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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2022
<br />NOTE 15 – OTHER POST EMPLOYMENT BENEFITS (Continued)
<br />C. Changes in Net OPEB Liability
<br />The changes in the net OPEB liability follows:
<br />Total OPEB Plan Fiduciary Net OPEB
<br />Liability Net Position Liability/(Asset)
<br />(a)(b)(a) - (b)
<br />Balance at June 30, 2021 Measurement Date 24,559,435$ 21,807,092$ 2,752,343$
<br />Changes Recognized for the Measurement Period:
<br />Service Cost 894,409 - 894,409
<br />Interest on the total OPEB liability 1,302,546 - 1,302,546
<br />Changes in benefit terms - - -
<br />Differences between expected and actual experience (3,116,104) - (3,116,104)
<br />Changes of assumptions 1,324,642 - 1,324,642
<br />Employer contributions - City -1,286,842 (1,286,842)
<br />Employer contributions - Implicit subsidy ---
<br />Net investment income -(2,610,009) 2,610,009
<br />Benefit payments (1,286,842) (1,286,842) -
<br />Implicit rate subsidy fulfilled - - -
<br />Administrative expenses -(42,746) 42,746
<br />Net changes (881,349)(2,652,755)1,771,406
<br />Balance at June 30, 2022 Measurement Date 23,678,086$ 19,154,337$ 4,523,749$
<br />Plan fiduciary net position as percentage of the total OPEB liability 80.89%
<br />D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend
<br />Rates
<br />The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability
<br />would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point
<br />higher than the current discount rate:
<br />Net OPEB Liability/(Asset)
<br />Discount Rate -1% Current Discount Rate Discount Rate +1%
<br />(3.50%) (4.50%) (5.50%)
<br />7,767,624$ 4,523,749$ 1,861,394$
<br />The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability
<br />would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-
<br />percentage-point higher than the current healthcare cost trend rates (5.60% in 2023, trending down to 3.75%
<br />in 2076):
<br />Net OPEB Liability/(Asset)
<br />1% Decrease Current Healthcare Cost 1% Increase
<br />Trend Rates
<br />1,469,930$ 4,523,749$ 8,363,646$
<br />87
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