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#
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========================================================================================
DOCUMENT : 2012-01-12-agenda-2338.txt
BOARD    : finance-committee
DATE     : 2012-01-12
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-01-12-agenda-2338.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_01122012-2338
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on January 12, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Discussion 
•  New Communications 
 
3. Review Minutes – 9/22/2011, 10/18/2011, 11/10/11 , 12/5/11 
 
4. Committee / Department Reports  
Capital Planning – Brian Laffond, DPW – Martha McDo nald,  Library – Barbara Reynolds,  
Monty Tech – Barbara Reynolds, Public Safety – Scot t Gile, Service Level Team – Mark 
Erickson / John Male, Sewer Commission – John Male,  Schools – TBD, School 
Regionalization – Mark Erickson, School Reconfigura tion – Brian Laffond / Barbara 
Reynolds 
 
5. New Business –  
•  Town Manager updates 
o Deficit spending needed in Snow & Ice account 
o GASB #45 Update: Other post-employment benefits va lutation 
•  Appoint Fincom rep to School Building Committee 
•  FY13 Budget General Discussion 
 
6. Future Agenda Items 
•  Town Accountant Quarterly Update 
 
7. Next Meetings –    
•  January 26, 2012, 7:00 p.m. – Regularly Scheduled Meeting - Town Hall 
 
8. Adjournment

========================================================================================
DOCUMENT : 2012-01-12-minutes-2338.txt
BOARD    : finance-committee
DATE     : 2012-01-12
KIND     : minutes
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-01-12-minutes-2338.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_01122012-2338
========================================================================================

