2022 Annual Comprehensive Financial Report

2018 CITY OF SHAKOPEE SCHEDULE OF CHANGES IN THE CITY'S OPEB LIABILITY AND RELATED RATIOS 2021 2019 2020 2018 2017

Total OPEB Liability Service cost Interest

$

-

$

143,652 79,747

$

164,694 77,453

$

162,381 89,919 135,664 164,630

$

248,127

$

212,676 80,808 (11,389) 215,072 (88,559)

-

3,178,694 (755,344) (471,095) 67,656 (88,083) (998,739)

Differenced between expected and actual experience

-

-

- (85,589) (69,528)

Changes of assumptions

- - - -

81,560

Benefit payments

(72,637)

(87,621) 464,973 2,305,113

Total OPEB liability- beginning Net change in total OPEB liability

232,322 1,985,761

408,608 2,770,086

87,030 2,218,083

Total OPEB liability- ending

$

2,218,083

$

2,770,086

$

3,178,694

$

2,179,955

$ -

$

2,305,113

$ 12,533,653

$ 13,704,330

Covered Employee Payroll

$ 12,982,682

$ 14,047,001

$

-

$ 12,472,516

City's Total OPEB Liability as a Percentage of Covered Employee Payroll

23.19%

17.70%

18.48%

21.34%

15.52%

#DIV/0!

Note: No Assets are accumulated in a trust to pay related benefits.

Assumption changes:

The discount rate was changed from 3.31% as of 12/31/2017 to 3.71% as of 12/31/2018 based The discount rate was changed from 3.81% as of 12/31/2016 to 3.31% as of 12/31/2017 based on updated 20-year municipal bond rates as of each measurement date. Since the most recent GASB 45 valuation, the following changes have been made: The discount rate was changed from 3.71% to 1.84% based on updated measurement dates and GASB 75 requirements. Healthcare trend rates were reset to reflect updated const increase expectations, including In 2018, the following benefit changes occurred: on updated 20-year municipal bond rates as of each measurement date. The discount rate was changed from 3.71% as of 12/31/2018 to 2.75% as of 12/31/2019 based on updated 20-year municipal bond rates as of each measurement date. In 2019, the following benefit changes occurred: an adjustment to reflect the impact of the Affodarble Care Act's Excise Tas on high-cost health insurance plans. Medical per capita claims costs were updated to reflect recent experience and new plan offerings. Withdrawal, retirement, mortality and salary increase rates were updated from the rates used in the 7/1/2018 PERA General and Police & Fire Employees Retirement Plan to the rates used in the 7/1/2019 valuation. The percent of future regular retirees assumed to elect coverage at retirement changed from 50% to 30% to reflect recent plan experience. The inflation assumption remained changed from 2.5% to 2.25% based on an updated historical In 2021, the following benefit changes occurred: The discount rate was changed from 2.75% as of 12/31/2019 to 2.00% as of 12/31/2020 based In 2022, the following benefit changes occurred: The discount rate was changed from 2.00% as of 12/31/2020 to 1.84% as of 12/31/2021 based on updated 20-year municipal bond rates as of each measurement date. on updated 20-year municipal bond rates as of each measurement date. In 2020, the following benefit changes occurred:

analysis of inflation rates and forward looking market expectations.

111