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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2017 <br />Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage <br />until age 65. 50% of police/fire employees are assumed to retire at age 55, the balance at age 65. 50% <br />of other City employees are assumed to retire at age 62, the balance at age 65. <br />F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT <br />RATE <br />The following 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 a discount rate that is 1% lower (1.85%) or 1% higher <br />(3.85%) than the current discount rate: <br />1% Decrease Discount Rate 1% Increase <br />(1.85%) (2.85%) (3.85%) <br />Total OPEB liability $831,489 $746,540 $671,756 <br />G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE <br />COST TREND RATES <br />The following 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 (7% <br />decreasing to 2%) or 1% higher (9% decreasing to 4%) than the current healthcare cost trend rates: <br />Healthcare Cost <br />1% Decrease Trend Rates 1% Increase <br />(7% decreasing to 2%) (8% decreasing to 3%) (9% decreasing to 4%) <br />Total OPEB liability $661,327 $746,540 $845,440 <br />H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES <br />RELATED TO OPEB <br />For the year ended December 31, 2017, the City recognized $39,532 of OPEB expense. At December <br />31, 2017, the City reported deferred outflows and inflows of resources related to OPEB from the <br />following sources: <br />Differences between expected <br />and actual experience <br />V&A <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />$0 $51,083 <br />