONAL SERVICES 6110 SALARIES AND WAGES-REGULAR 6112 OVERTIME -REGULAR 6130 SALARIES AND WAGES-TEMPORARY 6142 PERA-COORDINATED 6144 FICA 6151 HEALTH INSURANCE/VEBA 6152 LIFE 6154 DISABILITY -LONG TERM 6155 WORKERS COMPENSATION TOTAL PERSONAL SERVICES PARTS & SUPPLIES 6210 OFFICE SUPPLIES 6212 OFFICE SMALL EQUIPMENT 6215 REFERENCE MATERIALS 6220 OPERATING SUPPLIES -GENERAL 6224 CLOTHING/PERSONAL EQUIPMENT 6231 MOBILE EQUIPMENT REPAIR -PARTS 6232 SMALL EQUIPMENT REPAIR -PARTS 6235 FUEL, LUBRICANTS, ADDITIVES 6270 COMPUTER SOFTWARE TOTAL PARTS & SUPPLIES SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES-GENERAL 6346 POSTAGE 6347 TELEPHONE SERVICE & LINE CHARGES 6353 PERSONAL AUTO/PARKING 6355 CELLULAR TELEPHONE SERVICE 6357 GENERAL ADVERTISING 6359 LEGAL NOTICE PUBLICATION 6370 GENERAL PRINTING AND BINDING 6385 INSURANCE 6405 ELECTRICITY 6425 MOBILE EQUIPMENT REPAIR -LABOR 6426 SMALL EQUIPMENT REPAIR -LABOR 6457 MACHINERY & EQUIPMENT RENTAL 6475 MISCELLANEOUS 6476 CONFERENCES AND SCHOOLS 6477 LOCAL MEETING EXPENSES 6479 DUES AND SUBSCRIPTIONS 6535 OTHER CONTRACTUAL SERVICES 6569 MAINTENANCE CONTRACTS OTHER SERVICES AND CHARGES CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT 6660 OFFICE FURNISHINGS/EQUIPMENT CAPITAL OUTLAY TOTAL E-TV Actual Actual Budget Budget 2006 2007 2008 2009 $ - $ - $ - $ 235,400 2, 000 14,000 15, 800 17,900 34, 600 1, 200 320, 900 1, 300 500 300 3, 500 1, 200 4, 000 5, 000 1,400 8, 500 25,700 9,200 800 200 .1,600 2,700 2,200 300 3,200 7,300 12, 000 2, 500 5,000 2,000 2,400 5, 300 1, 000 4,700 5,400 22,400 $ 90,200 $ 5,400 1, 000 6,400 $ - $ - $ - $ 443,200 #DIV/0! Agenda Memo December 8, 2008 Special City Council meeting III. WATER QUALITY CIP UPDATE RAIN GARDENS & MORE DIRECTION TO BE CONSH)ERED: Receive update on implementation of Water Quality Capital Improvement Plan for 2008 and proposed future enhancements. FACTS: • On June 19, 2007, the City Council approved the 2008-2012 Capital Improvement Plan (CIP) for Public Works Infrastructure, Part III. This was the first CIP that included water quality improvements as part of the five year program that typically addresses street and utility improvements. • Accordingly, 2008 was the first year of implementation of a variety of capital improvements focusing on water quality enhancements benefitting the ponds and lakes throughout the City. • Contracts 08-03 and 08-04 incorporated 15 street revitalization projects constructed this past summer and included the installation of 10 rain gardens as water quality components of the CIP. • An additional 11 rain gardens were constructed in the neighborhood adjacent to Coventry Parkway, east of Dodd Road, this past fall. The neighborhood residents were labeled as Community Champions in the 2008 State of the City in recognition of their efforts to clean up their neighborhood pond with their personal efforts and finances. The City Council approved re-naming City Pond JP-23 to "Coventry Pond" at the request of said residents. • The use of rain gardens was initiated as a Water Quality enhancement to assist the process of meeting the Non-Degradation standards mandated by the Minnesota Pollution Control Agency (MPCA) for removal of Phosphorus and Total Suspended Solids while reducing the total volume of storm water discharged to City lakes and ultimately the Minnesota River. • The rain gardens constructed to date were selected for their higher potential benefit to the storm water system, mainly due to soil conditions and direct drainage areas, and the willingness of the property owners. The locations of the 21 rain gardens are indicated on the enclosed map (page ~). • There is a steady annual increase of rain gardens indicated in the current Water Quality Capital Improvement Program (CIP), 2009-2013. The CIP indicates an annual increase of about a dozen gardens. • The CIP includes additional special projects related to Total Maximum Daily Load (TMDL) reduction projects for MPCA designated lakes such as Fish Lake and