Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report 55 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 55 - Based on the actuarial valuation date of January 1, 2014, the City’s annual cost for fiscal years ended December 31, 2015 and 2014, the amount of expected contribution to the plan, and changes in net obligation are as follows: ($ in millions) 2015* 2014 Annual required contribution 4.6 $ 4.4 $ Interest on net OPEB obligation 1.6 1.5 Adjustment to annual required contribution (2.5) (2.4) Annual OPEB cost (expense) 3.7 3.5 Expected contribution (employer-paid benefits) (1.1) (1.0) Increase in net OPEB obligation 2.6 2.5 Net OPEB obligation - beginning of the year 46.8 44.3 Net OPEB obligation - end of year 49.4 $ 46.8 $ * Updated based on the latest actuarial valuation report dated January 1, 2014. The schedules of funding progress ($ in millions) (unaudited) are as follows: Actuarial Accrued UAAL as a Actuarial Actuarial Liabilities Unfunded Percentage Valuation Value of (AAL) AAL Funding Covered of Covered Date Assets Entry Age (UAAL) Ratio Payroll Payroll January 1 (A) (B) (B-A) (A/B) (C) ((B-A)/C) 2010 - $ 93.5 $ 93.5 $ - % 869.1 $ 10.8 % 2012 - 74.4 74.7 - 891.6 8.4 2014 - 41.8 41.8 - 1,004.0 4.2 The Health Care Subfund of the General Fund is reported in The City of Seattle’s Comprehensive Annual Financial Report. 13. ENVIRONMENTAL LIABILITIES Environmental liabilities were $45.9 million and $57.6 million, at December 31, 2015, and 2014, respectively. The following is a brief description of the significant Superfund sites: ● The Harbor Island Superfund Site—In 1983, the U.S. Environmental Protection Agency (EPA) designated this site as a federal Superfund site. The Department and other entities are sharing costs of investigating contamination in the East Waterway alongside Harbor Island. The Department’s involvement stems from its sale of transformers to a company on Harbor Island. The City of Seattle is one of four parties who are conducting a remedial investigation and feasibility study that will delineate cleanup actions. The EPA approved the remedial investigation report. The final feasibility study will be issued in 2016. The Department’s ultimate liability is indeterminate. ● The Lower Duwamish Waterway Superfund Site—In 2001, the EPA designated this site as a federal Superfund site for contaminated sediments. The Department’s involvement is attributable to its land ownership or use of property along the river. The City of Seattle is one of four parties who