===OCR macOS Vision===
===PAGE 1===
Town of Lunenburg
Finance Committee:
Mark Erickson, Chairman
Brian Laffond, Vice-Chairman
Martha McDonald, Secretary
Barbara Reynolds
John Male
Scott Gile
Lunenburg Finance Committee
Minutes
January 12, 2012
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
Wack Fishton
Location:
Present:
Attendees:
Town Hall
Brian Laffond, Martha McDonald, Mark Erickson, John Male, Barbara Reynolds, Scott Gile
Kerry Speidel
1) Meeting called to order by the Chairman at 7:00 PM
2) Communications
Planning Board will hold an Information Meeting on 1/23/12 on the Solar Project proposed for the Twin City Baptist
property; project will bring some revenues in; land is taxable as real estate but solar panels are personal property (if
associated with manufacturing corporation, it is non-taxable); may be a payment in lieu of taxes arrangement;
Chase Road project would yield estimated additional $42K revenues for solar units
•
Public Hearing related to Summer Street project scheduled
Meeting scheduled related to cell tower for Massachusetts Avenue
• ATFC newsletters distributed
• Three issues of "The Beacon" distributed
• Central Massachusetts Mosquito Control Commission will hold an information meeting on 1/11/12
• Lunenburg Library will hold a program titled "A Look at Culture from West Africa"
3) Minutes Review
• Minutes needed for meeting on 10/18/11
• Minutes reviewed for 11/10/11; BR made motion to accept; BL seconded; all approved
4) Committee/Department Reports
• Capital Planning Committee - met today and committee was noting projects they supported and those they don't
• DPW - building renovation nearly complete; may be moving in next week; project should come in about $60K under
total budget of $1.3M; garage doors were rebid and new bid came in at half of original bid; $60K has to be spent on
items related to project
• Monty Tech - West Boylston is considering joining the district
• Public Safety - SG met with two Chiefs in November; both Chiefs have informed Town Manager of their notice to
retire this summer
• Sewer - Committee voted to raise fees as of 1/1/12 by 20% given they do not want to continue to use funds from
Retained Earnings to cover operating costs (increase does not apply to minimum rate); Sewer Committee is working
on their budget
• Council on Aging - need to get Planning Board, School Committee and Council on Aging to decide who owns the
land behind the building and what to do with it
• Schools - submitted preliminary budget at $16,606K, up from $14,908K
• Service Level Team - HANDOUT: History of Overrides; FinComm members on Service Level Team voiced that the
FinComm members are on board for supporting an override but have not defined the amount; there is concern for
our ability to sell an override; a $1.9M override is 10%
5) Town Manager Updates
• HANDOUT: Authorization for Deficit Spend to Snow and Ice Account - we are overspending budget due to tree and
branch clean-up form the October storm; we will be reimbursed for much of the expenses from Federal Disaster
Assistance at rate of 75%; letter has been sent to state asking for state reimbursement of 12 2% of remaining 25%;
n...i.cr
===PAGE 2===
JM moved we approve expenditures in excess of available appropriations for snow and ice; BR seconded, all
approved
Will have Town Accountant's report at 1/26/12 meeting
.
HANDOUT: GASB #45 Update - Town required to quantify its "Other Post-Employment Benefits' liability (health
insurance benefits for retirees); you are required to quantify it but state law does not require you to fund the full
liability, just the current costs; the funding for GASB #45 does not impact our town bond rating; for retirees eligible
for health insurance, the town pays 75% of cost and 75% of the cost of Medicare Plan B; in Lunenburg, we negotiate
all our benefits for all our unions together per Section 19; town could unaccept the provision to provide retiree
health care; Town Manager could invite the Executive Director of Public Pension Plans to speak during the budget
presentation for pension plans; may make more sense to do this in the fall after budget season
• School Building Committee - required by MSBA to have a FinComm representative on 12 member committee; Mark
Erickson will be the FinComm representative
6) Next Meeting - January 26, 2012
7) Adjournment - JM made a motion to adjourn at 9:51 PM, BR seconded; all in favor
Minutes respectfully submitted by Martha McDonald
===PAGE 3===
Comn of Lanenburg
BOARD OF SELECTMEN
17 Main Street PO Box 185
Innenburg MA 01462-0185
David J. Matthews, Chairman
Thomas A. Alonzo, Vice-Chatman
Carl "Ernie" Sund, Olerk
Steven M. deBestencourt, Mbr.
Paula Bertram, Mbr.
ES
/ACORPOR
978-582-4144, FAX 978-582-4148
Office Hours
Mon, Well, Thu. 8:00 AM - 4:00 PM
Tues, 8:00 AM - 6:80 PM •
Fri. 8:00 AM -18:80 PM
Kerry A. Speidel
Town Manager
Laura Williams
Chief Admin. Asst.
MEMORANDUM
To:
Board of Selectmen
KAS
From:
Kerry A. Speidel, Town Manager
Date:
January 3, 2012
Subject:
GASB #45 Update
Effective July 1, 2008, the Town of Lunenburg was required to comply with GASB #45, which
required that the Town quantify its "Other Post-Employment Benefits" Liability, Other referring
to other than Pension Liability, with the main liability being for Health Insurance benefits
provided to retirees.
Currently, the Town only funds its current costs, meaning only the cost of the employer's share
of the Health Insurance Premiums; however, each year, the Town is also incurring a Post-
Employment Benefits Liability, which is a combination of the percentage of the benefit earned
from date of hire to beginning of the fiscal year, referred to as the "UAAL" or "Unfunded
Accrued Actuarial Liability" and the percentage of the benefit earned during the fiscal year,
referred to as the "Normal Cost'. These two amounts, together with the annual premium cost,
represent the true cost of the Town's Health Insurance Liability.
While MGL requires each entity's Pension Liability to be fully funded as of 2040, it does not
require that its OPEB Liability be funded at any point in time, though it does now require it to
be disclosed. The Town has established a separate trust fund for OPEB Liability, but has yet to
set aside any money to actually begin funding the liability. As a point of reference, neither have
most communities in the Commonwealth.
Attached you will find the most recent GASB #45 Valuation. I would be happy to review the
document in more detail if you would like.
/Kas
===PAGE 4===
PRIMORIS
Berefic Advisors, Inc.
Camplex problems, practical solutions
RECEIVED
OCT 3 1 2011
SELECTMEN'S OFFICE
• Town of Lunenburg Other
Postemployment Benefits Plan
:
GASB 45 Actuarial Valuation
as of
July 1, 2010
For the fiscal years ending
June 30, 2011
June 30, 2012
Delivered October 2011
100 Linwood Avenue, Suite 201 • ColchesteCT 06415 • Tel: 860.537.9080 • www.primorisadvisors.com
===PAGE 5===
TABLE OF CONTENTS
LETTER
SECTION
I
II
PRINCIPAL RESULTS OF THE VALUATION
SUMMARY OF PLAN PROVISIONS
ACTUARIAL COST METHOD, ASSET VALUATION
METHOD AND ACTUARIAL ASSUMPTIONS
EXHIBITS
A
C
D
FINANCIAL STATEMENT DISCLOSURES
RECONCILIATION OF PLAN PARTICIPANTS
PROJECTED CASH FLOWS (OPEN GROUP)
GLOSSARY OF TERMS
PAGE
1
7
8
16
26
27
31
PRIMORIS
Benefic Advicors, Ine.
===PAGE 6===
October 31, 2011
Personal and Confidential
Ms. Kerry A. Speidel
Town Manager
Town of Lunenburg
17 Main Street
Lunenburg, MA 01462
Dear Ms. Speidel:
We have performed an actuarial valuation of the Town of Lunenburg Other
Postemployment Benefits Plan for the fiscal year ending June 30, 2011. The figures
presented in this report reflect the adoption, by the Town of Lunenburg, of Statement No.
45 of the Governmental Accounting Standards Board ("GASB 45"') effective July 1, 2008.
The financial results of the actuarial valuation are summarized in the report. The Executive
Summaries highlight the results of the valuation. Additional information summarizing
census data, actuarial assumptions, claim rates and the methodology for developing them,
as well as a glossary of selected terms used in this study, is also included in the report.
All costs, liabilities and other factors under the plan were determined in accordance with
generally accepted actuarial principles and procedures. In our opinion, the actuarial
assumptions used are reasonable, taking into account the experience of the plan and
reasonable expectations and, in combination, represent our best estimate of the anticipated
experience under the plan.
We refer you to Section I of this report for a detailed summary and commentary on the
results of the valuation and a comparison with the prior valuation. Section II is a summary
of the plan provisions, and Section III describes the actuarial cost method and assumptions.
Details for cost calculations, supporting data, and disclosures are provided in Exhibits A
through C.
We will be pleased to answer any questions that you may have regarding this actuarial
valuation ig
pit.
Very
ours,
Parker
Elmore, A.S.A., E.A., M.A.A.A.
President & CEO
Enclosure
PRIMORIS
===PAGE 7===
SECTION I
PRINCIPAL RESULTS OF THE VALUATION
Town of Lunenburg
Comparison of Plan Liabllitiesto Prior Valuation
July 1,2010
19,632,631
22.B22.782
42,455,413
1.
Actuartal Accrued Liability (Projected Unit Credit)
A. Actives
B. Retirees/Disabled
C. Total
Il. Plan Assets
Ill. Unfunded Actuarial Accrued Liabllity ("UAAL")
IV. Funded Ratio
V. Unrecognized Transition Obligation
Vl. Annual Covered Payroll
VIl. UAAL as % of Covered Payroll
VIlI. NotOPEB Obilgation
IX.
Number of Covered Participants
A. Actives
B. Retirees/Disabled
C. Total
For the Flscal Year Ending:
X.
Normal Cost
XI. Amortization of UAAL - 30 year flat dollar
XII. Annual Required Contribution (ARC) I X. + XI.]
XIII. Interest on Net OPEB Obligation
XIV. Adjusiment to Annual Required Contribution
XV. Amortization of Actuaríal (Gains) / Losses
XVI. Annual OPE Cost [XII. + XIII. + XIV. + XV.]
XVII. Expected Employer Contribution
XVIIII. Percentage of Annual OPE& Cost Contributed
XIX. Net OPEB Obligation at Beginning of Year (VIII.)
XX.
Increase in Net OPEB Obligations (XVI. - XVIT.)
XXI. Net OPEB Obligation at End of Year (XIX, + XX.)
JulY 1,2008
20,123,000
20,461,000
40,584,000
42,455,413
0.00%
39,331,055
14,459,251
293.60%
6,337,000
297
141
438
June 30, 2011
:1,710,399
2,360,374
4,070,773
253,480
(548,035)
276,243
4,052,461
1,273,856
31.4%
6,337,000
2,778,605
9,115,605
40,584,000
0.00%
40,584,000
13,909,371
291.8%
301
198
499
June 30, 2009
1,542,000
2,640,000
4,182,000
0
4,182,000
1,146,000
27.4%
3,036,000
3,036,000
*
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 1
in addi tist
to the
Nearly stry
the tomor
fiends for
presents
PRIMORIS
Benefit: Pavisors, Inc
===PAGE 8===
1. Actuarial Accrued Liability (Projected Unit Credit)
A. Actives
B. Retirees/Disabled
C. Total
Il.
Plan Assets
Ill. Unfunded Actuarial Accrued Llabllity ("UAAL")
V. Unrecognized Transition Obligation
V. Annual Covered Payroll
Vl. UAAL as % of Covered Payroll
•VIl. Net OPEB Obilgation
VIll. Number of Covered Participants
A. Actives
B. Retirees/Disabled
C. Total
For Fiscal Year Ending June 30, 2011
IX.
Normal Cost
X. Amortization of UAAL - 30 year flat dollar
XI. Annual Required Contribution (ARC) [ IX. + X.]
XII. Interest on Net OPEB Obligation
XIII. Adjustment to Annual Required Contribution
XIV. Amortization of Actuarial (Gains) / Losses
XV. Annual OPEB Cost [XI. + XII. + XIII. + XIV.]
XVI. Expected Employer Contribution
XVII. Percentage of Annual OPE Cost Contributed
XVIII. Net OPE Obligation at Beginning of Year (Vil.)
XIX. Increase In Net OPEB Obligations (XV. - XVI.)
XX. Net OPEB Obligation at End of Year (XVIII. + XIX.)
SECTION!
PRINCIPAL RESULTS OF THE VALUATION
(continued)
Town of Lunenburg
Plan Liabilities as of July 1, 2010
Medical
Dental
19,568,426
22.617,240
42,185,666
42,185,668
39,081,160
14,459,261
291.8%
6,296,737
0
14,459,251
