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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2024 <br /> <br /> <br /> <br /> <br />F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE <br /> <br />The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability <br />would be if it were calculated using a discount rate that is 1% lower (3.28%) or 1% higher (5.28%) than the <br />current discount rate: <br /> <br />1% Decrease Discount Rate 1% Increase <br />3.28%4.28%5.28% <br />Total OPEB liability $924,919 $841,031 $765,986 <br /> <br />G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE <br />COST TREND RATES <br /> <br />The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability <br />would be if it were calculated using healthcare cost trend rates that are 1% lower (5% decreasing to 4%) or <br />1% higher (7% decreasing to 6%) than the current healthcare cost trend rates: <br /> <br />Healthcare Cost <br />1% Decrease Trend Rates 1% Increase <br />(5% decreasing to 4%)(6% decreasing to 5%) (7% decreasing to 6%) <br />Total OPEB liability $728,041 $841,031 $977,302 <br /> <br /> <br />H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED <br />TO OPEB <br /> <br />For the year ended December 31, 2024, the City recognized $73,904 of OPEB expense. At December 31, <br />2024, the City reported deferred outflows and inflows of resources related to OPEB from the following <br />sources: <br /> <br />Deferred Outflows Deferred Inflows <br />of Resources of Resources <br />Differences between expected <br /> and actual experience $214,521 $290,365 <br />Changes in assumptions 83,390 79,214 <br />Total $297,911 $369,579 <br /> <br />Deferred outflows and inflows of resources relate almost exclusively to the public safety function, and <br />therefore, have been allocated entirely to governmental activities. <br /> <br />79 <br />Page 115 of 353