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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2021
<br />IV. Detailed Notes on All Activities and Funds (Continued)
<br />G. Other Post Employment Benefit (OPEB) Obligations (Continued)
<br />2. City of Paris Retiree Health Care Plan (Continued)
<br />Changes in the OPEB Liability
<br />The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 2.00%, as
<br />well as what the City's total Plan OPEB liability (asset) would be if it were calculated using a discount rate that
<br />is I -percentage -point lower (1.00%) or I -percentage -point higher (3,00%) than the current rate:
<br />1% Decrease in
<br />Discount Rate
<br />1.00%
<br />Net OPEB Liability $1,805,546
<br />1% Increase in
<br />Discount Rate Discount Rate
<br />2.00% 3,00%
<br />$1,711,750 $1,620,124
<br />The following presents the Plan's total OPEB liability, calculated using the assumed trend rates as well as what
<br />the Plan's total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one
<br />percent higher:
<br />Current Healthcare
<br />Cost Trend Rate
<br />1% Decrease Assumption 1% Increase
<br />Net OPEB Liability $1,573,968 $1,711,750 $1,864,530
<br />56
<br />Increase
<br />(Decrease)
<br />Total OPEB
<br />Liability
<br />Balance at 12/31/2019
<br />$ 1,620,789
<br />Changes for the year:
<br />Service Cost
<br />45,329
<br />Interest
<br />44,410
<br />Change of Benefit Terms
<br />-
<br />Difference Between Expected and Actual Experience
<br />(10,649)
<br />Changes of Assumptions
<br />68,964
<br />Contributions — Employer
<br />-
<br />Contributions — Employees
<br />Net Investment Income
<br />-
<br />Benefit Payments, Including Refunds of Employee Contributions
<br />(57,093)
<br />Administrative Expense
<br />-
<br />Other Changes
<br />-
<br />Net Changes
<br />90,961
<br />Balance at 12/31/20
<br />$ 1,711,750
<br />The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 2.00%, as
<br />well as what the City's total Plan OPEB liability (asset) would be if it were calculated using a discount rate that
<br />is I -percentage -point lower (1.00%) or I -percentage -point higher (3,00%) than the current rate:
<br />1% Decrease in
<br />Discount Rate
<br />1.00%
<br />Net OPEB Liability $1,805,546
<br />1% Increase in
<br />Discount Rate Discount Rate
<br />2.00% 3,00%
<br />$1,711,750 $1,620,124
<br />The following presents the Plan's total OPEB liability, calculated using the assumed trend rates as well as what
<br />the Plan's total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one
<br />percent higher:
<br />Current Healthcare
<br />Cost Trend Rate
<br />1% Decrease Assumption 1% Increase
<br />Net OPEB Liability $1,573,968 $1,711,750 $1,864,530
<br />56
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