Schwanz Lake, as well as similar enhancements to LeMay Lake. • Staff already has resident consensus on a dozen rain gardens to be constructed in 2009 and is preparing a preliminary study for public rain gardens on Cliff Lake Road. • The design consultant for the rain gardens installed to date, Barr Engineering Company, will provide the City Council with a presentation of the completed rain gardens, including the public relations experience, and update the City Council on future opportunities within the City of Eagan. ATTACHMENTS: • Rain Garden Location Map, page City of Eagan Rain Garden Interest Locations City of Eagan - -® ii/ I-asa ~ _ _ _. - `~ ~ ~ Legend ~~~~ ~ - \ , ~. ' 2008 Rain Gardens I' N~I'1- s, 0 P ~P,P~, DPW >~ <P~~ ~~~ S II LONE OAI<RD. _ A ^ \o P Mof Eagan ~ r ~ , 8 D 6H F L\E 9'ntere ztmxtl rangaNen ~ ` \ - ~ x Z ,. ~ H(~ J ~ \ O Z ~i ~ A ~ G. ~ ~ ~~ \\ , ~ _.. \ I ~ -__._... _ ~ ~ YANKEE DOODLE RD. - ,a: o,F - L : k , . s s Y -°~ L~ ~ - - i 'vim. n _~ Agenda Information Memo December 8, 2008 Special Eagan City Council Meeting TI N T 1 To review background information, public policy considerations, and staff funding recommendations and direct formal action to the December 16, 2003 regular City Council Meeting. i4 T Beginning with the audit for the year ended December 31, 2003, and continuing with all subsequent audits the City's independent auditors have been informing the City Council and staff about the Government Accounting Standard Board's (GASB) work on development and implementation of new accounting standards related to the reporting of Other Post Employment Benefits (OPEB). In working with the auditors and through various professional organizations and literature staff has continued to learn more about the options to meet the requirements and about the implications for the presentation of the City's financial position in the annual financial reports. In late 2005 staff was directed by the City Council to review debt service and capital needs for possible use of fund balance and to provide options to the Council in increments of the available fund balance. At a Special meeting on February 13, 2006 the Council directed that the proposed General Fund fund balance policy and authorization to transfer $1,575,000 to the Benefit Accrual Fund to provide funding toward the City's Post Retirement Health Insurance Liability be placed on the Consent Agenda for the February 21, 2006 Regular City Council meeting. • Public awareness ofi OPEB liabilities has continued to increase across the country as governmental jurisdictions continue their review and implementation of the new accounting standards. The City Council approved negotiations and the resulting contracts to eliminate the benefit for Eagan Police Officers hired after January 1, 2005. State action effectively eliminated the program for all other Eagan employees first hired after July 1, 1939. Gonsequently, the Eagan liability changes due to actuarial assumptions and premium cost and cost sharing and not through an increased number of participants. 8 • In July of 2008 the Council approved the summary restatement of Post Retirement Health Insurance Benefits and implementation of same for City of Eagan Employees. That action made no policy changes, but brought all prior approvals and actions into one summary document allowing for better understanding of what is in place and for more efficient implementation. • The first of the required biennial actuarial valuations to determine liability and funding obligations has been completed with a valuation date of January 1, 2007. The valuation numbers were subsequently updated to provide funding requirements as of December 31, 2008. State law was changed in 2008 allowing governmental subdivisions to establish trusts providing additional benefit to advance funding of the Actuarial Accrued Liability, thereby reducing annual contribution requirements. Staff has reviewed the options available to comply with the new