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<br /> 98 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 13 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED) <br /> <br />E. Total OPEB Liability (Continued) <br />Changes in the total OPEB liability are as follows: <br /> <br />Balance at December 31, 2023 826,361$ <br />Changes for the year <br />Service cost 53,574 <br />Interest 34,074 <br />Changes of assumptions 14,883 <br />Benefit payments (56,740) <br />Net changes 45,791 <br />Balance at December 31, 2024 872,152$ <br /> <br />The General Fund and Municipal Liquor and Sewer Funds typically liquidate the liability related to <br />OPEB. No assets are accumulated in a trust to pay related benefits. <br /> <br />F. OPEB Liability Sensitivity <br />The following presents the City's total OPEB liability calculated using the discount rate of 3.70% as <br />well as the liability measured using 1% lower and 1% higher than the current discount rate. <br /> <br />1% Decrease in <br />Trend Rate Current <br />1% Increase in <br />Trend Rate <br />2.70%3.70%4.70% <br />933,098$ 872,152$ 815,367$ <br />Total OPEB Liability <br /> <br />The table below presents the total OPEB liability of the City , as well as what the City's total OPEB <br />liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1% <br />higher than the current healthcare cost trend rates. <br /> <br />1% Decrease in <br />Discount Rate Current <br />1% Increase in <br />Discount Rate <br />787,215$ 872,152$ 971,646$ <br />Total OPEB Liability <br />(5.25% Decreasing <br />to 3.0%) <br />(6.25% Decreasing <br />to 4.0%) <br />(7.25% Decreasing <br />to 5.0%) <br /> <br />Page 288 of 637