2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018

NOTE 14 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) E. Sensitivity of the Total OPEB Liability 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 (2.31 percent) or 1- percentage-point higher (4.31percent) than the current discount rate:

1% Decrease

Current (3.31%)

1% Increase

(2.31%)

(4.31%)

$

2,385,592

$

2,218,083

$

2,056,841

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 Trent Rates that is 1-percentage point lower (5.90 percent decreasing to 3.00 percent) or 1-percentage-point higher (7.90 percent increasing to 5.00 percent) than the current discount rate:

Healthcare Cost

1% Decrease

Trend Rates

1% Increase

(5.9% Decreasing to 3%)

(6.9% Decreasing to 4%)

(7.9% Decreasing to 5%)

$

1,958,724

$

2,218,083

$

2,524,956

F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2018, the City recognized OPEB expense of $71,463. At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Changes in actuarial assumptions

$

73,020 87,839

$

- -

Contributions to OPEB subsequent to the measurement date

Total

$

160,859

$

-

92