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IV-42CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 14 TAX ABATEMENTS (CONTINUED) In 2019 the City of Elk River had eight business subsidy agreements in place which resulted in property taxes totaling $160,265 being abated. Individual agreements which result in taxes abated in excess of 1% of the City's total tax levy would be disclosed individually. There were no such payments made in 2019 in excess of this amount. NOTE 15 SUBSEQUENT EVENT Subsequent to year-end, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. Specific to the City, COVID-19 may impact various parts of its 2020 operations and financial results including, but not limited to, costs for emergency preparedness, shortages of personnel. Management believes the City is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events occurred subsequent to year-end and are still developing. CITY OF ELK RIVER SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS -MUNICIPAL RETIREES HEALTH PLAN DECEMBER 31, 2019 Total OPEB Liability: SarviceCost Interest Changes in Benefit Terms Changes in Assumptions Differences Between Expected and Actual Experience Benefit Payments Net Change in Total OPEB Liability Total OPEB Liability -Beginning Total OPEB Liablllty -Ending Total OPEB Liability Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability Covered Employee Payroll City's Total OPEB Liability as a Percentage of the Covered Employee Payroll $ $ $ $ 201_9 __ 44,470 $ 31,024 (27,862) (87,455) (42,048) (81.871) 916,510 834,639 $ 834,639 $ 0.00% 9,076,855 $ 9.20% 2018 58,939 30,051 (47,958) 41,032 875,478 916,510 916,510 0.00% 8,658,239 10.59% Nata: The City implemented GASB Statement No. 75 in fiscal year 2018. The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten-year trend. Addltional years will be reported as they become available. Valuation Date: Measurement Date· January 1, 2019 January 1, 2019 Methods and Assumptions Used to Determine the Contibution Rates: Actuarial Cost Method Entry Age Amortization Method Level Percentage of Payroll, Closed Amortization Period Average of expected remaining service on a closed basis for differences between expected and actual Inflation: Healthcare cost trend rate Salary increases Discount rate Mortality experience and assumption changes. 2.50% 6.50% as of January 1, 2019 grading to 5.00% over 6 years. 3.00% 3.80% RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) • No assets were placed in a trust for the payment of OPEB. 190