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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 />
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