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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 and HRA reported liabilities of $11,582,672 and
<br /> $68,816, respectively, for their proportionate shares of the GERF's net pension liability.
<br /> The net pension liability was measured as of June 30, 2016, and the total pension
<br /> liability used to calculate the net pension liability was determined by an actuarial
<br /> valuation as of that date. The City and HRA's proportions of the net pension liability
<br /> were based on the their respective contributions received by PERA during the
<br /> measurement period for employer payroll paid dates from July 1, 2015, through
<br /> June 30, 2016, relative to the total employer contributions received from all of PERA's
<br /> participating employers. At June 30, 2016, the City and HRA's combined proportion
<br /> was .1435%, a decrease of .0003% from the June 30, 2015 measurement date. PERA
<br /> considers contributions received from the City and HRA as all City contributions and
<br /> therefore does not assign separate proportions for each.
<br /> For the year ended December 31, 2016, the City and HRA recognized pension
<br /> expense of $1,261,483 and $9,493, respectively, for their proportionate shares of the
<br /> 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 /> Deferred Outflows Deferred Inflows
<br /> Description of Resources of Resources
<br /> Differences Between Expected and
<br /> Actual Economic Experience $ 35,483 $ 954,733
<br /> Changes in Actuarial Assumptions 2,498,754 -
<br /> Net Difference Between Projected and Actual
<br /> Earnings on Pension Plan Investments 1,306,283 -
<br /> Changes in Proportion and Differences Between City
<br /> Contributions and Proportionate Share of Contributions 124,523 536,113
<br /> City Contributions Subsequent to the Measurement Date 371,656 -
<br /> Total $ 4,336,699 $ 1,490,845
<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 /> Pension Expense
<br /> Year Ending December 31, Amount
<br /> 2017 $ 600,963
<br /> 2018 342,040
<br /> 2019 1,112,814
<br /> 2020 418,381
<br /> (60)
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