NOTE 12. OTHER POSTEMPLOYMENT BENEFITS (Continued)Fiscal Year EndedAnnual OPEBCostPercentage <strong>of</strong>Annual OPEB CostContributedNet OPEBAsset9/30/2008 $ 49,000 0% $ 655,9699/30/2009 50,000 0% 605,969Annual required contribution $ 18,000Interest on OPEB obligation (62,000)Adjustment to annual required contribution 94,000Annual OPEB cost 50,000Contribution made -Change in net OPEB asset 50,000Net OPEB liability (asset), beginning <strong>of</strong> year (655,969)Net OPEB liability (asset), end <strong>of</strong> year $ (605,969)The annual required contributions for 2009 and 2008 were $18,000 and $15,000, respectively, <strong>of</strong> which theVillage made contributions <strong>of</strong> $0 for each year and instead reduced the net OPEB asset.Funded Status and Funding Progress: The funded status <strong>of</strong> the plan as <strong>of</strong> September 30, 2009 was asfollows (based upon the first actuarial valuation since the plan was funded):Actuarial accrued liability (AAL) $ 583,000Actuarial value <strong>of</strong> plan assets 783,000Unfunded actuarial accrued liability (UAAL) $ (200,000)Funded Ratio (actuarial value <strong>of</strong> plan assets/AAL) 134.3%Covered payroll (active plan members) $ 11,641,000UAAL as a percentage <strong>of</strong> covered payroll -1.7%Actuarial Methods and Assumptions: Actuarial valuations <strong>of</strong> an ongoing plan involve estimates <strong>of</strong> the value<strong>of</strong> reported amounts and assumptions about the probability <strong>of</strong> occurrence <strong>of</strong> events far into the future.Actuarially determined amounts are subject to continual revision as actual results are compared to pastexpectations and new estimates are made about the future. Although the valuation results are based onvalues the actuarial consultant believes are reasonable assumptions, the valuation result is only an estimate<strong>of</strong> what future costs may actually be and reflect a long-term perspective. Deviations in any <strong>of</strong> severalfactors, such as future interest rate discounts, medical cost inflation, Medicare coverage risk and changes inmarital status, could result in actual costs being greater or less than estimated.Projections <strong>of</strong> benefits for financial reporting purposes are based on the substantive plan (the plan asunderstood by the employer and the plan members) and include the types <strong>of</strong> benefits provided at the time<strong>of</strong> each valuation and the historical pattern <strong>of</strong> sharing <strong>of</strong> benefit costs between the employer and planmembers to that point. The actuarial methods and assumptions used include techniques that are designedto reduce the effects <strong>of</strong> short-term volatility in actuarial accrued liabilities and the actuarial value <strong>of</strong> assets,consistent with the long-term perspective <strong>of</strong> the calculations.In the actuarial valuation for the Plan as <strong>of</strong> July 1, 2008, the projected unit credit actuarial cost method wasused. The actuarial assumptions included a 7.5% investment rate <strong>of</strong> return (net <strong>of</strong> administrative expenses),52
NOTE 12. OTHER POSTEMPLOYMENT BENEFITS (Continued)and an annual healthcare cost trend rate <strong>of</strong> 10% initially, reduced by decrements to an ultimate rate <strong>of</strong> 5.5%after ten years. Both rates included a 3.5% inflation assumption. The actuarial value <strong>of</strong> assets will bedetermined using fair value. The UAAL will be amortized as a level percentage <strong>of</strong> projected payroll on anopen basis. The remaining amortization period is fourteen years.The assumptions above were modified from the initial actuarial valuation for the plan. These assumptionsincluded an investment rate <strong>of</strong> return <strong>of</strong> 8%, an annual health-care cost trend rate <strong>of</strong> 12%, and a 4%inflation assumption. The change in these assumptions, plus actual retiree data, resulted in a substantiallylower annual OPEB cost for 2009.53
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Village of Wellington, FloridaCompr
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VILLAGE OF WELLINGTON, FLORIDACOMPR
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March 30, 2010The Honorable Mayor,
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Wellington’s residents grew by an
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Plan updates for 2010 include a vis
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Section 24 Impoundment including th
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Improvement Program for fiscal year
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In order to be awarded a Certificat
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VILLAGE OF WELLINGTON ORGANIZATIONA
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CALER, DONTEN, LEVINE,PORTER & VEIL
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MANAGEMENT’S DISCUSSION AND ANALY
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6. Section 10.554(1)(i)6., Rules of
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