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<br />CITY OF LA PORTE, TEXAS <br />Notes to the Financial Statements <br />September 30, 2008 <br /> <br />9. Commitments and Contingent Liabilities <br /> <br />From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In <br />the best judgment of the City's management, the outcome of any pending legal proceedings will not have an <br />adverse effect on the accompanying general purpose financial statements. <br /> <br />The City participates in certain federal and state assisted grant programs. These programs are subject to <br />program compliance audits by the grantors or their representatives. Any liability for reimbursement which <br />may arise as the result of these audits is not believed to be material. <br /> <br />10. Post-Employment Benefits <br /> <br />In addition to pension benefits described in Note 6, employees who retire from the City and are eligible for <br />pension benefits shall be provided medical coverage by the City to the extent and subject to the conditions <br />of such coverage that is provided to current employees of the City. This coverage for retired employees is <br />provided at the option of City council through adoption of the annual budget. The City funds these <br />premiums in the same manner as it funds similar premiums for current employees. <br /> <br />Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the <br />City. Employees who retired from the City in 1993 and up to December 31,1999, with 20 or more years of <br />service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15 <br />years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10 <br />years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire <br />after January 1, 2000 the following applies: <br /> <br />Years of Service with City <br />At least 10 but less than 15 years <br />At least 15 but less than 20 years <br />At least 20 years <br /> <br />Retiree Cost <br />55% <br />25% <br />0% <br /> <br />Citv Cost <br />45% <br />75% <br />100% <br /> <br />Retiree Cost Per Year <br />$3,300 <br />1,500 <br />o <br /> <br />71 <br />