2020 Comprehensive Annual Financial Report

At June 30, 2020, the components of the net OPEB liability of the City, measured as of June 30, 2020, were as follows:

Increase (Decrease)

Total OPEB

Plan Fiduciary Net Position

Net OPEB Liability

Liability

(a)

(b)

(a) - (b)

Balances at June 30, 2019 Changes for the Year: Service Cost

$ 137,588,257

$ 23,133,424

$ 114,454,833

6,602,339 5,105,805

6,602,339 5,105,805

Interest

Differences between expected and actual experience

(650,693)

(650,693) 14,628,043 (7,075,180) (1,124,968)

Changes of assumptions

14,628,043

Contributions

7,075,180 1,124,968 (5,075,180)

Net Investment income

Benefit payments

(5,075,180)

Administrative expense Net changes Balance as of June 30, 2020

20,610,314

3,124,968

17,485,346

$ 158,198,571

$ 26,258,392

$ 131,940,179

Changes of assumptions. Changes of assumptions and other inputs reflect a change in the discount rate from 3.78% in 2019 to 2.75% in 2020. Medical claims cost and rates were changed based on most recent experience and changed to the current schedule. The impact of the Affordable Care Act was addressed in the valuation report and continues to be monitored. For the year ended June 30, 2020, the City recognized OPEB expense of $8,599,681. At June 30, 2020, the City reported deferred inflows of resources related to OPEB from the following sources:

Deferred

Deferred Inflows of Resources

Outflows of Resources

Differences between expected and actual experience

$

$ 21,045,298

Changes of assumptions

17,457,843

2,221,530

Net difference between projected and actual earnings on plan investments

35,349

Total

$ 17,457,843

$ 23,302,177

Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ended June 30: 2021

$ (1,781,861)

2022 2023 2024 2025

(1,781,861) (1,748,582) (1,670,229) (614,061)

Thereafter

1,752,260 $ (5,844,334)

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