Actuarial Valuation Report as of July 1, 2000
Section 4 - GASB #25 and GASB #27 DISCLOSURES

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The Governmental Account Standards Board (GASB) has adopted Statement #25, changing the way in which governmental retirement systems must report financial information. GASB #25 is effective for Fund and City reporting in 1999.

GASB #25 and #27 make a number of significant changes to retirement plan reporting. They eliminate the dual reporting of actuarial liabilities that was required under GASB #5. Under GASB #5, many plans including the Fund, reported liabilities determined fewer than one actuarial cost method for internal purposes, but were required to also provide liabilities determined under the Projected Unit Credit method for financial reports. Under GASB #25 and #27, systems select one actuarial method from several acceptable alternatives, and report all information on this one basis. The Entry-Age-Normal Actuarial Cost Method has been selected.

This report includes the following schedules with information required to be reported under GASB #25 and #27.

Schedule D:
Schedule of Funding Progress for GASB #25
This schedule shows the first four years of a history of funding progress that will ultimately include six years. The funding progress is a comparison of actuarial value of assets with the actuarial liability (AAL), and a comparison of the unfunded AAL (UAAL) with compensation.
Schedule E:
Schedule of Employer Contributions for GASB #25
This schedule shows the annual required contribution (ARC) as computed under GASB # 25 and the percent of this amount actually received. This schedule will ultimately include a 6-year history.
Schedule F:
Supplementary Information for GASB #25 and #27
This schedule has certain information required in the notes to the Fund and City financial reports
Schedule G:
Annual Pension Cost and Contributions Made for GASB #27
This schedule shows the components of annual pension cost (ARC),Annual Pension interest on the Net Pension Obligation (NPO), and the adjustment to the ARC, increase or decrease in the NPO and the NPO at the end of the year. The exhibit also includes the dollar amount of contributions made.
Schedule H:
Pension Cost Summary for GASB #27
This schedule is a three-year summary of annual pension cost, percentage of annual pension cost contributed that year and NPO at the end of the year.
Schedule I:
Development of Net Pension Obligation (NPO) at July 1, 1998
This schedule documents the calculation of the pension liability at transition in accordance with GASB #27.

Schedule D - Schedule of Funding Progress

Actuarial Valuation Date GASB Value of Assets*
(a) 		Actuarial Accrued Liability** (AAL)
(b) 		Unfunded AAL (UAAL)
(b-a) 		Funded Ratio
(a/b) 		Covered Payroll (P/R)
(c) 		UAAL as a Percentage of Covered P/R
[(b-a)/c]
7/1/1996 $27,902,012 $39,174,993 $11,272,981 71.22% $4,809,804 243.38%
7/1/1997 $30,453,843 $40,764,233 $10,310,390 74.71% $4,955,543 208.06%
7/1/1998 $32,744,459 $44,744,470 $12,000,011 73.18% $5,173,187 231.97%
7/1/1999 $33,005,158 $47,082,986 $14,077,828 70.10% $5,419,418 259.77%
* Includes receivables for contributions not yet received but attributable to prior year plans.
** This amount is based on the Entry-Age-Normal Cost Method. The Entry-Age-Normal is used to determine the required contribution.

Schedule E - Schedule of Employer Contributions

Fiscal Year Ended Annual Required Contribution
(a) 		Total Employer Contribution
(b) 		Percentage of ARC Contributed
(b/a)
6/30/1997 $1,157,157 $1,703,813 147.24%
6/30/1998 $1,149,000 $1,714,852 149.25%
6/30/1999 $1,382,291 $1,709,977 147.24%
6/30/2000 $1,289,233 TBD TBD

Schedule F - Supplementary Information

The information requested in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
Validation Date July 1, 1999
Actuarial Cost Method Entry-Age-Normal
Actuarial Value of Assets 4-year smoothed market
Amortization Method Level percent closed
Remaining Amortization Period 34 years
Actuarial Assumptions

Investment Rate of Return 7.25% per year

Projected Salary Increases 3.75% per year, plus additional percentage related to service.

