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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31,2015
<br />Note 6 PENSION PLANS (CONTINUED>
<br />A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
<br />PLANS (CONTINUED)
<br />PENSION COSTS (CONTINUED)
<br />1. GERF Pension Costs (Continued)
<br />At December 31, 2015, the City reported its proportionate share of the GERF's deferred outflows
<br />of resources and deferred inflows of resources related to pensions from the following sources:
<br />Deferred Outflows Deferred Inflows of
<br />DescriE!!on of Resources Resources
<br />Differences Between Expected and Actual Economic
<br />Experience $ $ 107,128
<br />Changes in Actuarial Assumptions
<br />Net Difference Between Projected and Actual Earnings
<br />on Pension Plan Investments 201,148
<br />Changes in Proportion and Differences Between
<br />District Contributions and Proportionate Share of
<br />Contributions 77,509
<br />City Contributions Subsequent to the Measurement
<br />Date
<br />Total
<br />89,631
<br />$ 290,779 $ 184,637
<br />A total of $89,631 reported as deferred outflows of resources related to pensions resulting from
<br />City contributions subsequent to the measurement date will be recognized as a reduction of the net
<br />pension liability in the year ended December 31, 2016. Other amounts reported as deferred
<br />outflows and inflows of resources related to pensions will be recognized in pension expense as
<br />follows:
<br />Year Ended June 30
<br />2016
<br />2017
<br />2018
<br />2019
<br />2020
<br />Thereafter
<br />Pension Expenses
<br />Amount
<br />$ {11,258)
<br />{11,258)
<br />(11,258)
<br />50,285
<br />2. PEPFF Pension Costs
<br />At December 31,2015, the City reported a liability of$2,829,223 for its proportionate share of the
<br />PEPFF's net pension liability. The net pension liability was measured as of June 30, 2015, and
<br />the total pension liability used to calculate the net pension liability was determined by an actuarial
<br />valuation as of that date. The City's proportion of the net pension liability was based on the
<br />City's contributions received by PERA during the measurement period for employer payroll paid
<br />dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions
<br />received from all ofPERA's participating employers. At June 30, 2015, the City's proportion was
<br />.249"/o which was the same as the City's proportion measured as ofJune 30, 2014.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31,2015
<br />Note 6 PENSION PLANS <CONTINUED>
<br />A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
<br />PLANS (CONTINUED)
<br />PENSION COSTS (CONTINUED)
<br />2. PEPFF Pension Costs (Continued)
<br />For the year ended December 31, 2015, the City recognized pension expense of $487,542 for its
<br />proportionate share of the PEPFF's pension expense. The City also recognized $22,410 for the
<br />year ended December 31,2015, as pension expense (and grant revenue) for its proportionate share
<br />of the State of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013
<br />required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting
<br />in fiscal year 2014.
<br />At December 31,2015, the City reported its proportionate share of the PEPFF's deferred outflows
<br />of resources and deferred inflows of resources related to pensions from the following sources:
<br />Description
<br />Differences Between Expected and Actual
<br />Economic Experience
<br />Changes in Actuarial Assumptions
<br />Net Difference Between Projected and Actual
<br />Investment Earnings
<br />Changes in Proportion and Differences Between
<br />District Contributions and Proportionate Share of
<br />Contributions
<br />City Contributions Subsequent to the Measurement
<br />Date
<br />Total
<br />Deferred Outflows
<br />of Resources
<br />$
<br />492,945
<br />213,017
<br />$ 705,962
<br />Deferred Inflows of
<br />Resources
<br />$ 458,807
<br />$ 458,807
<br />A total of$213,017 reported as deferred outflows of resources related to pensions resulting from
<br />City contributions subsequent to the measurement date will be recognized as a reduction of the net
<br />pension liability in the year ended December 31, 2016. Other amounts reported as deferred
<br />outflows and inflows of resources related to pensions will be recognized in pension expense as
<br />fullows:
<br />Year Ended June 30
<br />2016
<br />2017
<br />2018
<br />2019
<br />2020
<br />Thereafter
<br />Pension Expenses
<br />Amount
<br />$ 31,475
<br />31,475
<br />31,475
<br />31,475
<br />(91,762) IV-28
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