COG Comprehensive Annual Financial Report

1%

Discount

1%

Decrease (3.02%)

Rate

Increase (5.02%)

(4.02%)

Net OPEB Liability

$

145,110,110

$

130,158,761

$ 116,791,912

Sensitivity of the net OPEB liability to changes in healthcare cost trends The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were to calculate healthcare cost trend rates that are 1% point lower or 1% point higher than the current healthcare cost trend rates:

1%

Healthcare Cost

1%

Decrease (6.75%)

Trend Rate

Increase (8.75%)

(7.75%)

$ 111,353,711

$ 130,158,761

$ 152,608,810

Changes in Net OPEB Liability, OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB . At June 30, 2018, the City reported a net OPEB liability of $130,158,761. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2016. The total OPEB liability was then rolled forward to the measurement date of June 30, 2018 utilizing update procedures incorporating the actuarial assumptions. At June 30, 2018, the components of the net OPEB liability of the City, measured as of June 30, 2018, were as follows:

Increase (Decrease)

Total OPEB

Plan Fiduciary Net Position

Net OPEB Liability

Liability

(a)

(b)

(a) - (b)

Balances at June 30, 2017 Changes for the Year: Service Cost

$

148,402,967

$

17,379,922

$ 131,023,045

7,061,048 5,336,797

7,061,048 5,336,797

Interest

Differences between expected and actual experience

(955,070) (3,908,766)

(955,070) (3,908,766) (7,224,634) (1,176,469)

Changes of assumptions

Contributions

7,224,634 1,176,469 (5,224,634)

Net investment income

Benefit payments

(5,224,634)

Administrative expense

(2,810)

2,810

Net changes

2,309,375

3,173,659 20,553,581

(864,284)

$

150,712,342

$

$ 130,158,761

Balance as of June 30, 2018

Changes of assumptions. Changes of assumptions and other inputs reflect a change in the discount rate from 3.66% in 2017 to 4.02% in 2018. Medical claims cost and rates were changed based on most recent experience and changed to the current schedule. The impact of the Affordable Care Act was addressed in the valuation report and continues to be monitored.

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