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CITY OF LAKE ELMO, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2024 61 NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued) At December 31, 2024, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences between expected and actual economic experience 78,853$ -$ Changes in actuarial assumptions 4,188 304,296 Difference between projected and actual investment earnings - 211,857 Changes in proportionate share 117,138 79,200 Contributions paid to PERA subsequent to the measurement date 84,063 - Total Deferred Outflows/Inflows 284,242$ 595,353$ The $84,063 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31, Pension Expense 2025 (208,701)$ 2026 (46,267)$ 2027 (74,387)$ 2028 (65,819)$ Police and Fire Fund Pension Costs At December 31, 2024, the City reported a liability of $585,467 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2024, 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 ate share 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, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0445 percent at the end of the measurement period and 0.0244 percent for the beginning of the period. The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one- time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. Thereafter, by Octo ber 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2 048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the State Pa trol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $22,318.