0.0%
297
141
438
0
0
1,705,508
2,345,377
4,050,885
251,870
(544,553)
274,487
4,032,689
1,258,630
31.2%
6,296,737
2,774,059
9,070,796
0
0.0%
0
Total
Life
64,205
205,542
269,747
269,747
249,895
14,459,251
1.9%
40,263
. 297
124
421
4,891
14,897
Iotal
19,632,631
22,822,782
42,455,413
42,455,413
39,331,055
14,459,251
293.6%
6,337,000
44,809
1,273,856
31.4%
6,337,000
2,778,605
9,115,605
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 2
PRIMORIS
Meneft: Advisors, inc
ospers presidedes.
===PAGE 9===
SECTION!
PRINCIPAL RESULTS OF THE VALUATION
(continued)
Town of Lunenburg
Town Employees & Retirees
Plan Liabilities as of July 1, 2010
Medical
Dental
1.
Actuarial Aocued Lability (Projected Unit Credit)
A. Actives
B. Retirees/Disabled
C. Total
1I. Plan Assets.
IlI. Unfunded Acuarial Accrued Liability ("UAAL.")
IV. Unrecognized Transition Obligation
V. Annual Covered Payroll
VI. UAAL as% of Covered Payroll
VIl. Net OPEB Obligation
VIlI. Number of Covered Participants
A. Actives
B. Retirees/Disabied
C. Total
For Fiscal Year Ending June 30, 2011
IX. Normal Cost
X. Amortization of UAAL - 30 year flat dollar
XI. Annual Required Contribution ("ARC*) [IX. + +X.]
XIl. Interest on Net OPEB Obligation
XIII. Adjustment to Annual Required Contribution
XIV. Amortization of Actuarial (Gains) / Losses
XV. Annual OPEB Cost [XI. +XII. + XIII. + XIV.]
XVI. Expected Employer Contribution
XVII. Percentage of Annual OPEB Cost Contributed
XVIII. Net OPEB Obligation at Beginning of Yeer (VII.)
XIX. Increase in Net OPEB Obligations (XV. - XVI.)
XX. Net OPEB Obligation at End of Year (XVIII. + XIX.)
6,398,183
4,190,909
9,589,092
9,589,092
8,883,416
3,351,351
286.1%
1,431,291
391,513
533,120
924,633
57,252
(123,781)
62,393
920,497
251,058
27.3%
1,431,291
669,439
2,100,730
3,351,351
0.0%
61
31
92
0.0%
0
Life
17,613
45,814
. 63,427
0
63,427
58,759
3,351,351
1.9%
9,467
61
27
88
1,110
3,527
4,637
379
(819)
413
4,610
3,629
78.7%
9,467
981
10,448
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 3
town
Iotal
5,415,796
4.236.723
9,652,619
9,652,519
8,242,175
3,351,351
288.0%
1,440,758
392,623
536,647
929,270
57,631
(124,600)
62,808
925,107
254,687
27.5%
1,440,758
670,420
2,111,178
PRIMORIS
Beneff: Advicors, Inc,
Copter pretlera practical sold cra
===PAGE 10===
!
1.
Actuarla Accrued Liability (Prolected Unit Credit)
A. Actives
B. Retirees/Disabled
C. Tota
1l. Plan Assets
III. Unfunded Actuarial Accrued Liability ("UAAL")
IV. Unrecognized Transition Obligation
V. Annual Covered Payroll
VI. UAAL as % of Covered Payroll
VIl. Net OPEB Obligation
Vill. Number of Covered Participants
A. Actives
B. Retirees/Disabled
C. Total
For Fiscal Year Ending June 30, 2011
IX. Normal Cost
X. Amortization of UAAL - 30 year flat dollar
XI. Annual Required Contribution (ARC) [ IX. + X.]
XlI. Interest on Net OPE Obligation
XIII. Adjustment to Annual Required Contribution
XIV. Amortization of Actuarlal (Gains) / Losses
XV. Annual OPE Cost [XI. + XII. +XIII. + XIV.]
XVi. Expected Employer Contribution
XVII. Percentage of Annual OPEB Cost Contributed
XVIII. Net OPE Obligation al Beginning of Year (Vii.)
XIX. Increase in Net OPEB Obligations (XV. - XVI.)
XX. Net OPE Obligation at End of Year (XVIII. + XIX.)
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 4
SECTION!
PRINCIPAL RESULTS OF THE VALUATION
(continued)
Town of Lunenburg
School Employees & Retirees
Plan Liabilities as of July 1, 2010
Medical
Dental
14,097,233
18.426,331
32,523,664
32,523,564
30,130,107
11,060,618
294.0%
4,864,548
1,304,624
1,808,198
3,112,722
104,182
(419,830)
211,619
3,098,693
1,007,572
32.5%
4,854,548
2,091,121
6,945,669
11,060,618
0.0%
235
110
345
0
0.0%
0
Life
46,350
159,728
206,078
206,078
180,912
11,060,618
1.9%
30,760
235
9Z
332
3,749
11,457
15,206
1,230
(2,660)
1,341
15,117
11,597
76.7%
30,760
3,520
34,280
school
•
Total
14,143,583
18,586,059
32,729,642
32,729,642
30,321,019
11,060,618
295.9%
4,885,308
1,308,273
1,819,655
3,127,928
195,412
(422,490)
212,960
3,113,810
1,019,169
32.7%
4,885,308
2,094,641
6,979,949
PRIMORIS
enefit Advisors, In
===PAGE 11===
•
1.
Actuarial Acorved Liabilly (Projected Unit Credit)
A. Acives
B. Retiress/Disabled
C. Total
Il. Plan Assets
Ill.
Unfunded Actuarial Accrued Liability ("UAAL")
IV.
Unrecognized Transition Obligation
V. Annual Covered Payroll
VI. VAAL as % of Covered Payroll
VIl. Net OPEB Obligalion
VIII. Number of Covered Partidpants
A. Actives
8. Retirees/Disabled
C. Total
For Fiscal Year Ending June 30, 2011
IX. Normal Cost
X. Amortization of UAAL - 30 year flat dollar
XI. Annual Required Contribution ('ARC) [IX. +X.]
XII. Interest on Net OPEB Obligation
XIII. Adjustment to Annual Required Contribution
XIV. Amortization of Actuarial (Gains) / Losses
XV. Annual OPE8 Cost [XI. + XII. + XIII. + XIV.]
XVI. Expected Employer Contribution
XVII. Percentage of Annual OPE Cost Contributed
XVIII. Net OPE Obligation at Beginning of Year (VII.)
XIX. Increase in Net OPEB Obligations (XV. - XVI.)
XX. Net OPEB Obligation at End of Year (XVIII. + XIX.)
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 5
SECTIONI
PRINCIPAL RESULTS OF THE VALUATION
(continued)
Town of Lunenburg
Enterprise Employees & Retirees
Plan Liabilities as of July 1, 2010
Medical
Dental
73,010
73,010
73,010
67,637
47,282
154.4%
10,898
1
9,471
4,059
13,530
436
(942)
475
13,499
0.0%
10,898
13,499
24,397
0
47,282
0.0%
0
0
0
0.0%
Life
Sever
Entrprise
Total
73,252
73,252
73,252
67,861
47,282
154.9%
10,934
1
1
32
13
45
1
(3)
2
45
0.0%
36
45
81
PRIMORIS
Benefic Advisors, Inc,
===PAGE 12===
* these
retirees
arz
ineligible
for
Medicale
Commentary on Plan Experience and Contribution Amounts
1. Transition to GASB 45:
The Plan adopted and implemented GASB 45 ( Accounting and Financial
Reporting by Employers for Postemployment Benefits other than Pensions")
effective for the fiscal year ending June 30, 2009. As part of this implementation,
the Employer must recognize the Actuarial Accrued Liability for past service.
Under GASB 45, this amount may be amortized over a period not to exceed
thirty (30) years. The Unfunded Actuarial Accrued Liability at transition was
amortized over a 30 year period and a flat dollar amortization of the Unfunded
Actuarial Accrued Liability at transition. This approach yields an amortization
charge of $2,360,374. Additionally the Employer must recognize a "normal cost"
which represents the annual accrual of benefits for current active employees
toward their ultimate postemployment benefits. The normal cost for the 2011
fiscal year is $1,710,399. The combined amortization charge and normal cost
represent the Annual Required Contribution ("ARC") for the plan for the 2011
fiscal year. As the Employer has chosen to continue their "pay-as-you-go"
funding policy, this valuation must utilize a discount rate which represents
earnings on short term investments. For this discount rate, we have used 4.00%
per annum. The incremental cost of GASB 45 for the 2011 fiscal year beyond the
"pay-as-you-go" costs is $2,778,605.
2. Plan Experience:
Plan experience was slightly more favorable than expected. This is due to
slightly lower than expected increases in medical costs. This was offset
somewhat by a reduction in the rate used to discount plan liabilities from 5.0% to
4.0% to reflect lower yields available in the marketplace. Additionally, we
~ identified approximately Il retirees receiving medical coverage over the age of
L. 65 in non-Medicare integrated plans. If they were to move to Medicare
integrated plans, that would generate substantial savings to the Town on both a
cash and OPEB expense basis. These net actuarial gains are amortized into the
annual OPEB costs over a 15-year period (the segment of the actuarial loss
reflecting ОРЕВ costs in excess of employer contributions is offset by the ARC
Adjustment). The net impact of the plan experience is a slight decrease in the
annual OPEB cost.
Town of Lunenburg Other Postemployment Benefits Plas
Actuarial Valuation as of July 1, 2011
Pagaber 2011
PRIMORIS
Dedie Advis, bre.
===PAGE 13===
Effective Date
Plan Year
Eligibility
Credited Service
Participant Contributions
Benefits Offered
Normal Retirement Date
Early Retirement
SECTION II
SUMMARY OF PLAN PROVISIONS
July 1, 2008; GASB 45 is adopted.
July 1 through June 30.
• An employee shall become eligible to retire
. under this plan upon attainment of age 55 as an
active member and completion of 10 years of
service or an employee shall be able to retire
with 20 years of service regardless of age.
Elapsed time from date of hire to termination of
service date.
Retirees who are enrolled in the Medex 3 plan
shall pay 50% of stated monthly premiums. All
other retirees shall pay 25% of stated monthly
premiums for medical insurance. Retirees will
pay 50% of premiums for life insurance.
Comprehensive Medical Insurance offered
through Blue Cross of Massachusetts as well as
Group Term Life Insurance.
The normal retirement date is the first day of the
month following a participant's 65th birthday.
Early retirement is available for any participant
who has attained benefit eligibility.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 7
PRIMORIS
Benefit: Advisors, inc.
===PAGE 14===
SECTION III
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
A.
ACTUARIAL COST METHOD
The actuarial cost method used to calculate the costs and liabilities of the plan is the
Projected Unit Credit Actuarial Cost Method. Under this method, the normal cost
B.
iability is the actuarial present value of the projected benefit times the ratio of past
service to expected total service at retirement/termination
Actuarial gains and losses are calculated each year and amortized over a 15 year
period.
All employees who are plan participants on a valuation date are included in the
actuarial valuation.
ASSET VALUATION METHOD
The actuarial value of assets is equal to the Market Value of the Plan's assets.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 8
PRIMORIS
Denefit: Advisora, Ine.
comperpatara price sacs
===PAGE 15===
SECTION III
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
C. ACTUARIAL ASSUMPTIONS
We used the following assumptions in this year's actuarial valuation:
Pre- and Post-Retirement Mortality
Discount Rate
Employee Termination
It is assumed that both pre-retirement
and post-retirement mortality are
represented by the RP-2000 Mortality
Table for males and females.
4.00% per annum (previously 5.00%)
It was assumed that employees would
terminate employment in accordance
with the sample rates shown in the
following table:
Service
0
5
10
15
20
25
30
Non Public
Safety Male
15.00%
10.20%
5.40%
3.70%
2.00%
1.00%
0.00%
Non Public
Safety
Female
15.00%
10,20%
5.40%
3.70%
2.00%
1.00%
0.00%
Publla
Safety
1.50%
1.50%
1.50%
0.00%
0.00%
0.00%
0.00%
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 9
PRIMORIS
Benant: Advisors, inc.
===PAGE 16===
SECTION III
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
C. ACTUARIAL ASSUMPTIONS (continued)
Retirement Rates
It was assumed that the following
percentage of eligible employees would
retire each year:
....
Age
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
Non Public
Safety Male
0.00%
0.00%
0.00%
0.00%
0.00%
1.00%
1.00%
1.00%
1.00%
2.00%
2.00%
2.50%
2.50%
5.00%
6.50%
12.00%
20.00%
30.00%
25,00%
22.00%
40.00%
25.00%
25.00%
30.00%
30.00%
100.00%
100.00%
100.00%
No Publi
Safety
Female
0.00%
0.00%
0.00%
0.00%
0.00%
1,50%
1.50%
2.50%
2.50%
2.50%
5.50%
6.50%
6.50%
6.50%
6.50%
5.00%
13.00%
15.00%
12.50%
18.00%
15.00%
20.00%
20.00%
25.00%
20.00%
100.00%
100.00%
100.00%
Publio
Safety
1.00%
1.00%
1.00%
1.00%
1.00%
2.00%
2.00%
2.00%
5.00%
7.50%
15.00%
10.00%
10.00%
10.00%
15.00%
20.00%
20.00%
25.00%
25.00%
30.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 10
PRIMORIS
benefit Advisors, inc
Conge prosiers precio solita
===PAGE 17===
SECTION III
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND AÇTUARIAL ASSUMPTIONS
(continued)