standards, prepared public policy questions and a proposed funding plan for consideration by the City Council. Staff recommendations are intended to be consistent with previous direction and actions of the City Council in dealing with these standards and with the financial management of the City. • The attached memo provides a great deal of additional information, which unfortunately might be difficult to follow without explanation. Director of Administrative Services VanOverbeke will be at the meeting on Monday to walk through the information and to respond to City Council questions. d4TTACHM NS: • Enclosed on pages ~ ~ through ~ is a copy of a memo from Director of Administrative Services VanOverbeke proving summarized background information, public policy questions, and staff funding recommendations. • Copies of the GASB 45 Actuarial Report as produced by the Stanton Group are available from the City Administrator's Office if any member of the City Council would like to review the entire document. 9 /.,~ "z s 'City of Eagan ~cmo 1°0: i inistrator He s ro : it ctor of inisr iv rvic Van ver ate: cem r , 2000 u jcct: Cher ost loymen nei ( ) un in ack round In April and July of 2004, the Governmental Accounting Standards Board (GASB) issued two statements providing guidance on financial reporting for OPEB Plans. Per the standards, the implementation date for Eagan is the year ending December 31, 2008. In general the new standards require that retiree benefits (other than pensions) such as medical, dental, vision, life, hearing, and long-term care must be funded while the employee is providing services to the employer, not at the time of retirement. Eagan's benefit has been limited to medical and preventative dental insurance and remains in effect-only until Medicare eligibility is reached. Further, the City's benefits accrue only to the former employee's period of eligibility, not extending beyond that period for the benefit of dependents. Historically, most cities have made payments for the benefit costs on a "pay-as-you-go" basis, meaning the expense was recognized when the premium payments were actually made (after retirement), not when the benefit was earned (working years). In Eagan's situation "pay-as-you-go" has worked reasonably well from a cash flow perspective per the City Council policy ofi requiring positions to remain vacant until enough payroll savings had been accumulated to fund future City premium obligations on an employee by employee basis. However, even before the implementation of these new standards, as health care costs rose over the years, the City determined that the growing future liability even on a "pay-as-you-go" basis was becoming problematic. Required vacancies combined with more and more employees reaching the eligibility age, and single incumbent positions (e.g, a payroll clerk) had the potential to cause problems with service delivery in future years. Consequently, in negotiations with the two unions in the Police Department, the benefit was eliminated for all officers hired after January 1, 2005. An additional hourly wage was added that the officers can invest in a health care savings plan to be used later to provide their own coverage. The State also changed the "Rule of 90" retirement benefit for non Police and Fire PERA members essentially meaning that no employees first hired after July 1, 1989 could meet the City's requirement for post retirement health insurance benefits, effectively ending the program for that group of !