Item 3C: Adoption of Resolution Acknowleding CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information, continued (D) Other Post-employment Benefits (OPEB), continued Actuarial Methods and Assumptions, continued The June 30, 2009 actuarial valuations for the healthcare plan and the post-employment life insurance benefits for disabled employees were based on the entry age normal and the projected unit credit actuarial cost methods, respectively. The actuarial assumptions for both valuations included an investment return of 5.18%. The healthcare plan actuarial valuation included a healthcare cost inflation trend rate of 9.0% in 2009 decreasing to 6.0% in 2020. The unfunded actuarially accrued liability and the gains and losses for both plans are amortized as a level dollar amount over an open period of 30 years. (E) Contingencies The City is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the City’s self-insurance internal service fund are reviewed and losses are accrued based upon the judgment of City management. Based upon the advice of legal counsel with respect to such litigation and claims, City management cannot determine what effect the ultimate disposition of these matters will have on the financial position or results of operations of City funds. (F) Outstanding Encumbrances At June 30, 2009, the City has encumbered the following significant commitments: Amount Fund General $ 943,294 Community Development Special Revenue 771,391 General Capital Projects 1,468,547 Road Capital Projects 658,054 Systems Development Capital Projects 1,420,333 Municipal Airport 2,242,688 Parking Services 56,372 Stormwater Utility 557,614 Wastewater Utility 938,237 Internal service funds 605,871 Other governmental funds 4,327,073 Total outstanding encumbrances $ 13,989,474