C. ACTUARIAL ASSUMPTIONS (continued)
Healthcare Trend
It was assumed that healthcare costs
would increase in accordance with the
trend rates in the following table:
Participation Rats
Percent Married
:
!
Year
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
Medical
11.0%
10.0%
9.0%
9.8%
7.0%
6.0%
5.0%
5.0%
Dental
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
It was assumed that 80% of the
employees eligible to receive retirement
benefits would enroll in the retiree
medical and dental plans upon
retirement. For life insurance plans, it
was assumed that 80% of eligible
employees would elect coverage upon
retirement.
It was assumed that 80% of the
participants who elect retiree healthcare
coverage for themselves would also
elect coverage for a spouse upon
retirement. It was further assumed that
husbands are three years older than
their wives. For current retirees, the
actual census information was used.
Town of Lunenburg Other Postemployment Beneflts Plan
Actuarial Valuation as af July 1, 2010
October 2011
Page 11
PRIMORIS
Benefit: Advisors, fne.
===PAGE 18===
SECTION I!!
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
C. ACTUARIAL ASSUMPTIONS (continued)
Compensation Increases
Additional Comments
4.50% per year.
The values in this report reflect a closed
group and do not reflect any new
entrants after the valuation date.
For purposes of this valuation, retiree
contributions were assumed to increase
with the same trend rate as health care
claims.
:
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 12
PRIMORIS
Benefit Advisors, inc.
===PAGE 19===
SECTION II!
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
D. DEVELOPMENT OF REPRESENTATIVE MEDICAL PER CAPITA CLAIMS COSTS
Initial premiums were developed for the two classes of retirees (pre-65 and post-65).
These premiums were developed using fully insured premium rates in conjunction with
census data for the retired participants of the Town of Lunenburg's medical benefit
The pre-65 fully insured premiums are blended rates based on the combined experience
of active and pre-65 retired members. Therefore, there is an implicit employer subsidy
for the non-Medicare eligible retirees as the average costs of providing healthcare
benefits to retirees under age 65 is higher than the average cost of providing healthcare
benefits to active employees. The true per-capita cost for the non-Medicare retirees is
developed by adjusting the demographic differences between the actives and retirees to
reflect this implicit rate subsidy for the retirees. For the Medicare eligible retirees, the
premium rate will be used as the basis of the initial pre-capita cost without adjustment
as the rate reflects the actual claim experience of the post-65 retiree group.
Age graded and sex distinct premiums are utilized in this valuation, The premiums
developed by the preceding process are appropriate for the existing unique age and sex
distribution. Over the future years covered by this valuation, the age and sex
distribution will likely change. Therefore, the process "distributes" the average
premium over all age/ sex combinations and assigns a unique premium for each specific
age/sex combination. The age/ sex specific premiums more accurately reflect the
healthcare utilization and cost at that age.
Based on guidance provided by GASB on issues related to Medicare Part D payments to
State and Local Governments effective as of June 30, 2006, an employer should apply
the measurement requirements of GASB Statement No. 45 to determine the actuarial
accrued liabilities, the annual required contribution of the employer, and the annual
OPE cost without reduction for Retiree Drug Subsidy (RDS) payments. Therefore, the
impact of the RDS that is part of Medicare Prescription Drug Improvement and
Modernization Act of 2003 is not reflected in this report.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page I3
PRIMORIS
Benefit Advisors, inc.
===PAGE 20===
SECTION III
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
D. DEVELOPMENT OF REPRESENTATIVE MEDICAL PER CAPITA CLAIMS COSTS
I. CLAIMSCOSTSDEVELOPMENT - Based on Active & Retiree Incurred Clalme & Premlums
Number of Participants
Single
Two-Person
Family
Blue Care Elect PPO
.: 1
4
HMO Blue
93
188
BCBSM edex 3
BCBSManaged Blue
Total
Blue Care Elect PPO
HMO Blue
BCBS Medex 3
BCBS Managed Blue
2
37
139
39
192
*Per Contract Costs (monthly) - FY 2012
Single
Two-Person
Family
726.99
1,911.96
589.75
1,551.03
708.77
474.74
1,417.54
949.48
Gross Expected FY 2012 Non Medicare Incurred Premiums
Adjustment to reflect children's claims
Total Expected FY 2012 Non Medicare Incurred Premiums (adults only)
III. PRE-65 AND POST-65 PER CAPITA RETIREE ANNUAL CLAIM COSTS
Employer
Primary
Age 65
Average Age
8,669
8,726
4,257,783
(860,155)
3,397,628
Medicare
Primary
5,925
5,925
Total
5
281
8
76
370
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 14
PRIMORIS
fenefit Advisors, In
===PAGE 21===
SECTION II!
ACTUARIAL COST METHOD, ASSET VALUATION METHOD
AND ACTUARIAL ASSUMPTIONS
(continued)
D. DBVELOPMENT OF REPRESENTATIVE MEDICAL PER CAPITA CLAIMS COSTS
Age
25
30
70
45
70
75
80
85
75
80
85
90
III. BREAKDOWN OF CLAIM COSTS
3,397,626 Activeland Retired Clems (No Children) - Including Admiri strative fess & trend
1,061 Avergo for copla Clim inclusing Retention a Pooling)
ALL ACTIVE EMPLOYEES AND SPOUSES
Female
Number of Number of
Aging
Mele
Aged (F)
Aged (M)
Aging
Average
Average Age Related
Age Bracket
Females
Males
Factor
Factor
Claims
Clams
Claims
24 & Under
4
2
1.312
0.549
5,319
2,228
25,728
25 to 29
15
10
1.312
0.591
5,319
2,396
103,745
30 to 34
21
17
1.312
0.712
5,319
2,886
160,761
35 to 39
13
15
1.312
0.850
5,319
3,446
120,837
40 to 44
25
1,312
1.000
5,319
4,054
210,001
45 to 49
1.456
1,193
5,903
4,836
350,818
50 to 54
1,599
1.441
6,482
5,842
462,470
55 to 59
1.740
1.763
7,054
7,107
424,TM
60 to 64
65 to 69
15
1.968
2.102
7,978
8,522
255,478
4
2168
2.316
8,789
9,389
72,712
70 & Over
2
2.396
2.557
9,713
10,366
49.871
Total
204
181
2,236,098
ALL RETIREESAND SPOUSES- NOT MEDICARE ELIGIBLE
Femalo
Mae
Aged (F) Aged (M)
Number of Number of
Aging
Aging
Average
Average
Ago Related
Age Bracket
Females
Malco
Factor
Factor
Claims
44 & Under
1.312
1.000
6,319
Clams
Claims
4,054
45 to 49
1
1.456
1.193
6,003
4,836
6,482
10,739
50 to 54
1
1.599
1.441
5,842
12,324
55 10 59
1.740
1.753
7,054
7,107
70,805
60 to 64
1.068
2.102
7,978
8,522.
582,214
65 10 69
2.169
70 to 74
2.316
8,789
9,389
183,580
2395
2.557
9,713
10,366
99,742
75 to 79
2.593
2.769
10,512
11,226
119,202
80 10 84.
2.724
2.910
11,043
11,797
45,680
85 to 89
2.864
3.059
11,811
12,401
24,012
50 & Over
1
3.010
3.215
12,203
13,034
12.203
Tola
72
61
1,160,501
ALL RETIREESAND SPOUSES - MEDICARE ELIGIBLE
Fendle
Male
Aged (F)
Aged (M)
Number of Number of
Aging
Aging
Average
Average
Age Related
Age Bracket
Females
Melos
Factor
65 to 69
18
18
2,168
Facior
Cleims
Claims
Claims
2.316
6,925
5,025
70 to 74
14
2.396
2.557
5,925
0
5,925
75 ta 79
17
14
2.769
5,925
0
5,925
801084
10
10
2.724
85 lo 89
3
2.010
5,925
5,925
1
2.864
3,059
6,926
5,925
90 & Over
6
3.010
3.216
5,925
5,925
Tola
68
Grand Totals
344
295
3,397,499
• Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 15
PRIMORIS
Benefit Advisors, Inc.
===PAGE 22===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
The GASB Standards for accounting and financial reporting for postemployment
enefits other than pensions requires the following disclosures in the financia
tatements with regard to the retiree medical and life insurance benefits
1.
A DESCRIPTION OF THE RETIREE MEDICAL INSURANCE PROGRAM:
a.
Plan Type:
b. Administrator:
c. Eligibility:
d. Cost Sharing:
2. A DESCRIPTION OF THE DENTAL INSURANCE PROGRAM:
a. Plan Type:
Not offered
b. Administrator:
N/A
c. Eligibility:
N/A
d. Cost sharing:
N/A
3. A DESCRIPTION OF THE RETIRBE LIFE INSURANCE PROGRAM:
a. Plan Type:
b. Administrator:
c. Eligibility:
d. Cost sharing:
Group Term Life Insurance - $5,000
Town of Lunenburg
Same as above
Retirees shall pay 50% of premiums.
Tetaris vainbur o of rity t, mployment Benefits Plan.
Page be: 2011
PRIORIS
Be pap Advisor, Ine.
===PAGE 23===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
4.
RETIREE MEDICAL, DENTAL AND LIFE INSURANCE CONTRIBUTIONS:
Group
Medical
Dental
Life
Individual
25% to 50%
N/A
50%
Family
25% to 50%
N/A
N/A
5. FUNDING POLICY
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 17
PRIORIS
Benefit Advisors, Inc.
Corpuproars facial sidore
===PAGE 24===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
ANNUAL OPEB COST AND NET OPEB OBLIGATION
The Town's annual other postemployment benefit ("OPEB") cost (expense) is
calculated based on the annual required contribution of the employer ("ARC"), an
amount actuarially determined in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
(30) years. The following table shows the components of the Town's annual OPEB
costs for the fiscal year, the amount actually contributed to the plan and changes in
the Town's net OPBB obligation to the plan:
Annual Required Contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Amortization of Actuarial (Gains) / Losses
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPE Obligation - beginning of year
Net OPEB Obligation - end of year
$4,070,773
$253,480
($548,035)
$276,243
$4,052,461
$1,273,856
$2,778,605
$6,337,000
$9,115,605
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 18
PRIMORIS
Menefit Advisors, Inc.
===PAGE 25===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
The Town's annual OPEB cost, the percentage of the annual OPEB cost contributed
to the plan, and the net OPEB obligation for the 2011 fiscal year and the three
preceding years were as follows:
Fiscal Year
Ended
06/30/2008
06/30/2009
06/30/2010
06/30/2011
06/30/2012 (est.)
06/30/2013 (est.)
Annual OPEB
Cost
N/A
$4,182,000
$4,564,000
54,052,461
$4,261,435
$4,463,181
Expected
Employer
Payments
N/A
$1,146,000
$1,263,000
$1,273,856
Increase in OPEB
Obligation
N/A
$3,036,000
$3,301,000
$2,778,605
$1,393,752
$2,867,683
$1,490,130
$2,973,051
Schedule of Funding Progress;
Actuarial
Valuation
Date
07/01/2007
07701/2008
07/01/2009
07/01/2010
07/01/2011
(est.)
07/01/2012
(est.)
Actuarial
Value of
Assets
N/A
$0
$0
$0
$0
$0
Actuarial
Accrued
Liability
N/A
$40,584,000
$43,057,650
S42.455,413
$44,607,634
$46,822,997
Unfunded
Actuarial
Accrued
Liabillty
N/A
$40,584,000
$43,057,650
$42,455,413
$44,607,634
$46,822,997
Funded
Ratio
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Covered Payroll
N/A
$13,909,371
$13,909,371
$14,459,251
$15,109,917
$15,789,864
UAAL asa %
of Covered
Payroll
N/A
291.77%
309.56%
293.60%
295.22%
296.54%
PRIMORIS
Benefit Advisors, Inc.
===PAGE 26===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
Fiscal Year Ending June 30, 2011
OPEB obligation at beginning of year
Annual OPEB Cost
Expected Employer Payments
Increase in OPEB Obligation
OPEB obligation at end of year
APBO at beginning of year
OPEB obligation at beginning of year
Annua OPEB Cost
Expected Employer Payments
Increase in OPEB Obligation
OPEB obligation at end of year
APBO at beginning of year
OPEB obligation at beginning of year
Annual OPEB Cost
Expected Employer Payments
Increase in OPEB Obligation
OPEB obligation at end of year
APBO at beginning of year
Town Employees School Employees
& Retirees
& Retirees
1,440,758
4,885,308
925,107
254,687
3,113,810
1,019,169
.. 670,420
2,094,641
2,111,178
6,979,949
9,652,519
32,729,642
Enterprise
Employees &
Retirees
10,934
13,544
• 13,544
24,478
73,252
Fiscal Year Ending June 30, 2012
Town Employees
School Employees.
& Retirees
& Retirees
2,111,178
6,979,949
972,813
3,274,380
278,658
1,115,094
694,155
2,159,286
2,805,333
9,139,235
10,141,841
34,388,828
Enterprise
Employees &
Retirees
24,478
14,242
14,242
38,720
76,965
Fiscal Year Ending June 30, 2013
Town Employees School Employees
& Retirees
& Retirees
2,805,333
9,139,235
1,018,868
3,429,397
297,927
1,192,203
720,941