~ employees as well. Those two actions taken together effectively cap the participation in a post retirement health insurance benefit for Eagan to the number of employees who were eligible at the time of the changes. However, further complicating the situation, per the GASB standards the OPEB liability is created in two ways; first, by the employer making contributions to the premiums for retiree coverage (Eagan plan), and second, through allowing retirees to participate in the group plan even if they are paying the entire premium. The second notion creates what is known as an "implicit rate subsidy" in that participation in the group by retirees raises the group premiums for everyone because retirees are more expensive to insure. Since Minnesota requires that retirees be allowed to participate in the city group plans, every city providing medical coverage is subject to this component of the liability. r®c®ss t® Date GASB 45 requires local governments to obtain actuarial valuations for the OPEB benefits; consequently, in July of 2006 the Stanton Group was retained by the City to provide a GASB 45 Actuarial Valuation. The approach was designed to help determine the appropriate plan design, assumptions, and actuarial cost method to apply to meet the objectives of the City and to meet GASB requirements. As the City worked and negotiated to change its health/dental coverage plans for 2007 from those in place for 2006, the process of completing the actuarial study was delayed to allow more up to date information to be incorporated. The draft actuarial report was completed and reviewed in August of 2007 and the final report was completed as of January 1, 2007, although dated October 17, 2007. The Actuarial Valuation is based on numerous assumptions including: A Summary of Plan Provisions: • Eligibility Requirements • Medical Contributions • Eligibility Requirements for City Contributions o Police and Firefighters o Other Employees • Dental Contributions • Length of Coverage • Medical Benefits: Co-pay Plan • Medical Benefits: HRA High Deductible Plan Actuarial Assertions and Methods • Valuation Date The assumptions that were used in the study were basically arrived at in one of three ways: first, established actuarial standards; second, actual City experience and/or practice; and third, assumed to be the same as used by PERA in their plans. In addition to the assumptions participant data is used. This process allows for the inclusion of conservative, realistic, and generally accepted assumptions to be used as the basis for the valuation. GASB 45 allows the employer the choice among six different actuarial cost methods. The three primary methods are known as Entry Age Normal, Projected Unit Credit, and Aggregate. The other three methods are variations of the primary methods. The Stanton Actuarial dated October 17, 2007 provides January 1, 20-07 results using the three primary actuarial cost methods. In addition to the actuarial methods each of those methods as presented provides results using 4.0% and 8.5% discount rates and per cent of pay and level dollar options. The 4.0% discount rate represents no prefunding (pay-as-you-go) and is the assumed rate of return on the City's general assets. The 8.5% discount rate represents prefunding and. is the assumed rate of return on the assets in a trust In general, the different actuarial methods and the payment process allocate a portion of the actuarial present value of benefits to past service and to future service. That allocation drives funding obligations into the amortization of the unfunded liability and/or to the normal cost. Ultimately, all methods result in getting to the same point over time as the overall liability cannot change; the timing and impact of required payments change depending on the methods chosen. The City Council has previously given direction to meet the GASB requirements by funding the Unfunded Actuarial Accrued Liability to the extent possible and by meeting annual Normal Cost obligations. Therefore, staff in consultation with the Stanton consultants determined that use of the Entry Age Normal actuarial method best meets the City's objectives. In addition, using a discount rate of either 4.0% or 8.5% has a tremendous impact on the calculations and the results of the valuation study. Again, consistent with previous direction and past City practice of funding future o ~, liabilities, staff in consultation with the Stanton consultants determined