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6.C. - Page 109 of 196 <br />CITY OF REDWOOD CITY <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />For the Fiscal Year Ended June 30, 2020 <br />NOTE 9 — EMPLOYEE BENEFITS (CONTINUED) <br />B. Post Employment Benefits, Continued <br />Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates <br />The following presents the net OPEB liability of the City if it were calculated using health care cost trend <br />rates that are one percentage point lower or one percentage point higher than the current rate, for <br />measurement period ended June 30, 2019: <br />1% Decrease Discount Rate 1% Increase <br />(5.75%) (6.75%) (7.75%) <br />Net OPEB Liability $ 61,315,741 $ 49,464,739 $ 39,729,507 <br />Recognition of Deferred Outflows and Deferred Inflows of Resources <br />Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB <br />expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or <br />loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources <br />related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending <br />on the source of the gain or loss: <br />Net difference between projected and actual earnings on <br />OPEB plan investments <br />All other amounts <br />5 Years <br />Expected average remaining service lifetime (EARSL) <br />OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB <br />For the fiscal year ended June 30, 2020, the City recognized OPEB expense of $5,259,447. For the fiscal <br />year ended June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources <br />related to OPEB from the following sources: <br />OPEB contributions subsequent to measurement date <br />Changes of Assumptions <br />Differences between expected and actual experience <br />Net differences between projected and actual earnings on <br />plan investments <br />Total <br />V&J <br />Deferred <br />Deferred Inflows <br />Outflows of <br />of Resources <br />Resources <br />$ 8,091,673 <br />$ - <br />1,157,097 <br />- <br />- <br />(5,238,239) <br />- <br />(469,862) <br />$ 9,248,770 <br />$ (5,708,101) <br />196 <br />