Changes in Fund Balance – Budget and Actual

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021

Sworn police officers (PMPP retirement plan) must have completed 20 years of service .

Once a retiree reaches the age of 65, or becomes eligible for Medicare, the retiree is no longer eligible to receive benefits under the City’s plan .

As of December 31, 2021, the following employees were covered by the benefit terms:

Accounting Policy

An irrevocable trust has not been established that meets the criteria in paragraph 4 of GASB Statement No . 75 . Therefore, the plan is not accounted for as a trust fund . The plan does not issue a stand-alone financial report for the plan .

Funding Policies

The contribution requirements of plan members and the City are established and may be amended by the City Council . The required contribution is based on projected pay-as-you-go financing requirements . For the year ended December 31, 2021, the City made $215,793 in contributions to the plan . Plan members are required to contribute their share of the premiums .

Monthly retiree health coverage contribution rates for offered benefit levels are as follows:

Actuarial Methods and Assumptions

Actuarial cost method Entry Age Normal Level Percent of Pay

Discount rate 2.06%

Inflation 2.50%

Salary increases

Medical trend 3.50%

5.8% for 2021, 5.4% for 2022, grading down to 4.0% in 2073

Mortality

Mortality Improvement Scale MP-2020 from 2010 base year, and projected forward using MP-2020 on a generational basis participation rates Pub-2010 General Employee/Retiree Mortality Tables projected generationally using Scale MP 2020

All current retired participants are assumed to continue retiree health coverage. 20% of future eligible retired participants are assumed to elect retiree health coverage upon retirement. This assumption is based on historical participant behavior and expectations of future plan experience

Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future . Amounts determined regarding funded status and contributions of the City’s retiree health care plan are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future . The assumptions reflect the Bond Buyer