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� City of <br />Pequot <br />Lakes= <br />MEMORANDUM <br />To: Pequot Lakes City Council <br />From: Nancy Malecha, Finance Administrator <br />Date: April 28, 2009 <br />Subject: Other Post - Employment Benefits Actuary <br />In 2009, the City of Pequot Lakes is required to implement Government Accounting <br />Standard Board (GASB) Statement No. 45. This new accounting standard requires local <br />governments to report a liability for other post - employment benefits. The amount to be <br />reported on the financial statements is based on an actuarial calculation using the City's <br />post employment benefits offered. The purpose of this actuarial valuation is to determine <br />the City's liability regarding post employment benefits (i.e. retiree benefits). In addition, <br />GASB 45 states that plans with 200 or fewer members must perform an actuarial <br />valuation at least once every three years. However, in future years, the City may be able <br />to estimate the liability internally, and avoid additional actuarial costs, depending on the <br />overall size of the initial calculation of the liability. <br />We contacted Ehlers and Associates for company references who provide this actuarial <br />service. Ehlers referred the following two companies. <br />• Hildi Incorporated, Minneapolis, MN <br />• Van Iwaarden Associates, Minneapolis, MN <br />Both companies were contacted by telephone for a quote. Van Iwaarden Associates' <br />consulting services quote was $1,500, and Hildi Incorporated's consulting services quote <br />was $1,200. I am requesting that the City Council accept the consulting services <br />agreement from Hildi Incorporated. <br />Thank you. <br />