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CITY OF ELK RIVER
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />YEAR ENDING DECEMBER 31, 2016
<br />NOTE 9 DEFINED BENEFIT PENSION PLANS —STATE-WIDE (CONTINUED)
<br />D. Pension Costs
<br />1. GERF Pension Costs
<br />At December 31, 2016, the City reported a liability of $11,651,488 for its proportionate
<br />share of the GERF's net pension liability. The net pension liability was measured as of
<br />June 30, 2016, and the total pension liability used to calculate the net pension liability
<br />was determined by an actuarial valuation as of that date. The City's proportion of the
<br />net pension liability was based on the City's contributions received by PERA during the
<br />measurement period for employer payroll paid dates from July 1, 2015, through June
<br />30, 2016, relative to the total employer contributions received from all of PERA's
<br />participating employers. At June 30, 2016, the City's proportion was .01435%
<br />For the year ended December 31, 2016, the City recognized pension expense of
<br />$1,270,976 for its proportionate share of the GERF's pension expense.
<br />At December 31, 2016, the City reported its proportionate share of the GERF's
<br />deferred outflows of resources and deferred inflows of resources related to pensions
<br />from the following sources:
<br />A total of $373,868 reported as deferred outflows of resources related to pensions
<br />resulting from City contributions subsequent to the measurement date will be
<br />recognized as a reduction of the net pension liability in the year ending December 31,
<br />2016. Other amounts reported as deferred outflows and inflows of resources related to
<br />pensions will be recognized in pension expense as follows:
<br />Year Ending December 31,
<br />2017
<br />2018
<br />2019
<br />2020
<br />2021
<br />Thereafter
<br />.E
<br />Pension Expense
<br />Amount
<br />$ 603,987
<br />343,492
<br />1,119, 042
<br />420,866
<br />Deferred Outflows
<br />Deferred Inflows
<br />Description
<br />of Resources
<br />of Resources
<br />Differences Between Expected and
<br />Actual Economic Experience
<br />$ 35,686
<br />$ 960,323
<br />Changes in Actuarial Assumptions
<br />2,513,596
<br />-
<br />Net Difference Between Projected and Actual
<br />Earnings on Pension Plan Investments
<br />1,313,966
<br />-
<br />Changes in Proportion and Differences Between City
<br />Contributions and Proportionate Share of Contributions
<br />124,523
<br />540,061
<br />City Contributions Subsequent to the Measurement Date
<br />373,868
<br />-
<br />Total
<br />$ 4,361,639
<br />$ 1,500,384
<br />A total of $373,868 reported as deferred outflows of resources related to pensions
<br />resulting from City contributions subsequent to the measurement date will be
<br />recognized as a reduction of the net pension liability in the year ending December 31,
<br />2016. Other amounts reported as deferred outflows and inflows of resources related to
<br />pensions will be recognized in pension expense as follows:
<br />Year Ending December 31,
<br />2017
<br />2018
<br />2019
<br />2020
<br />2021
<br />Thereafter
<br />.E
<br />Pension Expense
<br />Amount
<br />$ 603,987
<br />343,492
<br />1,119, 042
<br />420,866
<br />
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