HomeMy Public PortalAboutDeferred Comp 2010 Audited FinancialsTHE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
INDEPENDENT AUDITORS' REPORT,
FINANCIAL STATEMENTS AND
SUPPLEMENTAL INFORMATION
FOR THE YEARS ENDED
DECEMBER 31, 2010 AND 2009
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
_______________________________________________________ CONTENTS
INDEPENDENT AUDITORS' REPORT .................................................................................. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS .............................................................. 2 - 4
FINANCIAL STATEMENTS
Statements of Plan Net Assets..................................................................................................... 5
Statements of Changes in Plan Net Assets ...... .............. .......... .......................... ................ .......... 6
Notes to Financial Statements ..................................................................................................... 7 -15
SUPPLEMENTAL INFORMATION
Historical Trend Information....................................................................................................... 16
Investment Returns and Expense Ratios ............ .................................................... ........ ............. 17 -18
Ie! SCHMERSAHL lRELOAR & Co. __ it. Certified Public Accou ntan t s
Independent Auditors' Report
To the Board of Trustees of the
Metropolitan St. Louis Sewer District
We have audited the accompanying statements of plan net assets of the Metropolitan St. Louis Sewer District
Deferred Compensation Plan and Trust (the "Plan") as of December 31, 2010 and 2009, and the related
statements of changes in plan net assets for the years then ended. These financial statements are the
responsibility of the Plan Administrator. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with U.S. generally accepted auditing standards. Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the Plan
net assets as of December 31, 2010 and 2009, and the changes in plan net assets for the years then
ended, in conformity with U.S. generally accepted accounting principles.
The management's discussion and analysis is not a required part of the basic financial statements, but is
supplementary information required by U.S . generally accepted accounting principles. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation ofthe supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was for the purpose of forming an opmIOn on the financial statements that collectively
comprise the Plan's financial statements. The supplemental information, as listed in the table of
contents, is presented for purposes of additional analysis and is not a required part of the basic financial
statements of the Plan. Such information has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
July 29,2011
(314) 966-2727 • fax (314) 966-6464 • 10805 Sunset Office Drive, Suite 400 • St. Louis, MO 63127 • e-mail: stcpa@stcpa.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS
_______________ FOR THE YEAR ENDED DECEMBER 31, 2010
This report consists of a series of financial statements related to The Metropolitan St. Louis Sewer
District's Deferred Compensation Plan and Trust (the Plan). The Statements of Plan Net Assets and the
Statements of Changes in Plan Assets (on pages 5 and 6) provide information about this Plan's assets
and changes in its assets during the year. These statements are prepared using the accrual basis of
accounting. The investments held in trust for plan benefits are reported at fair value.
This management's discussion and analysis of the Plan's financial performance provides an overview of
the Plan's financial activities for the fiscal year ended December 31,2010. Please read it in conjunction
with the Plan's financial section.
FINANCIAL HIGHLIGHTS
Plan Additions, Deductions, and net Assets
Net assets available for plan benefits exceeded $32.8 million at the end of 2010 and the net asset value
increased by $3.7 million from that of December 31, 2009, due to the combined impact of an increase in
the overall value of equity investments that resulted from an increase in the various stock markets and an
increase in participant contributions. Contributions from participants were approximately $2.7 million,
which was a slight decrease of approximately $11,000 as compared with prior year contributions.
