05-22-2024 Council Packet - Laserfiche WebLink

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City of Little Canada, Minnesota Notes to the Financial Statements December 31, 2023 Note 4:Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs City Proportionate Share of the Net Pension Liability 1,096,010$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 30,153 Total 1,126,163$ Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 35,552$ 6,818$ Changes in Actuarial Assumptions 160,554 301,816 Net Difference Between Projected and Actual Investment Earnings - 28,199 Changes in Proportion 49,209 - Contributions Paid to PERA Subsequent to the Measurement Date 65,847 - Total 311,162$ 336,833$ 48,103$ (132,862) 18,427 (25,186) At December 31, 2023, the City reported a liability of $1,096,010 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $30,153. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June 30, 2023 relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0196 percent at the end of the measurement period and 0.0186 percent for the beginning of the period. For the year ended December 31, 2023, the City recognized pension expense of $311,036 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized $136 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees At December 31, 2023, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $65,847 reported as deferred outflows of resources related to pensions resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2024 2025 2026 2027 79