Notes to Financial Statements

as a percent of covered compensation. Contribution rates are determined by the Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. For governmental activities, the general fund generally liquidates employer contributions and pension obligations.

The PERSI Base Plan contribution rates for employees are set by statute at 60% of the employer rate for general employees and 74% for police and firefighters. For the period October 1, 2021 to September 30, 2022 it was 7.16% for general employees and 9.13% for police and firefighters. The PERSI Base Plan employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% for general employees and 12.28% for police and firefighters. The City contributions were $16,961 for the year ended September 30, 2022.

The total FRF employer contribution rate for the period October 1, 2021 to September 30, 2022 was 12.28%. The employer excess rate of 5.00% ended on July 1, 2020. The FRF member rate for the period for class B is 11.45% which is 2.32% above the class 2 rate of 9.13%. The City’s contributions to FRF were $0 for the year ended September 30, 2022.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

PERSI Base Plan

At September 30, 2022, the City reported a pension liability of $138,187 for its proportionate share of the net pension liability of the PERSI Base Plan. The net pension liability was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of contributions in the PERSI Base Plan pension plan related to the total contributions of all participating PERSI Base Plan employers. At July 1, 2022, the City’s proportionate share was 3.51%, a .21% decrease from the City’s proportionate share at July 1, 2021.

For the year ended September 30, 2022, the City recognized pension expense of $35,822 related to the PERSI Base Plan. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to PERSI Base Plan from the following sources:

Deferred outflows of resources in the amount of $4,022 resulting from employer contributions to the PERSI Base Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2023.

The average of the expected remaining service lives of all employees that are provided with pensions through the PERSI Base Plan (active and inactive employees) determined at June 30, 2022 is 4.6.