2,237,194
3,526,274
11,376,429
10,645,518
36,096,691
Enterprise
Employees &
Retirees
38,720
14,916
-
14,916
53,636
80,787
Total
6,337,000
4,052,461
1,273,856
2,778,605
9,115,605
42,455,413
Total
9,115,605
4,261,435
1,393,752
2,867,683
11,983,288
44,607,634
Total
11,983,288
4,463,181
1,490,130
2,973,051
14,956,339
46,822,997
Notaris untair 0 betry 2, mployment Benefits Pan
Page be 2021
PRIMORIS
===PAGE 27===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
7.
FUNDED STATUS AND FUNDING PROGRESS
As of July 1, 2010, the most recent valuation date, the plan was 0.00% funded. The
actuarial liability for benefits was $42,455,413, and the actuarial value of assets was
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into
the future. Examples include assumptions about future employment, mortality,
and the healthcare cost trend. Amounts determined regarding the funded status
of the plan and the annual required contribution of the employer are subject to
continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented
in the required supplementary information following the financial statements,
presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
8. EFFECT OF 1% CHANGE IN HEALTHCARE TREND RATES
In the event that healthcare trend rates were 1% higher than forecast and employee
contributions were to increase at the forecast rates, the Actuarial Accrued Liability
would increase to $51,949,978 or by 22.4% and the corresponding Normal Cost
would increase to $2,337,905 or by 36.7%. If such healthcare trend rates were 1%
less than forecast and employee contributions were to increase at the forecast rate,
the Actuarial Accrued Liability would decrease to $34,900,014 ox by 17.8% and the
corresponding Normal Cost would decrease to $1,244,223 or by 27.3%.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 21
PRIMORIS
Benefic Advisors, inc.
Care proline practol adaco:
===PAGE 28===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
ACTUARIAL METHODS AND ASSUMPTIONS
Projections of benefits for financial reporting purposes are based on the
members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
Actuarial Cost Method:
Projected Unit Credit
Investment Rate of Return:
4.00% per annum (previously 5.00%)
Healthcare Trend Rates
General Inflation Assumption:
Annual Compensation Increases:
Actuarial Value of Assets:
Amortization of UAAL:
Remaining Amortization Period:
Year
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
Medical
11.0%
10.0%
9.0%
9.8%
7.0%
6.0%
5.0%
5.0%
Dental
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
3.50% per annum
4.50% per annum
Market Value
Level dollar amortization over 30 years at
transition
28 years at July 1, 2010
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 22
PRIMORIS
Bonair an is a ne.
===PAGE 29===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
10.
Remaining Amortization Bases
The initial Actuarial Accrued Liability as of the date GASB 45 was adopted is
amortized as a component of the Annual Required Contribution ("ARC"). The
Unfunded Actuarial Accrued Liability at transition was amortized over a 30 year
period and a flat dollar amortization of the Unfunded Actuarial Accrued
Liability at transition. For years subsequent to the initial adoption of GASB 45,
cumulative gains/losses are amortized on a level dollar basis over a 15 year
period. Gains and losses arise from experience and contribution deficiencies and
excess contributions in relation to each year's ARC under GASB 45.
Changes in Unfunded Actuarial Liability Since Prior Valuation
Expected Unfunded Actuarial Liability
1. Actuarial Accrued Liability at prior valuation date
2. Actuarial Value of Assets at prior valuation date
3. Unfunded Actuarial Accrued Liability at prior valuation date [1. - 2.]
4. Normal Cost for prior periods
5. Employer Contribitions for prior periods
6. Interest to current valuation date
7. Expected Actuarial Accrued Liability [3. + 4. + 5. + 6.]
40,584,000
40,584,000
3,084,000
(2,409,000)
4,339,189
45,598,189
Actual Unfunded Actuarial Liability
8. Actuarial Accrued Liability at current valuation date
9. Actuarial Value of Assets at current valuation date
10. Unfunded Actuarial Accrued Liability at current valuation date [8. - 9.]
Net Actuarial (Gain) / Loss from Plan Experience [10. - 7.]
Contribution Deflciency or Excess Contributions
Total (Gain) or Loss to be amortized
42,455,413
42,455,413
(3,142,776)
6,337,000
3,194,224
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 23
PRIMORIS
===PAGE 30===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
Date Established Description
July 1, 2008
GASB 45 Adoption
July 1, 2010
Cumulative (Gain) / Loss
Total
Amortization of Initial Unfunded and Plan Experiencs under GASS 45
Initial
Remalning
Amortization
Balance at
Initial Amount
40,584,000
3,194,224
Period
Valuation Date
30
15
39,331,056
3,194,224
Remalning
Amortization
Period
28
15
42,525,280
Annual
Amortization
Payment
2,360,374
276,242
2,636,616
.. ..:
11.
Recognition of OPEB trust assets
The State of Massachusetts has recently passed legislation allowing municipal
entities to establish a trust for Other Than Postemployment Benefits ("OPEB")
under M.G.L. Chapter 32B, Section 20 for purposes of accumulating assets to pre-
fund the liabilities under GASB 45. To the best of our knowledge Town of
Lunenburg has not established an irrevocable trust for the purposes of
prefunding liabilities under GASB 45.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 24
PRIMORIS
Benefit: Advisors, Inc.
corparpestions. person solita
===PAGE 31===
EXHIBIT A
Financial Statement Disclosure
(As of July 1, 2010)
(continued)
12.
Impact of Section 9A1/2 of M.G.L. Chapter 32B
For employees who retire on or after January 1, 2011 whenever a retired
employee or beneficiary receives a healthcare premium contribution from a
overnmental unit in a case where a portion of the retiree's creditable service i
tributable to service in 1 ox more other governmental units, the first
governmental unit shall be reimbursed in full, in accordance with this paragraph,
by the other governmental units for the portion of the premium contributions
that corresponds to the percentage of the retiree's creditable service that is
attributable to each governmental unit. The other governmental units shall be
charged based on their own contribution rate or the contribution rate of the first
employer, whichever is lower.
For purposes of the valuation we have not attempted to value the impact of prior
governmental service at other entities in the State of Massachusetts for current
employees of the Town of Lunenburg nor have we attempted to value the impact
of prior Town of Lunenburg employees currently working at other governmental
entities in the State of Massachusetts.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of july 1, 2010
October 2011
Page 25
PRIMORIS
Benefit Advisors, Inc.
===PAGE 32===
EXHIBIT B
Reconciliation of Plan Participation
(As of July 1, 2010)
ACTIVE EMPLOYEES
•
A. Average Age at Hire
B. Average Service
C. Average Current Age
July 1, 2010
36.58
10.32
46.90
July 1, 2008
37.15
9.48
46.63
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 26
PRIMORIS
kenail wavisors, Inc.
Conpruptions. proaca skiers
.....
===PAGE 33===
EXHIBIT C
Projected Cash Flows (Open Group)
Total Medical, Dental & Life Insurance
Fiscal Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Total APBO
42,455,413
44,507,634
46,822,997
49,137,260
51,484,025
53,962,716
56,553,965
59,253,019
62,038,315
64,924,774
67,872,183
70,901,595
74,029,979
77,270,920
80,631,298
84,123,727
87,776,517
91,607,707
95,633,673
99,856,741
104,302,405
108,991,435
113,930,813
119,165,934
124,672,747
130,489,128
136,637,973
143,124,162
149,970,025
157,189,801
Normal Cost
1,710,399
1,808,229
1,895,267
1,981,706
2,086,527
2,197,781
2,306,541
2,407,401
2,527,077
2,529,986
2,749,522
2,882,781
3,024,214
3,172,272
3,331,592
3,508,353
3,694,877
3,894,334
4,096,326
4,313,896
4,540,236
4,774,439
5,029,339
5,274,429
5,544,696
5,825,731
6,115,818
6,420,004
6,741,078
7,080,591
Employer
Share of
Premiums/
Claims
1,273,856
1,393,752
1,490,130
1,595,095
1,684,337
1,781,685
1,856,449
2,008,194
2,140,697
2,294,029
2,447,644
2,502,231
2,755,231
2,913,757
3,074,690
3,232,471
3,387,999
3,546,587
3,713,901
3,880,744
4,043,624
4,217,015
4,377,524
4,563,099
4,747,136
4,932,978
5,134,768
5,342,218
5,568,430
5,800,378
Expected
Amortization
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,350,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
2,360,374
Interest on
Net OPEB
Obligation
253,480
364,624
479,332
598,254
721,191
849,670
983,844
1,123,545
1,267,998
1,417,717
1,571,406
1,729,881
1,893,842
2,063,898
2,240,337
2,423,771
2,626,172
2,837,909
3,059,750
3,291,851
3,535,267
3,790,957
4,059,307
4,342,167
4,638,722
4,950,588
5,278,737
5,623,543
5,986,011
6,272,358
Net
Amortizations
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
(271,792)
Expected
Annual OPEB Expected OPEB
Cost
Obligation
6,337,000
4,052,461
4,261,435
4,463,181
4,668,542
4,896,300
5,136,033
5,378,967
5,619,528
5,883,657
5,136,285
6,409,510
6,701,244
7,006,638
7.324,752
7,660,511
8,292,498
8,681,423
9,092,617
9,516,450
9,966,121
10,435,877
10,925,770
11.449.020
11,976,970
12,543,792
13,136,693
13,754,929
14,403,921
12,727,089
13,352,949
9,115,605
11,983,288
14,956,339
18,029,786
21,241,749
24,596,096
28,088,614
31,699,948
35,442,908
39,285,164
43,247,030
47,346,043
51,597,450
56,008,445
60,594,266
65,654,293
70,947,717
76,493,747
82,295,296
88,381,673
94,773,926
101,482,681
108,554,177
115,968,048
123,764,704
131,968,419
140,588,580
149,650,283
156,808,942
164,361,513
..
Excess
Employer
Plan Assets
Payments
at
(beyond
claims)
Beginning
of year
Unfunded
Accrued
Actuarial
Liability
('UAAL")
42,455,413
44,607,634
46,822,997
49,117,260
51,484,025
53,962,716
56,553,965
59,253,019
62,038,315
64,924,774
67,872,183
70,901,595
74,029,979
77,270,920
80,631,298
84,123,727
87,776,517
91,607,707
95,633,673
99,856,741
104,302,405
108,991,435
113,930,813
119,165,934
124,672,747
130,489,118
136,637,973
143,124,162
149,970,025
157,189,801
PRIMORIS
Benefit Advisors, Inc,
compier probin a, pasici
•Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Bage 27
===PAGE 34===
PRIMORIS
Benefit Advisors, Inc.
Carator pratiana prucial estra
Fiscal Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Total APBO
42,185,666
44,337,846
46,553,001
48,846,924
51,213,233
53,691,262
56,281,664
58,979,716
61,763,983
64,649,298
67,595,631
70,624,015
73,751,405
76,991,358
80,350,775
83,842,268
87,494,132
91,324,434
95,349,521
99,571,757
104,016,607
108,704,859
113,643,520
118,877,945
124,384,148
130,199,974
136,348,340
142,834,120
149,679,669
156,899,229
Normal Cost
1,705,508
1,803,221
1,890,195
1,976,589
2,081,316
2,192,484
2,301,188
2,402,073
2,521,725
2,624,720
2,744,311
2,877,621
3,019,081
3,167,174
3,326,515
3,503,281
3,689,813
3,889,258
4,091,251
4,308,808
4,535,137
4,769,338
5,024,214
5,269,316
5,539,575
5,820,601
6,110,686
6,414,873
6,735,945
7,075,457
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
ge 28
EXHIBIT C
Projected Cash Flows (Open Group)
(continued)
Medical Insurance
Employer
Share of
Premiums /
Expected
Claims
Amortization
1,258,630
2,345,377
1,378,567
2,345,377
1,475,001
2,345,377
1,580,020
2,345,377
1,669,340
2,345,377
1,766,762
2,345,377
1,871,586
2,345,377
1,993,344
2,345,377
2,125,877
2,345,377
2,279,196
2,345,377
2,432,782
2,345,377
2,587,348
2,345,377
2,740,334
2,345,377
2,898,827
2,345,377
3,059,724
2,345,377
3,217,460
2,345,377
3,372,925
3,531,461
2,345,377
2,345,377
3,698,698
2,345,377
3,865,475
2,345,377
4,028,279
2,345,377
4,201,582
2,345,377
4,362,018
2,345,377
4,547,495
2,345,377
4,731,440
2,345,377
4,917,194
5,118,889
2,345,377
2,345,377
5,326,234
2,345,377
5,552,335
5,784,165
. Interest on
Net OPEB
Obligation
251,870
362,832
477,344
596,058
718,775
847,018
980,940
1,120,374
1,264,550
1,413,979
