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City of Orono, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2023
<br />Note 4:Defined Benefit Pension Plans - Statewide (Continued)
<br />109,724$
<br />(190,125)
<br />28,431
<br />(39,060)
<br />Police and Fire Fund Pension Costs
<br />City Proportionate Share of the Net Pension Liability 3,792,207$
<br />State of Minnesota's Proportionate Share of the Net Pension
<br />Liability Associated with the 152,722
<br />Total 3,944,929$
<br />The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule
<br />of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension
<br />allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need to recognize their
<br />situation accounting and financial reporting requirements. For the year ended December 31, 2023, the City recognized
<br />City recognized an additional $9,198 as negative pension expense (grant revenue) for its proportionate share of the
<br />2027
<br />net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to
<br />employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions
<br />measurement period and 0.2234 percent for the beginning of the period.
<br />The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
<br />allocation schedules for the $9 million in supplemental state aid. The City recognized $19,764 for the year ended
<br />December 31, 2023 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State
<br />subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
<br />December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
<br />recognized in pension expense as follows:
<br />2024
<br />2025
<br />2026
<br />The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023.
<br />The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation
<br />and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million
<br />direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police
<br />and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid
<br />will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
<br />Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the
<br />net pension liability associated with the City totaled $152,722.
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<br />measurement period and 0.2234 percent for the beginning of the period.measurement period and 0.2234 percent for the beginning of the period.
<br />The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023. The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2023.
<br />The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation
<br />and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million
<br />direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police direct state was paid on October 1, 2022. Thereafter, by October 1 of each year, the state will pay $9 million to the Police
<br />and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid
<br />will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State
<br />Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota's proportionate share of the
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