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FY2021 ACFR
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FY2021 ACFR
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1/19/2022 2:22:09 PM
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1/19/2022 2:20:03 PM
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1/19/2022
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CABARRUS COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2021 Changes in the Total OPEB Liability Total OPEB Liability as of June 30, 202034,499,299$ Changes for the year: Service cost at the end of the year*1,928,135 Interest on TOL and cash flows1,298,511 Difference between expected and actual experience(42,333) Changes of assumptions or other inputs6,940,003 Benefits payments(1,322,051) Net changes8,802,265 Total OPEB Liability as of June 30, 202143,301,564$ * The service cost includes interest for the year. Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rates. The following presents the total OPEB liability of the Plan, calculated using the health care cost trend rates, as well as what the Plan’s total OPEB liability would be if it were calculated using a health care cost trend rate that is 1‐percentage‐point lower or 1‐percentage‐point higher than the current rate. 1% Decrease (6.00% decreasing to 4.00%)Current Cost Trend Rate (7.00% decreasing to 5.00%)1% Increase (8.00% decreasing to 6.00%)Total OPEB liability 39,955,123$ 43,301,564$ 47,795,041$ Health Care Cost Trend Rate Sensitivity Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following exhibits present the TOL of the Plan, calculated using the discount rate of 2.21%, as well as what the Plan’s TOL would be if it were calculated using a discount rate that is 1‐percentage‐point lower or 1‐percentage‐point higher than the current rate: 1% Decrease(1.21%)1% Increase(3.21%)Total OPEB liability 48,400,836$ 43,301,564$ 38,896,585$ Discount Rate SensitivityCurrent Discount Rate (2.21%) 83
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