that meeting the requirements to allow use of the 8.5°/® discount rate was in the City's best interest. However, the use of an 8.5% discount rate to gain the full advantage of prefunding requires the creation of an irrevocable trust and the trust must meet all the requirements of both GASB and IRS. Although some Minnesota jurisdictions had already created these trusts, it became clear that they were not authorized in Minnesota Statutes until the law was changed in the 2008 session. ~'he legislation now allows a political subdivision or other public entity that creates or has created an actuarial liability to pay postemployment benefits to employees or officers after their termination of service to establish a trust to pay those benefits. The assets of the trust may be administered by PERA, a bank, or an insurance company or agency. If PERA is chosen as the trust administrator, all money in the trust account will be invested by the State Board of Investments (SBl) per State Statutes and SBI policies and procedures. Again, given past direction and the City's overall objectives, staff has begun working with the law firm of Hitesman and Associates, P.A., specialists in benefits law, to provide the necessary consulting and for preparation of the appropriate trust documents to allow implementation of the City's plan. Since the City could not take the desired action until State Law was changed in the 2008 Session, the Valuation was updated by Stanton to advance the obligations from January 1, 2007 to January 1, 2008. The proposed funding plan outlined in the subsequent section of this memo is based on the City taking action in 2008. It is important to note that the GASB Standards require actuarial valuations at least biennially for GPEB plans such as Eagan's; therefore, the funding numbers will change as the circumstances change and the assumptions are updated: #aff uneiin~, ccon~rnene#ations To fully fund both the Actuarial Accrued Liability through December 31, 2008 ($4,766,441) and the 2008 Normal Cost ($161,591) requires assets of $4,928,032. It would also be advantageous to fund the 2009 Normal Cost of $161,591 and to make that payment into the trust at the end of 2008, raising the total to $5,089,623. Staff is recommending the following overall process: 1. Set up a trust using PERA as the Administrator and the SBI for investing the trust assets. Take the necessary steps internally to use the trust to process premium payments and to retain the necessary consulting services to meet the GASB Statement requirements. 2. Use City resources to finance the Unfunded Actuarial Accrued Liability and to pay the 2008 and 2009 Normal Costs. ~~ In general this process outlines the most fiscally conservative approach to this liability and the funding obligation and positions the City in the best possible light in regard to financial management and credit ratings. Based on this process, staff is recommending the following financing plan: Total Funding Uses: Resources: Actuarial Accrued Liability $ 4,766,441 2008 Normal Cost 161,591 2009 Normal Cost 161,591 Total $ 5,089,623 Advanced From General Fund $ 1,778,473 Benefit Accrual Fund 2,311,150 Risk Management Fund 1,000,000 $ 5,089,623 * In February of 2006 the City Council authorized the transfer of $1,575,000 from the City's General Fund to be set aside in the Benefit Accrual Fund for the purpose of being applied to the unfunded liability for postretirement benfits. Interest through 12-31-08 has been added to the original transfer amount. Both the Benefit Accrual Fund and the Risk Management Fund have been created and used over a long period of time to aggregate resources to meet funding obligations such as the postretirement benefit liability now before the City. Benefit Accrual Fund revenues are derived from direct labor charges to other City funds. All benefits are accrued and paid by the Benefit Accrual Fund. 14 Use of these funds in this manner does not jeopardize the future operations of either fund. For reference I have attached the following exhibits that provide additional background for discussion and/or demonstrate the calculations used in determining the numbers referenced in this memo: 1. Exhibit 1: Graphical representation of the various components of the actuarial valuation. 