Plan Additions/or 2010,2009, and 2008 (in thousands)
Percent Percent
2010 2009 Change 2008 Change
Employee Contributions $2,674 $2,685 (0.4%) $2,724 (1.4%)
Investment Income 3,421 4,837 (29.3%) (7,663) 163.1%
Total Additions
(Subtractions) 6,095 7,522 (19.0%) (4,939) 252.3%
Plan Deduction/or 2010,2009, and 2008 (in thousands)
Percent Percent
2010 2009 Change 2008 Change
Distributions to Participants $2,407 $972 147.6% $1,169 (16.9%)
Net Assets at December 31,2010,2009, and 2008 (in thousands)
Percent Percent
2010 2009 Change 2008 Change
Net Assets $32,897 $29,209 12.6% $22,658 28.9%
2
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
MANAGEMENT’S DISCUSSION AND ANALYSIS
_________________________________________ FOR THE YEAR ENDED DECEMBER 31, 2010
____________________________________________________________________________________
3
Participant Census
Employee participation in the Plan is on a voluntary basis. Plan participants are comprised of active
employees of the District, retirees or surviving spouses and terminated employees with account balances
as follows:
Number Of
December 31, Participants
2010 635
2009 649
2008 640
Investment Aspects
Investment decisions are participant directed. The participants are offered a diversified portfolio of
investment options to from which to select. These investment options represent a series of mutual funds
primarily sponsored and managed by the Vanguard Group. A breakdown of the participant directed
assets allocation as of the last day of the fiscal year ended 2010, 2009, and 2008 follows:
Asset Allocation as of
December 31, 2010
53% 27%
9% 8% 3% Equity
Balanced
Fixed Income
Stable Value
Cash Equivalents
Asset Allocation as of
December 31, 2009
51%
27%
9%
8%5%Equity
Balanced
Fixed Income
Stable Value
Cash equivalents
Asset Allocation as of
December 31, 2008
47%
24%
11%
11%7%Equity
Balanced
Fixed Income
Stable Value
Cash equivalents
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS
________________ FOR THE YEAR ENDED DECEMBER 31,2010
Fiduciary Responsibilities
The Board of Trustees and senior management are fiduciaries of the Plan and Trust. Fiduciaries are
charged with the responsibility of assuring that the assets of the Plan are used exclusively for the benefit
of plan participants and the beneficiaries.
Request for Information
This financial report is designed to provide the Board of Trustees, participants, investment managers,
and other interested parties with an overview of the Plans finances and accountability for the money
received. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to:
Karl J. Tyminski, Secretary-Treasurer
2350 Market Street
St. Louis, MO 63103-2555
Phone: (314) 768-6222
Fax: (314) 768-2701
kjtymi@stlmsd.com
4
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
__________________ STATEMENTS OF PLAN NET ASSETS
ASSETS
Investments at fair value:
Mutual funds
Common/collective trust
Annuity contracts
Notes receivable from participants
NET ASSETS HELD IN TRUST FOR PLAN BENEFITS
See notes to imancial statements
December 31,
2010 2009
$28,854,703
2,632,225
739,721
670,638
$32,897,287
$25,519,210
2,385,693
672,844
630,912
$29,208,659
---------------------5
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
_____________ STATEMENTS OF CHANGES IN PLAN NET ASSETS
ADDITIONS TO (REDUCTIONS OF) NET ASSETS
ATTRIBUTED TO:
Investment income:
Interest and dividends
Net depreciation in fair value of investments
Total Investment Income
Less: Investment expenses
Net Investment Income
Employee contributions:
Elected deferrals
Total Additions
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants and beneficiaries
NET INCREASE
NET ASSETS AVAILABLE FOR BENEFITS,
JANUARY 1
NET ASSETS AVAILABLE FOR BENEFITS,
DECEMBER 31
For the Years Ended
December 31,
2010 2009
$ 723,595
2,697,468
3,421,063
(300)
3,420,763
2,674,626
6,095,389
2,406,761
3,688,628
29,208,659
$32,897,287
$ 715,981
4,121,727
4,837,708
(302)
4,837,406
2,685,427
7,522,833
972,044
6,550,789
22,657,870
$29,208,659
See notes to financial statements _____________________ _
6
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31,2010 AND 2009
NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies consistently applied by The Metropolitan St. Louis Sewer District
Deferred Compensation Plan and Trust (the "Plan") in the preparation of the accompanying financial
statements are summarized below:
1. Basis of Accounting
The financial statements of the Plan are prepared under the accrual basis of accounting.
