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CITY OF LA PORTE, TEXAS
<br />NOTES TO THE FINANCIAL STATEMENTS (continued)
<br />Note 11 - Post-employment Benefits (continued)
<br />Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB)
<br />cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
<br />determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of
<br />funding that if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
<br />unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following
<br />table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed
<br />to the plan, and changes in the City’s OPEB obligation to the postemployment medical plan shows the
<br />components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and
<br />changes in the City’s OPEB obligation to the postemployment medical plan.
<br />Fiscal Year
<br />201120102009
<br />Annual Required Contribution (ARC)2,214,338$ 2,472,961$ 2,190,180$
<br />Interest on net pension obligation (NPO) 169,198 81,894 -
<br />Adjustment to ARC(156,760) (75,874) -
<br />Annual Pension Cost (APC)2,226,776 2,478,981 2,190,180
<br />Contributions(721,830) (538,884) (370,318)
<br />Change in NPO1,504,946 1,940,097 1,819,862
<br />NPO, beginning of the year3,759,959 1,819,862 -
<br />NPO, ending of the year5,264,905$ 3,759,959$ 1,819,862$
<br />Percentage of ARC contribution32.4%21.7%16.9%
<br />The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
<br />OPEB obligation for fiscal year 2011, 2010 and 2009 are as follows.
<br />Percentage of
<br />Annual OPEB
<br />Cost Net OPEB
<br /> Annual OPEB
<br /> Fiscal Year Ended Cost Contributed Obligation
<br />9/30/20092,190,180$ 16.91%1,819,862$
<br />9/30/20102,478,981 21.74%3,759,959
<br />9/30/20112,226,776 33.85%5,264,905
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