Item 4C: Adoption of Resolution on FY12 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, 2011 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 5.2%. The healthcare plan actuarial valuation included a healthcare cost inflation trend rate of 9.0% in 2010 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, 2012, the City has encumbered the following significant commitments: FundAmount General$1,201,735 Community Development Special Revenue873,617 General Capital Projects1,960,944 Systems Development Capital Projects31,863 Municipal Airport2,042,595 Parking Services127,724 Stormwater Utility1,051,384 Wastewater Utility112,553 Internal service funds2,557,509 Other governmental funds4,235,842 Total outstanding encumbrances$14,195,766 (G) Prior Period Adjustment In FY09, the City contributed a vacant lot and $307,433 in cash to acquire three tax lots (a building and two parking lots) adjacent to the old Sears building site. In FY11, the City donated the parking lots and the former Sears site to Lane Community College for construction of their new downtown facility. In FY12, the remaining tax lot (the building at 942 Olive St.) valued at $860,160, was reclassed to assets held for resale, resulting in a fund balance restatement. (H) Subsequent Event On November 6, 2012, Eugene voters passed Measure 20-197, authorizing the City to issue a maximum of $43,000,000 of general obligation bonds. The proceeds from the sale of the bonds are to be used for street preservation and bicycle and pedestrian projects. 75