06-04-2018 Council Work Session Packet

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 associated with the City totaled $33,230. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2017, the City’s proportionate share was 0.0414%, which was an increase of 0.0027% from its proportionate share measured as of June 30, 2016. For the year ended December 31, 2017, the City recognized pension expense of $380,051 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $960 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the GERF. At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $87,104 $171,203 Changes in actuarial assumptions 438,787 264,956 Difference between projected and actual investment earnings 19,277 - Changes in proportion 118,300 86,926 Contributions paid to PERA subsequent to the measurement date 95,266 - Total $758,734 $523,085 $95,266 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31, Expense 2018 $100,060 2019 163,129 2020 (10,618) 2021 (112,188) 2022 - Thereafter - 2. PEPFF Pension Costs At December 31, 2017, the City reported a liability of $3,469,806 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2017 and the total pension liability used to calculate the net pension liability was determined by an actuarial 66