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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2024
<br />
<br />
<br />NOTE 16 – OTHER POST EMPLOYMENT BENEFITS (Continued)
<br />
<br />C. Changes in Net OPEB Liability
<br />
<br />The changes in the net OPEB liability follows:
<br />
<br />Total OPEB Plan Fiduciary Net OPEB
<br />Liability Net Position Liability/(Asset)
<br />(a) (b) (a) - (b)
<br />Balance at June 30, 2023 Measurement Date 24,461,835$ 19,987,094$ 4,474,741$
<br />Changes Recognized for the Measurement Period:
<br />Service Cost 986,291 - 986,291
<br />Interest on the total OPEB liability 1,118,831 - 1,118,831
<br />Changes in benefit terms - - -
<br />Differences between expected and actual experience (959,814) - (959,814)
<br />Changes of assumptions (1,699,094) - (1,699,094)
<br />Employer contributions - City - 794,455 (794,455)
<br />Employer contributions - Implicit subsidy - 376,000 (376,000)
<br />Net investment income - 1,750,521 (1,750,521)
<br />Benefit payments (794,455) (794,455) -
<br />Implicit rate subsidy fulfilled (376,000) (376,000) -
<br />Administrative expenses - (74,785) 74,785
<br />Net changes (1,724,241) 1,675,736 (3,399,977)
<br />Balance at June 30, 2024 Measurement Date 22,737,594$ 21,662,830$ 1,074,764$
<br />Plan fiduciary net position as percentage of the total OPEB liability 95.27%
<br />
<br />D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend
<br />Rates
<br />
<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 />
<br />Net OPEB Liability/(Asset)
<br />Discount Rate -1% Current Discount Rate Discount Rate +1%
<br />(3.50%) (4.50%) (5.50%)
<br />3,584,182$ 1,074,764$ (1,058,365)$
<br />
<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 7.40% in 2024, trending down to 4.14%
<br />in 2076):
<br />
<br />Net OPEB Liability/(Asset)
<br />1% Decrease Current Healthcare Cost 1% Increase
<br />Trend Rates
<br />(48,271)$ 1,074,764$ 2,397,462$
<br />
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