06-23-2025 Agenda Packet Cc - Regular Meeting

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Pension Costs City's Proportionate Share of the Net Pension Liability 2,979,538$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 113,579 Total 3,093,117$ Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 1,137,181$ -$ Changes in Actuarial Assumptions 3,186,329 4,254,146 Net Difference Between Projected and Actual Investment Earnings - 924,584 Changes in Proportion 104,374 114,554 Contributions Paid to PERA Subsequent to the Measurement Date 318,557 - Total 4,746,441$ 5,293,284$ The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $28.4 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $64,312 for the year ended December 31, 2024 as behalf contributions to the Police and Fire Fund. The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. 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 supplemental 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 the City totaled $113,579. For the year ended December 31, 2024, the City recognized pension expense of $582,621 for its proportionate share of Fund. net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received measurement period and 0.2196 percent for the beginning of the period. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 76 103