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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2019 <br /> <br /> <br /> <br /> <br />$103,255 reported as deferred outflows of resources related to pensions resulting from City <br />contributions subsequent to the measurement date will be recognized as a reduction of the net <br />pension liability during 2020. Other amounts reported as deferred outflows and inflows of <br />resources related to pensions will be recognized in pension expense as follows: <br /> <br />Year Ended Pension <br />December 31, Expense <br />2020 ($103,476) <br />2021 (208,887) <br />2022 (17,699) <br />2023 3,546 <br />2024 - <br />Thereafter - <br />($326,516) <br /> <br /> <br />2. PEPFF Pension Costs <br /> <br />At December 31, 2019, the City reported a liability of $2,711,539 for its proportionate share of the <br />PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2019 and the <br />total pension liability used to calculate the net pension liability was determined by an actuarial <br />valuation as of that date. The City’s proportionate share of the net pension liability was based on <br />the City’s contributions received by PERA during the measurement period for employer payroll <br />paid dates from July 1, 2018 through June 30, 2019, relative to the total employer contributions <br />received from all of PERA’s participating employers. At June 30, 2019, the City’s proportionate <br />share was 0.2547%, which was a decrease of 0.0121% from its proportion measured as of June 30, <br />2018. The City also recognized $34,384 for the year ended December 31, 2019 as revenue (and an <br />offsetting reduction of net pension liability) for its proportionate share of the State of Minnesota’s <br />on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota <br />to begin contributing $9 million to the PEPFF each year, until the plan is 90% funded or until the <br />State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, <br />whoever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October <br />1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until <br />full funding is reached or July 1, 2048, whichever is earlier. <br /> <br />For the year ended December 31, 2019, the City recognized pension expense of $406,851 for its <br />proportionate share of the PEPFF’s pension expense. <br /> <br />67