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CITY OF LAKE ELMO, MINNESOTA <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2024 <br /> <br /> <br />62 <br />NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued) <br /> <br />City’s proportionate share of the net pension liability: $585,467 <br /> <br />State of Minnesota’s proportionate share of the net pension <br /> liability associated with the City 22,318 <br /> <br />Total $607,785 <br /> <br />For the year ended December 31, 2024, the City recognized pension expense of $130,319 for its proportionate share of the <br />Police and Fire Plan’s pension expense. The City recognized $2,496 as grant revenue and pension expense for its proportionate <br />share of the State of Minnesota’s pension expense for the contribution of $9 million to the Police and Fire Fund special funding <br />situation. <br /> <br />The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension <br />allocation schedules for the $28.4 million in supplemental state aid because this contribution was not considered to meet the <br />definition of a special funding situation. The City recognized $12,638 for the year ended December 31, 2024 as revenue and <br />an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on -behalf contributions to <br />the Police and Fire Fund. <br /> <br />At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources <br />and deferred inflows of resources related to pensions from the following sources: <br /> <br />Deferred Outflows of Deferred Inflows of <br />Resources Resources <br />Differences between expected <br />and actual economic experience 152,905$ -$ <br />Changes in actuarial assumptions 328,931 472,367 <br />Difference between projected <br /> and actual investment earnings - 156,628 <br />Changes in proportionate share 324,395 40,839 <br />Contributions paid to PERA subsequent <br /> to the measurement date 62,938 - <br />Total Deferred Outflows/Inflows 869,169$ 669,834$ <br /> <br />The $62,938 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the <br />measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other <br />amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as <br />follows: <br /> <br />Year ended <br />December 31, Pension Expense <br />2025 43,493$ <br />2026 113,498$ <br />2027 251$ <br />2028 (92,192)$ <br />2029 71,347$ <br />