2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019

E. Sensitivity of the Total OPEB Liability (Continued) 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 Healthcare Cost Trend Rates that is 1-percentage point lower (5.40 percent decreasing to 3.00 percent) or 1-percentage-point higher (7.40 percent decreasing to 5.00 percent) than the current discount rate:

Healthcare Cost Trend Rates (6.4% Decreasing to 4%)

(5.4% Decreasing 1% Decrease to 3%)

1% Increase (7.4% Decreasing to 5%)

$

2,021,622

$

2,305,113

$

2,641,638

F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2019, the City recognized OPEB expense of $88,909. At December 31, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred

Deferred Inflows of Resources

Outflows of Resources

Changes in actuarial assumptions

$

64,480 94,500

$

62,248

Contributions to OPEB subsequent to the measurement date

-

$

158,980

$

62,248

Deferred outflows of resources totaling $94,500 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, 2020. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Pension Expense

Year Ending December 31, 2020

Amount

$

1,260 1,260 1,260 1,260 1,260

2022 2023 2024 2021

Thereafter

(4,068)

Total

$

2,232

93