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CITY OF PLEASANTON
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
<br />Note 12: Post-Employment Health Care Benefits (Continued)
<br />Discount Rate – The discount rate used to measure the total OPEB liability was
<br />6.75 percent. The projection of cash flows used to determine the discount rate assumed
<br />that City contributions will be made at rates equal to the actuarially determined contribution
<br />rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected
<br />to be available to make all projected OPEB payments for current active and inactive
<br />employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan
<br />investments was applied to all periods of projected benefit payments to determine the total
<br />OPEB liability.
<br />d.City of Pleasanton Retiree Healthcare Plan Changes in Net OPEB Liability
<br />The changes in the net OPEB liability for the City of Pleasanton Retiree Healthcare Plan is
<br />as follows:
<br />Total OPEB
<br />Liability (a)
<br />Plan Fiduciary
<br />Net Position
<br />(b)
<br />Net OPEB
<br />Liability/Asset
<br />(c) = (a) - (b)
<br />Balance at June 30, 2021 83,436,000$ 51,208,000$ 32,228,000$
<br />Changes Recognized for the Measurement:
<br />Service Cost 1,453,000 - 1,453,000
<br />Interest 5,589,000 - 5,589,000
<br />Difference Between Expected and Actual (14,053,000) - (14,053,000)
<br />Changes of Assumptions (696,000) - (696,000)
<br />Contributions From the Employer - 4,210,000 (4,210,000)
<br />Net Investment Income - 14,078,000 (14,078,000)
<br />Benefit Payments and Refunds (4,185,000) (4,185,000) -
<br />Administrative Expenses - (19,000) 19,000
<br />Balance at June 30, 2022 71,544,000$ 65,292,000$ 6,252,000$
<br />Increase (Decrease)
<br />Detailed information about the OPEB plan’s fiduciary net position is available in the
<br />separately issued plan financial report that may be obtained from CERBT. The benefit
<br />payments and refunds include implied subsidy benefit payments in the amount of
<br />$3,985,000.
<br />Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare
<br />Cost Trend Rates
<br />The following presents the net OPEB liability of the City for the City of Pleasanton
<br />Retiree Healthcare Plan, as well as what the City's net OPEB liability would be if it
<br />were calculated using a discount rate that is 1-percentage-point lower (5.75%) or
<br />1-percentage-point higher (7.75%) than the current discount rate:
<br />Discount Rate -1%
<br />(5.25%)
<br />Current Discount Rate
<br />(6.25%)
<br />Discount Rate +1%
<br />(7.25%)
<br />15,115,000$ 6,252,000$ 1,121,000$
<br />Plan's Net OPEB Liability/Asset
<br />112
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