Benefit payments to participants or beneficiaries are recorded upon distribution.
2. Accounting Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires the Plan Administrator to make certain estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could differ from those
estimates.
3. Investment Valuation
Purchases and sales of mutual funds are recorded on the settlement date. Investments in mutual
funds are valued at fair value based on quoted market prices. Investments in annuity contracts
are valued at contract values reported by the insurance company, which approximate fair value.
Notes receivable from participants are valued at the unpaid principal balances plus any accrued
but unpaid interest, which approximate fair value.
4. Administrative Expenses
All general administrative costs of the Plan are paid by The Metropolitan St. Louis Sewer
District (the "District"), except those attributable to participants' choice of optional
investments or optional forms of benefit payments. These expenses are charged to the
respective participants' account balance.
5. Subsequent Event
In preparing these financial statements, the District has evaluated events and transactions for
potential recognition or disclosure through July 29,2011, the date the financial statements were
available to be issued.
7
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31, 2010 AND 2009
NOTE B -DESCRIPTION OF THE PLAN
The following description of the Plan provides only general information. Participants should refer to the
Plan agreement for a complete description of the Plan's provisions.
1. General
The Plan is a defined contribution benefit plan covering substantially all employees of the
District. The District's Board of Trustees established the Plan in September 1996. The first
contributions were made in October 1996. Plan provisions are established and may be
amended by the District's Board of Trustees. The District does not contribute to the Plan.
All assets of the Plan are the sole property of the Plan and are not subject to the claims of
creditors of the District. The Plan Administrator issues a publicly available Summary Plan
Description. That information may be obtained by writing to The Metropolitan St. Louis
Sewer District, 2350 Market Street, St. Louis, MO 63103-2555.
2. Contributions
Under the plan provisions, employees of the District are eligible to contribute up to 100% of
their total compensation into the Plan, through payroll deferral, of any amount not previously
reduced or withheld from their total compensation. In accordance with the Internal Revenue
Code Section 457 as amended, the Plan limits an individual's annual contribution (adjusted
annually) not to exceed $16,500 for the years ended December 31, 2010 and 2009. If the
employee is over the age of 50, they can contribute an additional catch-up contribution up to
$5,500 for the years ended December 31, 2010 and 2009. Underutilization catch-up of two
times the standard annual deferral applies within the three years prior to normal retirement, less
amounts deferred under the Plan. Amounts contributed by employees are deferred for federal
and state income tax purposes until received as a withdrawal or distribution from the Plan.
Employee contributions may be allocated to the Vanguard accounts only, in 1 % increments as
the participant directs. No contributions are currently made to the Lincoln National accounts.
Equity option: Vanguard Windsor II Fund, Vanguard Index 500 Fund, and Vanguard
U.S. Growth Fund -Investment objective is long-term capital appreciation.
Diversification option: Vanguard Small-Cap and Mid-Cap Index Fund and Vanguard
International Growth Fund -Investment objective is long-term capital appreciation.
Life Strategy option: Vanguard Life Strategy Growth Fund, Vanguard Life Strategy
Moderate Growth Fund, Vanguard Life Strategy Conservative Growth Fund, and
Vanguard Life Strategy Income Fund -Investment objective is long-term capital
appreciation and some current income.
8
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31,2010 AND 2009
NOTE B -DESCRIPTION OF THE PLAN (Continued)
2. Contributions (Continued)
Bond option: Vanguard Total Bond Market Index Fund -Investment objective is income
stability and conservation of principal.
Balanced option: Vanguard Balanced Index Fund -Investment objective is income,
conservation of principal, and long-tenn growth.
Stable Value option: Vanguard Retirement Savings Trust -Investment objective is
income stability and conservation of principal.
Money Market option: Vanguard Prime Money Market Fund -Investment objective is
income while maintaining safety of principal.
Target Retirement option: Vanguard Target Retirement 2005-2050 Fund -Investment
objective is capital appreciation and current income consistent with its current asset
allocation.
