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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 />e.Livermore-Pleasanton Fire Department Retiree Healthcare Plan
<br />As discussed in Note 9g, the City is a member of a Joint Powers Agreement (JPA), along
<br />with the City of Livermore, of the Livermore-Pleasanton Fire Department (LPFD). The
<br />employees of the LPFD are the City of Pleasanton’s employees, however, as agreed to in
<br />the JPA, the City equally shares the Safety Fire Plan affiliated with the LPFD with the
<br />City of Livermore. As there is a special funding arrangement with the City of Livermore,
<br />the City of Pleasanton only records its 50 percent share of the collective net OPEB
<br />liability and related deferred inflows/outflows, which is included in its Net Investment
<br />(Deficit) in LPFD on the Governmental Activities Statement of Net Position, using the
<br />equity method of accounting.
<br />The changes in the net OPEB liability for the Livermore-Pleasanton Fire Department
<br />(LPFD) (City of Pleasanton only) Retiree Healthcare Plan is as follows:
<br />Total OPEB
<br />Liability (a)
<br />Plan Fiduciary
<br />Net Position (b)
<br />Net OPEB
<br />Liability/Asset
<br />(c) = (a) - (b)
<br />Balance at June 30, 2021 19,349,000$ 11,289,000$ 8,060,000$
<br />Changes Recognized for the Measurement Period:
<br />Service Cost 374,000 - 374,000
<br />Interest 1,305,000 - 1,305,000
<br />Difference Between Expected and Actual experience (4,038,500) - (4,038,500)
<br />Changes of Assumptions 136,000 - 136,000
<br />Contributions From the Employer - 1,010,500 (1,010,500)
<br />Net Investment Income - 3,111,000 (3,111,000)
<br />Benefit Payments and Refunds (772,000) (772,000) -
<br />Administrative Expenses - (4,500) 4,500
<br />Net Changes (2,995,500) 3,345,000 (6,340,500)
<br />Balance at June 30, 2022 16,353,500$ 14,634,000$ 1,719,500$
<br />Increase (Decrease)
<br />Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare
<br />Cost Trend Rates
<br />The following presents the City’s portion of the net OPEB liability for the LPFD Retiree
<br />Healthcare Plan, as well as what City's net OPEB liability would be if it were calculated
<br />using a discount rate that is 1-percentage- point lower (5.25%) or 1-percentage-point higher
<br />(7.25%) 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 />3,835,500$ 1,719,500$ (37,000)$
<br />Plan's Net OPEB Liability/Asset
<br />114
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