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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2016 <br /> <br /> <br /> <br /> <br />valuation as of that date. The City’s proportion of the net pension liability was based on the City’s <br />contributions received by PERA during the measurement period for employer payroll paid dates <br />from July 1, 2015 through June 30, 2016, relative to the total employer contributions received from <br />all of PERA’s participating employers. At June 30, 2016, the City’s proportion was 0.259%, which <br />was an increase of 0.010% from its proportion measured as of June 30, 2015. The City also <br />recognized $23,310 for the year ended December 31, 2016 as revenue (and an offsetting reduction <br />of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf <br />contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin <br />contributing $9 million to the PEPFF each year, starting in fiscal year 2014. <br /> <br />For the year ended December 31, 2016, the City recognized pension expense of $1,818,967 for its <br />proportionate share of the PEPFF’s pension expense. <br /> <br />At December 31, 2016, 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 /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected and <br /> actual economic experience $ - $1,192,403 <br />Changes in actuarial assumptions 5,720,339 - <br />Difference between projected and <br /> actual investment earnings 1,586,216 - <br />Changes in proportion 93,543 - <br />Contributions paid to PERA <br /> subsequent to the measurement date 233,671 - <br />Total $7,633,769 $1,192,403 <br /> A total of $233,671 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 during 2017. Other amounts reported as deferred outflows and inflows of <br />resources related to pensions will be recognized in pension expense as outflows: <br /> <br />Year Ended Pension <br />December 31, Expense <br />2017 $1,333,808 <br />2018 1,333,808 <br />2019 1,333,810 <br />2020 1,205,619 <br />2021 1,000,650 <br />Thereafter - <br />The net pension liability will be liquidated by the general, water and sewer funds. <br />67