1. Large User True-up Analysis
City of Hollywood
Large User True-up Analysis
GASB 68 Discussion
February 22, 2017

2. In our last meeting…
Large Users asked for detailed presentation of the summary results of the two methods presented for addressing GASB 68. Those methods were:
Pension Expense Method
Pension Expense would be used each year, and
Large Users would also pay their share of the Net Pension Liability (~$11 million)
Pension Contribution Method
Pension Contribution would be used each year
After the last meeting, a detailed presentation of the calculations which underpinned those summary results was provided to the Large Users for review

3. Comparison of Pension Contribution vs Pension Expense – by Acct Number
Account Number
Pension Contribution - Fund 42
Pension Expense –
Fund 42 (see note 1)
Difference in Costs between Using Pension Contribution vs. Pension Expense
Treasury - Utility Billing & Collections
Utility Administration
Engineering Support
Water Treatment Plant
Water Distribution
Wastewater Treatment Plant
Sewer Collection
Total
$ ,084
$ ,710
$ ,374
$ ,374
210,917
175,847
35,070
221,016
149,953
71,063
450,007
271,427
178,580
646,724
336,631
310,093
496,080
251,800
244,280
209,117
103,853
105,264
74,647
37,789
36,858
960,037
526,719
433,318
310,413
203,820
106,593
672,998
391,256
281,742
375,710
190,497
185,213
164,543
114,789
49,754
196,342
131,712
64,630
70,497 -
$ ,456,132
$ ,146,804
$ ,309,328
$ ,580
$ ,443
$ ,093
$ ,402
$ ,318
$ ,899
$ ,593
(1) In addition to the $3,146,804 for Pension Expense, the Large Users would also be liable for their allocated share of the Net Pension Liability.

4. Allocation of Difference to Large Users
Diff. in Pers. Services Costs
$2,309,328
Allocated to Water
$ 1,120,472
Allocated to Sewer
$ 1,188,856
Sewer Portion to Hollywood
$603,725
Sewer Portion to Large Users
$585,131
Adj. for:
Gen. Admin. ($ 4,021)
10% RRI $58,111
Sewer Portion to Large Users
$639,221
(as presented in cover letter and backup provided to LU’s)

5. Summary For FY 2015 True-up: LU Cost Share - Pension Expense Method:
Based on Pension Expenses for FY 2015 (paid already), and
Net Pension Liability (~$11 million), or amortization of the ~$11 million (not yet paid)
LU Cost Share - Pension Contribution Method:
Based on Pension Contributions for FY 2015
Additional $639,221 for FY 2015