2020 Comprehensive Annual Financial Report

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

NOTE 15 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)

E. Sensitivity of the Total OPEB Liability (Continued)

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 Healthcare Cost Trend Rates that is 1-percentage point lower (5.40 percent decreasing to 3.00 percent) or 1-percentage-point higher (7.40 percent decreasing to 5.00 percent) than the current discount rate:

Trend Rates (6.4% Decreasing to 4%) Healthcare Cost

1% Decrease

1% Increase (7.4% Decreasing to 5%)

(5.4% Decreasing

to 3%)

$

2,404,949

$

2,770,086

$

3,210,938

F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the City recognized OPEB expense of $100,207. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Inflows of Resources

Deferred

Outflows of Resources

Changes in actuarial assumptions

$

191,908 121,353 203,204

$

54,968

Contributions to OPEB subsequent to the measurement date Differences between expected and actual experience

- -

$

516,465

$

54,968

Deferred outflows of resources totaling $191,908 related to pensions resulting from the City’s contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Pension Expense

Amount

December 31, Year Ending

2025 2024 2022 2021 2023

$

32,937 32,937 104,904 32,937 32,937 32,937

Thereafter

$

269,589

Total

96