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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 20 I 7
<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 ifit were calculated using a discount rate that is 1% lower (1.85%) or 1% higher
<br />(3.85%) than the current discount rate:
<br />Total OPEB liability
<br />1% Decrease
<br />(1.85%)
<br />$831,489
<br />Discount Rate
<br />(2.85%)
<br />$746,540
<br />1% Increase
<br />(3.85%)
<br />$671,756
<br />G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEAL TH CARE
<br />COST TREND RA TES
<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 I% lower (7%
<br />decreasing to 2%) or I% higher (9% decreasing to 4%) than the current healthcare cost trend rates:
<br />Total OPEB liability
<br />1% Decrease
<br />(7% decreasing to 2%)
<br />$661,327
<br />Healthcare Cost
<br />Trend Rates
<br />(8% decreasing to 3%)
<br />$746,540
<br />1% Increase
<br />(9% decreasing to 4%)
<br />$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 />Deferred Outflows Deferred Inflows
<br />of Resources of Resources
<br />Differences between expected
<br />and actua] experience $0 $51,083
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
<br />Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
<br />OPEB expense as follows:
<br />Year Ended OPEB
<br />December 31, Exeense
<br />2018 ($3,923)
<br />2019 (3,923)
<br />2020 (3,923)
<br />2021 (3,923)
<br />2022 (3,923)
<br />Thereafter (31,468)
<br />L$5 l,o83J
<br />Note 11 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
<br />A. DEFICIT FUND BALANCES
<br />The City has deficit fund balances at December 31, 2017 as follows:
<br />Nonmajor Governmental Funds:
<br />G.O. lmprovement Bonds of2016B
<br />Tax Increment Financing 1-11
<br />Tax Increment Financing 1-12
<br />2018 Street Reconstruction
<br />Fund Balance
<br />Deficit
<br />($1,932,462)
<br />(777,999)
<br />{1,044)
<br />(197,668)
<br />The City intends to fund these deficits through future tax levies, special assessment levies, tax
<br />increments, transfers from other funds, and various other sources.
<br />B. EXPENDITURES IN EXCESS OF BUDGET
<br />The following is a listing of departments within the General Fund that exceeded budget appropriations:
<br />Final
<br />Budget Actual ~e
<br />General government:
<br />Engineering/planning $105,706 $111,441 $5,735
<br />Government buildings 603,318 636,089 32,771
<br />Public services:
<br />Parks 639,281 664,740 25,459
<br />Recreation 246,949 248,031 1,082
<br />Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
<br />budgeted expenditures by $26,511. IV-35
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