2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

E. Sensitivity of the Total OPEB Liability NOTE 15 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.08 percent) or 1 percentage-point higher (5.08 percent) than the current discount rate:

1% Decrease (3.08%)

Current (4.08%)

1% Increase (5.08%)

$

3,588,701

$

3,257,147

$

2,964,599

The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a Healthcare Cost Trend Rates that is 1-percentage point lower (5.90 percent decreasing to 2.90 percent) or 1-percentage-point higher (7.90 percent decreasing to 4.90 percent) than the current discount rate:

1% Decrease (5.9% Decreasing to 2.9%)

Healthcare Cost Trend Rates (6.9% Decreasing to 3.9%)

1% Increase (7.9% Decreasing to 4.9%)

$

2,854,685

$

3,257,147

$

3,734,915

F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the City recognized OPEB expense of $140,951. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred

Resources Deferred Inflows of

Outflows of Resources

Changes in actuarial assumptions

$

346,582 155,799 926,775

$

666,072 442,016

Contributions to OPEB subsequent to the measurement date Differences between expected and actual experience

-

$ 1,429,156

$ 1,108,088

Deferred outflows of resources totaling $155,799 related to pensions resulting from the City’s contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense on the following page.

98