Page 115 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate. The following presents the net OPEB liability of the City,
calculated using the discount rate of 7.25%, as well as what the City’s net OPEB liability would be if it were calculated using a
discount rate that is 1.00% lower or 1.00% higher than the current rate:

Discount Rate

1% Current 1%
Decrease Discount Rate Increase
6.25% 7.25% 8.25%
Total OPEB liability $ 91,765,583 $ 83,859,116 $ 77,005,633
Plan net position (68,246,293) (68,246,293) (68,246,293)
Net OPEB liability $ 23,519,290 $ 15,612,823 $ 8,759,340
Ratio of plan net position to total OPEB liability 74% 81% 88%
Sensitivity of the Net OPEB Liability to Changes in the Trend Rate. The following presents the net OPEB liability of the City, calculated
using the healthcare trend rate of 6.50% to an ultimate rate of 4.50%, as well as what each plan’s net OPEB liability would be if it
were calculated using trend rates for each year that are 1.00% lower or 1.00% higher than the current rate:

Trend Rate
Current
1% Ultimate Trend 1%
Decrease Rate Increase
3.50% 4.50% 5.50%
Total OPEB liability $ 75,933,823 $ 83,859,116 $ 92,997,709
Plan net position (68,246,293) (68,246,293) (68,246,293)
Net OPEB liability $ 7,687,530 $ 15,612,823 $ 24,751,416
Ratio of plan net position to total OPEB liability 89% 81% 73%

OPEB Expense, and Deferred Out ows of Resources and Deferred In ows of Resources Related to OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $2,551,931. At June 30, 2018, the City reported deferred
out ows of resources and deferred in ows of resources related to OPEB from the following sources:

Deferred Deferred
Out ows of In ows of
Resources Resources
Di erences between expected and actual experience $ - $ 1,671,695
Changes of assumptions - 2,329,523
Net di erence between projected and actual earnings on OPEB plan investments - 1,166,290
Total $ - $ 5,167,508

Other amounts reported as deferred in ows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30
2019 $ 1,291,878
2020 1,291,878
2021 1,291,878
2022 1,291,874
2023 -
Thereafter -

W I N S T O N S AL E M , N O R T H C AR O L I N A 109