3. Participant Accounts
Each participant's account is credited with the participant's contribution and allocations of
Plan earnings. Allocations are based on participants' account balances, as defined. There are
no forfeitures applicable to the Plan. Participants' contributions are immediately fully vested.
At December 31, 2010 and 2009, approximately 635 and 649 participants, respectively,
actively participated in the Plan.
4. Notes Receivable from Participants
Active participants, with some exceptions, may borrow from their fund accounts a percentage
of their vested account balances. Principal and interest is paid through payroll deductions. At
December 31,2010 and 2009, interest rates on notes receivable outstanding range from 5.00%
to 9.25%.
5. Distributions
Participants contributing to the Plan may receive benefits or withdraw the present value of
funds contributed to the Plan upon retirement, disability, or tennination of employment from
the District or due to financial hardship as defined by the Plan, if approved by the Plan
Administrator.
9
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31,2010 AND 2009
NOTE B -DESCRIPTION OF THE PLAN (Continued)
5. Distributions (Continued)
Participants may select various payout options including lump sum or equal annual payments
over various periods. Participants may also elect to have the value of the account converted
into fixed or variable annuity contracts. All investments, including annuity contracts, remain
assets of the Plan until payments are made to the participants.
6. Tax Status
The Plan received a favorable determination letter from the Internal Revenue Service on
June 23, 1999, indicating the Plan and its underlying trust are qualified under Section 457 of
the Internal Revenue Code.
NOTE C -RELATED PARTY-IN-INTEREST TRANSACTIONS
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary Trust
Company (VFTC). VFTC acts as trustee for only those investments as defined by the Plan.
Transactions in such investments qualify as party-in-interest transactions which are exempt from the
prohibited transaction rules.
10
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEl\IBER 31, 2010 AND 2009
NOTE D -INVESTMENTS
Investments held by the custodians in the Plan's name were as follows:
Mutual funds:
Vanguard Group, Inc.
Windsor II Fund
Balanced Index Fund
Index 500 Fund
Total Bond Market Index Fund
Vanguard U.S. Growth Fund
Vanguard LifeStrategy Moderate Growth Fund
Vanguard International Growth Fund
Vanguard Small-Cap Index Fund
Vanguard Mid-Cap Index Fund
Vanguard LifeStrategy Growth Fund
Vanguard Prime Money Market Fund
Vanguard LifeStrategy Conservative Growth Fund
Vanguard LifeStrategy Income Fund
Target Retirement 2010 Fund
Target Retirement 2030 Fund
Target Retirement 2015 Fund
Target Retirement 2050 Fund
Target Retirement 2040 Fund
Target Retirement 2025 Fund
Target Retirement 2020 Fund
Target Retirement 2035 Fund
Target Retirement Income
Target Retirement 2045 Fund
Target Retirement 2005 Fund
Total Mutual Funds
Common/collective trust:
Vanguard Group, Inc.
Retirement Savings Trust
* Represents 5% or more of the Plan's net assets.
