2019 Comprehensive Annual Financial Report (CAFR)

Sensitivity of the City’s net OPEB liability to changes in the discount rate The following presents the City’s net OPEB liability calculated using the discount rate of 3.78 percent, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.78 percent) or one percentage point higher (4.78 percent) than the current rate:

1%

Discount

1%

Decrease (2.78%)

Rate

Increase (4.78%)

(3.78%)

Net OPEB Liability

$

128,166,602

$

114,454,833

$ 102,167,658

Sensitivity of the net OPEB liability to changes in healthcare cost trends The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were to calculate healthcare cost trend rates that are 1% point lower or 1% point higher than the current healthcare cost trend rates:

1%

Healthcare Cost

1%

Decrease (6.25%)

Trend Rate

Increase (8.25%)

(7.25%)

$ 98,207,137

$ 114,454,833

$ 133,798,505

Changes in Net OPEB Liability, OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB . At June 30, 2019, the City reported a net OPEB liability of $114,454,833. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2018. The total OPEB liability was then rolled forward to the measurement date of June 30, 2019 utilizing update procedures incorporating the actuarial assumptions.

At June 30, 2019, the components of the net OPEB liability of the City, measured as of June 30, 2019, were as follows:

Increase (Decrease)

Total OPEB

Plan Fiduciary Net Position

Net OPEB Liability

Liability

(a)

(b)

(a) - (b)

Balances at June 30, 2018 Changes for the Year: Service Cost

$ 150,712,342

$

20,553,581

$ 130,158,761

6,837,447 5,963,620

6,837,447 5,963,620

Interest

Differences between expected and actual experience

(28,155,144) 7,004,212

(28,155,144) 7,004,212 (5,974,220) (1,379,843)

Changes of assumptions

Contributions

5,974,220 1,379,843 (4,774,220) 2,579,843 23,133,424

Net Investment income

Benefit payments

(4,774,220)

Administrative expense Net changes Balance as of June 30, 2019

(13,124,085)

(15,703,928) $ 114,454,833

$ 137,588,757

$

37pp