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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(5) Other Information, continued
<br />(D) Other Post-employment Benefits (OPEB), continued
<br />Actuarial Methods and Assumptions, continued
<br />The June 30, 2011 actuarial valuations for the healthcare plan and the post-employment life insurance benefits
<br />for disabled employees were based on the entry age normal and the projected unit credit actuarial cost
<br />methods, respectively. The actuarial assumptions for both valuations included an investment return of 5.2%.
<br />The healthcare plan actuarial valuation included a healthcare cost inflation trend rate of 9.0% in 2010
<br />decreasing to 6.0% in 2020. The unfunded actuarially accrued liability and the gains and losses for both plans
<br />are amortized as a level dollar amount over an open period of 30 years.
<br />(E) Contingencies
<br />The City is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its
<br />operations. Claims covered by the City’s self-insurance internal service fund are reviewed and losses are
<br />accrued based upon the judgment of City management. Based upon the advice of legal counsel with respect to
<br />such litigation and claims, City management cannot determine what effect the ultimate disposition of these
<br />matters will have on the financial position or results of operations of City funds.
<br />(F) Outstanding Encumbrances
<br /> At June 30, 2011, the City has encumbered the following significant commitments:
<br />FundAmount
<br />General$1,839,077
<br />Community Development Special Revenue1,160,844
<br />General Capital Projects815,201
<br />Systems Development Capital Projects494,554
<br />Municipal Airport3,304,310
<br />Parking Services227,763
<br />Stormwater Utility116,551
<br />Wastewater Utility916,595
<br />Internal service funds672,306
<br />Other governmental funds8,950,815
<br />Total outstanding encumbrances$18,498,016
<br />(G) Subsequent Events
<br />In November 2011, the City issued $11,020,000 in General Obligation Refunding Bonds to refund $5,430,000
<br />of the Fire Projects Bonds, Series 2002, $4,220,000 of the Parks and Open Spaces Bonds, Series 2008, and a
<br />portion of the General Obligation Bond and Revolving Credit Facility obligation.
<br />(H) Conduit Debt
<br />On December 27, 2010, the City issued $6.9 million of Bank Loan Revenue Bonds, dated December 30, 2010,
<br />bearing a variable interest rate, and maturing on December 27, 2035. The bonds were issued to provide
<br />financial assistance to Woolworth Properties, LLC for the construction of the Bennett Building, which is located
<br />within the City’s Urban Renewal Downtown District. The City is not obligated in any manner for repayment of
<br />the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As
<br />of June 30, 2011, $6.9 million of the bonds were outstanding.
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