December 31,
2010 2009
$ 5,601,754 *
3,698,326 *
3,501,145 *
2,496,035 *
2,296,150 *
2,110,646 *
1,810,215 *
1,699,212 *
1,649,966 *
1,188,075
1,034,387
617,675
392,825
204,966
86,786
82,935
77,295
66,536
63,681
52,252
48,809
45,698
29,334
28,854,703
2,632,225 *
$ 5,290,044 *
3,379,621 *
3,043,921 *
2,343,959 *
2,021,922 *
1,792,381 *
1,575,472 *
1,114,284
1,038,884
1,111,696
1,355,842
646,614
332,386
69,707
60,630
78,706
19,339
39,646
42,043
23,209
10,015
29,950
43,504
55,435
25,519,210
2,385,693 *
11
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31, 2010 AND 2009
NOTE D -INVESTMENTS (Continued)
December 31,
2010 2009
Annuity contracts:
Lincoln National Life
Fixed earnings option:
Lincoln National Fixed 353,509 341,613
Variable earnings option:
Special Opportunity Fund 151,130 116,896
Growth & Income Fund 128,392 114,930
Trend Fund 29,460 21,706
International Fund 24,791 24,441
Money Market Fund 20,321 20,786
Social Awareness Fund 10,793 9,777
Capital Appreciation Fund 8,505 7,713
Midcap Growth 6,450 5,078
Equity-Income Fund 3,355 2,876
Global Growth 3,015 2,729
Managed Fund 4,299
Total Annuity Contracts 739,721 672,844
$32,226,649 $28,577,747
Debt Securities Interest Rate and Credit Risk
The Plan will minimize the risk that the market value of securities in the portfolio will fall due to
changes in general interest rates by selecting mutual funds for the investment portfolio that manage
credit quality and duration of fixed income investments.
The Plan will minimize credit risk, the risk of loss due to failure of the security issuer or backer, by
selecting mutual funds for the investment portfolio that manage their respective fund under a
predetermined average credit risk investment management policy.
The following table provides information on the duration and credit ratings associated with the Plan's
investment in debt-backed mutual funds, excluding obligations of the U.S. Government or obligations
explicitly guaranteed by the U.S. government within these funds at December 31,2010 and 2009:
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THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
NOTE D -INVESTMENTS (Continued)
S&P Average
Average Effective
Plan Investments Fair Credit Credit Quality Percentage Not Duration
With Debt Securities Value Rating AAA AA A BBB BB B Rated In Years
December 31, 2010:
Vanguard Group, Inc.
Balanced Index Fund $3,698,326 AA 29.3 % 1.8 % 3.9 % 3.2 % % % % 5.00
Total Bond Market Index Fund 2,496,035 AA 75.7 4.7 10.7 8.9 5.00
Prime Money Market Fund 1,034,387 AA 46.8 45.5 7.7 0.15
Life Strategy Moderate Growth Fund 2,110,646 AA 24.9 1.3 3.6 3.0 5.00
Retirement Savings Trust 2,632,225 AAA 63.1 35.1 1.8 2.73
Life Strategy Conservative Growth Fund 617,675 A 28.9 5.5 8.0 5.5 1.50 3.80
Life Strategy Income Fund 392,825 A 43.2 6.2 9.6 7.5 lAO 4.10
Target Retirement 2010 Fund 204,966 AA 39.5 1.6 3.9 3.5 4.90
Target Retirement 2015 Fund 82,935 AA 30.1 1.6 3.9 3.5 4.80
Target Retirement 2020 Fund 52,251 AA 24.6 1.3 3.2 3.2 5.00
Target Retirement 2025 Fund 63,681 AA 19.1 1.0 2.8 2.3 5.00
Target Retirement 2030 Fund 86,786 AA 13.5 0.7 2.0 1.6 5.00
Target Retirement 2035 Fund 48,809 AA 8.0 004 1.2 1.0 5.00
Target Retirement 2040 Fund 66,536 AA 704 004 1.1 0.9 5.00
Target Retirement 2045 Fund 29,334 AA 704 004 1.1 0.9 5.00
Target Retirement 2050 Fund 77,295 AA 704 004 1.1 0.9 5.00
Target Retirement Income 45,698 AA 52.1 1.9 4.3 3.7 5.00
Lincoln National Life
Fixed (Annuity Contracts) 353,508 BBB+ * * * 100.0 * * *
Lincoln Money Market Fund 20,321 * * * * * * *
* Information is unavailable for this mutual fund.
13
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2010 AND 2009
NOTE D -INVESTMENTS (Continued)
S&P Average
Average Effective
Plan Investments Fair Credit Credit Quality Percentage Not Duration
With Debt Securities Value Rating AAA AA A BBB BB B Rated In Years
December 31, 2009:
Vanguard Group, Inc.
