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

Page 96

CITY OF DOWNEY NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2021 Note 13:

City Employee Retirement Plan (Continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014. Current Target Real Return Allocation Years 1 - 10 (1) 50.00% 4.80% 28.00 1.00 0.00 0.77 8.00 6.30 13.00 3.75 1.00 0.00

Asset Class Global Equity Global Fixed Income Inflation Sensitive Private Equity Real Estate Liquidity

(1) An expected inflation of 2.5% used for this period. (2) An expected inflation of 3.0% used for this period.

70

Real Return Years 11+ (2) 5.98% 2.62 1.81 7.23 4.93 -0.92


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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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