1,567,371
1,725,540
1,889,185
2,058,914
2,235,017
2,418,102
2,620,074
2,831,368
3,052,749
3,284,376
3,527,300
3,782,481
4,050,306
4,332,621
4,628,614
4,939,899
5,267,446
5,611,631
5,973,457
6,259,740
Net
Amortizations
(270,055)
(270,056)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
(270,066)
Expected
Annual OPEB
Cost
4,032,689
4,241,364
4,442,850
4,647,958
4,875,402
5,114,813
5,357,439
5,597,758
5,861,586
6,114,010
6,386,993
6,678,472
6,983,577
7,301,399
7,636,843
8,266,760
8,655,264
9,066,003
9,489,377
9,938,561
10,407,814
10,897,196
11,419,897
11,947,314
12,513,566
13,105,877
13,723,509
14,371,881
12,709,402
13,335,197
Expected
Obligation
6,296,737
9,070,796
11,933,593
14,901,442
17,969,380
21,175,442
24,523,493
28,009,346
31,613,760
35,349,469
39,184,283
43,138,494
47,229,618
51,472,861
55,875,433
50,452,552
55,501,852
70,784,191
76,318,733
82,109,412
88,182,498
94,562,033
101,257,647
108,315,526
115,715,345
123,497,471
131,686,154
140,290,774
149,336,421
156,493,488
164,044,520
Excess
Employer Plan Assets
Payments
at
(beyond
Beginning
claims)
of year
Unfunded
Accred
Actuarial
Liability
("UAAL")
42,185,666
44,337,846
46,553,001
48,846,924
51,213,233
53,691,262
56,281,664
58,979,716
61,763,983
64,649,298
67,595,631
70,624,015
73,751,405
76,991,358
80,350,775
83,842,268
87,494,132
91,324,434
95,349,521
99,571,757
104,016,607
108,704,859
113,643,520
118,877,945
124,384,148
130,199,974
136,348,340
242,834,120
149,679,669
156,899,229
===PAGE 35===
ЕХНІВПІ С
Projected Cash Flows (Open Group)
(continued)
Dental Insurance
Employer
Share of
Premiums /
Claims
Expected
Amortization
Interest on
Net OPE
Obligation
Net
Amortizations
Expected
Annual OPEB
Cost
Expected
ОРЕВ
Obligation
Fiscal Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total APBO
Normal Cost
PRIMORIS
Benefic Advisors, Inc.
Town of Lunenburg Other Postemployment Benefits Plan
tuarial Valuation as of July 1, 2010
Excess
Unfunded
Employer Plan Assets Accrued
Payments
at
Actuarial
(beyond
Beginning
Liability
claims)
of year
("UAAL")
:
===PAGE 36===
Fiscal Year
Total APBO
Normal Cost
2011
269,747
4,891
2012
269,788
5,008
2013
269,996
5,072
2014
270,336
5,117
2015
270,792
5,231
2016
271,454
5,297
2017
2018
272,301
5,353
273,303
5,328
2019
274,332
5,352
2020
275,476
5,266
2021
276,552
5,211
2022
277,580
5,160
2023
278,574
5,133
2024
279,562
5,098
2025
280,523
5,077
2026
281,459
5,072
2027
2028
282,385
2029
283,273
5,064
284,152
5,076
5,075
2030
5,088
2031
284,984
285,798
2032
286,576
5,099
2033
287,293
5,101
2034
287,989
5,125
5,113
2035
2036
288,599
5,121
289,144
5,130
2037
5,132
2038
289,633
290,042
5,131
2039
290,356
2040
290,572
5,133
5,134
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010'
Öctober 2011
Age 30
14,820
14,833
14,862
14,883
14,897
14,930
14,966
15,011
15,074
15,126
15,203
15,269
15,345
15,433
15,506
15,604
15,696
15,784
15,879
15,984
16,095
16,213
EXHIBIT C
Projected Cash Flows (Open Group)
(continued)
Life Insurance
Expected
Amortization
14,997
14,997
14,997
14,997
14,997
14,997
24,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
14,997
Interest on
Net OPER
Obligation
1,610
1,792
1,988
2,196
2,416
2,652
2,904
3,171
•3,448
3,738
4,035
4,341
4,657
4,984
5,320
5,669
6,098
6,541
7,001
7,475
7,967
8,476
9,001
9,546
10,108
10,689
11,291
11,912
12,554
12,618
Net
Amortizations
Expected
Annual OPE
Cost
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(1,726)
(2,726)
(1,726)
(1,726)
19,772
20,071
20,331
20,584
20,898
23,220
21,528
21,770
22,071
22,275
22,517
22,772
23,061
23,353
23,668
25,738
26,159
26,614
27,073
27,560
28,063
28,574
29,123
29,656
30,226
30,816
31,420
32,040
17,687
17,752
PRIMORIS
Benefit Advisors, Inc.
Conster puttera, prasical solutiors
Excess
Employer
Payments
(beyond
claims)
72,603
79,268
86,188
93,439
100,881
108,536
216,425
124,589
133,012
141,714
152,441
163,526
175,014
186,884
199,175
211,893
225,034
238,651
252,703
267,233
282,265
297,806
313,862
315,454
316,993
Unfunded
Plan Assets
Accrued
at
Actuarial
Beginning
Liability
of year
("'UAAL")
269,747
269,788
269,996
270,336
270,792
271,454
272,301
273,303
274,332
275,476
276,552
277,580
278,574
279,562
280,523
281,459
282,385
283,273
284,152
284,984
285,798
286,576
287,293
287,989
288,599
289,144
289,633
290,042
290,356
290,572
===PAGE 37===
EXHIBIT D
GLOSSARY
Accrual Accounting - A system of accounting in which revenues are recorded when
earned and outlays are recorded when goods are received or services performed, even
though the actual receipt of revenues and payment for goods or services may occur, in
whole or in part, at a different time.
Actuarial Value of Assets - The value of cash, investments, other assets and property
belonging to an OPEB trust, pension fund or similar entity, as used by the actuary fox
the purpose of actuarial valuation. Some funds may be restricted for other purposes,
and "smoothing" of investment gains and losses often make the actuarial value of assets
different from the market value of assets.
Annual Required Contribution - Normal Cost plus an amortization of the funding
shortfall over a period of no more than 30 years.
Cash Basis Accounting - A system of accounting in which revenues are recorded when
actually received and outlays are recorded when payment is made.
Discount Rate - The interest rate used to calculate present value of a series of future
cash flows. Under GASB 45, the rate should be "long term expected yield on the
investments that are expected to be used to pay benefits as they come due. These would
be plan investments for a funded plan, the employer's investments for a pay as you go
plan [e.g. short term county investment pool], or a weighted average of expected plan
FASB - Financial Accounting Standards Board. "Since 1973, the Financial Accounting
Standards Board (FASB) has been the designated organization in the private sector for
establishing standards of financial accounting and reporting".
GASB - Government Accounting Standards Board. "The Governmental Accounting
Standards Board (GASB) was organized in 1984 by the Financial Accounting
Foundation (FAF) to establish standards of financial accounting and reporting for state
and local governmental entities. Its standards guide the preparation of external financial
reports of those entities."
GFOA - Government Finance Officers Association. "GFOA is the professional
association of state/provincial and local finance officers in the United States and
Canada, and has served the public finance profession since 1906. Approximately 16,000
GROA members are dedicated to the sound management of government financial
resources."
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 31
PRIMORIS
jenefit Ativisors, In
deprobert, practicad
===PAGE 38===
EXHIBIT D
GLOSSARY
(continued)
Implicit Subsidy - "'The difference between a premium rate charged to retirees for a
particular benefit and the estimated rate that would have be applicable to those retirees
if that benefit was acquired for them as a separate group."
Irrevocable Contribution - "Irrevocably transferred assets to a qualifying trust, or
equivalent arrangement, in which plan assets are dedicated to providing benefits to
retirees and their beneficiaries in accordance with the terms of the plan and are legally
protected from creditors of the employer(s) or plan administrator. The preceding
criteria preclude counting as [irrevocable] contributions (a) designations of net assets of
a governmental or proprietary fund to be used for OPEB or (b) internal transfers of
assets to a separate governmental or proprietary fund for the same purpose. Rathes,
such actions should be regarded as earmarking of employer assets."
Level Dollar Amortization - Funding a shortfall in OPEB assets with equal dollar
payments over a designated number of years (no more than 30 years). The present
value of the level payments equals the present value of unfounded liabilities, the
UAAL.
Level Percent of Payroll Amortization - Funding a shortfall in OPEB assets as a level
percent of payroll over a designated number of years (no more than 30 years). The
present value of the payments equals the present value of unfounded liabilities, the
UAAL. Level percent of payroll typically has lower payments in the early years than
level dollar amortization. When using level payroll amortization, employee count is
assumed to be constant, and the payroll differences arise from overall wage trends.
Normal Cost - The actuarially determined present value contribution needed to fund
benefits which are earned for employee service rendered during the current year.
Normal cost depends on many factors, including the interest rate used to discount
future cashflows, and expected inflation.
OPEB - Other Post Employment Benefits
OPEB Trust - An entity other than a pension or retirement system which manages
OPEB assets. In many respects it is similar to a pension fund for OPEB. For reasons
detailed in GASB 45, contributions to an OPEB trust should be irrevocable in order to
obtain the most favorable accounting treatment.
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
Page er 2012
PRIMORIS
Benefit Atrion.
===PAGE 39===
EXHIBIT D
GLOSSARY
(continued)
Pay-as-you-go funding - Paying benefits (such as pensions or OPEB) on a cash basis,
with no money set aside for future liabilities which are already incurred.
POB - Pension Obligation Bond. Generally yielding taxable interest, POBs are issued to
help fund a previously unfunded ot underfunded pension liability.
UAAL - Unfunded Accrued Actuarial Liability, Actuarial Accrued Liability minus the
Actuarial Value of Assets.
..:
Town of Lunenburg Other Postemployment Benefits Plan
Actuarial Valuation as of July 1, 2010
October 2011
Page 33
PRIMORIS
Benefit: Advisors, inc.
Couple postd stri
===PAGE 40===
Year
1983
1984
1980
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
06STE
|2007
2008
2009
2010
2011
Type
General Override
Amount
$93, 387.00
| General Override
Debt Exclusion
|$106,090.00
$111,450.00
5/6/89 - General Override
7/27/89 - General Override
Nine (9) Debt Exclusion
$489,199.00
$308,000.00
[Traffic Signal - $45K
Pumper-$180K (all eise failed)
| General Override
| General Override
[Four (4) Debt Exclusion
General Override
Five (5) Debt Exclusion
Twelve (12) Debt Exclusion
$81,949.00
I$236,447.00
All Failed
$176.494.00
All Failed
Landfill-$800K, Middle Sch roof $100k
Steam pipe $38k; all else failed
|General Override Nov 16, 1993
$100,331.00
Exempt
Capital Outlay $633,200.
General Override-School budget $862,047 (ballot) - $654,408 (ATM)
Debt Exclusion
Land-Pleasant St-$450,000.
TResult
[Failed
Failed
F. 769/1816
F. 1336/1795
P. 1391/1148
P.500/387
P.481/398
F. 926/972
F. 864/1196
TE. 736/1352
P. 398/376
P. 577/355
Y-1003,N-946
P. 745/523
Debt Exclusion-failed in May
Debt Exclusion
Debt Exclusion
[Primary School Building-STM Dec. 1st
Public Safety Building
[Library Bldg; Elem. School Repairs
P. 460/254
P. 1668/1222
IP. 1414/649
Six (6) Debt Exclusion
Athletic Fields
General Override
Athletic Fields/Bleachers only
$450,000
$2.7 Million
TY-965, N-933
Y-2651.N-1594
Y-389, N-1936
===PAGE 41===
TOWN OF LUNENBURG
BOARD OF SHRICEMEN
17 Main Street, PO Box 185
Lunenburg, MA 01162-0186
David J. Matthews, Chair
Thomas A. Alonzo, Vice Ohair
Paula J. Bertram, Member
Steven M. deBettencourt, Member
Carl "Ernio" Sund, Member
BURO
*
18
CORP
978-882-4144, FAX 978-582-4148
Office Houra
Mon, Wed, Thu. 8:00AM - 4:00PM
Tues. 8:00AM - 8:80PM
Exi, 8:00 AM - 19:80 PM
Kerry A. Speidel
Town Manager
Chief Administrative Assistant
In accordance with Massachusetts General Law, Chapter 44 Section 31D, the Finance
Committee, along with the Town Manager authorized expenditures in excess of available
appropriations for snow and ice removal, provided that the expenditures are approved by
the Board of Selectmen.
Vote taken on
in favor
opposed
Approved:
Approved:
Mark Erickson, Chair
Finance Committee
Kerry A. Speidel
Town Manager

