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City of Orono, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) At December 31, 2021, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 7,005$ 34,853$ Changes in Actuarial Assumptions 693,581 25,544 Net Difference Between Projected and Actual Earnings on Plan Investments - 978,484 Changes in Proportion 32,623 17,987 Contributions to PERA Subsequent to the Measurement Date 80,998 - Total 814,207$ 1,056,868$ The $80,998 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: (29,696)$ (17,657) (7,979) (268,327) 2022 2023 2024 2025 Police and Fire Fund Pension Costs At December 31, 2021, the City reported a liability of $1,648,766 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021 relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2136 percent which was a decrease of 0.0037 from its proportionate share measured as of June 30, 2020. The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later DRAFT 73