|
CITY of OIIONO -
<br />NOTES TO ►INANCIAL STATEMENTS (Continued)
<br />December 31. 1988
<br />Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued)
<br />among Public Employees' Retirement Svs,ea% and among
<br />employers. PERA does not make separate mrasurra.•nts of .aaets
<br />and pension benefit obligation for individual employers.
<br />The pension benefit obligation as of June 30. 198N, Is shown
<br />below:
<br />PENt PEI't'F
<br />In Thousandh) Sin Thousands)
<br />Total pension -"--
<br />benefit obligation $3.334,423 $512.921
<br />Net assets available
<br />for benefits, at market 2.7.9,289 584,11171
<br />Unfunded (surplus) pension
<br />benefit obligation 585,114 Ri L 950)
<br />The measurement of the pension benefit obligation 1% based on
<br />h+ an actuarial valuation as of June 30. 1988. Net .I+SO— ts
<br />N available to pay pension benefits were valued am of ,tune 30,
<br />1980.
<br />2. Change in Actuarial Methods
<br />Prior to fiscal year 1988. the mortality table used was the
<br />UP-1984 Unisex set for:ard one year for lasles and set back
<br />four years for faster lea. For fiscal year 1988. the PF.RA Board
<br />of Trustees approved the use of the 1971 Gruup Annuity
<br />Mortality Table projected to 1984 for males and females. T':.
<br />change was made In order to reduce, If not eliminate, the
<br />series of large, annually recurring asirtallty losses that have
<br />been cealired In the last four years. With the adoption of
<br />the new mortality table, the projected benefit obligation
<br />Increased $179,670,000 in the Public Employees' Retirement
<br />Fund and $18.805,0oo is the Public Employees' Police and Fire
<br />Fund. These actuarial changer did not affect the contribution
<br />rates.
<br />D. Ten -Year Historical Trend Inform tinn
<br />Ten-year historical trend Informatton Is presented In PERA's
<br />Comprehensive Annual Financial Report for the year ended June 30.
<br />1988. This Information Is useful in assessing the pension plan's
<br />artusulation of sufficient assets to pay pension benefits as they
<br />become due.
<br />CITY ,IF ow;,.
<br />NoTt:S T - FINANCIAL STATEMENTS (G no mind)
<br />December 31. 1988
<br />Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE (continued)
<br />F.. Related-Partyyinveatments
<br />During 1988 and as of June 3U. 1988, IERA held a., %ecurlties issued by
<br />the city ar other related parts,...
<br />Note 11 ilm. Pfu COMPtNSATION PLANS
<br />the (lty Otitis Its employers deterred atop,abitt.•n play created in
<br />acc.rdunce with Internal Revenue Code Sectl,n .57. The plans,
<br />available to all emplovees, permit them to deter a portion of their
<br />salary until future rears. The deterred compensation is not available
<br />tJ emll„)vvs until termination, retirement, death, or unforeseen
<br />emergency.
<br />All amounts of compensation deferred under the plans, all pr„perty and
<br />rights purchased with those amounts, and all Income attributable to
<br />I hu•.,• amounts ere sJlely the property and rl P.hts of the City, sub wet
<br />to the cl.OIN% nt the City'a general cred,tors. Participants' rlght.4
<br />und.•r tht plans arc equal to those of genera: creditors of to! City In
<br />an annunt equal to the fair market value of the deferred account for
<br />ra:h p.irticlpant.
<br />The City has no 11W I lty for losses ut.der the plans but does have the
<br />duty of due care that would be required of an ordinary prudent
<br />Investor. The City believes that it Is unlikely that 1. will use the
<br />asseth to satisfy tt,r claims of general rred a ors in the future.
<br />Nnte 12. CONTINGENCIES
<br />In 1985. the Crystal Bay Area Sewer Project Assessment was adopted at
<br />$4.215 per parcel uilt. Approximately 69 parcels, representing 81
<br />parcel units, apnsaled the assessment. In August 1986, 66 parcels,
<br />representing 67 parcel units, were reduced by Court appointed arbitra-
<br />tors fr_m $9,215 to S5,5OU per parcel unit. The City has revised the
<br />assessment rolls or issued refunds, as •ppr,ipriate. As a result of
<br />the decrease in future revenue from special assessments, the City
<br />livied $40.000 In taxes to aid In payment of the debt redemption due
<br />11 1'i87.
<br />or June 1, 1987. another Crystal Bay Sewrr Appeal was settled. The
<br />at it lemt•rt calls for r reduction in the sloe, laI assessment for sewer
<br />Iml.rovem.•n,s from $1-,,940 to SI1, 500. The Da•crmbrr 31, 1987. flnan-
<br />clal statements reflect the effects of this settlement. The City
<br />levied SJO,0611 in taxes to aid in payment of the debt redemption due
<br />In 1988. In Octuber 1988, the City levied c)O,tt00 In to-ee •o mid In
<br />
|