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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2019 <br />Note : Postemployment Benefits Other Than Pensions (Continued) <br />C. Actuarial Methods and Assumptions <br />The City’s total OPEB liability of $873,437 was measured as of January 1, 2019, and the total OPEB liability used to <br />calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2018. Roll forward procedures <br />were used to roll forward the total OPEB liability to the measurement date. <br />The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following actuarial <br />assumptions, applied to all periods included in the measurement, unless otherwise specified: <br />Discount Rate 4.09% <br />Expected Long-Term Investment Return N/A <br />20-Year Municipal Bond Yield 3.30% <br />Inflation Rate 2.50% <br />Salary Increases 3.50% <br />Medical Trend Rate 8.0% in 2019 grading to 5% over 10 years <br />The discount rate used to measure the total OPEB liability was 4.09 percent as of January 1, 2019. Mortality rates were <br />based on the RP-2014 White Collar Mortality Tables (de-trended to 2006) and then projected beyond the valuation date <br />using scale MP-2017. <br />The actuarial assumptions used in the January 1, 2018 valuation were based on input from a variety of published sources <br />of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source <br />information as well as for consistency with the other economic assumptions. <br />D. Changes in the Total OPEB Liability <br />Total OPEB <br />Liability <br />(a) <br />Balances at December 31, 2018 837,187$ <br />Changes for the Year: <br />Service cost 90,925 <br />Interest 31,294 <br />Changes in assumptions or other inputs (49,156) <br />Benefit payments (36,813) <br />Net Changes 36,250 <br />Balances at December 31, 2019 873,437$ <br />Since the prior measurement date, the following assumptions changed: <br />The discount rate was changed from 3.44% to 4.09%. <br />uarial assumptions useduarial assumptions used in the January 1, 2018 valuation were based on input from a variety of published sources in the January 1, 2018 valuation were based on input from a variety of published sources <br />of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source <br />information as well as for consistency with the other economic assumptions.information as well as for consistency with the other economic assumptions. <br />nges in the Total OPEB Liabilitynges in the Total OPEB Liability <br />83