City of Oakwood, Ohio - Notes to the Basic Financial Statements

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	Beginning			Ending
	Balance	Additions	Deletion	Balance
Business-Type Activities
Capital Assets, not being depreciated:
Land	$330,320	$0	$0	$330,320
Construction In Progress	460,879	909,495	1,370,374	0
Total Capital Assets, not being depreciated	791,199	909,495	1,370,374	330,320
Capital Assets, being depreciated:
Buildings and Improvements	1,144,586	0	0	1,144,586
Equipment and Vehicles	4,354,699	312,784	0	4,667,483
Infrastructure	4,818,811	1,370,374	0	6,189,185
Totals at Historical Cost	11,109,295	2,592,653	1,370,374	12,331,574
Less Accumulated Depreciation:
Building and Improvements	820,197	16,811	0	837,008
Equipment and Vehicles	3,193,429	127,323	0	3,320,752
Infrastructure	3,604,251	55,973	0	3,660,224
Total Accumulated Depreciation	7,617,877	200,107	0	7,817,984
Business-Type Activities Capital Assets, Net	$3,491,418	$2,392,546	$1,370,374	$4,513,590

Note 5 – Defined Benefit Pension Plans

The Statewide retirement systems provide both pension benefits and other postemployment benefits (OPEB).

Net Pension Liability/Net OPEB Liability

Pensions and OPEB are a component of exchange transactions - between an employer and its employees - of salaries and benefits for employee services. Pensions are provided to an employee - on a deferred-payment basis - as part of the total compensation package offered by an employer for employee services each financial period.

The net pension/OPEB liability represents the City’s proportionate share of each pension/OPEB plan’s collective actuarial present value of projected benefit payments attributable to past periods of service, net of each pension/OPEB plan’s fiduciary net position. The net pension/OPEB liability calculation is dependent on critical long-term variables, including estimated average life expectancies, earnings on investments, cost of living adjustments and others. While these estimates use the best information available, unknowable future events require adjusting this estimate annually.

Ohio Revised Code limits the City’s obligation for this liability to annually required payments. The City cannot control benefit terms or the manner in which pensions/OPEB are financed; however, the City does receive the benefit of employees’ services in exchange for compensation including pension and OPEB.

GASB 68/75 assumes the liability is solely the obligation of the employer, because (1) they benefit from employee services; and (2) State statute requires funding to come from these employers. All pension contributions to date have come solely from these employers (which also includes pension costs paid in