2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020

NOTE 15 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)

D. Changes in the Total OPEB Liability

Total OPEB Liability (a)

Balances at January 01, 2020 Changes for the Year: Service cost

$

2,305,113

162,381 89,919 135,664 164,630 (87,621) 464,973

Interest Differences between expected and actual experience

Changes in assumptions or other inputs Benefit payments Net Changes

Balances at December 31, 2020

$

2,770,086

Since the prior measurement date, the following benefit terms changed:

The discount rate was changed from 3.31% as of 12/31/2019 to 3.71% as of 12/31/2020 based on updated 20-year municipal bond rates as of each measurement date.

Since the prior measurement date, the following assumptions changed:

The discount rate was changed from 3.31% to 3.71% based on updated measurement dates and GASB 75 requirements.

E. Sensitivity of the Total OPEB Liability

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 calculated using a discount rate that is 1-percentage point lower (1.75 percent) or 1- percentage-point higher (3.75 percent) than the current discount rate: 1% Decrease

Current (2.75%)

1% Increase (3.75%)

(1.75%)

$

3,047,211

$

2,770,086

$

2,522,891

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