========================================================================================
DOCUMENT : 2012-01-26-agenda-2339.txt
BOARD    : finance-committee
DATE     : 2012-01-26
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-01-26-agenda-2339.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_01262012-2339
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on January 26, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Discussion 
•  New Communications 
 
3. Review Minutes – 9/22/2011, 10/18/2011, 12/5/11,  1/12/12 
 
4. Committee / Department Reports  
Capital Planning – Brian Laffond, DPW – Martha McDo nald,  Library – Barbara Reynolds, 
Monty Tech – Barbara Reynolds, Public Safety – Scot t Gile, Service Level Team – Mark 
Erickson / John Male, Sewer Commission – John Male,  Council on Aging – John Male, 
Schools/School Building/Regionalization – Mark Eric kson, School Reconfiguration – Brian 
Laffond / Barbara Reynolds 
 
5. New Business –  
•  Town Accountant Quarterly Update 
•  Town Manager update 
 
6. Old Business 
•  FY13 Budget General Discussion 
 
7. Next Meetings  
•  February 9, 2012, 7:00 p.m. – Regularly Scheduled Meeting - Town Hall 
 
8. Adjournment

========================================================================================
DOCUMENT : 2012-01-26-minutes-2339.txt
BOARD    : finance-committee
DATE     : 2012-01-26
KIND     : minutes
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-01-26-minutes-2339.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_01262012-2339
========================================================================================

===OCR macOS Vision===
===PAGE 1===
Town of Lunenburg
Finance Committee:
Mark Erickson, Chairman
Brian Laffond, Vice-Chairman
Martha McDonald, Secretary
Barbara Reynolds
John Male
Scott Gile
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
Lunenburg Finance Committee
Minutes
January 26, 2012
3/27/12
Location:
Present:
Attendees:
Town Hall
Brian Laffond, Martha McDonald, Mark Erickson, John Male, Barbara Reynolds, Scott Gile
Kerry Speidel
1) Meeting called to order by the Chairman at 7:00 PM; Town Accountant will not be present tonight, trying to reschedule
for the first meeting in February
2) Communications
•
Winter Bulletin from Powers & Sullivan, CAs, available
3) Minutes Review
Minutes reviewed for 9/22/11; BR made motion to accept; BL seconded; all approved
Minutes reviewed for 10/18/11; BR made motion to accept; SG seconded; all approved
•
Minutes reviewed for 1/12/12; BR made motion to accept; BL seconded; all approved
4) Committee/Department Reports
Capital Planning Committee - met last Thursday with intention to prioritize projects, HANDOUT: Prioritization of
Capital Plan FY13; top priority project is $800K for roads with additional $370K from state aid for total of $1.2M
•
Monty Tech - VIP Day was held for 400 middle school students; HANDOUT: Monty Tech Update
Schools - passed a three year bus contract inclusive of fuel; teachers union is continuing to negotiate
•
•
DPW - moved in administrative offices on Monday; garage doors expected mid-February
Service Level Team - had a discussion on our willingness to borrow for capital items; members stated there are no
items on the capital list that FinCom would support borrowing funds to pay for; last meeting started talking about
priorities and the general need for an override; Committee went through the priorities and discussed; Governor's
budget has higher Chapter 70 dollars than expected (about $500K); next Service Level Team meeting scheduled on
February 3
5) Town Manager Updates
• Summer Street project reviewed at Selectmen's meeting; nine property owners attended the meeting; Town Manager
would like to use some of the $300K funds received from the Tri-Town Project to get the Summer Street project
started; the funds would be used for full design costs and would benefit that area of town; construction costs would
6) Old Business
• FY13 Budget General Discussion - preliminary budget on 2/23/12 by Town Manager; schedule budget hearings
(propose meeting weekly during March to hear all department heads); Town Manager will propose a schedule;
tentative workshop for Saturday, March 24 at 9 AM with final letter drafted in that meeting
7) Adjournment - BL made a motion to adjourn at 8:31 PM, JM seconded; all in favor
Minutes respectfully submitted by Martha McDonald
Page 1 of 1
===PAGE 2===
Capital Plan FV13
Prioritization
Priority 1
DPW Roadway
TOTAL
Priority 1A
1. Technology Dept.
12. School Dept.
3. School Dept.
16. DPW Dept.
17. DPW Dept.
8. School Dept.
19. Police Dept.
10 School Dept.
11, Council on Aging
Priority 2
1. Library
2. School Dept.
TOTAL
Addendum:
Technology
Computers
Fire Dept.
Police Dept.
Bd. Health
Building Dept.
ConComm
Council Aging
Town Clerk
Technology
Printers
Select Board
Library
Council Aging
Accounting
Assessors
TOTAL
$
$
$
$
$
$
$
$
$
$
$
800,000.00 $1.2 million partly funded by Chapter 90
800,000.00
75,517.00 Replacements and Special Items
107,920.00 Passios roof re-seaming
30,750.00 THMS gym roof snow guards
18,000.00 Ritter-Front section roofing
35,000.00 Repair Engine 4
35,000.00 4x4 pickup with plow
40,000.00 1 ton pick-up w/plow
33,000.00 replace pick-up w/plow
12,000.00 equip-six tasers
64,500.00 district wide mobile media carts
12,800.00 refrigerator, oven, steam table
464,487.00
15,900.00 Paint and repair front of building
24,000.00 THMS-repair of drop ceiling
39,900.00
$
$
$
$
usin
$
$
$
$
$
950.001 computer replacement
3,800.00 4 computer replacement
950.00 1 computer replacement
1,900.00 2 computer replacement
1,500.00 1 computer replacement
4,350.00 4 computer replacement
950.001 computer replacement
1,500.00 1 computer replacement
300.00 1 printer replacement
700.00 2 printer replacement
700.00 2 printer replacement (1 public)
300.00 1 printer replacement
300.001 printer replacement
18,200.00 (Priority 1A above)
===PAGE 3===
Capital Plan FY13 (pg 2)
The remaining budget is for specialized equipment for Police, Fire and other Dept.
Fire Dept.
Fire Dept.
Fire Dept.
Police Dept.
Police Dept.
Police Dept.
Police Dept.
Police Dept.
Police Dept.
/Police Dept.
Library
Town Hall
Town Hall
Town Hall
Town Hall
Town Hall
TOTAL
$
$
$
$
$
$
$
$
$
$
$
400.00 camera
2,000.00 TV W/PC
125.00 wireless access point
5,015.00 facial recognition camera
4,950.00 replacement IMC server
8,788.00 2 toughbooks
13,951.00 replacement 16 channel DVR
1,845.00 bar code scanner for IMC
737.00 supplies & label printer for IMC
1,540.00 drivers' license scanner
700.00 projector
6,654.00 Munis server
567.00 SQL server for Munis
3,800.00 Munis DB conversion
1,801.00 switches
4,444.00 rewire cat5
57,317.00 (Priority 1A above)
GRAND TOTAL
1,304,387.00 - $800.000.00 (DPW roadway) = $504,387.00
Requests not included in recommended FY13 Plan
Council on Aging
Council on Aging
Council on Aging
DPW
Library.
Library
School
School
Select Board
Select Board
Select Board
Select Board
Select Board
DPW
$
$
$
$
$
$
en us
$
1,200.00 Banquet tables
10,000.00 Prefab galvanized stairs
150,000.00 Parking Lot
60,000.00 Emergency generator
10,000.00 Replace front entry door
29,800.00 Amt for full painting (latest est.)
39,000.00 Repair tennis courts
24,000.00 THMS drop ceiling replace
1,258.00 2 Ipads
158.00 Ipads w. protection plans 5
2,890.00 5 Ipads w protection plans
6,869.00 Town Hall Smart Board
6,869.00 Ritter Bldg.Smart Board
2,000.00 Server
budget item
re-review plan
re-review plan
Low need
review solution
1 year cost
school replace plan
lower priority
withdrawn-cost
withdrawn-cost
withdrawn-cost
withdrawn-cost
withdrawn-cost
purchased
Capplan/FY13/Townwide/01.19.12prioritization

