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<br /> <br />City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2021 <br /> <br />Note 5: Postemployment Benefits Other Than Pensions (Continued) <br /> <br />D. Changes in the Total OPEB Liability <br /> <br />Total OPEB <br />Liability <br />(a) <br />Balances at December 31, 2020 904,145$ <br />Changes for the Year: <br />Service cost 101,612 <br />Interest 27,156 <br />Differences between expected and actual experience (413) <br />Changes in assumptions or other inputs 53,610 <br />Benefit payments (29,318) <br />Net Changes 152,647 <br />Balances at December 31, 2021 1,056,792$ <br /> <br />Since the prior measurement date, the following assumptions changed: <br /> <br />• The discount rate was changed from 4.09% to 2.74%. <br /> <br />E. Sensitivity of the Total OPEB Liability <br /> <br />The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it w ere <br />calculated using a discount rate that is 1-percentage point lower (1.74 percent) or 1-percentage-point higher (3.74 <br />percent) than the current discount rate: <br /> <br />1 Percent 1 Percent <br />Decrease (1.74%)Current (2.74%)Increase (3.74%) <br />1,147,222$ 1,056,792$ 971,340$ <br /> <br />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 <br />calculated using a Healthcare Cost Trent Rate that is 1 -percentage point lower (6.67 percent decreasing to 5.67 percent) <br />or 1-percentage-point higher (8.67 percent increasing to 7.67 percent) than the current cost trend rate: <br /> <br />Healthcare Cost <br />1 Percent Decrease Trend Rates 1 Percent Increase <br />(6.67% Decreasing (7.67% Decreasing (8.67% Decreasing <br />to 5.67%)to 6.67%)to 7.67%) <br />909,547$ 1,056,792$ 1,233,529$ <br /> <br />DRAFT <br />79