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Elk River Municipal Utilities <br /> Elk River, Minnesota <br /> Notes to the Financial Statements <br /> December 31, 2018 <br /> Note 5: Postemployment Benefits Other than Pensions <br /> Changes in the Total OPEB Liability <br /> Total OPEB <br /> Liability <br /> (a) <br /> Balances at December 31, 2017 $ 81,453 <br /> Changes for the Year: <br /> Service cost 11,084 <br /> Interest 3,526 <br /> Changes in assumptions or other inputs 4,509 <br /> Net Changes 19,119 <br /> Balances at December 31, 2018 $ 100,572 <br /> Since the prior measurement date, the following assumptions changed: <br /> • The discount rate was changed from 3.81%to 3.31%. <br /> • Withdrawal rates were updated from the Small Plan age-based table in the 2003 SOA Turnover, adjusted by 50% <br /> to the rate used in the 7/1/2017 PERA General Employees Retirement Plan valuation. <br /> • The salary scale assumption was changed from a flat rate of 3.25%to the rates used in the 7/1/2017 PERA General <br /> Employees Retirement Plan valuation. <br /> • Medical per capita claims costs were updated to reflect recent experience. <br /> • Health care trend rates were reset to reflect updated cost increase expectations, including an adjustment to reflect <br /> the impact of the Affordable Care Act's Excise Tax on high-cost health insurance plans. <br /> E. Sensitivity of the Total OPEB Liability <br /> The following presents the total OPEB liability of the Utilities, as well as what the Utilities'total OPEB liability would be if it <br /> were calculated using a discount rate that is 1-percentage point lower(2.31 percent) or 1-percentage-point higher(4.31 <br /> percent)than the current discount rate: <br /> 1 Percent 1 Percent <br /> Decrease(2.31%) Current(3.31%) Increase(4.31%) <br /> $ 110,190 $ 100,572 $ 91,750 <br /> The following presents the total OPEB liability of the Utilities, as well as what the Utilities'total OPEB liability would be if it <br /> were calculated using a Healthcare Cost Trent Rates that is 1-percentage point lower(5.90 percent decreasing to 3.40 <br /> percent)or 1-percentage-point higher(7.90 percent increasing to 5.40 percent)than the current discount rate: <br /> Healthcare Cost <br /> 1 Percent Decrease Trend Rates 1 Percent Increase <br /> (5.9% Decreasing (6.9% Decreasing (7.9% Decreasing <br /> to 3.4%) to 4.4%) to 5.4%) <br /> $ 87,443 $ 100,572 $ 116,283 <br /> 47 <br /> 134 <br />