2. Exhibit 2: Numerical summary of actuarial valuation results advanced to January 1, 2008. 3. Exhibit 3: Numerical summary of actuarial valuation results by employee components at January 1, 2008. 4. Exhibit 4: Summary of Normal Costs by department. ua 1 have tried to summarize some very complicated information from a process that has been underway for over two years and has significant implications for the financial position of the City. I believe the appropriate public policy decisions and implications are included. 1 would be happy to meet and discuss the memo and to provide any additional information that might be helpful. (;' ~\~. ®_ Direct of ~~dministrative Services VanOverbeke cc: Chief Financial Officer Pepper e 1 A z 0 H~ o~ ~~ W Q ~ °z v~ 7~ G W E--~ d' b o~ ~ .o ~ U zo ~x ~~ F" ~ O C/1 ,~/ R+ o~ ~ U aQ ~ , ~ ~ ~ ~ '-' '~ ~ ~ ~ 'O-+ vi ~ ~ ~ .~ ~ P ~ b N ~ N ~ " ~ cd +~-~ O G~ ~ 'd ~' ^~ a s ~.~ ~ ~ o o ~ ~~ H~ a b e b b ~ .~ °~ ExH'. 6',t 1 ° b ~_ a~ o N p +~ 'd ~ rn N cad .~ N ~ • cV+ 'N N N v~ U ~ "d O ~ ~ N ~ ~ ~ ~ ~ ~ ~ ~ '~ ~ ~ o .~ '~ ~ N ~ ¢i ' ~ ~ ~ ~ U m U 4 AJ ~ ~ ~ Q1 +~ ~ ~ ,.a +O-~ • ~ cn ~ H ' ~ N ~ a '~ O ~+ ~~ U O ~ •~ ~ ~ ~ o ~ ~~ a~ a~ ~ H ~ ~ °J.~ H ~ ~ ~~ GJ ~ ~" ~ N °~ a~ ~ ~ U ~ a i°'+ ~ x ;~ .a~ H ~~ ~ O N .d ~ ~ .~ ~ AJ ~ ~ N ~ ~ •~ b ,b ~' p ~ .~ ~ ~ ~ ~ .~ ~ ~ ~ o ~ ~ .~ ~ ~ H ~ ~ ;-., Z~ J O ,~ ~~ 0 M Annual Required Contribution (ARC) Beginning of Year Normal Cost Amortization of UAAL Interest to Beginning of Year Annual Required Contribution at Beginning of Year '~ Middle of Year Normal Cost Amortization of UAAL Interest to Middle of Year Annual Required Contribution at Middle of Year End of Year Normal Cost Amortization of UAAL Interest to End of Year Annual Required Contribution at End of Year Amortize UAAL Over 30 Years $ 5,922,755 $ 4,380,374 0 $ 4,380,374 $ 1,542,381 $ 161,591 200,623 0 $ 362,214 $ 161,591 200,623 15,394 $ 377,608 $ 161,591 200,623 30,788 $ 393,002 immediately Recognize UAAL $ 5,922,755 $ 4,380,374 0 $ 4,380,374 $ 1,542,381 $ 161,591 4,380,374 0 4,541, 965 161,591 4,380,374 193,034 4,734,999 161,591 4,380,374 386,067 4,928,032 ~~ CITY OF EAAN, MINNS®TA GASB N0.45 ACTUARIAL PRESENT VALUE OF BENEFITS AS OF JANUARY 1, 2000 ®iscount Rafe 8.5%~ Actuarial Present Value of ene~ts (PV) ($ 5,922,755 Inactive Members Implicit Rate Subsidy $ 103,953 City Cost Sharing 190,383 Total $ 294,336 Non-PolicelFirefighters PV ~ $ 1,820,225 Police/Firefighters Active Members Implicit Rate Subsidy $ 1,055,200 City Cost Sharing 2,248,840 Total $ 3,304,040 Inactive Members Implicit Rate Subsidy $ 195;045 City Cost Sharing 603,445 Total $ 798,490 Police/Firefighters PVB $ 4,102,530 1~ r e'' 3-®eC-0$ Surttntary of N®nYtai Cs y ®eprtn~~nt nd ®f 2008 ginnin g ®f Year ®et Fund Fund ~®. epart®nt Am®unt Summary Am®unt Summary 1 City Council 995.35 917.37 2 Administration 956.97 882.00 3 IT 291.30 268.48 4 City Clerk 1,130.93 1,042.33 5 .Finance 3,023.14 2,786.30 7 Planning 1,274.22 1,174.40 8 Inspections 4, 532.28 4,177.22 9 Communications 696.52 641.95 10 HR 299.02 275.59 11 Police Coord 2,539.37 2,340.43 11 Police Admin 3,323.40 3,063.04 11 Police Officers 130,960.96 120,701.35 12 Fire Coord 483.52 445.64 12 FireP~F - - 21 PW Engineering 3,439.39 3,169.94 22 Streets 4,129.48 3,805.97 24 Central Services 1,147.40 1,057.51 30 Park & Rec 1,609.45 1,483.36 31 Park Maintenance 3,971.93 3,660.76 32 Parks Forestry 532.35 490.65 33 Government Bldgs 1,406.51 1,296.32 166,743.49 153,680.64 61 Utilities 5,072.01 4,674.66 64 Water Quality 952.81 878.17 70 Civic Arena 131.82 121.49 80 Cascade Bay 23.93 22.06 90 Community Center 2,401.94 2,213.77 8,582.51 7,910.15 175, 326.00 175, 326.00 161, 590.78 161, 590.78