Balanced Index Fund $3,379,621 AA 29.0 % 1.5 % 3.8 % 3.4 % - % - %
-% 4.50
Total Bond Market Index Fund 2,343,959 AA 77.0 4.0 10.0 9.0 4.50
Prime Money Market Fund 1,355,842 AA 42.5 44.6 12.9 0.20
Life Strategy Moderate Growth Fund 1,792,381 AAA 24.6 1.0 3.2 2.9 4.50
Retirement Savings Trust 2,385,693 AA 61.7 36.1 2.2 0.77
Life Strategy Conservative Growth Fund 646,614 AA 28.9 4.3 7.2 6.3 1.4 3.70
Life Strategy Income Fund 332,386 AA 42.6 5.2 9.2 7.2 1.3 4.00
Target Retirement 2005 Fund 55,435 AAA 46.9 1.7 3.9. 3.3 4.70
Target Retirement 2010 Fund 69,707 AAA 37.5 1.4 3.7 3.2 4.60
Target Retirement 2015 Fund 78,706 AA 27.8 1.4 3.6 3.2 4.50
Target Retirement 2020 Fund 23,209 AA 22.5 1.2 2.9 2.6 4.50
Target Retirement 2025 Fund 42,043 AA 17.2 0.9 2.2 2.0 4.50
Target Retirement 2030 Fund 60,630 AA 11.9 0.6 1.5 1.4 4.50
Target Retirement 2035 Fund 10,015 AA 7.1 0.4 0.9 0.8 4.50
Target Retirement 2040 Fund 39,646 AA 7.1 0.4 0.9 0.8 4.50
Target Retirement 2045 Fund 43,504 AA 7.1 0.4 0.9 0.8 4.50
Target Retirement 2050 Fund 19,339 AA 7.1 0.4 0.9 0.8 4.50
Target Retirement Income 29,950 AAA 51.2 1.8 4.3 3.7 4.70
Lincoln National Life
Fixed (annuity contracts) 341,613 BBB * * * 100.0 * * * *
Lincoln Money Market Fund 20,786 * * * * * * * * *
* Information is unavailable for this mutual fund.
14
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
_____________________ DECEMBER 31, 2010 AND 2009
NOTE E -RISKS AND UNCERTAINTIES
The Plan invests in various investment securities. Investment securities are exposed to various risks such
as interest rate, market, and credit risk. Due to the level of risk associated with certain investment
securities, it is at least reasonably possible that changes in the values of investment securities will occur
in the near term and that such change could materially affect the participants' account balances and
amounts reported in the Statement of Plan Net Assets.
15
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
_______________ ,SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION SECTION
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
_______________________________________ SUPPLEMENTALINFORMATION
HISTORICAL TREND INFORMATION
For The Distributions To Increase
Years Ended Employee Net Investment Participants (Decrease)
December 31 Contributions Income (Loss) And Beneficiaries In Net Assets
2010 $2,674,626 $3,420,763 ($2,406,761 ) $3,688,628
2009 2,685,427 4,837,406 (972,044) 6,550,789
2008 2,723,760 (7,663,384) (1,168,917) (6,108,541)
2007 2,595,532 1,500,519 (1,442,611) 2,653,440
2006 2,479,067 2,790,431 (1,405,638) 3,863,860
2005 2,203,103 1,311,662 (670,007) 2,844,758
2004 2,050,893 1,909,831 (792,780) 3,167,944
2003 2,041,688 2,746,391 (1,238,629) 3,549,450
2002 2,133,784 (2,095,283) (1,819,333) (1,780,832)
2001 1,986,726 (1,194,727) (793,369) (1,370)
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THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
______________________________________ SUPPLEMENTALINFORMATION
INVESTMENT RETURNS AND EXPENSE RATIOS
An independent investment consultant, New England Pension Consultants, monitored investment
performance of the various options offered to the participants. Performance of the funds are measured
