City of Downey Annual Comprehensive Financial Report For Fiscal Year Ended June 30, 2021

Page 100

CITY OF DOWNEY NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021 Note 14:

Post-Employment Benefits Other than Pensions Plan Description In connection with the retirement benefits for employees described in Note 13, the City provides post-retirement medical benefits to retirees. The Plan is an agent-multiple employer plan. These benefits are available to employees who retire with the City with at least 10 years of service or those who satisfy certain disability requirements. The Plan does not issue a publicly available financial report. Funding Policy The City’s funding policy affects the calculation of liabilities by impacting the discount rate that is used to develop the plan liability and expense. “Prefunding” is the term used when an agency consistently contributes an amount based on an actuarially determined contribution (ADC) each year. GASB 75 allows prefunded plans to use a discount rate that reflects the expected earnings on trust assets. Pay-as- you-go, or “PAYGO”, is the term used when an agency only contributes the required retiree benefits when due. When an agency finances retiree benefits on a pay-as-you-go basis, GASB 75 requires the use of a discount rate equal to a 20-year high grade municipal bond rate. The City has been and continues to prefund its OPEB liability, contributing 100% or more of the Actuarially Determined Contributions each year. Therefore, with the City’s approval, the discount rate used in this valuation is 6.90%, the City’s expectation of the long-term return on trust assets. Employees Covered As of the June 30, 2020 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan: Active Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to, but not yet receiving benefits

418 220 195 833

Contributions The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the measurement date ended June 30, 2020, the City’s cash contributions were $815,594 in total payments, which were recognized as a reduction to the OPEB liability.

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Operating Information: Full-Time and Part-Time City Employees by Function – Last Ten Fiscal Years

1min
pages 180-181

Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years

0
pages 166-167

Net Bonded Debt per Capita – Last Ten Fiscal Years

0
pages 171-172

Measure S 2017 LRB

0
page 131

LSTA Grant

2min
page 130

Gas Tax

0
page 129

Combining Balance Sheet - Governmental Funds

7min
pages 106-111

Budgetary Comparison Statement (Budgetary Basis) - CIP Grant Special Revenue Fund

1min
page 98

Notes to Required Supplementary Information

12min
pages 100-105

Schedule of Changes in the Net OPEB Liability and Related Ratios

3min
pages 92-93

Schedule of Contributions - OPEB

4min
pages 94-95

Budgetary Comparison Statement (Budgetary Basis) – General Fund

1min
page 96

Statement of Changes in Fiduciary Net Position - Fiduciary Funds

1min
page 40

Statement of Fiduciary Net Position - Fiduciary Funds

1min
page 39

Statement of Cash Flows - Proprietary Funds

1min
page 38

Statement of Net Position - Proprietary Funds

1min
page 36

Fund Financial Statements: Balance Sheet - Governmental Funds

4min
pages 28-30

Government-Wide Financial Statements: Statement of Net Position

1min
page 25

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

5min
pages 32-34

Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds

1min
page 37

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position

2min
page 31

Statement of Activities

5min
pages 26-27

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

1min
page 35
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