2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

NOTE 15 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) D. Changes in the Total OPEB Liability

Total OPEB Liability

Balances at December 31, 2022 Changes for the Year:

$

2,179,955

Service cost

41,687 3,690 129,364

Interest Differences between expected and actual experience

Changes in assumptions or other inputs Benefit payments Net Changes

(420,608) (87,485) (333,352) 1,846,603

Balances at December 31, 2023 Since the prior measurement date, the following benefit terms changed: The discount rate was changed from 1.84% as of 12/31/2021 to 4.05% as of 12/31/2022 based on updated 20-year municipal bond rates as of each measurement date. $

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

The discount rate was changed from 1.84% to 4.05% 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 (3.05 percent) or 1 percentage-point higher (5.05 percent) than the current discount rate:

1% Decrease (3.05%)

Current (4.05%)

1% Increase (5.05%)

$

2,022,976

$

1,846,603

$

1,690,000

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 (5.20 percent decreasing to 2.70 percent) or 1-percentage-point higher (7.20 percent decreasing to 4.70 percent) than the current discount rate:

Healthcare Cost Trend Rates (6.2% Decreasing to 3.7%) 1,846,603 $

1% Decrease (5.2% Decreasing to 2.7%)

1% Increase (7.2% Decreasing to 4.7%)

$

1,630,082

$

2,105,934

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