BICKMORE & ASSOCIATES, INC. 2-2016

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Other Post -Employment Benefit Programs of the City of "" Actuarial Valuation as of July 1, 2015 Table 1 B Expected OPEB Disclosures for FYE 2016 The following exhibit develops the annual OPEB expense, estimates the expected OPEB contributions and projects the net OPEB obligation as of June 30, 2016 based on the prefunding policy described in this report. Some of the entries in the table below should be updated after the close of the 2016 fiscal year to reflect the actual activity which occurred. Fiscal Year End Prefundi Basis 6/3012016 6/30/2016 6/30/2016 Subsidy Explicit Implicit Total 1. Calculation of the Annual OPEB Expense a, ARC for current fiscal year $ 6,877,504 $ 1,787,877 $ 8,665,381 b. Interest on Net OPEB Obligation (Asset) (69) (69) c. Adjustment to the ARC 68 - 68 d. Annual OPEB Expense (a. + b. + c.) 6,877,503 1,787,877 8,665,380 2. Calculation of Expected Contribution a. Estimated payments on behalf of retirees 5,213,932 - 5,213,932 b. Estimated current year's Implicit subsidy - 911,979 911,979 c. Estimated contribution to OPER trust 1,663,572 875,898 2,539,470 d. Total Expected Employer Contribution 6,877,504 1,787,877 8,665,381 3. Change in Net OPEB Obligation (1.d. minus 2.c.) (1) (1) Net OPEB Obllgatlon (Asset), beginning of fiscal year (944) (944) Net OPEB Obligation (Asset) at fiscal year end (945) (945) In the table above, We assumed thatthe City'"s:contributions would equal the total combined ARC of $8,665,381: This may require adjusting the contribution to the trust if actual benefit payments to retlrees`_are higher or lower.than the estimate shown above. If actual total contributions are less than the•ARC,th,e discount rate may need to be reduced to reflect less than 100% funding of the ARC. Notes on calculations above: • Interest on the net OPE8 obligation (or asset), shown above in item 1.b. is equal to the discount rate (7.28%) multiplied by the net OPEB obligation (or asset) at the beginning of the year. • The Adjustment to the ARC, shown above in item 1,c., is always the opposite sign of the net OPEB obligation or asset and exists to avoid double -counting of the amounts previously expensed, but imbedded in the current ARC. This adjustment is calculated as the opposite of the net OPEB obligation (or asset) at the beginning of the year, plus Interest on that amount (item 1.b.) with the sum then divided by the same amortization factor used to determine the ARC for this year (see the prior page for this factor). Bckmore (i4'.