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6.G. - Pa§f Redwood 187 <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br />B. Post Employment Benefits, Continued <br />Discount Rate <br />The discount rate used to measure the total OPEB liability was 6.75 percent. The projection of cash <br />flows used to determine the discount rate assumed that District contributions will be made at rates <br />equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's <br />fiduciary net position was projected to be available to make all projected OPEB payments for current <br />active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on <br />OPEB plan investments was applied to all periods of projected benefit payments to determine the total <br />OPEB liability. <br />Changes in the OPEB Liability <br />The changes in the net OPEB liability for the OPEB Plan are as follows: <br />Sensitivity of the Net OPEB Liability to Changes in the Discount Rate <br />The following presents the net OPEB liability of the City if it were calculated using a discount rate that is <br />one percentage point lower or one percentage point higher than the current rate, for measurement <br />period ended June 30, 2017: <br />Current <br />1% Decrease Discount Rate 1% Increase <br />(5.75%) (6.75%) (7.75%) <br />Net OPEB Liability 68,987,821 57,337,709 47,830,891 <br />75 281 <br />Increase (Decrease) <br />Total Pension <br />Plan Fiduciary <br />Net Pension <br />Liability <br />Net Position <br />Liability/(Asset) <br />Balance at June 30, 2017 <br />(Measurement date 06/30/2016) <br />79,437,089 <br />21,529,949 <br />57,907,140 <br />Changes in the year: <br />Service cost <br />2,431,405 <br />- <br />2,431,405 <br />Interest <br />5,420,908 <br />51420,908 <br />Benefit changes <br />Actual vs. expected experience <br />Assumption changes <br />Contribution -employer <br />6,163,000 <br />(6,163,000) <br />Contribution - employee <br />- <br />Netinvestmentincome <br />2,270,294 <br />(2,270,291) <br />Benefit payments <br />(3,117,523) <br />(3,117,523) <br />- <br />Administrativeexpenses <br />- <br />(11,547) <br />11,547 <br />Net changes <br />4,734,790 <br />5,304,224 <br />(569,431) <br />Balance at June 30, 2018 <br />(Measurement date 06/30/2017) <br />84,171,879 <br />26,834,173 <br />57,337,709 <br />Sensitivity of the Net OPEB Liability to Changes in the Discount Rate <br />The following presents the net OPEB liability of the City if it were calculated using a discount rate that is <br />one percentage point lower or one percentage point higher than the current rate, for measurement <br />period ended June 30, 2017: <br />Current <br />1% Decrease Discount Rate 1% Increase <br />(5.75%) (6.75%) (7.75%) <br />Net OPEB Liability 68,987,821 57,337,709 47,830,891 <br />75 281 <br />