Schedule G - Annual Pension Cost and Contributions

Contribution Rates:

City: Proceeds from a tax levy equal to the sum of: (a) annual normal cost plus (b) amortization of unfunded liability as a level percent of pay between now and 1/1/2020 plus (c) interest on (a) and (b) to date of payment*

Plan Members 9.0%
Annual Pension Cost: Annual Required Contribution (ARC) $1,289,233

Interest on Net Pension Obligation ($161,065)

Adjustment to ARC $107,193

Total $1,235,361

Net Pension Obligation (NPO) at July 1, 1999: ($2,221,585)
* The annual required contribution is equal to the sum of: (a) annual normal cost plus (b) amortization of unfunded liability as a level percent of pay between now and 7/1/2033

Schedule H - Pension Cost Summary for GASB #27

Year Ended June 30 Annual Pension Cost % of Annual Pension Cost Contributed Net Pension Obligation
1997 $1,142,015 149.19% ($1,225,311)
1998 $1,122,441 152.78% ($1,847,722)
1999 $1,336,114 127.98% ($2,221,585)
2000 $1,235,361 TBD TBD

Schedule I - Development of Net Pension Obligation (NPO) at July 1, 1998

Year Ending June 30 1989 1990 1991 1992 1993
Assumptions and Method
Interest Rate 7.00% 7.00% 7.00% 7.00% 6.50%
Salary Increase Assumption 5.50% 5.50% 5.50% 5.50% 4.00%
Amortization Period 31.50 30.50 29.50 28.50 41.00
Cost Method EAN EAN EAN EAN EAN
Annual Pension Cost
Annual Required Contribution (ARC) $1,002,177 $1,090,983 $1,139,056 $825,646 $1,209,223
Interest on NPO $12,650 $26,628 $37,265 $71,570 $52,729
Adjustment to ARC ($13,415) ($28,506) ($40,304) ($43,269) ($30,596)

Annual Pension Cost $1,001,412 $1,089,105 $1,136,017 $853,947 $1,231,356

Contribution for Year $801,734 $937,141 $645,941 $1,065,164 $1,264,017

Net Pension Obligation (NPO)

NPO at Beginning of Year $180,715 $380,393 $532,357 $1,022,433 $811,216
Annual Pension Cost $1,001,412 $1,089,105 $1,136,017 $853,947 $1,231,356
Total Contributions ($801,734) ($937,141) ($645,941) ($1,065,164) ($1,264,017)

NPO at End of Year $380,393 $532,357 $1,022,433 $811,216 $778,555
Year Ending June 30 1994 1995 1996 1997 1998
Assumptions and Method
Interest Rate 6.50% 6.50% 6.50% 6.50% 6.50%
Salary Increase Assumption 4.00% 4.00% 4.00% 3.50% 3.50%
Amortization Period 40.00 39.00 38.00 37.00 36.00
Cost Method EAN EAN EAN EAN EAN
Annual Pension Cost
Annual Required Contribution (ARC) $917,775 $967,984 $1,028,018 $1,157,157 $1,149,000
Interest on NPO $50.606 $20,415 ($10,217) ($45,078) ($81,595)
Adjustment to ARC ($29,798) ($12,206) $6,207 $29,936 $5,036

Annual Pension Cost $938,583 $976,193 $1,024,008 $1,142,015 $1,122,441

Contribution for Year $1,403,068 $1,447,451 $1,560,333 $1,703,813 $1,714,852

Net Pension Obligation (NPO)

NPO at Beginning of Year $778,555 $314,070 ($157,188) ($693,513) ($1,255,311)
Annual Pension Cost $938,583 $976,193 $1,024,008 $1,142,015 $1,122,441
Total Contributions ($1,403,068) ($1,447,451) ($1,560,333) ($1,703,813) ($1,714,852)

NPO at End of Year $314,070 ($157,188) ($693,513) ($1,255,311) ($1,847,722
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