========================================================================================
DOCUMENT : 2012-02-09-agenda-2340.txt
BOARD    : finance-committee
DATE     : 2012-02-09
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-02-09-agenda-2340.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02092012-2340
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on February 9, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Discussion 
•  New Communications 
 
3. Review Minutes –12/5/11, 1/26/2012 
 
4. Committee / Department Reports  
Capital Planning – Brian Laffond, DPW – Martha McDo nald,  Library – Barbara Reynolds, 
Monty Tech – Barbara Reynolds, Public Safety – Scot t Gile, Service Level Team – Mark 
Erickson / John Male, Sewer Commission – John Male,  Council on Aging – John Male, 
Schools/School Building/Regionalization – Mark Eric kson, School Reconfiguration – Brian 
Laffond / Barbara Reynolds 
 
5. New Business –  
•  Town Accountant Quarterly Update 
•  Town Manager update 
 
6. Old Business 
•  FY13 Budget General Discussion 
 
7. Next Meetings  
•  February 23, 2012, 7:00 p.m. – Town Hall - Joint M eeting with BOS to receive Town 
Manager’s budget recommendation  
•  March 1, 8, 15, 22,  7:00 p.m. – Town Hall – Depar tment budget hearings 
 
8. Adjournment

========================================================================================
DOCUMENT : 2012-02-09-minutes-2340.txt
BOARD    : finance-committee
DATE     : 2012-02-09
KIND     : minutes
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-02-09-minutes-2340.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_02092012-2340
========================================================================================

===OCR macOS Vision===
===PAGE 1===
Town of Lunenburg
Finance Committee:
Mark Erickson, Chairman
Brian Laffond, Vice-Chairman
Martha McDonald, Secretary
Barbara Reynolds
John Male
Scott Gile
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
Lunenburg Finance Committee
Minutes
February 9, 2012
Eudisa
110110
Location:
Present:
Town Hall
Brian Laffond, Martha McDonald, Mark Erickson, John Male, Barbara Reynolds, Scott Gile
1) Meeting called to order by the Chairman at 7:02 PM; Town Manager did not attend due to a conflict; Town Accountant
did not attend due to close not complete
2) Communications
• February issue of "The Beacon"
• Linda Douglas is ready for FY11 Town Report inputs; all deadlines needed by 2/24/12; FinCom input may want to
address the challenges of FY11
3) Minutes Review
• Minutes reviewed for 12/5/11; BR made motion to accept; JM seconded; all approved
• Minutes reviewed for 1/26/12; will edit
4) Committee/Department Reports
• Monty Tech - upcoming Open House and Superintendent's dinner
• Library - one additional hire made for 8 hours; HANDOUT: Library Updates
Schools - ME now on School Building Committee as Vice-Chair; now in our MSBA eight-step process; formula starts at
53% reimbursement and you can qualify for additional percentage points; hoping to get up to 60%; feasibility and
design study cost must be funded by town until project is approved and then it would be rolled into overall project
cost; reviewed conditions of current buildings, i.e. high school built in 1955 and would require $11M to bring up to
standard; TCP built in 1952
•
DPW - moved in administrative offices on Monday; garage doors expected mid-February
Service Level Team - meeting held last Friday; school budget should be level service minus $1.2M; FinCom putting
together five year chronology of steps taken to balance budget; next meeting February 27
Sewer - Fitchburg rate increase much higher than our 20% increase
5) New Business
• HANDOUT: Schedule for Hearings from Town Manager; should provide guidance to Department Heads on how to
target their presentations; ask each Department Head to discuss where the departments will endure the most pain
with a balanced budget
6) Adjournment - SG made a motion to adjourn at 8:58 PM, BR seconded; all in favor
Minutes respectfully submitted by Martha McDonald
Page 1 of 1
===PAGE 2===
Finance Committee
Fiscal 13 Budget Hearings
Town Hall
February 23, 2012
7:00 p.m.
Town Manager's budget recommendations (Joint with BOS)
March 1, 2012
7:00 p.m.
8:00 p.m.
8:30 p.m.
Department of Public Works
Sewer Commission
Unclassified, Debt Service, Other
March 8, 2012
7:00 p.m.
7:30 p.m.
8:15 p.m.
Council on Aging
Police Department
Fire Department
March 15, 2012
7:00 p.m.
8:00 p.m.
Monty Tech
School Department
March 22, 2012
7:00 p.m.
Land Use [Planning, Building, Conservation, Board of Health]
7:45 p.m.
Library
8:15 p.m.
Administration [ BOS, Town Manager, Assessor's, Town Clerk,
Treasurer-Collector]
All meetings to be televised on PATV

========================================================================================
DOCUMENT : 2012-02-23-agenda-2341.txt
BOARD    : finance-committee
DATE     : 2012-02-23
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-02-23-agenda-2341.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_02232012-2341
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on February 23, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Comments 
•  New Communications 
 
3. Presentation of Town Manager’s Budget Recommenda tion 
 
4. Next Meetings  
•  March 1, 8, 15, 22,  7:00 p.m. – Town Hall – Depar tment budget hearings 
 
5. Adjournment

========================================================================================
DOCUMENT : 2012-02-23-minutes-2341.txt
BOARD    : finance-committee
DATE     : 2012-02-23
KIND     : minutes
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-02-23-minutes-2341.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Minutes/_02232012-2341
========================================================================================

===OCR macOS Vision===
===PAGE 1===
Town of Lunenburg
Finance Committee:
Mark Erickson, Chairman
Brian Laffond, Vice-Chairman
Martha McDonald, Secretary
Barbara Reynolds
John Male
Scott Gile
17 Main Street, P.O. Box 135
Lunenburg, MA 01462-0135
978.582.4139
FAX 978.582.4148
Lunenburg Finance Committee
Minutes
February 23, 2012
nitrudesor
3/27/12
Location:
Present:
Attendees:
Town Hall
Brian Laffond, Martha McDonald, Mark Erickson, John Male, Barbara Reynolds, Scott Gile
Kerry Speidel
1) Meeting called to order by the Chairman at 7:02 PM; FinCom Chair introduced FinCom members and outlined duties;
announced there is currently one opening on the committee
2) Town Manager presented Preliminary Annual Budget for FY2013 - HANDOUT: 1) Preliminary Annual Budget FY13 (the
required balanced budget); 2) Appendix Documents; 3)Copies of slides
3) Adjournment - BR made a motion to adjourn, ME seconded; all in favor
Minutes respectfully submitted by Martha McDonald

========================================================================================
DOCUMENT : 2012-03-01-agenda-2342.txt
BOARD    : finance-committee
DATE     : 2012-03-01
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-03-01-agenda-2342.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_03012012-2342
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on March 1, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Comments 
•  New Communications 
 
3. Department Budget Meetings 
7:00 p.m. Department of Public Works 
8:00 p.m. Sewer Commission 
8:30 p.m. Unclassified, Debt Service, Other 
 
4. Next Meetings  
•  March 8, 15, 22,  7:00 p.m. – Town Hall – Departme nt budget hearings 
 
5. Adjournment

========================================================================================
DOCUMENT : 2012-03-08-agenda-2343.txt
BOARD    : finance-committee
DATE     : 2012-03-08
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-03-08-agenda-2343.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_03082012-2343
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on March 8, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Comments 
•  New Communications 
 
3. Department Budget Meetings 
7:00 p.m. Council on Aging 
7:30 p.m. Police Department 
8:15 p.m. Fire Department 
 
4. Budget Subcommittee report and discussion 
 
5. Next Meetings  
 
•  March 15, 22,  7:00 p.m. – Town Hall – Department budget hearings 
 
6. Adjournment

========================================================================================
DOCUMENT : 2012-03-15-agenda-2344.txt
BOARD    : finance-committee
DATE     : 2012-03-15
KIND     : agenda
OUR COPY : https://lunenburgbudgetproject.org/docs/minutes/text/finance-committee/2012-03-15-agenda-2344.txt
TOWN PDF : https://www.lunenburgma.gov/AgendaCenter/ViewFile/Agenda/_03152012-2344
========================================================================================

===PAGE 1===
    
NOTICE of  FINANCE COMMITTEE MEETING  
on March 15, 2012  
7:00 PM  
Town Hall  
 
 
 
AGENDA  
 
1. Open Meeting  
 
2. Communications – 
•  Public Comments 
•  New Communications 
 
3. Department Budget Meetings 
7:00 p.m. Monty Tech Regional Vocational School 
7:30 p.m. Capital Planning Committee, FY2013 Capital Plan and 5-Year Capital Plan 
8:00 p.m. Lunenburg Public Schools 
 
4. Budget discussion 
 
5. Next Meetings  
 
•  March 22,  7:00 p.m. – Town Hall – Department budg et hearings 
 
6. Adjournment