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IV-39CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) D. Changes in the Total OPEB Liability Balance-December 31, 2018 Changes for the Year: Service Cost Interest Differences Between Expected and Actual Experience Contributions -Employer Net Investment Income Benefit Payments Changes in Assumptions Net Changes Balance -December 31, 2019 $ $ Municipal Retiree Health Plan 916,510 $ 44,470 31,024 (87,455) (42,048) (27,862) (81,871) 834,639 $ Utility Retiree Health Plan 100,572 12,750 3,751 (3,832) 104531 117,200 217,772 The following changes in assumptions and plan provisions occurred between the current and prior valuations: City-MRHP • -The discount rate was changed from 3.30% to 3.80%. • The health care trend rates were changed to better anticipate short term and long term medical increases. • The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) to the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). • The retirement and withdrawal tables for Police and Fire Personnel were updated. Utility • URHP • The discount rate was changed from 3.31% to 3.71%. • Mortality, withdrawal and salary scale updated to the rates used in the July 1, 2018 PERA of Minnesota Retirement Plan actuarial valuation to reflect recently-published tables. • Medical per capital claims costs were updated to reflect recent experience. • The assumed retirement age was updated from 60 to 57 to reflect recent experience. • The inflation assumption was changed from 2.75% to 2.50% based on an updated historical analysis of inflation rates and forward-looking market expectations. • Health care trend rates were reset to reflect updated cost increase expectations, including an adjustment to reflect the impact of the Affordable Care Act's Excise Tax on high-cost health insurance plans. CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) E. Sensitivity of Total OPEB Liability The following presents the total OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: One Percent One Percent Decrease Discount Rate Increase (2.80%) (3.80%) (4.80%) City Total Opeb Liability (Asset) $ 895,616 $ 8341639 $ 777882 One Percent One Percent Decrease Discount Rete Increase (2.71%) (3.71%) (4.71%) Utility Total OPEB Liability (Asset) $ 237,862 $ 217,772 $ 199,558 The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates: One Percent Healthcare Cost One Percent Decrease Trend Rates Increase (5.50% (6.50% (7.50% Decreasing Decreasing to Decreasing to4.00%) 5.00%) to6.00%) City Total OPEB Liability (Asset) $ 758,823 $ 834,639 $ 922,753 One Percent Healthcare Cost One Percent Decrease Trend Retes Increase (5.40% (6.40% (7.40% Decreasing Decreasing to Decreasing to3.00%) 4.00%) toS.00%) $ 194,867 $ 217,772 $ 244,554 Utility Total OPEB Liability (Asset) 187