net of the corresponding expense ratios. Below is a table that reflects the funds available for employees
to invest and their performance for the years 2010 and 2009 as compared to the appropriate benchmarks
as well as their current expense ratios:
Returns Net of Fees *
Funds I Benchmarks Expense Ratios 2010 2009
Federal Money Market N/A*% N/A* N/A*
Prime Money Market Investment 0.23 0.1 0.5
Retirement Savings Trust 0.30 3.0 3.0
90-day T-Bills .1 3.0
Bankers Trust 3-Year Guaranteed Investment 3.4 0.2
Contract Rate 0 4.5
Total Bond Market Index 0.22 6.4 5.9
BarCap US Aggregate Bond Index 6.5 5.9
Balanced Index Fund 0.25 13.1 20.1
60% Standard & Poor's 500/40% BarCap 12.1 16.4
Ag,R Index
Life Strategy Income 0.18 9.2 12.1
Dow Jones u.s. Moderate Conservative 11.9 11.2
Portfolio
Life Strategy Conservative Growth 0.19 11.1 17.1
Dow Jones u.s. Moderate Conservative 11.9 15.4
Por(folio
Life Strategy Moderate Growth 0.19 13.3 20.3
Dow Jones u.s. Moderate Portfolio 11.9 18.3
Life Strategy Growth 0.20 15.1 25.0
Russell 1000 16.7 22.4
Standard & Poor's 500 Index 0.18 14.9 26.5
Standard & Poor's 500 Index 15.1 26.5
Windsor II Fund 0.35 10.6 27.1
Russell 1000 Value Index 15.5 19.7
U.S. Growth 0.53 11.5 35.0
Russell 1000 Growth Index 16.7 37.2
Mid Cap Index 0.27 25.5 41.6
Russell Mid Cap Index 25.7 34.3
Small Cap Index 0.28 27.7 36.1
Russell 2000 Index 27.8 34.0
International Growth 0.51 15.7 41.6
CitigroupPMI EPAC Index 11.2 34.3
MSCI EAFE Index
Vanguard Target Retirement Income 0.17 9.4 14.3
Vanguard Retirement Income Benchmark 9.4 14.3
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THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFERRED COMPENSATION PLAN AND TRUST
_______________________________________ SUPPLEMENTALINFORMATION
Vanguard Target Retirement 2005 0.17 9.7 16.2
Vanguard Target 2005 Benchmark 10.0 16.4
Vanguard Target Retirement 2010 0.17 11.4 19.3
Vanguard Target 2010 Benchmark 11.6 19.4
Vanguard Target Retirement 2015 0.16 12.5 21.3
Vanguard Target 2015 Benchmark 12.6 21.4
Vanguard Target Retirement 2020 0.17 13.1 23.1
Va~guard Target 2020 Benchmark 13.3 23.3
Vanguard Target Retirement 2025 0.18 13.8 24.8
Vanguard Target 2025 Benchmark 13.9 25.1
Vanguard Target Retirement 2030 0.18 14.4 26.7
Vanguard Target 2030 Benchmark 14.5 27.0
Vanguard Target Retirement 2035 0.19 15.1 28.2
Vanguard Target 2035 Benchmark 15.2 28.5
Vanguard Target Retirement 2040 0.19 15.2 28.3
Vanguard Target 2040 Benchmark 15.2 28.5
Vanguard Target Retirement 2045 0.19 15.2 28.2
Vanguard Target 2045 Benchmark 15.2 28.5
Vanguard Target Retirement 2050 0.19 15.2 28.3
Vanguard Target 2050 Benchmark 15.2 28.5
*The returns shown above are net of fees as reported by the managers.
Certain participants with assets valued at $739,721 and $672,844 in 2010 and 2009, respectively, are invested in a series of
fixed and variable rate annuity contracts sponsored by Lincoln National Life Insurance Company. The Lincoln National Life
option was phased out in 1992, and any balances represent undistributed participant balances. This option is no longer
available to new participants or for current deferrals.
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