6.2. SR 06-19-2017 - Laserfiche WebLink

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CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDING DECEMBER 31, 2016 NOTE 9 DEFINED BENEFIT PENSION PLANS —STATE-WIDE (CONTINUED) D. Pension Costs (Continued) 2. PEPFF Pension Costs (Continued) For the year ended December 31, 2016, the City recognized pension expense of $1,900,792 for its proportionate share of the PEPFF's pension expense. The City also recognized $27,540 for the year ended December 31, 2016, as pension expense (and grant revenue) for its proportionate share of the state of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013 required the state of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. At December 31, 2016, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows Description of Resources of Resources Differences Between Expected and Actual Economic Experience $ 2,774 $ 1,408,785 Changes in Actuarial Assumptions 7,254,028 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 1,058,679 - Changes in Proportion and Differences Between City Contributions and Proportionate Share of Contributions 66,467 - City Contributions Subsequent to the Measurement Date 284,459 Total $ 8,666,407 $ 1,408,785 A total of $284,459 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Endinq December 31, Amount 2017 $ 1,327,727- 2018 1,327,720 2019 1,735,411 2020 1,417,827 2021 1,164,485 Thereafter - For year ended December 31, 2016, the City and HRA recognized total pension expenses of $3,162,275 and $9,493, respectively, for their proportionate shares of the pension expense for all of the plans in which they participate. (62)