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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2014 <br />NOTE 17 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued <br />E. Actuarial Methods and Assumptions <br />Projections of benefits for financial reporting purposes are based on the benefits provided under terms <br />of the substantive plan (the plan as understood by the employer and the plan members) in effect at the <br />time of each valuation and on the pattern of sharing of costs between the employer and plan members to <br />that point. The projection of benefits for financial reporting purposes does not explicitly incorporate <br />the potential effects of legal or contractual funding limitations on the pattern of cost sharing between <br />the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. <br />Consistent with that perspective, actuarial methods and assumptions used include techniques that are <br />designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial <br />value of assets. <br />The actuarial methods are: <br />Actuarial cost method <br />Amortization method <br />Amortization period (closed) <br />Asset valuation method <br />The actuarial assumptions are: <br />Investment rate of return <br />Projected annual salaries increase <br />Healthcare cost trend rate <br />Inflation rate <br />NOTE 18 - OPERATING LEASES <br />Entry age normal cost method <br />Level percent of payroll projected to grow 4% per year <br />14 years <br />Market Value <br />6.0% <br />4.0%-9.47% <br />8.5% <br />3% <br />(net administrative expenses) <br />(dependent on years of service and age) <br />(decreasing 1/2% each year & thereafter to <br />the ultimate value of 5.28%) <br />The County has entered into non -cancelable operating leases, both as lessor and lessee. Lease terms <br />vary from 1 to 99 years. Lease revenues totaled $620,669 and lease expenditures totaled $295,668 for <br />the year ended September 30, 2014. The County also leases other equipment and office facilities as <br />both lessor and lessee on a month-to-month basis. <br />A. Future Minimum Lease Receipts <br />Year Amount <br />2015 5 626,153 <br />2016 622,429 <br />2017 613,113 <br />2018 602,889 <br />2019 621,023 <br />2020-2024 2,805,324 <br />2025-2029 1,037,328 <br />2030-2034 450,507 <br />2035-2038 108,800 <br />Total future minimum lease receipts. $ 7,487,566 <br />93 <br />